Resolution 2018-30310 RESOLUTION NO. 2018-30310
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, APPROVING THE ISSUANCE OF
REQUEST FOR PROPOSALS (RFP) NO. 2018-238-KB, FOR THE
DEVELOPMENT OF A CONVENTION CENTER HOTEL ADJACENT TO
THE MIAMI BEACH CONVENTION CENTER; AND DIRECTING THE
ADMINISTRATION TO MODIFY THE RFP TO SEEK PROPOSALS FOR
A DEVELOPMENT AND GROUND LEASE AGREEMENT, SOLELY WITH
RESPECT TO THE "OPTION A," AS IDENTIFIED IN THE COMMISSION
MEMORANDUM ACCOMPANYING THIS RESOLUTION.
WHEREAS, on April 13, 2016, the Mayor and City Commission established the Mayor's
Ad Hoc Blue Ribbon Steering Committee on the Convention Center Hotel (the "Committee"),
chaired by Commissioner Arriola and Vice-chaired by Commissioner Rosen-Gonzalez; and
WHEREAS, on February 14, 2018, the Mayor and City Commission considered the
Committee's report regarding potential options for a Convention Center Hotel development,
including options with respect to a proposed Hotel's location, size, height, and related issues such
as traffic mitigation, and the like; and
WHEREAS, on February 14, 2018, the Mayor and City Commission directed the
Administration to prepare a Request for Proposal ("RFP") that incorporated the various options
discussed; and
WHEREAS, the proposed RFP is attached as an exhibit to the Commission
Memorandum accompanying this Resolution.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City
Commission of the City of Miami Beach, Florida, hereby approve the issuance of Request For
Proposals (RFP) No. 2018-238-KB, for the Development of a Convention Center Hotel adjacent
to the Miami Beach Convention Center; and direct the Administration to modify the RFP to seek
proposals for a Development and Ground Lease Agreement, solely with respect to the
"Option a," as identified in the Commission Memorandum accompanying this Resolution.
PASSED AND ADOPTED this of day of May, 2018.
ATTEST:
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MIAMI BEACH
COMMISSION MEMORANDUM
TO. Honorable Mayor and Members of the City Commission
FROM: Jimmy L. Morales, City Manager
DATE: May 16, 2018
SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, APPROVING THE ISSUANCE OF REQUEST FOR
PROPOSALS (RFP) NO. 2018-238-KB, FOR THE DEVELOPMENT OF A
CONVENTION HOTEL ADJACENT TO THE MIAMI BEACH CONVENTION
CENTER.
RECOMMENDATION
Adopt the Resolution.
ANALYSIS
Refer to attachment entitled "Hotel RFP Memo"
CONCLUSION
Refer to attachment entitled "Hotel RFP Memo"
KEY INTENDED OUTCOMES SUPPORTED
Maximize The Miami Beach Brand As A World Class Destination
Legislative Tracking
Office of the City Manager/Procurement
ATTACHMENTS:
Description
❑ Hotel RFP Memo
❑ Exhibit 1 - Matthews Sourthwest Preston Hollow Capital Unsolicited Proposal
❑ Exhibit 2 - Public vs. Private Comparison
❑ Exhibit 3 Draft RFP including Ground Lease template
❑ Resolution RFP 2018-238KB
Page 1383 of 1842
MIAMI BEACH
City of Miami Beach, 700 Convention Center Drive,Miami Beach,Florida 33139,www.miamibeachfl.gov
OFFICE OF THE CITY MANAGER
MEMO TO COMMISSION
TO: Mayor Dan Gelber and Members of the City Commission
FROM: Jimmy L. Morales, City Manager
DATE: May 16, 2018
SUBJECT: RFP 2018-238-KB FOR THE DEVELOPMENT OF A CONVENTION
CENTER HOTEL ADJACENT TO THE MIAMI BEACH CONVENTION
CENTER
ADMINISTRATION RECOMMENDATION
Adopt the Resolution to issue a request for proposal for the development of a convention center
hotel adjacent to the Miami Beach Convention Center.
BACKGROUND
In 2015, the City issued an RFP for the development of an 800-room convention headquarter
hotel on the 2.55 acre site defined below as the "Original Hotel Site'. The City selected a
developer, negotiated and finalized a comprehensive lease agreement, and held a referendum
in the March 2016 election, seeking 60% approval from the voters to proceed with the lease of
the land. Approximately 54% of the voters approved the lease, and the project could not
proceed.
