HomeMy WebLinkAbout05-16-94Board of Directors Room
City Hall - 500 W. Markham
Little Rock, Arkansas
May 16, 1994 - 6:00 P.M.
The Board of Directors of the City of Little Rock, Arkansas
met in special session with Mayor Dailey presiding. City Clerk
Robbie Hancock called the roll with the following Directors in
attendance: Directors Roy, Sharp, Mason, Adcock, Hendrix,
Scheibner, Keck and Joyce - total 8; Absent - Directors Priest
and Lewellen - total 2.
With a quorum present, Mayor Dailey called the meeting to
order and stated the purpose of the special meeting was to
discuss the sale of the Camelot Hotel.
The Invocation was given by Mayor Dailey, followed by the
Pledge of Allegiance.
Mayor Dailey explained the action taken by the Advertising &
Promotion Commission regarding the sale of the Camelot Hotel and
set forth the format for the Board of Directors Meeting, as
follows: thirty (30) minutes will be allotted to each of the
four firms with proposals - 15 minutes for formal presentation
and 15 minutes for questions. After the four presentations,
there will be open discussion.
Mr. Wally Allen, Chairman of the Advertising & Promotion
Commission, explained that the Commission had hired the
consulting firm of Flake, Tabor, Tucker, Wells and Kelley to seek
proposals to buy and renovate the Camelot Hotel, and to evaluate
and select candidates for further evaluation and negotiation.
Ten (10) proposals were received and reviewed by the consulting
firm and narrowed down to five finalists. The negotiating
committee (Barry Travis, Hal Kemp, John Pryor and Tom Carpenter)
and the consulting firm conducted further negotiations with the
five finalists and made a recommendation to the Advertising &
Promotion Commission. The Advertising & Promotion Commission
accepted the report of the negotiating committee and adopted a
resolution recommending to the Little Rock Board of Directors
that Seymour Logan Associates be granted the right to own and the
obligation to operate the lease, air rights and improvements now
known as the Camelot Hotel as a first class convention hotel.
Mr. Allen then read the A &P Resolution and urged the Board of
Directors to accept the recommendation of the Advertising &
Promotion Commission.
(Director Lewellen enrolled at 6:14 o'clock P.M.)
The first presentation was made by Seymour Logan Associates
of Chicago, with Mr. Martin H. Fishman making the presentation.
The second presentation was by Daihatsu International
Trading, Inc., a Little Rock company representing two investors
from China, with Mr. Dwight Linkous making the presentation.
The third presentation was by the Madden Group, a limited
partnership of local and national investors, with Mr. David Jones
and Mr. Don A. Madden, Jr. making the presentation. Mr. Jones
explained a proposed merger between the Madden Group and
Daihatsu. Director Keck called for a point of order and asked
City Attorney Tom Carpenter if this is now one group or two
separate groups. Mr. Carpenter replied, "What you have is an
indication that Daihatsu and the Madden Group are willing to
enter into a merger. However, it seems to me that Mr. Madden is
presenting a separate proposal. I have not heard that if Madden
is awarded the contract on its own that it would necessarily
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include Daihatsu, but that is an option. I think that is the
question that needs to be asked. If the Madden Group is to
receive this, does that mean the Daihatsu group would necessarily
be involved with them. If that is true, then you are in the
unique position of having conflicting design proposals being
presented to you at the same time. On the other hand, if the
Madden group receives the contract on its own and is accepted on
its own, then this is a proper inquiry." Mr. Jones stated that
the Madden Group and Daihatsu have reached an agreement to become
partners, but thought the City Board wanted to see what each one
initially proposed. The merger will be an incorporation of both
proposals. The Board of Directors generally agreed to hear the
other proposals, and then allow questions regarding the proposed
merger.
(Director Priest enrolled at 7:20 o'clock P.m.)
The fourth and last presentation was by the Equity Group of
Little Rock, with Mr. Jim Keet making the presentation.
(Note: There was no presentation by John Q. Hammons Hotels
of Springfield, Mo.)
The Board then requested more information regarding the
proposed merger of the Madden Group and Daihatsu. Mr. Jones
explained the Madden Group would manage the hotel and the
ownership would be 51% local (20% Madden and 31% private
investors) and 49% foreign. The decision to merge was made after
both groups had met with the Advertising & Promotion Commission.
In response to a question by Director Adcock, Mr. Barry Travis,
Executive Director of the Advertising & Promotion Commission, and
Mr. John Flake of the consulting firm stated they were not
prepared to respond to the proposed merger and it has not been
reviewed by the Committee. City Attorney Tom Carpenter stated
the recommendation of the Committee remains the same.
Following the four presentations and Board discussion,
Resolution No. 9,161 was introduced, with the title being:
A RESOLUTION ACCEPTING THE RECOMMENDATION OF THE ADVERTISING
AND PROMOTION COMMISSION TO GRANT THE RIGHTS TO THE CAMELOT HOTEL
TO SEYMOUR LOGAN ASSOCIATES; DIRECTING THE NEGOTIATION OF FINAL
TERMS OF A CONSTRUCT AND LEASE AGREEMENT; AND FOR OTHER PURPOSES;
and the Resolution was read in full. There was a motion by
Director Scheibner, seconded by Director Roy, to adopt the
Resolution and the Resolution was adopted by the following roll
call vote: Ayes - Directors Priest, Roy, Mason, Scheibner, Keck
and Joyce - total 6; Noes - Director Lewellen, Mayor Dailey,
Directors Adcock and Hendrix - total 4; Abstentions - Director
Sharp - total 1; Absent - None.
There being no further business to be presented, the Board
of Directors adjourned the special meeting at 8:15 o'clock P.M.
to meet again in regular session on Tuesday, May 17, 1994, at
6:00 o'clock P.M.
ATTEST:
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City Clerk Robbie Hancock
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APPROVED: It
M or Jim Daile