HomeMy WebLinkAboutSummary Formfi
AGENDA ITEM SUMMARY FORM
FILE ID: Q 7-0Q Z
Date: 6/25/07 Requesting Department: Public Facilities
Commission Meeting Date: 7/10/07 District Impacted: 2
Type: ® Resolution ❑ Ordinance ❑ Emergency Ordinance ❑ Discussion Item
❑ Other
Subject: Authorizing Execution of Amendment to Agreement with Staubach Company, Northeast, Inc.
in connection with potential disposition of James L. Knight Center Complex
Purpose of Item:
The administration recommends the City Commission adopt the attached Resolution authorizing the
City Manager to amend the Agreement with Staubach to provide a scope and compensation related to
the redevelopment of the James L. Knight Center complex South Side assets on substantially the
terms described in Exhibit "A' hereto; providing for a flat fee in the amount of $250,000 to Staubach
in connection with any negotiations for a new or amended lease with Hyatt; providing for a cap of
$100,000 on any fee to be paid to Staubach in connection with any acquisition of the University of
Miami's leasehold interest; further establishing the commission related to a new lease for any
redevelopment of the property at a rate of 1.5% of the first $15 million of land value used to calculate
the ground lease payments and 3% of Iand value in excess of $15 million; said fees to be paid only
upon consummation of the respective transaction; with funds in the amount of $250,000 allocated
under B#70500 and with terms and conditions as more particularly described in Exhibit "A".
Background Information:
See attached.
Budget Impact Analysis
NO Is this item related to revenue?
YES Is this item an expenditure? If so, please identify funding source below.
General Account No:
Special Revenue Account No:
CIP Project No:
NO Is this item funded by Homeland Defense/Neighborhood Improvement Bonds?
Start Up Capital Cost:
Maintenance Cost:
Total Fiscal Impact;
Aer'tiOVAL:
CIP
If using or recei
Grants
Purchasin
Chief
B# 70500
Final Approvals
(SIGN AND DAT
Budge `
Risk Management
Dept. Director/
6121 lo
(7X7
City Manager
Paae 1 of 2
Subject: Authorizing Execution of Amendment to Agreement with Staubach Company, Northeast, Inc.
in connection with potential disposition of James L. Knight Center Complex
Background Information:
On September 12, 2006, following a competitive process, the City Commission authorized execution
of an agreement with the Staubach Company, Northeast, Inc. ("Staubach) to provide real estate and
financial advisory services in connection with the possible disposition of the James L. Knight Center
complex (the "Property"). Staubach completed the analysis portion of phase I of its scope of work
and developed five scenarios upon which the City can proceed, which scenarios were presented to the
City Commission.
Staubach determined that the City could maximize value and redevelopment opportunities for the
Property by dividing the property into the "North Side" assets (north of 1-95 ramp) and "South Side"
assets (south of I-95 ramp). Following consideration of Staubach's recommendations, on May I0,
2007 the City Commission authorized the preparation of an Invitation For Bid (IFB) for the sale of the
North Side assets and the exploration of the scenarios that contemplate the redevelopment of the
assets and/or amending or entering into a new lease with the Hyatt.
In commencement of this exploration, the City met with representatives of the Hyatt corporation on
June 19, 2007. As a result, the Hyatt has agreed to hire, at its sole cost, an architect to develop
scenarios related to improvements to the existing facility in lieu of a total redevelopment of the site.
Preliminarily, reconfiguration of the existing site may be the action that is financially in everyone's
best interest.
Pau 2 of 2