On June 1, 2017, the Mayor's Ad Hoc Blue Ribbon Panel on the Convention Hotel (the "Panel")
presented its report to the City Commission. The key recommendations included: 1) It is critical
to the City and the Miami Beach Convention Center that the construction of a Convention Center
Hotel be pursued; 2) The Convention Center Hotel should guarantee that at least 80% of its
rooms be available for convention center events; 3) No gambling of any kind should be allowed
at the hotel or on the site; and 4) If the Jackie Gleason Theater site is utilized, it is critical that a
new state-of-the-art Jackie Gleason Theater ("Gleason") be constructed that is of similar size
and function. Other recommendations included the number of rooms to be between 800 to 1,000;
a building height of no more than 185 feet; best efforts to engage a world-class architect;
maximize vehicle access points; and provide sufficient parking required by the City Code.
On February 14, 2018, the City Commission directed staff to present options for a new RFP to
develop a convention center hotel and to consider the following sites:
• Original Hotel Site - the same 2.55-acre site from the 2015 RFP, which is currently a
parking lot, and is adjacent to the MBCC.
• Expanded Hotel Site — this site would include the Original Hotel Site, and the property
that is currently occupied by the Gleason Theater, an additional 3.84 acres.
• 17th Street Garage Site —The 3.15 acre site of the current City parking garage.
Page 1384 of 1842
RFP 2018-238-KB For The Development of a Convention Center Hotel Adjacent to the Miami Beach
Convention Center
May 16, 2018
Page 2 of 9
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Subsequently, on April 2, 2018 the City received an unsolicited proposal from Matthews
Southwest Hospitality("MSW")and Preston Hollow Capital ("PHC")to design, build operate and
maintain a convention center hotel with a Phase 1 553-room hotel on the Original Hotel Site, and
a Phase II expansion of the hotel to 1,000± rooms once the Expanded Hotel Site becomes
available. Under this proposal, the hotel would be owned by the City, developed by MSW under
a development/management agreement and financed with tax-exempt bonds purchased by
PHC, with no recourse to the City beyond the net operating income of the hotel. The hotel is
proposed to be operated by a third-party hotel management company (Hilton, Hyatt, Marriott,
etc.)for the term of the bonds. Once the bonds are repaid, the City would own the hotel and can
continue to operate the hotel or sell it to a third-party. Since the hotel site would be City-owned
and would not involve a lease or sale of land, there is no referendum requirement for this
proposal. Instead, pursuant to Section 1.03(f) of the City Charter, the project would require
approval by 4/7 of the Planning Board and 6/7 of the City Commission. The proposal is included
in Exhibit 1.
NEED FOR A CONVENTION CENTER HOTEL
The City of Miami Beach has been engaged in a public construction project that includes a
complete renovation and expansion of the Convention Center, with construction anticipated to
be completed this fall. This state-of-the-art building will enable our region to compete for world-
class events and meetings.
An adjacent convention center hotel is the next step in creating a highly competitive convention
destination. The hotel will have a dramatic impact on the ability to book conventions and events
that generate hotel room nights and spending throughout the city. The following summarizes
the key impacts:
• Competitive Landscape—Out of the 30 top U.S. convention destinations, Miami Beach
is one of four that currently does not have a headquarter hotel attached or adjacent to its
convention center. The other three cities in lu e: Ft. Lauderdale, which is in the process
of developing a hotel; Los Angele�a9�ile fs°ai 43n the process of developing a hotel;
RFP 2018-238-KB For The Development of a Convention Center Hotel Adjacent to the Miami Beach
Convention Center
May 16, 2018
Page 3 of 9
and New York, which does not need a headquarter hotel in view of the significant hotel
inventory in the nearby Broadway District. With the addition of the convention hotel for
the MBCC, Miami Beach will be truly competitive as a convention destination.
• Client Demands — The City and the Greater Miami Convention and Visitors Bureau
(GMCVB) have reached out to the Convention Center's target market and continue to
receive feedback that many convention planners will only consider Miami Beach for their
event if there is an attached hotel. With a hotel, the City will finally have an opportunity
to book these events. Art Basel has also expressed strong support for the hotel.
• Center Bookings — Case studies in other destinations that have expanded/renovated
their convention center, and developed a convention hotel, have shown material
increases in convention bookings. Average convention room night impact increased
42%. The City and GMCVB are working through booking goals for the Convention Center
and are working toward increasing convention bookings from approximately 5 annually
to 20 to 25 annually, not including Art Basel.
