2014-28609 Item R7R from June 11, 2014 V o/V-a��O f�
COMMISSION ITEM SUMMARY
Condensed Title:
APPROVING AND AUTHORIZING A GRANT TO MOUNT SINAI, IN THE AMOUNT OF$15,000,000 PAYABLE
OVER A TERM OF 15 YEARS, FOR THE SOLE PURPOSE OF REIMBURSING MOUNT SINAI FOR COSTS
ASSOCIATED WITH MOUNT SINAI'S EMERGENCY ROOM EXPANSION PROJECT
Key Intended Outcome Supported:
Supporting Data (Surveys, Environmental Scan, etc
Item Summa /Recommendation:
Mt. Sinai has requested that the City partner with them to improve the Emergency Department facility and replace
it with 43,000 square feet of new and renovated space,which can serve more than 80,000 patients annually.The
new and renovated portions of the project are expected to cost approximately$30,000,000 and be completed in
May 2017 and January 2018, respectively,
The Commission approved the grant at the May 28, 2014 meeting, but directed that the Grant Agreement be
brought back to the June 11,2014 meeting for approval. Said Agreement would need to include the following:
1- that the annual payments from the City would be$1.million for fifteen years totaling$15 million;
2- that in lieu of interest, the City would either waive, or make a payment to Mount Sinai in an amount
equivalent to,the City's building permit fees paid by Mount Sinai on the 2014 projects subsequent to
their payment(not to exceed$1.5 million in the aggregate); and
3- that Mount Sinai would provide to the City as a public benefit, a permanent public access easement
(minimum 15 feet width) along the northern and western boundaries of the Mount Sinai property
where the City could extend the bay walk and also provide a possible bike path and connection to
the proposed Atlantic Greenway Network and to our planned Blue Way.
4- A 50 year lease to the City of 2,000 square feet at $1.00 per year for Emergency Management
purposes in the Emergency Department facility.
5- 700 one-day parking vouchers for seniors annually.
6- Quarterly outreach seminars at senior centers in the City.
7- Programs related to health care and careers in health care at schools located in the City.
Advisory Board Recommendation:
This item was heard at the May 20, 2014 Finance and Citywide Projects Committee who
recommended that the item be forwarded to the Mayor and City Commission for discussion.
Financial Information:
Source of Amount Account
Funds: 1 15,000,000 To Be Determined Annually during the Budget
process
2
OBPI Total 15,000,000
Financial Impact Summary:
In accordance with Charter section 5.02, this shall confirm that the City Administration evaluated the
long-term economic impact(at least 5 years) of this proposed legislative action, and determined that
there is sufficient capacity in the City's Funds to absorb the annual $1 million payment.
City Clerk's Office Legislative Tracking:
Sign-Offs:
Department Director Assistant City Manager ity Manager
PDW JLM
T:\AGENDA\2014\June\Mt Sinai-SUM.docx
MIAMIBEACH AGENDA ITEM R9R
� SATE
MIAMI BEACH
City of Miami Beach, 1700 Convention Center Drive,Miami Beach, Florida 33139,www.miamibeachfl.gov
COMMISSION MEMORANDUM
TO: Mayor Philip Levine and Members [RAND ity Co mission
FROM: Jimmy L. Morales, City Manager
DATE: June 11, 2014
SUBJECT: A RESOLUTION OF THE MAY CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA ("CITY") APPROVING AND
AUTHORIZING THE CITY MANAGER TO TAKE THE FOLLOWING
ACTIONS, SUBJECT TO AND CONDITIONED UPON THE
SUCCESSFUL NEGOTIATION BETWEEN THE CITY AND MOUNT
SINAI MEDICAL CENTER OF FLORIDA, INC. ("MOUNT SINAI") OF
THE GRANT AGREEMENT, LEASE AGREEMENT, BAYWALK
EASEMENT, AND ADDITIONAL BENEFITS (ALL AS HEREINAFTER
DEFINED): 1) AUTHORIZING A GRANT CONTRIBUTION TO MOUNT
SINAI, IN THE AMOUNT OF $15,000,000 ("GRANT MONIES"),
PAYABLE COMMENCING ON SEPTEMBER 15, 20159 OVER A TERM
OF 15 YEARS, FOR THE SOLE PURPOSE OF REIMBURSING
MOUNT SINAI FOR HARD AND SOFT COSTS ASSOCIATED WITH
MOUNT SINAI'S EMERGENCY ROOM EXPANSION PROJECT (THE
"ER PROJECT"); 2) REIMBURSING MOUNT SINAI FOR ALL
CITY BUILDING PERMIT FEES IN CONNECTION WITH THE
HOSPITAL IMPROVEMENTS (AS HEREINAFTER DEFINED), UP TO
(BUT NOT TO EXCEED) $1,500,000; 3) COVENANTING TO
ANNUALLY BUDGET AND APPROPRIATE THE ANNUAL
INSTALLMENT PAYMENT OF THE GRANT MONIES FROM
LEGALLY AVAILABLE NON-AD VALOREM REVENUES; 4)
DELEGATING AUTHORITY TO THE CITY MANAGER TO
NEGOTIATE THE FINAL TERMS OF THE GRANT AGREEMENT
WITH MOUNT SINAI ("GRANT AGREEMENT"); 5) ALSO
DELEGATING AUTHORITY TO THE CITY MANAGER TO
NEGOTIATE A) A LEASE AGREEMENT WITH MOUNT SINAI FOR
THE CITY'S EMERGENCY MANAGEMENT OFFICE, WITH SUCH
LEASED PREMISES HAVING UP TO 2000 SQUARE FEET, TO BE
LOCATED IN THE NEW EMERGENCY ROOM FACILITY, FOR A
TERM OF 50 YEARS AND $1 PER YEAR TOTAL RENT ("LEASE
AGREEMENT"), B) A PERPETUAL PUBLIC ACCESS EASEMENT IN
FAVOR OF THE CITY, ALONG THE NORTHERN AND WESTERN
BOUNDARIES OF THE MOUNT SINAI PROPERTY FOR THE
PURPOSE OF THE CITY'S CONSTRUCTION, MAINTENANCE AND
OPERATION OF A PUBLIC BAYWALK ("BAYWALK EASEMENT");
AND C) ADDITIONAL CITY BENEFITS PROFFERED BY MOUNT
SINAI AS ADDITIONAL CONSIDERATION FOR THE CITY'S AWARD
OF THE GRANT, SUCH BENEFITS TO INCLUDE (i) 700 ONE-DAY
PARKING VOUCHERS PROVIDED TO THE CITY ANNUALLY FOR
DISTRIBUTION BY THE CITY TO SENIOR CITIZENS, (ii)
QUARTERLY OUTREACH SEMINARS PROVIDED BY MOUNT SINAI
AT SENIOR CENTERS IN THE CITY, AND (iii) PARTICIPATION BY
MOUNT SINAI IN PROGRAMS RELATED TO HEALTH CARE AND
CAREERS IN THE HEALTH CARE INDUSTRY AT SCHOOLS
LOCATED IN THE CITY; AND 6) FURTHER DIRECTING THE MAYOR
AND CITY CLERK TO EXECUTE THE GRANT AGREEMENT, LEASE
AGREEMENT, AND ACCEPT THE BAYWALK EASEMENT UPON
CONCLUSION OF SUCCESSFUL NEGOTIATIONS
ADMINISTRATION RECOMMENDATION
Adopt the revised resolution and approve the Grant Agreement.
BACKGROUND
Since its founding in 1949, Mount Sinai has faithfully served the residents of the City,
Miami Dade County, and their visitors and guests. Over the course of its history, Mount
Sinai's mission and importance to the local community has greatly expanded to include
its designation as one of only ten statutorily designated teaching hospitals in the State of
Florida, and the City's largest private employer.
Mount Sinai has over 200,000 inpatient and outpatient admissions annually and is
currently the only hospital and emergency healthcare services provider on the island to
service Miami Beach's more than 5 million annual visitors.
The Emergency Room ("ER") was constructed in 1972 and is comprised of
approximately 16,000 square feet of space and was designed to serve approximately
20,000 patients annually. ER utilization has increased 46%, from 28,917 visitors in
2002, to 42,238 visitors in 2012, and is expected to significantly increase over the
coming years. Mt. Sinai needs to address and alleviate potential challenges that may
result from the continued growth of year-round tourism, special events and the ongoing
flow of Miami residents as well as residents of other south Florida communities who
travel to Miami Beach.
ANALYSIS
Mt. Sinai has requested that the City partner with them to improve the Emergency
Department facility and replace it with 43,000 square feet of new and renovated space,
which can serve more than 80,000 patients annually. The project will construct a new
facility which will be approximately 36,000 square feet with 40 treatment bays that will
accommodate triage, trauma, behavioral and other health issues. The project will also
renovate 7,000 square feet of the existing emergency facility and convert it to a 18-22
bed clinical decision/observation unit. Additionally, the project will accommodate an
advanced Emergency Operations Center. The new and renovated portions of the project
are expected to cost approximately $30,000,000 and be completed in May 2017 and
January 2018, respectively,
The item was discussed at the May 21, 2014 Commission meeting following a
presentation by Mt Sinai. The Commission agreed to bring the item back to its May 28,
2014 meeting. In preparation for the May 28th meeting, the Manager and Commissioner
Weithorn met with Mount Sinai representatives and tentatively agreed on the following
terms:
1- that the annual payments from the City would be $1 million for fifteen years
totaling $15 million;
2- a Lease Agreement with Mount Sinai for the City's use of a minimum of 2,000
square feet of space of the Emergency Operations Center on the Mount Sinai
campus. This lease shall be for utilization by the City's Emergency
Management Office for an initial minimum term of 50 years and a rental
amount of $1 per year (the City's consideration for rent on the Lease being
the Grant Monies). The City shall be responsible for all costs associated with
the tenant build-out of the Lease premises,
3- that in lieu of interest, the City would either waive or make a payment to
Mount Sinai in an amount equivalent to, the City's building permit fees paid
by Mount Sinai on the 2014 projects subsequent to their payment (but in no
event to exceed $1.5 million in the aggregate); and
4- that Mount Sinai would provide to the City as a public benefit, a permanent
public access easement (minimum 15 feet width) along the northern and
western boundaries of the Mount Sinai property where the City could extend
the bay walk and also provide a possible bike path and connection to the
proposed Atlantic Greenway Network and to our planned Blue Way.
On May 28th, the Commission adopted Resolution No. 2014-28609 which authorized the
City Manager and the City Attorney to negotiate the specific terms of this grant in a
separate Grant Agreement, and to bring such Grant Agreement back to the City
Commission for approval at the June 11, 2014 meeting. As part of said approval, the
City Commission requested, and the representatives of Mount Sinai in attendance,
agreed to include 700 one-day parking vouchers provided to the City annually for
distribution by the City to senior citizens, (ii) quarterly outreach seminars
provided by Mount Sinai at Senior Centers in the City, and (iii) participation by
Mount Sinai in programs related to health care and careers in the health care
industry at the schools located in the City.
The attached Grant Agreement incorporates the business deal approved by the City
Commission and makes the covenant to budget and appropriate funds subject to
successful negotiation and execution by the City and Mount Sinai of the Lease
Agreement, the Baywalk Easement and such other terms and conditions as are set forth
in the Grant Agreement.
The Mayor, City Clerk, City Manager, City Attorney, and Chief Financial Officer are also
authorized and directed to do all things and execute any and all documents necessary to
carry-out the intent of the attached resolution including, without limitation, engaging the
City's bond counsel (or other outside counsel selected by the City Attorney) and financial
advisor to assist in the negotiation and execution of the Lease Agreement and any other
documents. In the event that the City retains bond counsel (or other outside counsel) to
assist in the negotiation and execution of the Grant Agreement, Mount Sinai shall pay
any and all costs associated with the City's legal fees with respect thereto. The Mayor
and City Clerk are hereby authorized to execute the Grant Agreement, the Lease
Agreement and accept the Baywalk Easement upon conclusion of successful
negotiations.
CONCLUSION
The Administration recommends that the City Commission approve the revised
resolution and the Grant Agreement.
JLM/PDW
GRANT AGREEMENT
This Grant Agreement ("Agreement") is made effective as of this day of
, 2014 (the "Effective Date"), by and between the City of Miami Beach, Florida, a
municipal corporation duly organized and existing under the laws of the State of Florida (the
"Ci ") and Mount Sinai Medical Center of Florida, Inc., a Florida not-for-profit corporation(the
"Hospital") (the City and the Hospital each, a "Par " and collectively, the "Parties")
RECITALS
A. The Hospital desires to improve, renovate, construct and expand its current
medical center, including, without limitation, the ER Project (as hereinafter defined),
improvements to existing medical center facilities, and any work in connection with the
Hospital's seawall (collectively, the "Hospital Improvements").
B. The Parties acknowledge and agree that, as a critical component of the Hospital
Improvements, the Hospital shall improve, renovate, construct and expand its current emergency
room facility (the "ER") in order to, among other things, accommodate increased utilization rates
(the ER component of the Hospital Improvements is hereinafter referred to as the "ER Project").
C. The Parties acknowledge and agree that (i) the Hospital and the ER serve a vital
public purpose to the City, and (ii) the Hospital Improvements, including the ER Project,
constitute capital improvements to a physical asset which is essential to the welfare, safety, and
well-being of the residents of, and visitors to, the City.
D. Reference is made to that certain Resolution No. 2014_28609, passed and adopted by the
Mayor and City Commission of the City on May 28, 2014, and attached and incorporated as
Exhibit "A" hereto (the "Resolution"), in which, among other things, representatives of the City
authorized and approved the City's financial support of the ER Project and the Grant (as
hereinafter defined), subject to the terms and conditions of this Agreement, and subject further to
(i) the Hospital and City entering into a lease for certain premises within the new ER facility for
use by the City as an emergency management office (the "Lease"); (ii) the grant of a perpetual
public access easement by the Hospital, as grantor, in favor of the City, as grantee, for the City's
construction, operation and maintenance of a public baywalk along the bayfront boundaries of
the Hospital's property (the "Baywalk Easement"); (iii) seven hundred (700) one-day parking
vouchers provided to the City annually for distribution by the City at senior centers located
within the City ("Senior Centers"); (iv) quarterly outreach seminars (lectures) provided by the
Hospital at the Senior Centers; and (v) participation by the Hospital in programs related to health
care, careers in healthcare (such as career days) at schools located within the City, (subsections
(iii)through(v) are hereinafter referred to as "Additional City Benefits").
E. Consequently, and in furtherance of the Resolution, the City desires to grant to the
Hospital a grant, in the aggregate sum of$15,000,000 the "Grant" and any portion of such sum,
"Grant Monies") in accordance with the general terms and conditions contained in this
Agreement.
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F. In addition to and separate from the Grant, the City shall reimburse the Hospital
for fees paid by the Hospital to the City for building permits in connection with the Hospital
Improvements (the "Fee Reimbursement"). In no event shall the City's obligation to reimburse
the Hospital for the Fee Reimbursement exceed the amount of$1,500,000.
NOW THEREFORE, it is hereby mutually covenanted and agreed by and between the
Parties hereto that this Agreement is made in consideration of the terms, covenants and
conditions hereinafter set forth.
ARTICLE 1 —THE GRANT
1.1 The Recitals above are incorporated herein by reference.
1.2 The City hereby approves and authorizes the Grant and agrees to pay the Grant to the
Hospital, but solely from Non-Ad Valorem Revenues (as hereinafter defined) as provided
in Section 2.6., for the sole purpose of reimbursing a portion of the Hospital's hard and
soft costs incurred in connection with the ER Project (such costs, the "ER Project
Costs"), as further set forth herein.
1.3 The Hospital agrees and covenants to use the Grant (including, without limitation, all
portions of the Grant Monies) solely for the purpose of defraying a portion of the ER
Project Costs ("Hospital Compliance").-
1.4 The City hereby approves and authorizes the Fee Reimbursement and agrees to pay the
Fee Reimbursement to the Hospital, but solely from Non-Ad Valorem Revenues as
provided in Section 2.6., as further set forth herein. The Hospital agrees and covenants to
use the Fee Reimbursement solely for defraying the City building permit fees incurred by
the Hospital in connection with the Hospital Improvements.
