97-22316 RESO
of 48
-
Upload
donpeeblesmia -
Category
Documents
-
view
223 -
download
0
Transcript of 97-22316 RESO
-
8/15/2019 97-22316 RESO
1/48
-
8/15/2019 97-22316 RESO
2/48
3
The
a y o r
and
Cty
o m m i s s i o n
h e r e b y
find
that
the
e v e l o p m e n t
o
the
o t e l
is
u t h o r i z e d
by
hapter
163
F l o r i d a
Statu tes.
4
he
Mayor
and
Cty
l e r kae
u t h o r i z e d
to
x e c u t e
the
at tached
LO.
5
he
hief
N e g o t i a t o r ,
Cty
a n a g e r and
Cty
t torney,
and
their
respective
st a f f s
and
u t s i d e
c o n s u l t a n t s ,
are
authorized
to
negotiate
and
o c u m e n t
th e d e f i n i t i v e
a g r e e m e n t s r e l a t i n g
to
h e LO
and
a k e
al
he
a c t i o n s
in
o n n e c t i o n
t h e r e w i t h .
6
hs
e s o l u t i o n
shal
take
f fec t
immediately
u p o n
adoption.
A S S E D
a n d
A D O P T E D
ths
APPROVED
A S
TO
F O R M
L A N G U A G e
O R X u n O N
A' ~
E S T :
i~
k6-
P~~
C J
TY
C L E R K kw
f\
)\
t a c ,
l\
r e s o s \
-
8/15/2019 97-22316 RESO
3/48
I. ;
IT(ALL
1700
O N V E N T I O N
C E N T E R
DRIVE MIAMI
BEACH
F L O R I D A
33139
ITY
OF
MAM
BEACH
O M M I S S I O N
M O R A N
NO.
I
0-~
7
.:
Mayor
e y m o u r
G e l b e r
and
Members
o
the
C i t y
C o m m i s s i o n
DATE:
M a r c h5
1 9 9 7 S l i
B
rECT:
J o s e
Garca_
ped7
ro .
Cty
a n a g e r
l
ESOLUTI~'
P P R O V I N GA
LETTER
OF
NTENT
A M O N G
THE
RDP
R O Y A L
PALM
OTEL
LTD.
CO.
AND
DP
S H O R E C R E S T
HOTEL
L T D .
CO (
O L L E C T I V E L Y
RDP),
THE
CTY
OF
MAM
EACH
AND
THE
MAM
BEACH
E D E V E L O P M E N T
AGENCY
FO R
T H E
O W N E R S H I P ,
D E V E L O P M E N T
AND
PERATION
OF
AN
AFRICAN
AMERICAN
O W N E D H O T E L
A
1535
ND
1545
C O L L I N S
AVENUE
F l i t O \
f:
E C O M M E N D A T I O N :
AIlprove
the
R e s o l u t i o n .
B
K G R O U N D :
S
1ff
and
o n s u l t a n t s
fo
he
R e d e v e l o p m e n t
A g e n c y (
RDA)
n d
C o m m i s s i o n
have nego t i a ted
a
r )
o s e d
letter
o
intent (
O I ) (
a t t a c h e d
hereto
for
a
425-
oom
hotel
c o m p r i s e d
of258
hoe
r o o m s
a
d]
7
otel
s u i t e s .
01
lme
51996
th e
RDA
s e l e c t e d
the
D P
Royal
P a l m
Hotel
Ltd
ompany ,
after
an
x h a u s t i v e
plic
review
p r o c e s s ,
to
negotiate
the
e r m s
u n d e r
w h i c h
RDP
would
d e v e l o p ,
own
nd
o p e r a t e
a
c
nvention
h o t e l on
the
R o y a l
Pam
r o p e r t y
a n d
optionally
on
the
djacent
S h o r e c r e s t
p r o p e r t y . A
he
t i m e ,
the
eveloper
h a d the
h o r e c r e s t
Hotel
under
contrac~
and
he
s u c c e s s f u l
p r o p o s a l
cc
n t e m p l a t e d
d e v e l o p m e n t
o
o th
sites
p e r a t e d
u n d e r
u n i f o r m
m a n a g e m e n t .
Thus,
the
ty
did
n
rave
ite
cont ro l
on
ll
o
he
land.
Fllrnany
m o n t h s ,
th e
Cty
s
e g o t i a t o r s
and
staff,
o r k i n g
in
a r m o n y
with
Don
eebles,
he d
eloper
on
he
L O I ,
s t r u g g l e d
to
put
the
deal
together
u n d e r
a
t r u c t u r e
of two
separate
o w n e r s h i p s
o
a
d
fo
one
o t e l d e v e l o p m e n t .
Irh;:ast
two
weeks,
by
u n a n i m o u s
c o n s e n t ,
the
hi e f
n e g o t i a t o r
for
he
RD
A
and
Mr.
e e b l e s
came
tc
eonclus ion
t ha t
th e
s i n g l e -
site
ow ne r s h i p
w a s
p r e f e r a b l e
and
r.
e e b l e s
a g r e e d
to
r a n s f e r
hs
c
"
act
i n t e r e s t
n
-
8/15/2019 97-22316 RESO
4/48
As
a
result
of the
agreement,
the
RDA
and
Peebles
moved
rapidly
to a
mutually
a c c e p t a b l e
LOI.
Th~
lO,
efore
the
RDA
and
City
Commission,
therefore
c o n t e m p l a t e s
c o m p l e t e
site
control
in the
hald~
of
the
RDA,
as
is the
case
wth the
Loews
Hotel.
Th.~
FDA
made
a
commitment
to all
RFP
r e s p o n d e n t s
that
its
funding
obligation
would be
limited
to $
10
i l l i o n . The
RD A
has
g r e e d
to
u b o r d i n a t e
its
i g h t
to
e c e i v e
rent
under
c e r t a i n
cr~
m s t a n c e s
to
he
firs $
0
million
in
i n a n c i n g
r e l a t i n g
to
th e
project.
In:
m u c h
as
h e
cos
of
a c q u i s i t i o n
o
the
Royal
Pam
was $5
5
i l l i on ,
a n d
the
p r e v i o u s l y
a g r e e d
up
m
r i c e
o
h e
S h o r e c r e s t ,
by
e e b l e s
is
aso$
5
5
i l l i o n ,
the
otal acquisition
costs
would
be$
1
i n i c l n .
The
a d d i t i o n a l
costs
o v e r $
10i l l i o n
w i l l be
borne
by
P e e b l e s
and
not
be
a
o s t b u r d e n
o
th
Cty
o
he
RDA.It
has
e e n
mutually
a g r e e d
b e t w e e n
the
R D A
and
P e e b l e s
tha
eebles
wll
co
ne
p
wth
ny
additional
c o s t s
over he$
10
m i l l i o n
that
reate
to
c q u i s i t i o n
o
he
S h o r e c r e s t .
T
e
LO
c o v e r s ,
among
other
t h i n g s ,
the
e n t
t h a t
the
D A
wll
receive
from
the
eveloper,
h e
dee l o p e r '
s
i n a n c i a l
involvement,
outs ide
f u n d i n g ,
q u e s t i o n s
o
sae
o
the
o t e l ,
o p e r a t i o n s ,
qual i ty
of
the
lag,
p a r k i n g
a nd
use
o
the
RDA
s
a r k i n g
garage.
T
e
1
follows
the
asic
f o r m a t
o
the
o e w s
a g r e e m e n t
e x c e p t
t h a t
the
oews
a g r e e m e n t
n e v e r
re'
l u i r e d
s u b o r d i n a t i o n
of
the
ight
to
r e c e i v e
r e n t
by
the
i t y .
It,
culd
be
o t e d
that
the
i g n i n g
of
the
LO
is
j u s t o n e
sep
in
o v i n g f o r w a r d .
It
is
he
b l u e p r i n t
fo
H
e
definitive
a g r e e m e n t s .
If
th e
n e x t
d o c u m e n t s
to
e
a g r e e d
upon
are
n a c c e p t a b l e ,
the
LOI
st:
te:;
that
there
is
o
further
o b l i g a t i o n
o n
the
part
o
the
C i t y /
RD A
s ub j ec t
to p o s s i b l e
design
de
e
p m e n t
e x p e n s e r e i m b u r s e m e n t .
A~
L
YSS
d 1 c w i n g
ae
r i t e r i a
m a j o r
ponts
in
th e
LO.
h e d o c u m e n t
is
ttached
and
a
resentation
wll
be
m a d e
a
he
Cty
C o m m i s s i o n /
M i a m i
Beach
R e d e v e l o p m e n t
A g e n c y
m e e t i n g .
D
oom
count:
4 2 5
units
t o t a l (
258
ho te l
r o o m s /
167
hoe
u i t es) .
D
e a s e
t e r m :
100
y e a r s .
D
ent
to
D A : $
490
000
pe r
year
plus
incentive
r e n t
up
to$
00,
-
8/15/2019 97-22316 RESO
5/48
D
RDA
owns
both
sites.
D
P a rk i n g :
118
p a c e s
on
ste
5 3 s p a c e s
to
e
p r o v i d e din
RDA-
w n e d
g a r a g e
a
1 6 t h
Sree.