• Area Hotel Impact — City staff has studied the impact on existing hotels when a new
convention hotel opens. In cities where new convention hotels have been developed,
hotel room night demand exceeded the increase in room night supply within 1 to 3 years.
• Room Rate Driver -City staff has analyzed the times of year when Miami Beach realizes
its highest hotel rates. Other than New Year's Eve and large sporting events, many of
the high rate periods coincide with convention center events. More conventions booked
means more high-rate periods, which means more hotel revenues, equating to more tax
revenues that support City services.
• Traffic—The convention hotel is critical to change the Convention Center's booking mix
from "drive-in" consumer and trade shows to "fly-in" conferences and conventions. This
should reduce the traffic impact of the convention center by cutting down the number of
daily trips.
• Contractual Room Block— One of the challenges with booking the Convention Center
is that the City has no room block agreements with any hotels in the area, including large-
scale hotels capable of providing large enough group room blocks to support convention
events. Room commitments are critical to attracting premier conventions. Any hotel
developed on City land will require a Room Block Agreement, requiring the Hotel to
commit 80% of its rooms to Citywide events that are to occur at least 30 months in the
future and, among other things, include price protection to ensure a fair rate is offered.
This is a game changer for Miami Beach.
• Tax Impact—The Hotel will pay hotel, resort and property taxes that go to the City. The
2015 hotel proposal (800 rooms)was estimated to create City taxes totaling $151 million
net present value ("NPV") over 30 years. These funds support both the Convention
Center itself, and a number of other projects within the City. Public schools would have
received an additional $40 million NPV from the Hotel, and the County an additional $87
million NPV.
• Increased Dedicated County Funding— Miami-Dade County is contractually obligated
to increase its Convention Development Tax funding to the City of Miami Beach by up to
$1.5 million annually through 2044 — only if a convention hotel is developed. This
totals over$30 million more to thektv. 1386 of 1842
RFP 2018-238-KB For The Development of a Convention Center Hotel Adjacent to the Miami Beach
Convention Center
May 16, 2018
Page 4 of 9
• Art in Public Places — The hotel will contribute 1.5% of the construction costs to the
City's Art in Public Places fund, which may be used for Art in Public Places projects
throughout the City.
The advantages of developing the proposed convention hotel are substantial and complement
the City's investment in the MBCC Renovation and Expansion Project. I truly believe that our
investment in the Convention Center, coupled with a new convention hotel, will catapult Miami
Beach into a leadership position in the convention market. Failure to build an adjacent
headquarter hotel will diminish the return on our investment in the Convention Center. While an
800-1,000 room hotel maximizes impact, even a minimum of 500 rooms in a Phase 1 would be
impactful.
HOTEL DEVELOPMENT APPROACHES
Convention center hotels are typically developed under public-private partnerships due to the
need for subsidies to support the high cost of building the meeting space program elements
within the hotel. In general, the public entity provides 30-50% of project costs through project
rebates, abatements, land contribution, grants, and other forms of public financing support. Only
destinations like Las Vegas, with its gambling revenue support, Orlando, with its theme park
support, and Miami Beach, with its international destination appeal, can develop convention
hotels without public subsidies.
Convention hotels are developed either by 1) a private developer model, through a lease or sale
of property, with private debt and equity (and public subsidies); or 2) a publicly owned and
financed model, with a public-private partnership for a developer to develop and operate the
hotel. Below is a table of the recent convention center hotel projects and the model used for
development.
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In Miami Beach, under the private developer model, the City would lease the hotel site to a
private developer, who would raise private capital to develop the hotel, and hire a third-party
management company to manage the hotel. This model was utilized in the 2015 hotel proposal.
Under Section 1.03(b)(3) of the City Charter, a lease longer than 10 years of land adjacent to
Page 1387 of 1842
RFP 2018-238-KB For The Development of a Convention Center Hotel Adjacent to the Miami Beach
Convention Center
May 16, 2018
Page 5 of 9
the Convention Center would require approval by 60% of the voters voting in a City-wide
referendum.
