264-97 rda
TRANSCRIPT
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RESOLUTIONNO.
2 6 4 -
97
E S O L U T I O N
OHE
CHAIRMAN
AND
M E M B E R S OF
HE
MAM
EACH
REDEVELOPMENT
A G E N C Y
APPROVNGAND
AUTHORIZING THE
CHAIRMAN
AND
SECRETARY
TO
EXECUTE,THET T A C H E D
LETTERO
NTENT
B E T W E E N
TH E
CTY
OFIAMI
BEACH,
THE
MAM
EACH
E D E V E L O P M E N T
AGENCY,
RDP ROYAL
PALM
HOTEL
LIMITED C O M P A N Y
AND
DPHORECREST
HOTEL
LMTED
C O M P A N Y
REGARDING
THE
W N E R S H I P , DEVELOPMENT AN D
O P E R A T I O N
OA
CONVENTION
HOTEL.
W H E R E A S ,
RDP Royal Pam
Hote
Limited
C o m p a n y (
RDP Royal
Pam)
wa s s e l e c t e d
as
he
i n n i n g
bdder
in
response
to
Request
fo
P r o p o s a l s
N u m b e r
45
95
96 ("
RFP")
o
develop,
own
and
operae
an
fr ican-
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 ;
andH E R E A S ,
r e p r e s e n t a t i v e s
of
the
R e d e v e l o p m e n t
Agency (
RDA"),
he
City
o
M i a m i
Beach (the "
City"),
RDP
oyal
Pam
and
RDP
S h o r e c r e s t
Hotel
Lim i ted C o m p a n y ( c o l l e c t i v e l y ,
RDPoyal Pam
and
DP Shorec res 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
to
s
RDP")
a v e b e e n engaged in
n e g o t i a t i o n s
fo a
um be r
o
o n t h s
regarding,
among
other
things,
he
d e v e l o p m e n t ,
ownership
and o p e r a t i o n
o
he
proposed
h o t e l ; and
W H E R E A S ,
t h e d e v e l o p m e n t
of
he
hotel
isa
art
of
and
is
cons i s t en twth
the
Cty
e n t e r
Hstoco 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
e v i t a l i z a t i o n
Plan
and
w i l l
e l i m i n a t e
s lum
and
bigh
in
the
Cty
e n t e r
Hstoc
o n v e n t i o n
V i l l a g e
Redevelopment an d
Revi ta l izat ion
Area;
and
W H E R E A S
th e
d e v e l o p m e n t ofthe
hote l
is
au b l i c
p u r p o s e
a n d
wll
ene f i t
the
public
by,among o t h e r
thngs
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
hotel
r o o m s
in
h e
Cty
ssisting
he
Cty
n
ttracting c o n v e n t i o n s
and
ncreasing
the
u t i l i za t ion ofthe
Convent ion
C e n t e r ,
increasing
t o u r i s m
andm p r o v i n g
the
c o n o m y ;
an d
W H E R E A S ,
the
deve lopmen t
of the
hotelas
e s c r i b e d
in
the
a t t a c h e d
leter
of
intent
LOI")is
uthorizedbyh a p t e r
163
o
he
F l o r i d a
Statutes;
and
W H E R E A S ,
r e p r e s e n t a t i v e so
the
D A ,
the
Cty
n d
R D P ,
sub j e c t tohe
a p p r o v a l
o
the
D A
andhe C i t y, have
nego t i a t e d the
terms
o he LO I
attached
hereo
OW,
T H E R E F O R E ,
BE
T
DULY
E S O L V E D
BY
THE
HAIRMAN
AND
EMBERS
OF
THE
M I A M I
BEACH R E D E V E L O P M E N T
AGENCY as
fo l lows:
1
The
a t t a c h e d LOI
b e t w e e n
the
RDA
the
Cty
nd
RDP
is
e r e b y
a p p r o v e d .2
The
h a i r m a n and
M e m b e r s h e r e b y
f i n d
that
the
e v e l o p m e n t
ohe
hotel
is p u b l i c
p u r p o s e ,
wi l l b e n e f i t
th e
pubicnd
is
a
art
o
and
is
onsistent
with
theity
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3The
h a i r m a n
and
M e m b e r s
h e r e b y
find
that
the
e v e l o p m e n t
ofthe
H 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 n
and
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 iator, Executive D i r e c t o r
and
General
C o u n s e l ,
andtherrespective s ta f f sandu t s i d e
c o n s u l t a n t s ,
areauthorized to
negotiate
and
o c u m e n t
the
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
he
LOand
a k e
al
he
a c t i o n s
ino 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
ake
f f e c t immediately
u pon
a d o p t i o n . PASSED
and
A D O P T E D
t h i s
5th
M a r c h
T T E S T
J?
c>
LcM
d-
tM
cb S E C R E T AR Y AITlkwf\
ato
aca\
r e s o s \
aaloiexe.
rda
A P P R O V E D
AS
TO
F O R M &
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Miami Beach
Redevelopment
Agency
1700
onvent ion Center
Drive
Miam Beach,
Forida
33139
Teephone (
305)
673
1 9 3
Fax: (
305)
673-
7772E D E V E L O P M E N T
AGENCY
M E M O R A N D U M
NO.
97
6
A T E :
Mach
5
1997
TO
Chairman
a n d
embers
o
the
oad
f
the
e d e v e l o p m e n t
Agency
FROM
Jose
oarC ia -
pedrotCa
Execu t i ve
Director
R E S O L U T I O N
P R O V I N G
A
E T T E R
O
NTENT
A M O N G
THE
RDP
OYAL
PALM
HOTEL
LTD.
CO
AND
DP
S H O R E C R E S T
HOTEL
LTD
CO(
O L L E C T I V E L Y
RDP),
THE
CTY
O
IAMI
BEACH
AN D
THE
MAM
BEACH
R E D E V E L O P M E N T
AGENCY
FOR
THE
OWNERSHIP,
D E V E L O P M E N T
AND
OPERATION
OF
AN
F R I C A N
AMERICAN
OWNED
HOTEL
AT
1535
N D
1 5 4 5
COLLINS
AVENUE.
S U B J E C T :
R E C O M M E N D A
TON
p p r o v e
the
e s o l u t i o n .
B A C K G R O U N D :
Staff
a n d
c o n s u l t a n t s
for
the
e d e v e l o p m e n t
A g e n c y (
R D A )
and
o m m i s s i o n
have
e g o t i a t e d
a
roposed
l e t te r
o
ntent (
LOl) (
t t a c h e d
h e r e t o )
fo
a
25-
room
hotel
c o m p r i s e d
of258
hote l
rooms
and
167
hoe
suites.
On
June
5
1996,
he
RDA
e lec ted
the
DP
Royal
Palm
Hotel
Ltd.
Company,
f t e r
an
x h a u s t i v e
p u b l i c
r e v i e w
p r o c e s s ,
to
negotiate
the
terms
n d e r
w h i c h
RDP
woud
develop,
ow n
and
o p e r a t e
a
convent ion
hote l
on
the
oyal
Palm
property
and
o p t i o n a l l y
on
the
adjacent
Shorecrest
p r o p e r t y .
Athe
time,
he
eve lope r
had
he
S h o r e c r e s t
H o t e l
u n d e r
c o n t r a c t and
the
successful
p r o p o s a l
c o n t e m p l a t e d
d e v e l o p m e n t of
both
s i tes
operated
under
u n i f o r m
m a n a g e m e n t .
T h u s ,
the
ity
dd
no
a v e
ste
ontrol
on
al
of
the
and.
For
m a n y
months,
he
City'
se g o t i a t o r s
and
taff,
o r k i n g
ina r m o n y
with
Don
eebles,
th e d e v e l o p e r
on
the
LO,
struggled
to pu
th e
d e a l t o g e t h e r
u n d e r
tructure
o
wo
s e p a r a t e o w n e r s h i p s
of
lad
o
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In the
last two
weeks,
by
unanimous consent,
the
chief
nego t ia to r
for
the
RDA
and
Mr.