1.5 The term of this Agreement (the "Term") will commence on the Effective Date and will
terminate, whereupon the Parties shall be released from all further obligations under this
Agreement, except those obligations which expressly survive the termination of this
Agreement, upon (i) the Grant being fully paid by the City to the Hospital, and (ii) the
Hospital's application, receipt of, and payment for, all building permits required from the
City in connection with the Hospital Improvements and the payment of the Fee
Reimbursement thereof, by the City to the Hospital (up to, but not to exceed, the amount
of $1,500,000). Notwithstanding the preceding, or any other term or condition of this
Agreement, the Parties hereby agree and acknowledge that the Lease, and the Baywalk
Easement are intended to survive the term/termination of this Agreement. Additionally,
regardless of whether the City prepays the Grant, the Hospital's obligations to provide the
Additional City Benefits shall remain in full force and effect for the full fifteen (15) year
duration of the Installment payments.
ARTICLE 2—FUNDING
2.1 The Grant shall be paid by the City to the Hospital in fifteen (15) consecutive annual
installments of $1,000,000 (each such funding, an "Installment"); provided, however,
that, at the City's discretion, the City may be excused from payment of an Installment for
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a period of up to one (1) year in the event of a force maj eure, as provided in Section 6.11
hereof.
2.2 Commencing with the first Installment payment on September 15, 2015, (the "Initial
Payment Date") each Installment shall be paid by the City to the Hospital on or before
September 15 of such year (each, a "Payment Date") by wire transfer to an account
designated by the Hospital; provided, however,that the City shall not be required to make
the first Installment payment unless and until (i) the Parties have executed the Lease; (ii)
the Parties have negotiated the terms of the Baywalk Easement, based upon the minimum
business terms set forth in the Resolution and the Hospital has conveyed a final executed
Baywalk Easement to the City; and (iii) the Parties have negotiated and mutually agreed
upon the terms of the Additional City Benefits, based upon the minimum terms set forth
in the Resolution and the Recitals contained in this Agreement and, based upon such
mutual agreement, the Hospital has commenced performance of such Benefits
(hereinafter, (i)through (iii) may also be referred to as the "Conditions Precedent").
2.3 If the Hospital has incurred, and paid, City building permit fees in connection with the
Hospital Improvements that may be reimbursed pursuant to a Fee Reimbursement, then
.the Hospital shall provide written notice to the City (a "Reimbursement Request"),
accompanied by evidence of payment and such other supporting documentation, as may
be reasonably requested by the City, specifying the applicable building permit and the fee
amount related thereto.
2.4 Within thirty(30) days after the City's receipt of a Reimbursement Request, the City shall
provide written notice to the Hospital indicating its intent (i) to pay the Fee
Reimbursement in the amount set forth in the Reimbursement Request; (ii) to pay the Fee
Reimbursement in an amount other than that set forth in the Reimbursement Request; or
(iii) not to pay the Fee Reimbursement, or any amount thereof, as requested in the
Reimbursement Request. In the event that the City responds in accordance with clause (i)
of the preceding sentence, the City shall fund the Fee Reimbursement to the Hospital
within five (5) days thereof. In the event that the City responds in accordance with clause
(ii) or (iii) of this Section 2.4, the City and the Hospital agree to cooperate with each
other for the purpose of establishing the accurate amount to be paid, if any, pursuant to a
Fee Reimbursement as soon as practicable thereafter, and the agreed-upon amount of the
Fee Reimbursement shall be paid within five (5) days of the agreement thereof.
2.5 The City may, at its option and upon thirty (30) days prior written notice to the Hospital,
prepay any amount of the Grant and/or Fee Reimbursement in whole or in part to the
Hospital. Any prepaid amount attributable to the Grant shall be deducted from the
scheduled Installments as determined by the City. If a notice of prepayment is given by
the City to the Hospital pursuant to this Section 2.5, the amount designated for
prepayment shall be due and payable on the proposed prepayment date, and shall be
made in the manner of Installment payments as set forth in Section 2.2.
2.6 Notwithstanding anything to the contrary contained in this Agreement or elsewhere, the
obligations of the City under this Agreement shall be subject to the provisions of this
Section 2.6. The City covenants to budget and appropriate in its annual budget, by
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amendment, if required, from Non-Ad Valorem Revenues, amounts sufficient to pay the
amounts due under this Agreement as the same shall become due. Such covenant to
budget and appropriate from Non-Ad Valorem Revenues shall be cumulative to the
extent not paid and shall continue until such Non-Ad Valorem Revenues sufficient to
make all required payments have been budgeted, appropriated and used to pay such
amounts. The Hospital and the City acknowledge the existence of Section 166.241,
Florida Statutes, which prescribes the budgetary process of the City and which prohibits
any expenditure or contractual obligation therefor from being made or incurred except in
pursuance of budgeted appropriations.
The City shall not be obligated to maintain or continue any of the activities of the City
which generate Non-Ad Valorem Revenues. In addition, in any fiscal year of the City,
the City may pay or make provision for payment of the expenses of providing Essential
Government Services (as defined below) of the City due or coming due in such fiscal
year from Non-Ad Valorem Revenues prior to being required to use any Non-Ad valorem
Revenues to pay amounts due hereunder.
Any Non-Ad Valorem Revenues which are restricted by a contract from being used to
pay the amounts due hereunder shall not be subject to the covenant to budget and
appropriate. Any Non-Ad Valorem Revenues which are prohibited by a general or
special law of the State of Florida from being used to pay the amounts due hereunder
shall not be subject to the covenant to budget and appropriate. Any source of Non-Ad
Valorem Revenues which is created after the date hereof and which is prohibited by a
general or special law of the State of Florida from being used to pay the amounts due
hereunder shall not be subject to the covenant to budget and appropriate.
The covenant to budget and appropriate set forth in this Section 2.6 does not create a lien
upon or pledge of the Non-Ad Valorem Revenues, nor does it preclude the City from
pledging in the future the Non-Ad Valorem Revenues, nor does it require the City to levy
and collect any particular Non-Ad Valorem Revenues, nor does it give the Hospital a
prior claim as opposed to claims of general creditors of the City. The City is not and
shall not be liable for the payment of the amounts due hereunder from any property other
than the Non-Ad Valorem Revenues as set forth in this Section 2.6. The Hospital shall
not have any right to resort to legal or equitable action to require or compel the City to
make any payment required hereunder from any source other than the Non-Ad Valorem
Revenues as set forth in this Section 2.6.
"Non-Ad Valorem Revenues" means in any fiscal year of the City, all revenues received
by the City in such fiscal year that are not derived from ad valorem taxation.
"Essential Government Services" means the provision of public safety and general
governmental services by the City, the expenditures for which are set forth as the line
items entitled "General Government Expenditures" and "Public Safety Expenditures" (or
similar line items) as reflected in the City of Miami Beach Statement of Revenues,
Expenditures and Changes in Fund Balances - Governmental Funds and as reported in the
City's Comprehensive Annual Financial Report.
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I
ARTICLE 3—CONDITIONS TO INITIAL FUNDING;
3.1 Notwithstanding anything else contained herein, as soon as practicable after the Effective
Date, the Hospital shall demonstrate, to the reasonable satisfaction of the City's Chief
Financial Officer (the "CFO's Approval"), that appropriate financing is in place for the
Hospital to commence the ER Project and, once commenced, that the Hospital has the
necessary funds to continuously prosecute such Project in good faith and with due
diligence, until completed. On or before that date which is ninety (90) days prior to the
Initial Payment Date, the City shall deliver written notice to the Hospital of the CFO's
Approval or a written notice containing instructions detailing how the Hospital may
obtain such approval (the "CFO's Instructions"). In the event that the City delivers the
CFO's Approval, and provided further that the Hospital has satisfied the Conditions
Precedent in Section 2.2 hereof, the initial Installment shall be made on the Initial
Payment Date. In the event that the City delivers the CFO's Instructions, and/or the
Hospital has not satisfied all or any of the Conditions Precedent, the City and the Hospital
agree to cooperate with each other for the purpose of obtaining the CFO's Approval
and/or satisfying the Conditions Precedent as soon as practicable thereafter, and the
initial Installment shall be made on the later of the Initial Payment Date or within five (5)
days of the City's delivery of written notice of the CFO's Approval and/or satisfaction of
the Conditions Precedent. For the avoidance of any doubt, from and after the time of the
CFO's Approval, all subsequent Installments shall be due on the applicable Payment
Date, except as may be otherwise provided herein.
ARTICLE 4—BOOKS AND RECORDS; INSPECTION RIGHTS
4.1 The Hospital shall maintain adequate records to justify all charges, expenses, and costs
incurred which represent the (i) Grant funded portion of the ER Project and the (ii) Fee
Reimbursement, for at least three (3) years after completion of the ER Project. The City
shall have access to all books, records, and documents as required in this Article for the
purpose of inspection or auditing during normal business hours.
4.2 The Hospital shall maintain accounts, books and records in connection with the Grant
(including, without limitation, all portions of the Grant Monies) and the Fee
Reimbursement. The Hospital shall use reasonable commercial efforts to maintain such
accounts, books and records in such a manner that it will not be unduly costly or difficult
for the City to segregate, ascertain or identify the use of Grant Monies and/or the Fee
Reimbursement to determine Hospital Compliance, determine compliance with the Fee
Reimbursement or to otherwise determine Hospital compliance with the other terms and
conditions of the Grant (including, without limitation, ongoing compliance with the
Additional Benefits)during a City Inspection (as hereinafter defined).
4.3 The City shall have inspection and audit rights to determine compliance with items in
Section 4.2 hereof(the "City Inspection") as follows:
(i) At any time during the Term of this Agreement, the City or its
designated agent may examine, in accordance with generally accepted accounting
principles, all records directly or indirectly related to the Grant for the purpose of
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determining Hospital Compliance or compliance with any of the other items delineated in
Section 4.2; provided, however, that in the event the City should become involved in a
legal dispute with a third party arising in connection with this Agreement, the Hospital
shall extend the period for City Inspection until the final disposition of the legal dispute
or such other time as the Parties may agree.
(ii) Any City Inspection shall be (A) subject to the City providing the
Hospital with three (3) business days prior written notice thereof; and (B) performed
during the regular business hours of the Hospital on regular business days of the Hospital.
ARTICLE 5—BREACH, OPPORTUNITY TO CURE AND TERMINATION.
(a) Each of the following shall constitute a default by the Hospital:
(1) If the Hospital uses all or any portion of the Grant Monies for costs not
associated with the ER Project, or the Hospital uses all or any portion
of the Fee Reimbursement for purposes other than to reimburse
Hospital for costs incurred for City building permit fees for the
Hospital Improvements, and the Hospital fails to cure its default within
thirty (30) days after written notice of the default is given to the
Hospital by the City; provided, however, that if not reasonably possible
to cure such default within the thirty (30) day period, such cure period
shall be extended for up to ninety (90) days following the date of the
original notice if within thirty (30) days after such written notice the
Hospital commences diligently and thereafter continues to cure.
(2) If the Hospital shall breach any of the other covenants or provisions in
this Agreement, and the Hospital fails to cure its default within thirty
(30) days after written notice of the default is given to the Hospital by
the City; provided, however, that if not reasonably possible to cure
such default within the thirty (30) day period, such cure period shall be
extended for up to ninety (90) days following the date of the original
notice if within thirty (30) days after such written notice the Hospital
commences diligently and thereafter continues to cure.
(b) Remedies:
(1) Upon the occurrence of a default as provided in Section 5(a), and such
default is not cured within the applicable grace period, the City, in
addition to all other remedies conferred by this Agreement,, the
Hospital shall reimburse the City, in whole or in part, as the City shall
determine, all Grant Monies and Fee Reimbursements provided by the
City hereunder; provided, however, that if the Parties have negotiated
the final terms of the Additional Benefits and the Hospital has
commenced performance of the Additional Benefits subject to those
terms, but subsequently defaults on its obligation to provide such
Benefits, then the City's remedies for such default shall be limited to
those provided in Article 5(b)(2) below.
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(2) The City may institute litigation to recover damages for any default or
to obtain any other remedy at law or in equity (including specific
performance, permanent, preliminary or temporary injunctive relief,
and any other kind of equitable remedy).
(3) The rights and remedies of the City are cumulative and the exercise by
the City of one or more of such rights or remedies shall not preclude
the exercise by it, at the same or different times, of any other rights or
remedies for the same default or any other default.
(4) Any failure of the City to exercise any right or remedy as provided in
this Agreement shall not be deemed a waiver by the City of any claim
for damages it may have by reason of the default.
(5) Upon the occurrence of a default by the Hospital which remains
uncured within the time periods provided in Article 5(a), the City may
terminate this Agreement, upon written notice to Mount Sinai. Upon
termination of this Agreement, the.City shall have no further liability
or obligation to the Hospital.
ARTICLE 6--GENERAL PROVISIONS
6.1 The City's obligations to fund the Grant and the Fee Reimbursement to the
Hospital are separate, apart and in addition to, and are not and shall not be
deemed to be part of or included within any or all other financial obligations of
the City to the Hospital, if any.
6.2 Failures or waivers to insist on strict performance of any covenant, condition, or
provision of this Agreement by the Parties, their successors and assigns shall not
be deemed a waiver of any of its rights or remedies, nor shall it relieve the other
Party from performing any subsequent obligations strictly in accordance with the
terms of this Agreement. No waiver shall be effective unless in' writing and signed
by the Party against whom enforcement is sought. Such waiver shall be limited to
provisions of this Agreement specifically referred to herein and shall not be
deemed a waiver of any other provision. No waiver shall constitute a continuing
waiver unless the writing states otherwise.
6.3 Should any term or provision of this Agreement be held, to any extent, invalid or
unenforceable, as against any person, entity or circumstance during the term
hereof, by force of any statute, law or ruling of any forum of competent
jurisdiction, such invalidity shall not affect any other term or provision of this
Agreement, to the extent this Agreement shall remain operable, enforceable and
in full force and effect to the extent permitted by law.
6.4 This Agreement may be amended only with the written approval of the Parties.
6.5 This Agreement states the entire understanding and agreement between the Parties
and supersedes any and all written or oral representations, statements,
7
4298716/2/MIAMI
negotiations or agreements previously existing between the Parties with respect to
the subject matter of this Agreement.
6.6 The Parties agree that time is of the essence in the performance of each and every
obligation under this Agreement.
6.7 In the event a dispute arises that the Parties cannot resolve between themselves,
the Parties shall have the option to submit their dispute to non-binding mediation.
The mediator or mediators shall be impartial, shall be selected by the Parties, and
the cost of the mediation shall be borne equally by the Parties.
6.8 The City's obligation to fund all or any portion of the Grant is subject to and
contingent upon such funding continuing to be allowed and permissible pursuant
to applicable Florida law, as same may be amended from time to time. In the
event that City's performance and obligation to the Hospital with respect to the
Grant is rendered impossible by applicability of law(s), then the Parties agree that
City's obligation shall be extinguished, and that neither Party shall have any
further liability to the other with respect to the Grant.
6.9 In the event that the City or the Hospital institutes any action or suit to enforce the
provisions of this Agreement, the prevailing party in such litigation shall be
entitled to reasonable costs and attorney's fees at the trial, appellate and post-
judgment levels. This Agreement shall be governed by and construed in
accordance with the laws of the State of Florida. The City and the Hospital agree
to submit to service of process and jurisdiction of the State of Florida for any
controversy or claim arising out of*or relating to this Agreement or a breach of
this Agreement. Venue for any court action between the parties for any such
controversy arising from or related to this Agreement shall be in the Eleventh
Judicial Circuit in and for Miami-Dade County, Florida, or in the United States
District Court for the Southern District of Florida, in Miami-Dade County,
Florida.
6.10 Any notice, consent or other communication required to be given under this
Agreement shall be in writing, and shall be considered given when delivered in
person or sent by facsimile or electronic mail (provided that any notice sent by
facsimile or electronic mail shall simultaneously be sent personal delivery,
overnight courier or certified mail as provided herein), one business day after
being sent by reputable overnight carrier or 3 business day after being mailed by
certified mail, return receipt requested, to the parties at the addresses set forth
below(or at such other address as a party may specify by notice given pursuant to
this Section to the other party):
To: The City: To: The Hospital:
8
4298716/2/MIAMI
6.11 Force Mai eure. Whenever a period of time is herein prescribed for the
taking of any action by a Party hereunder (including, without limitation, the time periods
prescribed under Article 2 hereof for payment of an Installment or a Fee Reimbursement), such
Party shall not be liable or responsible for any delays(including, without limitation, any delay by
the City in making an Installment Payment or a Fee Reimbursement payment), nor shall such
Party be obligated to perform hereunder, nor deemed to be in default hereunder, if the required
action or performance of a Party is prevented due to strikes, riots, acts of God, shortages of labor
or materials, war, governmental laws, regulations or restrictions, or any other cause whatsoever
beyond the control of such Party.
i
[REMAINDER OF PAGE LEFT INTENTIONALLY BLANK]
9
4298716/2/MIAMI
IN WITNESS WHEREOF, the Parties hereby execute this Agreement on the date written
below, to be effective as of the Effective Date.
