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HomeMy WebLinkAboutAgenda Item Summary FormPurpose of Item: A Resolution of the Miami City Commission directing the City Attorney to prepare an amendment to the Charter of the City Of Miami, Florida ("Charter") for consideration at the Special Election to be held concurrently with the General Municipal Election scheduled for November 7, 2017, proposing, upon approval of the Electorate, to amend Section 29-B of the Charter entitled "City -owned Property Sale or Lease -Generally", to authorize the City Commission by a Four -Fifths (4/5ths) affirmative vote, to waive competitive bidding and to execute an Amended And Restated Lease with Hyatt Equities, LLC to extend the current lease term and incorporate the James L. Knight Convention Center land. Background of Item: The City of Miami ("City") is the owner of the James L. Knight Convention Center located at 400 S.E. 2nd Avenue, Miami, Florida 33131 ("Convention Center"). The City is also the owner and landlord of the land upon which the hotel structure known as the Hyatt Regency Miami ("Hotel") is located and leased by Hyatt Equities, LLC ("Hyatt"). Per the Lease Agreement originally dated September 13, 1979, as supplemented and amended ("Lease"), Hyatt currently leases the Hotel. The City and Hyatt desire to enter into an amended and restated lease ("New Lease"), which will extend the lease term to a total of 99 years, expand the leased premises to include the land upon which the Convention Center is located, amend the parking agreement, and require Hyatt to redevelop the site according to the terms specified in the attached non -binding Memorandum of Understanding ("MOU"). Section 2-112 of the Code of the City of Miami, as amended ("City Code") requires the City Commission to adopt a resolution directing the City Attorney to prepare a Charter amendment. To Be Indefinitely Deferred City of Miami Legislation Resolution City Hall 3500 Pan Ameican Drive Miami, FL 33133 www.miamigov.com File Number: 2576 Final Action Date: 7/13/2017 A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH ATTACHMENT(S), DIRECTING THE CITY ATTORNEY TO PREPARE AN AMENDMENT TO THE CHARTER OF THE CITY OF MIAMI, FLORIDA ("CHARTER") FOR CONSIDERATION AT THE REFERENDUM SPECIAL ELECTION TO BE HELD CONCURRENTLY WITH THE GENERAL MUNICIPAL ELECTION SCHEDULED FOR NOVEMBER 7, 2017, PROPOSING, UPON APPROVAL OF THE ELECTORATE, TO AMEND SECTION 29- B OF THE CHARTER ENTITLED "CITY -OWNED PROPERTY SALE OF LEASE - GENERALLY," TO AUTHORIZE THE CITY COMMISSION BY A FOUR -FIFTHS (4/5THS) AFFIRMATIVE VOTE, TO WAIVE COMPETITIVE BIDDING AND TO EXECUTE AN AMENDED AND RESTATED LEASE WITH HYATT EQUITIES, LLC, TO EXTEND THE CURRENT LEASE TERM TO A TOTAL OF NINETY-NINE (99) YEARS, WITH AN ANNUAL BASE RENT PAYABLE TO THE CITY OF MIAMI ("CITY") OF AT LEAST TWO MILLION DOLLARS ($2,000,000.00), PLUS ADDITIONAL PERCENTAGE RENT FOR OTHER USES, WITH RESTRICTIONS, REVERSIONS, AND RETENTION BY THE CITY OF ALL OTHER RIGHTS, TO BE REDEVELOPED PURSUANT TO A COMPREHENSIVE REDEVELOPMENT MASTER PLAN INCORPORATING THE JAMES L. KNIGHT CONVENTION CENTER LAND REQUIRING CITY COMMISSION APPROVAL. WHEREAS, the City of Miami ("City") is the owner of the James L. Knight Convention Center located at 400 Southeast 2nd Avenue, Miami, Florida ("Convention Center"); and WHEREAS, the City is also the owner and landlord of the land upon which the hotel structure known as the Hyatt Regency Miami ("Hotel") is located and leased by Hyatt Equities, LLC ("Hyatt"); and WHEREAS, per the Lease Agreement originally dated September 13, 1979, as supplemented and amended ("Lease"), Hyatt currently leases the Hotel; and WHEREAS, the City and Hyatt desire to enter into an amended and restated lease ("New Lease"), which will extend the lease term to a total of ninety-nine 99 years, expand the leased premises to include the land upon which the Convention Center is located, amend the parking agreement, and require Hyatt to redevelop the site according to the terms specified in the attached non -binding Memorandum of Understanding ("MOU"); and WHEREAS, pursuant to Resolution No. 17-0261, adopted on May 25, 2017, the City Commission approved a Reconciliation Agreement to settle the existing claims and controversies with Hyatt as further specified therein; and WHEREAS, included in the Reconciliation Agreement was a non -binding MOU outlining the basic terms of the proposed New Lease; and WHEREAS, the City Commission has determined that the New Lease, as preliminarily contemplated by the MOU, will be in the City's best interest; 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 Attorney is directed to prepare an amendment to the Charter of the City of Miami, Florida ("Charter") for consideration at the Referendum Special Election to be held concurrently with the General Municipal Election scheduled for November 7, 2017, proposing, upon approval of the electorate, to amend Section 29-b of the Charter entitled "City - owned property sale of lease -generally," to authorize the City Commission by a four -fifths (4/5ths) affirmative vote, to waive competitive bidding and to execute an amended and restated lease with Hyatt to extend the current lease term to a total of ninety-nine (99) years, with an annual base rent to the City of at least two million dollars ($2,000,000.00), plus additional percentage rent for other uses, with restrictions, reversions, and retention by the City of all other rights, and to incorporate the James L. Knight Convention Center land into a comprehensive redevelopment master plan requiring City Commission approval. Section 3. This Resolution shall become effective immediately upon its adoption and signature of the Mayor. APPROVED AS TO FORM AND CORRECTNESS: 1 If the Mayor does not sign this Resolution, it shall become effective at the end of ten (10) calendar days from the date it was passed and adopted. If the Mayor vetoes this Resolution, it shall become effective immediately upon override of the veto by the City Commission.