loi royal palm agreement

8/15/2019 LOI Royal Palm Agreement

1/23

This

communication

is

a

privileged

settlement

communication and

strictly

inadmissible

for

any purpose pursuant

to Section

90.408,

Fla. Stat.

and R u l e

408,

Fed

Evd

L E T T E R

OF

NTENT

TO

AMEND

ROYAL

PALMCROWNE

PLAZA

R E S O R T

A G R E E M E N T S

Subject:

Parties:

Royal

Palm

C r o w n e

Plaza

Hotel RDP

Roya

Pam

Hotel

L i m i t e d

P a r t n e r s h i p ( RDP)

Cty

of

M i a m i

Beach (the "

Cy)iami

B e a c h

R e d e v e l o p m e n t

Age ncy (

t h e g e n c y )

D a t e : ;

U)

U~ 2

t5

2 0 0 3

R E C I T A T I O N S :

A

n

Ma y

28

9 9 8 , the

parties

e n t e r e d

intoan

A g r e e m e n t

oe a s e r e g ar d i n g

th e

land morefuly

d e s c r i b e d

on

x h i b i t

A ("

and")

t t a c h e d h e r e t o

and

m a d eaart h e r e o f

as

f

fully

s e t

forthheren,

as

r e c o r d e d

on

J u l y

1998

in

f f i c i a l

Records Book

18170,

a

age

0 8 9 3 ,

in

he P u b l i c

Records

of M i a m i - Dade C o u n t y ,

Florida (

L e a s e ) .B

u b s e q u e n t

to

the

e c o r d i n g

ohe

ease,RDP

began

the

c o n s t r u c t i o n

ofthe

o y a l P a l m / S h o r e c r e s t C row ne PazaHoe ("

Hote").

C

D u r i n g

the

o n s t r u c t i o n

ohe

Hotel,

RD P

encountered

st ructu ral

problems

wi th theoriginal

Royal

Palm

Hote a n d sol

contamination

p r o b l e m s

r e g a r d i n g

the

and

which

alleg-

edly

resulted

in

certan

c o n s t r u c t i o n

d e l a y s .

Aispute

a r o s e a m o n g s t

th e

parties

r e g a r d i n g

the

afo resaid

p ro b l em s and delays

r e s u l t i n g

in

D P'

s

refusal

to pay

e r t a i n

R e n t a l

duender

the

Lease

and

he

A g e n c y '

s

e f u s a l

to

p a y claims

r e l a t e d

to

sad

o n t a m i n a t i o n

and

al leged

c o n s t r u c -

tion

delays.D

The

m 1 i e s

r e s p e c t i v e l y denyandi s p u t e

alsuch

c l a i m s and

a l l e g a t i o n s

against

t h e m , whether

asser ted

o

un

sserted.

E

The

parties,

wshingto

vod

i t i g a t i o n

andmcably

r e s o l v e

al

matters

e x is ti n g b e t w e e n

them, e n t e r e d

into

negotiations

regarding the

a f o r e s a i d

disputes. T h i s letter

ses

foth

hen d e r s t a n d i n g

r e a c h e d

as

ae s u l t

o

such

e g o t i a t i o n s . C a p i t a l i z e d t e r m s whch,

are

not

definedin

hs

Letter

o

Intent

to

m e n d

Royal

Pamr o w n e

Plaza

R e s o r t A g r e e m e n t s (

LO"

sha

have

the

meanings a s c r i b e d

to

h e m

in

he

e x i s t i n g ,

a p p l i c a b l e

d o c u m e n t s . " A g e n c y m e a n s , as

a p p r o p r i a t e ,

the

g e n c y

or

the

ity

oo t h ,

as

hea se

maybe

Fgency

and

w n e r

in

their d e s i r e

toaintain

and

ulfill

her

o m m i t m e n t

to

poide

he

Af r ican

A m e r i c a n community with

o p p o r t u n i t i e s

in

he

o s p i t a l i t y

industry,

are

i l l i n g

toamend th e

RoyaPam

C ro w n e P la z a agreements

subject

to

he

Hotel' s

o n t i n u i n g

c o m p l i a n c e

with

the C o n v e n t i o n


2/23

owner

and its

successors

and

assigns

make

available Hotel

facilities

and

services for

support

of

the Convention Center

events

and

to

undertake

joint

marketing

e f f 0 l 1 s .

1.

B A

CK

R E N T

AND

REAL

EST

A

E T A X E S :

1

1

ack

Rent

P r i o r To

The

Hote

O p e n i n g

Date.

R D P an d

the

A g e n c y

agree

tha

u n a v o i d a b l e

deays

t t r i b u t e d

to

the

n v i r o n m e n t a l

and

r e c o n s t r u c t i o n

deays

o c c u n e d

p r i o r

tothe

Hotel

O p e n i n g

Date. RD P

has

r e v i o u s l y

p a i d 128,373.

38

in B a c k

Rent

prior

to

h e

H o t e l O p e n i n g

Date;

i.

e,

from

O c t o b e r

31

000

to

ay14

0 0 2 , and

the

g e n c y

s h a l l

rean

aid a m o u n tin

ul

s e t t l e m e n t

of

alm o u n t s

d u e

for

Back

Rent

for

the

peliod prior

to

ay 15,2002.

Additionally,

R D P

shall

pay

within

five (5)

days

rom the

last

e x e c u t i o n

o

his

LOI

any

and

al

applicable

sales

tax

due

a n d

o w i n g on

a id

amount

pus

ny

i n t e r e s t

and

p e n a l t y

a s s e s s e d

by

he State

of

F l o r i d a against

theCity

and/

othe

A g e n c y

for f a i l u r e

to

pay

p p l i c a b l e

sales

tax

on

a id

a m o u n t

pootheo t e l

O p e n i n g Date

12

Clark

C r e d i t .

