LTC 240-2003 (1)
of 77
-
Upload
donpeeblesmia -
Category
Documents
-
view
212 -
download
0
Transcript of LTC 240-2003 (1)
-
8/15/2019 LTC 240-2003 (1)
1/77
CITY
OF
MIAMI
BEACH
Office
of
the
City
Manager
Letter
to Commission
No.
c 2 7 '
o .
7 c o 3
Fro m :
Mayor
David
Der mer
and
e m b e r s
o
he
City
C o m m i s s i o n
Joge
M
o n z a l e z \ , . .
r-~
ty
M a n a g e r
U
0
ROYAL
PALM
Date: October
9
2003
To
Subject:
A t t a c h e d
p l e a s e find
the
aest
c o r r e s p o n d e n c e
between
Don
P e e b l e s
and
the
ty
regarding
ou
n g o i n g
n e g o t i a t i o n s .
A
e p o r t
wll
be
provided
o n
O c t o b e r
15,
2003
to
the
Cty
Commiss ion .
I
am
lso
attaching
an
pdated
Ne
r e s e n t
Value
calculat ion
reflecting
th e
new
e g o t i a t e d t e r m s
in
o m p a r i s o n
to
he
E x i s t i n g
L e a s e
T e r m s
and
the
April
3 0 ,
2003
LO I
T e r m s .
JMG\~\
rar
F\
mgr \$
ALL\
lTC-03
DP
Royal
Pam
L O I
and
P V . CMC
ra.
oc
a t t a c h m e n t s
c
hristina
M
uervo,
As s i s t an t
Cty
M a n a g e r
P a t r i c i a
Waker,
h i e f
Financial
-
8/15/2019 LTC 240-2003 (1)
2/77
P
ADC
Hospitality
Corporation
I
550
B i l tm o r c \
Va.
Sute550Cora
G a h l e s .
F l n r i d a
3 3 1 3 4
Tcl: (.05)
442-
4 3 4 2
Fax: (
0 5 )
442
4345Va
Courier
October
2
003
M.orge
M
onza lez
E x e c u t i v e
Director
Miami
Beach
R e d e v e l o p m e n t
Agency
E x e c u t i v e Director 1700 Convent ion
Center D r i v e
Miami
Beach,
F l o r i d a
33130
R e : R oya l
P a l m
C r o w n e
P l a z a R e s o r t Lettero
Intent
Dear
Mr.
Gonzalez:
Imn
receipt
of
and
h a v e
reviewed
y o u r lettero
e p t e m b e r
30,0 0 3 andu n d e rs t a n d
a n d
a p p r e c i a t e
the
p i r i t in
w h i c h
itas
ent.
We
aveal
een i n v o l v e d
in
hi s process
for
a
ong t i m e .
s o m e
far
o n g e r
han
o t h e r s ,
and
we
realr u s t r a t e d
wth
theime
it
has
t a k e n
too n c l u d e
an
cceptabe a g r e e m e n t .
It
e e m s
t h a t every
we
geclose.
a
e w
issue
a l w a y s
seems
to
hrow
us
fo u r s e .
I
a v e
twce
nowi g n e d
a
e t t e r of
i n t e n t ,
a f t e r much negotiation, Ih o u gh t and
a s s u m e d
would
b e
a c c e p t a b l e
to
he
Cty
Ina c h
i nstance. ave
been
told
tha
what
I
i g n e d
w a s
not
a c c e p t a b l e
because
oe w c o n d i t i o n sthahad
o t
p r e v i o u s l y
been
agreed
to
by
m
ith
r e s p e c t
s o m e
o
s t a t e m e n t s c o n t a i n e d inyour
September
30
letter
ae
not
a c c u r a t e ,
andIfee
hat
I
need
to
cal
h o s e
i n a c c u r a c i e s
toyour
a t t e n t i o n .
You
irst
make
at a t e m e n t
t h a t I
d e l e t e d
the"
e q u i r e m e n t "
to
rov ide
the
ettero
o n s e n t
from
nion
Planters
Bank.
I
must,agan
emnd
youtha
while
many
o t h e r i s s u e s
and
o n c e p t s
w e r e dscussed
during
our
many
n e g o t i a t i o n
s e s s i o n s , w h a t was
finaly
ag reedto
s
c k n o w l e d g e d
by
ll c o n c e r n e d ,
was
ha t
was
e t
forth
in
thee p t e m b e r10er m S h e e t
that
wasu b m i tt e dto
the
C o m m i s s i o n
one p t e m b e r 10,
a
o p yo
h ich
is
e n c l o s e d ,
andto
h e
e x t e n t non c o n s i s t e n t , the
p r i l
30
r a f tothe
e t t e r
o
n t e n t
tha
Ii g n e d (seetem
9the
erm
Sheet).
Nowhere
in e i t h e r
oh o s e document
is
there
a
e q u i r e m e n t "
of
a
o n s e n t
letter
from
n i o n
P l a n t e r s B a n k. After looking
a
he Exhibt
Bn c l u d e d
wth
S e p t e m b e r
30
leter. Iealize
tha
the
p r o b l e m
is
hat we ae
a c h
r e f e r r i n g to
different
E x h i b i t BsWhaI
nd
my
c o un s e l h a v e been r e l y i n g
o n
is
the
formo
x h i b i tB
hat
was
g r e e d
to
and
a t t a c h e d
to
the
Apl
30
etter
o
ntent
tha
I
i q n e d
and
ad
a v a i l a b l efo
xecution
on
b e h a l f
o f
the
City
a
he April
30
o m m i s s i o n
m e e t
You
nd
J o e l
a p p e a r
toereyng
ona
fferent
v e r s i o n .
but
it
is
ot
the e x h i b i t
that
we
g r e e d
to
I
u s p e c t
tha
if you
r e v i
the
u b m i t t a l
to
he C o m m i s s i o n fothe
pril
30meeting,
yo u
will
fnd
n
x h i b i t
B
o n s i s t e n t
with
the
x h i b i t
B
I
a v e
been
r e l y i n g
on
The
B a n k
consent
ssue
firs
r o s e
a
heo m m i s s i o n
m e e t i n g
a n d ,
t h e r e f o r e ,
was
not
i n c l u d e d
in
h a t
I
g r e e dtorior
to
ha
meeting. The
s e c o n d
numbered
p a r a g r a p h
of
your
l e t t e r
staes
tha
I
as "
e t r e a t i n g "
from
my"
o m i s eto
b ta in
a
eter
from
Union P l a n t e r s
Banknd r e f e r r e d
to
my
ema
o
e p t e m b e r
16
hich
enclosed
w i t h
your letter.I
ave
read
and
e r e a d that
ema
a n d
nowhere
do
I
ee
n y t h i n g
that
r e s e m b l e s
a
p r o m i s e " .
W h a tItated
in
h a t email
is
h a t
w e
were "
in
herocess
of
getting
the loan
-
8/15/2019 LTC 240-2003 (1)
3/77
Mr.
Jorge
M. Gonzalez
October
2
2 0 0 3 Page
2
av e already addressed
the
h i r d
n u m b e r e d
p a r a g r a p h
o
o u r letter
reaing
to
he c o n f u s i o n
b e t w e e n
the
o rm
of
Exhibt
B
a p o l o g i z e
that
I
idnonclude
al a c k l i n e
r e v i s i o n
of
the
LO.s
my
counsel
has
previously
a d v i s e d Joe M i n s k e r .
ths
as
an
o v e r s i g h t
o n
the
part
o
staff
and
I
ully
i n t e n d e d
to
r o v i d e
the
b l a c k l i n e
to
you.
It
s
y
understanding
that
a
l a c k l i n e
has
o w
been
p r o v i d e d
to
Joel.
A
too u r r e q u e s t
relative
tothe
ow n
Park d o c u m e n t s , wecan
a ke
them
a v a i l a b l e for
review byyou
counsela
Hu nton & i l l i a m s ' offices.
Ateral
he se
weeks,
m o n t h s and
years.
we
ave
finaly
e a c h e d an agreement
onh e
b u s i n e s s
tem
o s e t t l e m e n t ,
an d
it
oud
e
m o s t unfortunate fo r al o n c e r n e d
to
l o s e
this
o p p o r t u n i t y
to
r i n g
ths
a t t e r
to
o n c l u s i o n .
In
the
prit
o f
c o m p r o m i s e ,
therefore,
I
am
p r e p a r e d to includein
evised
L e t t e r
o
n t e n t my
g r e e m e n tto
bta ina
eter
from Union
P l a n t e r s
Bank
within
thir ty
days
f t e r the e x e c u t i o n
of
th e
LO
by
al
a r t i e s .
Theetter will
state
tha
h e
Bank
a g r e e s
in
rinciple
w i th
the
terms
o
he
L O I
subject
to
ts
receipt.
e v i e w
and approval
o
he
definitive
documents.
Wa n n o t , however ,
c o m m i t
to
b ta in a
p ec ific fo rm o
leter,but
webelieve
tha w e canbtain
ae t t e r
tha
wll
e r e a s o n a b l y
s a t i s f a c t o r y
to
th
C i t y .
