FYI Miami: June 1, 2017
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WATSON ISLAND DEFAULT FOUND: Miami city commissioners unanimously Tuesday afternoon found a developer in default of a ground lease of city-owned property on Watson Island after 15 years of little to no construction of mega resort Island Gardens. As sponsored by Ken Russell, commissioners directed the city manager “to issue a notice of default to Flagstone Island Gardens LLC… due to failure to commence construction as required by these agreements; and further directing that the city attorney and independent auditor general conduct an analysis of these and any other related agreements with Flagstone to determine if there are other breaches.” The intent is that the city reclaim the property. The vote came at the end of a more than four hour special meeting. The lease was the only topic.
CITY OKS $4 MILLION SETTLEMENT: Years of battles over who owed what in a deal between the City of Miami and Hyatt Equities LLC were resolved by a May 25 commission vote. Hyatt leases city-owned waterfront and runs a hotel attached to the James L. Knight Convention Center. The city and Hyatt have begun talks about a new long-term lease. Administrators said a new lease wasn’t contingent on resolving financial disputes with Hyatt. Commissioners approved a “reconciliation agreement” calling for Hyatt to upgrade the Knight Center and hotel fire alarm system, replace tiles outside the convention center, and repair water damage to the hotel on the ground level. In exchange, the city must pay Hyatt up to $2,268,279 for the city’s portion of the alarm system, tile repair and “other life safety issues.” The settlement also calls for the city to pay $778,722 for its portion of disputes regarding maintenance costs and concession fees, and pay Hyatt $972,725 for the city’s portion of disputes on chiller overpayment, depreciation credit and design fees. The latter two and will be “credited to rent payments made by Hyatt.”
MERGER IN THE BAG: Dade Paper & Bag Co., a distributor of food packaging, paper products, foodservice disposables, and janitorial & sanitary supplies based in Miami, has entered into an agreement to combine with Imperial Bag & Paper Co. LLC, a Jersey City, NJ-based distributor of disposable food service and janitorial supplies. The combined business will have total revenues over $1 billion. The transaction is expected to close in June. Said Frank Sansone, Dade Paper & Bag chief operating officer, “With Imperial we will soon be able to offer our customers a broader product offering and service across a wider footprint.” Founded in 1939, Dade Paper & Bag primarily services the Southeast and Mid-Atlantic markets from Florida to Maryland, with additional locations in the Tri-State and Northeast regions.