S u b j e c t

to

he conditions

se t

f o r t h in

ths

Section

12

DP shal l payto

h e

A g e n c y an

m o u n t

upto$

40,

000.

00(

he

Clark

C r e d it )

plus

a p p l i c a b l e

sales

tax

w h e n , a n d

if,

t

e t t l e s

its

resen

l i t i g a t i o n

w i th Th e

Cak

onstruction

G r o u p

s t y l e d

RD P

R o y a l P a l m

Hote,LPEA.

s.

TheClark

C o n s t r u c t i o n

Grou p,

ncs

A r q u i t e c t o n i c a

I n t e r n a t i o n a l C o r p . , Et

A.,

.

S

istrict

Court,

Southern

D i s t r i c t of Florida,

Case

No.

01-

3130-

CIV-

Middlebrook s (

C l a r k L i t i g a t i o n " )

o

ift

o b t a i n s

ai n a l

non-

p p e a l a b l e

j u d g m e n t

in

he C l a r k

L i t i g a t i o n . RDPshall

pay

ths

m o u n t

to

the

gency

wthnten (

10

ays

o

ts

receipt

o

funds

from,

an d

to

the

extent,

either

th e

s e t t l e m e n t

othe

u d g m e n t

provides

excess

funds

after

R D P pays

its

t t o r n e y s '

fees

andcoss

for

the

l a r k

L i t i g a t i o n .

Article4he Lease

e n t i t l e d

Lae

h a r g e s shallnoapply

to

the

p a y m e n t

of the

Cakr e d i t .

The a p p l i c a t i o n

o

the

lark

Credit shall

be

t r e a t e d

as a d d i t i o n a l

Back

R e n t

whch

shall

be

clue

only

if

he

condit ions se

forth

in

his S e c t i o n

are

me

andhennl y to

tha

x t e n t .

A n y

amounts paid to

the

g e n c y uncler

t h i s

S e c t i o n

1.2

hall not appy

to

th

ight

percent (8%

return

c a l c u l a t i o n as a

o m p o n e n t

o

heP u r c h a s e

Price as

defined

in

ection 36.1

d

ii)

the

Lease (

the"

e t u r n ) .

This

p r o v i s i o n

shall

s u r v i v e

the

p a y m e n t

o

the

Purchase

Price.

1

3

a c k

Ren

A f t e r

The

Hotel

O p e n i n g

Date.

Base

Rent

and

d d i t i o n a l

Rent due, plus

a p p l i c a b l e

s a l e s

tax,rom

theperiodo

ay

15

2002

oay

15

2003("

Pos

O p e n i n g B a c k

Ren

hall

be

e f e r r e d and p a y a b l e

over the

ten (

10

ear

p e r i o d

c o m m e n c i n g in

Lease

Year

5

ndnding

in

ease

Year

14

.4

Rea

Estate

Taxes.

T h e

p a r t i e s

a c k n o w l e d g e

that the

2002

e a l

estate t a x e s on

the I m p r o v e m e n t s

are

u n p a i d and that

sada x e s

are beng a p p e a l e d .

On


3/23

taxes

are

due onreal estate taxes which werethe

responsibility

of

RDP

prior

to

the date of the execution

of

this

LOI,

RDP

shall

pay

such

taxes,

penal t ies

and

penalty

interest

prior

to

the execution

of

the

Closing

Documents.

2

UTURE

RENTAL:

E f f e c t i v e

uponx e c u t i o n othisLO,d d i t i o n a l

R e n t

and

n c e n t i v e

Rent,pus

p p l i c a b l e

sales tax,

u e

in

ease

Years

2

h r o u g h

5hal l

be

e f e r r e d

an d p a y a b l e

over the

en(

0 )

year

period c o m m e n c i n g

in

e a s e

Year6

nd

ending in Lease

Y e a r 15.

Oher

han

as

tated

inhe

p r e c e d i n g

s e n t e n c e ,

RDP

sha c o n t i n u e topayase

Rent,

A d d i t i o n a l

Rent,

nd Incent ive

Rent ( plus

al

applicable

saes

a x e sonu c h

non-

d e f e l T e d p a y m e n t s

o

same)ase ll as

allohe

e n t a l from the

dae

f

e x e c u t i o nohis

LO

p u r s u a n t

to

the

e r m s

an d condit ions othe

Lease.

Inheev en t

thahe

C l o s i n g

Documents

ae

o t

e x e c u t e d

and

th e t r a n s a c t i o n contemplated

by

ths

O

is

not

c o n s u m m a t e d ,

any

a m o u n t s defelTed

a n d u n p a i dtoheg e n c y

p u r s u a n t

to this

Section

sha

be

paid

to

he Agency

i t h i n

thirty (

30

days

fter

the

e r m i n a t i o n

o

aid negotiations.3

URCHASE P R I C E :

3

eclarationoo v e n a n t s

ande s t r i c t i o n s .

The

e c l a r a t i o n

oovenan ts

a n d

R e s t r i c t i o n s

shabe

m e n d e d

tor o v i d e

tha

upon

p a y m e n t of

the

u r c h a s e

Price

in

fu,heo l l o w i n g

changes

s h a l lbeffective,

ut

that

said

D e c l a r a t i o n

s h a l l not otherwsebe

a m e n d e d ,

modified o

c h a n g e d :

1th

r e s p e c t

to

he

S h o r e c r e s t

Land

o n l y ,

Sect ion

22shano

longer apply.2

wth

r e s p e c t

to

o th

the R P

Land

andthe

S h o r e c r e s t

Land,

Section

2

hall

no

onger

a p p l y and if,

s

a

result

t h e r e o f ,

hen

p p l i c a b l e z o n i n g o r d i n a n c e s ,

such

as the

C U t T e n t

section

118

5f

the

i a m i B e a c h

Code

e q u i r e

a

o v e n a n t

in

leuo

unty

o

ttleDP

shall

cause

such

a

ovenant

to

be

e c o r d e d

as

to

a id p a r c e l s .