P e e b l e s
came
toa
conclusion
that
the
s i ng l e -
site
owne rsh i p
was
preferable
and
Mr.
Peebles
ag r e ed
to
transfer
his
contract
interest in
the
Shorecrest
to
the RDA (
fee
and
leasehold).
As
a
result
of
the
agreement,
the
RDA
and Peebles
moved
rapidly
to
a
mutually
accep t ab l e
LOr.
The
LOI,
before
the
RDA
and
City
Commission,
therefore
con t em p l a t e s
com p l e t e
site
control
in
the
hands ofthe
RDA,
as is the
case with the
Loews
Hotel.
The
RDA
made
a
commitment
toall RFP
r e s ponden t s
that
its
f u n d i n g
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
eceive
ren
under
certan
i r c u m s t a n c e s
to
the
first $
0
million
in
i n a n c i n g
r e l a t i n g
to
ther o j e c t .
I n a s m u c h
as
he
cos
of
a c q u i s i t i o n
o
he
oyal
Pam
was $
5
5
illion,
and
the
p r e v i o u s l y
a g r e e d
upon
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$1i l l i o n .
The
a d d i t i o n a l
costs
ove r $10
i l l i o n
w i l l
be
borne
by
P e e b l e s
and
not be
ao s t
b u r d e n
o
the
ity
o
he
RDA.It
has
e e n
mutually
a g r e e d
between
th e
RDA
and
Peebles
that
Pe e b le s
will
come
up
with
a n y
additional
c o s t s
over
he$
10 i l l ion
tha
relate
to
a c q u i s i t i o n
of
the h o r e c r e s t .
The
LO
c o v e r s ,
among
other
t h i n g s ,
the
e n t
tha
he
RDA
wll
eceive
from
the
e v e l o p e r , the
d e v e l o p e r '
s
m a n c i a l
involvement,
ou ts i de
f u n d i n g ,
q u e s t i o n s
of
sae
o
theh o t e l ,
p e r a t i o n s , quality
of
the
lag
p a r k i n g
anduse
of
the
RDA'sa r k i n g
garage.
The
O
f o l l o w s
the
basic
format
o
the
Loewg r e e m e n t e x c e p t
that
th e Loews
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
o fthei g h t
to
e c e i v e
ren t
by
he C i ty.It
h o u l d
be
noted
that
th e
s i gn in g
o
h e
L O I is
ust
one
s tep
in
movng
f o r w a r d .
It
is
the
l u e p r i n t
for
the
e f i n i t i v e
a g r e e m e n t s .
If
he
next
d o c u m e n t s
to
be
g r e e d
upon
ae
u n a c c e p t a b l e ,
the LO I
s t a t e s
that
t h e r e
is
no
f u r t h e r
o b l i g a t i o n
on
t~
pat
o
the
Cty
RDA
u b j e c t
to
p o s s i b l e
des ign
d e v e l 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 :
Following
a r e
criteria
m a j o r p o i n t s
in
he
L O L Theo c u m e n t is
a t t a c h e d ,
ad
a
presentation
wll
be
m a d e
a
he
City 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 ee t i n g .
D Room
count:
425
u n i t s total (
5 8
hotel
r o o m s l l6 7 hotel s u i t e s ) .
D
ease
t e r m :
1 0 0
years.
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
ren
up
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o
M o rtg a g e b y
pr iva te
lenders: $
31
m i l l i o n . o
DA
owns both
s i t e s .
o
arking:
118
s p a c e s
on
i t e ,
1 5 3
spaces
to
be
rov i ded
in
D A - o w n e d
garage
at
16h
t r e e t .
o
o m m i t m e n t
of
room
lock
fo
C o n v e n t i o n
C e n t e r
usage.
o
ag:
Crowne
l a z a
franchise,
anagement
by
Hospitality
Partners.
o
o m p l e t i o n : p e r s o n a l l y
guaranteed
by
equity
partners.o
u a l i t y
s tandards
to
be
p p r o v e d
by
T i s h m a n
Hotel
Corporation.
oDesgn
e v e l o p m e n t
to
c o m m e n c e
with
LOl s i g n i n g
and
wth
a$
00
00
cap
on
r e i m b u r s e m e n t
should
the
d e a l
not
go
t h r o u g h
due
to
the
i t y '
s
i t h d r a w a l .
o
RDA
to approve
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 im i t ing
p r o p e r t y
to
o t e l
use
during
th e
life
o
th e
RDA.
o
adius r e s t r i c t i o n s . o
Rea l
e s t a t e
taxes
to
be
ad
by
deve loper .
o
Mandatory
p u r c h a s e
of
A g e n c y '
s
i n t e r e s t
in
th e
land
t 25th year.
oAMP'
s o
sma
q u a l i t y
o p e r a t o r
fo e s t a u r a n t .
C O N C L U S I O N :
The
it y
C o m m i s s i o n l R e d e v e l o p m e n t
A g e n c y s h o u l d
a p p r o v e
the
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RESOLUTION
NO.
9 7-
22316
AE S O L U T I O NOF
HE
M AYOR
AND
CITY
C O M M I S S I O N
OF
HE CTY
OF
MAM
BEACH
APPROVING,
AND A U T H O R I Z I N G
THE
M A Y O R
AND
IT Y
CLERK TO E X E C U T E ,
THE
A
T
C H E D
LETTER
ONTENT
B E T W E E N
THE
CTY
THE
MAMEACH
E D E V E L O P M E N T
AGENCY,
RDP
ROYAL
PALMHOTELL I M I T E D
C O M P A N Y
AND
RDP
SHORE
CREST
HOTEL
LIMTED
O M P A N Y
REGARDING
THE
W N E R S H I P ,
DEVELOPMENT
AND
O P E R A T I O N
O
A
CONVENTION HOTEL.
W H E R E A S ,
RDP
Royal Pam
Hote
Limi ted
C o m p a n y (
RDP
Royal
Pam")
wa s s e l e c t e d
as
he
i n n i n g
bdder
in
response
to
Request
fo
P r o p o s a l s
N u m b e r
45
95
96 ("
RFP")
o
develop,
ownand
operae
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
of
the
R e d e v e l o p m e n t
Agency (
RDA"),
he
City
o
M i a m i
Beach (the "City"),
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 ,RDP
oyal
Pam
and
DP
Shorecrest H o t e l
L i m i t e d C o m p a n y
are
e f e r r e d
to
s
RDP")
a v e b e e n
engaged in
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
other
things,
he d e v e l o p m e n t ,
ownership
and
o p e r a t i o n
ohe
proposed
h o t e l ; an d
W H E R E A S , th e d e v e l o p m e n t
o
he
hotel
is
aart
of
and
is
cons i s t en t
wth
the
Cty
e n t e r
Hstoc
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
e v i t a l i z a t i o n
Plan
and
w i l l
e l i m i n a t e
slum
and
bighin
the
Cty
e n t e r
Hstoric
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 ta l izat ion
A r e a ;
and
W H E R E A S , t h e
d e v e l o p m e n t
o
the
o te l
is
a
u b l i c
p u r p o s e
a n d
wll
ene f i t
the
public
by,
among
o t h e r
thngs
i n c r e a s i n g
the
number of
c o n v e n t i o n
q u a l i t y
hote
r o o m s
in
h e
Cty
ssisting
he
Cty
in
a t t r a c t i n g
conventions
a n d
i n c r e a s i I 1 g
the
t i l izat ion
o
theo n v e n t i o n
Center,
n c r e a s i n g
tourism
and
improving
the
economy;
n d
W H E R E A S ,
the
e v e l o p m e n t
oh e
h o t e l
as
e s c r i b e d in
the
a t t a c h e d l e t t e r
o
i n t e n t
LO")
su t h o r i z e d
by
hapter
163
o
the
l o r i d a
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
the
RDA,
he
Ci ty
and
D P
s u b j e c t
to
he
a p p r o v a l
o
the
RDA
n d
the
i ty , h a v e
n e g o t i a t e d
the
erms
o
the
or a t t a c h e d
hereto.
