HomeMy WebLinkAboutLegislationCity of Miami
Legislation
Resolution
City Hall
3500 Pan American
Drive
Miami, FL 33133
www.miamigov.com
File Number: 08-01100 Final Action Date:
A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH ATTACHMENT(S),
AUTHORIZING THE CITY MANAGER TO EXECUTE A LETTER AGREEMENT, IN
SUBSTANTIALLY THE ATTACHED FORM, WITH HYATT EQUITIES, LLC
("HYATT"), TO PROVIDE AUTHORIZATION FOR HYATT TO PROCEED WITH
THE ENGINEERING AND DESIGN ("PHASE I") OF THE REPLACEMENT OF
THREE CENTRIFUGAL CHILLS, A COOLING TOWER AND ASSOCIATED
EQUIPMENT AT THE MIAMI CONVENTION CENTER ("CENTER") LOCATED AT
400 SOUTHEAST 2 AVENUE, MIAMI, FLORIDA; SAID AGREEMENT FURTHER
PROVIDES THAT IN THE EVENT THE CITY OF MIAMI ("CITY") AND HYATT DO
NOT EXECUTE AN AMENDMENT TO THE HYATT LEASE TO EXPAND THE
HYATT LEASE AREA TO INCLUDE THE AREAS CURRENTLY UTILIZED BY THE
CITY AND THE UNIVERSITY OF MIAMI, OR ENTER INTO A MANAGEMENT
AGREEMENT, ON OR BEFORE JUNE 30, 2009, THE COST OF PHASE I SHALL
BE SPLIT BETWEEN THE CITY AND HYATT, EACH PAYING 50% OF THE COST,
PROVIDED THAT THE CITY'S CONTRIBUTION FOR REIMBURSEMENT WILL
NOT EXCEED $100,000; ALLOCATING FUNDS FROM THE 2009 RENTAL
REVENUES TO BE PAID BY HYATT TO THE CITY; WITH TERMS AND
CONDITIONS AS MORE PARTICULARLY SET FORTH IN SAID LETTER
AGREEMENT.
WHEREAS, the City of Miami ("City") and Miami Center Associates entered into an Operations and
Maintenance Agreement ("O&M Agreement") dated December 12, 1984 by and between the City and
Miami Center Associates, Ltd., predecessor -in -interest to Hyatt Equities, LLC ("Hyatt"); and
WHEREAS, the O&M Agreement sets forth the operation and maintenance obligations of the City
and Hyatt as to their primary areas of responsibility as set forth therein, and as required under the
lease between the City and Hyatt, dated September 13, 1979, as amended (the "Lease"); and
WHEREAS, pursuant to sections 7.3 and 7.4 of the Lease, the City is obligated to provide a
working chiller and related equipment for the Miami Hyatt Regency and the Miami Convention Center
("Center") to remain operational; and
WHEREAS, the three centrifugal chillers, cooling tower, and related equipment are currently 26
years old and have likely reached their useful life expectancy; and
WHEREAS; Hyatt has estimated the cost of Phase I engineering and design services to be no
greater than $200,000 and therefore the City's reimbursement to Hyatt will be no greater than 50% of
actual cost, not to exceed $100,000; and
WHEREAS, in the event the City and Hyatt execute an amendment, restate the Lease, or enter
into a management agreement, in accordance with all applicable laws and ordinances, to provide the
City of Miami Page 1 of 2 Printed On: 9/16/2008
File Number: 08-01100
management and/or expansion of the Hyatt's lease area to include the area currently operated by the
City and University of Miami on or before June 30, 2009, to be effective January 1, 2010, Hyatt shall
pay for one hundred percent (100%) of the Phase I project;
NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI,
FLORIDA:
Section 1. The recitals and findings contained in the Preamble to this Resolution are adopted by
reference and incorporated as if fully set forth in this Section.
Section 2. The City Manager is authorized{1} to execute a letter agreement, in substantially the
attached form, with Hyatt, to provide authorization for Hyatt to proceed with the engineering and
design ("Phase I") of the replacement of three centrifugal chills, a cooling tower and associated
equipment at the Center located at 400 Southeast 2 Avenue, Miami, Florida, with said agreement
further providing that in the event the City and Hyatt do not execute an amendment to the Hyatt Lease,
restate the Lease or enter into a management agreement, in accordance with all applicable laws and
ordinances, to provide for the management and/or expansion of the Hyatt lease area to include the
areas currently operated by the City and the University of Miami on or before June 30, 2009, to be
effective January 1, 2010, the cost of Phase I shall be split between the City and Hyatt, each paying
50% of the cost, provided that the City's contribution for reimbursement will not exceed $100,000, with
funds allocated from the 2009 rental revenues to be paid by Hyatt to the City and with terms and
conditions as more particularly set forth in said letter agreement.
Section 3. This Resolution shall become effective immediately upon its adoption and signature of
the Mayor.{2}
APPROVED AS TO FORM AND CORRECTNESS:
JULIE O. BRU
CITY ATTORNEY \\ T
Footnotes:
{1} The herein authorization is further subject to compliance with all requirements that may be
imposed by the City Attorney, including, but not limited to, those prescribed by applicable City Charter
and Code provisions.
{2} This Resolution shall become effective as specified herein unless vetoed by the Mayor within ten
days from the date it was passed and adopted. If the Mayor vetoes this Ordinance, it shall become
effective immediately upon override of the veto by the City Commission or upon the effective date
stated herein, whichever is later.
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