1
)
I,
t..
condi t ion
of
our g r e e m e n tto
rovide thee t t e r from U n i o n
P l a n t e r s
must
be
tha
the
Cty
agee
hat d r a f t i n g
wll
o m m e n c e
immediately
a f t e r
the
e x e c u t i o n
a n d
a p p r o v a l
o
the
OI
by
al parties s i n c e
we
dono
wish
to
elay
fo
n o t h e r
thrty
d a y s
our
c o n c l u d i n g
ths
a t t e r .If
you
ae
n w i l l i n g to
have
your
c o u n s e do
th e
d r a f t i n g ,
han
I
will,
a
my
x p e n s e , have
m y
c o u n s e l
prepare th e
d r a f t s . Ifo ur
c o u n s e l
is
to
o
he
r a f t i n g ,
I
ould
also
want
a
o m m i t m e n ttha
i rst
drats
ofal
o c u m e n t s beublished forevew
i t h i n two weeks
a f t e r
e x e c u t i o n
o
h e
L O I .If
my
counsel
is todo
he drafting,I
il l make
he same
c o m m i t m e n t .
In
add i t ion
to
our g r e e m e n t
to
r ov i de
th e letter
from
th e
Bank,
in
nf f o r t
to
n a l l
bring
this
to
o n c l u s i o n ,
I
ill
asoagree
to
roVide
the
f f i d a v i t
you
have
requested
egarding
our
pr ior
loan
m o d i f i c a t io n s
d e s p i t e
that ,tact
that wedoo t
believe
tha
such
afdavt
s
r e q u i r e d under t h e s e
c i r c u m s t a n c e s
by
termso
hee a s e .
I
avee v i s e d
Exhbt
to
t h a t
a g r e e m e n t .
WI1
A
I~~
rust
tha
you
wll s e e
tha
therehas been
to
om e
exen,
n i n n o c e n t
m i s c o m m u n i c a t i o n
o
i s u n d e r s t a n d i n g
as
o
w h a t
had
been
agreed
ton
the
Term
S h e e t
and
he
A p r i l
30
LO
u g g e s t
wepu
h o s e
m i s u n d e r s t a n d i n g s
asde
n d
m o v e
forward
with
this
n e g o t i a t i o n ,
in
o o d
fath
u c h
thatit
anbe
a p p r o v e d
by
h e
C o m m i s s i o n
on
O c t o b e r
In
vew
f
the
fact
hat
ave
o n c e d e d
to
o ur
requests
asdescribed
a b o v e
and
ave
changed
m y
p o s i t i o n on
a n y t h i n g
that
I
g r e e dton
he
April
30 LOI
and
the
Term
Sheet,
there
h o u l d
be
no
e a s o nwhy
his
m a t t e r
c a n n o t
be
b r o u g h t
before
the
o m m i s s i o n
on
he
15'
h
o r
fina a p p r o v a l .
Although
u a r t
H o f f m a n wll
be
out
o
next
week,
I
amu re tha
y o u
and
I
a n nd
time
to
ee t
to
rng
his
to
o n c l u s i o n
if
you
hnk
-
8/15/2019 LTC 240-2003 (1)
4/77
Mr.
Jorge
M.
Gonzalez
October
2
2 0 0 3 Page
3
n the
m e a n t i m e ,
Iav e
revsed
the
LOI
c o n s i s t e n t
with
thslete
and
have
nclosed
four (
4
riginals,
h i c h
have
been
executed
for
o u r
revew
ogether
wth
a
lacklined
version.
Sincerely,
RDP
ROYAL
P A L M
HOTEL
LIMITED
PARTNERSHIP
B y :
PADe
Hospitality
C o r p o r a t i o n
I,
G e n e r a l Partner
t
ov~~
R
D o n a h u e
Peebles ~
r e s i d e n t
Enclosures
cc:
C h a i r m a n
and
embers
o
he
R e d e v e l o p m e n t
A g e n c y
Murray
H
u b b i n ,
Cty
ttorney
Joe
N.
i n s k e r ,
B l o o m &
i n s k e r ,
P
A
ity
o
Miami
Beach
Cty
anager
Mam
Beach
R e d e v e l o p m e n t
A g e n c y
General
C o u n s e l
-
8/15/2019 LTC 240-2003 (1)
5/77
This
communication
is
a
privileged
setllement
conullunicalion
and
stricti)'
inadmissihle
for
any
purpose
llUrsuant
to
Section
90.
408,
Fla.
Stat.
and
R u l e
408,
Fed
Evd
L E T T E R
OF
NTENT
TO
A M E N D
ROYAL
PALM
C{
OWNE
PLAZA
R E S O R T
A G l m E M E N T S
Subjcct:
Parties:
Royal
Palm
Crowne
P laza
Hotcl
RDP
Royal
Pam
Hotel
L i m i t e d
P a r t n e r s h i p (
RDP")
Cty
of
M i a m i
Beach (
the"
Cy)
iami
B e a c h
R e d e v e l o p m e n t
Agency (
he
A g e n c y )
D a t e :
2003
R E C I T A T I O N S :
A
ay
28.
1998,
h e
parties
entered
in to
an
g r e e m e n t
o
Lease
e g a r d i n g
the
a n d
more
fuly
e s c r i b e d
on
Exh ib i t "
A" ("
Land")
at tached
h e r e t o
a n d
m a d e
a
art
hereof
as
if
uly
set
f o r t h
h e r e i n ,
as
ecorded
on
J u l y
I,
9 9 8
in
Official
Records
B o o k
18170,
a
Page
0893,
in
th e
Public
e c o r d s
of
Miami-
a d e
C o u n t y ,
F l o r i da ( "
Lease ).
B
u b s e q u e n t
to
h e
r e c o r d i n g
o
the
Lease
RDP
began
the
c o n s t r u c t i o n
of
the
o y a l
Pam
h o r e c r c s t
C r o w n e
Plaza
Hotel ('"
Hoe")
C
During
the
c o n s t r u c t i o n
o
he
Hotel,
RDP
e n c o u n t e r e d
s t r u c t u r a l
problems
wth
the
r i g i n a l
Royal
Palm
Hotel
and
sol
o n t a m i n a t i o n
prob lem s
regardng
the
a n d
which
aleg-
edy
e s u l t e d
in
crtain
c o n s t r u c t i o n
deays
A
i s p u t e
arose
a m o n g s t
th e
part ies
r e g a r d i n g
the
f o r e s a i d
p r o b l e m s
and
elays
r e s u l t i n g
in
D P '
s
e f u s a l
to
pay
e r t a i n
Rental
d u e
u n d e r
the
ease
a n d
the
Agency
s
refusal
to
pay
c la i m s
r e l a t e d
to
sad
ontaminat ion
and
a l l e g e d
construc-
t ion
delays .
D
he
parties
r e s p c c t i v e l y
eny
and
spute
a/
such
c l a i m s
and
a l l e g a t i o n s
against
t h e m .
whether
a s s e r t e d
o
unasserted.
E
h e
parties
wishing
o
void
litigation
and
a m i c a b l y
resolve
al
a t t e r s
existing
between
them,
entered
into
negot i
a t i o n s
regardng
the
f o r e s a i d
d i s p u t e s .
Ths
e t t c r
sets
forth
the
n d e r s t a n d i n g
reached
as
a
result
of
such
n e g o t i a t i o n s .
C a p i t a l i z e d
terms
w h i c h
are
not
defined
in
hs
Letter
o
n t e n t
to
Amend
R o y a l
Pam
Crowne
P l a z a
Reso r t
A g r e e m e n t s ( "
La ")
sh
11
h a v e
the
m e a n i n g s
scribed
to
hem
n
the
x i s t i n g ,
a p p l i c .
lble
d o c u m e n t s . "
A g e n c y
m e a n s , as
a p p r o p r i a t e ,
the
g e n c y
or
theity
o
o t h ,
as
the
a s e
may
be
F
g e n c v
and
w n e r
in
their
d e s i r e
to
aintain
a n d f u l f i l l
their
commitmcnt
to
pro-
vde
he
frican
A m e r i c a n
o m l 1 l u n i t y
wth
p p o r t u n i t i e s
in
he
ospi ta l i ty
industry,
ae
illing
to
a m e n d
the
o y a l
Pam
Crowne
Plaza
a g r e c m e n t s
subect
to
the
otel'
s
ontinuing
c o m p l ia n c e
with
the C o n v e n t i o n
Center
-
8/15/2019 LTC 240-2003 (1)
6/77
ownerand
its slIccessors
and
a s s i g n s
make
availabe Hotel
facilities
and
services
for
support
of
the
Convention Center
events
and
to undertake
joint
marketi
ng
efforts.
1ACK RENT
AND
REAL
ESTATE
T A X ES:
1
1
a c k Rent
Prior
To
he
Hotel O p e n i n g
D a t e .
RDP
and
the Agency
agree
than a v o i d a b l e d e l a y s
alributed
to
the
e n v i r o n m e n t a l
and
r e c o n s t r u c t i o n
d e l a y s
o c c u l T e d prior
to
he
Holel O p e n i n g
Date
DP
h a s
p r e v i o u s l y paid
128,
37:
1.38
in
ack
R e n t
p r i o r
to
he
H o t e l
O p e n i n g
Date;
i.
e,
rom
October
312000o
M a y
14
0 0 2 ,
a n d
theg e n c y s h a l l retain said
a m o u n t in
full
s e t t l e m e n t
of
al
amounts
due
fo
Back
Ren for
the
per iod
pr ior
to
May
15,
2002.