3o n v e n t i o n

C e n t e r A g r e e m e n t . The

C o n v e n t i o n

C e n t e r

Agree-

ment

s h a l l be

amended

torovide

that,

p o n

payment

of

thePurchase

Price

in

u,

the "

35 0

r o o m s

pe r

day"

r e q u i r e m e n t

s t a t e d inhe

Room Block

d e f i n i t i o n shall

be

e d u c e d

to

tw

hundred

ffty

e v e n (

257

roomspe

d a y .

In

ll

other

r e s p e c t s ,

the d e f i n i t i o n

oo o m

Bock

n d

the

e m a i n d e r

oheo n v e n t i o n C e n t e r

A g r e e m e n t

s h a l l

r e m a i n

unchanged

except

as

r o v i d e d

inp a r a g r a p h

21

7ohis

LO.

3

Tmefo

a y m e n t

in Full.

The

o u t s i d e

datefo

ful

p a y m e n t

o

the

u r c h a s e

Price sha

be

t h e

F i x e d

E x p i r a t i o n

Date

rather

than

Lease Year

25

as

presently

provided

fo

in

he

Lease

ll L e a s e

terms (

suchs

t h o s e relating

to

e n ta l


4/23

4

E F I N A N C I N G :

The

e f i n a n c i n g

Times

s t a t e d

in

e c t i o n

11.

13(

a

he

Lease

s h a l l

be

c h a n g e d

to

n

or

prior

to

the

b e g i n n i n g of

the

fifth (Sth)

year

after

the Hotel

Opening

Date (

Fi rst

R e f i n a n c i n g " ) ;

on or

prior

to

en (

10

y e a r s after the

closing

o

the

irst

R e f i n a n c i n g ( "

S e c o n d

R e f i n a n c i n g )

a n d

then

v e r y t e n t h ( 10th

anniversary

o

the

econd R e f i n a n c i n g

t h e r e a f t e r ;

prov ided

h o w e v e r , t h a t

the

maturity

date

o

any

e f i n a n c i n g

that

extends beyond

the

next

r e q u i r e d

r e f i n a n c i n g

will

noth a v e

to be

repaidprior

to

its

a t u r i t y p r o v i d e d

said

m a t u r i t y date

is

o

ater

than

t w e n t y (

20

ears

from

the

last r e f i n a n c i n g ; provided further h o w e v e r ,

tha

w h e n T e n a n t r e f i n a n c e s the

B a l a n c e

o

its

e b t , the

e t

R e f i n a n c i n g

P r o c e e d s as

d e f i n e d

ine c t i o n 11.

13(

)

of

the

ease

h a l l be

applied

to

th e e x t e n t

available in

the

f o l l o w i n g

order:

ATow n e r

to

pay

th e

d e f e l T e d Rental

d e s c r i b e d

ina r a g r a p h s

1.

3and2

o

his

LO;

B

ifty

p e r c e n t (

SO%)

toOwner

to

ayhe

R e t u rn

a p p l i c a b l e

as

art

o

the

u r c h a s e

P r i c e

accrued a n d

u n pai d

toate; and

ffty

e r c e n t ( SO%

to

Tenant

to

e p a y

Town

Pak

Hotel C o r p o r a t i o n ,

asotel

Manager

T o w n

P a r k ) ,

fo

C o s t O v e l T u n s *

paid

by

Town

Park (

estimated at $S

million).

C

o

O w n e r

to

p ay

the

alanceohe

R et u r n

a p p l i c a b l e as

p a r t

othe

u r c h a s e P r i c e accrued a n d

u n p a i d

to

dae

Dfty

percent (SO%)

to

w n e rtoay

the

u r c h a s e

P r i c e (

whch

n c l u d e s

the

Return)

for

O w n e r '

s

I n t e r e s t

in

her e m i s e s ; and

fifty

p e r c e n t SO%

frs

o

any

a m o u n t s then

still

due T o w n

Park

as

descr ibedin

ection

4B, b o v e ,

and

theno Tenant

fo r

T e n a n t Cos v e l T u n s *

paid

by Tenant

e s t i m a t e d at $

2

illion ;

E

To

O w n e rto

ay

the

a l a n c eo

h e

P u r c h a s e

Pce(hich

i n c l u d e s

the

Return)

o r

O w n e r '

snterest

in

the

r e m i s e s ; and

F

Toe n a n t

if

n y

f u n d s

remain

after

paying

inull

th e

amounts

in

a r a g r a p h s

4A-

4Eabove

Any

o st

O v e l T u n s

wll

a l c u l a t e d

ne

of (

) any

C l a r k

s e t t l em en t

p r o c e e d s

paid

to

e n a n t ,

d i r e c t l y

ondirectly but (

ae to

t t o r n e y s and

other

professional fees and court

c o s t s

nor e f l e c t e d

ine n a n t ' sost

Ov e r ru n c a l c u l a t i o n

andno

a d v a n c e d

by Town Park

and (

b

he

l a r k

Credit

to

he

x t e n t paid

to

wner,

and

2

ny

prio

o v e r r u n

oq u i t y

r e p a y m e n t s

from

th e

t w o (

2

prio

uture advances

p a i d

to

e n a n t .