D
o m m i t m e n t
o
o o m
bock
fo
C o n v e n t i o n
C e n t e r
u s a g e .
o
lag:
Crowne
Paza
r a n c h i s e ,
m a n a g e m e n t
by
H o s p i t a l i t y
Partners.
o
o mp l e t i o n :
e r s o n a l l y g u a r a n t e e d
by
e q u i t y
pa r tne rs .
D
u a l i t y
s t a n d a r d s
to
e
approved
by
Tishman
H o t e l
C o r p o r a t i o n .
D
e s i g n development
to
o m m e n c e
wth
LOI
s i g n i n g
a n d
with
a$
600
00
ap
on
e i m b u r s e m e n t
s h o u l d
the
eal n o t go
t h r o u g h
d u eto
th e
Cty
s
w i th d r a w a l .
D
DA
to
a p p r o v e
pans
and
p e c i f i c a t i o n s .o
e s t r i c t i v e
c o v e n a n t
l imi t ing
p r o p e r t y
to
o te l us e d u r i n g
the
l i fe
o
the
R D A .
D
adius r e s t r i c t i o n s .
D
R e a l
e s t a t e
t a x e s
to
b e
pad
by
e v e l o p e r .
D
a n d a t o r y
p u r c h a s e
of
A g e n c y '
s
n t e r e s t in
the
l a n d
a
5t h y ear .D
AMP'
s
rsimlar
q u a l i t y
o p e r a t o r
fo
r e s t a u r a n t . C )
l,[
LUSON
TJ
Ie'
ty
o m m i s s i o n l R e d e v e l o p m e n t
Agency
s h o u l d
a p p r o v e
th e
R e s o l u t i o n .
J
-
8/15/2019 97-22316 RESO
6/48
RESOLUTION
NO.
2 6 4 -97
E S O L U T I O N
O
HECHAIRMAN A N D
M E M B E R S OF
HE
MAM
EACH
R E D E V E L O P M E N T
A G E N C Y APPROVING,
AND
AUTHORIZING
THE
CHAIRMAN
A ND
SECRETARY
TO
X E C U T E , TH E TC H E D
LETTER
OF
NTENT B E T W E E N
TH E CTY
OF
IAMI
BEACH,
THE
MAM
EACH E D E V E L O P M E N T
AGENCY,
RDP
ROYAL
PALMHOTEL
L I M I T E D C O M P A N Y
ANDRDP
SHORE
CRESTHOTEL
LMTED
C O M P A N Y REGARDING
THE
W N E R S H I P ,
DEVELOPMENT A ND
O P E R A T I O N
O
A
CONVENTION HOTEL.
W H E R E A S ,
RDP
Royal Pam
Hote
L im i ted
C o m p a n y (
RDP
Royal
Pam")
was s e l e c t e d
as
t
ei n n i n g
bdder
in
r e s p o n s e
to
Request
fo
P r o p o s a l s
N u m b e r
45-
95
96 ("
RFP")
o
develop,
OW
and
operate
an
f r i can-
A m e r i c a n
owned
c o n v e n t i o n
c e n t e r
hoe
in
i a m i
B e a c h ;
and
H E R E A S ,
r e p r e s e n t a t i v e s
o
the
R e d e v e l o p m e n t
Agency (
RDA ) ,he
C i t y
of
Miami
BeG
ch(
he "
Cty"),RDP
oyal
Pam
and
RDP
S h o r e c r e s t
Hotel
Limi ted
C o m p a n y ( c o l l e c t i v e l y ,
RD)
oyal
Pam
and
DP Sh o re c re s t H o t e l L i m i t e d C o m p a n y aree f e r r e d
toas "
D P )
have
e e n e n g
Igedn
n e g o t i a t i o n s
fo
a
u m b e r
o
o n t h s
regarding,
among
o t h e r
t h i n g s ,
the
e v e l o p m e n t ,
o W l e r : ;
hp
nd
o p e r a t i o n
o
he
proposed
h o t e l ;
a n d
W H E R E A S ,
t h e d e v e l o p m e n t
of
h e h o t e l
is
aart
o
and
is
c o n s i s t e n t
with
th eCty
Center
Hs
r.
c
o n v e n t i o n
V i l l a g e
R e d e v e l o p m e n tand
e v i t a l i z a t i o n Plan
a n d
w i l l
e l i m i n a t e s l u m
and
big
1 .
n
the
Cty
e n t e r Hsoc
o n v e n t i o n
V i l l a g e
R e d e v e l o p m e n t
and
Revi tal izat ion
A r e a ;
a n d
W H E R E A S ,
th e d e v e l o p m e n t
o
the
o te l
is
au b l i c
p u r p o s e a n d
wll
b e n e f i t
the
publ icby
m(
ng
t h e rthngs
i n c r e a s i n g
thenumber of c o n v e n t i o n
q u a l i t y
hoe
r o o m s
in
th e
Cty,
ssisting
the :
ity
nattracting c o n v e n t i o n s
and
increasing
the
utilization
o
he
Co n ven t i o n
C e n t e r ,
increasing
t O U l l s m
andm p r o v i n g
the
c o n o m y ;
a n d
W H E R E A S ,
the d e v e l o p m e n t of the hoteas
e s c r i b e d
in
th e
a t t a c h e d leter
of
intent
Ll)
1)
is
u th o r i z e d
by
Chapter
163
f
the
Flo r ida
S t a t u t e s ;
and
W H E R E A S ,
r e p r e s e n t a t i v e s
o
he R D A ,
the
it y
a n d
RDP,
s u b j e c t
to
the
a p p r o v a l
o
he
RD \.
n d
the
Cty,
have
e g o t i a t e d
the
tem
the
Loattachede r e t o .
NOW,
THEREFORE,
BE
IT
U L Y
R E S O L V E D
BY
HE
CHARMAN
AND
E M B E R SOF
THE
MIAMI
B E A C H R E D E V E L O P M E N T
A G E N C Y as
o l l o w s :
1
he
a t t a c h e d
L o r
b e t w e e nthe
R D A ,the
ity
and
RDP
is
e r e b y a p p r o v e d .
2
h e
C h a i r m a n and M e m b e r s
h e r e b y
find
tha
the
d e v e l o p m e n t
o
the
h o te l is
a
p u b l i c
p u r p o s e ,
wll
b e n e f i t
the
ubl ic ,
a n d
is
a
part
o
ndis
o n s i s t e n t
wth
he
-
8/15/2019 97-22316 RESO
7/48
3he
h a i r m a n
and
M e m b e r s
h e r e b y
find
t h a t
the
e v e l o p m e n t othe
o t e l
is
a u t h o r i z e d
by
hapter163
F l o r i d a
Statutes.
4
The
h a i r m a nand
e c r e t a r yae
u t h o r i z e d
to
x e c u t e
the attached
LO.
5
he
hief Negot ia t o r ,
Exe cu t ive
D i r e c t o r
and
General
Counsel,
and
their
respective
st a f f s
and
u t s i d e
consul tants,
areauthorizedtonegotiate
and
o c u m e n t
th e
d e f i n i t i v e
a g r e e m e n t s
r e l a t i n g toh e LO
and
a k eal
he
a c t i o n sin
o n n e c t i o n
t h e r e w i t h .
6
Thse s o l u t i o n
shal
take
f fec t immediately
u p o n
a d o p t i o n .
PASSED
and
A D O P T E D
t h i s
5 t h
M a r c h
AT
EST
1)() ~--
I M - ~
SEI ~
E T A R Y A 1 T \ k,f:\ at t o \
lca
.
os\
aaloiexe.
rda
A P P R O V E D
AS
TO
F O R M &A N G U A G E
-
8/15/2019 97-22316 RESO
8/48
Mami
Be ,ach
Redevelo :>
ment
Agency
1700
I(
ntion
Center
Drive
M i a m i
Be,:
ch
Florida
33139
305)
673-
7193ax (
305
i
6n-
7 7 2
fQ
R E D E V E L O P M E N T
AGENCY M E M O R A N D U M
NO7-
6
DA
E
a r c h
5
997
TO:
C h a i rm a n
a n d
emberso
theo a r d of
the
e d e v e l o p m e n t
Agency
Jose
a r c i a _
p e d r l L o a
Executive
Director R E S O L U T I O N
I p R O V I N G
A
ETTER
OF
NTENT
AMONG
THE
DP
R O Y A L
PALMO T E L
LTD.
CO
ND
RDP
SHORE
C R E S T
H O TE L
LTDCO (
OLLECTVELY
RDP,
HE
CITY
O
MAME A C H
AND
HE
M I A M I
BEACH
REDEVELOPMENT
AGENCY
FORHE O W N E R S H I P ,
D E V E L O P M E N T
AND
O P E R A T I O N
O F
AN
A F R I C A N
A M E R I C A NOWNED
HOTEL
AT
53 5
A ND
1545
C O L L I N S
AVENUE.
FR(
MI:
SUEJECT:RE(
OJ\
1MENDATION:
Appl ov~
the
e s o l u t i o n .