NOW
H E R E F O R E ,
BE
IT
ULY
R E S O L V E D
BY
HE MAYOR
AND
CITY
C O M M I S S I O N
OF
HE
CTY
OF
MIAMI B E A C H
as
o l l o w s :
1
he
a t t a c h e d
Lor b e t w e e n
t h e
RDA,
the
City
and
DP
is
hereby
a p p r o v e d .
2
he
M a y o r
and
it y
C o m m i s s i o n
hereby
f i n d t h a t
the
evelopment
o
the
o t e l
is
u b l i c
p u r p o s e ,
will
b e n e f i t
the
p u b l i c ,
and
s
a
part
o
nd
is
c o n s i s t e n t
wth
he
Cty
en ter
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8/15/2019 264-97 RDA
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3
The
M a y o r
and
Cty
C 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 of
the
o t e l
is
a u t h o r i z e d
by
hapter
163
F l o r i d a
Statutes.
4
The
Mayor
and
Cty
l e r k
aeu t h o r i z e d
to
x e c u t e
the attached
LO.5
he
hief
N e g o t i a t o r ,
Cty
a n a g e r
and
Cty
ttorney,
and
ther
respective staffs
and
u t s i d e
consultants,
are
authorized
to
negotiate
and
o c u m e n t
the
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
he
LO
and
a k e
al
he
a c t i o n s
ino n n e c ti o n t h e r e w i t h .6
Ths
e s o l u t i o n
shal
takef fec t
immediately upon
adoption,
A S S E D
and
A D O P T E D
ths
A P P R O V E D
AS
TO
F O R M &
l A N G U A G E
FOR
e x e C U T I O N
T T E S T
RobtP~~ C I T Y L E R K AITIkw
f:\
a t t o \
taca\
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8/15/2019 264-97 RDA
8/48
CITY HALL
1700O N V E N T I O N CENTER
DRIVE
MIAMI
BEACH
FLORIDA
3 3 1 3 9
CTY
O
MAM
BEACH
O M M I S S I O N
M O R
N O ,
I
50-
C
7
O:
MayorS e y m o u r
G e l b e r
and
Members
o
the
Cty
C o m m i s s i o n
DATE:
M a r c h
5,
1 9 9 7
FROM:
J o s e
Gaca-
pedroJ.J . .
Ctya n a g e r (
q
ESOLUTI~
A P P R O V I N G
A
LETTEROF
NTENT
A M O N G
THE
RDP
ROYAL
PALM
OTEL
LTD.
CO.
AND
DP
S H O R E C R E S T
HOTEL
LTD .
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
OR
TH E
O W N E R S H IP ,
DE V E L O P M E NT
AND
PERATION
OF
AN
AFRICANAMERICAN
OWNED
HOTEL
AT
5 3 5
AND
1545
C O L L I N S A V E N U E .
SUBJECT: R E C O M M E N D A T I O N : A p p r o v e
the
e s o l u t i o n .
B A C K G R O U N D :
Staf f
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
Agency (
D A )
and
C o m m i s s i o n
have
e g o t i a t e d
ar o p o s e d
letter
o
inen (
O I ) (
a t t a c h e d
hereto)
for
a
25
r o o m hotel
c o m p r i s e d
of258 hotel r o o m s and
167
hotel
suites.
On
June
59 96 ,
the
RDA
se l e c t ed
the
D P
Royal
P a l m
HotelLd
o m p a n y , after
an
e x h a u s t i v e
pubic
r e v i e w
process,
o
negotiate the
e r m s u n d e r
wh i ch
RDP
would
d e v e l o p ,
own
nd o p e r a t e
a
onvention
hote
on
the
Royal
P a l m
property
and o p t i o n a l l y
on
he
adjacent
S h o r e c r e s t
p r o p e r t y .
At
the
time,
the
eveloper
h a d the
h o r e c r e s t
Hotel
under
contract
and
he
s u c c e s s f u l
p r o p o s a l
c o n t e m p l a t e d
d e v e l o p m e n to
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
Cty
ddot
have
s i t e
conro
on
al
o
he
land.
For
many
months,
the
Cty
se 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
developer on
the
LO,
truggled
toput
the
deal
t o g e t h e r
unde
a
t r u c t u r e oftwo
separate
o w n e r s h i p s
oandorone
hotel
e v e l o p m e n t . Inthe
ast
two
weeks,
by
u n a n i m o u s
c o n s e n t ,
the
hief n e g o t i a t o r
for
the
RDA
and
M.
e e b l e s
came
to
a
o n c l u s i o n
thahe
singe-
ste
w n e r s h i p
w as preferable a n d Mr. eeb les
a g r e e d
to
ransfer
hs
ontract
in te r
in
-
8/15/2019 264-97 RDA
9/48
As
a
result
of
the
agreement,
the RDA
and
Peebles
moved
rapidly
to a
mutually
accep tab le
LO .
The LOI,before
the RDA
and
City
Commission,
therefore
con t em p l a t e s
com p l e t e
site
control in
the
hands of
the
RDA,
as
is
the
case
with
the
Loews
Hotel.
The
RDA
made a
commtment
to
all
RFP
respondents
that
its
funding
obligation
would
be
limited
to $ 10
i l l i o n . The
RD A
has
a g r e e d
to
u b o r d i n a t e
its
r i g h t
to
eceive
ren
under
certani r c u m s t a n c e s
to
the
first $
0
million
in
i n a n c i n g
r e l a t i n g
to
the
r o j e c t .
I n a s m u c h as
he
cos
of
a c q u i s i t i o n
o
he
Royal
Pam
was $
5
5
illion,
andthe
p r e v i o u s l y
a g r e e d
upon
p r i c e
o
h e
S h o r e c r e s t ,
by
e e b l e sis
aso$
5
5
i l l i o n ,
the
otal
acquisition
costs
would
be$1
i l l i o n .
The
a d d i t i o n a l
costs
ove r $
10i l l i o n
w i l l
be
borne
by
P e e b l e s
and
not
beao s t
b u r d e n
o
theCty
o
he
RDA.
It
hase e n
mutually a g r e e d
between
the
RDA
and
Peeblesthat Peebles will
come
up
wthn y
additional
c o s t s over
he$
10i llion
tha
relate
to
a c q u i s i t i o n
of
the h o r e c r e s t .
The
LO
c o v e r s ,
among other
t h i n g s ,
the
e n t
tha
he
RDAwll
eceive
from
the
e v e l o p e r , the
d e v e 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
ofsae
o
theh o t e l , p e r a t i o n s ,
quality
o f
the
lag
p a r k i n g anduseof
theRDA'sa r k i n g
garage,
The
LO
f o l l o w s
the
basic
format
o
the
Loewg r e e m e n t
e x c e p t
that
the
Loews 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
o f thei g h ttoe c e i v e
r e n t
by
he
City,
It
s h o u l d
be
n o t e d
t h a t
the
igning
o f t h e
L O I is
ust
o ne s tep
in
movng
f o r w a r d .Itis
the
l u e p r i n t for
the
e f i n i t i v e
a g r e e m e n t s .
If
he
next
d o c u m e n t s
tobeg r e e d
upon ae
u n a c c e p t a b l e ,
the LOI
s t a t e s
t h a t
t h e r e
is
no
further
o b l i g a t i o n
on
he
pat
o
the
Cty
RDA
u b j e c t
to
p o s s i b l e
des i gn
d e v e l 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 .
N A L Y S I S :
Following
a r e
criteria major
p o i n t s
in
he
LO .