Cost

OvelTLtns

wll

e

subject

toa

ull a c c o u n t i n g

a n d

review byw n e r ,

wi th

the


5/23


6/23

7OWN

PARKHOTELO R P O R A T I O NAS

OTEL

M A N A G E R :

7.1 R e c i t a l s

B

and

paragraph

2f

them e n d m e n t s p r o p o s e dby

e n a n t

inhe

m e n d m e n t

Re

o w n

Park

to

g r e e m e n t

o

Lease

t t a c h e d

hereoand i n c o r p o r a t e dbye f e r e n c e

herein as Exhibit "

D"

shall

bencludedin

the

round

L e a s e

A m e n d m e n t ;

p r o v i d e d

however,

that

s a m e

shall

t e r m i n a t e

upon

theSale

of the

o t e l

o

he

e a r l i e r

to

c c u r of (

i)

ermination

o

heotel M a n a g e m e n t

A g re e m e n t b e tw e e n RDP

a n d Town

Park

o (

ii

fifteen (

15)

years

f r o m

H o t e l O p e n i n g Date.72

ection

16 .

7(

e

othe

e a s e

wll be

deeedin

ts

entirety. 7

Any p a y m e n t so

o s t s inconnection with the"

ote" ,

d/

o

o a n ,ase f i n e d

in

he Amendment

Re

own

P a r k tog r e e m e n t of Lease,

il l

not

be

considered

Operating

E x p e n s e s

as

h a t

termis

e f i n e d

in

he

Lease

7.4 T e n a n t w a r r a n t sand

represents

to

Owner and

the

City thaR e c i t a l s

B

o

he

m e n d m e n t s

p r op os ed

byT e n a n t

are

t r u e and

o r re c tand

re

a

material

i n d u c e m e n t

fo

O w n e r

a n d

the

Cty

to i n c l u d e these m e n d m e n t s

in

her o u n d Lease A m e n d m e n t .

8.

FF&E

E S E R V E :

8

H o t e l FF&Ee s e r v e .

The

e r c e n t a g e s stated

inect ion

16.

5

a

f

the

Lease

wthespec

to

he

Hote s h a l l

be

changed

aso l l o w s : L e a s e

Year

1

235ndhereafter

P e r c e n t a g e s

o

o t e l

R e v e n u e s

0%

1%

%

3%

4

9

HOR E CR E S T

R E S T A U R A N T :

9

1

h a n g e s

to

r t i c l e

33

f

th e

L e a s e .

Article

33

o

he Lease

sha

e

a m e n d e d

to

elete

therefrom

s u b s e c t i o n s (ahrough (f)

and

o

p e r m i t

in

the

aear i g i n a l l y c o n t e m p l a t e d

fo

he

Restaurant (

the"p a c e )

the


oa

spa,

dditional

m e e t i n g

space oohem p r o v e m e n t s

for

any reasonable hotel p u r p o s e

that

wll

b e n e f i t

the

operation

o

t h e

Hotel; r o v i d e d , h o w e v e r ,

tha

such

uses

are

p e r m i s s i b l e

under

al

applicable

l o c a l

laws a n d zoning

r d i n a n c e s .

The

i z e s

and dimensions

o

al

uch

f a c i l i t i e s

wthin

the Space

sha

bease a s o n a b l y

d e t e r m i n e d

by

R D P

and

thep e r a t o r s (

d e f i n e d


7/23


8/23


9/23

13ONCESSION A G R E E M E N T

UNDER

THE

L E A S E :

13

1

ee

P a y m e n t .

RD P

sha

pay the

C o n c e s s i o n

Fees

d u e

and

owing,

if

any

under

theo n c e s s i o n

A g r e e m e n t d e s c r i b e d inExhibit 14.

5oh e L e a s e

on

o

e f o r efve()ay s after the

las

e x e c u t i o n

o

ths

LO.h e

p a r t i e s

are

no

ow

awareo

any

such

o u t s t a n d i n g

fees3.2

L i c e n s e

F e e s .

R D P

sha

payo

cause to

b e

pad

he

0 1 T e s p o n d i n g

occupational license

f

ino n n e c t i o n wth

theeachront c o n c e s s i o n o p e r a t i o n fohe Hotel.

13S h o r e c r e s t

Condominium.Inhe eventhat RDP c r e a t e s

a

ote

c o n d o m i n i u m

on

the

S h o r e c r e s t Land

then,

in

hat

even,

RDPh a l l

pay (

or

cause

the

h o r e c r e s t

hoe

o n d o m i n i u m

association topay)he

c O I T e s p o n d i n g

a p p l i c a b l e

beach

c o n c e s s i o n

ees

o n s i s t e n t

wth

those

ees

charged

o t h e r

uplandpvae

wnes

o

hotel

and

o n d o m i n i u m

prope11ies.

14.L A R K

C O N S T R U C T I O N

L I T I G A T I O N

LIENS:

The e x i s t i n g

C l a r k

Litigation

liens

a n d

future

l i e n s ,

includng

liens filed

or w h i c h my

be

i l e d

by

s u b c o n t r a c t o r s ,

r e l a t i n g soeytohe

Clark

L i t i g a t i o n ,

ifany,gainst

the l e a s e h o l d

interesof

RDP inthe

ease

shall

no t

be

c o n s i d e r e danv e n t

o

e f a u l t under

any

o

th e

H o t e l

D o c u m e n t s

so

o n g

as

D P diligent ly a n d

in

o o d

fath

o n t i n u e s

to r o s e c u t e

its

laims

toe s o l v e

al

ssues

under

the

Clark

L i t i g a t i o n ;

p r o v i d e d

h o w e v e r ,

tha

o t h i n g contained herein

shall

r e l i e v e

R D Po

ts

esponsibility

toe m o v e

these

l i e n s and

to

resoveh o s e m a t t e r s

c o n t a i n e d

in

x h i b i t

C

ehe

by

r e s o l u t i o n

o

he

Clark

L i t i g a t i o n

o

o t h e r w i s e .

15.

A T T O R N E Y S

F E E S : Each party shall bear

its

ow

legal

fees relatingto

ths

or

and

he C l o s i n g D o c u m e n t s

e x c e p t

that

RDPhall

r e i m b u r s e

the

Agency

ahe

time

o

th e

e x e c u t i o n

date o

thel o s i n g

D o c u m e n t s

itse g a l f e e s up

to

he

firs $

0,

0 0 0

c h a r g e d

by

Bloom &

i n s k e r ,

P

L,

a s e d

uponn

houry

rae

o $

50.