BAC
G R O U N D :
Staff
an d c o n s u l t a n t s
fo
h e
R e d e v e l o p m e n t
A g e n c y ( RDA)and
o m m i s s i o n
h a v e
neg ot ia t ed
a
prop<
e:
i
etter
o
intent (
LO) (
a t t a c h e d
here to )
for
a
25-
o o m hotel
c o m p r i s e d
of258
hotel
r o o m s
and ]
7
o te l
sutes.
On
ltne
5
9 9 6 ,
the
DA
s e l e c t e d
the
RDP
Royal
Palm
Hotel
Ld.
o m p a n y ,
after
n
exhaustive
publi:
e v i e w
p r o c e s s ,
to
e g o t i a t e
the
e r m s
under
which
RDP
would
develop,
own
an d
o p e r a t e
a
o n w n L o n
hote
on
the
Roya
Palm
property
and
p t i o n a l l y
on
the
adjacent
Shorec res t
property.
A
h~
lme,
the
developer
had
the
Shorecrest
Hotel
u n d e r
c o n t r a c t
and
the s u c c e s s f u l
p r o p o s a l
c o n t e n j :
lated
e v e l o p m e n t of b o t h sites
o p e r a t e d
u n d e r
u n i f o r m
m a n a g e m e n t .
Thus, he
City
d id
no
h~
e
site
o n t r o l
on
l
o
the
a n d .
For
r
aL Y
m o n t h s ,
the
Cty
s
n e g o t i a t o r s
a n d
staff,
working
ina n n o n y
wth
o n
P e e b l e s ,
the
deve >
p c r
o n
th e
L O I ,
s t r u g g l e d
to
pu
t h e
deal
t o g e t h e r
u n d e r
a
s t r u c t u r e o f
two
eparate
ownerships
o
an: o r
o n e
hoe
eve lopment .
S)
-
8/15/2019 97-22316 RESO
9/48
In
tieList two
weeks,
by
unanimous
consent,
the
chief
n e g o t i a t o r
for the RDA
and
Mr.
Peebles
came
to a~
o n c 1 u s i o n
that the
s i n g l e -
site
o
n e r s h i p
w a s p r e f e r a b l e
and
M.
e e b l e s
agreed
to
r a n s f e r
hs
o n t r a c t
interest
in
h e
S h o r e c r e s t
tohe
RDA (
fee
a n d l e a s e h o l d ) .
A
G
e s u l t
o
h e
a g r e e m e n t ,
the
DA
and
e e b l e s
moved
rapidly
to
u t u a l l y
acceptable
LO.
he
LOI, e f o r e the
DA
andCity
C o m m i s s i o n ,
thereforecon templa tes
complete
ste
o n t r o l
inh e
h a n e
s(f
th e
RDA,
as
s
h e
c a s e
wth
the
o e w s
Hotel.
The {
DA
m a d e
ao m m i t m e n t
to
ll
R F P r e s p o n d e n t s
tha
ts
u n d i n g
o b l i g a t i o n
would
be
i m i t e d
o$
0
million.
The
RDA
has
a g re e d
to
subordinate
its
right
to
receive
rent
under
certain
cirCl
m.
tances to
the
first $ 10
i l l i o n
in
inancing
r e l a t i n g
to
the
project.
n a s l l 1 u ~
has the
cost
of
acquisition
o
the
Royal
Palm
was $
5
i l l i o n ,
and
he
p r e v i o u s l y
a g r e e d
u p o r
p r i c e
o
h e
Shorecres t ,
by P e e b l e s
is
l s o $
5
5
illion,
the
o t a l
a c q u i s i t i o n
c o s t s
w o u l d
be$
1mlli
mhe
a d d i t i o n a l
costs
o v e r $
10
i l l i on
wll
be b o r n e
by
e e b l e s
a n d
not
be
ao s t
burden
o f
the (it)
ohe
RDA.It
has
been
mutually a g r e e d
between the
RDA
an d
P e e b l e s
that
Peebles
wllcomup
wth
any
a d d i t i o n a l
c o s t s
ove
he $10
mllion
that reate
to
c q u i s i t i o n
o
he
S h o r e c r e s t .
The : (
11
c o v e r s ,
a m o n g
oher
t h i ngs ,
the
ren
hat
the
RDA
wll
receive
from
the
e v e l o p e r ,
h e d eve
o p e r I s f m a n c i a l
i n v o l v e m e n t ,
outside
f un d in g ,
q u e s t i o n s
o
sae
o
theh o t e l ,
p e r a t i o n s ,
quality
oth:
lag,
p a r k i n g an d
useo
the
RDAls p a r k i n g
g a r a g e .
The] ,
o
ollows
theb a s i c
format
o
he
Loews
agreement
e x c e p t
that
the
o e w s
a g r e e m e n t n e v e r
r e q u i r e d
s u b o r d i n a t i o n
of
th e
r i g h t to
r e c e i v e
r e n t
by
heCi t y .
It
h e
u(
l
e
n o t e d
that
the
s i g n i n g
o
he
O I
is just
one
step in
m o v i n g
forward.
I
s the b l u e p r i n t
fol
e
c l e f i n i t i v e
a g r e e m e n t s .
If
the
e xt
d o c u m e n t s
to
e
a g r e e d
u p o n
are
u n a c c e p t a b l e ,
the
OI s t a t e :
that
t h e r e
is
n o f u r t h e r
o b l i g a t i o n
on
t~
art
o
the
Cty/
RDA
subec
to
p o s s i b l e
design
deve:
o p m e n t e x p e n s e
r e i m b u r s e m e n t .
A N A L Y S I S :
Fol la
wilg
ae
r i t e r i a
maor
p o i n t s in
the
O .
T h e
d o c u m e n t is
t t a c h e d ,
and
a
resentation
wll
be
dc
at
theCty
C o m m i s s i o n l M i a m i B e a c h R e d e v e l o p m e n t
Agency
m eet ing.
D
R o o m
count:
425
units
t o t a l (
258
h o t e l
rooms/
167
hotel
s u i t e s ) .
De a s e
t e r m :
1 0 0
y e a r s .
D
R e n t
to
RDA: $
490,
0 0
per
y e a r
plus
i n c e n t i v e
rent
up
-
8/15/2019 97-22316 RESO
10/48
o
M or t g a g e by
pr ivate
lenders: $
31
m i l l i o n .
D
DAowns both
s i t e s .
D
arking:
118
s p a c e s
on
i t e ,
1 5 3
spaces
to
be
rov id ed
in
D A -
o w n e d
garage
at
16h
t r e e t .D=
m m i t m e n t
o
room
lock
fo
C o n v e n t i o n
C e n t e r
usage.
D
ag:
Cowne
l a z a
franchise,
a n a g e m e n t
by
Hosp i ta l i t y
Partners.
D<
m p l e t i o n :
p e r s o n a l l y guaranteed
by
equi ty
partners.
D '~a l i t y
s ta n d a r d s
to
be
p p r o v e d
by
T i s h m a n
Hotel
Corporation.
o :
Jesgn
e v e l o p m e n t to
c o m m e n c e
with
Lor
s i g n i n g
and
with
a$
00,00
capon
r e i m b u r s e m e n t
should
the
d e a l
not
go
h r o u g h
due
to
the i t y '
si t h d r a w a l .
D
RDA
to
a p p r o v e
pans
and
s p e c i f i c a t i o n s .
D
R.
e s t r i c t i v e
c o v e n a n t
l im i t ing
p r o p e r t y too t e l use
during
th e
lifeo
th e
RDA.D
adius r e s t r i c t i o n s . D
R e a l
e s t a t e taxes
to
be
paid
by
e v e l o p e r .
D
v a n d a t o r y
purchase
of
A g e n c y '
s
n t e r e s t
in
the
l a n d
a5t h
y e a r .
D
J I A M P '
s
rsmar
q u a l i t y
operator
for
r e s t a u r a n t .
C1
L U S I O N :
The ( :
ity
o m m i s s i o n l R e d e v e l o p m e n t Agency
s h o u l d
approve
the
R e s o l u t i o n .
tbv
GPIl
-
8/15/2019 97-22316 RESO
11/48
LET
T E
R o
F
I
N
TEN
Subject:
Royal
Palm/
Shorecrest
Cowne
Paza
Hoe
Parties:
RDP
Royal
Palm
Hoe
Limted
Company
and
RDP Shorecrest
Hoe
Limted
Company
colectivey, "
RDP")
Cty
o
Miami
Beach (
the "
Cty")
Miami
Beach
Redevelopment
Agency
the "
Agency" )
Date:
March
5
9 9 7
R E C I T A T I O N S :
A
n
e b r u a r y
1993
the
Cty
C e n t e r /
Historic
Convention
V.
age
e d e v e l o p m e n t
and
Revitalization
Aea
a s
o f f i c i a l l y
established
by
th e
adopon
o
a
Redevelopment
Pan (
the
Hedevelopment
Pan").he
R e d e v e l o p m e n t
Pan
wa s
theresut
o
he
c o m b i n e d
e f f o r ts
o
the
Cty
o
M i a m i
B e a c h (
t h e Cty"),
the
M
m
B e a c h
R e d e v e l o p m e n t Agency (
he"
Agency"),
e t r o p o l i t a n
Dade
County
a n d
the
tate
o
lorida.