The
o c u m e n t
is
a t t a c h e d ,
ad
a
presentationwll
be
m a d e
a
he
City
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
mee t i n g .
o
Room
count:
425
u n i t s
total (
5 8
hotel
r o o m s l 1 6 7
hotel
s u i t e s ) .
oease
t e r m :
1 0 0
y e a r s .o
R e n t
to
RDA: $
490
0 0 per
y e a r plus i n c e n t i v e
ren
up
to $
2000 0 per
year.
o
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10/48
o
RDAowns
both
sites,
o
Park ing :
118
p a c e s
on
ste
5 3 s p a c e s
to
e provided
in
RDA-
w n e d
g a r a g ea
1 6 t h
Sree.
o
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 .
olag:Crowne
Pazar a n c h i s e ,
managemen t
by
H o s p i t a l i t y
Partners.o
omp le t i on : 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
par tners .
o
u a l i t y s t a n d a r d s
to
e
approvedby
Tishman
H o t e l
C o r p o r a t i o n .
o
e s i g n development to
o m m e n c e
wth
LOl
signing
a nd
with
a$
600
00
apon
e i m b u r s e m e n t
s h o u l d
the
eal
no t
go
t h r o u g h
d u e
to
th e
City'
s
wi thd rawa l .
o
DA
to
a p p r o v e
pansand
s 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
hotel
u s e
d u r i n g
the
l i f e
o
the
R D A .
oadius
r e s t r i c t i o n s . o e a l
e s t a t e t a x e sto
b e
pad
by
e v e l o p e r .
o
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
a
5t h year.o
HAMP'
s
r
sma
quay
o p e r a t o r
for
r e s t a u r a n t .C O N C L U S I O N :
The
Cty
Commiss ion/
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
the
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LETT E R
o
F I N TEN
T
Subject: Royal
Palm/
Shorecest Cowne
PazaHote
Parties:
RDP
Royal
Palm
Hote
Lmted
Company
and
RDP
Shorecest Hote Lmted
Company
colecivey "
RDP")
City
of Miami
Beach ( the "
City")
MamBeach
Redevelopment
Agency
the "
Agency")
Dae:
March
5
9 9 7
R E C I T A T I O N S :
A
n
F e b r u a r y
1993
the
Cty
Center/
Hstoic
C o n v e n t i o n
Vage
e d e v e l o p m e n t and
Revitalization
Aea
w a s
o f f i c i a l l y
established
by
th e
adopon
o
a
Redevelopment
Pan(
the
Redevelopment
Pan").The R e d e v e l o p m e n t Panas
theresuto
he
c o m b i n e d
ef fo r t s
of
the
Cty
o
Miami
Beach (
he"
ty"),
the
am
Beach
R e d e v e l o p m e n t
Aency (
he"
Agency"),
e t r o p o l i t a n
Dade
County
and
the
tate
o
lorida.
The
R e d e v e l o p m e n t Pane p r e s e n t s
the
f f o r t and
commi tment
ohe
Agency
and
the
ity
to
o s t e r
the
deve lopment
o
convention quaty
hote ls,
ancllay
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
Beach
Convenon
Cener (
heo n v e n t i o n
Center " ) .
Pursuan
to
he
R e d e v e l o p m e n t
Plan,
the
gency
has
acqu i red
the
Roya
Palm
H o t e l
whch
has
stree
addresso
545
Collins
A v e n u e ,
Miami
B e a c h , Florida
and
h i c hitas
greed tomake
availablefo
a
onvention
ho 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
provde
the
f r i c a n -
Amercan
o m m u n i t y
with
a
pportunity
in
the
hospitality industry.
In
o n n e c t i o n
wth
hat
c o m m i t m e n t ,
the Agency
has
g reed
to
ake
available
the
Roya
Pam
Hoe
and
a d d i t i o n a l
fnanca
incentives
foan
A f r i c a n -
A m e r i c a n owned
otel.
C
In
u r t h e r a n c e
o
heRedevelopment
P lan and
the
ommtment
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
n
the
receding
paragraph,
the
Agency
published
Request
fo
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12/48
9596 (
the " RFP,
enti t led "
Cty
Cene
Hstoic
Conven t i on
Vage
e d e v e l o p m e n tande v i t a l i z a t i o n
Aea
ArcanAmerican
Hoe
Development
Opportunity", daed
D e c e m b e r
27995
and
amended
onanuary
2
996,
January
3996 and
Mach
5
1996
he R F P soughbdsfo
the
development
and
o p e r a t i o n
o
a
onvent ion
h o t e l
owned
by
African
A m e r i c a n s .
D
O
une
5
996,
after
a
pubic
review
process,
the
Agency
seected
RDPRoya
Pam
oteLmted
Company(
w h i c h , aong
wth 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
beeferred
to
as "
DP")
from among
the
r o u p s that
submitted
p r o p o s a l s
pursuant
to
heFPand
irected r e p r e s e n t a t i v e s
o
he
Agency
to
e g o t i a t ethe
erms
unde
w h i c h RDP w o u l d develop,
ow n
and
pe ra t e
the
convention
h o t e l
r e f e r r e d
to
above ( he
otel")
inc c o r d a n c e
wth
he
e q u i r e m e n t s of
the
FP. Ths
ete
sets foth
the
u n d e r s t a n d i n g r eached
a
esult
o
u c h
negotiations.
1.
TH E
HOTEL:
The
Hotel
wll
consist
of thefollowing: (i)
e s t o r e d
portions
othe
Royal
P a l m
Hotel,
and
aew
ow e r
to
e
d e v e l o p e d
to
the
eas
of
the
Royal
Pam
Hotel,
as
pethe
pans
and specifications
a p p r o v e d by
the
oint
Desgn
eview
and
Hstoric
r e s e r v a t i o n
Boards
on
ecember
3
996,a
sad
plans
andpec i f i ca t i ons
my
be
mended
and
a 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
fifty
gh (
58) hotel room
here ina f te r col lectively
r e f e r r e d
to
ahe
P
Hoe")and
ii)
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
Coll ins
Avenue
Miami
B e a c h ,
Florida
and
a
ew
owe
toe
d e v e l o p e d
to
he
ast
o
the
horecrest
Hoe,
as
pe
the
plans
and
s p e c i f i c a t i o n s
approved
by
he jon
Design
Revew
and
storic
Preservation
Boards
on
D e c e m b e r
3
996,as
sad
ans
and
p e c i f i c a t i o n s
may
beamended
and
a p p r o v e d ,
togehe
compr is ing
a p p r o x i m a t e l y one
hundred
s i x t y -
seven(
67)
hotel
s u i t e s ( hereinaf ter
c o l l e c t i v e l y
r e f e r r e dto
she"h o r e c r e s t
H o t e l ) . T h e
Shorecrest Hote
wllbe
pera ted
in
onjunctionwth
the
RPote
as
the
oe.
The
otelwll
be
airs
cass,
upscale
p r o p e r t y
wth
sutabe
o n v e n t i o n , confe rence
an d m e e t in g
space
and
p p r o p r i a t e
amntes
meetng
the standards
of
the
rowne
Plaza
chain
andhose
t a n d a r d s
se
f o r t h
in
he Ground
Lease ( as
h e r e i n a f t e r
defined).
It
wll e
eveloped
b a s e d uponthe
c o n c e p t presented
in
RDP
s
e s p o n s e
to
the
RFP,
daed
April
1
1996
ubject
to
he
def in i t ive a g r e e m e n t s
to
e
entered
inoe t w e e n
the
g e n c y
and or the
ity (
as
applicable)
and
RDP
c o l l e c t i v e l y ,
the "
greements") ,
the
fom
nd
substance
o
whch
shal
be
a c c e p t a b l e
to
RDP
sende
DP,
the
Agency
and
he
City.