00.

A g e n c y

shall p r o v i d e

to

DP

detai

led

satements

fo

rofessional

sevces

howing

tme

and

activity

on

aily basis

supporting

s a i d

r e i m b u r s e m e n t .

16

D D I T I O N A L T E R M S ,

C O N D I T I O N S

AND

SSUES

N O T C O V -

ERED

IN

THSOI:

B e c a u s e

o

he

c o m p l e x

nature

ohe

d o c u m e n t s

i n v o l v e d

an d

the

c h a n g e s being

c o n s i d e r e d

as

aresulto

hsor,

RDPhe

Agency

andthe

it y

shall

have

the righ

to

aise addtiona

t e r m s an d conditions a n d

i s s u e s

not

c o v e r e d inthsLOI

an d

w h i c h are

non co n s is ten t withthe


10/23

17PECAL

N D E M N I F I C A T I O N BY

RDP:RDP

sha

i n d e m n i f y and

hod

a r m l e s s and

shall

provide

d e f e n s e for

the

g e n c y

an d

the C i t y

by

counsel

reasonably

a c c e p t a b l e

to

the

g e n c y an d

the

Cty

e g a r d i n g

any

a n d

al

matters

a r i s i n g

o u t of,

oelating

d i r e c t l y

o

n d i r e c t l y

toanyh a l l e n g e s

by

any

third

p a r t i e s to

his

Lor

and

the

Cosng

D o c u m e n t s

e x c e p t

fo

those

h a l l e n g e s

a r i s i n g o ut

of theClark

C r e d i t ,

the

a y m e n t

and

partial w a i v e roack

R e n t and

thee t t l e m e n t

o

l l e g e d

delay caimst t r i b u t e d to

the

e n v i r o n m e n t a l

d a m a g e

and

r e c o n s t r u c t i o n

delays r e f e r r e d

to

in

a r a g r a p h

1

1

ohs

Lor .

18

O M P L E T I O N

G U A R A N T E E :

18.

1

he A g e n c y

and

he

City

acknowledge

tha

the

u a r a n t o r

u n d e r

the

o m p l e t i o n

G u a r a n t e e

g i v e n

to

he

Agency

and the

it y

shall

be

e r m i n a t e d

u p o n

d e l i v e r y

to

the

Agency

a n d

the

Cty

o

h e

certificate

b y

th e

A r c h i t e c t

described

inection

2

)

o

sad

G u a r a n t e e

andi n a l

CO

s

are

issuedaso n t e m p l a t e d by Section

2

ii)

f

sad

u a r a n t e e . In

a]

ther

r e s p e c t s , Guarantor has

complied

wth

its o b l i g a t i o n s u n d e r theu a r a n t e e .

The

o m p l e t i o n Deadlineisol]eduntil

s a i d

c e r t i f i c a t eis

delivered

and

heFna

O

re

issued.

19

E C L A R A

T I O N

OF

O V E N A N T S

A N D

R E S T R I C T I O N S :

19

1

Th e

parties

c k n o w l e d g e

that

th e

p a y m e n t

in

ull

by

RDPfthePurchase

P;ce

o

the

Agency

shal]no

ermina t e

theDc

aration.20LERICAL

C H A N G E S

TOH E

LEASE

AND

RELATED

E X I S T -

IN G

D O C U M E N T S :

Non

u b s t a n t i v e

clerica]

hanges

s u c h

as

c u r r e n t

mailing a d d r e s s e s in the

notice

p r o v i s i o n s

and

g r a m m a t i c a l

eTos

in

the

oe

D o c u m e n t s

shabe cor-rected

in

theC l o s i n g

D o c u m e n t s .

21. G E N E R A L :

21

1

D e f i n i t i v e

A g r e e m e n t s .

Upon

execution

o

this

Lo

by

DP,

the approval of the te r m s

h e r e o f

by

the

p p r o p r i a t e

A g e n c y

and

Cty

g o v e r n i n g

bodies

and

hex e c u t i o n

ohsOI

byhe

p p r o p r i a t e

A g e n c y a n d C i t y

o f f i c i a l s ,

the

Cosng

D o c u m e n t s

shall

be

r a f t e d .

T e n a n t

sha

s u b m i t

first

drafts

o

l

o

the

l o s i n g

Docu me nts

to

he

Agency

w

thn fifteen (15aysfter

such

p p r o v a l .

T he C l o s i n g

D o c u m e n t s

wil]

contain,

among

other

t h i n g s , r e p r e s e n t a -

tions

waITanties, c o n d i t i o n s , o v e n a n t s

and

n d e m n i t i e s

and

he

like

typical

in

i m i l a r t r a n s a c t i o n s , s u b j e c t to

the

e r m s

h e r e o f . F1Il1hermore, th e

part ies

to

his

LO I

r e c o g n i z e

that

due

to

heo m p l e x i t y othe

s t r u c t u r e

o

these t r a n s a c t i o n s ,

no

all

ofthe

mao

egal

i s s u e s have

been

c o v e r e d

by

his

LO.

h e c o n s u m m a t i o n

o

ther a n s a c t i o n s

c o n t e m p l a t e d

hereby

is

onditioned

upon

the

e g o t i a t i o n and e x e c u t i o n

o

he

C l o s i n g

D o c u m e n t s

with te rms,

p r o v i s i o n s an d

cond i t ions

m u t u a l l y

a c c e p t a b l e


11/23


12/23


13/23

21

13ivileged

S e t t l e m e n t

C o m m u n i c a t i o n .

