HomeMy WebLinkAboutCover MemoTO:
The Honorable Mayor and
Members of the City Commission
FROM: Timothy . Schmand
Executive Director
RECOMMENDATION
DATE: June 12, 2007
SUBJECT: A Resolution
of the Miami City
Commission, with
attachments, authorizing the
Bayfront Park Management
Trust (Trust) to execute
Agreements between the
Trust and Miami Star Casino,
LLC, a Florida limited
liability company, d/b/a
Horizon's Edge Casino
Cruises for the Extension of
Term and Amendment of the
Use Agreement, the Valet
Parking Concession
Agreement, and the
Revocable License
Agreement for the
Warehouse.
It is respectfully recommended that the City Commission adopt the attached Resolution
authorizing the Bayfront Park Management Trust (Trust) to execute the Agreements between the
Trust and Miami Star Casino, LLC, a Florida limited liability company, d/b/a Horizon's Edge
Casino Cruises (Horizon) entitled: 1. Extension of Term and Amendment of Use Agreement
2. Extension of Term and Amendment of Valet Parking Concession Agreement and 3. Extension
of Term of Revocable License Agreement (Warehouse).
BACKGROUND
The Bayfront Park Management Trust (Trust) manages Bayfront and Bicentennial Parks. One of
the Trust's objectives is to continue generating funds through the use of the north end dock at
Bayfront Park. To that end, a use agreement was entered into on June 25, 1997, between the
Trust and Horizon, as successor in interest to Bayfront Ventures, as amended by (i) Amendment
to Use Agreement, dated September 26, 1997, (ii) Amendment No. 2, dated 2001 and approved
by Resolution No. 01-879, adopted by the City of Miami Commission on September 13, 2001,
(iii) Transfer, Assumption and Consent to Transfer of Use Agreement, dated March 28, 2000,
(iv) Third Amendment dated June 27, 2002, and (v) Amendment, Assignment and Assumption
of Use Agreement dated as of December 16, 2005 (collectively the "Use Agreement").
Pursuant to the terms of the Agreement assumed by Horizon, which expires on September 30,
2007, Horizon wishes to exercise its option to extend the term for an additional period of five (5)
years on the condition that Fee payable under the Use Agreement be reduced and the outstanding
amount due for dock repairs be also reduced as herein provided. Horizon claims and the Trust.
concurs that the reduction in fees are fair based on the adverse impact that the new pari-mutuels
facilities have had on Horizon's businesses.
Additionally, the 2005 Amendment contains a scrivener's error in that it states that the
Agreement shall expire no later than June 25, 2012, when the correct date is September 30, 2012,
which is the expiration date of the last option term authorized in the Use Agreement.
Also, Horizon wishes to execute the Extension of Term and Amendment of the Valet Parking
Concession Agreement ("Valet Agreement"), to run commensurate with the Use Agreement (ending
September 30, 2012). The Valet Agreement is amended to include: 1. Horizon agrees to relinquish
rights to the parking facility known as Parcel A, while retaining rights to maintain and access its
dumpster; 2. In consideration of the return of Parcel A the Trust agrees to reduce the annual
concession fee by $30,000; 3. In the event that either party terminates the Use Agreement, the Valet
Agreement also concurrently terminates. Furthermore, if Horizon is the terminating party then it
shall continue to pay the Valet Agreement up to the effective date of termination; and, 4. Horizon's
Security Deposit under the Use Agreement also secures Horizon's performance under the Valet
Agreement.
Finally, Horizon wishes to execute the Extension of Term of Revocable License Agreement
("Warehouse Agreement"), to run commensurate with the Use Agreement (ending September 30,
2012).
The Trust deems it to be in the best interest of the public to retain Horizon's operations in Bayfront
Park and the parties agree to extend all three agreements.
TFS/jrg