Many cities across the country utilize various versions of publicly owned development models
for their convention center hotel projects. Broward County, Florida is currently in the process of
utilizing a publicly-owned approach for its convention center hotel. Most cities provide credit
enhancement to realize the lowest cost of capital, and in turn use hotel profits to fund other
economic development projects. For example, Houston publicly financed a 1,200-room Hilton
that opened in 2004. Profits from the Houston Hilton funded the subsidies required to develop
a second privately financed 1,000 room Marriott that opened in 2016, and funded the convention
center's renovation and expansion that was completed in 2016.
The table in Exhibit 2 provides a summary of the key elements of each approach.
Given the nature of how hotels are developed across the United States, I am recommending
that the City issue the attached RFP that enables bidders to propose either public or
private financing approach. This will open up the opportunities to all types of responses and
enable the City to assess the merits of both approaches. In both cases, the RFP will be clear
that there will not be any public subsidy or guarantees for the hotel in Miami Beach.
SITE ANALYSIS
As mentioned above,the City Commission directed staff to present the options for the convention
hotel to be developed considering the following sites:
• Original Hotel Site - the same 2.55-acre site that was offered in the 2015 RFP.
• Expanded Hotel Site—includes the site that is currently occupied by the Gleason Theater.
• 17'" Street Garage Site —The site of the current City parking garage.
Original Hotel Site
The majority of the Original Hotel Site is a surface parking lot and is ready for development. The
site also includes the building at 555 17'" Street, and the annex of the Gleason Theater building.
During the 2015 process, an amendment to the Live Nation Management Agreement was
negotiated and approved with Live Nation Worldwide, Inc., to provide for the Gleason Annex as
part of the hotel footprint and minimize any impacts to Fillmore Live Nation operations.
As discussed at various meetings of the Mayor's Ad Hoc Blue Ribbon Panel on the Convention
Hotel, many believe the primary reason the 2015 referendum did not pass was due to the size,
mass and height of the 2015 proposed 800-room hotel. Therefore, it is recommended to limit
the height of the hotel to 185 feet per the recommendation of the Mayor's Blue Ribbon Panel.
Massing studies have indicated this could limit the number of rooms to approximately 550±
rooms. Parking of 0.4 spaces per room is currently required by the City's Land Development
Regulations. Room count could increase if adjacent parking is utilized and the City Code is
changed to reduce the on-site parking requirement.
The RFP includes an option for proposers to submit proposals for either a lease of the
Original Hotel Site, or a P3/Management Agreement for the Original Hotel Site. Under
both models, no public subsidies or credit enhancements will be provided for the Hotel.
Expanded Hotel Site
Combining the Original Hotel Site with the Expanded Hotel Site provides an ideal site to develop
a convention center hotel. The 6.4-acoggositsaggy}lylggt¢commodate both the hotel and a
reconstructed Gleason Theater, a recommendation from the Mayor's Blue Ribbon Panel on
RFP 2018-238-KB For The Development of a Convention Center Hotel Adjacent to the Miami Beach
Convention Center
May 16. 2018
Page 6 of 9
Convention Hotel. There are several challenges with utilizing the Gleason site immediately for
hotel development, including:
• The Gleason is currently operated by Live Nation pursuant to a Management
Agreement that expires August 31, 2022, requiring a buy out to be negotiated prior
to leasing the site to a hotel developer.
• It will be very challenging to design the ballroom required under hotel brand standards
for a 1,000-room hotel, and leave the existing Gleason in its current location.
• The Gleason is in need of as much as $50 million in renovations if it is determined to stay
in its current location.
• Reconstructing a new 2,460 seat theater costs $50,000 to over $100,000 per seat or
$120 million to $240 million. By way of comparison, the recently constructed 2,400-seat
Disney Theater in downtown Orlando cost $102,000 per seat excluding land costs. The
Disney Theater is a modern version of the Gleason, an amplified theater targeting
commercial acts in music, comedy and Broadway theater. The South Dade Cultural
Center, with just 960 seats, was completed in 2011, and cost approximately $50 million.
The City does not currently have the resources available to publicly fund a new theater, so the
only way to utilize the Expanded Hotel Site is if the hotel developer funds the project.
Consequently, any proposal utilizing this larger site will need to provide a private funding plan
for reconstruction of the Theater. This is very challenging.