A d d i t i o n a l l y ,
R DP
s h a l l pay
wthn
five(5)lays
f r o m
the
ast
e x e c u t i o no
thIS
LOI
any
ncl
al
pplicable
s a l e s
tax
clue a n d
owing
on
a id
a m o u n t
plus
any
i n t e r e s t
and
e n a l t y
assessed by
the
Sae
ol o r i d a a g a i n s t
the
Cty
and/
or the
Agency
fo
ai lu re
toay
a p p l i c a b l e
s a l e s
tax
on
a id amount
p r i o r tothe
Hotel
O p e n i n g
Date.
1.2
Clark
C r e d i t . Subect
to
th e
c o n d i t i o n s se
fort
in
ths
ection 1
2DP s h a l l
p a y
to
h e
Agency
an
m o u n t up
to$
140
000.
00 (
he"
Clark
Credit"')
plus
a p p l i c a b l e
s a l e s
tax w h e n ,
and
if,
it
ettles
its
r e s e n t
litigaion
wth
The
C l a r k
C o n s t r u c t i o n
G r o u p
s t y l e d
RDPRoyal PamHote,
P ,E
A.
S.
The
Cak
o n s t r u c t i o n
Group,
nc. vs .
A r q u i t e c t o n i c a I n t e r n a t i o n a l
C o r p . ,
E
A.,
U
S
i s t r i c t C o u r t , S o u t h e m
District
o
lorida,
Ca s e
No.
01
1 3 0 - CIV-
M i d d l e b r o o k s ( "
Clark
L i t i g a t i o n " ' )
o
if
it
ob ta ins
ainal
non-
a p p e a l a b l e j u d g m e n t
inthelark L i t i g a t i o n .
RDPhall
pay
ths
mount
tohegency
within
ten(
0)
days
oits
receipt of f u n d s from,
and
to
h e
e x t e n t , either
thee t t l e m e n t
o
he
u d g m e n t
p r o v i d e s
e x c e s s
f u n d s
ate
D P paysits
t t o rney s '
fees
and
o s t s
forthelark L i t i g a t i o n . A r t i c l e4f
thee a s e
e n t i t l e d
Lae
h a r g e s ' s h a l l
not
a p p l y
to the
payment
o
the
l a r k
C r e d i t . Thep p l i c a t i o n o
he Cark
C r e d i t
s h a l l
bereated
Bt tn i \
IRen
w h i c h
s h a l l be
due
ony
ifthe
o n d i t i o n s
set
forth
in
this
S e c t i o n
are
me
and
hen
o n l y
to
h a t
e x t e n t .
t2qcJ.
Any
m o u n t s
pado
the
g e n c y u n d e r t h i s
S e c t i o n 1.2h a l l
no
apply
to
he
eght
p e r c e n t (
8%
e t u r n
c a l c u l a t i o nas
a
c o m p o n e n t o
theu r c h a s e Price
as
efined inection 36.
(ii)
ofthe
e a s e (the "
Retum"). h is
p r o v i s i o n
s h a l l
s u r v i v e
th e
p a y m e n t
o
the
u r c h a s e
Price.1
BackRent
After
The
H o t e l O p e n i n g
Date. BaseRen
n d
A d d i t i o n a l
Rent
elue,
plus
a p p l i c a b l e
sales
tax,
from
the
eriod o
May
15
002
to
May
15003 {'"
o st O p e n i n g
Back
ent")
shall
be e f e r r e d
and payable
over
the
ten(
0)
ea r
period
c o m m e n c i n g
ine a s e
Year
5nd
ending
in
eas e
Year
14.
1
4eal
E s t a t e
T a x e s .
The
parties
a c k n o w l e d g e t h a t
the
2002e a l
estate t a x e s
on the
I m p r o v e m e n t s
are u n p a i d
and
thas a i d t a x e s ae
eing a p p e a l e d .
-
8/15/2019 LTC 240-2003 (1)
7/77
taxes
are
due
on
real
estate
t,
lxes
which
were
the
respons ib i l i t y
of
RDP
prior
to
the
date
of
the
execution
of
this
LOl,
RDP
shall
pay
such
taxes,
penalties
anel
penalty
interest
prior
to
the
cxccution
Oflhc
C l o s i n g
Documents.
2
UTUIU:
RENTAL:
A d d i t i o n a l
R c n t
and
n c e n t i v c
Rent.
pus
p p l i c a b l c
sales
lax.
lu e
in
Lease
Years
2
h r o u g h
5
h a l l
he
cferred
a n d
p a y a b l e
over
the
en(
0)
year
penoel
c o m m e n c i n g
in
e a s e
Ycar
6
nd
n d i n g
in
Lease
e a r
15.
Oher
han
as
tated
in
h e
p r e c e d i n g
s e n t e n c e .
RDP
sha
o n t i n u e
to
pay
ase
Rent,
A d d i t i o n a l
Rent,
and
Incentive
Rent (
plus
al
applicable
saes
a x e s
on
u c h
non-
d e f e r r e d
p a y m e n t s
o
ame)
as
well
as
all
ohe
e n t a l
f rom
the
dae
f
e x e c u t i o n
o
hiS
LO
u r s u a n t
to
the
tem
and
conclilions
of
the
e a s e .
3
U R C H A S E
PRCE
3
1
e c l a r a t i o n
o
o v e n a n t s
a n d
Rest r ic t i ons .
T h e
D e c l a r a t i o n
o
C o v e n a n t s
and
e s t r i c t i o n s
shal l
be
m e n d e d
to
p r o v i d e
t h a t
upon
a ymen t
o
h e
Purchase
P r i c e
in
ull.
the
o l l o w i n g
c h a n g e s
sha
be
effective,
but
that
said
D e c l a r a t i o n
s h a l l
not
o therwise
be
a m e n d e d ,
mod
fied
or
changed:
I)
wth
respect
to
the
Shorecrest
L a n d
only,
S e c t i o n
2
2
h a l l
no
longer
apply.
2
ith
r e s p e c t
to
oth
the
R P
L a n d
a n d
the
horecrest
Land,
Section
3
sha
no
o n g e r
a p p l y
and
if,
s
a
esult
t he reof ,
then
a p p l i c a b l e
z o n i
ng
r d i n a n c e s ,
su ch
as
the
c u r r e n t s e c t i o n
118-
5
he
i a m i
Beach
o d e ,
r e q u i r e
a
o v e n a n t
in
lieu
o
unty
o
t i t l e ,
RDP
shall
cause
such
a
ovenant
to
e
recorded
as
to
aid
parcels.
3
o n v e n t i o n
Center
A
e e m e n t .
The
C o n v e n t i o n
Center
A g r e e -
m e n t
sha
be
m e n d e d
to
prov ide
tha,
upon
p a y m e n t
of
the
u r c h a s e
Price
in
full,
he"
350
r o o m s
per
d a y
r e q u i r e m e n t
stated
in
he
Room
l o c k
definition
shall
be
e d u c e d
to
wo
h u n d r e d
fifty
seven (
257
o o m s
pe
day
In
ll
other
r e s p e c t s ,
the
e f i n i t i o n
o
o o m
Block
a n d
the
e m a i n d e r
o
the
Convention
C e n t e r
A g r e e m e n t
sha l l
remain
u n c h a n g e d
e x c e p t
as
r o v i d e d
in
a r a g r a p h
18.
17
o
his
LO.
3
3
me
for
Pavment
in
ull.
T h e
o u t s i d e
date
for
ful
payment
o
he
P u r c h a s e
Price
hall
be
he
F i x e d
E x p i r a t i o n
D a t e
rather
than
Lease
Year
25 a s
p r e s e n t l y
provided
for
in
he
Lease.
All
Lease
e r m s (
such
as
hose
e l a t i n g
10
Rental
inflation
i n c r e a s e s ,
b y
-
8/15/2019 LTC 240-2003 (1)
8/77
4
E F I N A N C I N G :
The
e f i n a n c i n g
Times
s t a t e d
in
e c t i o n
J
I.
13(
a)
o
he
L e a s e
sh
11I
e
c h a n g e d
to
on
or
p r i o r
to
h e
b e g i n n i n g
o
the
fifth (
51")
year
ater
the
Hotel
O p e n i n g
Date ("
irst
R e f i n ,
lllcing"');
n
o
prior
to
en (
10
e a r s a f t e r the
closing
o
the
irst
R e f in a n c i n g ( "
Second
R e f i n a n c i n g " )
and
hen
v e r y
t e n t h (
lOh)
n n i v e r s a r y
o
the
Second
Rein
lllcing
t h e r e a f t e r ;
prov ided
h o w e v e r ,
t h a t
the
maturity
d a t e
o
any
e f i n a n c i n g
tha
extends
beyond
he
next
r e q u i r e d
r e f i n a n c i n g
will
not
have
to
be
repaid
prior
to
its
a t u r i t y
p r o v i d e d
said
a t u r i t y
date
is
o
ater
than
t w e n t y (
20)
years
fromthe
ast
cfin,
lllcing;
prov ided
further
h o w e v e r ,
tha
w h e n
T e n a n t
r e f i n a n c e s
the
B a l a n c e
o
ts
e b t ,
the
e t
R e f i n a n c i n g
o c e e d s ,
a s
d e f i n e d
in
S e c t i o n
1
I.
