HomeMy WebLinkAboutR-08-0601City of Miami
Legislation
Resolution: R-08-0601
City Hall
3500 Pan American
Drive
Miami, FL 33133
www.miamigov.com
File Number: 08-01100a Final Action Date: 10/16/2008
A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH ATTACHMENT(S),
RESCINDING RESOLUTION NO. 08-0542, ADOPTED SEPTEMBER 25, 2008, IN
ITS ENTIRETY AND REPLACING IT WITH THIS RESOLUTION; 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 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 OR RESTATE THE HYATT LEASE TO EXPAND THE HYATT LEASE
AREA TO INCLUDE THE AREAS CURRENTLY UTILIZED BY THE CITY AND THE
UNIVERSITY OF MIAMI, ON OR BEFORE JUNE 30, 2009, THE COST OF PHASE I
SHALL BE SPLIT BETWEEN THE CITY AND HYATT, EACH PAYING FIFTY
PERCENT (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 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 the engineering and design services ("Phase I") to be
no greater than $200,000, and therefore the City's reimbursement to Hyatt will be no greater than fifty
percent (50%) of actual cost, not to exceed $100,000; and
WHEREAS, on September 25, 2008, the City Commission approved Resolution No. 08-0542,
City of Miami
Page 1 of 3 File Id: 08-01100a (Version: 1) Printed On: 5/16/2017
File Number: 08-01100a Enactment Number: R-08-0601
which authorized the City Manager to execute a letter agreement to provide authorization for Hyatt to
proceed with Phase I of the replacement of three centrifugal chills, which agreement further provided
that the City would not have to reimburse Hyatt in the event we executed an amendment to the Hyatt
Lease, a restatement of the Lease or a management agreement to provide for the management
and/or expansion of the Hyatt lease area to include areas currently operated by the City and the
University of Miami on or before June 30, 2009, to be effective January 1, 2010; and
WHEREAS, subsequent to the adoption of Resolution No. 08-0542, Hyatt indicated they could not
accept full financial responsibility for this work in the event a management agreement is the
instrument used as opposed to an amendment or restatement of its Lease since management
agreements do not provide the same level of rights as a lease, including the ability to obtain
financing; and
WHEREAS, Hyatt has requested the City amend the Letter Agreement to remove the language
related to a management agreement;
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. Resolution No. 08-0542, adopted September 25, 2008, which authorized the City
Manager to execute a letter agreement with Hyatt, is rescinded in its entirety.
Section 3. 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 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 or restate the Lease, in
accordance with all applicable laws and ordinances, to provide for the 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 fifty percent (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 4. This Resolution shall become effective immediately upon its adoption and signature of
the Mayor.{2}
Footnotes:
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File Number: 08-01100a Enactment Number: R-08-0601
{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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