ATTEST: HOSPITAL:
MOUNT SINAI MEDICAL CENTER OF
FLORIDA, INC., a Florida not-for-profit
corporation
Secretary:
By:
Name:
Print Name: Title:
STATE OF FLORIDA
COUNTY OF MIAMI-DADE
The foregoing instrument was acknowledged before me this day of , 2014, by
, as of the MOUNT SINAI MEDICAL CENTER OF FLORIDA,
INC., a Florida not-for-profit corporation, on behalf of such not-for-profit corporation. They are
personally known to me or produced valid Florida driver's licenses as identification.
Notary Public
Print Name:
My Commission Expires:
10
4298716121MIAMI
IN WITNESS WHEREOF, the Parties hereby execute this Agreement on the date written
below, to be effective as of the Effective Date.
ATTEST: CITY:
CITY OF MIAMI BEACH, FLORIDA, a
municipal corporation of the State of Florida
By: By:
Rafael E. Granado Philip Levine
City Clerk Mayor
STATE OF FLORIDA
COUNTY OF MIAMI-DADE
The foregoing instrument was acknowledged before me this day of , 2014, by
Philip Levine, as Mayor and Rafael E. Granado, as City Clerk of the CITY OF MIAMI BEACH,
FLORIDA, a municipal corporation of the State of Florida, on behalf of such municipal corporation.
They are personally known to me or produced valid Florida driver's licenses as identification.
Notary Public
Print Name:
My Commission Expires:
APPROVED AS TO
FORM & LANGUAGE
&FOR EXECUTION
City Attorney Date
4298716/2/MIAMI
RESOLUTION NO.2014-28609
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA ("CITY") APPROVING AND AUTHORIZING
THE CITY MANAGER TO TAKE THE FOLLOWING ACTIONS, SUBJECT TO
AND CONDITIONED UPON THE SUCCESSFUL NEGOTIATION BETWEEN
THE CITY AND MOUNT SINAI MEDICAL CENTER OF FLORIDA, INC.
("MOUNT SINAI") OF THE GRANT AGREEMENT, LEASE AGREEMENT,
BAYWALK EASEMENT, AND ADDITIONAL BENEFITS (ALL AS
HEREINAFTER DEFINED): 1) AUTHORIZING A GRANT CONTRIBUTION
TO MOUNT SINAI, IN THE AMOUNT OF $15,000,000 ("GRANT MONIES"),
PAYABLE COMMENCING ON SEPTEMBER 15, 20159 OVER A TERM OF 15
YEARS, FOR THE SOLE PURPOSE OF REIMBURSING MOUNT SINAI FOR
HARD AND SOFT COSTS ASSOCIATED WITH MOUNT SINAI'S
EMERGENCY ROOM EXPANSION PROJECT (THE "ER PROJECT"); 2)
REIMBURSING MOUNT SINAI FOR ALL CITY BUILDING PERMIT FEES IN
CONNECTION WITH THE HOSPITAL IMPROVEMENTS (AS HEREINAFTER
DEFINED), UP TO (BUT NOT TO EXCEED) $1,500,000; 3) COVENANTING TO
ANNUALLY BUDGET AND APPROPRIATE THE ANNUAL INSTALLMENT
PAYMENT OF THE GRANT MONIES FROM LEGALLY AVAILABLE NON-
AD VALOREM REVENUES; 4) DELEGATING AUTHORITY TO THE CITY
MANAGER TO NEGOTIATE THE FINAL TERMS OF THE GRANT
AGREEMENT WITH MOUNT SINAI "GRANT AGREEMENT" • 5 ALSO
DELEGATING AUTHORITY TO THE CITY MANAGER TO NEGOTIATE A) A
LEASE AGREEMENT WITH MOUNT SINAI FOR THE CITY'S EMERGENCY
MANAGEMENT OFFICE, WITH SUCH LEASED PREMISES HAVING UP TO
2000 SQUARE FEET, TO BE LOCATED IN THE NEW EMERGENCY ROOM
FACILITY, FOR A TERM OF 50 YEARS AND $1 PER YEAR TOTAL RENT
("LEASE AGREEMENT"), B) A PERPETUAL PUBLIC ACCESS EASEMENT
IN FAVOR OF THE CITY, ALONG THE NORTHERN AND WESTERN
BOUNDARIES OF THE MOUNT SINAI PROPERTY FOR THE PURPOSE OF
THE CITY'S CONSTRUCTION, MAINTENANCE AND OPERATION OF A
PUBLIC BAYWALK("BAYWALK EASEMENT"); AND C)ADDITIONAL CITY
BENEFITS PROFERRED BY MOUNT SINAI AS ADDITIONAL
CONSIDERATION FOR THE CITY'S AWARD OF THE GRANT, SUCH
BENEFITS TO INCLUDE (i) 700 ONE-DAY PARKING VOUCHERS PROVIDED
TO THE CITY ANNUALLY FOR DISTRIBUTION BY THE CITY TO SENIOR
CITIZENS, (ii) QUARTERLY OUTREACH SEMINARS PROVIDED BY
MOUNT SINAI AT SENIOR CENTERS IN THE CITY, AND (iii)
PARTICIPATION BY MOUNT SINAI IN PROGRAMS RELATED TO HEALTH
CARE AND CAREERS IN THE HEALTH CARE INDUSTRY AT SCHOOLS
LOCATED IN THE CITY; AND 6) FURTHER DIRECTING THE MAYOR AND
CITY CLERK TO EXECUTE THE GRANT AGREEMENT, LEASE
AGREEMENT, AND ACCEPT THE BAYWALK EASEMENT UPON
CONCLUSION OF SUCCESSFUL NEGOTIATIONS.
WHEREAS, since its founding in 1949, Mount Sinai has faithfully served the residents of the
City, Miami Dade County,and their visitors and guests; and
WHEREAS, over the course of its history, Mount Sinai's mission and importance to the local
community has greatly expanded to include its designation as one of only ten statutorily designated
teaching hospitals in the State of Florida, and the City's largest private employer; and -
WHEREAS, Mount Sinai has over 200,000 inpatient and outpatient admissions annually; and
WHEREAS, Mount Sinai is currently the only hospital and emergency healthcare services
provider on the barrier islands to service Miami Beach's more than 5 million annual visitors; and
WHEREAS, the Emergency Room ("ER") was constructed in 1972 and is comprised of
approximately 16,000 square feet of space; and
WHEREAS, ER utilization increased 46%, from 28,917 visitors in 2002, to 42,238 visitors in
2012, and is anticipated to increase approximately 49%,to a total of 62,800 visitors by 2020; and
WHEREAS, the aforementioned ER utilization rates occurred during a period of time in the
City's history when its resident population remained static or experienced slight declines; and
WHEREAS, ER utilization rates are highly correlated to increase in average daily visitors, with
visitor rates during the same ten-year period between 2002 and 2012 experiencing similar annual growth
trends,yielding a .969 correlation co-efficient between growth in the tourism industry and ER usage; and
WHEREAS, Mount Sinai desires to improve, renovate, construct and expand its current medical
center including, without limitation, its current emergency room facility (the "ER project") in order to,
among other things, accommodate increased utilization rates; and
WHEREAS, the Mayor and City Commission hereby find and declare that the ER Project (as
defined in this Resolution) is a capital improvement to a physical asset which is essential to the welfare,
safety, and well-being of the residents of, and visitors to, the City, and that, as such, the Project serves a
vital public purpose to the City; and
WHEREAS, non-ad valorem revenues may, in part, be.utilized to fund capital improvements and
the maintenance of all physical assets which are essential to the welfare, safety, and well-being of the
residents of, and visitors to,the City, and which serve a public purpose to the City.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY
COMNIISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that, subject to and conditioned
upon the successful negotiation of the Grant Agreement, Lease Agreement, Baywalk Easement, and
Additional City Benefits (all, as defined in this Resolution), the Mayor and City Commission hereby
approved and authorize the following actions:
Section 1. The City is hereby authorized to provide Mount Sinai with a grant, to be funded
as provided in Section 2 below, in the amount of$15,000,000, paid in annual installments over a 15-year
term of$1,000,000 (the "Grant Monies"). The Grant Monies shall be used solely for the ER Project and,
at a minimum, the Grant Agreement shall give the City audit and inspection rights to ensure this. Prior to
payment of the first installment of the Grant Monies to Mount Sinai, Mount Sinai shall demonstrate, to
the satisfaction of the City's Chief Financial Officer,that it has the necessary funds ready and available to
undertake and complete the ER Project. Provided the City and Mount Sinai a) successfully negotiate the
final terms of, and execute, the Grant Agreement and Lease Agreement; b) as to the Baywalk Easement,
that Mount Sinai executes and conveys and the City accepts, such Easement; and c) the City and Mount
Sinai negotiate the final terms for Mount Sinai's provision of the Additional City Benefits, the term of the
Grant Agreement shall commence at the start of the City's 2014-2015 Fiscal Year. The Grant Monies
shall be used for the sole purpose of reimbursing Mount Sinai for costs associated with the ER Project.
Section 2. The City is hereby authorized to reimburse Mount Sinai, in an amount up to, but
not to exceed, $1,500,000, for all City building permits required for the ER Project, as well as City
building permit fees incurred by Mount Sinai in connection with other hospital improvements which
Mount Sinai intends to undertake concurrent with the ER Project. In addition to the ER Project, these
improvements include the improvement, renovation,construction, and expansion of the current medical
center facilities and work in connection with the Hospital's seawalls (together with the ER Project, the
aforestated improvements are collectively referred to as the"Hospital Improvements").
Section 3. The City is hereby authorized to covenant to budget and appropriate in its annual
budget, by amendment if necessary, from legally available non-ad valorem revenues in the then current
fiscal year, amounts sufficient to pay the Grant Monies coming due in such fiscal year, until paid in full.
Such covenant to budget and appropriate funds shall be subject to the terms and conditions negotiated in
the final Grant Agreement and, subject further to the successful negotiation and execution by the City and
Mount Sinai of the Grant Agreement and Lease Agreement; successful negotiation, execution and
conveyance by Mount Sinai, and acceptance by the City of the Baywalk Easement; and successful
negotiation of the final terms under which Mount Sinai shall provide the Additional City Benefits.
Section 4. The City Manager is authorized to negotiate the Grant Agreement, consistent
with the business terms set forth in this Resolution. Said Agreement shall also reserve to the City, at is
sole option, the right to pre-pay the Grant Monies, without penalty or premium and with such discounts
(if any)as may be reflected in the Grant Agreement.
Section 5. The City Manager is also authorized to negotiate the Lease Agreement (or
"Lease") for the City's use of up to 2000 square feet of space in the new expanded Emergency Room
Facility, in a space to be determined by the City and Mount Sinai. Said Lease shall be for the operation of
the City's Emergency Management Office for an initial minimum term of 50 years and a total rental
amount of$1 per year (the City's consideration for rent on the Lease being the Grant Monies). The City
shall bear all costs associated with the tenant build-out of the Lease premises.
Section 6. The City Manager is further authorized to negotiate a perpetual public access
easement with Mount Sinai (as grantor)along the northern and western bay front boundaries of the Mount
Sinai property, for the City's (as grantee) construction, maintenance and operation of a public baywalk
("Baywalk Easement"). The Baywalk Easement would have approximately a minimum fifteen foot(15')
width, subject to existing impediments to that width, and would be designed by the City to accommodate
pedestrian and bicycle use and (as determined by the City) would also allow for the inclusion of other
amenities such as benches,a kayak stop, and a fishing pier.
Section 7. The City Manager 'shall include the Additional City Benefits in the Grant
Agreement, and is further authorized to negotiate the final specific terms under which Mount Sinai shall
provide the Additional Benefits.
Section 8. The Mayor, City Clerk, City Manager, City Attorney, and Chief Financial
Officer are hereby authorized and directed to do all things and execute any and all documents necessary
to carry-out the intent of this Resolution including, without limitation, engaging the City's bond counsel
(or other outside counsel selected by the City Attorney) to assist in the negotiation and execution of the
Grant Agreement and Lease Agreement. In the event that the City retains bond counsel (or other outside
counsel) to assist in the negotiation and execution of the Grant Agreement and Lease Agreement, Mount
Sinai shall pay any and all costs associated with the City's legal fees with respect thereto. Additionally,
Mount Sinai and its authorized representatives and the City Manager, City Attorney, and Chief Financial
Officer hereby pledge to each other to use and make all good faith reasonable efforts to negotiate the
Lease Agreement, Baywalk.Easement, and Additional Benefits in accordance with the minimum business
terms set forth for each pursuant to this Resolution. Upon conclusion of successful negotiation by the
City and Mount Sinai of the Grant Agreement, Lease Agreement (the "Agreements"), and Baywalk
Easement,the Mayor and City Clerk are hereby authorized to execute the Agreements and, in the case of
the Baywalk Easement, upon successful negotiation and execution of the Easement and execution and
conveyance of the Easement to the City by Mount Sinai, the Mayor and City Commission are hereby
authorized to accept such Easement.
PASSED AND ADOPTED this day of , 2014.
MAYOR
ATTEST:
CITY CLERK
F:\ATTO\AGUR\RESOS-ORD\Mount Sinai Medical Center-Resort Tax Resolution(Final 64-14).docx
APPROVED AS TO
FORM & LANGUAGE
&Fr)R EXECUTION
City Attorney Da e
LEASE AGREEMENT
LEASE AGREEMENT (this "Lease"), made and entered into on this the day of
, 2014, by and between Mount Sinai Medical Center of Florida, Inc., a Florida not-
for-profit corporation ("Landlord"), and the City of Miami Beach, Florida, a municipal
corporation duly organized and existing under the laws of the State of Florida("Tenant").
WITNESSETH
1. Definitions.
(a) "Premises" shall mean a space, of no less t�han�1,,000 square feet, but up to 2,000
square feet as reasonably determined by Landlord and Tenant, cated in the Building at the
property in Miami Beach, Florida commonly known as the Mount Sinai Medical Center.
(b) Building shall mean the building at the Mount Sinai Medical Center in which
the Premises are located.
(c) Base Rental shall mea $1.00,per year.
(d) Commencement Date shall mean the earlier of(i) the date that Tenant actually
occupies the Premises or tlfe�conduct of its operations--therein, or (ii) the date of substantial
completion of the to dim. ro ements\to Vbe o st c ed b Tenant in the Pr mis in
p � p � � � �y Premises
accordance with the(Work Letteri,\which improve n�ents Tenant shall (subject to Force Majeure)
substantially complete or be deemed to have substantially completed) within four (4) months of
the date that Landlord el" possession of the Premises with all Shell Improvements
substantially completed..
(e)\ Lease Ternr�shall�mean a term commencing on the Commencement Date and
continuing for (50) years,�(plus�any�partial calendar month in which the Commencement
Date falls), unless earlier terminated in accordance with this Lease.
\\
(f) "Common Areas' shall mean those areas within the exterior walls of the Building
(including roof top\sruc ures) devoted to corridors, elevator foyers, restrooms, mechanical
rooms (containing machinery, equipment, or controls for the air conditioning, security,
telecommunications, elevators, and other Building systems), janitorial closets, electrical and
telephone closets, vending areas, lobby areas (whether at ground level or otherwise), and other
similar facilities provided for the common use or benefit of tenants of the Building generally
and/or the general public.
(g) "Service Areas" shall mean those areas within the exterior walls of the Building
used for Building stairs, elevator shafts, flues, vents, stacks, pipe shafts and other vertical
penetrations (but shall not include any such areas designated for the exclusive use of a particular
Building tenant).
128973049;4}
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267206/7(TAMPA
(h) "Building Standard Improvements", when used herein, shall mean the "Shell
Improvements" (hereinafter defined) to the Building and the "Tenant Improvements" (hereinafter
defined) which shall be provided using "Building Grade" (hereinafter defined) construction and
materials according to the Work Letter attached hereto as Exhibit "A" and incorporated herein
for all purposes.
(i) "Shell Improvements" shall mean those certain improvements which have or will
be constructed and installed in the Building by Landlord as provided in Exhibit "A" hereto.
(j) "Tenant Improvements" shall include those improvements constructed or installed
on the Premises by or for Tenant as provided in Exhibit "A" hereto, using "Building Grade"'
(hereinafter defined) construction and materials where appropriate.