RDP
hal
be
bligated
to
eve lop,
design
construct,
f u r n i s h and
equp
the
Hotel in
ccordance
with
pans
s t a b l i s h e d pursuan
to
he
Agreements
which
sha
ncude
p p r o x i m a t e l y
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8/15/2019 264-97 RDA
13/48
envronmena,
safety
and
other
governmental
law,
rues and
regulations.
2
O S T S OFTHE
HOTEL:
The
reliminary
estimated
budge t
fo
the
e v e l o p m e n t
o
theo t e l
is
a
follows: 2.1
Uses
ounds.
Lando n s t r u c t i o n
Cos
ndirect
Fees I n d i r e c t
Coss
FF&
E
eneral &
Admin.
F i n a n c i n g
Costs
Sa-
U
Costs
Construction
Interest
Fee
o n t i n g e n c y
Total3
FUNDING
OF THE
HOTEL3
1 Sources
o f Funds.
D e v e l o p e r
Equty
C
Barker
D
e e b l e s
J
Thompson
HCF
r o u p F F &E
Loan
ontingency
C r o w n e
F F &
E
oan
Hospitality
Partners
FF&
E
o n t i n g e n c y
LoanDonohoe
Loan
artner
Contingency
Loan
Workng
Capta
Revovng
Loan
Deferred
Construcion
Management &
e v e l o p m e n t
Management
Fees
Deferred
C o n s t r u c t i o n
M a n a g e m e n t
Fees
Deferred
Deve lopment
Management
Fees
Frs
Mortgage
Loan
ge n cy
-
8/15/2019 264-97 RDA
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3
rovider and
Fom
o
o m p l e t i o n Guaran tee .
T h e Cass
A
embers (
the
uaranors
d e f i n e d
h e r e i n b e l o w )o
RDP
sha
provde
personal
g u a r a n t e e s
r u n n i n g
to
he
City
and
the
gency
whch
wll
irrevocably
and
n c o n d i t i o n a l l y
guaranee
the
u c c e s s f u l
comp l e t i o n
an d
o p e n i n g
o
the
Hoe.These
ersonal
g u a r a n t e e s
shall
be
jon
nd
several
and
sha
be
p r o v i d e d
by
R
onahue
Peebles,
Cecle
Barker,
Jeffrey
Eal
Thompson ,
Peter
Calin
and
HCF
nc (
colecivey
the
u a r a n t o r s ) .
From the
dae
f
e x e c u t i o n
o
the
g r e e m e n t s
unl
the
Openng
Date,
Guarantors
sha
furnsh
updaed
i n a n c i a l
s t a t e m e n t s
to
he
City
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
aggregate
f i n a n c i a l
c o n d i t i o n
o
he
u a r a n t o r s ,
ncudng
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
hich
c h a n g e
has
a
material
a d v e r s e effect
on
he
comp le t i on
or
o p e n i n g
o
the
o t e l ,
sha
be deemed
a
efaul t
unde
the
g r e e m e n t s .
3
Fundinq
o
Aqency'
s
Share.
The
Agency
s
ota l
f und i ng
obligation
sha
be
en
mllion
doas($
10
00
000)
allocated
as
folow:
Shorecrest
Hoe
Land
5
00,
000
4
00,
000
10
000
000
P
Hoe
and
4
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
respons ib le
fo
he
cons t r uc t i on
and
m a i n t e n a n c e (
fo
so
long
as
he
Hotel
is
operated
as
a
o t e l
o
he
arking
s p a c e s
are
required
fo
he
use
o
such
hoe
by
RDP
nder
applicable
aw
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
ea
o u n d e d
by
ashington
and
Cons
Avenues
b e t w e e n
15h
nd
17h
S t r e e t s .
The
Agency
and/
o
he
City
shall
perform
the
o r e g o i n g
actions
in
c c o r d a n c e
wth
the
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
pen 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
not
s u b s t a n t i a l l y
comp le t ed
and
ready
fo
se
by
the
pening
Dae
hen
in
h a t
even,
he
A g e n c y
and
o
the
Cty
shall
make
one
hundred
fifty
hree (
153)
parking
spaces
a v a i l a b l e
elsewhere
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
unt i l
the
Garage
is
u b s t a n t i a l l y
completed
and
ready
fo
use
he
Agency
o
he
Cty
sha
be
e s p o n s i b l e
fo
he
additional
expenses,
if
any
elated
-
8/15/2019 264-97 RDA
15/48
defined below)
by
the Hote
in
the
Garage (
including
provisions
for Hote
vaet
parking arrangements).
Hote
use
parking
raesshal be estabished
by
the
garage
operator,
subject
tothe
Agency'
s o the
City'
s
approval, provided,
however,
charges
to
RDP for vaet
parking
shal not exceed
fifty (
50%
e r c e n t
o
the
sef-
park rate
and
h a r g e s
fo
Hoe
employee
parking shallno
xceed the
o w e r
of (i)
theonthly
parking
rate, (
ii)
ifty(
0%)ercent o
the
ef-
a r k i n g rate o (iii)
the
ontract parking rae
RDP
shall ulze
thevailable
p a r k i n g spaces
a
he
a r a g e
po
tot i l i z i n g
other
of-
ste
arking
facilities.
The
Agency
o
he
Cy
as
appicabe,
shall
incorporate
the
provisions
o
hs
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
reaing
tohearage.
4
3
prioritv
Use "
riority use"
shal
m e a n
thearage
ope ra to r sha set
aside
soey
fo
otel
use such
number
o
the
allocated
parking s p a c e s
as
Hotel
O p e r a t o r shall request
from
time
to
time
upon
ot less
than
weny-
four (
24
ours
prior notice
to
thearage
operator.
4
ote l
Garaqe
Ren.
RDP
shal
pay
nnua
ren,
ayabe
m o n t h ly ,
equal
to
ne h u n d r e d
thrtyseven
t h o u s a n d se v e n
hundred
d o l l a r s ( $
137
00) fothe
seo
the
p a r k i n g
spaces
in
he
Garage
as
described
inths
Lete
of nen,u b j e c t
to
u b p a r a g r a p h
4
ereinbelow (
the "
Garage
Re n t " ) .
4
5acilitv
U s a q e
P a v m e n t .
In
o n s i d e r a t i o n
o
D P 's
greement
to
lze
he
Garage,
as
r o v i d e d
above
RDP
sha
bead
m o n t h l y
a e r c e n t a g e
o
the
annua
g r o s s r e v e n u e s
o
the
Gaage
as
olow (
the "
Facility
Usage
Paymen t " ) :
i)
l even
and
ou
enhs
p e r c e n t (
11
4%
the
annual
g r o s s
r e v e n u e s
wth
respect
to
the
firs
one
mon
woundred
thousand
dollars ($
1200
000
o
gross
revenues;
and
ii)even
and
sx
enhs
percen (
7
6
those
annual
gross
revenues
that
exceed
o n e
mon
wo
hundred
thousand
doas($
100,
000;
r o v i d e d , h o w e v e r ,
the
firs
ne
hundred
thrty
seven
thousand
seven
u n d r e 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
shall
be
applied
as
a
r e d i t
against
th e
Garage R e n t
each
yea.
4
6
i m i t a t i o n
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8/15/2019 264-97 RDA
16/48
Temporary parking
less thecumuave
Faclity
Usage
Payments
receved
by
RDP from
thedaeof such
commencement exceed
the
sumof
two
hundred
seventy-
five thousanddollars ($
275,
000
heFaclity
Usage Paymen t
fo
hat
year wll
be
the
greater
o
one
undred thrty-
even
thousand seven
h u n d r e d
dol lars 137700
n d
the
mount
cacuated
in
accordance
wth
ubparagraph
4
e r e i n a b o v e .
4
7 Enforceability.
A p p r o p r i a t e
provsions
wlle
made
by
recorded,
non-
excusve
a s e m e n t oother 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
ohe
Hotel's
ighs
to
he
Garage.