T h i s

L O I

is

arivileged

s e t t l e m e n t

c o m m u n i c a t i o n e x c e p t

fothepecific

b i n d i n g

paragraphs

as

provided

in p a r a g r a p h 21.4 h is

LO .

The

r e m a i n d e r

o

ths

LOI

is

trictly inadmissible

for any

purpose pursuant to

ection

9008,l o r i d a Statutes

and

ue

408

F e d e r a l

Res

o

E v i d e n c e .

21.

14

t a t e m e n t s

A g a i n s t I n t e r e s t .Any

t a t e m e n t s

made byany party

to

ths

OI c o n t a i n e d

in

his

LO

h a v e been

made

soeyfor

the

u r p o s e o r e s o l v i n g

al

matters

e x i s t i n g b e t w e e n the

parties

tohis

LO.

l

p a r t i e s

toths

LOI

recog- n i z e

andg r e e

that

any

such

s t a t e m e n t s

my

notbeo r r e c t

a s

applied

to

any other p e r s o no

entities

n o t

a

a r t y to

this

LO

nd

more

s p e c i f i c a l l y ,

al

partiesto

this

LOI r e c o g n i z e and

gree

that

any

u ch

s t a t e m e n t s

my

no

be

on

ect as applied to

he

Clark

L i t i g a t i o n .

21

5 e c o r d i n g

Fees

and

the L i k e . R D P shall

pay

al

e c o r d i n g

fees

and

the

lkeo r

al

o

thel o s i n g

D o c u m e n t s

ony

o t h e r

d o c u m e n t s

c o n t e m p l a t e d

byhis LO.

21

16a i v e r

o

u ry

Trial.

Al

o

the

Closing D o c u m e n t s

sha,

here

applicable,

c o n t a i n

a

waverof

jury

trial

p r o v i s i o n .21

7 C r o s s

Deaut.The C o n v e n t i o n

C e n t e r Agre e me n t

s h a l l

be

amendedto

provide

tha

a

efault

in


14/23

AGREED

AND

ACKNOWLEDGED:

RDP

ROYAL

PALM

HOTEL

LIMITED

PARTNERSHIP,

a

Forida

limited

partnership

By:

PADC

HOSPITALITY

CORPORATION

1,a

l o r i d a

co

r

on,

as

eneral

P a r t n e r

B

E D E V E L O P M E N T

B

avid

D e r m e r

tle

Chairman

A t t e s t : - : -

U v u

if

p (

C

Lu

ame: Robert

Parcher

Ttle

C I T Y

B y :

eDvd

De rme r

Title:

Mayor

A t t e s t : ~ ( )

ftJA-~

ame: Robert

P a r c h e r

Title:

Cty

Cek

P P R O V E D

AS

TO

FORM&

L A N G U A G E

FOR

E X E C U T I O N

fU r ~ &

N ~

f

1- ~>

zd)

F:/

M i I S k ~

i

~:::~~leell~:'~i l l S k e l

N e w

La

IO

9-

03

d o c

14 -

D a t e d : \

1

5

I

2003


15/23


16/23

EXHBIT

B"

List

of

Disputed

Items

1

0

/

2 0 0 3

Th e f o l l o w i n g

is

is

of

o u t s t a n d i n g

dspues

regarding

the

ote

Deveopment

Agreement :

A R T I C L E

4

W N E R

P A R T I C I P A T I O N

4

wner'

s

R i q h t

to

Notice, c c e s s and

e v i e wa (

v

h e d e l i v e r y

by

e v e l o p e r

to

the

wner

owo (

2

o p i e s

o:

1

al

g r e e m e n t s

wth

contractors (

tha

wll

be

r o v i d e d upon

settlement

wth

Cak

o n s t r u c t i o n ) ,

s u b c o n t r a c t o r s ,

s u p p l i e r s ,

vendors

and

other Personsu p p l y i n g m a t e r i a l s

o

e r v i c e s

in

o n n e c t i o n

wth

the


o

he

Project in

x c e s s

o

wo

H u n d r e d

F i f t y T h o u s a n d

Dollars ($

250

000h i c h sha

be aggregated w i t h

respect

toach

Person

supplying

m a t e r ia l s

o

services;

5

alr a w d o w n s

of

equity

and

loanproceeds

under

the

oanocs

7p d a t e d Development

Budge

8

al

nter ior design

c o n t r o l

books

A R T I C L E

5.

I S C E L L A N E O U S

C O N S T R U C T I O N

P R O V I S I O N S

5

2

ameso

C o n t r a c t o r s ,

M a t e r ia l m e n .

e t c . -

Developer

shall

furnish to

Owner,

wth

alisf

each

c o n t r a c t o r ,

s u b c o n t r a c t o r , v e n d o r

and supplier

who

is perfo rming any labor

o

u p p l y i n g

m a t e r i a l

in

e x c e s s

o $5000 0 (

except

for

FF&

E

he

tems

sed

nrticle

4

nd

Atice

5bove,wllbesatisfied

by

the

T e n a n t '

s

e l i v e r y

of

an i t e m i z e d

Poject

Cos

S u m m a r i z a t i o n

and

Deb

q u i t y

Capital

Investment Summary ("

Poject

a p i t a l i z a t i o n Recap )

r e g a r d i n g

the

r o j e c t .

Theo l l o w i n g

is

a

is to

utstanding d i s p u t e s

r e g a r d i n g

th e

A g r e e m e n t

o

ease R T I C L E

11

O R T G A G E S 11.

13

e f i n a n c i n q

o

Debt b)

efinancinq

Not

R e l a t e d

to

a

efault -

If

Tenant

r e f i n a n c e s

its

Debt

in


17/23

i) to

Owner

to

pay

the

Purchase

Price for Owner'

s

Interest

in

the

Premises;

ii to Tenant

if

any

funds remain

after

p a y i n g

Owner the

full

Purchase

Price

for

Owner'

s Interest

in

the Premises

1

w n e r 's

u b o r d i n a t i o n

of

its

i g h tto

ental

s h a l l

b e at

the

ubordinated

A m o u n t

as ofthe

a te o

such

e f i n a n c i n g

by

T e n a n t .