(k) "Building Grade" shall mean: (i)t eh type, brand and/or q uality of materials
Landlord designates from time to time to be,the minimum quality to be used in the Building or,
as the case may be, the exclusive type, grade q�ality of material to be used in the Building;
and(ii)the standard method of construction and installation/technique to be used in the Building.
(j) "Operating Expenses" shall mean the amo-unt`f the annual operating expenses
incurred by Landlord in connection with the ownership, operation, maintenance and management
of the Building.
2. Lease Grant.
(a) Subject to and upon the terms herein set forth, Landlord leases to Tenant and
Tenant leases from Landlord the Premises.
(b) Tenant shall construct certain improvements in the Premises in accordance with
the Work Letter attached.hereto as Exhibit "A".
3. \Lease Term. This,`Lease shall continue in force during a period beginning on the
Commencement Date and continuing until the expiration of the Lease Term, unless this Lease is
sooner termiriated, �or extended',to a later date under any other term or provision hereof.
4. Use. The\Premises shall be used for emergency management office purposes and for no
other use or u ose without Landlord's prior written consent in Landlord's reasonable
p � � p
discretion. Tenant agrees not to'use or permit the use of the Premises for any purpose which is
illegal, dangerous to life, limb or property or which, in Landlord's opinion, creates a nuisance or
which would increase the cost of insurance coverage with respect to the Building.
5. Base Rental.
(a) Tenant agrees to pay during the Lease Term, to Landlord, without any setoff or
deduction whatsoever, the base rent of$1.00 per annual period under this Lease ("Base Rent")
(plus any tax on rent), all of which are sometimes herein collectively called "rent", for the
nonpayment of which Landlord shall be entitled to exercise all such rights and remedies as are
herein provided in the case of the nonpayment of rent. Except as otherwise provided herein, the
annual rental payment for each calendar year or portion thereof during the Lease Term shall be
{28973049;4}
2
26720617/TAMPA
due and payable on the first day of each annual period of the Lease, and Tenant hereby agrees to
pay such rent to Landlord at Landlord's address provided herein (or such other address as may be
designated by Landlord in writing from time to time) in advance, and without demand or setoff.
(b) Provided that Tenant (i) in connection with its completion of the Tenant
Improvements set forth in the Work Letter, installs an HVAC System exclusively serving the
Premises and separately meters or sub-meters the Premises with respect to all utility services
required by Tenant and (ii) provides and/or contracts for janitorial and other maintenance
services for the Premises (collectively, the "Net Lease Requirements"), Tenant shall not be
required to pay Tenant's proportionate share of Operating Expenses. However, if, and only if,
Tenant does not satisfy the Net Lease Requirements; then ;Tenant shall pay the Operating
Expenses which are incurred by Landlord as a result of Tenant's failure to satisfy the Net Lease
Requirements, as equitably determined by Landlord.'
(c) Tenant shall pay all sales and use taxes levied or assessed against all rental
payments due under this Lease, simultaneously-with each such rental payment.
6. Services to be Furnished by/Landlord. Landlord/agrees to furnish Tenant the following
services:
(a) Cold water at those ports of`sippfyprovided for general use of tenants of the
Building; heating and air-conditioning in�eason-:-at such temperatures and in such amounts as
are considered by Landlord to bstandard\or\as required bygovenmental authority. Such usage
shall be at Tenant's ex� a se a s cl%hourl rtes s o b6-determined b Landlord from time to
p � � Y � .,a� Y Y
time, which charge - considered as additional al rent and which Tenant shall pay promptly
upon being invoiced ther for,.
(b)Ro.utine�maintenance a d--electric K@ting service for all Common Areas and
Service Areas of t eh �Buildin�n the ma i '___1 d to the extent deemed by Landlord to be
standard.
(c) Subject to the provisions of Paragraph 12 hereof, facilities to provide all electrical
current required\by\Tenant in its use and occupancy of the Premises.
(d) Security in t e form. of limited access to the Building during other than Normal
Business Hours shall Abe pro ided in such form as Landlord reasonably deems appropriate.
Landlord, however, shall have no liability to Tenant, its employees, agents, invitees or licensees
for losses due to theft or burglary, or for damages done by unauthorized persons on the Premises
and neither shall Landlord be required to insure against any such losses. Tenant shall cooperate
fully in Landlord's efforts to maintain security in the Building and shall follow all reasonable
regulations promulgated by Landlord with respect thereto.
(e) Elevator service in common with other Building tenants for ingress to and egress
from the Premises; provided, however, Landlord may reasonably limit the number of elevators in
operation after Normal Business Hours.
The failure by Landlord to any extent to furnish, or the interruption or termination of these
{28973049;4}
3
267206/7rrAM PA
defined services, in whole or in part, resulting from causes beyond the reasonable control of
Landlord, shall not render Landlord liable in any respect nor be construed as an eviction of
Tenant, nor work an abatement of rent, nor relieve Tenant from the obligation to fulfill any
covenant or agreement hereof. Should any of the equipment or machinery used in the provision
of such services for any cause cease to function properly, Tenant shall have no claim for offset or
abatement of rent or damages on account of an interruption in service occasioned thereby or
resulting therefrom.
' Work Letter
7. Improvements to be Made b Landlord. Except as otherwise provided in the Wo ette
p y p p
attached hereto as Exhibit "A", all installations and improvements now or hereafter placed on the
Premises, other than Shell Improvements, shall be for Tenant's�account and at Tenant's cost.
��
8. Maintenance and Repair of Premises by Landlord. Except as otherwise expressly
provided herein, Landlord shall not be required to make any repair t�he Premises other than
repairs to the Building exterior and load-bearing walls and the floors and the roof of the
Building, which may be required from time to time, but only after such required repairs have
been requested by Tenant in writing. Notwithstanding the foregoing, `Tenant shall pay at
Tenant's sole cost and expense for(�he�Pio_yees,st of any such repairs or maintenancJresulting from
acts or omissions of Tenant its gem a ents , contractors sublessees and licensees
g � >
(including, but not limited to, roof leaks resulting from any roof penetration or placement of a
satellite dish if same is permitted by La drord).
9. Gra hics• Direct ro �_Sigmq,41ge. Land,ofd shal-1 pr9. idb-and install, at Tenants cost, all
r r numerals on rs in t e P\ remises��l4/suc.'letters. \d numerals shall be in the
letters o ume �dqo
standard graphics for tie\Building, and no other signs or graphi1c displays shall be used or
permitted on the Premised withou Landlord's pr%or\written consent, which maybe given or
withheld by-L ndlord in it\soI'e and ab solute disc tion.
10. Care of the Premises by Tenant.
(a)\ Tenant shall maintain the Premises (including without limitation all furniture,
fixtures, equipment and decorations) in good repair and in a clean, attractive, first-class condition
in keeping wit\th\e\\\mainder of the Building. Tenant agrees not to commit or allow any waste
to be committed on any�porti l of the Premises and, at the termination of this Lease, to deliver
u the Premises to Landlord in as good condition as at the date of the commencement of the term
of this Lease, ordinary wear and tear excepted, and subject to the provisions of Paragraphs 11, 22
and 23 hereof. Notwithstanding the foregoing, Tenant shall be permitted to insert picture hooks,
nails, and/or screws necessary to hang pictures or other art work on the walls of the Premises.
Unless otherwise provided by Landlord, Tenant shall provide its own janitorial services for the
Premises.
(b) Tenant, at its sole cost, shall also maintain, repair and replace the complete fan
coil system and distribution ductwork that is connected to Landlord's chilled water system for the
Leased Premises (including all of the following compressors, air handlers, duct work, heat
pumps, ventilation equipment, and heating units) (collectively, the "HVAC System") in good and
operational condition and repair throughout the Lease Term. Tenant, at its sole cost and expense,
agrees to keep in force a standard maintenance agreement on the HVAC System and to provide a
{28973049;4}
4
267206/7lrAMPA
copy of such maintenance agreement to Landlord for Landlord's approval, which shall not be
unreasonably withheld. Any repairs or replacement required to be made to such HVAC System
shall be done at Tenant's sole cost and expense and made only by such persons or entities duly
licensed and as have been approved in advance by Landlord. Nothing stated in this Section shall
limit Tenant's obligation to maintain the HVAC System in good condition and repair throughout
the Lease Term. All replacements shall be of similar quality and class to the original items
replaced
11. Repairs and Alterations by Tenant. Tenant covenants and agrees with Landlord, at
Tenant's own cost and expense, to repair or replace any damage done to the Building, or any part
thereof, caused by the negligence of Tenant or Tenant's agents, contractors, employees, invitees,
or visitors, and such repairs shall restore the Building,to as good a condition as it was in prior to
such damage, and shall be effected in compliance/vv h all applicable.laws; provided, however, if
Tenant fails to make such repairs or replac em ent�promptly, Landlord may, at its option, and
after appropriate notice to Tenant, make such repairs or replacements, and Tenant shall pay the
reasonable cost thereof to Landlord on demand as\additional rent. Tenant agrees with Landlord
not to make or allow to be made any alterations tojhe�Premi es install any vending machines on
the Premises, or place signs, furnishings, equipment, \any%indow coverings on any part of the
Premises which are visible from outside the Premises, without first obtaining the written consent
of Landlord in each such instance, which consent sha l\nnot be unreasonably withheld,
conditioned, or delayed. Any and all alterations to the Premises shall become the property of
Landlord upon termination of this Lease (except for movable equipment or furniture owned by
Tenant). Landlord may, nonetheless, require Tenant to remove any and all fixtures, equipment
and other improvements installed on the Premises other than the Tenant Improvements as
originally constructed and installed pursuant to the Work Letter (the "Additional
Improvements"), and restore the Premises to their original condition, reasonable wear and tear
excepted. In the event that Landlord so elects, and Tenant fails to remove the Additional
Improvements, Landlord-may remove the Additional Improvements at Tenant's cost, and Tenant
shall pay'Landlord on demand all costs incurred in removing Additional Improvements and
restoration ofthe Premises as required. All alterations, improvements and additions installed by
Tenant shall,,be,Jnstalled in a good workmanlike and lien free manner and in a manner that
minimizes inconvenience to and disruption of the other occupants of the Building and their
businesses, shall be performed by a contractor approved by Landlord (which approval shall not
unreasonably be withheld, conditioned, or delayed), shall be of a quality not less than Building
Grade and, once commenced, shall be prosecuted continuously, in good faith and with due
diligence until completed.
12. Electrical Overload; Structural Overload.
(a) Tenant's use of electrical services furnished by Landlord shall be subject to the
following:
(i) Tenant's electrical requirements shall be restricted to that equipment which
individually does not have a name plate rating greater than 16 amps at 120
volts, single phase. Collectively, Tenant's leased Premises shall not have a
computed electrical load for outlets and equipment greater than five (5)
watts per square foot at 120/208v.
{28973049;4}
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(ii) Tenant's overhead lighting shall not have a computed electrical load
greater than two (2) watts at 277/480v of usable area.
(iii) Tenant will not install or connect any electrical equipment which in
Landlord's opinion will overload the wiring installations or interfere with
the reasonable use thereof by other users in the Building. Tenant will not,
without Landlord's prior written consent in each instance (which consent
shall not be unreasonably withheld, conditioned, or delayed), connect any
items such as non-building standard tenant lighting, vending equipment,
printing or duplicating machines, computers (other than desktop word
processors and personal computers), auxiliary air conditioners, or other
data, communications, or electronic equipment to the Building's electrical
system, or make any alteration or addition to the system. If Tenant desires
any such items, additional 208/120 volt electrical power beyond that
supplied by Landlord as provided above, or other special power
requirements or circuits;,,then Tenant may request Landlord to provide
such supplemental power or circuits to the Premises,. which request
Landlord margrant or withhold in its reasonable discretion. If Landlord
furnishes such�p wer or circuits, Tenant shall pay Landlord, on demand,
the cost of the des�.g�n\, installation and maintenance of the facilities
required to provi'ie\su ch-ad"'ditio al or special electrical power or circuits
j d the-cost of all electric current,so provided at a rate not to exceed that
-would be be charged by/Fl ridaa Power & Light, or its successor, if
T n ant were a direct usto%er thereo0Landlord may require separate
electrical metering of such supplemental electrical power or circuits to the
Premises andLT-enan t sh�ll\` pay, on demand, the cost of the design,
Ze stall�tion and-rrl�mtenanceof)such metering facilities. In no event shall
enant have access�to any electrical closets. Tenant a rees that any
� g lec ri a 1 engineering design or contract work shall be performed at
enant's�expen\by Landlord or an electrical engineer and/or electrical
ontractor\designaed by Landlord. All invoices respecting the design,
stallation and mai tenance of the facilities requested by Tenant pursuant
this subsection (iii) shall be paid within thirty (30) days of Tenant s
Hereof. Landlord's charge to Tenant for the cost of electric current
s provided shall be paid within thirty (30) days of receipt of invoice by
Tenant./
(b) Tenant shall not place a load upon any floor of the Premises exceeding the floor
load per square foot area which such floor was designed to carry and which may be allowed by
law. Landlord reserves the right to prescribe the weight limitations and position of all heavy
equipment and similar items, and to prescribe the reinforcing necessary, if any, which in the
reasonable opinion of the Landlord may be required under the circumstances, such reinforcing to
be at Tenant's expense.
13. Laws and Regulations. Tenant agrees to comply with all applicable laws, ordinances,
rules, and regulations of any governmental entity or agency having jurisdiction of the Premises.
{28973049;4}
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I
14. Building Rules and Regulations. Tenant will comply with the rules and regulations of the
Building (the "Rules and Regulations") as adopted and altered by Landlord from time to time
and will cause all of its agents, employees, invitees and visitors to do so. Landlord shall give
Tenant written notice of the Rules and Regulations as adopted and revised from time to time, and
Tenant shall be obligated to comply with same as of the date of Tenant's receipt of such notice.
A copy of the current Rules and Regulations is attached hereto as Exhibit "D".
15. Entry by Landlord. Tenant agrees to permit Landlord or its agents or representatives to
enter into and upon any part of the Premises at all reasonable furs and upon reasonable prior
notice to Tenant (and in emergencies at all times and with no notice required) to inspect the
same, and to show the Premises to prospective purchasers, mortgagees, insurers and, during the
last year of the Lease Term,tenants, and to clean or make repairs;alterations or additions thereto,
and Tenant shall not be entitled to any abatement or reduction of rent by reason thereof.
16. Assignment and Subletting. Tenant may not assign, sublease, transfer or encumber this
Lease or any interest therein. Any attempted assignment or sublease by\Tenant in violation of
the terms and covenants of this Paragraph shall be void ab initio. Tenant shall reimburse
Landlord's reasonable attorneys' fees and expenses incurred in connection with Tenant's
assignment, subletting, transfer or e�,c brance of this Lease or any interest therein.
17. Mechanic's Liens. Tenant shall beep thePremises and all parts thereof at all times free of
mechanic's liens and any lien for la,o , serviees, supplies; equipment or material purchased
or procured, directly or ind rect- by or\fo\r\T ant/ Tenant further agrees that Tenant will
promptly pay and sat�fy alI liens of� ontractors, subcontractors, mechanics, laborers,
materialmen, and of r\items o f, like character and, to the extent permitted by law, will
indemnify Landlord aga stall/expense, costs and charges, including bond premiums, for
release of iens and`attorney§ fees/and costs.re so na bly incurred in and about the defense of any
suit in discharging�the Pr�ise any part o the-1 d,�the Building, or any part thereof from any
liens,judgments, or encumbrances caused or s-tiffe ed by Tenant. In the event any such lien shall
be made\or filed, Tenant sha l,\bondagains or discharge the same within thirty (30) days after the
same has b e,\m ade or filed.\It is u\nd\er-stood and agreed between the parties hereto that the
expenses, costs and charges above referred to shall be considered as additional rent due
hereunder. The Tenant herein shall not have any authority to create any liens for labor or
material on the Landl'ord's interest in the Premises, the land or the Building and all persons
contracting with the Tenant for the construction or removal of any facilities or other
improvements on or about the Premises, and all materialmen, contractors, mechanics, and
laborers are hereby charged with notice that they must look only to the Tenant to secure the
payment of any bill for work done or material furnished at the request or instruction of Tenant.
Landlord may, at Landlord's option, record a notice of this provision in the public records of
Miami-Dade County, Florida.
18. Insurance. Tenant shall maintain at its expense, in an amount equal to full replacement
cost, fire and extended coverage insurance on all of its personal property, including removable
trade fixtures, located in the Premises and in such additional amounts as are required to cover
Tenant's interest in the improvements and betterments to the Premises, including initial
improvements installed by Tenant. Notwithstanding the foregoing, Landlord agrees that Tenant
may self-insure.