The
R e d e v e l o p m e n t
Pan
e p r e s e n t s
the
f f o r t and
c o m m i t m e n t
o
the
Agency
and
the
ty
to
o s t e r
the
evelopment
o
onvention
quaity
h o t e l s ,
ancllary
i m p r o v e m e n t s
and
acilities,
and
n e c e s s a r y
linkages
to
the
am
B e a c h
Convention
Center (
he
o n v e n t i o n
C e n t e r ) .
Pusuan
to
he
R e d e v e l o p m e n t
Plan,
the
g e n c y
has
a c q u i r e d
the
Royal Palm
H o t e l
which
has
sree
address
o
545
C o l l i n s Avenue,
M i a m i
Beach,
F.
rida
and
h i c h
it
has
greed
to
mke
available
fo
a
onvention
h o t e l
w h i c h
wll
s e r v e
as
a
art
of
the
R e d e v e l o p m e n t
Plan.
B
The
Cty
and
the
g e n c y
aso
h a v e
decded
to
a k e
a
u b s t a n t i a l
commitment
to
rovde
th e
A f r i c a n -
A m e r i c a n
community
w:.
th
an
p p o r t u n i t y
in
the
os pi
tai
ty
i n d u s t r y .
In
onnection
w_
th
hat
c o m m i t m e n t ,
the
Agency
has
greed
to
ake
available
the
Roya
Pam
Hoe
and
a d d i t i o n a l
financial
incentives
fo
an
A f r i c a n -
A m e r i c a n
owned
o t e l .
C
In
u r t h e r a n c e
o
he
Redevelopment
Plan
and
the
ommitment
to
he
f r i c a n -
A m e r i c a n
c o m m u n i t y
referred
to
in
he
preceding
pa
agraph,
the
Agency
published
Request
fo
-
8/15/2019 97-22316 RESO
12/48
9596 (
the "
RFP,
nt i t led
Cty
Center/
Hsoc
o n v e n t i o n
Vage
e d e v e l o p m e n t
and
e v i t a l i z a t i o n
Aea
Arcan-
American
Hoe
Development
Oppor tun i t y ,
dated
D e c e m b e r
27
995
and
amended
onJanuary
2
996,
January
3
996
and
Mrch
5
1996
h e
R F P sough
bds
fo
th e
development
and
o p e r a t i o n
o
a
o n v e n t i o n
h o t e l
owned
by
frican-
A m e r i c a n s .
D
O
une
5
996,
after
a
ublic
review
process,
the
A g e n c y
seected
RDP
Roya
Pam
oe
Lmted
Company (
w h i c h ,
aong
with
RDP
S h o r e c r e s t
Hotel
Limited
C o m p a n y
sha
h e r e i n a f t e r
collectively
be
eferred
to
as"
DP")
from
among
the
r o u p s
that
s u b m i t t e d
proposa ls
p u r s u a n t
to
he
RFP
and
directed
r e p r e s e n t a t i v e s
o
the
A~
rency
to
e g o t i a t e
the
erms
under
w h i c h
RDP
w o u l d
develop,
o wn
and
perate
the
convention
h o t e l
r e f e r r e d
to
above (
he"
otel")
in
c c o r d a n c e
wth
he
e q u i r e m e n t s
of
the
FP.
This
ete
sets
foth
the
u n d e r s t a n d i n g
r e a c h e d
a
esult
o
u c h
negotiations.
1
T H E
H O T E L :
The
Hotel
wll
consist
of
the
following: (
i)
e s t o r e d
portions
o1~
the
Royal
P a l m
Hotel,
and
a
ew
tower
to
e
d e v e l o p e d
to
the
els
of
the
Royal
Pam
Hotel,
as
pe~
he
pans
and
specifications
a p p r o v e d
by
he
oint
Desgn
eview
and
Hstoric
P r e s e r v a t i o n
Boards
on
ecember
3
996,
a
s a i d
plans
and
s p e c i f i c a t i o n s
my
be
nended
and
p p r o v e d ,
t o g e t h e r
c o m p r i s i n g
a p p r o x i m a t e l y
two
h u n d r e d
f :_
ty
gh (
58)
hotel
room(
here ina f te r
col lect ively
r e f e r r e d
toal
he
P
Hoe")
and
)
restored
portions
o
h e
S h o r e c r e s t
Hote
w h i c h
has
a
t r e e t
a d d r e s s
o
5 3 5
Col l i ns
Avenue
Miami
B e a c h ,
Flor ida
and
a
ew
tow
to
e
d e v e l o p e d
to
he
as
o
thelorecrest Hotel,
as
pe
the
plans
and
p e c i f i c a t i o n s
approved
by
he
jon
Design
Review
and
storic
Preservation
Boards
on
e c e m b e r
3
996,
as
sad
pans
and
p e c i f i c a t i o n s
may
be
amended
and
a p p r o v e d ,
togehe
c o m p r i s i n g
a p p r o x i m a t e l y
o n e
hundred
sixty-
seven (
67)
otel
s u i t e s (
here ina f te r
c o l l e c t i v e l y
r e f e r r e d
to
s
he
h o r e c r e s t H o t e l ) .
T h e
S h o r e c r e s t
Hoe
wll
be
pera ted
in
onjunction
wth
the
RP
oe
as
the
oe.
The
otel
wll
be
a
irs
class,
p s c a l e
property
wth
uitable
c o n v e n t i o n ,
c o n f e r e n c e
and
meeting
space
and
appropriate
amenities
m e e t i n g
the
t a n d a r d s
0
he
C r o w n e
Plaza
chain
and
hose
t a n d a r d s
set
f o r t h
in
he
G r o u n d
Lease (
as
h e r e i n a f t e r
defined).
Itwll
be
eveloped
b a s e d
U
Jon
theconcept
p r e s e n t e d
inDP'
s
e s p o n s e
to
he
RFP
ated
April
1
996,
subec
to
he
e f i n i t i v e
agreements
to
be
entered
into
between
the
A g e n c y
a n d /o
he
Cty (
as
p p l i c a b l e )
and
RDP
c o l l e c t i v e l y , the"
g r e e m e n t s ) ,
the
o rm
and
sub s t an c e
o
hch
shall
be
a c c e p t a b l e
to
RDP
s
ender,
DP,
the
Agency
and
he
Cty.
P
hal
be
bligated
to
evelop,
design,
construct,
f u r n i s h and
e
up
the
Hoe
in
c c o r d a n c e
wth
l a n s
estabished
p u r s u a n t
to
the
g r e e m e n t s
whch
sha
n c l u d e
-
8/15/2019 97-22316 RESO
13/48
environmental,
safety
and oher
governmental
laws,
rues
and
n
gulations.
O S T S
OF
THE
HOTEL:
The
reliminary
e s t im a t e d
budget
fo
the
e v e l o p m e n t
o
the
o t e l is
as
follows:
2.
1
Uses
o
unds.
Land $0
900
00
C o n s t r u c t i o n C o s t $
29
68
300
ndirect
Fees $
1
960
600
ndrect
Costs $
890
300
FF&
$
5
27
900
e n e r a l &
Admin. $
550
00
F i n a n c i n g
Costs $
9 2 2 , 000
S t a r t -
U
Costs $
2
080,
0 0 0
C o n s t r u c t i o n
Interest $
1
33,
8 0 0
Fee $
1
17
200
C o n t i n g e n c y
4
47
300
oa $
59
997
00
3.
UNDING
O
HE
HOTEL:
3
1
ources
o
unds.
Developer
Equy
C
arker $
2
04
831
D
Peebles $
2
06
469
J
hompson $
2
210
175
CF
-
8/15/2019 97-22316 RESO
14/48
3
rovider
a n d
Fom
o
o m p l e t i o n
G u a r a n t e e .
T h e Cass
A
mes(
the
uarantors
d e f i n e d
h e r e i n b e l o w )
o
RDP
sha
povde
personal
g u a r a n t e e s
r u n n i n g
to
he
Cty
and
the
gency
whch
wll
irrevocably
and
n c o n d i t i o n a l l y
guarantee
the
u c c e s s f u l
c o m p l e t i o n
a n d
o p e n i n g
o
the
Hoe.
These
ersonal
g u a r a n t e e s
shall
bejon
and
several
a n d
sha
be
p r o v i d e d by
R
onahue
Peebles,
Cecile
Barker,
Jeffrey
Ear
T h o m p s o n ,
Peter
Calin
and
HCF
nc. (
colectivey,
theu a r a n t o r s ) .
From
the
dae
e x e c u t i on
o
the
g r e e m e n t s
until
the
Openng
Date,
Guarantors
sha
funsh
updaed
i n a n c i a l s t a t e m e n t s
to
he
Cty
and
the
gency
a n n u a l l y
and
any
aterial
a d v e r s e
c h a n g e
in
he
a g g r e g a t e
f i n a n c i a l
c o n d i tion
o
he
u a r a n t o r s ,
includng
as
r e f l e c t e d
in
he
s t a t e m e n t s
or
any
o
hem,
h i c h
c h a n g e
has
a
material
a d v e r s e effect
on
he
c o m p l e t i o n
or
o p e n i n g
o
the
o t e l ,
sha
be deemed
a
efault
under
the
g r e e m e n t s .