2

e f ina nc ing P r o c e e d s " means t h e a m o u n t

o

h e


ohe

D e b t

less ( x

the

Balance

i m m e d i a t e l y

beore

u c h


o

th e

Debt, ( y

the

n t e r e s t

owingon

uch

B a l a n c e ,

and

z

easonable

refinancing t ransact ion

expenses r o k e r a g e

commssions

and

p r e p a y m e n t

fees

and

yiedm a i n t e n a n c e

c h a r g e s

r e l a t i n g

to

he D e b t

to

bee f i n a n c e d . T e n a n t

has

e e n r e q u e s t e d

toubm

financial i n f o r m a t i o n

regardingany

o s s i b l e


to

he A g e n c y .

Auch,

Tenant

wll

rovide

O w n e r

wth

an

f f i d a v i t

r e l a t i n g

to

he

nion P l a n t e r s

Bankoan

m o d i f i c a t i o n s

that

have

b e e n

closed

to

ate s u m m a r i z i n g the

use

n d

a p p l i c a t i o n o

he

additional

loan

proceeds

and

stating

the

fac

t h a t

n o n e

o

the

oan

p r o c e e d s used (

i

or

d i s t r i b u t i o n s

to

any

o

h e

Borrower'

s

artners o r m e m b e r s , (

ii)

o

e p a y

any

oh e

Borrower'

s

artners

or m e m b e r s , (

iii)o

epay

any

t h e r

person

o

ntity

which

l o a n e d

m o n e y to

th e

B o r r o w e r .

F\mr\$

L\

CHAISTIN

RDAo y a l p a l m

E x h i b i l


18/23

EXHIBIT C"

CLARK

EXHBIT)

The

following

is

a list of

outstanding

Clark

issues

disputes regarding

the

Hotel

Development

Agreement:

ARTICLE

2

O N S T R U C T I O N

2.

3

o m p l e t i o n

o


o f

the

Poiect

b

p o n

Substantial

C o m p l e t i o n

of


o

the

Project

D e v e l o p e r

sha

f u r n i s h

the

Owner

w i t h

the

o l l o w i n g :iertificate

of

the

Architect

re: S u b s t a n t i a l

Com p l e t i on iii) lien

w a i v e r s

in

fom

and

u b s t a n c e

reasonably

s a t i s f a c t o r y towner,ohe

han

Cark C o n s t r u c t i o n

lien

w a i v e r s

tha

wll

be

r o v i d e d

upon settlement

w i t h

Cak


vo n t r a c t o r '

s

i n a l

Affidavit,to

ber o v i d e d

upon

settlement

wth

Cark

Consruction

A R T I C L E

4

O W N E R

P A R T I C I P A T I O N4

2w n e r '

s

R i q h t tootice, Access

and

Review

b

he

final

critica

path

method ("

PM

S c h e d u l e ) The

Developer

wll

r o v i d e

the

a s t

C PM

Schedule

p r o v i d e d

by

l a r k inthe

e v e l o p e r 's

o s s e s s i o n .

To

h e

extent

the F i n a l

CPM

S c h e d u l e

is

providedas

a

esult

o

he

settlement

o

litigation

wth

Cak

the

e v e l o p e r

wll

provide

s a m e .

A R T I C L E

14. D I S H R G E

OF

LIENS

4 . 2i s c h a r q eoi e n s

a

f any me chan i c '

s

l a b o r e r '

s

e n d o r '

sa t e r i a l m a n

s

o

i m i l a r

statutory

lien (

ncluding

tax

lens

s

f i l e d a g a i n s t

the

oect

Ste...

e v e l o p e r shall c a u s e

it

o

bei s c h a r g e d .

H o w e v e r ,

D e v e l o p e r s h a l l

no

berequiredto

i s c h a r g e

a n y

such

ie n

if

e v e l o p e r has

furnished

O w n e r

wth

at D e v e l o p e r '

sp t i o n ,

a

ashe p o s i t ,

bond,

leter

of c r e d i t from

an

I n s t i t u t i o n a l

Lender o

ther

security.A

o

liens

fled

y

Cark

o n s t r u c t i o n ,

the

Deveoper

a g r e e s that

u p o n

s e t t l e m e n t

o

l i t i g a t i o n

wth

Clark Construction,al

lens

wll

be

i s c h a r g e d . F\


19/23

EXHIBIT "

D"

AMENDMENT

RE

TOWN PARK TO

AGREEMENT OF

LEASE

AMENDMENT

TO

AGREEMENT

OF

LEASE (

the "

Amendment")

is

made

and entered

into

as

of

the

da y

of ,

2 0 0 3

byand

e t w e e n

RDP

OYAL

PALMHOTEL

LIMTED

A R T N E R S H I P

a

orida

imted

partnership ( O w n e r )

and

MAM

BEACH

E D E V E L O P M E N T

A G E N C Y ,

a

ublic body

o r p o r a t e

and

politic ("

Tenan").

W I T N E S S E T HA

w n e r

and

Tenant

e n t e r e d

into

an

g r e e m e n t

oease, dated

O c t o b e r

21

1997, (

he

L e a s e ) ,

relating

to

rea

prope11y

moearticularly

d e s c r i b e d

therein (

t h e Property ).

Bown

Pak

o t e l

Corporation,

e n n e s s e e

c o r p o r a t i o n (

T o w n

Park ),is

the

HoteM a n a g e r d e f i n e d

in

he

L e a s e )

o

th

o t e l (

d e f i n e d

in

the

Lease).