{28973049;4}
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19. Intentionally deleted.
20. Indemnity; Limitation of Liability.
(a) To the extent applicable under Florida law, and subject to the limitations of
liability under Section 768.28 Florida Statutes, as same may be amended from time to time,
Tenant will, to the extent permitted by law, indemnify, defend, and save Landlord harmless of
and from, all fines, suits, damages, claims, demands, losses and actions (including attorneys'
fees), for any injury to person or damage to or loss of property on the Premises and Building
caused by the negligence of Tenant, its employees, invitees or by any other person entering the
Premises or the Building under express or implied invitation of Tenant, or arising out of Tenant's
use of the Premises.
(b) Except to the extent that Landlord's liability is limited pursuant to other
provisions of this Lease, Landlord shall indemnify, defend, and save Tenant harmless of and
from, all fines, suits, damages, claims, demands, losses and actions (including attorneys' fees),
for any injury to person or damage to or loss of property on or about the Premises and Building
caused by the negligence or willful misconduct of Landlord, its employees, agents, or
contractors, invitees or by any other person entering the Premises or Building under express or
implied invitation of Landlord.
(c) Notwithstanding the foregoing, Landlord shall not be liable or responsible for any
loss or damage to any property or the death or injury to any person occasioned by theft, fire, act
of God or public enemy, injunction, riot, strike, insurrection, war, court order, requisition of
other governmental body or authority, or due to the Building or any part thereof becoming out of
repair, or by the happening of any accident in or about the Building, or due to any act of neglect
of any tenant or occupant of the Building or of any other person. This provision shall apply
especially (but not exclusively) to damage caused by water, frost, weather, steam, sewerage,
electricity, gas, sewer gas or odors, or by the bursting or leaking of pipes or plumbing work, and
shall apply equally whether such damage be caused by act or neglect of Landlord or other
tenants, occupants, or maintenance personnel of the Building, or of any person.
21. Waiver of Subrogation Rights. Except as otherwise provided in Paragraph 22 hereof,
Landlord and Tenant each hereby waives on behalf of itself and its insurers (none of which shall
ever be assigned any such claim or be entitled thereto due to subrogation or otherwise) any and
all rights of recovery, claim, action, or cause of action, against the other, its agents, officers, or
employees, for any loss or damage that may occur to the Premises, or any improvements thereto
or the Building of which the Premises are a part, or any improvements thereto, or any personal
property of such party therein, by reason of fire, the elements, or any other causes which are, or
should be insured against, regardless of whether such insurance is actually maintained and
regardless of the cause or origin of the damage involved, including negligence of the other party
hereto, its agents, officers, or employees.
22. Casualty Damage.
(28973049;4) 8
267206/7/rAM PA
(a) If the Premises or any part thereof shall be damaged by fire or other casualty,
Tenant shall give prompt written notice thereof to Landlord. In case the Building shall be so
damaged that substantial alteration or reconstruction of the Building shall, in Landlord's sole
opinion, be required (whether or not the Premises shall have been damaged by such casualty), or
in the event any mortgagee of Landlord's interest in the Building or the property should require
that the insurance proceeds payable as a result of a casualty be applied to the payment of the
mortgage debt, or in the event of any material uninsured loss to the Building, Landlord may, at
its option, terminate this Lease by notifying Tenant in writing of such termination within ninety
(90) days after the date of such casualty. If Landlord does not thus elect to terminate this Lease,
then Landlord shall commence and proceed with reasonable diligence to restore the Building
shell and the Shell Improvements located on the Premises (as described in the Work Letter);
except that Landlord's obligation to restore shall not require Landlord to spend for such work an
amount in excess of the insurance proceeds actually received by Landlord as a result of the
casualty. Landlord shall provide written notice to Tenant ("Time Estimate Notice") within
ninety (90) days after the casualty specifying Landlord's estimate of the time required to repair
the damage. If Landlord estimates that such damage can be repaired within three hundred sixty
(360) days after the date of the casualty ("Repair Period"), then this Lease will continue unless
otherwise terminated by Landlord as provided herein. If Landlord estimates that it cannot repair
the damage within the Repair Period, then Tenant shall have thirty (30) days from Tenant's
receipt of the Time Estimate Notice to elect whether or not to terminate this Lease by providing
written notice to Landlord. If Tenant fails to exercise its option to terminate this Lease before
the conclusion of such thirty (30) day period, then Tenant shall be deemed to have elected not to
terminate this Lease. When the repairs described above have been completed by Landlord,
Tenant shall complete the restoration of all improvements in excess of the Shell Improvements
which are necessary to permit Tenant's reoccupancy of the Premises, in accordance with plans
and specifications approved by Landlord and Tenant. Tenant shall also be responsible for the
restoration of Tenant's furniture, equipment and fixtures. All cost and expense of reconstructing
the Premises to a level in excess of Shell Improvements shall be borne by Tenant.
(b) Landlord shall not be liable for any inconvenience or annoyance to Tenant or
injury to the business of Tenant resulting in any way from such casualty damage or the repair
thereof; Notwithstanding anything to the contrary contained in this Paragraph, Landlord shall not
have any obligation whatsoever to repair, reconstruct or restore the Premises when the damage
resulting from any casualty contained under this Paragraph occurs during the last twelve (12)
months of the Lease Term.
23. Condemnation. If the whole or substantially the whole of the Building or the Premises
should be taken for any public or quasi-public use, by right of eminent domain or otherwise or
should be sold in lieu of condemnation, then this Lease shall terminate as of the date when
physical possession of the Building or the Premises is taken by the condemning authority. If less
than the whole or substantially the whole of the Building or the Premises is thus taken or sold,
Landlord (whether or not the Premises are affected thereby) may, at its option terminate this
Lease by giving written notice thereof to Tenant; in which event this Lease shall terminate as of
the date when physical possession of such portion of the Building or Premises is taken by
{28973049;4} 9
267206/7/TAMPA
i
condemning authority. If this Lease is not so terminated upon any such taking or sale, Landlord
shall, to the extent Landlord deems feasible, restore the Building and the Premises to
substantially their former condition, but such work shall not exceed the scope of the work done
by Landlord in originally constructing the Building and installing the Shell Improvements and
the Tenant Improvements in the Premises, nor shall Landlord in any event be required to spend
for such work an amount in excess of the amount received by Landlord as compensation for such
taking. All amounts awarded upon a taking of any part or all of the property, Building or the
Premises shall belong to Landlord, provided that Tenant shall not be entitled to and expressly
waives all claim to any such compensation.
24. Events of Default; Remedies.
(a) The following events shall be deemed to be "Events of Default" by Tenant under
this Lease: (i) Tenant shall fail to timely pay any rent or other sum of money within ten (10) days
of Tenant's receipt of written notice from Landlord of the same; (ii) Tenant shall fail to comply
with any provision of this Lease or any other agreement between Landlord and Tenant(including
the Work Letter) not requiring the payment of money (all of which terms, provisions and
covenants shall be deemed material) and such failure shall continue for a period of thirty (30)
days after written notice of such default is delivered to Tenant, provided if cure of such default is
impracticable within such thirty (30) day period that if Tenant has commenced the cure and is
diligently prosecuting the same to completion then Tenant shall have such a reasonable period of
time as is necessary to complete said cure; (iii) the leasehold hereunder demised shall be taken
by execution or other process of law in any action against Tenant; (iv) Tenant shall cease to do
business in or abandon any substantial portion of the Premises; (v) Tenant shall become
insolvent or unable to pay its debts as they become due, or Tenant notifies Landlord that it
anticipates either condition; (vi) Tenant takes any action to, or notifies Landlord that Tenant
intends to file a petition under any section or chapter of the United States Bankruptcy Code, as
amended from time to time, or under any similar law or statute of the United States or any State
thereof, or a petition shall be filed against Tenant under any such statute, or Tenant or any
creditor of Tenant notifies Landlord that it knows such a petition will be filed, or Tenant notifies
Landlord that it expects such a petition to be filed; or(vii) a receiver or trustee shall be appointed
for Tenant's leasehold interest in the Premises or for all or a substantial part of the assets of
Tenant.
(b) Upon the occurrence of any event or events of default by Tenant, as enumerated
in this Paragraph, Landlord shall have the option to pursue any one or more of the following
remedies without any notice (except for that expressly required by Subparagraph 24(a)) or
demand for possession whatsoever: (i) terminate this Lease, in which event Tenant shall
immediately surrender the Premises to Landlord; (ii) Landlord may elect to enter and repossess
the Premises and relet the Premises; (iii) enter upon the Premises and do whatever Tenant is
obligated to do under the terms of this Lease, and Tenant agrees to reimburse Landlord on
demand for any expense which Landlord may incur in effecting compliance with Tenant's
obligations under this Lease, and Tenant further agrees that Landlord shall not be liable for any
{28973049;4} 10
267206/7/rAMPA
damages resulting to the Tenant from such action; and (vi) exercise all other remedies available
to Landlord at law or in equity, including, without limitation, injunctive relief of all varieties.
In the event Landlord elects to re-enter or take possession of the Premises after Tenant's default,
Tenant hereby waives notice of such re-entry or repossession. Landlord may, without prejudice
to any other remedy which it may have for possession or arrearages in rent, expel or remove
Tenant and any other person who may be occupying said Premises or any part thereof. In
addition, the provisions of Paragraph 26 hereof shall apply with respect to the period from and
after the giving of notice of such termination to Tenant. All Landlord's remedies shall be
cumulative and not exclusive. Forbearance by Landlord to enforce one or more of the remedies
herein provided upon an event of default shall not be deemed or construed to constitute a waiver
of such default.
(c) This Paragraph shall be enforceable to the maximum extent not prohibited by
applicable law, and the unenforceability of any portion thereof shall not thereby render
unenforceable any other portion.
(d) Upon the happening of either of the following events, Tenant shall provide
written notice ("Default Notice") to Landlord of its failure to comply with the terms of this
Lease: (a) the failure by Landlord to materially comply with any of its covenants or obligations
under this Lease or (b) the violation by Landlord of any laws, ordinance, or regulations
applicable to the Building and which has a material effect on Tenant's use of the Premises as
permitted in Paragraph 4 of this Lease. Upon receipt of the Default Notice, Landlord shall have
thirty (30) days to correct its failure to comply with the terms of this Lease as provided above. If
Landlord fails to comply with the terms of this Lease within such thirty (30) day period, then
Landlord shall be in default under this Lease ("Landlord Default"). Notwithstanding the
foregoing, if such Landlord Default cannot reasonably be cured within such thirty (30) day
period, then Landlord shall not be in default if Landlord promptly commences the cure of such
Landlord Default within thirty (30) days, and thereafter diligently pursues such cure to
completion.
25. Peaceful Enjoyment. Tenant shall, and may peacefully have, -hold, and enjoy the
Premises, subject to the other terms hereof including, without limitation, Paragraph 27 hereof,
provided that Tenant pays the rent and other sums herein recited to be paid by Tenant and
performs all of Tenant's covenants and agreements herein contained. This covenant and all other
covenants of Landlord shall be binding upon Landlord and its successors only with respect to
breaches occurring during its or their respective periods of ownership of Landlord's interest
hereunder. Landlord shall be entitled to cause Tenant to relocate from the Premises to a
comparable space with comparable finishes (a "Relocation Space") within the Building at any
time upon written notice to Tenant. Such written notice shall provide that the relocation shall
occur on a date no earlier than ninety (90) days from the date of such written notice. Subject to
the ninety (90) day relocation time-frame, Tenant shall move to the Relocation Space upon
written notice from Landlord that the Relocation Space is ready for occupancy. Any such
relocation shall be entirely at the expense of Landlord or the third party tenant replacing Tenant
{28973049;4} 11
267206/7rrAMPA
in the Premises, which expense shall include but not be limited to (i) costs of tenant
improvements or "build out expenses" for the Relocation Space, (ii) the cost of relocating
Tenant's furniture, fixtures, and equipment from the Premises to the Relocation Space, (iii) the
cost of replacing Tenant's existing stock of business stationary, if a replacement is necessary due
to Tenant's relocation to the Relocation Space, and (iv) reimbursement for any other reasonable,
actual costs of Tenant necessary to ready the Relocation Space for Tenant's use thereof (the
"Tenant Relocation Expenses"); provided, however, that Landlord shall not be obligated to
reimburse Tenant for the Tenant Relocation Expenses until Tenant provides Landlord with
satisfactory written evidence (such as a receipt and/or an invoice) that such expenses have been
incurred by Tenant. In addition, Landlord shall have the right in its sole discretion, at any time
and from time to time, without notice to Tenant, to undertake (i) renovation or (ii) further
development of the property by way of expansion or modification of the existing Building;
provided that such renovation or development by Landlord shall not unreasonably interfere with
Tenant's use and occupancy of the Premises or access to the Building.
26. Subordination to Mortgage. Tenant accepts this Lease subject and subordinate to any
mortgage, deed of trust or other lien presently existing or hereafter arising upon the Premises, or
upon the Building or the property and to any renewals, refinancing and extensions thereof, but
Tenant agrees that any such mortgagee shall have the right at any time to subordinate such
mortgage, deed of trust or other lien to this Lease on such terms and subject to such conditions as
such mortgagee may deem appropriate in its discretion. Landlord is hereby irrevocably vested
with full power and authority to subordinate this Lease to any mortgage, deed of trust or other
lien now existing or hereafter placed upon the Premises, or the Building or the property, and
Tenant agrees upon demand to execute such further instruments subordinating this Lease or
attorning to the holder of any such liens as Landlord may request.
27. Estoppel Certificate. Tenant agrees that it will from time to time upon request by
Landlord, execute and deliver to such persons as Landlord shall request, a statement in
recordable form certifying that this Lease is unmodified and in full force and effect (or if there
have been modifications, that the same is in full force and effect as so modified), stating the
dates to which rent and other charges payable under this Lease have been paid, stating that
Landlord is not in default hereunder (or if Tenant alleged a default stating the nature of such
alleged default), and further stating such other matters as Landlord shall reasonably require.
28. Intentionally deleted.
29. Parking.
(a) During the Lease Term, Tenant shall have the non-exclusive use in common with
Landlord, other Building tenants and their respective guests and invitees, and.the general public
of the non-reserved vehicle parking areas, driveways and pedestrian access to same located in
reasonable proximity to the Premises, as may be designated from time-to-time or any time by the
Landlord, subject to the rules and regulations promulgated by Landlord from time to time.
{28973049;4} 12
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(b) Landlord shall have a right to designate the location of Tenant's parking and alter
such designation upon reasonable notice to Tenant. Landlord shall also have the right to
establish or modify the methods used to control parking in its parking areas, including without
limitation the installation of certain control devices or the hiring of parking attendants or a
managing agent.
(c) Landlord shall have no liability whatsoever for any property damage or personal
injury which might occur as a result of or in connection with the use of the vehicle parking areas
by Tenant, its employees, agents, invitees and licensees, and Tenant hereby agrees, to the extent
permitted by law, to indemnify and hold Landlord harmless from and against any and all costs,
claims, expenses, or causes of action which Landlord may incur in connection with or arising out
of Tenant's use of said vehicle parking areas.
30. Attorney's Fees. In the event either party defaults in the performance of any of the terms
of this Lease and the other party employs an attorney in connection with the enforcement of any
remedy of such default, the prevailing party shall be entitled to receive from the other party full
reimbursement of such prevailing party's reasonable attorney's fees and costs incurred therewith,
whether such fees are incurred before, during or after any trial or administrative proceeding or on
appeal.
31. No Implied Waiver. The failure of Landlord to insist at any time upon the strict
performance of any covenant or agreement contained herein or to exercise any option, right,
power or remedy contained in this Lease shall not be construed as a waiver or a relinquishment
thereof for the future.
No payment by Tenant or receipt by Landlord of a lesser amount than the monthly installment of
rent due under this Lease shall be deemed to be other than on account of the earliest rent due
hereunder, nor shall any endorsement or statement on any check or any letter accompanying any
check or payment as rent be deemed an accord and satisfaction, and Landlord may accept such
check or payment without prejudice to Landlord's right to recover the balance of such rent or
pursue any other remedy in this Lease provided.
