The City of Miami has agreed to pay Hyatt Equities close to $4 million in a settlement resolving a maintenance disagreement. The business dispute between the city and Hyatt has been going on for years and was stopping the two parties from moving forward with their plans to redevelop the area.
The dispute involved Hyatt’s Miami River hotel and the costly maintenance that was done on the aging property. Hyatt was unhappy with the fact that police and firefighters have been forced to work with malfunctioning equipment. However, Miami commissioners have made amends by agreeing to hire a company to redo Miami’s emergency radio system. Additionally, in the reconciliation agreement, Miami agrees to pay $2.2 million for safety-related maintenance work on Hyatt’s property and $1.7 million in rent to cover value depreciation and other costs.
Now that the parties have settled their differences, Miami commissioners plan to negotiate with the hotel next door, River Park Hotel & Suites, and try to expand their redevelopment efforts. Miami will also pay Harris Corporation close to $12 million to develop a new two-way radio network for police and firefighters to use.
Business disputes involving commercial real estate can be complicated and involve millions of dollars. When businesses are stubborn and focus solely on their own needs, coming to a resolution is unlikely. As the parties battle back and forth, money and time is being wasted on both sides. Companies need to work amicably to find the best solution for all parties involved. Once a dispute is resolved, the parties can move forward with other dealings and return their attention to running their successful businesses.
Source: Miami Herald, “Miami settles $4 million dispute with Hyatt,” David Smiley, May 25, 2017