3
Fundinq
o
Aqency'
s Share.
The
Agency
s
o t a l
f u n d i n g
obligation
sha
be
en
mllion
dolars($
10
00,
000) allocated
as
foows
horecrest
Hoe
L a n d
5
00,
000
4
00,
000
10,
000,
000
RP
Hoe
and4.
UNCPAL
G A R A G E :
4
A q e n c y
o
ity
to
uld
G a r a q e .
The
g e n c y
or
Cty
shall
be
r e s p o n s i b l e
fo
he
construction
and
m a i n t e n a n c e (
fo
so
long
as
h e
Hotel
is
operated
as
a
o t e l
o
he
arking
s p a c e s
are
required
fo
he
use
such
hoe
by
RDP
nder
applicable
law
o
u n i c i p a l
g a r a g e (
Garage")
on
an
g e n c y -
o w n e d
site
within
an
rea
o u n d e d
by
ashington
a n d
Colns
venues
b e t w e e n
15h
nd
17th
S t r e e t s . The
Agency
and/
o
he
City
shall
per form
the
o r e g o i n g
actions
in
c c o r d a n c e
wth
th e
s t a n d a r d s
se
forth
in
he
greements.
Th e
Agency
and/
or
the
Cty
nticipates
the
Garage
wll
be
o p e n
by
the
p e n i n g
Date (
d e f i n e d
h e r e i n b e l o w ) ;
however,
if
he
a r a g e
is
o
s u b s t a n t i a l l y
c o m p l e t e d
and
ready
fo
se
by
the
pening
Dae
hen
in
ha t
event,
he
Agency
and
o
the
Cty
shal l
make
one
hunded
fifty
hree (
153)
parking
spaces
a v a i l a b l e
e l s e w h e r e
w i t h i n
a
adus
o
one
t h o u s a n d
two
h u n d r e d (
1
00)
feet
o
the
o t e l (
Temporary
P a r k i n g )
for
the
oe
unti l
the
Garage
is
u b s t a n t i a l l y
completed
and
ready
fo
use
he
Agency
o
the
Cty
sha
be
e s p o n s i b l e
fo
he
additional
expenses,
if
any
elated
-
8/15/2019 97-22316 RESO
15/48
defined
below)
by
the
Hoe
in the
Garage (
including
provisions
for
Hoe
vaet
parking
arrangements).
Hoe
use
parking
rates
shal
be established
by
the
garage
operator,
subject
to
the
Agency'
s o the
Cty'
s
approval, provided,
however,
charges
to
RDP fovaet
parking
shal not exceed
fifty (
50%
e r c e n t
othe
sef-
park
rate
and
h a r g e s
fo
Hoe
employee
parking
shall
no
xceed
the
o w e r
o f (i)
theonthly
parking
ra te , (
ii)
ifty(
0%)e r c e n t
o
the
ef-
a r k i n g
rate o (
iii)
he
ontract parking rae
RDP
hall uilize
the
vailable
p a r k i n g
spaces
ahe
a r a g e
po
to
t i l i z i n g
other
of-
ste
arking
facilities.
The
A g e n c y
o
he
Cy
as
pplicable,
shall
incorporate
the
p r o v i s i o n s
o
his
subparagraph
4
and
s u b p a r a g r a p h
4
3
e r e i n b e l o w
in
ny
nd
al
operation
and
a n a g e m e n t a g r e e m e n t s
wth
garage
o p e r a t o r s
relating
to
the
arage.
4
3
Priority
Use "riori ty
use"
shal
m e a n
the
arage
o p e r a t o r
sha
set
aside
soey
fo
ote
use
such
number
o
the
al located
parking
s p a c e s
as
otel
O p e r a t o r
shall request
from
time
to
time
upon
not
less
than
twenty-
fou (
24
ours
prior
notice
to
the
arage
operator.
4
ote l
Garaqe
Rent.
RDP
sha
pay
nnua
ren,
ayabe
m o n t h l y ,
equal to
n e
h u n d r e d
thirty
seven
t h o u s a n d s e v e n
hundred
d o l l a r s ( $137
00) fo
the
se
o
the
p a r k i n g
spaces
in
he
Garage
as
described
in
hs
e t t e ro
n t e n t , subject
to
subparagraph
4
5
e r e in b e l o w (
he"
a r a g e
Ren").
4
acility
U s a q e
P a y m e n t .
In
o n s i d e r a t i o n
o
D P '
s
greement
to
ilize
he
G a r a g e ,
as
r o v i d e d
above,
RDP
sha
be
pad
m o n t h l y
a
e r c e n t a g e
o
the
nnua
g r o s s
r e v e n u e s
o
he
Garage
as
oows (
the " Facility
Usage
p a y m e n t ) :
i
leven
and
ou
enhs
p e r c e n t (
11
4%
the
annual
gross
r e v e n u e s
wth
respect
to
the
firs
one
mon
wo
hundred
t h o us an d
dolars ($1
200
000
o
gross
revenues;
and
)
even
and
sx
enths
percent (
7
6
hose
annual
gross
revenues
that
exceed
o n e
mon
wo
hundred
thousand
doas($
1
00,
000);
r o v i d e d ,
h o w e v e r ,
the
irs
one
hundred
thrty
seven
thousand
seven
u n d re d
dolars ($
137,
700)
resulting
from
the
a p p l i c a t i o n
o
s u b p a r a g r a p h
4
5(
i
e r e i n a b o v e
to
nnual
g r o s s
r e v e n u e s
shal
be
applied
as
a
r e d i t
ag a ins t
th e
Garage
R e n t
each
year.
4
6
i m i t a t i o n
-
8/15/2019 97-22316 RESO
16/48
Temporary
Parking
lessthe
cumuative
FacilityUsage Payments
received
by
RDP
fromthedate
o
such commencement exceed the
sumo two
hunded
seventy-
five
thousanddolars ($
275,
000
he
Facility
U s a g e P a y m e n t
fo
hat y e a r
wll
be
the
greater
o
one
undred thrty
seven thousand
seven
h u n d r e d
do l la r s 137
700
n dthemount
cacuated
in
accodance
wth
ubparagraph
4e r e i n a b o v e .
4
7
Enforceabilitv. A p p r o p r i a t e
provsions
wll
e
made,
b
recorded
non-
excusve
a s e m e n t
o
oher
c o v e n a n t ,
to
n s u r e
the
e n f o r c e a b i l i t y
o
he
Hotel'
s
ighs
to
he
Garage.
5
R O U N D
LEASE
The
and
o m p r i s i n g
the
RP
o t e l
and
the
Shorecrest
Hotel
ollectively,
he
and"),
h i c h
iso re
fully
described
on
E x h i b i t
a t ta c h e d
h e r e t o
and
m a d e
a
art
h e r e o f
as
f
ully
s e t
forth
h
en,
wll
be
l e a s e d
to
RDP
by
the
gency
or
th e
Cty,
as
a:>
licable, (
t h e
Lessor )
pursuant
to
a
round
lease (
the "
Gound
L:se")
havng
he
f o l l o w i n g p r o v i s i o n s :
5
1
tle.
The
e x e c u t i o n
o the
A g r e e m e n t s
by
DP
wll
be
conditioned
upon
fee
title
to
the
and
e i n g
good,
marketable
and
nsurable
subject
ony
o
m a t t e rs
reasonably
a c c e p t a b l e
to
DPi provded
however,
hat the
Lesso
is
o
r e s p o n s i b l e
fo
tle
a t te r s
p e r t a i n i n g to
he S h o r e c r e s t
Hotel
land
tha
ffect
on c u m b e r
that
and
s
o
he
dae
a s s i g n m e n t
rom
DP
to
he
Lessor
o
esso
sffiliate
o
ny
c o n t r a c t
to
u r c h a s e
that
land.
Ate
e x e c u t i o n
o
he
g r e e m e n t s
and
the
e c o rd in g
o
he G r o u n d
Lease,
the
essor
wll
ot
further
encumber
such
title
to
he
and
except
wth
espect
to
hose
matters (such
s
utility e a s e m e n t s and
o n -
m o n e t a r y
reciprocal
easement
a g r e e m e n t s )
reasonably
a p p r o v e d
b
DP
and
which
do
no
d v e r s e l y affect
the
operat ion
o
e v e l o p m e n to
he
Hotel
as
cal led
for h e r e i n .
The
an d
wll
be
e a s e d
to
D P
on
an
as
is
asis
a
he
time
o
x e c u t i o n
o
the
G r o u n d
L e a s e .
5
erm.
O n e
h u n d r e d (
100
e a r s .
5
3
ase
Ren.
DP
shal
pay
to
he
L e s s o r
base
rent
in
the
amount
o $
220,
000.
00
per
year,
payable
m o n t h l y (
he
as e
Rent ),
commencing
on
the
opening
da t e
o
he
Hotel (
the
O p e n i n g
Date").
he
Base
Rent
shal
be
i n c r e a s e d
at
the
e g i n n i n g
othe
tenh(
0th),
ifteenth (
15th)
and
t w e n t i e t h 20h)
years
from
theOpening
Date
b a s e d
upon
the
i ncrease in
heGDP
implicit
price
d e f l a t o r index.