The proposed RFP includes a potential option for a long-term lease of the Expanded Hotel
Site. The RFP requests that proposers identify any financial commitments or guarantees that
may be required for the renovation or replacement of the Gleason Theater. The City has not
included a Management/P3 Option for the Expanded Hotel Site because, pursuant to Section
287.055 of the Florida Statutes, the City would need to identify a "design criteria professional"
("DCP") to prepare a "design criteria package" for the Theater. The City does not have the
requisite architectural/engineering expertise in-house for development of a DCP for a performing
arts center. If this is an option the City Commission desires to pursue, the process of engaging
a design firm would take 4-6 months, with additional time required for the firm to then prepare a
DCP.
17th Street Garage Site — It has been recognized in the City's long-term capital plan that the
171h Street Garage is reaching the end of its useful life, and redevelopment of the site could
include a hotel. Based on evaluation of the 17th street garage, the Administration does not
recommend the 17th Street Garage site as part of this RFP at this time. First, a hotel project
at the 17'h Street garage would displace the 1,460 parking spaces currently used for Lincoln
Road and the Convention Center District. For the City to take so many parking spaces offline,
even for a temporary construction period, may prove problematic. Second, the 17th Street
Garage is part of the City's Parking System and subject to the bond covenants and limitations
related to the City's Parking Revenue Bonds. The bond covenants require that the City's Parking
System rate consultant (Walker Consultants) provide an opinion, that any proposed disposition
will not have a material adverse effect on the net revenues of the Parking System. Further, the
covenants generally require proceeds of any disposition to be applied for debt service or
defeasance of bonds. Given the size of the 17t11 Street Garage, removing the garage from the
City's parking system in accordance with bond covenant requirements will prove challenging.
The 17th Street Garage generates approximately$2.1 million in net revenues. Third, even if the
foregoing could somehow be accomplished, the potential loss of revenue associated with taking
1,460 parking spaces offline would require the City to reprioritize previously appropriated capital
projects, depleting Parking System surplus fund balances, and reducing (or eliminating)
contributions to the General Fund or tra69fiOrld$@rcfi0i86r'der to meet debt service and other
RFP 2018-238-KB For The Development of a Convention Center Hotel Adjacent to the Miami Beach
Convention Center
May 16, 2018
Page 7 of 9
obligations of the Parking Enterprise Fund. Due to declining revenues in the Parking Fund, the
Administration is already recommending reductions in the transfers to the General Fund. The
loss of these revenues will put further pressure on the Parking Fund
UNSOLICITED PROPOSAL
As noted above, on April 2, 2018, the City received an unsolicited proposal from Matthews
Southwest Hospitality("MSW")and Preston Hollow Capital ("PHC") to design, build, operate and
maintain a convention headquarter hotel
The City Commission has the ability to either (1) accept the unsolicited proposal and initiate the
process for soliciting alternative proposals under Florida Statute 255.065; (2) reject the
unsolicited proposal as moot, as a P3/Management option is provided under the proposed RFP;
or(3)decline to proceed with any RFP option that includes a City-owned hotel model. Since the
City wants to assess all possible options, I recommend the City Commission reject the
unsolicited proposal and utilize the new RFP process that will enable bidders to submit a
proposal for a P3/Management option as part of the process.
TIMELINE
The threshold question in this process is the timing of any required or desired referendum. The
advantage of a November 2018 referendum is higher turnout, which means the largest number
of Miami Beach voters will get to weigh in on the question. The challenge is that the County's
deadline to place a question on the November 2018 ballot is August 7, 2018. That provides
approximately 12 weeks for bidders to respond to the RFP, for the City to assess and select
proposals, negotiate agreements, approve the agreements, and have two readings for the ballot
questions.
Based on the current City Commission calendar, a schedule targeting November. 2018 would
require the City Commission to schedule two additional special City Commission meetings, one
in early July, 2018, and one prior to August 7, 2018. In addition, a November, 2018 target date
would require the RFP to be limited to proposals for the Original Hotel Site, as there are too
many additional issues to take into account and negotiate with regard to any lease for the
Expanded Hotel Site. One of the challenges related to executing a referendum is adherence to
the Third District Court of Appeal's September 20, 2013 ruling in Let Miami Beach Decide v. City
of Miami Beach, Florida. The Court held that to approve a lease under the City Charter, the
voters must be given notice of the material terms of the lease they are being asked to approve.
For this reason, prior to the March 15, 2016 referendum, the City and Portman Holdings fully
negotiated the terms of the proposed Hotel lease, so that voters would have the opportunity to
review the material terms of the lease in advance of the referendum. Accordingly, to the extent
the City Commission desires to pursue any option that requires a referendum, the material terms
of any new agreement must be negotiated, finalized and approved by the City Commission prior
to adoption of the Resolution calling for a referendum.