C

o w n

Park

and

PADC

Royal

Palm

H o l d i n g s ,

LLC("

Bon"

ower")

re

p a r t i e s

to

that

certan

Loan

A g r e e m e n t

d a t e d April

30

001 (

he"

oan

A g r e e m e n t ) ,

w h e r e b y

Town

P a r k agreedto

o n v e y

to

Bon"o w e r

a

orty-

s e v e n and

66

00

e r c e n t (476%)Cass

A

imited

partnership

i n t e r e s t

in

e n a n t

in

o n s i d e r a t i o n

for

Bonowe

sxecution

and e l i v e r yo

h a t certain

P u r c h a s e

M o n e y

P r o m i s s o r y Notein

avoof

T o w n

P a r k (

the"ote"),h i c h Noteev i den c es

the loan

by

Town

Park

to

on-w e r ( the"

Loan").

.

Town

Pak

UTently

h o l d s

a

o n e

percent (

l

imited p a r t n e r s h i p

i n t e r e s t

in

Tenant.

E

ursuant to

ection

4.

01(

f)

f

the

o an

A g r e e m e n t ,

Town

P a r k

d e s i r e s

to

onfirm t h a t

theo a n

wll

e t r e a t e dasn

e q u i t y

i n t e r e s t in

T e n an t

fo r

purposes

o

the

e a s e so

o n g as

the

o an isu t s t a n d i n g .

N O W ,

T H E R E F O R E ,in

consideration

of

the

r e m i s e s

and

or

other g o o d

and

vauabe

o n s i d e r a t i o n ,

theeceipt

an d

suff iciency

ohich

is

ereby a c k n o w l e d g e d ,

thea r t i e s

agree

as

follows:

1

ecitals.

The

f o r e g o i n g

recitals

are

rue a n d c o n -

ecL2q u i t y

In terest .

Owner

and

enant hereby

a g r e e

t h a t

to

he

extent

tha

the

e a s e

d i s t i n g u i s h e s

b e t w e e n Town Park (

in

ts

capacity

as Hotel

Manager)

o l d i n g

o

n o t

h o l d i n g any

equity

i n t e r e s tine n a n t ,

the

o a n

e v i d e n c e d and

e c u r e d

byhe

Note

shall

be

reated

fo r

purposes

ofthe

ease

as

ow n Pak

h o l d i n g

anequtyn t e r e s tine n a n t .

3.o F u r t h e r

M o d i f ic a t i o n .

E x c e p t

as

m e n d e d

byh is

A m e n d m e n t ,

thee a s e ' and

all

ofitse r m s

and

p r ov is ions shae m a i n

in

u ll

forceand

ffect.

Inthe

v e n t

of


20/23


21/23

INWITNESS

WHEREOF, this

Amendment

has been

duly

executed

by

the

part ies

hereto.

WITNESSES:

4

L ;

t'

a

m

f.

J a J A '

RJJ Print

N a m e '

P

6//, '

;

I'\

3.

oU~rY

0

Pin

Name

OWNER":

MAM

A G E N C Y

B E A C H R E D E V E L O P M E N T

By :

P

W/

) ])

Gl2m&

L

Print

N a m e :

T i t l e :

f 1

A

I 1 t J

L

T E N A N T :

RDP

OYAL

PALMHOTEL

LIMTEDA R T N E R S H I P a

orida

imted

p a r t n e r s h i p

B

PADCospitality

C o r p o r a t i o n I,

a

Forida

o r p o r a t i o n ,

as

eneral

p a r t n e r

B y '

l 2 1 f f - ~ ~ ~

Title: ?

rt

P

Q .~

ft.-

b~

APPROVED

AS

TO

FORM &

LANGUAGe

FOR

EXECUTION

lil

M n J J II~

1 1 -


22/23

EXHIBIT "E"

RECOGNIZED

MORTGAGE

CONSENT

LETTER

UNION PLANTERS

BANK

2800 P o n c e deeon

Blvd.Coral

Gables,

Florida 33134

2003

iami

Beach

Redevelopment

Agency

Jorge

Gonzalez, xecutive

D i r e c t o r

1700

C o n v e n t i o n Center

Diveourth

F l o o r

M i a m i

B e a c h ,

Florida 33139

and-

Cty

o

Miami

Beachorge

Gonzalez, City M a n a g e r 1700

C o n v e n t i o n

Center

Dive

F O u t 1 h Foor M i a m i

Beach, l o r i d a 33139

Re

etter

o

ntentto

Amend

Royal

Palm

Crowne

Plaza

Resort

A g r e e m e n t s dated

2 0 0 3 ( "

LO"

e a r

M r .

G o n z a l e z :

We

are

in

ecep

o

a

opy of

theuly

xecuted LO .Weaeh e

R e c o g n i z e d

M o r t g a g e e

u n d e r the

Lease

w h i c h

is

heubject

o

h e LOI

as

hese t e r m s

ae

defined

in

the LOandh e

L e a s e .

S e c t i o n11

10

o

he

L e a s e

states

in

pat

as

olows O w n e r

agrees

o t

toccept

a

v o l u n t a r y

s u r r e n d e r ,

t e r m i n a t i o n o

modification

o

h is

L ea s e

a

n y

time

while

such

e c o g n i z e d

Mortgage(

s

h a l l

r e m a i n

a

ien

on

T e n a n t '

s

l e a s e h o l d

estate.

I

s

u r t h e r

u n d e r s t o o d

and

a g r e e d that

a n y

such

Recognized Mortgagee(ssha

o t bebound by

ny

surrender,

termination

or

modification of

ths

Lease

u n l e s s

such

sur render ,

termnation or m o d i f i c a t i o n

is

ade

with the

prior

written

c o n s e n to

s u c h

Recognized

M o r t g a g e e ,

andhis

L e a s e

shall not t e r m i n a t e

by m e r g e r

o

therwise

a s

ong

as


23/23