3
)
of
he
Lease
h a l l
be
applied
to
th e
e x t e n t
avai lable
in
the
f o l l o w i n g
order:
A
To
w n e r
to
ay
th e
d e f e r r e d
R e n t a l
d e s c r i b e d
in
aragnlphs
1
3
nd
2
f
ths
LO;
B
Fifty
e r c e n t (
50%)
to
wner
to
ay
the
e t u l l l
a p p l i c a b l e
as
part
o
th e
Purcha sc
P r i c e
accrued
and
unpaid
to
dae
nd
fifty
percent (
0%
o
T e n a n t
to
repay
Town
P a r k
Hotel
C o r p o r a t i o n ,
as
o t e l
M a n a g e r
T o w n
P a r k ) ,
fo
o s t f
O V e l T l l l l s *
paid
by
o w n
Park (
estimated
a$
m i l l i o n ) . ~
C.
To
Owner
to
ay
he
balance
of
the
R e t u r n
a p p l i c a b l e
as
a rt
o
he
P u r c h a s e
P r i c e
accrued
and
unpaid
to
ate;
D
ifty
percent (
0 % )
tow n e r
to
pay
he
P u r c h a s e
Price(
which
i n c l u d e s
the
Reum
for
O w n e r '
s
nterest
in
he
Premises;
n d
fifty
p e r c e n t
50%
irst
to
n y
a m o u n t s
then
still
due
Town
Park
as
described
in
e c t i o n
4B
a b o v e ,
a nd
then
o
T e n a n t
for
Tenant
C o s t
O v e l T u n s *
pad
by
enant
estimated
a $
2
i l l i o n ) ;
E
o
Owner
to
pa y
the
a l a n c e
of
the
Purchase P r i c e (
w h i c h
i n c l u d e s
the
etum)
fo
w n e r '
s
n t e r e s t
in
h e
Premises;
a n d
F.
To
T e n a n t
if
ny
unds
r e m a i n
ate
a y i n g
in
f u l l
the
a m o u n t s
in
paragraphs
4A-
4E
above.
Any
os t
Over runs
wIll
b e
c a l c u l a t e d
n et
o(
l)
any
Cak
e t t l e m e n t
p r o c e e d s
pad
to
e n a n t ,
drectly
or
indirectly b u t (
a
ne t
of
attorneys
and
o th e r
pro fess ional
f e e s
and
court
cos ts
n o t
r e f l e c t e d
in
Tenant'
s
C o s t
OVelTl1l l
c a l c u l a t i o n
a n d
no
a d v a n c e d
by
Town
Pak
and (
b
the
ark
C r e d i t
to
the
extent
pad
to
w n e r ,
and
2
any
rior
o v e r r u n
o
q u i t y
r e p a y m e n t s
f rom
the
wo (
2
p r i o r
future
a d v a n c e s
paid
to
enant.
o s t
OVelTllllS
w i l l
be
s u b j e c t
to
a
ull
a c c o u n t i n g
a n d
review
-
8/15/2019 LTC 240-2003 (1)
9/77
S .
TENANT
S IU~
PA
Y \E N T
OF
TI-
E
RETliRN:
Beginn ing
in
Lease
Year
25,
and
every
ten(
10
ears
t h e r e a f t e r .
T e n a n t
shal
pay
Owner
any
accrued
ald
n p a i d
p o r t i o n
o
he
Return
as
f o l l o w s :
A
n y
and
al
n p a i d
p o r t i o n s
o
he
e t u r n
accrued
in
Lease
Y e a r s
1
5
will
be
m o r t i z e d
and
a id
over
ten(
1 0 )
y e a r s
in
e a s e
Years
26
5.
B
Any
and
ll
unpaid
p o r t i o n s
o
he
Reurn
c c r u e d
in
s u b s e q u e n t
ten(
10)
Lease
Year
n c r e m e n t s (
i.
,
Lease
Y e a r s
26-
35
6-
45,
6 -
55,
56
65
6-
75,
76-
85,
86-
95,
n d
9 5-
Fixed
E x p i r a t i o n
Date)
wll
be
m o r t i z e d
and
aid
over
ten (
10
e a r s
in
the
respective s u c c e e d i n g
tell(
JO
ear
L e a s e
Term
p e r i o d s (
i.
,
ease
Years
36-
45,
46
5,
56-
65,
66-
75
6-
85,
86-
95
and
95 -
Fxed
E x p i r a t i o n
D a t e ,
r e s p e c t i v e l y )
and
wll
b e
r e f e l T e d
to
as
the"
m o r t i z e d
Retum".
C
o m m e n c i n g
011
Lease
Y e a r
35
and
fo
each
Lea se
Year
t h e r e a f t e r ,
to
he
x t e n t
tha
the
Base
R e n t ,
Additional
R e n t
and
the"
Amortized
Retum",
in
g g r e g a t e ,
payabe
in
a c h
Lease
Year
is
ess
han$
00,
00,
as
adjusted
fo
i n f l a t i o n (
t h e
R e n t a l
Cap"),
hen
in
uch
L e a s e
Year,
Tenant
shall
pay
the
d i f f e r e n c e
b e t w e e n
the"
ental
Cap"
ess
the
g g r e g a t e
o
as e
Rent,
ddit ional
R e n t
and
he"
mortized
R e t u m
fo r
sad
e a s e
Year,
as
a n d a t o r y
incentive
r e n t (
the "
M a n d a t o r y
I n c e n t i v e
Rent").
If
n
any
u c h L e a s e
Yea,
on
or
f t e r
Lease
Y e a r
35,
Incentive
R e n t
is
ayable,
such
I n c e n t i v e
Rent
sha
be
due
and
a y a b l e
even
if
u ch
p a y m e n t
results
in
a y m e n t
tha
Lease
Year
inx cess
o
he
Rental
Cap
ental
Cap"is
efined
as
t h e $
800,
0 0
a m o u n t
which
sha
be
i n c r e a s e d
a
the
e g i n n i n g
o
h e t e n t h (
10
11)
e a s e
Year,
a n d
ever
five(
5)
years
t h e r e a f t e r ,
in
th e
p r o p o r t i o n
as
he
p e r c e n t a g e
increase
in
the
GDP
I m p l i c i t
P r i c e
Deflator
Index
f r o m
the
H o t e l O p e n i n g
Dat e .
6.
S A L E
O
THE
O T E L :
In
ddition
to
the
t h e r
p r o v i s i o n s
in
he
Lease
regarding
th e
Sale
o
the
Hote.
p o n the
Sae
o
the
Hotel
the
o l lowing
s h a l l
occur:
A.
All
deferred
and
oc c r u e d
andn p a i d
R e n t a l
and
he
Reun
shal
be
ad
in
ull;
and
B
-
8/15/2019 LTC 240-2003 (1)
10/77
7 .
J
e c i t a l s
B-
E
and
a r a g r a p h
1
o
the
m e n d m e n t s
r oposed
by
T e n a n t
in
he
A m e n d m e n t
Re
o w n
Pak
o
A g r e e m e n t
of
Lease
at.
ched
hereo
a n d
incorpora ted
by
e f e r e n c c
hercin
as
x h i b i t "
0
h a l l
be
included
in
the
Ground
Lease
A m e n d m e n t ;
provided
h o w e v e r ,
tha
same
s h a l l
t e r m i n a t e
u p o n
the
Sale
of
the
HOlel
or
the
a r l i e r
t o
occu
of (
i)
e r m i n a t io n
o
he-
oe
M a n a g e m e n t
A g r e e m e n t
betwecn
ROP
and
T o w n
Park
o
i)
ifteen (
15)
cars
from
H o t e l
Opening
Date.
7
Section
16 .
7
e
ofthe
Lease
will
he
e l e t e d
in
ts
n t i r e t y .
7
3
ny
p a y m e n t s
or
costs
n
c o n n e c t i o n
wth
h e "
Note"
and/
or
Loan",
s
defined
in
the
A m e n d m e n t
Re
Town
Park
to
A g r e c m e n t
o
e a s e .
wll
o t
be
c o n s i d e r e d
Operat ing
Expenses"
as
h a t
term
is
e f i n e d
in
he
L e a s e .
7
4
enant
a I T < .
I I 1 t s
a n d
r e p r e s e n t s
to
Owner
a n d
the
ty
that
R e c i t a l s
B
th e
amendments
proposed
by
Tenant
are
t rue
and
C O I T e c t
and
are
a
a t e r i a l
i n d u c e m e n t
fo
wner
and
the
C i t y
to
include
t h e s e
a m e n d m e n t s
in
he
Ground
Lease
A m e n d m e n t .
8
F &
E
R E S E R V E :
8
1
Hotel
FF&
E
eserve.
The
p e r c e n t a g e s
stated
in
Section
16.
5
a )
o
the
Leaseit h
respect
to
the
Hoe
shal
be
changed
as
f o l l o w s :
Lease
Year
J
2
3
5
and
h e r e a f t e r
P e r c e n t a g e s
o
oe
R e v e n u e s
0%
%
2%
%
4%
.