In
no
vent
sha l lthe
as e
Rent
during
any
p e r i o d
be
ess
than
the Base
Ren
duing
any
pr ior
p e r i o d .
5
Addtona
Rent.
-
8/15/2019 97-22316 RESO
17/48
270,000
00
pe
ear,
payabe
monthly (
the
l A d d i t i o n a l Rent ),
c o m m e n c i n g
on
he
Openng
Date.
The
d d i t i o n a l
Ren
ha l l
be
increased
at
the
beginning
o
the
tenth (
the),
ifteenth
15th)
and
we n t ie t h ( 20th)
years
from
the
O p e n i n g
Date
based
p o n the i n c r e a s e
in
he
GDP
mplicit
pr ice
d e f l a t o r index.In
o
even
shal
the
d d i t i o n a l
Rent
d u r i ng
any
period
be
ess
han
the
d d i t i o n a l
Rent
during
any
rior
p e r i o d .
5
n c en t i v e
Rent.Ind d i t i o n
to
the
ase
Rent
and
the
A d d i t i o n a l
Rent,
RDP shaaso
pay
to
he
Lessor
incentive
r e n t equalto
w e n t y 20%
percent
o
tha
mount
o
the
n n u a l
gross revenues from
the
peration
o
he
Hoe
thaxceeds
s e v e n t e e n
million
nne
undred
t h o u s a n d
dollars
17
900,
000)pe
ear,
payable thrty(
30
ays
after
year-
end (
the"
ncentive
Ren".
The
I n c e n t i v e
Rent sha
be
apped
a
tw
undred
thousand
do l l a rs ($
200
000
pe
year;
prov ided,
however,
that
any
Incentive Ren
ove
wo
hundred
thousand
doas($
00 ,
000)
per
year sha
not
be
carried
forward.
5
u b o r d i n a t i o n
o
e n t a l
P a y m e n t s .
5
6
1
S u b o r d i n a t i o n
o
Ren.
In
he
v e n t
o
defaut,
ena
a y m e n t s
to
be
mde
by
RDP
tohe
Lessor
unde
the
G r o u n d
Lease
shal
be
u b o r d i n a t e d ,
as
r o v i d e d
h e r e i n b e l o w ,
onyo
d e b t service
on
he
firs
ten
i l l i o n dolars ($
10
00,
000)
o
a
hirty
one
million
dollar
31
00
00)
loan (
he"
o a n ) . N o t w i t h s t a n d i n g
a n y t h i n g
to
the
o n t r a r y ,
the
foresaid
s u b o r d i n a t i o n
orena
p a y m e n t s
shall
no,
a n d does
ot,
mean
that
the
proprietary
interest
o
the
A g e n c y
inthe
Landis
u b o r d i n a t e
to
nything,
i n c l u d i n g
bu
no
l i m i t e d
to
he
Loan,
is
n c u m b e r e d
o
subject
to
being
e x t i n g u i s h e d .
5
6
efault
bv
RDP
AIn
the
v e n t
o
deaut
unde
the
Ground
L e a s e
byRDP
the
e s s o r
sha
h a v e
th e
r ight
to
mong
o t h e r r e m e d i e s ,
terminate
the
r o u n d
Lease
subject
to
the
Lender
s(
efined
in
s u b p a r a g r a p h
5
9
2
ereinbelow)
cue
rights
as
et
forth
h e r e i n b e l o w
in
ubparagraph
5
2
B
In
he
event
o
a
e f a u l t
unde
the
Ground
Lease
by
RDP
Lender
sha
have
the righ
to
m o n g
ohe
remedies,
cue
any
m o n e t a r y
and/
or
non
onetary
d e f a u l t s
whn
ime
peods
to
-
8/15/2019 97-22316 RESO
18/48
Lessor
may
no
termnate
the
Ground
Lease.
While
prosecuting
the
foreclosure
action
as
dscussed
above,
Lender
is
required
to
make
RDP
s
monthly
renta
payments
only
to
the
extent
sufficientfunds
are
received
by
Lender
from
operating
income from
the
Hoe after
deducting
a
sum
equal
to
the
amount
necessary
to
pay
monthly
debt
servceon
the
Loan
wth
regard
toa
principal
amount
o
ten
mllion
dolars ($
1000,
000,e s s
the
m o u n t
o p r i n c i p a l
paid
to
dae
a n d o p e r a t i n g e x p e n s e s . cn
th e
eveno
a
defaut
u n d e r
the
ortgage,
the
r o u n d
L e a s e
shal l
noe
in
e f a u l t
so
ong
as(
i)ender
gves
the
e s s o r
written
noce
oaid
d e fa u l t
wthn en
10
ays fter Lender b e c o m e s a w a r e
osame;
and (ii)heGounde a s e
is
no t
otherwise
inefaut.
D
hroughout this
Leter
o
Intent,
or purposes o
calculating
the
mount
o principal
o u t s t a n d i n g unde
the
first ten
million d o l l a r s ( $
10
000
000
otheoan
to
w h i c h
ren
a y m e n t s
are
s u b o r d i n a t e , the
appl ica t ion o
p r o c e e d s
f r o m
the
aeoe a s e oa m p '
s
e s t a u r a n t
sha
no be included
and
the
enmonollars ($
10,
000
00)
towhch
ren
a y m e n t s are
s u b o r d i n a t e
shal
be
assumed
to
e
reduced
o m m e n c i n g
on
the
Opening
Date,
by
m o r t i z a t i o n on
a
ortgage
bass on
a
wenty-
fve(
5)
yearterm
athe
nterest
r a t e
o
heoan. 5
6enderAenant
U n d e r
the
Gound
L e a s e .
Ifender
b e c o m e s
the
e n a n t
under
the
Ground
L e a s e , hen
in
tha
vent:
A
e n de r
sha
be
b l i g a t e d
to
ay
the
Lessor
alurrent
renaa y m e n t s
due
under
the
Ground
L e a s e
and
compy with
al
oher
c o v e n a n t s and conditions o
the
round
Lease
d u r i n g
the
p e r i o d
Lender
ishe
e n a n t .
B
he
amun
o
unpaid
ren
existing as o
theime
Lender
b e c o m e s
the
tenant (
the
e i n s t a t e m e n t Date"),
n c l u d i n g
accrued
interest (
a
hedefautrae
p e c i f i e d
in
he
Mortgage),
t t o r n e y s '
-
8/15/2019 97-22316 RESO
19/48
the "Back
Rent"),
shal
be due and
payable
by
Lender
tothe
Lessor as
folows:
i)
During
the
period
in
whch
any
part
o
the firsten
mllion
dolars ($
10,
000
00)
in
rincipal is
outstanding
under
the
orignal
oan,he
Agency
shalbe
pad
ac k Rent
monthlyto
he
exent
funds
ae
vailable
fromo p e r a t i n g income
from
the
o t e l
after
deducting
a
um
equal
to
he debt
service
on
the
o an
w i t h
regard
to
a
r i n c i p a l a m o u n t
equa
to
ten m i l li on
dolars
10, 000,
000)
esshe
p r i n c i p a l
o
the
Loan
actualy
pad,to
ae
nd
o p e r a t i n g
e x p e n s e s whch
i n c l u d e s
current rent)o
heHoeii)
terthe
irst
ten
mllion
d o l l a r s
10
00,
000) (
i n c l u d i n g
p a y m e n t s pio
to
defaut)
n
principa
has
been
pad
to
ender, the
Lender
sbl igations to
payBack
Rent
under
the
G r o u n d
Lease
sha
be
s u b j e c t
ony
to
the
p a y m e n to
perat ing
expenses
on
a
o n t h l y
bass
iii)
Back
R e n t wll
c o n t i n u e
to
accrue wth
n t e r e s t
until
paid
in
ful.5
6
4ale
o
he
Hoe
bv
L e n d e r .
Upon
a
ale
o
the
o t e l (
asescribed
in
a r a g r a p h
1
e r e i n a b o v e )
by
Lender,
the net
sae
roceeds,
to
the
extent
same
are
avalabe,
shal
be
appl ied
inhe
following
oder:
i )
to
repay
Lender
fo
m o u n t s
owed
on
the
firs
ten
mon
d o l l a r s ( $ 10,
000,
000)in
r i n c i p a l
ess
r i nc ipa l
paid
to
ate
pus
al
a c c r u e d i n t e r e s t
thereon;
ii)
orepay
the
essor
for
amounts
owed
in
onnection
wthBack
Ren
iii)
to
r e p a y
Lender
for a m o u n t s
c o n n e c t i o n
wth
ny
remaining
principa
a c c r u e d
interest,
costs
and
e x p e n s e s ;
owed
plus
in
al
v
toay
L e s s o r
al
accrued
interest
on
Back
Ren;
a n d
vo
ay
to
Lessor
the amount
o
the
Purchase
Price (
efined
in
subparagraph
50
1
h e r e i n b e l o w ) .
A
he
em"
e
-
8/15/2019 97-22316 RESO
20/48
an
unreated
third
party,
the
amount o
the
selling price
minus
brokerage
commissions,
taxand
oher
prorations
and
al
reasonabe
and
customary
closing
costs.