5
R O U N D
LEASEThe
and
o m p r i s i n g
the
RP
o t e l and
the
Shorecrest Ho te l
collectively,
the " Land"),hch
isore
f u l l y
d e s c r i b e d
onxhibit
A
a t tached
hereto
and
made
a
art
hereof
as
if
f u l l y
set
foth
erein,
wll
be
l e a s e d
to
DP
by
the
g e n c y
or
the
ty
as
applicable, (
he"
Lessor")
u r s u a n t
to
a
round lease (he
r o u n d
Lease " )
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
exec u t i o n of the A g r e e m e n t s
byDP
wll
be
conditioned
upon
fee
title
to
theand
e i n g
good,
marketable
and
nsurable subject
ony
o matters
reasonably
a c c e p t a b l e
to
RDPi
provded,
however,
hat the Lesso
iso
r e s p o n s i b l e
fo
i
tIeatters
pertaining tohe S h o r e c r e s t Hotel land
tha
ffect
on c u m b e r
that
andas o
he
dae
f
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
and
Ate
e x e c u t i o n o
he
g r e e m e n t s and
theecord ing
ohe
G r o u n d
Lease,
the
essor
wll
ot further
encumber
such
title
to
he
and
except
wth
espec
to
those
matters (
such
s
utility
e a s e m e n t s ando 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
by
DP
and
which
dono
d v e r s e l y affec
the
operat ion o
e v e l o p m e n t
ohe Hotel as cal led
for
h e r e i n .
Theand
wllbee a s e d
toDP
on
an
as
is
asisa
the
time
o
x e c u t i o n
o
the
G r o u n d
Lea s e .
5 erm.
On e
h u n d r e d (
100
e a r s .
5
3ase
Ren.
DP
shal
pay
to
he
Lessor
base
ren
in the
amount
o $
220
000
00per
year, payable
m o n t h l y ( hea s e
Rent ),
commencing
on
the
opening date
o
he Hotel (the
O p e n i n g
Date").
TheBase
Ren
shalbe
increased
athe
e g i n n i n g
o
the
tenh(
10h),
ifteenh(
15h)
and
t w e n t i e t h 20h)years
from
the
pen i n g
Date
based
upon
he
increase
inhe
GDP
implicit
price
deflator index.In
no
vent
shall
the
as e Rent during any
period
be
ess
than
the
Base Ren
dung
anyprior pe r i od .
5
Addtiona
Rent.
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8/15/2019 264-97 RDA
17/48
270,000
00pe
ear,
payabemonthly (
he
d d i t i o n a l Rent ),
commenc ing
onheOpenng
Dae.
The
d d i t i o n a l
Ren
hall
be
increased
at the beginning othe
t e n t h (
the),
fifteenh
15th)
and
went ie th ( 20th)
years
from
the
Open ing
Date
based
p o n the i n c r e a s e
inhe
GDP
mplicit
price
d e f l a t o r
index.
In
o
even
shal
the
d d i t i o n a l
Ren
d u r i n g
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 e n t i v e
Ren.
In
d d i t i o n to
the
ase
Rent
and
the
A d d i t i o n a l
Rent, RDP shalaso
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
ohe
Hoe
tha
xceeds
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,
p a y a b l e
thrty(
30ays after
year-
end ( the "
ncentiveRen").
The
I n c e n t i v e
Rent
sha
be
apped
a
two
undred
thousand
dollars ($
200000
pe
year;
prov ided,
however, that
any Incentive
Ren
ove
wo
hundred
thousand
doas($
00,
000
per
year sha
not
b e
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 . 56
1
S u b o r d i n a t i o n
oRen.
In
hev e n t
o
defaut,
rena
a y m e n t s
to
bemde
by
RDP
to
he
Lessor
unde
the
G r o u n d
Lease
shall
beubord ina ted ,
asr o v i d e d
h e r e i n b e l o w ,
ony
o
d e b t
service
on
hefirs
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 any th ing
to
the
o n t r a r y ,
theforesaid
s u b o r d i n a t i o n orena
p a y m e n t s
shall
no,
an d
does
ot,
mean
hat
theproprietary
inerest
of
the
A g e n c y in
the Land
is
s 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
beng
extinguished.
5
6efault
bv
RDP.
AIn
thev e n t o
deaut
unde
the
Ground
Lease
by
RDP,
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
round Lease
subject
to
the
Lender
s(
efined
in
s u b p a r a g r a p h
5
9
2
ereinbelow)
cure
rights
a
et
forth
h e r e i n b e l o w
in
ubparagraph
5
2
B
In
he
even
o
a
e f a u l t
unde
the
Ground
Lease
by
RDP
Lender
shal
have
the
righ
to
m o n g ohe
remedies,
cure
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 264-97 RDA
18/48
Lessor
may
not
termnate
the
Ground Lease.
While
prosecuting
the
forecosue
acion
as
dscussed above, Lender
is
required
to
make
RDP's
monthly
rena
payments
only
to
the
exten
suficen
funds
ae
receved
by
Lender
from
operating
income
from
the Hote ate
deducting
a
sum
equal
toheamoun
necessary
to
pay
monthly
debt
servce
on
the
Loan
wth
regard
toa
principal
amoun of ten
mllion
dollars ($
10
000,
000,
e ss
the
moun t
of pr inc ipa 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
h e even
o
a
defaut
under
theortgage,
theround L e a s e
shall
no
e
in
e f a u l t
s o
ong
as(
i)
ender gves
thee s s o r
written noice
oad
d e f au l t
wthn
en1
ays
af ter Lender b e c o m e s
a w a r e
o
same;
and(
ii)
heGound
e a s e
is
n o t
otherwise
inefaut.
D
hroughout this
Leter
of
Inen,
or
purposes
of
calculating
the
mount
o principal o u t s t a n d i n g
unde
the
first
ten mllion d o l l a r s ( $
10
000
000
othe
oan
to
w h i c h
ren
ayments
are
s u b o r d i n a t e , the
app l i ca t i on of
p r o c e e d s
f r o m
the
ae
o
e a s eoamp's
e s t a u r a n t
shalno
be included
and
the
en
mon
ollars ($
10,
000
00)
towhch
ren
a y m e n t s are
subord ina te
shal
be
assumd
to
e
reduced,
o m m e n c i n g
on th e
Opening
Date,
by
m o r t i z a t i o n
on
a
ortgage
basis
on
a
wenty-
fve(
5)
yea
tema
thenterest
rate
o
he
oan.
5 6
enderAs
enant
U n d e r
the
Ground
L e a s e .I
ender
b e c o m e s
the
e n a n t
u n d e r
the Ground
Lease,
hen
in
tha
vent:
A
ende r
sha
be
b l i g a t e d
to
ay the
Lessor
al
urrent
rena
a y m e n t s due
under
the
Ground
Lease
and
omply
with
alohe
c o v e n a n t s
and
conditions
of
the
round
Lease
d u r i n g
the per iod
Lender
is
he
enan t .
B
he
amoun
o
unpad
ren
existing
as
othe
ime
Lender
b e c o m e s
the
tenan (
the
e i n s t a t e m e n t Dae") ,
n c l u d i n g accrued
inerest (
ahe
defaut
rae
p e c i f i e d
in
he
Mortgage),
t t o r n e y s '
-
8/15/2019 264-97 RDA
19/48
the "Back Ren"), shal
be
due and
payable
by
Lender toheLessor as folows:
i)
During
the
period
in
whch
any
part
of
the first ten
mllion
dollars ($ 10,
000
00)
in
rincipal
is
outstanding
under
the
original
oanhe
Agency
shalbe
pad
ac k
Rent
monthly
to
he
exten
funds
ae
vailable
from
p e r a t i n g
income
from
the
o t e l after
deduct ing
aum
equalto
he debt
service
on
the
oa n w i t h
regard
to
a
r i n c i p a l a m oun t
equa
to
ten
mi l l i on
dollars
10, 000,
000
esshe
p r i n c i p a l o
the
Loan
acualy
pad
toae
and
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
heHoe.
ii)
te
theirst
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
prio
to
defaut)
n
princpa
has
been
pad
to
ender,
the
Lender
s
b l i ga t ions
to
pay
Back
Rent under
the
G r o u n d
Lease
sha
be
s u b j e c t
ony
to
the
paymen t
o
perating expenses
ona
on th ly
bass.
iii)
Back
R e n t
wll
con t inue
to
accrue wth
n t e r e s t
unl
paid
in ful.