H O R E C R E S T
R E S T A U R A N T :
9
1
h a n g e s
to
Article
33
o
he
Lease
r t i c l e
3 3
o
the
Lease
shall
be
a m e n d e d
to
e l e t e
t h e r e f r o m
subsections (
a
through (
I)
nd
to
e r m i t
in
h e
area
o r i g i n a l l y
c o n t e m p l a t e d
fo
he
R e s t a u r a n t (
the"
pace")
the
o n s t r u c t i o n
of
pa,
d d i t i o n a l
m e e t i n g
space
o
ther
i m p r o v e m e n t s
for
anye a s o n a b l e
h o t e l
p u r p o s e
tha
wll
e n e f i t
the
p e r a t i o n
of
the
Hote;
rovided,
h o w e v e r ,
that
s u ch
u s e s
are
e r m i s s i b l e
under
all
a p p l i c a b l e
oca
law
and
z o n i n g
o r d i n a n c e s .
T h e
szes
nd
d i m e n s i o n s
of
a/
such
a c i l i t i e s
wthn
the
Space
sha
be
as
easonably
d e t e r m i n e d
by
O P
and
h e
O p e r a t o r s (
defined
below)
of
the
r e s p e c t i v e
faci l i t ies .
S u b s e c t i o n (
g
h a l l
be
m e n d e d
to
e l a t e
to <
ny
O p e r a t o r .
The
m e n d e d
Lease
shal
provide
t h a t
such
a c i l i t i e s
s h a l l
n o t
be
s u b j e c t
to
ny
-
8/15/2019 LTC 240-2003 (1)
11/77
9
2
ees
and
Costs.
R D P
shall
be
o l e l y
r e s p o n s i b l e
for,
and
h a l l
p a y ,
a
its
sole
cost
and
expense,
any
a r k i n g
i m p a c t
fees
and
any
other
o s t s ,
i n c l u d i n g
bu
ot
mted
to
c o n c u r r e n c y
rces,
p e r m i t
fees
and
the
l i k e
r e s u l t l l 1 g
f rom the
new
l a c i l i t i e s .
9
h e
Space
as
a
C o n d o m i n i u m
Unit.
f
the
p a c e
is
located
on
he
S h o r e c r e s
Land,
and
if
RDP
l e c t s
to
reate
a
o n d o m i n i u m
unit
for
the
pace
as
permi t ted
u n d e r
the
terms
o
he
Lease.
R D P
sha
a u s e
the
e c l a r a t i o n
o
C o n d o m i n i u m
to
o n t a i n
p r o v i s i o n s
that (
i)
he
a le
or
lease
o
the
p a c e
unt
h a l l
be
subject
to
the
g e n c y '
s
a p p r o v a l
and (
ii)
he
p a c e
unt
s h a l l
be
p e r a t e d
in
a c c o r d a n c e
wth
the
u a l i t y
s l a n d a n J s
r e f e r r e d
to
n
par,
lgraph
9
o
hs
LOI.
9
Non-
D i s t u r b a n c e
A g r e e m e n t .
Upon
reques
o f
RDP,
the
Agency
h a l l
execute
a
on -
d i s t u r b a n c e
a g r e e m e n t
in
avor
of
a
hrd
arty
Space
operator
an "
O p e r a t o r ' )
containing
t e r m s
g e n e r a l l y
found
in
such
greements
in
form
and
o n t e n t
r e a s o n a b l y
a c c e p t a b l e
to
the
O p e r a t o r
a n d
thegency,
bu t
the
term
o
h i c h
sha
be
no
o n g e r
t h a n
the
earlier
to
o c c u r
o(
i)
he
xpration
of
th e
thrd
party
Space
agreement
or (
ii)
wenty (
20)
years.
9.
5
p e r a t o r
Agreement .
In
the
event
the
p a c e is
managed
o
p e r a t e d
by
an
O p e r a t o r
pursuant
to
n
agreement
b e t w e e n
R D P
and
perator,
sa id
a g r e e m e n t
shal
be
deemed
to
be
u b l e a s e
u n d e r
th e
L e a s e
r e q u i r i n g
Agency
a p p r o v a l
unde
S e c t i o n
1O
2
a(
v
f
the
Lease,
he
a g r e e m e n t
sha
o n t a i n
q u a l i t y
s t a n d a r d s
pertaining
to
h e
operation
a n d
p h y s i c a l
condi t ion
o
he
S p a c e
whch
s h a l l
be
en fo rced
by
D P ,
which
s t a n d a r d s
and
h e
s e l e c t i o n
o
the
perator
shal
be
u b j e c t
to
p p r o v a l
by
h e
Agency.
10.
X I S T I N G
D I S P U T E D
I T E M S :
1 0 .
1
st
O
Disputed
I t e m s .
Exhbt "
E
n t i t l e d "
L i s t
of
D i s p u t e d
I t e m s
is
a t t a c h e d
hereto
and
n c o r p o r a t e d
by
r e f e r e n c e
h e r e i n
as
a
is
f th e
cur-
rent
d i s p u t e d
i t e m s
under
h e
L e a s e
and
other
related
d o c u m e n t s
as
o
he
date
o
ast
e x e c u t i o n
of
this
LOI ("
RDP
I t e m s ) .
10.
2
Curing
o
RDP
I t e m s .
RDP
s h a l l
cue
ll
o
the
RDP
I t e m s
on
o
efore
t h i r t y (
30
a y s
from
he
ate
o
xecution
o
thsOI
except
fo
h o s e
items
listed
in
xhibit "
C
attached
hereto
and
p e c i f i c a l l y
i n c o r p o r a t e d
herein.
11
E L E A S E S
OF
ALL
C L A I M S
BY
Imp.
THE
AGENCY
AND
THE
CITY:
1
1
1
D P
C l a i m s .
RDP
sha
waive
a n d
r e l e a s e
any
and
all
alleged
delay
c l a i m s ,
e n v i r o n m e n t a l
d a m a g e
c l a im s
a n d
any
o t h e r
clams
of
any
kind
whatsoever
against
the
Cty
n d /
or
the
Agency
-
8/15/2019 LTC 240-2003 (1)
12/77
1 l.
2
g e n c y
and
Ctv
C l a i m s .
The
g c n c y
a n d
the
Cty
shall
waive and
elease
ther
w n e r '
s
xcess
o n t r i b u t i o n
claim
and
any
othcr
c l a i m s
of .
IIlY
knd
w h a t s o e v e r
against
RDP
u p o n
the
x c c u t i o n
of
thc
Cosng
Documents
11
3
c k n o w l e d g c m e n t .
P r o v i d e d
t h a t
alo
the
t e r m s
and
c o n d i t i o n s o
his
LO
h a v e
b e e n
satisfied
by
al
a r t i e s ,
the
a m e n d m e n tto
the
e a s e
sha c o n t a i n
a
r i t t e n
ac
k n o w l e d g m e n t tha
al
alleged
claims
and
ther
alleged
defaults
have
een c u r e d ,
settled
and
or
waved
ha
all
c o n t r o v e r s i e s
b e t w e e n
the
parties
h a v e
been s e t t l e d
andh a t
th e
Lease
is
n
o o d
s t a n d i n g
and
in
ful
foce
a n d e f f e c t .
12
G A R A G E
E A S E M E : '
IIT
AG R EEM ENT :
12
1
The
a r a g e
Easement
A g r e e m e n t
sha
be a m e n d e d
as
p p r o p r i a t e
to
rovide
fo r
and
i n c o r p o r a t e
the
o l l o w i n g
c o n c e p t s :
A
The
a r t i e s
shall
have
o
f u r t h e r
o b l i g a t i o n
for
the
a y m e n to
se
Fees
and
Faclity
sage
P a y m e n t s
and
no
u c h p a y m e n t s
are due
e i t h e r
p a r t y
as
f
the
date
o f
the
execution
o
ths
O I.
B
he
words " a n e l
a p p r o v e d
by
G r a n t e e "
III
S e c t i o n5
a)
shall
be
1e
I
ee.
C
D P shall
h a v e
no
f f ir m a t i v e
o b l i g a t i o n
to
use
he
Garage
fo r
its
o t e l guests
a n d
employees.
D
e c t i o n
9
a
sha
bee l e t e d
and
he
G a r a g e
Easement
Agreement
sha
be
e m o v e d
from
a n y
c r o s s
default
prov i s i ons
contained
in
any
ohe
Hotel
related
d o c u m e n t s .
E
term "
sef
park
a t e shall
mean (
i)
he r a t e s
charged
to
he
general
p u b l i c a
the
G a r a g e
facil i ty
an d
i d e n t i f i e d
as
them a x i m u m
daily
r a t e
or (
ii)
he
valet
r a t e c h a r g e d
b y
the
R o y a l
Pamo t e l
a
RDP'
s
election.
12
2
h e
r e m a i n d e r
o
he
Garage
E a s e m e n t
A g r e e m e n t
sha
r e m a i n
in
ful
o r c e
and
efec.
2.
3
In
he
even t
t h a t
RDP
creates
a
hotel
c o n d o m i n i u m
on
the
S h o r e c r e s t
Land,
then,
in
hat
event,
the
parties
tohis
LO
agree
tha
there are no
rghs
r
a g r e e m e n t s
unde
the
Gaage
a s e m e n t
Agreemcnt
whch
wll
be
r a n s f e l T e d
to
the
Shor ec r es t
Hotel
C o n d o m i n i u m
unit
o w n e r s .
13
O N C E S S I O N
A G R E E M E N T l l N D E R
THE
L E A S E :
13.
1
ee
Payment.
