HomeMy WebLinkAboutSummary FormAGENDA ITEM SUMMARY FORM
FILE ID: AA -
Date: 06/19/2012 Requesting Department: Office of the City Manager
Commission Meeting Date: 06/28/2012 District Impacted: Citywide
Type: ® Resolution ❑ Ordinance ❑ Emergency Ordinance ❑ Discussion Item
Law Department
Matter ID No.
Subject: Resolution approving the amended lease terms between the City of Miami and Parrot Jungle & Gardens
of Watson Island, Inc., and providing for certain obligations of Parrot Jungle & Gardens of Watson Island, LLC
and Theme Park Entertainment, LLC.
Purpose of Item:
A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH ATTACHMENT(S), APPROVING
THE MEMORANDUM OF KEY LEASE AMENDMENT TERMS AND CONDITIONS PRECEDENT
(TERM SHEET), ATTACHED AND INCORPORATED, BETWEEN THE CITY OF MIAM[ , MIAMI-
DADE COUNTY AND PARROT JUNGLE AND GARDENS OF WATSON ISLAND, INC.,
RESTRUCTURING CERTAIN DEBT OBLIGATION AND MODIFYING THE LEASE AND
DEVELOPMENT AGREEMENT DATED SEPTEMBER 2, 1997; FURTHER PROVIDING FOR
CERTAIN OBLIGATIONS OF PARROT JUNGLE AND GARDENS OF WATSON ISLAND, LLC
AND THEME PARK ENTERTAINMENT, LLC.
Background Information:
Please See Attached Background Information.
Budget Impact Analysis
lcs Is this item related to revenue?
i Is this item an expenditure? If so, please identify funding source below.
General Account No:
Special Revenue Account No:
CIP Project No:
1)O Is this item funded by Homeland Defense/Neighborhood Improvement Bonds?
Start Up Capital Cost:
Maintenance Cost:
Total Fiscal Impact:
Final Approvals
(SIGN AND DATE)
CIP N/A Budget
If using or rece vin�;capital funds
Grants N/A Risk Management
Purchasing • N/A Dept. Director
Chief — City Manager
Page 1 of 1
AGENDA ITEM SUMMARY FORM CONTINUED
Background Information:
The Administration and the City Attorney's Office have been engaged in discussions with
representatives of Jungle Island regarding their proposed terms for an expansion of
Jungle Island's lease footprint, extension of their lease term, payment of the outstanding
HUD loan, and restructuring of their debt. However, the parties have failed to reach
mutually agreeable terms.
By cover letter dated June 8, 2012, Jungle Island transmitted a Term Sheet outlining
their proposed terms for your consideration that includes adding 13.45 acres of property
to their lease boundary and extending the lease term to 99 years. As part of their
proposal, the City/County would bear responsibility for HUD payments (the August 2012
payment is $2,031,747) until such time that a public referendum approves their proposed
lease amendment and the State approves a deed restriction waiver. If the referendum
were successful and the deed restriction waiver approved, Jungle Island would pay off
the outstanding Property Tax Loan and HUD loan balance (totaling approximately $15.8
million) including payments made by the City/County after approval of the term sheet.
Jungle Island's debt obligations to the City and County as a result of past deferred HUD,
rent, and other payments (approximately $16.5 million and $11.3 million, respectively)
would-be exchanged for a profit participation in Jungle Island with buy-out provisions.
The Administration does not recommend adoption of Jungle Island's proposal. Should
the City Commission wish to entertain the proposal, there are numerous financial and
legal issues that would need to be addressed in order to protect the City's interests.
Attached please find an alternate Term Sheet which includes the following principal
conditions:
• Jungle Island would make the scheduled HUD payments including the
$2,031,747 payment due on August 1, 2012 (in lieu of depositing a portion of the
payment in escrow and reclaiming it if the referendum fails or deed waiver is
denied as proposed in Jungle Island's term sheet).
• Jungle Island's debt obligations to the City and County as a result of past
deferred HUD, rent, and other payments (approximately $16.5 million and $11.3
million, respectively) would be exchanged for a permanent gross
revenue/receipts participation in Jungle Island (in lieu of the profit participation
proposed in Jungle Island's term sheet).
We feel the above -noted conditions are essential if the City is to consider Jungle Island's
plan for redevelopment, expansion, and restructuring of debt.