LTC 194-2003CITY OF MIAMI BEACH
Office of the City Manager
Letter to Commission No. //~-- ~o.~
To:
From:
Subject:
Mayor David Dermer and
Members of the City Commission
Date: August 26, 2003
Jorge M. Gonzalez \~--'
City Manager
RDP ROYAL PALM DEFAULT NOTICE - LTC # 191-2003
Pursuant to LTC # 191-2003 which transmitted the letters from Union Planters and RDP
Royal Palm Hotel Limited Partnership ("RDP") regarding the maturity of RDP's loan and its
default status, the City's/RDA's outside counsel, Joel Minsker, has reviewed this
information relative to the City/RDA's Lease Agreement.
Union Planters' letter advising of the loan's default does not constitute a default pursuant to
the City/RDA's Lease Agreement. If the Recognized Mortgagee pursues default
proceedings, it is granted certain rights when it steps into the shoes of Tenant pursuant to
the Lease, whereupon the Recognized Mortgagee, or its Designee, would then operate the
Hotel.
The significance of this is that any modifications as contemplated by the LOI under
negotiation may ultimately inure to the benefit of the Recognized Mortgagee, or its
Designee. Additionally, as required under the Lease, the Bank's consent is required as
was stated on April 30, 2003.
Based upon this review, there is no action required by the City/RDA at this time regarding
the Union Planters loan maturity/default notice.
JMG\CMC\rar
F:\crngr~$ALL\LTC-03\RDP Royal Palm DefaultNotice F-Up.CMC.rar.doc
c:
Christina M. Cuervo, Assistant City Manager
Murray Dubbin, City Attorney
Joel Minsker, Bloom and Minsker
Kent Bonde, Redevelopment Coordinator