RDP
sha
a y
the
C o n c e s s i o n
Fees
due
nd
-
8/15/2019 LTC 240-2003 (1)
13/77
orbefore
five (
5)
ays after
the
las
x e c u t i o n
o
this
LO .
The
anies
arc
nonow
w a r e
o
any
such
u t s t a n d i n g
fees13
2
i c e n s e
Fces.
RDP
s h a l l
p a y o r
c a u s e
to
be
pad
the
omp o n d i n g
o c c u p a t i o n a l license
feein
connection
wth
the
b e a c h f r o n t
c o n c e s s i o n
operatIon
fo
the
o t e l . 13.
3h o r e c r e s t
C o n d o m i n i u m .
In
h e
event
thaDP c r e a t e s
a
otel
c o n d o m i n i u m
o n
the Shorecrest
Land,
then,
in
hat
even,
R D P
sha
pay(
oause
h e
S h o r e c r e s t
h o t e l
condominium
a s s o c i a t i o n
to
pay
he
cOITesponcling
a p p l i c a b l e
beach
c o n c e s s i o n
fees
o n s i s t e n t
with
those
ees
h a r g e d other
u p l a n d
privae
owners
o
hoe
and
o n d o m i n i u m
p r o p e r t i e s .
14
LARK
C O N S T I W C T l O N
L I T I G A T I O N L I E N S :
Thexisting
Cark
i t i g a t i o n liens and
future
liens,
i n c l u d i n g
liens
f i l e d
which
may
be
filed
by
s u b c o n t r a c t o r s ,
r e l a t i n g
solely
to
he
Cak
Litigation,ifany, g a i n s t the
l e a s e h o l d
interest
oD P
inhe
Lease s h a l l
nobe
c o n s i d e r e d
an E v e n to
Deault
u n d e r
any
of
theo t e l
D o c u m e n t s
so
l o n g
as
RDP
di g e n t l y
and
n
gooda i t h
con t i nu es
to
prosecute
itsl a im s
to
resolve
al
ssuesunder
the
Cak
i t igat ion;
p r o v i d e d
however,
that n o t h i n g
c o n t a i n e d
heren
h a l l
reieve
RDP
otse s p o n s i b i l i t y
to
e mo v e
these
ensn d
to
e s o l v e those
m a t t e r s
contained in E x h i b i t "
e
ether
by
resolution
o he
Clark
L i t i g a t i o n
or
t h e r w i s e .
15. A T T O R N E Y S
F E E S :
E a c h
party
s h a l l
bea r itsown
legal
fees
reaing
to
hisLOI andthe
l o s i n g
D o c u m e n t s
e x c e p t that RDP s h a l l
r e i m b u r s e
the
g e n c y
at
the
time
o
h e
e x e c u t i o n
date
of
th e C l o s i n g
D o c u m e n t s
itse g a l
fees
up
o t h e
first $
60,
00
c h a r g e d
byl o o m &
M insk e r ,
P
L,
a s e d upon
an
o u r l y
raef $
250
00
Agency
shall p r o v i d e
to
DP d e t a i
led
t a te m e n t s
fo
r o f e s s i o n a l
sevces
showngtmeand
ct iv i ty
on
aaily
basis
s u p p o r t i n g
sad
e i m b u r s e m e n t .
16
D D I T I O N A L
T E R M S .
C O N D I T I O N S
AND
S S U E S N OT
COVEREDIN
HIS
LO:
B e c a u s e
ohe
c o m p l e x
nature of
the
d o c u m e n t s
i n v o l v e d
a n d
the
h a n g e s
b e i n g
c o n s i d e r e d
as
a
r e s u l t
o
hi s
LOr,RDPheg e n c y and
he
Ctyshall have
h e
r i g h t
toaise
addit ional
te r ms
and
condtions
and
i s s u e s
no
o v e r e d
in
his
LO I
a n d
which
are
n o t
i n c o n s i s t e n t withthe
erms
oths
LO
asthe
c t u a l draft-
ing
o
the
o c u m e n t s
occurs and
o n t i n u e s .
17
SPECIAL
INDE\
N I F I C A T I O N
BY
RDP:
R DP
shall
i n d e m n i f y
a n d
hod
harmless
and
h a l l
p r o v i d e
defense
for
the
A g e n c y
and
he
City
by counsel
r e a s o n a b l y
a c c e p t a b l e
to the
Agency
and
he
Cty
e g a r d i n g
any
and
ll
m a t t e r s
arising
out
of,
oe l a t i n g
d i r e c t l y
or
indirectly
to
any
-
8/15/2019 LTC 240-2003 (1)
14/77
for
those
challenges
a n s i n g
out
of
the
Clark
Credit,
the
payment
and
parti,
d
aiver
of
Back
Rent
and
the
setllement
of
alleged
delay
claims
attributed
10
the
e n v i r o n m e n t a l
d a m a g e
and
r e c o l l s t r u c t i o n
delays
r c f e l T e d
to
in
a r a g r a p h
1
1
o
hs
LOI.
18.
O M P L E T I O N
G U A R A N T E E :
18.
he
A g e n c y
anc
the
C i t y
acknowledge
tha
the
u a r a n t o r
u n d e r
the
o m p l e t i o n
G u a r a n t e e
g i v e n
to
h e
Agency
and
the
it y
shall
be
e r m i n a t e d
u p o n
d e l i v e r y
to
the
Agency
a n d
the
Cty
o
h e
certi f icate
b y
th e
A r c h i t e c t
described
in
e c t i o n
2
)
o
sad
G u a r a n t e e
and
i n a l
CO
s
i s s u e d
as
c o n t e m p l a t e d
by
e c t i o n
2
i
i)
s<
lid
u a r a n t e e .
In
al
ther
r e s p e c t s .
Guarantor
has
complied
wth
its
o b l i g a t i o n s
uncleI'
the
Guarantee.
h e
C o m p l e t i o n
D e a d l i n e
is
olled
unt i l
s a i d
c e r t i f i c a t e
is
deivered
nd
the
nal
CO
s
ae
ssued
19.
E C L A R A T I O N
OF
O V E N A N T S
AN D
R E S T R I C T I O N S :
19
1
h e
parties
a c k n o w l e d g e
t h a t
the
paymen t
in
ull
by
DP
o
the
urchase
Price
to
he
gency
sha
not
te rm inate
the
Declaration.
20.
CLERICAL
CHANGES
TO
HE
L E A S E
AND
RELA
TED
X I S T .
IN G
D O C U M E N T S :
Non
u b s t a n t i v e
clerica
c h a n g e s
such
as
C U I T e n t
mai l ing
addresses
in
h e
n o t i c e
p r o v i s i o n s
a n d
g r a m m a t i c a l
en
os
in
the
oe
D o c u m e n t s
sha
be
cor-
r e c t e d
in
the
l o s i n g
Documents.
21.
G E N E R A L :
21
1
D e f i n i t i v e
A g r e e m e n t s .
Upon
x e c u t i o n
o
this
LO
y
DP,
the
approval
of
the
t e rms
h e r e o f
by
the
p p r o p r i a t e
A g e n c y
and
Cty
g o v e r n i n g
bodies
and
he
x e c u t i o n
o
his
LO
by
the
p p r o p r i a t e
Agency
a n d
C i t y
officials,
the
l o s i n g
D o c u m e n t s
shall
b e
drafted.
The
A g e n c y
shall
submit
first
drafts
o
l
such
d o c u m e n t s
to
Tenant
whn
i
fteen(
15
ays
fter
such
p p r o v a l .
Th e
C l o s i n g
D o c u m e n t s
w i l l
contain,
among
other
t h i n g s ,
r e p r e s e n t a t i o n s ,
w
ITanties,
condtions,
c o v e n a n t s
and
n d e m n i t i e s
and
the
like
y p i c a l
in
i m i l a r
t r a n s a c t i o n s ,
subject
to
the
terms
e r e o f .
F u r t h e r m o r e ,
the
a r t i e s
to
this
L O r
r e c o g n i z e
that
due
to
he
com plex i ty
of
the
s t r u c t u r e
o
hese
r a n s a c t i o n s ,
not
al
o
he
a j o r
ega
i ssues
h a v e
been
o v e r e d
by
h is
La .
The
o n s u m m a t i o n
o
the
t ransact ions
c o n t e m p l a t e d
hereby
is
ondi t ioned
u p o n
the
e g o t i a t i o n
and
x e c u t i o n
of
the
C l o s i n g
D o c u m e n t s
with
t e r m s ,
prov is ions
a n d
c o n d i t i o n s
mutually
a c c e p t a b l e
to
DP,
the
Agency
n d
the
Cty
as
e ll
as
the
b t a i n i n g
o
al
e c e s s a r y
ender
a p p r o v a l s
and
h e
s a t i s f a c t i o n
o
the
art ies
with
al
ther
a g r e e m e n t s
and
m a t t e r s
n e c e s s a r y
or
e s i r a b l e
wth
respect
to
the
r a n s a c t i o n s
co n t e m p la t e d
h e r e b y .
Th e
panics
shall
c o m p l y
with
al
a p p l i c a b l e
lall'
s
t a t u t e s ,
r e g u l a t i o n s
and
equ irem en t s
and
p e r f o r m a n c e
by
he
g e n c y ,
the
it y a nd
R D P
u n d e r
this
LO
and
the
losing
D o c u m e n t s
s h a l l
be
u b j e c t
thereto.