With respect to a Development/Management Agreement for a City-owned hotel, pursuant to
Section 1.03(f) of the City Charter, a management agreement having a term of ten years or
longer for the management, operation or use of City-owned property or City-owned facility, shall
require approval by a 4/7ths vote of the members of the City's Planning Board, and a 6/7ths vote
of the City Commission. At the City Commission's sole option and discretion, the City
Commission may require, as a condition of its approval of the agreements for a
Development/Management Agreement structure, for the agreement to be contingent upon
approval by a majority of the voters voting thereon in a non-binding (i.e., straw ballot) City-wide
referendum. If the City Commission desired to hold such a straw ballot referendum, the
Development/Management Agreement would need to be finalized prior to adoption of the
Page 1390 of 1842
RFP 2018-238-KB For The Development of a Convention Center Hotel Adjacent to the Miami Beach
Convention Center
May 16, 2018
Page 8 of 9
Resolution calling for a referendum. As there is much to negotiate with respect to a publicly-
owned structure, a November, 2018 target for a straw ballot measure is not possible.
Options for timelines for the RFP is as follows:
November Private Public
Referendum* Approach Approach
Issuance of RFP May 2018 May 2018 Same as Private
Pre-proposal Meeting June 2018 June 2018 Same as Private
Proposal Questions Due June 2018 July 2018 Same as Private
Proposals Due June 2018 July 2018 Same as Private
Analysis/interview/recommendation June 2018 August 2018 Same as Private
Commission Selection Approval July 2018* September 2018 Same as Private
Contract Negotiation July 2018 October 2018 January 2019
Finance Committee Recommendation July 2018 October 2018 January 2019
Planning Board Recommendation July 2018 November 2018 February 2019
City Commission Approval (1" Reading) July 2018 December 2018 Bonds TBD
City Commission Approval (26' Reading) August 2018* January 2019 Bonds TBD
Ballot Question Approved August 2018 February 2019 N/A
Referendum November 2018 May 2019 N/A
If the City Commission decides that it wants to pursue a November 2018 referendum. two Special Commission
meetings, one in July and one in August, would be required with emergency referrals to Finance Committee and
Planning Board.
SUMMARY OF REQUEST FOR PROPOSAL
Based on the foregoing, the City seeks proposals for separate, alternative options for the Hotel
Project, namely:
Option A, for a Development and Ground Lease ("Lease") of the Original Hotel Site, for
the Developer to develop, design, construct, finance, operate and maintain the Hotel Project; or
Option B,for a City-owned Hotel Project at the Original Hotel Site, with the site to remain
owned by the City, and Developer to develop, design, construct, finance, operate, and maintain
the Hotel Project on the City's behalf pursuant to appropriate agreements (collectively, the
"P3/Management Agreement"), with all financing at the Developer's sole risk on a non-recourse
basis; or
Option C,for a Lease of the approximately 6.4 acre Expanded Hotel Site, which includes
the area identified under the Original Hotel Site, as well as the area where the Gleason Theater
is currently located. The project under Option C must include, as part of the Hotel Project, either
the renovation of the Gleason Theater, or the construction of a new performing arts center with
approximately 2,460 seats (the equivalent of the current number of seats at the Gleason
Theater). Under this Option C, the City will consider proposals that include the management
and operation of the Jackie Gleason Theater(or the replacement theater)following the expiration
of the City's current Management Agreement, as amended, with Live Nation Worldwide, Inc.
("Live Nation"). Unless otherwise mutually agreed to with Live Nation, the Lease under this
Option C shall be effective following the expiration of the Live Nation agreement on August 31,
2022, and no construction or renovation work may take place at the Gleason Theater except as
provided in the City's agreement with Live Nation, as amended.
Page 1391 of 1942
RFP 2018-238-KB For The Development of a Convention Center Hotel Adjacent to the Miami Beach
Convention Center
May 16. 2018
Page 9 of 9
The RFP provides the following proposed Evaluation Criteria:
Maximum Points
Proposer Qualifications 15
Design Team Qualifications 10
Financial Plan & Terms and Preliminary Budget 35
Programing 15
Conceptual Design and Resiliency 25
TOTAL 100
RECOMMENDATION
I recommend the City Commission approve and authorize the Administration to issue the
attached Request for Proposal seeking to develop a convention hotel under a site lease or P3
structure, with options for development on the Original Hotel Site or the Expanded Hotel Site,
provided any Expanded Hotel Site proposal includes a viable plan to finance a renovation or
reconstruction of the Jackie Gleason Theater. If the City Commission desires to target a
November, 2018 referendum, I recommend the City Commission approve the issuance of the
RFP, to proceed with Option A— a lease of the Original Hotel Site, with a modified timeline.