32. Limitation of Landlord's Liability. The term "Landlord", as used in the Lease, shall mean
only the owner or owners, at the time in question, of the fee title to the Building. In the event of
any transfer of such title or interest, Landlord as named in the Lease (and in the case of any
subsequent transfers, then the grantor) shall be relieved from and after the date of such transfer
of all liability in respect of Landlord's obligations thereafter to be performed, provided that any
funds in the hands of Landlord or the then grantor at the time of such transfer, in which Tenant
has an interest, shall be delivered to the grantee. The obligations contained in the Lease to be
performed by Landlord shall, subject to the above, be binding on Landlord's successors and
assigns, only during their respective periods of ownership. The obligations of Landlord under
the Lease do not constitute personal obligations of Landlord or the individual partners,
shareholders, directors, officers, and property managers and Tenant shall look solely to
Landlord's then existing interest in the Building and its proceeds (including rental payments and
{28973049;4) 13
267206/7/TAMPA
any proceeds arising from the sale thereof), and to no other assets of Landlord, for satisfaction of
any liability in respect of the Lease, and will not seek recourse against the individual partners,
shareholders, directors, officers, property managers or any of their personal assets for such
satisfaction. No other properties or assets of Landlord shall be subject to levy, execution, or
other enforcement procedures for the satisfaction of any judgment (or other judicial process) or
for the satisfaction of any other remedy of Tenant arising out of or in connection with the Lease,
the relationship of landlord and tenant, or Tenant's use of the Premises.
33. Addendum to Lease. For the avoidance of doubt, the parties hereby agree to execute an
addendum to this Lease at such time as the parties have, working together in good faith,
determined the size and specific location of the Premises and the Building.
34. Notice. Unless otherwise set forth in this Lease, any notice, demand, or request to be
given under this Lease (i) may be given by either party or its attorney or agent, (ii) shall be in
writing, and (iii) shall be deemed to have been properly given (a) on the date delivered
personally (including by courier), (b) one (1) business day following deposit with a nationally
recognized overnight delivery service, (c) three (3) business days following deposit with the
United States Postal Service (designated certified mail, return receipt requested, bearing
adequate postage and addressed as designated below), or (d) upon refusal of delivery by the
recipient. Landlord's address for notices may be changed by ten (10) days prior written notice
from time to time. The foregoing notice provisions shall in no way prohibit notices from being
given as provided by statute or in the rules or civil procedure of the state in which the Building is
located, as the same may be amended from time to time (including by posting notice on the door
of the Premises) and any notice so given shall constitute notice herein. Until further notice, the
address for the parties hereto shall be the address set forth below:
As to Landlord: Mount Sinai Medical Center
4300 Alton Road
Warner Building, 5th Floor
Miami Beach, FL 33140
Attn: President and CEO
With a required
copy to: Mount Sinai Medical Center
4300 Alton Road
Warner Building, 5 I.Floor
Miami Beach, FL 33140
Attn: General Counsel
As to Tenant: City of Miami Beach
1700 Convention Center Drive, 4th Floor
Miami Beach, FL 33139
Attn: City Manager
{28973049;4} 14
267206/7rrAMPA
With a required
copy to: City of Miami Beach
1700 Convention Center Drive, 4t" Floor
Miami Beach, FL 33139
Attn: City Attorney
35. Severability. If any term or provision of the Lease, or the application thereof to any
person or circumstance shall, to any extent, be invalid or unenforceable, the remainder of this
Lease, or the application of such term or provision to persons or circumstances other than those
as to which it is held invalid or unenforceable, shall not be affected thereby, and each term and
provision of this Lease shall be otherwise valid and enforced to the fullest extent permitted by
law.
36. Recordation. Tenant agrees not to record this Lease or any memorandum hereof. At
Landlord's request, Tenant agrees to promptly execute a memorandum of this Lease in
recordable form, and Landlord may, at its option, record such memorandum in the Public
Records of Miami-Dade County, Florida.
37. Governing Law. This Lease and the rights and obligations of the parties hereto shall be
interpreted, construed, and enforced in accordance with the laws of the State of Florida.
38. Force Maieure. Whenever a period of time is herein prescribed for the taking of any
action by Landlord or Tenant, such party shall not be liable or responsible for, and there shall be
excluded from the computation of such period of time, any delays due to strikes, riots, acts of
God, shortages of labor or materials, war, governmental laws, regulations or restrictions, or any
other cause whatsoever beyond the control of such party; provided, however, that Tenant shall
not be excused from timely taking any action on account of a governmental law, regulation or
restriction that is within Tenant's reasonable control.
39. Time of Performance. Except as expressly otherwise herein provided, with respect to all
required acts of Tenant, time is of the essence of this Lease.
40. Transfers by Landlord. Landlord shall have the right to transfer and assign, in whole or
in part, all its rights and obligations hereunder and in the Building and the property referred to
herein, and in such event and upon such transfer, Landlord shall be released from any further
obligations hereunder, and Tenant agrees to look solely to such successor in interest of Landlord
for the performance of such obligations.
41. Brokers. Landlord and Tenant each represent and warrant one to the other that neither of
them has employed any broker in connection with the negotiations of the terms of this Lease or
the execution thereof. Landlord and Tenant hereby agree, to the extent permitted by law, to
indemnify and to hold each other harmless against any loss, expense or liability with respect to
{28973049;4} 15
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any claims for commissions or brokerage fees arising from or out of any breach of the foregoing
representation and warranty.
42. Effect of Delivery of This Lease. Landlord has delivered a copy of this Lease to Tenant
for Tenant's review only, and the delivery hereof does not constitute an offer to Tenant or option
to lease. This Lease shall not be effective until a copy executed by both Landlord and Tenant is
delivered to and accepted by Landlord.
43. Access Devices. On or before the Commencement Date of this Lease, Landlord shall
provide to Tenant, free of charge, a reasonable number of access devices such as cards or keys
that may be used to gain access to the Building and/or any parking garage. Landlord reserves the
right to impose a reasonable charge on Tenant for the repair and/or replacement of any lost,
stolen, or damaged devices.
44. Exhibits. In addition to Exhibits "A", "B", "C", and "D", the following exhibits are
attached hereto and incorporated herein made a part of this Lease for all purposes: N/A.
45. Captions. The Paragraph captions used herein are for convenience and reference only
and in no way add to or detract from the interpretation of the provisions of this Lease.
46. Prior Agreements and Amendments. All prior agreements, understandings,
representations and/or promises made or entered into by the parties hereto are superseded by and
replaced with this Lease, so that this Lease is the sole agreement between the parties. The
provisions of this Lease may not be modified or amended, except by an instrument in writing and
signed by both parties hereto.
47. Binding ms. This Lease shall be binding upon and inure to the benefit of Landlord, its
successors and assigns, and Tenant, its successors and, to the extent assignment is permitted
under the provisions hereof, Tenant's assigns.
48. Statutory Notice Requirement. Tenant hereby acknowledges receipt of the following
notice as required by Chapter 88-285, Laws of Florida:
RADON GAS: Radon is a naturally occurring radioactive gas that, when
it has accumulated in a building in sufficient quantities, may present health
risks to persons who are exposed to it over time. Levels of radon that
exceed federal and state guidelines have been found in buildings in
Florida. Additional information regarding radon and radon testing may be
obtained from your county public health unit.
49. Waiver of Trial by Jury. It is mutually agreed by and between Landlord and Tenant that
the respective parties hereto shall and they do hereby waive trial by jury in any action,
proceeding or counterclaim brought by either of the parties hereto against the other on any matter
arising out of or in any way connected with this Lease, the relationship of Landlord and Tenant
and Tenant's use or occupancy of the Premises. Tenant further agrees that it shall not interpose
{28973049;4} 16
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any counterclaim or counterclaims in a summary proceeding or in any action based upon
nonpayment of rent or any other payment required of Tenant hereunder.
50. Rooftop Access and Equipment. Tenant shall not access the roof of the Building without
Landlord's prior written consent, and all such roof access shall be coordinated through Landlord
and is subject to Landlord's supervision. Further, Tenant shall not install any equipment,
including, without limitation, antennae or satellite dishes on the roof of the Building ("Rooftop
Equipment") without Landlord's prior written consent and, if such consent is given, Tenant shall
obtain all required permits and approvals and abide by all applicable laws and Roof Equipment
rules, regulations and restrictions instituted or imposed by Landlord with respect to the
installation, use and removal of such Rooftop Equipment from time to time. If Landlord gives its
consent to Tenant's installation of Rooftop Equipment, the parties agree to execute an addendum
hereto specifying the size and location of such Rooftop Equipment. The installation and use of
the Rooftop Equipment by Tenant, if permitted by Landlord, shall not negatively impact other
tenants' rights of quiet enjoyment or interfere with the delivery of any services (including
telecommunications services) to or from such other tenants' demised premises in the Building. If
such installation and/or use of such Rooftop Equipment by Tenant so interferes with Landlord or
any other tenant in the Building, Landlord reserves the right to require Tenant to relocate the
same, change the frequency of the satellite dish or remove the same from the roof of the
Building, all of which shall be at Tenant's sole cost and expense. Further, to the extent Landlord
consents to Tenant's installation of any Rooftop Equipment, Tenant shall, at Tenant's sole cost
and expense, remove the same at the expiration or earlier termination of the Term of this Lease
and repair any damage caused thereby to the Building.
THIS SPACE LEFT INTENTIONALLY BLANK
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IN WITNESS WHEREOF, Landlord and Tenant have executed this Lease in multiple
original counterparts as of the day and year first above written.
LANDLORD:
Witnesses as to Landlord: MOUNT SINAI MEDICAL CENTER OF
FLORIDA, INC., a Florida not-for-profit
corporation
By:
Name:
Title:
Print Name
Print Name
TENANT:
Witnesses as to Tenant: CITY OF MIAMI BEACH, FLORIDA, a
municipal corporation of the State of Florida
By:
Philip Levine, Mayor
Print Name
Attest:
By:
Rafael E. Granado, City Clerk
Print Name
{28973049;4} 18
267206/7/TAMPA
EXHIBIT "A"
WORK LETTER AGREEMENT
THIS WORK LETTER AGREEMENT (this "Work Letter") is attached to and made
part of that certain Lease Agreement (the "Lease") by and between Mount Sinai Medical Center
of Florida, Inc., a Florida not-for-profit corporation ("Landlord"), and the City of Miami Beach,
Florida, a municipal corporation duly organized and existing under the laws of the State of
Florida ("Tenant"). The terms, definitions and other provisions of the Lease are hereby
incorporated into this Work Letter b reference.
� Y
IN CONSIDERATION OF the execution of the Lease and the mutual covenants and
conditions hereinafter set forth, Landlord and Tenant agree as follows:
1. Building Standard Improvements:
(a) This Work Letter sets forth the agreement with respect to the construction of the
additional improvements constructed or installed on the Premises for Tenant's use (the "Tenant
Improvements"). Any other improvements to the Premises that require construction methods or
materials other than Building Grade shall be deemed to be "Non-Standard Improvements".
(b) "Shell Improvements" shall mean the following improvements which have been provided
by Landlord, at its expense, in connection with the construction of the Building:
(1) Exterior Building windows, doors, walls and roof structure and unfinished
concrete block and sheetrock walls surrounding common areas and service areas.
(2) Unfinished concrete floors and ceilings.
(3) Fully equipped and finished Common Areas and Service Areas, including
elevators, elevator lobbies, atrium entry area, restrooms and mechanical and
electrical rooms.
(4) Heating, ventilation and air-conditioning (chilled water) system with main
high pressure ductwork distribution to all floor areas, including VAV boxes.
(5) Electrical meter rooms equipped with panels and breakers to code.
(6) Automatic sprinkler systems with construction heads per minimum code
requirements for building shell.
(7) Public corridor areas as needed to serve the Premises (except those
building floors to be occupied by a single tenant), with floors, interior walls and
ceilings finished with Building Grade materials.
2. Initial Plans. In accordance with and subject to the provisions of this Work Letter,
Tenant shall, at Tenant's expense, construct and install the Tenant Improvements
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described in this Work Letter (collectively, the "Work"). Unless otherwise agreed to by
Landlord in writing, Tenant shall use Building Grade construction methods and materials
as determined by Landlord(in its sole discretion) in connection with all Work.
3. Cost of Work. Tenant shall pay for the Work at Tenant's sole cost and expense, including
without limitation, all hard and soft costs incurred in connection therewith.
4. Plans and Specifications.
(a) The Work shall be completed in accordance with detailed architectural and
engineering working drawings and material specifications (the "Plans and Specifications") which
shall be prepared at Tenant's expense and shall be in a form and content as necessary to allow
Tenant's contractor(s) to obtain all required building permits and approvals. The Plans and
Specifications shall include the following: (1) dimensioned architectural plan; (2)
electric/telephone outlet diagram; (3) reflective ceiling plan with light switches; (4) mechanical
plan (including fire protection); (5) electric power circuitry diagram; (6) schematic plumbing
riser diagram (if any); (7) all color and finish selections; (8) all special equipment and fixture
specifications; and(9) life safety specifications.
(b) Tenant shall utilize a certified and licensed architect as space planner architect
("Tenant's Architect") in preparation of items (1) through (3), (7) and (8) as provided in
subparagraph (a) of this Section. In all events, items (4), (5) and, if necessary, item (6) must be
prepared by certified and licensed engineer(s) approved by Landlord in Landlord's reasonable
discretion ("Engineers"). The total charge for preparation of building standard engineering
drawings and specifications by Engineers shall be paid by Tenant.
(c) Tenant shall cause the Plans and Specifications to be prepared, at Tenant's
expense, and submitted to Landlord for approval. Landlord shall then have a period of not more
than ten (10) business days following such submittal (or, in the event of modifications, such re-
submittal) in which to review and approve the Plans and Specifications or state any objections to
same in writing. Landlord's approval (except as to structural elements of the building and
building systems, for which approval shall be in Landlord's absolute discretion) shall not be
unreasonably withheld, and any objections shall be reasonable in nature and stated in sufficient
detail so as to allow necessary modification by Tenant. Tenant shall make necessary
modifications to the Plans and Specifications and resubmit same to Landlord within twenty (20)
business days. Once accepted by Landlord in final form, the Plans and Specifications may be
modified only with Landlord's written approval, which will not be unreasonably withheld or
delayed, and Tenant shall be liable for any additional costs incurred as a result of any such
change.
5. Contractor(s); Permits.
(a) Tenant shall use its own contractor(s) and shall obtain all building permits
necessary to complete all of the Work. Tenant shall bear the cost of all building permits.
Landlord shall not be liable in any way for any injury, loss, damage, or delay which may be
caused by or arise from entry into the Premises by Tenant, its employees, or contractor(s), during
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the performance of the Work. Tenant's contract with its general contractor shall include (among
other things) the requirement that the general contractor abide by the construction rules and
regulations set forth on Exhibit "A", attached to and made a part of this Work Letter.
(b) Tenant's general contractor and all subcontractors shall be licensed as required by
the County and State where the Premises are located. Landlord shall have the right to disapprove
of Tenant's general contractor or any subcontractor if Landlord reasonably believes that such
contractor is: (i) not licensed as required by any governmental agency; and/or (ii) not technically
qualified or sufficiently staffed to do the Work. Tenant shall cause its general contractor to
furnish Landlord with an original certificate of insurance for hazard and liability coverage
pursuant to subsection (d), below. All subcontractors shall be insured in such amounts as
p ( )
Landlord deems commercially reasonable. Tenant (or, at Tenant's option, its general contractor)
shall furnish Landlord with the names and addresses of its subcontractors.
(c) Tenant shall advise its contractor(s), subcontractor(s), and material supplier(s)
that no interest of Landlord in the Premises, the Building, or the Project shall be subject to liens
to secure payment of any amount due for work performed or materials installed in the Premises
on Tenant's behalf and Tenant's contract with its general contractor shall include a true and
correct copy of Paragraph 11 of the Lease.
(d) Tenant's general contractor shall maintain at all times during the course of the
Work, the following types of insurance:
(i) workers' compensation insurance to cover full liability under workers'
compensation laws of the State where the Premises are located with employers' liability coverage
in limits not less than $1005000.00;
(ii) comprehensive general liability insurance on an "occurrence" basis for the
hazards of operations, elevators and escalators, independent contractors, products and completed
operations (for two (2) years after the date of acceptance of the work by Landlord and Tenant),
and contractual liability specifically covering the indemnification provision in the construction
contract, such comprehensive general liability to include broad form property damage and afford
coverage for explosion, collapse and underground hazards, and "personal injury" liability
insurance and an endorsement providing that the insurance afforded under the contractor's policy
is primary insurance as respects Landlord and Tenant and that any other insurance maintained by
Landlord or Tenant is excess and non-contributing with the insurance required hereunder,
provided that such insurance may be written through primary or umbrella insurance policies with
a minimum policy limit of$2,000,000.00;
(iii) comprehensive automobile liability insurance covering all owned, non-
owned, and hired automobiles, such insurance required to be in limits not less than that stated in
subparagraph(2), above; and
(iv) Landlord and Tenant are to be included as an additional insured for
insurance coverages required in subparagraphs (2) and (3), above.