B.
The new
amount
to
whch
the
Lessor's
interest in the
rena
payments
under
the
Ground Lease
shal be
subordnate
ate
the sae o the Hoe
by
Lender
shal
neve
exceed
the
baance
on the
origna
firs ten
mllion dolar ($
10
00
000)
subordinated
a m o u n t
aterdeducting
al
p r i n c i p a l
payments
r e c e i v e d
by
Lender up
o
thetime
o
he
sae
5
.5
e f i n a n c i n q
No
Related
to
a
eaut.
he
ner o c e e d s f r o m any
r e f i n a n c i n g
not
related
to
a
e f a u l t by
RDP
hal
b e
a p p l i e d in
the
f o l l o w i n g
order:
i
o
the
City
o
theAgency,asp p l i c a b l e ,to
a y
the
Puchase
P r i c e (
as
e f i n e d
in
u b p a r a g r a p h 510
h e r e i n b e l o w )
to
b u y o u t
the
gency
s
o
the
Cty'
s as a p p l i c a b l e ,
i n t e r e s t
in
heandi
and
ii) toDPifny
funds
are
remaining.
A.
The
ew
a m o u n t
to
whch
the
esso r '
s
nterest
inhe
ena
ayments
under
the
ound
Lease
shall
be
s u b o r d i n a t e
after
refinancing
shal
never exceed
the
baance
on
he
origina
first
ten
llion
dolar
10,
000
000)
u b o r d i n a t e d a m o u n t after d e d u c t i n g
al
principa
p a y m e n t s r e c e i v e d by
e n d e r
pio
tothe
im e o
the
ef inanc ing.
Bhe
term "
ne
proceeds"
as
used
in
hs
subparagraph
5
6
hal
mean
the
new
oanamoun
ate
efinancing
mnus
the
outstanding
oan
b a l a n c e
and
nterest
owing
before
r e f i n a n c i n g
m i n u s
r e a s o n a b l e
refinancing
t r a n s a c t i o n
expenses
and
r o k e r a g e
c o m m i s s i o n s .
5
ea
s ta te
Taxes.
RDP
s h a l l
pay
al
ad
valorem
rea
esae
a x e s
and
e r s o n a l
p r o p e r t y
taxes
c o n c e r n i n g the Hoe
l e v i e d
by
the
it y
and
other
governmental a u t h o r i t i e s
in c c o r d a n c e
wth law.
RDP
wll
be
nt i t l ed
-
8/15/2019 97-22316 RESO
21/48
avalable, under
applicable
law, as if
it
were
the feeowner
o
the land
5
8
E n v i r o n m e n t a l
Indemnitv.
5
8
1
he
Agency o
the
ty
as
e s s o r ,
as
p p l i c a b l e ,
wll
provde
an
n d e m n i t y
to
DP,
reasonably
s a t i s f a c t o r y to
RDPith
respec
to
the
remediation,
as
descrbed
in
the
g r e e m e n t s ,
on v i r o n m e n t a l m a t t e r s
affecting
the
and
and
the
m p r o v e m e n t s t h e r e o n whchx i s t priorto
he
e x e c u t i o n o
the
r o u n d
Lease
58
2
RDP
will
provide
anindemnityto
he Agency
a n d /
o
the
Cy
e a s o n a b l y s a t i s f a c t o r y
to oth
o h e m ,
wth
respec
tothe
emediation,
as
e sc r i b e d
in
the A g r e e m e n t s ,
o
n v i r o n m e n t a l
matters
a f f e c t i n g theLand
and
them p r o v e m e n t s
t h e r e o n arisingfrom
andatehe
execution
o
the
Ground
Lease.
5
8
3
limitations
o
liability
wll
a p p l y
wth
respect
to
the foregoing i n d e m n i t i e s .
5
9
inancinq.
Any
f i n a n c i n g
secured
by
the
Gound
ease
o
otel,
and
any
e f i n a n c i n g s
thereof ,
wll
be
r o v i d e d
by
an
i n s t i t u t i o n a l
lender
subectohep p r o v a l
o
the
g e n c y
and/o
he
Cty
59h e
t e r m
i ns t i t u t i ona l
lender
means
a
erson
whch,
a
he
time
it
ecomes
an
nstitutional
lender,
is
a
sate
o
f e d e r a l l y
chartered
savings
bank
a v i n g s and
oan
association,
credit
unon
o m m e r c i a l
b a n k
or
rus
o m p a n y
o
o r e i g n b a n k i n g
institution (in
achcase
whether acting
n d i v i d u a l l y
o
n
i duc iary
or
r e p r e s e n t a t i v e (
such
as
n
agency)
capacity);
an
n s u r a n c e c o m p a n y
organized
and
exsting
u n d e r theawso
theUnted
ta tes
or
an y
sate
h e r e o f
o
o r e i g n i n s u r a n c e
company (in
eachcasehether acting
i n d i v i d u a l l y
or
in
iduc ia ry
o
epresentative (such as
an
gency)
capacity);
an
i n s t i t u t i o n a l
investor such as
a
ublicly hed
r e a l
e s t a t e
investment
trust,an
entity
that
qualifies
as
a
E M I C
under
thenterna
Revenue
C o d e
o
986,
as
m e n d e d ,
o
ther
pubc
o
ivate
n v e s t m e n t
entity (
in
each
case
wheher
act ing
as p r i n c i p a l
o
gent);
a
r o k e r a g e o
i n v e s t m e n t
banking
organization (
in
each
case
whether
act ing
individually
o
in
a
i d u c i a r y
o
e p r e s e n t a t i v e (
such
a
ngency)
c a p a c i t y )
as
rincipal
o
agent);
an
m p l o y e e s '
w e l f a r e ,
beneit,
pension
o
r e t i r e m e n t
und
n institutiona
leasing
company;
any
g o v e r n m e n t a l
a g e n c y o
entity
insured
by
a
o v e r n m e n t a l
agency
o
-
8/15/2019 97-22316 RESO
22/48
an
institutiona ender
only
if (
at
the
time
it
becomes
an
institutiona
lender)
it
shal (i)ave
assets
o
no less
than $
100
00,
000d j u s t e d for
inflation a n d (
ii)noe
an
a f f i l i a t e
o
RDP
it
eng further a g r e e d
that
none
o
the
t a n d a r d s
se
foth
in
his
definition
s ha l l
be
p p l i c a b l e
to
participants
or co -
lenders
in
a
o a n
secured
bymortgage
w h i c h
is
hedy
an
inst i tu t ional
ender
w h e t h e r a c t i n g
i n d i v i d u a l l y
o
n
a
i duc iary o r e p r e s e n t a t i v e (
such
as
n
agency)
capacy.
Theerm
institutional l ender
aso
n c l u d e s an
afiliae
on institutional l e n d e r as
described
in
hs
ubparagraph
5.
9
5
RDP
hal obta in a
i n d i n g
loan commtment
f rom an i n s t i t u t i o n a l lender (
he"
ender )
in
he
a m o u n t o no
e s s than thirty
on e
million
d o l l a r s ( $
31
000
000)
fo
he
o n s t r u c t i o n
o
he
Hotel.
Aopy
o
the
e x e c u t e d
oan
o m m i t m e n t
shall be
elivered
tothe
g e n c y
andthe
it yno
ater
than
sixty (60ays
atehe
execution o
ths
etter
o
I n t en t . Alothe
ermsand
o n d i t i o n s o
sad
oan c o m m i t m e n t
shall
bein
orm
and
substance
r e a s o n a b l y
s a t i s f a c t o r y
to
the A g e n c y
and
theity.
9
3
ll l e n d e r s
sha be
r e q u i r e d
to
sendc o p i e s
oal
efault
notices
o
oher
o t i c e s r e l a t i n gto
theailure
to
eep
he Loan in
good sandng,
w h i c h
are
sent
p u r s u a n t
to
a
loan documento
security
document to
RDP
o
he
u a r a n t o r s ,
to
the
Cty
and
the
Agency.
5
9
Al
lenders
s h a l l
comply
with al
r e a s o n a b l e
e s t o p p e l
requests
o
he
Cty
and
the
g e n c y .5
0
P u r c h a s e
o
Aqency
s
Interest.
5
0.