5
6
4
al eo
he
Hoe
bv
L e n d e r .
Upon
a
ale
o
the
o t e l (
as
described
ina r a g r a p h1
e r e i n a b o v e )
by
Lender,
the net
sae
roceeds,
to the
extent
same
are
avalabe,
shal
be
applied
in
he
following
oder:
i)
to
repay
Lender
fo
m o u n t s
owed
on
he
frsten
mllion
d o l la r s ( $ 10,
000
000)
inr i n c i p a l
ess
r inc ipa l
paid
to
ae
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
wth
Back
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
princpa a c c r u e d
interest,
costs
and
e x p e n s e s ;
o w e d
plus
in
al
v)
to
ay Lessor
al
accrued
inerest
on
Back
Ren;
a n d
v
o
ay
to
Lessor
the a m o u n t
of
the
Puchase
Price (
defined
in
subparagraph
5
01
hereinbelow).
A
he
em
et
-
8/15/2019 264-97 RDA
20/48
an uneaed
thrd
party,
the
amoun
of
the
selling price
minus
brokerage
commssons, taxand other
prorations
and
al reasonabe
and
customary
closing
costs.
B.
The new
amoun
towhch
the
Lessor'
s
inerest
in
the
rena
payments
under
the
Ground
Lease shal
be
subordnae
after
the sae
of the
Hote
by
Lender
shal
neve exceed
the
baance on
the
original
first ten
mllion
dollar ($
10
00
000
subordinated
a m o u n t
ater
deducting
al
r i n c i p a l
payments
r e c e i v e d
by Lende r up
o the time
o
he
sae5.
5
e f i n a n c i n q
Not
Related
to
a
eaut.
he
ne
r 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
shal
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
the
Agency
as
p p l i c a b l e ,to
ay
the
Purchase
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
othe
City'
s
as
a p p l i c a b l e , i n t e r e s t
in
heand;
and
ii)
toDP
if
ny
funds
are
remaining.
A.
The
ew
a m o u n t
to
whch
the
essor '
s
nterest
inhe
rena
ayments
unde
the
ound
Lease
shall
be
s u b o r d i n a t e after
refinancing
shal
never
exceedthe
baance
on
he
origna
first
ten
llion
dola
10,
000
000
u b o r d i n a t e d
amount
after d e d u c t i n g
al
princpa
p a y m e n t s
r e c e i v e d
by
e nd e r
prio
tothe
im e o
the
e f inanc ing .
B
he
term"
ne
proceeds"
as
used
in
his
subparagraph
5
6
hal
mean
the
new
oan
amoun
ate
efnancng
mnus
the
outstanding
oan
ba l an 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
7
ea
s ta te
Taxes.
RDP
h a l l
pay
al
ad
valorem
rea
esae
a x e s
and
ersonal
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
ent i t l ed
-
8/15/2019 264-97 RDA
21/48
avalabe,
under
applicable
law,
as
ifit
were the
fee
owner
of
the and.
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 ,
a
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
toRDP
ith
respect
to
the
remediation,
as
descrbed
in
the
g r e e m e n t s ,
o
n v i r o n m e n t a l m a t te r s
afectng
the
and
and
the
m p r o v e m e n t s
thereon
whch
xist
prior
to
he
e x e c u t i o n
o
the
r o u n d
Lease
5
8
2
RDP
will
p r o v i d e
an
ndemnity
to
he Agency
a n d /
o
the
Cty,
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 ,
with
respec
to
the
emediation,
a
e s c r i b e d
in
the
A g r e e m e n t s ,
o
nvironmental
matters
a f fec t i ng the
Land
and
the
m p r o v e m e n t s t h e r e o n
arising
from
and
ate
he
execution
o
the
Ground
Lease.
5
8
3
limitations
o
liablity
wll
p p l y
with
respect
to
the
f o r ego i n g
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
o t e l ,
and
any
e f i n a n c i n g s thereof,
wll
be
p r o v i d e d
by
an
i n s t i t u t i o n a l lender
subec
to
he
p p r o v a l
o
the
g e n c y and/
o
he Cty
5
9
he
t e r m
i ns t i tu t iona l
lender"
means
a
erson
which,
a
he
time
it
ecomes
an
nstituiona
lender,
isa
stae
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
ach
case
whether
actng
n d i v i d u a l l y
o
n
a
i duc ia ry
or
r e p r e s e n t a t iv e (
such
as
n
a g e n c y )
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
the
law
o
he
Unted
t a t e s
or a ny
stae
h e r e o f
o
o r e i g n
i n s u r a n c e
company (
in
each
case
hether
acting
i n d i v i d u a l l y
or
in
i d uc i a r y
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
ubicy
hed
real
estate
investment
trust,
an
ntity
that
qualifies
a
a
E M I C
under
the
nerna
Revenue
Co d e
o
986,
as
m e n d e d ,
o
t her
pubc
o
rivae
n v e s t m e n t
entity (
in
each
case
whehe
act ing
as
p r i n c i p a l
o
gen t ) ;
a
r o k e r a g e
o
i n v e s t m e n t
banking
o rgan iza t i on (
in
each
case
w h e t h e r
acting
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
n
gency)
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 ,
benet,
pension
o
r e t i r e m e n t
und
n
instituiona
leasing
company;
any
o v e r n m e n t a l a g e n c y
o
enity
insued
by
a
o v e r n m e n t a l
agency
o
-
8/15/2019 264-97 RDA
22/48
an
instituiona
lender
only
if (
t the
timeit
ecomes
an
instituiona
lender)
it
shal (
i)
ave assets of
not
less
than$
100
00,
000
d j u s t e d for inf lation and (
ii)no
e an
a f f i l i a t e
o
RDP
it
eing futher
a g r e e d
that
noneo
the
t a n d a r d s
se
fothin
his
defintion
hall
be
p p l i c a b l e
to
participants
or
co -
lendersin
a
oa n
secued
by
ortgage
w h i c h
ishedby
a
inst i tut 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 ia ry o r e p r e s e n t a t i v e (
suchas
ngency)
capacty).
The
erm
institutional lender"
ason c l u d e s an
affiliateo
nnsti tuona l e n d e r
as
descibed
in
hssubparagraph
5
9
59
2DPsha
btan
a
ndng
loan cor run i
tmn
from
an i n s t i t u t i o n a l
lender (
the"
ender )
in
he
amoun t
o
n ess
than thrty o ne
mllion
d o l l a r s ( $ 31
000
000
foheo n s t r u c t i o no
he
Hotel.
A
opy o
the
e x e c u t e d
loan
o r r u n i t m e n t
shall
be
elivered
to
the
g e n c y
and
the
it yno
ater
than sixty (
60aysate
he
e x e c u t i o n
othsLetter
o
n t e n t . All
o
he tem
and
ondtions
of said
oan
orruni t m e n t
shall
bein
orman d
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
andheity.
59
3
l
l enders
shalbe
r e q u i r e d
to
end
c o p i e s
oal
efault
notices o
oher
o t i c e s
r e l a t i n g totheailure
to
eephe
Loan
in
good standng
w h i c h
are
sent
p u r s u a n t to
a
loan documento
security
d o c u m e n t toRDP
o
he
u a r a n t o r s , to
the
City and
the
Agency.