(28973049;4) 21
26720617lrAM PA
As evidence of.all required coverages, Tenant shall provide to Landlord, a certificate of
insurance, setting forth the nature of the coverage, the limits of liability, the name of the
insurance carrier, policy number, and the date of expiration. Each carrier shall agree to furnish at
least ten (10) days prior written notice to Landlord of any cancellation or material change in
coverage.
5. Construction of the Improvements.
(a) Tenant shall cause Substantial Completion of the Work, in accordance with the
Plans and Specifications. Tenant shall cause construction to commence no later than sixty (60)
days following Landlord's delivery of the premises to Tenant for construction of Work. Once
Tenant has commenced construction, Tenant shall cause the construction to be diligently
prosecuted to completion. "Substantial Completion" or "Substantially Completed" shall mean
the earlier of the date that (i) a Certificate of Occupancy or its equivalent has been obtained for
the entire Premises and that the Work is sufficiently complete so as to allow Tenant to occupy
the Premises for the uses permitted by the Lease, or (ii) Tenant occupies the Premises and begins
conducting business operations for uses permitted by the Lease. If required by the laws of the
State and County where the Premises are located, and in accordance with such laws, Tenant, with
Landlord's cooperation, shall cause a Notice of Commencement (or its equivalent) to be filed in
the Public Records of the County where the Premises are located and posted at the job site prior
to commencing construction of the Work.
(b) Tenant's contractors shall, at Tenant's expense, apply for and obtain all necessary
building permits, inspections, and approvals necessary and appropriate to complete the Work in
accordance with the Plans and Specifications and as necessary to obtain a Certificate of
Occupancy (or its equivalent) for the Premises. Tenant shall arrange a meeting prior to the
commencement of construction between Landlord and Tenant's contractors for the purpose of
organizing and coordinating the completion of the Work. All of the Work shall be completed in
a good and workmanlike manner using Building Grade materials and methods, and shall be in
conformity with all applicable building codes, and in accordance with Landlord's construction
rules and regulations pertaining to contractors set forth in Exhibit "A" hereto.
(c) Any damage to the Building caused by Tenant, its contractors, subcontractors, or agents
shall be repaired by Tenant, at Tenant's expense, in a good and workmanlike manner. If any repaired area
does not match the original surface, then the entire surface shall be redone at Tenant's expense to match
the original surface. Tenant agrees, to the extent permitted by law, to indemnify and hold harmless
Landlord, its agents, and employees from and against any and all costs, expenses, damage, loss, or
liability, including, but not limited to, reasonable attorneys' fees and costs (at all tribunal levels), which
arise out of, is occasioned by, or is in any way attributable to the Work, except to the extent caused by the
gross negligence or willful misconduct of Landlord. Tenant, at its expense, shall be responsible for the
maintenance, repair, and replacement of any and all items constructed by Tenant as part of the Work.
Moreover, to the extent reasonably needed by Landlord for its repair obligations set forth in the Lease,
Tenant will use all reasonable efforts to assign or extend to Landlord the benefit of any manufacturer's
warranties with respect to the mechanical, electrical, life/safety, and plumbing systems, and for any other
items constructed by Tenant. Landlord will make electric service available to Tenant during construction.
In connection with the construction of the Work, Tenant shall pay Landlord the cost of all utilities, chilled
water for air conditioning, if any, elevator and security services provided during construction.
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(d) Landlord or Landlord's representatives may, at any time, review and inspect the
construction activities and performance of the Work by Tenant's contractor and any subcontractor(s).
Tenant agrees to cooperate with Landlord to facilitate such inspections and shall notify Landlord prior to
any and all governmental or regulatory inspections of the Work so that Landlord or Landlord's
representatives can be present for such inspections.
6. Window Coverings. Building Grade window coverings are required by Landlord. The use of this
Building Grade window treatment is essential to maintain the appearance of the building, therefore, no
other window treatment shall be permitted by Landlord. No window coverings, blinds, curtains or
treatments shall be permitted without the express written consent of Landlord which consent Landlord
may withhold in its sole discretion.
7. Representatives. Landlord and Tenant hereby appoint the following person(s) as their respective
representatives,to act on their behalf in connection with all matters covered by this Work Letter
Landlord Representative Tenant Representative
City Manager or authorized designee
All inquiries, requests, instructions, authorizations and other communications with respect to the
matters covered by this Work Letter shall be made to Landlord's Representative or Tenant's Representative
as the case may be. Authorization made by Tenant's Representative shall be binding upon Tenant, and
Tenant shall be responsible for all activities and costs authorized by Tenant's Representative. Either party
may change its representative under this Work Letter at any time by written notice to the other party.
8. Miscellaneous.
(a) This Work Letter shall be subject to the governing law,jurisdiction, and venue provisions
set forth in the Lease.
(b) This Work Letter may not be amended except by a written instrument signed by Landlord
and Tenant.
(c) Notices under this Work Letter shall be given in the same manner as under the Lease,
except that such notices shall be directed to the parties set forth in Paragraph 7 of this Work Letter.
(d) The headings set forth herein are for convenience only and form no substantive or
binding part of this Work Letter.
(e) This Work Letter sets forth the entire agreement of Tenant and Landlord regarding the
Work.
(f) Any failure of Tenant to comply with the requirements of this Work Letter shall
constitute a default by Tenant under the Lease and Landlord may pursue all remedies available to
Landlord under the Lease,at law or in equity.
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(g) In the event that the final working drawings and specifications are included as part of the
Initial Plan attached hereto, or in the event Landlord performs the Work without the necessity of preparing
working drawings and specifications, then whenever the term "Working Drawings" is used in this
Agreement, such term shall be deemed to refer to the Initial Plan and all supplemental plans and
specifications approved by Landlord.
9. Exculpation of Landlord. Notwithstanding anything to the contrary contained in this Work
Letter, it is expressly understood and agreed by and between the parties hereto that:
(a) The recourse of Tenant or its successors or assigns against Landlord with respect to the
alleged breach by or on the part of Landlord of any representation, warranty, covenant, undertaking or
agreement contained in this Work Letter or the Lease(collectively, "Landlord's Work Letter Undertakings")
shall extend only to Landlord's interest in the real estate,of which the Premises demised under the Lease are
a part(hereinafter, "Landlord's Real Estate")and not to any other assets of Landlord or its affiliated entities;
and
(b) Except to the extent of Landlord's interest in Landlord's Real Estate, no personal liability or
personal responsibility of any sort with respect to any of Landlord's Work Letter Undertakings or any
alleged breach thereof is assumed by,'or shall at any time be asserted or enforceable against, Landlord, or
against any of its respective directors, officers, employees, agents, affiliated entities, managers, members,
shareholders,beneficiaries,trustees or representatives.
10. Lease Provisions. The terms and provisions of the Lease, insofar as they are applicable to this
Work Letter, are hereby incorporated herein by reference. All amounts payable by Tenant to Landlord
hereunder shall be deemed to be additional Rent under the Lease and, upon any default in the payment of
same,Landlord shall have all of the rights and remedies provided for in the Lease.
11. Workstations. Notwithstanding anything that may appear to the contrary in any plans related to
the Work, Tenant shall be responsible, at Tenant's sole cost, for purchasing, installing and maintaining all
workstations, furniture, fixtures, office equipment, telephone, data, and other IT equipment, and any
related IT infrastructure including wiring or cabling (collectively, "Workstation Equipment"). The
Workstation Equipment shall not be deemed to be part of the Work, and the installation of the
Workstation Equipment shall not be required to achieve Substantial Completion of the Work.
12. Emergency Management Coordination Requirements. Landlord acknowledges that the Tenant
Improvements undertaken by Tenant, in connection with Tenant's build out of the Premises for the
utilization of an emergency management coordination area, may include the following, which shall be
completed at Tenants sole cost and expense in accordance with this Work Letter:
a) a room equipped for positive pressure;
b) a double door entry system(Exterior door must be closed before interior door is opened);
c) internet, cable/satellite TV and phone access with fiber optics to the router from the access point;
d) space located at highest elevation possible proximal to the Emergency Department;
e) a bathroom with a shower, dressing area and lockers;
f) plumbing roughed out for kitchenette(sink, micro-wave, etc.);
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267206/7/TAMPA
g) chase or conduit to roof for running communication and other antenna cabling;
h) redundancy in electrical and HVAC Systems;
i) entrance to a space located in an area with minimal exposure to the public;
j) protected fresh air intake;
k) a fire suppression system;
1) cabling or conduit for CCTV system;
m) a docking station to supply a Mobile Command vehicle, etc. with power, internet, etc.;
n) key card access systems for all doors to the outside of the Premises or into main hospital areas;
o) cabling or conduit for Cats Ethernet drops at every workstation location; and
p) a wiring closet for network equipment.
THIS SPACE LEFT INTENTIONALLY BLANK
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EXHIBIT "B"
CONSTRUCTION RULES AND REGULATIONS
Landlord hereby sets forth the following rules and regulations governing the Work to be
done by the general contractor employed by Tenant(the "General Contractor"), its employees
and any and all subcontractors employed by the General Contractor, and Tenant hereby agrees
that the General Contractor shall comply with these rules and regulations and any changes
thereto which may reasonably be made by Landlord. Tenant further agrees to see to it that any
and all subcontractors employed by the General Contractor comply with the same.
1. Permits: All permits and licenses necessary for the prosecution of the Work shall be
secured and paid for by the General Contractor prior to commencement of the Work. It-is the
responsibility of the General Contractor to forward an original Certificate of Occupancy to
Landlord.
2. Work Area: Before commencing any of the Work, the General Contractor shall erect
construction barriers acceptable to Landlord between the area where the General Contractor's
Work is being conducted (the "Work Area") and any public areas in the Building and will keep
the Work Area closed from public view until completion and occupancy by Tenant. The General
Contractor shall perform all construction activities and all storage of materials inside the Work
Area.
3. Keys and Locks: The General Contractor shall provide Landlord with keys to all locks
installed on or in the Work Area. Landlord shall be provided access to the Work Area at all
times.
4. Common Areas: The General Contractor shall carefully protect all walls, carpets, ceiling
tiles, floors, furniture and fixtures in the Common Areas (as defined in the Lease) or areas open
to the public and shall pay for repair or replacement of all damaged property therein(whether
caused by General Contractor or its agents or subcontractors) upon demand by Landlord. The
General Contractor will not perform any construction activities or store any materials in any
Common Areas or public areas. Alterations to multi-tenant corridors (e.g., door cut-in) shall
either be complete within the first week of construction or a visual barrier(approved by
Landlord) shall be erected at General Contractor's expense. The General Contractor will keep
the Common Areas and vacant spaces of the Building free of construction material, dirt and
debris at all times.
5. Elevators: All construction materials, tools and trash are to be transferred to and from the
Work Area via the freight elevator. At no time shall the General Contractor(or its
subcontractors or suppliers)use the passenger elevators to move construction personnel,
materials, equipment, tools or trash to or from the Work Area without the express prior consent
of the Landlord. Furthermore, the use of the freight elevator shall be scheduled by the General
Contractor with Landlord. Any work or hauling of materials or trash on occupied floors shall be
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conducted so as to leave unobstructed at all times the public corridor, freight elevator vestibule
or passenger elevator lobby. Because the freight elevator is the principle means of providing
hoisting for service as well as construction activities, the General Contractor must cooperate in
resolving any conflicts which may arise from time to time when the General Contractor is
required to share the freight elevator with the Building's cleaning crew, other tenants, etc. At no
time may the General Contractor or its subcontractors block the freight elevator open. In the
event that any damage occurs to the freight elevator or freight elevator lobbies, the General
Contractor will bear the total cost of repairs.
6. Water and Electricity During Construction: Sources of water and electricity (in
reasonable quantities for lighting, portable power tools, drinking water, water for testing and
other such common uses during construction) will be made available to the General Contractor
by the Landlord without cost to the General Contractor. The General Contractor shall make all
connections or furnish any necessary extensions to or from such sources, and shall be responsible
for promptly removing same upon completion of the Work.
7. Sanitary Facilities: Sanitary Facilities will be furnished to the General Contractor by
Landlord. The General Contractor shall use only those facilities specifically provided or
designated by the Landlord. Charges associated with clean-up or damage of any kind shall be
the responsibility of the General Contractor.
8. Dust.: The General Contractor shall notify Landlord prior to the commencement
of any extremely dusty work (e.g., sheet rock cutting, sanding, extensive brooming, etc.) and
Contractor shall arrange for additional filtering capacity on the affected HVAC equipment.
Failure to make such prior notification will result in the General Contractor absorbing any costs
associated with returning any HVAC equipment damaged by dust to its original condition.
9. Work Approval: All drawings, change orders, subcontractors and materials must be
approved by Landlord prior to the start of construction. Subcontractors or materials
unacceptable to the Landlord shall not be used.
10. Disposition of Materials: Any and all unused construction materials shall be disposed of
by the General Contractor in the same manner as waste or unwanted material, except as may
Y
otherwise be directed by Landlord. General Contractor shall not use the Building trash
compactor. The placement of a container or vehicle in which to empty trash must be scheduled
through the management office. The General Contractor is responsible for keeping the area
around the trash container clean at all times.
11. Clean-up: The General Contractor shall at all times on a day-to-day basis keep the Work
Area and other areas of the Building or site free from accumulations of waste material, debris or
rubbish caused by or incidental to the Work. Upon completion of the Work, the General
Contractor shall promptly remove from the Work Area, the Building and the site, all tools,
scaffolding, surplus materials, trash and debris, and shall leave the site, the Building and Work
Area "broom clean". Any debris, rubbish, materials or equipment left outside the Work Area or
{28973049;4} 27
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left anywhere on the Premises, shall be disposed of by Landlord, and the General Contractor
shall be responsible for promptly reimbursing Landlord for the cost thereof.
12. Working Hours: The General Contractor understands that the work will be done in a
building that is occupied and that the safety, comfort and quiet enjoyment of the tenants in the
Building is the highest priority. As such, certain operations must be performed outside the hours
of 8:00 a.m. to 6:00 p.m. Monday through Friday to prevent the disturbance or interruption of
normal business operations. These operations include, but are not limited to:
A. Drilling or cutting of the concrete floor slab;
B. Drilling or cutting of any concrete structural member;
C. Sanding, chiseling or leveling of the concrete structure;
D. Delivery of drywall or large quantities of building materials;
E. Nailing carpet tack strip;
F. Testing the Fire Alarm System; and
G. Any work which generates noise or vibration which may be disruptive to building
occupants.
The General Contractor must obtain prior approval from Landlord to perform work after normal
building hours of operation. The General Contractor and subcontractors will be required to show
identification to security and sign-in prior to admittance into the Building after hours.
13. Workman Conduct: No loud or abusive language or actions or the playing of music
which can be heard outside the Work Area will be tolerated. It will be the responsibility of the
General Contractor to enforce this regulation on a day-to-day basis and/or in response to specific
complaints from other tenants or from Landlord.
14. Electrical Panel Changes: All additional electrical circuits added to or removed from
existing electrical panels or any new circuits added to new electrical panels must be
appropriately marked as to the area and/or equipment serviced by the circuit(s) in question as
provided for in specifications. All electrical panels which have covers removed for any reason
(e.g., so as to allow the addition of new circuits) or any new electrical panels which are installed
shall be left at the end of each day with all panel covers properly in place and all panel doors
securely closed. Under no circumstances will power serving other tenants' Premises or
other areas of the Building be shut off without the specific advance approval of Landlord.
All electrical work will require as-built drawings to be submitted to the management office upon
completion of work. The Electrical Contractor must have one or more licensed electrician on the
job at all times during construction.
15. Special Elevator Services: Any work or repair which necessitates or involves the
following must be scheduled in advance with Landlord:
A. Access to the top of an elevator cab;
B. Utilization of an elevator cab to perform special services; and
C. Work on or in any elevator cab servicing the Building.
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Sufficient notice regarding such proposed activities should be given so as to allow Landlord to
arrange with the Building's elevator installer or service contractor to provide personnel to
perform or supervise such activities.