Exhibits:
Exhibit 1 Matthews Southwest/Preston Hollow Capital Unsolicited Proposal
Exhibit 2 Public versus Private Ownership/Development Comparison
Exhibit 3 Draft Request for Proposal including Ground Lease Template
JLM/MH/AD
T-AGENDA12018\05 May1MB00 Hotel\Holel RFP Memo 2018 0516 FINAL docx
Page 1392 of 1842
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PROPOSAL FOR A CONVENTION CENTER HEADQUARTER HOTEL
April 2,2018
JOINTLY SUBMITTED BY:
MATTHEWS SOUTHWEST HOSPITALITY, LLC PRESTON HOLLOW CAPITAL, LLC
320 W. MAIN STREET 1717 MAIN STREET, SUITE 3900
LEWISVILLE, TEXAS 75057 DALLAS, TEXAS 75201
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MATMEWS SOU NWEEST p0.E5TON HOLLOW
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Page 1393 of 1842
NUNZ10 MARC I]EVANTIS
MATTHEWS SOUTH W ESr
PRESTON NO LLOW
IIOSPRALRY
AprP 2, 2018
Mr.Jimmy L. Morales, City Manager
City of Miami Beach
1700 Convention Center Drive
Miami Beach, Florida 33139
Dear Mr. Morales.
We are pleased to provide to the City of Miami Beach with the attached proposal fora new Miami Beach Convention Center
Headquarter Hotel. Our team is comprised of Preston Hollow Capital, LLC ("PHC"), Matthews Southwest Hospitality LLP
("MSWH") and Nunzio Marc Desa^tis Architects ("NMDA", and collectively PHC, MSWH and NMDA are referred to as the
"Team"). We believe that our proposal to design, build,finance,operate and maintain the new Miami Beach Convention
Center Headquarter Hotel (the"Project")will provide the City of M!ami Beach(the "City")with an iconic hotel adjacent to
its state-of-the art convention center, and that the City will benefit from our turnkey solution that,among other things:
• Members of the Team ore key project participants, each of which possess a depth and breadth of experience that is
well suited to making the Project a reality;
• The Team members are familiar with one another;
• Structures a transaction that allows for the most timely and efficient deliver/for the Project while maintaining City
ownership of the Hotel with no upfront or ongoing financial commitments of the City;
• Fosters a spirit of partnering In which all stakeholders ore identified and engaged from the outset, communication Is
open and effective,and each team member's expertise helps inform the work of the others such that the final product
is holistically concewed, delivered, and operated.
We are confident that we will be able to deliver this project, consisting of 553 keys, approximately 136,000 sf of meeting
space,including 32,000 of Ballroom space,and multiple F&B outlets with connectivity to the City's Convention Center.The
Project will be located on the parking lot behind the Fillmore Miami Beach.The design allows for the potential expansion
to 1,000 keys should the City decide to do so in the tuture.Aside from the design highlights,one of the principal benefits of
our structure is:hat Project ownership remains with the City;however,the City is not obligated in any way with regard to
the repayment of the bonds or the operations of the Project.This s a principal proposal and is not an agented or syndicated
transaction requiring any additional capital providers.
Unless extended by the Team,the terms of our proposal expire on July 31, 2018. Please note that our Team is requesting
the City to protect the confidentiality of this unsolicited proposal and supporting documentation as provided under section
255.065(15).Please also note that any documents marked as"trade secret'are to be exempt from public record inspection,
regardless of whether the statutorily provided exemption for unsolicited proposals has expired or been lifted due to a
notice of award.
We look forward to working with you on this exciting transaction. If you have any questions,please do not hesitate to call
Mike at 972.221.1199 or Ramiro at 214.389.0811.