Th e
f o l l o w i n g
is
a
-
8/15/2019 LTC 240-2003 (1)
15/77
not
meant
to
be
inclusive
of ~1 1
required
agreement)
and
additional
agreements
shall
be
executeu
by
the
parties
to
this
LOI
as
rcquireu:
LIST
OF
AGREEMENTS
A.
GROUND
LEASE
AMENDMENT
B.
CONVENTION
CENTER
AGREEMENT
A \
ENDMENT
C.
DECLARATION
OF
COVENANTS
AND
RESTRICTIONS
AMENDMENT
D.
GARAGE
EASEMENT
AMENDMENT
E.
AGENCY
S
RELEASE OF
CLAIMS
F.
CITY
S
RELEASE
OF
CLAIMS
G.
RDP'
S
RELEASE
OF
CLAIMS
H.
SPECIAL
INDEMNIFICATION
BY
RDP
I.
TERMINA
TION
OF
COMPLETION
GUARANTY
1
UCC
INANCING
S T A T E M E N T S -
to
enew
lease
U C C - j'
s
as
a m e n d e d
by
r o u n d
Lease
A m e n d m e n t .
21
Ass
g n m e n t
by
Agencv.
In
the
vent
th e
Agency
c c a s e s
to
xist,
he
Closing
D o c u m e n t s
will
p r o v i d e
tha
th e
r i g h t s
granted
to
the
g e n c y
will
inureo
the
b e n e f i t
o
he
City
and
th e
Cty
ill
be
o u n d
to
perform
the
ohiga
ions
t h e r e i n .
21
3
Termination.
T h i s
LO
may
b e
t e r m i n a t e d
by
the
party
if
he
Closing
D o c u m e n t s
h a v e
nobeen
e x e c u t e d
by
sx (
6)
o n t h s
from
the
execution
date
of
this
LOI.
21
Non
i n d i n g .
E x c e p t
fo
he
ast
sentence
in
a r a g r a p h
I.
e r e i n a b o v e and
p a r a g r a p h
21.
11
h e r e i n b e l o w
w h i c h
the
parties
to
hs
LOI
intend
to
be
i n d i n g , (
i)
o
party
shall
h a v e
any
legally
binding
o b l i g a t i o n
toany
other
paty
nder
ths
L O I
u n t i l
such
time
as
th e
C l o s i n g
D o c u m e n t s
are
e x e c u t e d
by
al
parties
hereto;
and (
ji)
no
par ty
wll
have
a n y
liability
w h a t s o e v e r
under
t h i s
LO
to
ny
o t h e r p a r t y
for
fai lure
to
e r f o r m
in
c c o r d a n c e
with
this
LOI ,
if
ny
paty
ecides
to
t e r m i n a t e
this
LO
o
forany
o t h e r
reason
r e l a t e d
to
t h i s
LOI.
21.
5
A m e n d m e n t s .
Ths
L O I
may
be a m e n d e d
only by
a
w
ten
agree-
ment
e x e c u t e d
by
both
o
RDP
nd
the
Agency
21.
6
o v e r n i n g
Law
nd
V e n u e .
Ths
O I ,
the Clos ing
D o c u m e n t s
a n d
their
i n t e r p r e t a t i o n ,
v~
idity
and
e r f o r m a n c e ,
sha
be
g o v e r n e d
by
the
a w s
o
h e
State o
Florida,
both
s u b s t a n t i v e
and
e m e d i a l ,
w i t h o u t
r e g a r d
to
r i n c i p l e s
of c o n f l i c t
o
l a w s .
The
enue
for
any
litigation
arisng
ou
o
hs
LO
o r
-
8/15/2019 LTC 240-2003 (1)
16/77
Florida,
if
in
state
court,
and
the
U.
S.
District
Court,
Southern
District
of
Florida.f
in
federal
court.
21.
7"
I)
01"
O'
"
o "
o n s e n t .
Th e
use
o
he
tem "
p p r o v a l '
or
c o n s e n t
in
ths
O I
shal
a l w a y s
be
deemed
to
mean
r e a s o n a b /
e
pproval@
o
r e a s o n a b l e
consent@
except
where
specifically
p r o v i d e d
o t h e r w i s e .
21
8
Co un t e rp a r t s .
T h i s
LO
ay
be
x e c u t e d
in
o u n t e r p a r t s ~ l I l d
al
such
o u n t e r p a r t s ,
when
t.
ken
together,
sha
conSl i tu te
ths
LOr
21
9
e c o g n i z e d
M o r t g a g e e
C o n s e n t
Lete.
i l h i n
th i r ty (
30)
a y s
ater
h e
l a s t
e x e c u t i o n
of
ths
OI
a n d
a p p r o v a l
f
II
y
the
A g e n c y
anc
the
Cty
as
d e s c r i b e d
in
e c t i o n
21.
I,
enant
shal
provide
to
he
Agency
a
lele
rom
U n i o n
P l a n t e r s
Bank
wherein
sad
a n k
will
a c k n o w l e d g e
t h a t
it
a s
nu
m a t e r i a l
o b j e c t i o n
to
any
o
he
tem
o
ths
O I ,
but
which
may
C o n t a i n
r e a s o n a b l e
r e s e r v a t i o n s
a n d
q u a l i f i c a t i o n s
to
he
f f e c t
that
the
etter
isn
no
a y
b i n d i n g
on
a id
Bank
and
tha
he
Bank
has
he
rgh
to
p p r o v e
o
i s a p p r o v e
for
a n y
reason
the
proposed
a g r e e m e n t s
and
n s t r u m e n t s
descr
bed
in
e c t i o n
21.
1
b o v e .
21
0
u c c e s s o r s
and
s s i g n s .
Al
eferences
to
any
o
the
arties
to
this
LO
sha
include
their
p e r m i t t e d
s u c c e s s o r s
and
permitted
a s s i g n s .
21
11
t t o r n e y s '
F e e s .
In
the
v e n t
litigation
ar ises
olely
u n d e r
the
as t
sentence
in
p a r a g r a p h
1
1
e r e i n a b o v e ,
then
in
ha
event,
the
r e v a i l i n g
party
shall
be
entitled
to
r e c o v e r
its
a t t o r n e y s '
f e e s
and
court
c o s t s ,
i n c l u d i n g
those
i n v o l v i n g
appeals
and/
o
ost-
j u d g m e n t
p r o c e e d i n g s ,
if
ny.
21.
J
2
O I
In
ffect.
Ths
LO
sha
e m a i n
in
ffect
as
prov i
d e d
h e r e i n -
above
p r o v i d e d
tha
RDP
ha l l
m a i n t a i n
the
ease
and
reaed
x i s t i n g
d o c u m e n t s
in
ood
s t a n d i n g
a n d
free
o
n y
defaults (
h e
p a r t i e s
a g r e e i n g
that
the
s s u e s
cov-
re d
e l s e w h e r e
in
his
LO
s h a l l
no
be
eemed
d e f a u l t s
fo
u r p o s e s
of
this
para-
gaph
21
12)
u r i n g
the
e n d e n c y
o
ths
LO;
the
f a i l u r e
o
hich
s h a l l a u t o m a t i
c a l l y
result
in
ths
LO I
b e i n g
t e r m i n a t e d
and
o
no
u r t h e r
f o r c e
and
effect
o t h e r
t h a n
th e
specif ic
inding
pa<
lgraphs
as
p r o v i d e d
in
a r a g r a p h
21
o
h is
LO.
21.
13
Priv i
eged
Settlement
C o m m u n i c <
ltion.
This
L O I
is
a
pri
v i l e g e d
set t lement
c o m m u n i c a t i o n
e x c e p t
fo
the
pecific
b i n d i n g
p a r a g r a p h s
as
rovided in
paragraph
21
4
this
LO.
he
r e m a i n d e r
o
this
L O I
is
t r i c t l y
i n a d m i ss ib le
fo r
any
p u r p o s e
p u r s u a n t
to
ect ion
90.
08,
F l o r i d a
Statutes
an d
Rule
0 8 ,
Fedenll
Rules
o
v i d e n c e .
21.
4
S t a t e m e n t s
A g a i n s t
n t e r e s t .
Any
t a t e m e n t s
m a d e
by
any
arty
to
ths
LOI
c o n t a i n e d
in
ths
LOI
h a v e
b e e n
made
o l e l y
for
h e
p u r p o s e
o
resolv ing
a]
matters
e x i s t i n g b e t w e e n
the
a r t i e s
to
his
LO .
Al
parties
to
ths
OI
r e c o g -
-
8/15/2019 LTC 240-2003 (1)
17/77
LOI
r ecogn i ze
and
agree
that
any
sLlch
statements
may
not
be
correct
as
applied
to
the
Clark
Litigation.
21
5
e c o r d i n g
F e e s
and
the
Like.
R DP
s h a l l
pay
al
r e c o r d i n g
fees and
the like for
all
o
the
l o s i n g
D o c u m e n t s
o
any
oher
o c u m e n t s
c o n t e m p l a t e d
by
ths
a .
21
16
a i v e r of
Jury
Tia.
Al
o
the
Closng
Documents
s h a l l ,
where
a p p l i c a b l e ,
c o n t a i n
a
waiver
o
uy
trial
provision.
21
17
ross
D e f a u l t .
