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HomeMy WebLinkAboutR-78-0074RESOLUTION No.7 8 a ? 4 A RESOLUTION AUTHOR12ING Tilt CITY MANAGER TO EXECUTE CONTRACTS WITt# MIAMI ASSOCIATES LTD, FOR THE DEVELOPMENT, OPERATION AND CONSTRUCTION OF THE CITY OF MIAMI CONVENTION CENTER/UNIVERSITY OF MIAMI JAMES L. KNIGHT INTERNATIONAL CENTER SUBSTANTIALLY IN ACCORDANCE WITH THE TERMS ANb CONDITIONS OF THE LEASE AND AGREEMENT FOR PRIVATE DEVELOPMENT ANb THE CONSTRUCTION MANAGEMENT SERVICES AGREEMENT ATTACHED SUBJECT TO PROVISIONS AND EXCEPTIONS AS RECOMMENDED BY THE CITY COMMISSION BE IT RESOLVED 13Y THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: Section 1. The City Manager is hereby authorized to execute contracts with Miami Associates Ltd, for the Development, Operation, and Construction of the City of Miami Convention Center/University of Miami James L. Knight International Center substantially in accordance with the terms and conditions of the "Lease and Agreement for Private Development between the City of Miami and Miami Associates, Ltd." and the "Construction Management Services Agreement between the City of Miami and Miami Associates, Inc." subject to the provisions and exceptions as recommended by the City Commission in Section 2. Section 2. The following provisions and exceptions are to be incorporated into the aforementioned contracts prior "DOCUMENT INDEX t _ 1 a. Paragraph 4.2: The Agreement will provide substantially as follows that the Developer will pay Performance Rent on the basis of 20 percent of "Net Operation Profit" as further defined therein or as a percentage of Room Sales, net of commissions, in accordance with the following schedules of Performance Rent, depending upon the actual number of rooms to be built. The Agreement will also provide for interpolation of Performance Rent where actual number of rooms is between the two schedules. The Performance Rent to be paid to the City will be the higher of the two computations, to execution by the City Manager: CITY COMMISSION MEETING OF J A N 3 4 1978 R noN NO. Rom: ,,.,,. r,.,,..Ilet SCHEMLES OE 'ERF'ORMANCE RENT SALES LEVEL (ROOMS ONLY) NET OT COMMISSIONS IN $1,000 500 ROOMS 0 5,000 5,500 6,000 6,500 7,000 7,500 8,000 8,500 9,000 9,500 10,000 to to to to to to to to 5,000 5,500 6,000 6,500 7,000 7,500 8,000 8,500 to 9,000 to 9,500 to 10,000 & above 607 ROOMS 0 8,500 9,000 9,500 10,000 10,500 11,000 11,500 12,000 12,500 13,000 13,500 to 8,500 to 9,000 to 9,500 to10,000 to10,500 to 11, 000 to 11, 500 to 12; 000 to 12, 500 to13,000 to 13, 500 to 14,000 PERCENT .0. 2.0 2.3 2.6 2.9 3.2 3.5 3,8 4.1 4.4 4.7 5.0 Additionally, the Agreement will be revised to include City participation in all foreseen and unforseen revenue sources, recognizing that the Developer will have the right to generate such revenue producing sources. b. Paragraph 4.7: The Agreement will provide that only City of Miami Ad Valorum taxes will be credited against rents payable to the City. c. Paragraph 5.6: The Agreement will be changed to read "The Commission of the City of Miami" in lieu of the word "City". d. Paragraph 8.2: The Agreement will be changed to provide that the. Developer will have the equal right to the use of Convention Center's facilities as the City. e. Paragraph 10.2: The Agreement will provide for a definition of a "first class hotel" in accordance with standards as defined by the American hotel Association. f. Paragraph 12: The Agreement will be revised to provide for renegotiation of the City's participation in the event gambling is legalized and incorporated into this facility. g. Paragraph 19.4: The Agreement will be revised to delete the second, third and fourth sentences beginning with the phrase "Notice of the..." and ending with the phrase "...State of Florida," h, Paragraph 19.8: The Agreement will clearly establish that 5 years will be the maximum term of the Developer's right of first refusal, i. Paragraph 19,9: The Agreement will be revised by adding a provision to limit the budget for pre -opening expense to $500,000, unles otherwise approved by the Commission of the City of Miami. j. Paragraph 19.18: This Agreement will add a provision such that any substantial changes will have to be approved by the Commission of the City of Miami. PASSED AND ADOPTED this 24 day of JatrarY ,1978. TEST: RALi G. ONGIE, CITY CLERK PREPARED AND APPROVED BY: ROBERT F. CLARK ASSISTANT CITY ATTORNEY Maurice A. Ferre MAURICE A. FERRE, MAYO R - THIS PREPARED RESOLUTION IN RELATION TO A REGULAR AGENDA ITEM WAS ACTUALLY DISCUSSED AND PASSED DURING THE AFTERNOON SESSION. THE ORIGINAL IS TO BE FOUND AMONG THE PAPERS OF THE PLANNING & ZONING MATTERS IN THE MEETING OF SAME DATE.