HomeMy WebLinkAboutM-77-0463dOttiph ht drag-tittm
City Manager
D.04641.$4mS11)41
Charles Ls Crutipton
Assistant City Manager
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.:.-111ie.:tit'y 'OMMit-biohl-by •RegOlNo-
titibh-, -.7'77g,2044:rdiTObrOJ
ary-24f•'0.74
-..../..initiSted„,national advertitingandHdirect toliTditatiOnfor proPotalt-',..::.,
: ,the',development of'a majorititor-attrattion':ohatsOn'ISland,: ••-':
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regUlt,the. following five propotalt'wer'received.10y-thettab-...
lliheddSadline. of April 26, 1977: -,,,' .. . -',.,.',H,''. ,..,'.:.-•-:,::...-:'-.•.--.-, H.--.-:.: '
Collins Tuttle and company'i•Inc.'..',,IMew'York-AY—
:,.:' ..-bipibtat World..tnterpriget,' Ltd'..,:,:Miatili,Lrioridia.',''.„.
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Aern1y 8rothers•Company,' MUnCie, -Indiana- -;-.H.-....,'-• '','.:-.'...f.:,:Z.:.,.•
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'The international Group, ,Long 13each, ' CaliforniaCalifornia.'. ' ......
ene Schoor.Assodiates,, New York, 14.,.Y,,,,,: .
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Staff analysis of all proposals by a constituted Technical Evaluation
• ComMittee for the City Manager including Charles L. Crumpton and
•
Vincent E, Grimm, Jr., Assistant City Managers; James E. Gunderson,
Finance Director; Richard Fosmoen, Planning Director; and John E.
Gilchrist, Project Director for Watson Island Development resulted in
rejection of three proposals as not being responsive to the City of
Miami Request for Proposal.
The remaining two proposals from Diplomat World Enterprises and Collins
• Tuttle and Company, Inc. in association with Carl Marks and Co., Inc.
were then analyzed on a comparison basis to arrive at the following
recommendation:
• RECOMMENDATION:
• The City Commission, by resolution, authorize the City Manager to
• negotiate a successful agreement with one of the qualifying firms
ranked in the following order.
1. Collins Tuttle and Company, •Inc./Carl Marks and Co. ,Inc.
2. Diplomat World Enterprises, Ltd.
In the event that an
be achieved with the
obligation to attempt
firm ranked second.
agreement, satisfactory to both partieS, cannot
first ranked firm, then it is the Manager's
to negotiate a successful agreement with the
<: the. "e atteh biadki4tbtitid be tetiAl.. Wes rteVeio.pe'i ;Atilt ih .: he e
15cueet a-hd it':'preeetiteti. here ili o.d,e% t.6. ei; rUy the pYcspo
Financial Stability
Development -Concept
= •
DIPLOMAT WORLD. ENTERPRISEs CDWE)
Partnership includes:
Samuel N. Friedland, Principal -Chairman, Food Fair Inc..
Irving Cowan, General Partner -President,_ Diplomat
Hotel & Country Club.
Ronald L. Fine, General Partner -President, Venture
Development Corp.
In addition to their individual reputation in the
S. Florida Business Community, the proposal includes
CPA statements that each have a net worth in excess
of one million.
COLLINS TUTTLE/CARL- MARKS (CT/CM .
Collins Tuttle-8, Read Estate;
Deve-lopinent- .
Carl. Marks Co.,. : Investment Bankers
are associated on equal-. t,asits tor the
Watson, Island Development. .
Their icrint corporate assets exle.ecIt eifty
Both organizations presentingproposals, represent experience in; develooing and operating projtects
of this magnitude and are currently- involved- in the management and operastiom of visitor aittra(etiioflt::-.
enterprises while neither- have experience specif icarty analogous to the proposed Watson, Island
Deve lopmen t .
R. Duell & Associates, Architect
Economics Research Associates
Hank Meyer Associates, Pubbl Lc Relations
DWE is committed to R.Duell Associates for design- I
leadership as part of their development team ;
design to be approved by City of Miami - I
E 7:,proposes :to:develop and-',Operate'entire
Waton Is1and facilities,e-:the
a thorned' =amusement 'area, shOpninct
and dining cili tieS; Chad k rine'
.,.maintained:' the heliport and japanese.,.gardens.:are..
relocated .on island_ art- within, the.propOs,eci.4Smillion ',—,
budget.. No plans 'for expansion or 'annual
reserve funds for expansion -arc included as part
of. proposal.
Cl/CM1 proposed to join, with;
developing further the- F.,F...P.,s1r- concept; for
30 acre- attractionon Watson, Ituramdl., ;
the. proposal reCommends. consid
; hot t74 ctitturad .and
facilities to; be Curicred:-.out budget proposed -b•[:City.
A of flros-s arm 11%;If Mt 1:•*:41,.
is included in revenue-.