The
o n v e n t i o n
Center
A g r e e m e n t
s h a l l
hem e n d e d
to
provde
that
ae f a u l t
in
h e
D e c l a r a t i o n
sha
be
a
deau
in
the
o n v e n t i o n
-
8/15/2019 LTC 240-2003 (1)
18/77
AGREED
AND
ACKNOWLEDGED:
nDP
ROYAL
PALl\
I
HOTEL
LIMITED
PARTNERSHIP,
a
Florida
limited
partnership
B y :
PADC
HOSPITALITY CORPORATION
I, Datecl:
O/
b.\-/'"
2.
1,
2003
a
Florida
orpora t ion,
as
Genera l
Partner By:
Name:
R i c h a r d
A
at
o
Ttle
Vce
Presden
MAM
R E A C H
R E D E V E L O P M E N T
AG E NC Y
B
Name:
Davd
De r m e r
Ttle
C h a i r m a n
Dated:
2003
Attest:
Name:
Robe
Parcher
Title:
Secretary
APPROVED:
C I T Y
O
MIAMI
B E A C H
B
Dated:
2003
Name:
David
Dermer
Ttle
M a y o r
A t t e s t :
Name:
R o b e r t
P a r c h e r
Title:
C i t y
C l e r k
f:/
Mll~
cr/
C
M
B/
r m \ '
IL
;
za/
IlI~/
-
8/15/2019 LTC 240-2003 (1)
19/77
-
8/15/2019 LTC 240-2003 (1)
20/77
EXHIBIT
B"
The
following
is
a
list
of
outstanding
disputes
regarding
the
Hotel
Development
Agreement:
ARTICLE
2
O N S T R U C T I O N
2.
3
o m p l e t i o n
of
C o n s t r u c t i o n
o f
the
Project
b
p o n
Substantial
C o m p l e t i o n
o
C o n s t r u c t i o n
o
he
Project
D e v e l o p e r sha
f u r n i s h
the
Owner
w i t h
the
o l l o w i n g :
v)v i d e n c e
t h a t
al
F &
E
e c e s s a r y
to
se
and
p e r a t e
theo te l
in
c c o r d a n c e
wth
round
Lease, a n a g e m e n t
A g r e e m e n t ,
Plans and
Specs,
and
he
D e v e l o p m e n t
Budget h a s
been
installed
in
he
Hote
D e v e l o p e r hasprovided ae t t e r ,
daed
M a r c h
12,
2003
inatisfaction
o
hs
e q u i r e m e n t .
A R T I C L E
4 W N E R P A R T I C I P A T I O N
4
2
O w n e r '
s Riqht
too t i c e .
Access
a n d R e v i e w
a(
)
he
delivery
by
D e v e l o p e r
to
heOwneowo (
2)
copes
o:
1
l
g r e e m e n t s
wth
ontractors(
tha
wll
be
rovided
upon
set t lem ent
wth
l a r k Const ruct ion),
u b c o n t r a c t o r s ,
suppliers,
v e n d o r s
andohe
e r s o n s
s u p p l y i n g
materials
or
services in
c o n n e c t i o n
wth
the
Construction
o the
roject
in
excess
o
Two
u n d r e d
Fifty T h o u s a n d
Dollars ($
250
000),whch
s h a l lbe
g g r e g a t e d
with
r e s p e c t to
each
Person
s u p p l y i n g
m a t e r i a l s
o
services;
5
l
d r a w d o w n so
equity
and
oan
proceeds
unde
the
oan
Docs
7Updaed
Development
B u d g e t
8
lnterior
d e s i g n
control
books
A R T I C L E
5I S C E L L A N E O U S C O N S T R U C T I O N
PROVISIONS
5
a m e s
o
o n t r a c t o r s . M a t e r i a l m e n ,
ec-
e v e l o p e r
shall
f u r n i s h
to
wner,
it h a
is t
o
a c h c o n t r a c t o r , s u b c o n t r a c t o r
v e n d o r and
upplier
w h oise r f o r m i n g
any
labor
ou p p l y i n g material
in
e x c e s s
o$
0 0,
000 (
x c e p t for
FF&
E
he tem
isted
in
rticle
4
nd
Article
5
bove, wll
be
satisfied
by
the
e v e l o p e r '
s
d e l i v e r y
of
an
temized "Project
C o s t
Summar izat ion"
a n d D e b V E q u i t y
Capta
Investmen
Summary ("
r o j e c t
C a p i t a l i z a t i o n
R e c a p )
regarding
the
Project.
T h e f o l l o w i n g
is
lis o
u t s t a n d i n g d i s p u t e s
r e g a r d i n g
the
A g r e e m e n t
o
e a s e :
ARTICLE
11
O R T G A G E S
11
3.
R e f i n a n c i n Q
o
e b t
b
e f i n a n c i n Q
Not
Related
to
e f a u l t -
If
e n a n t r e f i n a n c e s
its
ebt
in
th e ordinary
c o u r s e
o
u s i n e s s ,
and
ot r e l a t e dto
n y Event
of
D e f a u l t ,
the
-
8/15/2019 LTC 240-2003 (1)
21/77
ii)
to
Tenant if
any
funds remain after
paying
Owner
the
full
Purchase
Price
for
Owner's Interest in
the Premises
1
w n e r '
s
u b o r d i n a t i o n
of
its
i g h t
toen ta l
s h a l l b e a
the
u b o r d i n a t e d A m o u n t a s ofthe
a te
o
such
e f i n a n c i n g
by
T e n a n t .
2
Refinancing
P r o c e e d s "
means
th e
a m o u n t
o
h e
r e f i n a n c i n go
he e b t le s s (
x
the
alance
i m m e d i a t e l y
beore
u c h r e f i n a n c i n g o
th e
Debt, (
y
the
n t e r e s t owing
on
uch
B a l a n c e ,
and
z
easonabe
refinancing
t r ansac t ion
expenses b r o k e r a g e
commissions
and
p r e p a y m e n t
fees
and
yed
a i n t e n a n c e
c h a r g e s
r e l a t i n gto
h e
D e b tto
be
e f i n a n c e d .
RDP
has
e e n requestedto
ubm
financial
i n f o r m a t i o n
r e g a r d i n g
any
o s s i b l e
r e f i n a n c i n g
to
he Agency .
As
uch,
RDP
will
p r o v i d e
the
ity/
A g e n c y
wth
an
f f i d a v i t r e l a t i n g
to
he
nion
P l a n t e r s
Banoan m o d i f ic a t i o n s tha
have e e n c losed
to
ate s u m m a r i z i n g
the
use
n d
a p p l i c a t i o n
o
he
additional
a d v a n c e
proceeds
and
stat ing thefact
t h a t
n o n e o
the
oan
r o c e e d s
w e r e
used (
i
or
d i s t r i b u t i o n s
to any
o
h e
Borrower'
s
artners
o r
m e m b e r s , (
ii)
o
e p a y any
o
h e
Borrower'
s
artners
or
m e m b e r s
forior
a d v a n c e s ,
loans
or
equity
o a p i t a l c o n t r i b u t i o n s , or (
iii)o
epay
any
t h e r
pe rso n
o
ntity
which
l o a n e d
m o n e y
to
the B o r r o w e r .
13
3
One
1
otel
M a n a q e r T h e
D e v e l o p e r
wll
affirm
that
a
al
times
during
the Term
and
wthout
i n t e r r u p t i o n , both
the
Shorecrest
I m p r o v e m e n t s
an d
the
P
I m p r o v e m e n t s s h a l l
be
p e r a t e d
and managed by
one
and
he
s a m e
Hotel
Manager.
D e v e l o p e r
has
re
sen
r e v i o u s
leter (a t e d
J a n u a r y
15
003)
affirming
this c o n d i t i o n
is
beng
o m p l i e d
with p r o v i s i o n
onthee a s e
Agreement,
and
as
u c h ,
ths
c o n d i t i o n
is
a t i s f i e d
ARTICLE
10
o t i c e
to
w n e r
10.1(
k
e n a n t
wll
provide
n o t i c e
to
w n e r
ony
C a p i t a l
Transaction
not
r e q u i r i n g
O w n e r 'so n s e n t not
later
han
wo(
2
business
days
aterh e occurrence
ouc h
CapaTransaction.. .
e v e l o p e r
has provded
a id noticein
on n ec t i on
wth
h e
t r a n s a c t i o n
describedin
h e
Certificate
of
T e n a n t
and
f u r t h e r
p r o v i d e d
a
ete
ated
M a r c h
12
003 ina t i s f a c t i o n
o
-
8/15/2019 LTC 240-2003 (1)
22/77
EXHIBIT
C"
CLARK
EXHIBIT)
The
following
is
a list
of
outstanding
Clark
issues
disputes
regarding
the
Hotel
Development
Agreement:
ARTICLE
2
O N S T R U C T I O N
2.
3
o m p l e t i o n
of
C o n s t r u c t i o n
o f
the
Project
b
p o n
Substantial
C o m p l e t i o n of
C o n s t r u c t i o n
o
he
Project D e v e l o p e r
sha
furnish
the
Owner
w i t h
theo l l o w i n g :i)
ertificate
of
the
Architect
re:
S u b s t a n t i a l
Comp le t i on
iii)
liena i v e r s
in
fom
and
u b s t a n c e
r