Under no circumstances should the General Contractor permit its personnel to utilize the elevator
facilities for any purpose other than the approved transport of materials and/or personnel. Tenant
and/or the General Contractor will be responsible for any extra costs incurred by the Landlord
resulting from or in connection with such use of the Building's elevators by the General
Contractor(or its employees or subcontractors).
16. Welding/Cutting Torch Use: No welding or cutting torch is to be used in the Building
without the prior approval of Landlord. If such approval is granted by Landlord, the General
Contractor must have a fire extinguisher present in the Work Area at all times when the
equipment is being used. Additionally, the General Contractor must perform any such work
after-hours because of the fumes which may be associated with such welding/cutting torch usage.
17. Spraying of Varnishes/Lacquer in the Building: No varnishes/lacquers are to be sprayed
in the Building without the prior approval of the Landlord. Because of their combustible nature,
this type of work should normally be done off-site. Anyone found spraying these compounds in
or around the Building without the approval of the Landlord will be required to cease such work.
18. Draining of Sprinkler Lines: Any work which will involve the draining of a sprinkler
line or otherwise affect the Building's sprinkler system must be approved in advance by
Landlord. In all instances where this is done, the system may not be left inoperable overnight.
De-energizing of the fire pump related to drainage of the sprinkler lines will be done only by
Landlord's personnel.
19. Deliveries: All deliveries and/or pick-ups by the General Contractor or its vendors must
be made through the Building loading dock and freight entrance or as otherwise specifically
provided by Landlord. All delivery vehicles are governed by a one (1)hour parking limitation.
Deliveries of drywall and other oversized material must be scheduled for delivery on weekends
through the management office.
20. Parking: Landlord does not provide parking for the General Contractor or
subcontractors. Neither Landlord nor the parking garage operator(if different from Landlord)
will not be responsible for damages or thefts to any vehicles parked in the parking garage or
loading dock.
21. Posting of Rules and Regulations: A copy of these rules and regulations, acknowledged
and accepted by the General Contractor, must be posted on the Job Site in a location clearly
visible to all workers. It is the General Contractor's responsibility to instruct its employees and
all subcontractors to familiarize themselves with these rules and to enforce compliance with
these rules at all times.
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22. Life Safety ystem: The General Contractor shall be held responsible for maintaining the
integrity of the Building's life safety system in areas under its construction supervision and
within its control. Should a General Contractor's Work, including welding, the use of a cutting
torch, or any other activity, interfere with the fire alarm system wiring or otherwise trigger or
affect the fire alarm system, the General Contractor must contact Landlord prior to commencing
such activity.
The General Contractor shall take any and all reasonable steps to prevent accidental triggering of
the fire and smoke detection devices within or adjacent to the Work Area. Such steps shall not
include disconnecting any such devices, but rather shall involve the installation of dust barriers
around smoke detectors, etc. All stairwell doors will remain closed at all times.
In the event Landlord receives a charge from any governmental or quasi- governmental agency
related to the connection, disconnection, testing or use of any Life Safety System by General
Contractor or Tenant, Tenant and/or General Contractor shall be responsible for paying the same
to Landlord within 10 days after written demand therefore.
23. Light Bulbs and Ballasts: The General Contractor is responsible for ensuring that all
light fixtures in the Work Area are working properly and are fully lit upon job completion. This
includes replacement of bulbs and ballasts as required in light fixtures that are replaced, added or
repositioned.
24. Providing of Licenses: General Contractor will supply to the management office a copy
of the General Contractor's License, Certificate of Insurance, and a Letter of Competency. All
subcontractors must supply the same information to the management office.
25. Access: The General Contractor will be required to sign for a key for access to its work
areas from the management office on a daily basis. The General Contractor will open all
necessary areas for its personnel to work and will secure all areas every evening.
26. Non-Compliance: Non-compliance with these regulations will result in the possible
barring of the General Contractor from current or future activities in the Building. Any costs
incurred by Landlord in cleaning the Building or Work Area or repairing damage resulting from
the General Contractor's activities (including the activities of any of the General Contractor's
employees or subcontractors) will be billed to the General Contractor or set off against future
payments to the General Contractor.
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EXHIBIT C
INITIAL PLAN
[PLEASE ATTACH]
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EXHIBIT "D"
RULES & REGULATIONS
The following rules and regulations have been formulated for the safety and well-being of all
tenants of the Building. Strict adherence to these rules and regulations is necessary to guarantee
that each and every tenant will enjoy comfortable occupancy in the Building. If you have any
questions regarding these rules and regulations, please call the Management Office.
1. HOURS OF OPERATIONS
Normal hours of operation for the Building are as follows: _:00 a.m. to _:00 p.m.,
Monday through Friday, and_:00 a.m. to_:00 p.m. on Saturday.
2. LITTERING/LOITERING
No littering or loitering.
3. SIDEWALKS, ETC.
The sidewalks and public portions of the Building such as entrances, passages, courts,
elevators, vestibules, stairways, parking garage, corridors or halls, shall not be obstructed
or encumbered by Tenant or used for any purposes other than ingress and egress to and
from the Premises. Landlord shall have the right to control and operate the public
portions of the Building and the facilities furnished for the common use of the Building
in such manner as Landlord reasonably deems best for the benefit of the Building's
tenants generally.
4. USE OF PREMISES
Landlord shall not permit the preparation of food for sale on the Premises nor use the
facilities for the preparation of food for sale without its prior written consent. Tenant
shall not use the Premises for housing, lodging, sleeping nor any immoral or illegal
purpose.
5. CONSUMPTION OF FOOD OR BEVERAGE
Tenant, its employees or visitors shall not be permitted to consume food or beverages in
the common area. Tenant shall not cook, otherwise prepare or sell any food or beverages
in or from the Premises or use the Premises for housing accommodations or lodging or
sleeping purposes except that Tenant may install and maintain vending machines,
coffee/beverage stations and food warming equipment and eating facilities for the benefit
of its employees or guests, provide the same are maintained in compliance with
applicable laws and regulations and do not disturb other tenants in the Building with
odor, refuse or pests.
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6. SMOKING
Smoking is not permitted in any area of the Building. This includes the tenant's premise,
bathrooms, hallways, stairwells, and the Building's lobby.
7. BICYCLES/PETS
No bicycles, vehicles, wagons, carts, animals, birds or pets of any kind shall be brought
into or be kept in or about the Premises. With the exemption of an eye seeing dog
specifically trained to aid the vision impaired and accompanied by its master.
8. VISITORS/GUESTS
Landlord reserves the right to exclude from the Building at all times any person who does
not properly identify himself to the Building management. Landlord, may at its option,
require all persons admitted to or leaving the Building to register. Tenant shall be
responsible for all persons for whom he authorizes entry into or exit out of the Building
and shall be liable to Landlord for all acts of such persons, except to the extent covered or
required to be covered by insurance carried, or required to be carried, by Landlord or
Tenant.
9. VENDORS
Tenant shall not purchase spring water, ice, coffee, soft drinks, towels or other services
from any company or persons whose repeated violations of Building regulations have
caused, in Landlord's reasonable opinion, a hazard or nuisance to the Building and/or its
occupants.
10. CONTRACTORS/WORKERS
All contractor and/or technicians performing work for the Tenant within the Premises,
Building, or parking facilities, shall be referred to Landlord for approval before
performing such work. This rule shall apply to all work including, but not limited to,
installation of telephones, telegraph e ui ment electrical devices and attachments and all
installations affecting floors, walls, windows, doors, ceilings, equipment or any other
physical feature of the Building, the Premises or the parking facilities. None of this work
shall be done by Tenant without Landlord's prior written approval.
11. JANITORIAL SERVICE
Tenant shall employ their own janitors subject to the prior written consent of Landlord;
when so employed, such janitors shall be subject to the regulations and control of
Landlord (but not as agent or servant of Landlord). Janitorial service will not be provided
with respect to the Premises.
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12. SERVANTS
Any person employed by Tenant to do janitorial work within the Premises must obtain
Landlord's consent, and such person shall, while in the Building and outside of said
Premises, comply with all reasonable instructions issued by Building management.
13. RECYCLING
Recycling is one of the easiest ways to conserve resources and reduce pollution. All
cardboard boxes need to be flattened and properly labeled "Trash" so that the janitorial
company may dispose of it properly.
14. SIGNAGE
Tenant shall not affix any device, sign or other fixture to the outside of the Building or
any window, door or hallway without the prior written consent of the Landlord. Tenant
shall not use the name or marks of Mount Sinai Medical Center for any purpose other
than Tenant's business address; Tenant shall not use the name of the Building or the name
or marks of Mount Sinai Medical Center for Tenant's business address after Tenant
vacates the Premises; nor shall Tenant use any picture or likeness of the Building in any
circulars, notices, advertisements or correspondence.
Tenant shall not represent itself as being associated with Mount Sinai Medical Center or
its affiliates.
15. WINDOW TREATMENT
No curtains, blinds, shades, louvered opening or screens shall be attached to or hung in or
used in connection with any window or door of the Premises without the prior written
consent of the Landlord. If approved, such items must be of a quality, type, design and
color, and attached in a manner approved by Landlord. Tenant shall not place anything or
allow anything to be placed near the glass of any window, door, partition, or wall which
may appear unsightly, in Landlord's sole discretion, from the outside of the Premises. No
sunscreen or other films shall be applied to the interior surface of any window glass.
16. UTILITIES
Tenant shall not waste electricity, water or air-conditioning and shall cooperate fully with
Landlord to assure the most effective and efficient operation of the Building's heating and
air-conditioning systems.
17. PLUMBING
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The water and wash-closets and other plumbing fixtures shall not be used for any purpose
other than those for which they were constructed, and no sweepings, rubbish, rags or
other substances shall be thrown therein. All damages resulting from any misuse of the
fixtures by Tenant's servants, employees, agents, visitors, or licensees, shall be borne by
Tenant.
18. HAZARDOUS SUBSTANCES
Neither Tenant, nor any of Tenant's agents, employees, contractors, licensees or invitees,
shall at any time put up or operate fans or electrical heaters or bring or keep upon the
Premises inflammable, combustible or explosive fluids, or chemical substances other than
reasonable amounts of cleaning fluids or solvents required in the normal operation of
Tenant's business offices. No offensive gases or liquids shall be permitted.
19. CARTS
There shall not be used in any space or in the public halls of the Building, either by
Tenant or by its jobbers or others in the delivery or receipt of merchandise, any hand
trucks except those equipped with rubber tires and side guards. No hand trucks, mail carts
or mailbags shall be used in passenger elevators.
20. EQUIPMENT/RISERS
Tenant shall not in sta ll any ante nn ae o r aerial wires, or radio or television equipment, or
any other type of equipment, inside or outside of the Building, without Landlord's prior
approval in writing and upon such terms and conditions as may be specified by Landlord
in each and every instance.
21. SHOWCASES/WALLS
No showcases or other articles hall be put in front of or affixed to any part of the exterior
of the Building, nor placed in the halls, corridors or vestibules without prior written
consent of Landlord. No Tenant shall mark, paint, drill into, or in any way deface any
part of the Premises or the Building of which they form a part. No boring, cutting, or
stringing of wires shall be permitted, except with the prior written consent of the
Landlord and as it may direct.
22. NUISANCES
Tenant shall not construct, maintain, use or operate within the Premises or elsewhere
within or on the outside of the Building, any electrical device, wiring or apparatus in
connection with a loud speaker system other than an office loud speaker system with
speakers solely within the Premises, and the sound from which does not disturb other
tenants.
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1
No tenant shall make, or permit to be made, any unseemly or disturbing noises or disturb
or interfere with occupants of this or neighboring Buildings or Premises or those having
business with them, whether by the use of any musical instrument, radio, talking
machine, musical noise, whistling, singing, or ill any other way. No tenant shall throw
anything out of the doors, windows, or skylights, or down the passageways. No tenant
shall cause or permit any unusual or objectionable odors to be produced upon or permeate
from the Premises.
To the extent permitted by law, Tenant shall not cause or permit picketing or other
activity which would interfere with the business of Landlord or any other tenant or
occupant of the Building, or distribution of written materials involving its employees in
or about the Building, except in those locations and subject to time and other limitations
as to which Landlord may give prior written consent.
23. SOLICITATION
Room-to-room canvasses to solicit business from other tenants of the Building are not
permitted; Tenant shall not advertise the business, profession or activities of Tenant
conducted in the Building in any manner which violates any code of ethics by any
recognized association or organization pertaining to such business, profession or
activities.
24. REMOVAL OF PROPERTY FROM PREMISES
All moves in or out of the Premises or the carrying in or out of any safes, freight,
furniture or bulky matter of any description must take place during the hours which
Landlord may determine from time-to-time. Only the Building freight elevators shall be
used for such purposes. Tenant will insure that the movers take necessary measures
required by Landlord to protect the Building (e.g. windows, carpets, walls, doors and
elevator cabs) from damage. Landlord reserves the right to inspect all freight to be
brought into the Building and to exclude from the Building all freight which may violate
any of these rules and regulations or the lease in which these rules and regulations are a
part.
25. LOCKS
Except for any secured areas of the Premises, additional locks or bolts of any kind shall
not be placed upon any of the doors or windows by Tenant, nor shall any changes be
made in existing locks or the mechanism thereof without Landlord's consent. Except on
single-tenant floors, the doors leading to the corridors or main halls (if any such doors
exist) shall be kept closed during Normal Business hours except as they may be used for
ingress or egress. Tenant shall, upon the termination of this Lease, return to Landlord all
keys of stores, offices, storage and toilet rooms either furnished to, or otherwise procured
by Tenant, and in the event of the loss of any keys so furnished, Tenant shall pay to
Landlord the cost to re-key the locks operated by those keys.
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26. LOST OR STOLEN PROPERTY
i
Landlord will not be responsible for any lost or stolen personal property, equipment,
money or jewelry from Tenant's Premises, public rooms or vehicles regardless of
whether or not such loss occurs when the area is locked against entry. Tenant assumes
full responsibility of protecting the Premises from theft, robbery and pilferage; the
Indemnitees shall not be liable for damage thereto or theft or misappropriation thereof.
Except during Tenant's normal business hours, Tenant shall keep all doors to the
Premises locked and other means of entry to the Premises closed and secured. All
corridor doors shall remain closed at all times. If Tenant desires telegraphic, telephones,
burglar alarms or other electronic mechanical devices, the Landlord will, upon request
direct where and how connections and all wiring for such services shall be installed and
no boring, cutting or installing of wires or cables is permitted without Landlord's
approval.
27. WORD REQUEST
Except with the prior a pp roval of Landlord, all cleaning, repairing,janitorial, decorating,
painting or other services and work in and about the Premises shall be done only by
authorized building personnel. The requirements of Tenant will be attended to only upon
application at the management office of the Building. Building employees shall not
perform any work or do anything outside of their regular duties, unless under special
instructions from the management office.
28. WEIGHT BEARING ITEMS/FLOOR LOADS
The weight, size and location of safes, furniture, equipment, machines and other large or
bulky articles shall be subject to Landlord's approval and shall be brought to the Building
and into and out of the Premises at such times and in such manner as the Landlord shall
direct and at Tenant's sole risk and cost. Prior to Tenant's removal of any of such articles
from the Building, Tenant shall obtain written authorization of the Office of the Building
and shall present such authorization to a designated employee of Landlord.
29. ELECTRICAL OVERLOAD
Tenant shall not overload the safe capacity of the electrical writing of the Building and
the Premises or exceed the capacity of the feeders to the Building or risers.
30. LANDLORD'S RIGHTS FOR REPAIRS
It is understood and agreed that Landlord has the undisputed right to temporarily
discontinue water, electric, air conditioning, elevator, or any other service necessary for
the proper maintenance, repair, or improvement of the Building.
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31. PASS KEY
The Landlord may retain a pass key to the leased Premises, and be allowed admittance
thereto at all times to enable its representatives to examine the said Premises for purposes
of Building maintenance requirements.
32. BUILDING SAFETY PROCEDURES
Tenant shall comply with all safety, fire protection and evacuation procedures and
regulations established by Landlord or any governmental agency and shall cooperate and
participate in all reasonable security and safety programs affecting the Building.
Landlord reserves the.right to modify or delete any of the foregoing rules and regulations and to
make such other reasonable rules and regulations within its judgment as may from time-to-time
be needed for the safety, care and cleanliness of the Premises, the Building, and Landlord's
property and for the preservation of good order therein. Landlord shall not be responsible to any
tenant for the nonobservance, or violation, of any of these rules and regulations by other tenants.
In the event of any inconsistency between the Lease with Tenant and the Rules and Regulations
herein, the terms of the Lease shall control.
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