Design; Consultants to be -joirirty selected - -
by the developer and City and forniallIty
approved by the •City Commissiom.; Design
prepared under joint supe-rvisiom.buit subject! ,
to direction and control, of City-
Development team includes::
Frank J. Rooney-Constructiom Consultant:;
Steve Nostrand-PubDic Perot ions
If CT/CM contracts directly for designs services
with City approv.v1,. all prelviminary costs W.Pi 1•
be borne by CT/CK-
Brackets indicate clarifications determined during information meetings between developers and City* EvalluatiorreommitrUvw
-; FINANCIAL
-• CHARACTERISTICS
, Pre -Financing Costs
Management Fee
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DEVELOPMENT .;;PARAMETERS/RES -77-204
DEVELOPEP. CITY
100,000 prelim.costs
35 Mil. -attraction
10 MilTinfra-
structure
Contingency
45 million
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DIPLOMAT' -WORLD .E ;TERPRISES _
DEVELOPER. •CITY' ;
22.5 MiI.quaranteed
by non ad valor -
um revenues Proposal includes
Responsible for 22.5 MiI.guaranteed letter of intent
• bond sale or by project from managing.
alternative • revenues • underwriter
• financing - 45 Mil. Revenue bonds
35; Mil--Attraction10 MiL.-lnfra-
structure
Marina
Contingency
45 million
20 Hit- guaranteed
by non ad
valorunt
revenues;
25. MU- guaranteed
by project
revenues
45 Kit. revenue bonds
project
revenues
45t' Mikl-revenuebords
f to off first b5 nil-,
1121k- off 15-2120t4al.:
15lit everything/
over 204 Midi
Olk off grossl
750i.000/annum exalt
vent
COLLINS TU.TTLE/CARL. NARKS
DEVELOPER, CZTW
1 500000, good faith.
100,.000t preliminary,
t costs
10E4000) pr
35, Hil--;AttractiOns
structurei
Contingency/
45, million,
f•Ii/l-guaran te-
by non ad vat -
Carl Marks & Coto i orunt revenues;
handle bond sate 22c5r Mil.guaranteut
5% off Gross
on financing
Land Commnittinent:
DEVELOPMENT PARAMETERS/RES. 77.-204
DEVELOPER `. CITY
Current. operating ,..
expenses }' 2% . .
management fee
Reserve-renOVatiOn Debt: service
2% management: fee '" 2% rent to City
21, rent to City
5%;reserve for
expansion'.
Remaining funds to.
retireentire, debt
50% remaining funds .50% remaining fund
Durationof bond
debt but' not less
than'20 yrs. + 20.
yr. option
Interim conSt. loan
against bond 'commtt..>
Current operating
expenses--
Reserve-renovatiert
2% management fee.
. 80%.remaining•,funds
Duration of bond
debt butnotless-
than 30.yrs. +.30`
yr. option
Bond.•. financing or
Interim, const.,.loan,
against bond commtt.
Entire island'"
20% remaining. funds'.:
Debt service ;•
rent fix City
Fixed rent
,Remaining€ fttut t
etire entire debt
504e remaining i funds
Current.operatingt.
expenses:
Reserve -renovation
5 management fee
5%:: reserve -expansion:
remaining€ _funds
;Interim const- toast
•-
'against bondt:commt
acres
REVENUE 'AND EXPENSEPROJECTIONS(MILLIONS)
Table based on pro forma operating statement prepared
by Economics Research` Associates for-City:with
revenuedistribution formulas applied from each
development. proposal
DIPLOMAT- WORLD ENTERPRISES:`
COLLINS 2UTTLE/MARXS
First Full
Year Year First. Full Year Year
� � � _
Operating Year 5
10 OperatLnq.Year 5 DOS
$22 08 522.45 - 522.3.05 8 S'36 00,
Attendance' (in millions)300 36-8L S22 08 522-45SBr-8I S38 8II
Gross Revenues 5.07 -. -
5.07 .;:. 5. 15 ,,_ ,5.H4 It.45
Cost of Goods Sold 9w Q.06 8�
9.73 9.89 10.06 16 22 9 73
-- 5 li5
8
DeOperating . P
3.80 ` -" =: 3:H0 ... 3.H0" :3.80 - � - 3:80; _ :3 BOa 13_HO� : �3b 8[1�.
Debt-. Expenses Service
a °; ::. _; . L_D2 ILIA 1L84t� .-..
1.10` 1.T2 L."14 1.84 Reserve for Renovation/Expansion c I.47 - - .90 . .. . )1`. Y
1F 10�" 6Z#
88
*Revenue en city 9-
4Management Fee to Developer. 86 ':
0 .91 1 47
1 28' L
1i 1'0= L 12` � 4' .
11-844
.-14 . 15 1
- .12 -
*Remaining Funds ;to City .-.. -
n Funds to.Develo r 50
.55 .60 .. 2.85-
+'Kcmaini g Developer
0
+Total Funds-to_City:
: *Total Funds to' Developer
S 1.00
1.38
4.64€-