HomeMy WebLinkAboutAgenda Item Summary FormAGENDA ITEM SUMMARY FORM
File ID: #3968
Date: 04/10/2018
Commission Meeting Date: 07/12/2018
Requesting Department: Department of Real
Estate and Asset Management
Sponsored By:
District Impacted: District 2
Type: Resolution
Subject: Direct City Attorney - Charter Amendment - Hyatt Equities, LLC
Purpose of Item:
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 August 28, 2018, 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 negotiate and 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 profit
participation 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.
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 ("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 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").
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. The City Commission has determined that the
New Lease, as preliminarily contemplated by the attached MOU, will be in the City's
best interest.
Budget Impact Analysis
Item has NOT an Expenditure
Item is NOT Related to Revenue
Item is NOT funded by Bonds
Total Fiscal Impact:
N/A
Real Estate and Asset Management
Office of Management and Budget
Office of Management and Budget
City Manager's Office
Legislative Division
City Manager's Office
Department of Fire -Rescue
Office of the City Attorney
Office of the City Attorney
City Commission
City Commission
City Commission
Reviewed B
Aldo Bustamante
Everton Garvis
Christopher M Rose
Fernando Casamayor
Valentin J Alvarez
Nikolas Pascual
Daniel Diaz
Valentin J Alvarez
Victoria Mendez
Nicole Ewan
Nicole Ewan
Maricarmen Lopez
Department Head Review
Budget Analyst Review
Budget Review
Assistant City Manager Review
Legislative Division Review
City Manager Review
ACA Review
Deputy City Attorney Review
Approved Form and Correctness
Meeting
Meeting
Meeting
Completed 04/10/2018 2:23 PM
Completed 04/10/2018 5:16 PM
Completed 04/12/2018 8:12 PM
Completed 04/23/2018 2:57 PM
Completed 04/23/2018 2:58 PM
Completed 04/25/2018 5:05 PM
Completed 04/27/2018 1:48 PM
Skipped 04/30/2018 10:14 AM
Completed 04/30/2018 6:14 PM
Completed 05/10/2018 9:00 AM
Completed 05/24/2018 9:00 AM
Completed 07/12/2018 9:00 AM
City of Miami
Legislation
Resolution
City Hall
3500 Pan American Drive
Miami, FL 33133
www.miamigov.com
File Number: 3968 Final Action Date:7/12/2018
TO BE WITHDRAWN
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, AS AMENDED ("CHARTER"), FOR CONSIDERATION AT THE
REFERENDUM SPECIAL ELECTION SCHEDULED FOR AUGUST 28, 2018, 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/STHS) AFFIRMATIVE VOTE, TO WAIVE
COMPETITIVE BIDDING AND APPROVE AN AMENDED AND RESTATED LEASE WITH
HYATT EQUITIES, LLC, TO EXTEND THE CURRENT LEASE TERM TO A TOTAL OF
NINETY-NINE (99) YEARS, TO EXPAND THE LEASED PREMISES TO INCLUDE THE LAND
UPON WHICH THE CONVENTION CENTER IS LOCATED AND AMENDING THE PARKING
AGREEMENT, WITH AN ANNUAL BASE RENT PAYABLE TO THE CITY OF MIAMI ("CITY")
OF AT LEAST TWO MILLION DOLLARS ($2,000,000.00), PLUS ADDITIONAL PROFIT
PARTICIPATION 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, 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 on August 28, 2018, 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, and to incorporate the James L. Knight Convention Center land,
providing a comprehensive redevelopment master plan requiring City Commission approval,
with an annual base rent to the City of at least two million dollars ($2,000,000.00), plus profit
participation rent for other uses, with restrictions, reversions, and retention by the City of all
other rights.
Section 3. This Resolution shall become effective immediately upon its adoption and
signature of the Mayor.'
APPROVED AS TO FORM AND CORRECTNESS:
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