Broward County Commission Regular Meeting
Director's Name: Stephen Farmer (Acting Director)
Department: Finance and Administrative Services Division: Administration
Information
Requested Action
title
MOTION TO APPROVE First Amendment to Management Contract by and between Broward County and Omni Hotels Management Corporation, to amend operator’s duties and Exhibit D, Minimum Insurance Requirements, and to delegate authority to amend the Minimum Insurance Requirements; and authorize the Mayor and Clerk to execute same.
body
Why Action is Necessary
Amendments to agreements signed by the Board require the Board’s approval absent delegated authority.
What Action Accomplishes
Updates the insurance requirements based on Risk Management’s review and recommendation and in consultation and cooperation with Omni Hotels Management Corporation (the Operator), including granting authority to the County Administrator or delegee to approve, with the written concurrence of the Risk Management Division, further changes necessary based on the availability and reasonableness of risk management products in the changing insurance market.
Goal Related Icon(s)
☐County Commission
☐Go Green
☐MAP Broward
Previous Action Taken
None.
Summary Explanation/Background
THE FINANCE AND ADMINISTRATIVE SERVICES DEPARTMENT RECOMMEND APPROVAL OF THE ABOVE MOTION.
On March 15, 2022 (Item No. 50), the Board approved the Hotel Management Agreement (HMA) between Broward County and Omni Hotels and Resorts (Omni) for the Convention Center Headquarters Hotel (Hotel).
This item approves an amendment to the Minimum Insurance Requirements detailed in Exhibit D of the HMA, including granting authority to the County Administrator or delegee to approve further changes necessary based on the availability and reasonableness of risk management products in concurrence with the County’s Risk Management Division; requirement for timely notification of insurers to safeguard property from further damage; and permission for the County, at its own discretion, to keep and maintain property insurance with named windstorm, flood, and earthquake insurance sub-limits that are less than the full replacement value of the Hotel building and its contents, provided that such sub-limits shall be at least $100 million for named windstorm and $50 million for the perils of flood and earthquake.
The Hotel is anticipated to open in November 2025 pending continued construction progress. The Hotel will include the following components: 801 rentable Guest Rooms; approximately 73,000 square-feet of meeting space; approximately 21,000 square-feet of food and beverage retail within the Hotel; 10,000 square-feet of food and beverage retail on the Plaza; 20,000 square-feet of other retail space; a pool, spa and fitness center; approximately 500 dedicated parking spaces; and other amenities and supporting facilities as agreed upon by Owner and Operator commensurate with a full-service, Four-Diamond hotel.
The Amendment has been reviewed by the Risk Management Division and approved as to form and legal sufficiency by the County Attorney’s Office.
Source of Additional Information
Stephen Farmer, Deputy Chief Financial Officer, 954-357-7246
Amy Lanham, Director, Risk Management Division, 954-357-7219
Fiscal Impact
Fiscal Impact/Cost Summary
There is currently no fiscal impact to the County. All Hotel related expenses, including insurance and other risk management products upon opening of the Hotel will be paid from revenues generated from hotel operations.