HomeMy WebLinkAboutM-76-1163Prittket and Pritzker
;i ttorheys at Law
Two First National Plata
26 South Clark Street
Chicago, Illinois 60603
December 14, 1976
Mrs. Lose Gordon, Vice Niayc
C ty of Miami
City Hall
100 Biscayne Boulevard
Miami, Florida 33133
Dear Mrs. Gordon:
It was nice talking to you and l look forward to your t'ontinued
Cooperation in m2king Watson Isl.sryl a success. I
am reasonably optiniis-
tic that if we structure tbo matter properly that adequate financing will be
available to meet the requirements. As a brief outline of what I believe
to be a feasible plan, I suggest the following:
(1) That the City of Miami will issue bonds which are
adequately secured which Would produce a loan of
up to $25 Million.
That the City of I.iiami will issue revenue bonds in
the total Sum of $10 Million (more or less) that
will be secured by the Watson Island Theme Park
and its operations.
Mrs, Rose fortiori
•
ice mayor
The City bf lease to the bevelopmetit
Corporation a certain_ portion of Watson Island.
(tb be agreed upcn) for a term of years co -extensive
with the foregoing loan and with an option of renewal
for an equal term. Thereafter. The basic rent will
equal 4c7 of the gross income. It is entirely likely
that the mor%gagee under Paragraph (2) will require
some form of agreement regarding the lease if there
is default in that mortgage.
The management corporation will be entitled to receive
a management fee equal to 4°'o of the gross income, it
being agreed that both the management fed and the
basic rental shalt be payable to the extent that cash
is available on a pari-passu basis.
One-half of any cash rental which is available for distri-
bution would be paid to the City as so much additional
rent and a like amount would be retained by the Develop-
ment Corporation.
The expaniiture to be deducted from gross income to
the extent that cash is available shall be made in the
following order of priority:„
(a) Normal operating, expenses of the operation,
Mrs, nose ordott
Vee Mayor
test of the requirerrieftts of the 1o&ti kesorthheti
lrii Paragraph (2) above;
Capital improvement required to preserve and ek=
pand the attractiveness of the Theme Park;
Payment to the City to cover the annual requiredt exits
under its loan described in Paragraph (1) above;
Management fee and basic rent to the City described
in Paragraph (3); and
The balance shall be used to get the requirements of
Paragraph (4).
e City will furnish, as soon as possible, such information as to the
bpbsed development of Watson Island as may be necessary to determine its
ost so that the amount of the required loan under Paragraph (2) can be ascer-
tained. For this purpose, we will need at least a minimum of ninety days
from January 2, 1977. It is expected that if, during that period we receive
reasonable assurances from a responsible financial source that the money
will be available, that the City will cooperate with our time requirements.
If you think that it will scrre a useful purpose, please advise me and
will arrange to come down and go into more detail.
Sincerely,