5
9
Al
l enders
sha
c o m p l y
with
al
r e a s o n a b l e
estoppe
requests
of
the
Cty
and
the
Agency. 5
10
Purchase o
Aqency'
s
nterest . 5
10
he Agency
o
the
ity,
as
ppicabe, each
a
its
ol e
opt ion
and
ac hin
ts
sole discret ion, m ay require
RDP
to
u r c h a s e
o
mkenstallment
P a y m e n t s
defined
in
ubparagraph
5
05
hereinbelow)
toward
the
u r c h a s e
o
heg e n c y 'snterest
inthe
Land
a
the
urchase price
o
ten
million
d o l l a r s ( $
10
000
00) plus
thee q u i r e d
retun(
r e f e r r e d
to
in
u b p a r a g r a p h s 5
10
3
nd
5
0
4
hereinbelow) (
the "
Purchase
Pce)
t the
me
o
each
e f inanc ing ,
whch
ref inancing
shall
occu
on
o
prio
to
the
eginning
othe
fifth(
h),
enh(
0th)and
wenty- fifth (
25th)
e a r s
after
the
p e n i n g
Daen d
every
ten(0)
years
t h e r e a f t e r ,
to
the
exten
r e f i n a n c i n g
-
8/15/2019 264-97 RDA
23/48
wth
theformua
set forth
in
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
each
in
its soe dscreon
may
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 owards
theu r c h a s e
o,
he
g e n c y '
s
n t e r e s t intheand any
tim
hat
RDP
o l u n t a r i l y
refnances
th e
Hotelto
th e
exentha
et proceeds
as
d e f i n e d in
subpa rag raph 5
5
B
are
avalabe.B
o t w i t h s t a n d i n g
anything
in
thsu b p a r a g r a p h
5
1
1
to
he
conrary
r o v i d e d that
RDP
has not
previously
p u r c h a s e d the
A g e n c y '
s
neest,
RDP shall
p u r c h a s e
the
Agency
s
n t e r e s t
in
the
and
in
its
ent i re ty
and a
the
full P u r c h a s e
Price,
less
any
I n s t a l lm e n t
P aym 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
ahe
end
o
the
wenty -
fifth (
25th) year
afterthe
penng
Date;
u n l e s s
the
gency
o
the
ity
as
a p p l i c a b l e
e a c h
a
ts
soe
p t i o n
and eachn
its
o le d i s c r e t i o n , notifies
RDP,
in
riting, that
the
g e n c yo
heCtyis
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
asaforesaid
to
a
ater
date,
which
lae
ae
sha
be decdedupon
s o l e l y
by
the
Agency
o
he
i ty.
In
the
even
he
A g e n c y
o
h e
Cty
e s c h e d u l e s
this
purchase
as
foresaid,
then,
in
ha
event ony
there
shallbe
nourther
s u b o r d i n a t i o n
o
the
e s s o r '
s
i n t e r e s t
inhe
r e n t a l
p a y m e n t s
unde r
the
round
Lease.
5
10
2
DP
ms
pa
he
enire
Purchase
Price
u p o n
the
occurrence
of (
i
ny
sae
o
he
Hotel (
as
hereinafter
d e f i n e d ) , subject
to
he
provsions
of
subparagraph
6
3
ereinbelow
and
a rag raph
12 h e r e i n b e l o w ,
o(i)
he
expirat ion
o
tweny-
five(
25
ears
from
the
Opening
Dae
ubject
to
the
rovisions o
subparagraph
50
1
B
e r e i n a b o v e ,
whichever
o c c u r s
first. 5
10
3u r c h a s e
Price
ifPad
with in
Ten(
10
ears from
the
peninq
Dae.For
the
en(
0)
year period
c o m m e n c i n g
wth
the
O p e n i n g
-
8/15/2019 264-97 RDA
24/48
by
RDP,
cacuatedas
a
reurn
on
theamoun
of fivemllionfivehundred
thousand
dollars
5500, 000) o
as
f
the
daenynstallment Payments, such
lesse
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
puposes
o
ths
ubparagraph 5
10
3
n d
subparagraph
5
0
4e r e i n b e l o w ) ,
and
giving
RDP
a
credit
fol
Base
and
f i f t y -
five percent (
55%)
o
ny
I n c e n t i v e Ren
pad
PLUS
B
T h e
sum
o
fve
nda
haf
m i l li o n
dolars
5
500
000;
L U S
C
he
amoun
requred
fo
the
Agency
toc h i e v e anight p e r c e n t (
B%
pe r
year
aveage
eturn,
f r o m thep e n i n g
Date
to
the date
oaymentby
DPalculated
as
a
e t u r n onthe
a m o u n t
o
fou
mllion
five
hundred thousand
dollars
4
00,
000
o
s
o
he
ae o
ay
Installment
Paymen ts ,
such lesse
amoun t
ate
d e d u c t i n g
any
n s t a l l m e n t
P a y m e n t s
made
p r o v i d e d ,
however,
tha
ach
Instal lment
P a y m e n t s h a l l
be
o u n t e d
only
onceo
p u r p o s e s
o
ths
s u b p a r a g r a p h
5
0.
3
andu b p a r a g r a p h
5
10
4
e r e i n b e l o w ) ,
and
gvng
RDP
a
edt for
alddtiona
R e n t
pad
nd
foty
ive
percent (
45%
o
ny Incenve
Rent pad, provided,
however,
tha
a n y I n c e n t i v e
Rent
paid
after
the
a m o u n t s
r e f e r e n c e d
in
ubparagraph
5
0
3A
ere inabove
have
been
pad
shall
be
redited
a
ne
hundred
percent
100%;
PLUS
D
The
sum
o
four
and
a
haf
illion
dollars
4
500
00).
5
1 0.
4
urchase
P r i c e
if
Pad
Ater
Ten (
10
Y e a r s
from
he
Opennq
Dae.
F o r
the
period
ater
ten(
10
years
have eapsed
f r o m
the
Opening
Date,
the
Purchase
Pice
shal
be
calculated
as
o l l o w s : A
he
su m
o
th e
a m o u n t s
saed
n
u b p a r a g r a p h s 5 0
3
A
B a n d
D
ereinabove;
PLUS
B
he
moun
r e q u i r e d
for
the Agency
to
c h i e v e
a
ten
pe rcen t (
-
8/15/2019 264-97 RDA
25/48
Instalmen
Payments,
such lesser
amount after
deducting
any
Instalmen
Payments
made
provided,
however,
that
each
Instalmen
Payment
shal
be couned
only
once for
purposes
of
subparagraph
5
03
hereinabove
and
ths
u b p a r a g r a p h
5
104nd givingRDP
a
credit
fo
al
Add
tona
Rent
paid
and
orty-
five percent (
45%
any
Incenive
Ren
paid,
provided,
h o w e v e r , tha
ay
n c e n t i v e
Ren
p a i d
ate
he
a m o u n t s
r e f e r e n c e d
in
u b p a r a g r a p h50.3A
here i nabove
have
een
pad
shal
be
cedted
a
ne
hundredpercent
100%.
5
10
5
n s t a l l m e n t P a y m e n t s .
Installment
paymens
I n s t a l l m e n t
Payments )
t o w a r d s
the
Purchase
Pce
c a n
be
made
ony
nhe olowng
m a n n e r
and subject
to
heo l l o w i n g
conditions:
A
Al
nstallment
P a y m e n t s are non-
r e f u n d a b l e .
Bll
rental
paymns
u n d e r theGround Lease
shal
con t inue
tobe
ueand
payab le
by RDP
no tw i ths tand i ng
theact that
I n s t a l l m e n t
P a y m e n t s have
been made
unil
such tim
as
he
P u r c h a s e
Pce
as
e e n
pad
in
ful.
Ah e tim
o
na
payment
o
the
Purchase
Price
in
ul,
DP shall
receive
a
redit
fo
I n s t a l l m e n t
Payments
made
aong
wth
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