1
he
Ag~ny
o
the
i t y ,
as
ppicable,
each
a
its
o le
o p t i o n
and
a ch
in
ts sole
discret ion,
m a y
requi re
RDP
to
u r c h a s e
omke
nstallment
P a y m e n t s
def ined
in
u b p a r a g r a p h5
05
hereinbeow)
toward
the
u r c h a s e o
heg e n c y '
s
nterest
in
the
Land
a
the
urchase
pice
o
ten
million
d o l l a r s ( $ 10,
000
00)
plus
thee q u i r e d
return (
r e f e r r e d
to
in
u b p a r a g r a p h s
5
10
3nd
5
0
4
hereinbelow) (
the "
P u r c h a s e
Pce)
t
thetme
o
each
efinancing,
which
ref inancing
shall
occu
on
o
pio
tothe
egnning
o
the
fifth(
th),
enh(
0th)
and
wenty-
fifth (
25th)
e a r s
after
the
p e n i n g Dae
n d every
ten (
0)
years
thereafter, tothe
exen
r e f i n a n c i n g
-
8/15/2019 97-22316 RESO
23/48
wth
the
formuaset
forthin
subparagraphs
5
10
3,
5
10
4
nd
5
0
5
e r e i n b e l o w . A
The Agency
o
he
Cty, as
a p p l i c a b l e , each
a
its
soe
option
and
e a c h
in
its
soe
dscreon,
my
asoe q u i r e
RDP
to
urchase,
o
mke
n s t a l l m e n t P a y m e n t s (
defined
in
subparagraph 5
10.5
h e r e i n b e l o w )
t o w a r d s
theu r c h a s e
o,
heg e n c y '
sn t e r e s t
in
the
and any
tim
hat
RDPo l u n t a r i l y
refinances
th e Hotel
to
th e
exen
tha
et
proceeds
as
d e f i n e d
in
s u b p a r a g r a p h 5
5B
are
avalable.B
o t w i t h s t a n d i n g
anythng
in
thsu b p a r a g r a p h
10
1
to
h e
contrary,
r o v i d e d
that
RDP
h a s
not
previously
p u r c h a s e d
the
A g e n c y 's
nterest,
RDP
shall
p u r c h a s e
the
Agency
s
n t e r e s t
in
the
Land
in
its
ent i rety
and
at
the
full P u r c h a s e
Price,
ess
any
I n s t a l l m e n t
P a y m e n t s (
d e f i n e d
in
u b p a r a g r a p h
5
0.
5
e r e i n b e l o w ) p r e v i o u s l y
made
by
RDP
a
he endo
the
w e n t y -
fifth (
25th) year after
the
pening Date; u n l e s s
the
gency
o
the
ty
as
a p p l i c a b l e ,
e a c h
a
ts
soe
p t i on
and
eachn
itso le d i s c r e t i o n ,
notifies RDP,in
riting, that
theg e n c y
o
theCtyis
r e s c h e d u l i n g
ths
u r c h a s e
o
its
i n t e r e s t asforesaid
to
ater
date,
which
lae
ate
sha
be
decided
upon
so l e l y
byhe
Agency
ohe
i t y .
In
the
evenhe A g e n c yo
he
Cty
e s c h e d u l e s this
purchase
as
foresaid,
then,inhat
event
ony,
there
shall
be
no
urther
s u b o r d i n a t i o n
o
the
e s s o r ' s
interest
inhe
rental payments
un d er
the
round
Lease.
510.
2
DP
mus
pay
he
enire
Puchase
Pr ice
u p o n
the
occurrence
o (
i
ny
sae
ohe
Hote (
as
h e r e i n a f t e r
d e f i n e d ) ,
subject
to
he
provsions
of subparagraph
63e r e i n b e l o w
and
a r a g r a p h
12 h e r e i n b e l o w ,
o(
i)he
expi rat ion
o
twenty-
five(25)
ears from
theOpening
Dae
ubject to
the
rov isions oubparagraph
5
0
1
B
e r e i n a b o v e ,
whchever
o c c u r s
first.
5
10
3
u r c h a s e
Price
ifPad
Within
Ten (
10
e a r s
fromthe
peninq
Date.For
the
en (0)
year
period c o m m e n c i n g
wth
the
p e n i n g
-
8/15/2019 97-22316 RESO
24/48
by
RDP,
cacuated
as
a
return
on
the amount
o
five
mllionfive
hundred
thousanddolars
5
500, 000)
o,
aso
the
dae
o
ny
Installment Payments,
such
esse
a m o u n t
ate
deducting
any
Installment
Payments made
prov ided ,
however,
tha
each I n s t a l l m e n t
Payment
shall
be
o u n t e d
ony
n c e
fo
purposes
o
ths
ubparagraph
5
10
3
nd subparagraph
5
0. 4e r e i n b e l o w ) ,
and
giving
RDP
a
credit
fo
l
Base
and
f i f t y -
five percent (
55%)
ony I n c e n t i v e
Rent
padPLUS
B
T h e
sumo
ive
nd
a
haf
m i l l i o n
dolars
5
500,
000);
P L U Sc
he
mount
requ i red
for
the
gency to
a c h i e v e
an
i g h t
percent (
8%
er yea
v e r a g e r e t u r n , from
he
O p e n i n g
Dae
to
the
dae
o
aymentby
DP
c a l c u l a t e d
as
a
eturn on
he
a mo u n t
o
fou
illion
fve
undred
thousand
dolars
4
500
000
o,
as
o
he
date
o
any
n s t a l l m e n t
P a y m e n t s , such
lesser
amount
after
deducting
a n y
I n s t a l l m e n t
Payments
m a d e
provded
however,
that
each
I n s ta l lm e n t
P a y m e n t
sha be
c o u n t e d
ony
nce
fo
u r p o s e s
o
his
subparagraph
5
10.
3
nd
s u b p a r a g r a p h
5
0
4
h e r e i n b e l o w ) ,
and
gving
RDP
a
reditfo
al
d d i t i o n a l
Ren
p a i d
and
orty-
five
percent (
45%
any
n c e n t i v e Rent
pad
provided,
h o w e v e r ,
t h a t
any Incent ive
R e n t
pad
after
th e
a m o u n t s
referencedin
subparagraph
5
0.3
A
e r e i n a b o v e
have
been paid
sha
be
redi ted a
one
undred
p e r c e n t
100%
PLUS
D
he
sum
o
ou and
a
af
million
d o l l a r s4
00,
000
5. 10.
4
u r c h a s e
Price
if
ad
f t e r
Ten
10) Years
f r o mthe
p e n i n q
D a t e .
Forthe
period
after
ten (
10
e a r s
have
e l a p s e d
from
the
O p e n i ng
Date,
the
urchase
Price shall
be
alculated
as fol lows:
A
h e
sum
of
the
amounts
s t a t e d
in subparagraphs
5
10.
3
A
Band
D e r e i n a b o v e ; PLUS
B
he
a m o u n t
r e q u i r e d
for
the
Agency
to
a c h i e v e
a
en
-
8/15/2019 97-22316 RESO
25/48
Instalment
Payments,
such lesser
amount
after
deducting
any
Instalmer..t
Payments
made
provided,
however, that each
Instalment
Payment
sha
be counted
only
once
fo
purposes
o
subparagraph
5
0.
3
hereinabove
and
ths
u b p a r a g r a p h
5.
104nd
gvng
DP
a
redit
fo
al
Additional
Rent
paid
and
orty-
five percent (
45%
any
Incentive
Rent
paid,
provided,
h o w e v e r ,
tha
any
n c e n t i v e
Ren
p a i d
ate
hea m o u n t s
r e f e r e n c e d
inu b p a r a g r a p h5
03
A
h e r e i n a b o v e
have
een
pad
sha
be
credted
ne hundred
percent 100%5
10
5
n s t a l l m e n t
P a y m e n t s .
Installment
payments
I n s t a l l m e n t
Payments )
t o w a r d s
the
Purchase
Pce
ca n
be
mde
ony
nhe
foowng
m a n n e r and
subject
to
he
o l l o w i n g
conditions:
A
Alnstallment
P a y m e n t s are
non-
r e f u n d a b l e .
B
ll
rental
paymens
under the Ground Lease
sha
c o n t i n u e
to
eue
andp a y a b l e
by RDP
notwithstanding
the
act
that
I n s t a l l m e n t
P a y m e n t s have
been made
until s u c h
time
as
he P u r c h a s e
Pce
as
e e n
pad infu.A
h e timef
final
paymen
o
he
Purchase
Price
in
fu,
DPhall r e c e i v e ared
t
o
I n s t a l l m e n t
Payments
m a d e
aong
wth
th e
appropriate
c r e d i t
fo
a
Ground
Lease r e n t
pad,
s a p p l i c a b l e ,as
rovided
a b o v e .
c
roceeds
oa ch Installment P a y m e n t
wll
be
pplied
to
the
u r c h a s e
P r i c e
in the
s a m e
o r d e r as
lised
fo
h e
amouns
stated
in
subparagraphs
5
10
3
B
C
nd
D
D
h e
foegong
s u b p a r a g r a p h
5
10
5
C
h e r e i n a b o v e
applies
to
In s t a l lm e n t
P aym ents
made
w i t h i n
ten (10
ears rom
he
Opening
Date.
If
n s t a l l m e n t
Payments
are
mde
after ten (10
ears
from
he
O p e n i n g
Dae
t h e n ,in
tha
e v e n t ,
the
r e f e r e n c e s
to
u b p a r a g r a p h
510
3
a re
d e e m e d
to
e a n
5
0.
4
to
ccount
forthe
n c r e a s e d
average
r e t u r n
from
egh
percent (8%
o
ten
p e r c e n t (
10%
nthe
o u r
and
a
-
8/15/2019 97-22316 RESO
26/48
the
Land to
RDP
and theLessor
shal
termnate
the Ground
Lease.
The
conveyances
to
RDP
shal be
subject
to
any
state o
facts
a
survey
may
revea and
to
permitted
exceptions
and
oher matters
described
in
the
Ground
Lease and ohermatters
whch
RDP
may
consent
to
in
writing.
Each
party
shal
pay
its