Sincerely,
Michael A. Garcia,President Ramiro Albarran,Managing Director
Matthews Southwest Hospitality, LLC Preston Hollow Capital, LLC
Page 1394 of 1842
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Table of Contents
A. PROJECT IN THE PUBLIC'S INTEREST 1
B. TEAM MEMBERS 2
C. PROJECT DESCRIPTION AND SCHEDULE FOR INITIATION AND COMPLETION 5
D. SECURING THE NECESSARY PROPERTY INTERESTS 9
E. PROJECT FINANCING 10
F. PROPOSED FEES,LEASE PAYMENTS OR OTHER SERVICE PAYMENTS 13
G. POINTS OF CONTACT 14
Page 1395 of 1842
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A. Project in the Public's Interest
Our Team is confident that this Project is in the City's,as well as its constituency's,best interest.
1. The City is currently undertaking a large-scale renovation and expansion of its Convention Center.Our Team
agrees with the City when they state that the Convention Center"will set the standard of excellence and
redefine meeting and entertainment solutions when hosting large-scale business,trade, civic and cultural
benefits"Such a marquee facility requires a Headquarter Hotel, as it will help attract additional national
conventions, which will translate to new and greater revenues for the Convention center and the
community.Miami Beach is already a well-known destination,and adding a new world-class Hotel will only
serve to enhance the City for decades to come.
2. The City of Miami Beach will own the Project. However, as discussed throughout the proposal,there is no
governmental entity,including the City,guaranteeing the Bonds or the operations of the Project.
3 there will be adequate safeguards in place to ensure that additional costs or service disruptions are not
imposed on the public. As we discuss, as the Bondholder Representative, PHC would have substantial
authority to ensure the tamely construction and optimal operation of the Project including authorization to.
among other things, act on behalf of any other project-related bondholders in the exercise of rights and
remedies under any debt authorization documents and make additional loans to the Hotel owner to address
shortfalls in funds available for operation and maintenance of the Project. The overall Bond structure also
provides a committed financial partner that can make decisions to protect its investment including the
contribution of additional capital,if needed.
4 Our strurture also provides the ability to add capacity to the proposed Project.To the extent that the Project
is performing and the City desires additional keys and /or convention meeting space,the key documents
will provide for additional bonds to be issued to fund such expansion.
5. As stated in b2 above, the Project will be owned by the City. Once the Bonds have been fully repaid,the
City will continue to retain ownership,if it so desires.
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B. Team Members
We have assembled a team that is uniquely qualified to deliver the new Miami Beach Convention Center
Headquarter Hotel for the City of Miami Beach.Each of the team members is an expert in their respective field and
is committed to delivering a first-class facility.Following is a brief description of each major participant on our team,
along with brief bios of its key team members.
PRESTON HOLLOW CAPITAL
Preston Hollow Capital is the leading solution provider in municipal finance. Headquartered in Dallas, PHC is an
independent spec'alty finance company with more than$1 billion in permanent equity capital and over$2 billion in
investment capacity from a diverse investor base comprised of founding management, institutiona'. investors
inducing funds managed by Stone Point Capital and HarbourVest Partners, and several prominent family offices.
PHC is uniquely focused upon certain sectors of the municipal bond market including real estate, intastructure,
education, hospitality and tourism, economic development and general government To date. PNC has invested
more than 51.4 billion in a variety of such projects.
PHC's ability to provide speed, certainty and flexibility to each project allows our team to focus on the project and
deliver capital when promised:there are no pitch teams, no"B"teams.As the lead capital provider for the project
PHCs involvement will ensure a successful transaction and allows the project team to avoid the laborious and
uncertain task of piecing together the financing for the project PHC's ability to adapt and provide flexible capital
solutions grants the team greater freedom to bring innovative solutions to the City.
Key Personnel--PHC
• Ramiro Albarran,Managing Director&Head of Originations.Ramiro brings over 25 years of experience in
originating and structuring complex municipal, real estate and infrastructure transactions. Prior to joining
Preston Hollow Capita, Ramiro most recently led the Municipal and Infrastructure Finance Group at
Guggenheim Securities. Before Guggenheim, he served as a senior Danker at Stone & Youngberg and an
investor at Starwood Infrastructure. He also held senior positions at Bank of America including leading its
Public Finance efforts. Ramiro has originated and structured a variety of complex municipal transactions
including infrastructure concessions, tax increment, special assessments, and Liberty Bond transactions
including the rebuilding of 7 World Trade Center.
• Matt Levin,Executive Director&Senior Originator. Prior to joining Preston Hollow Capital Matt spent six
years as a senior banker in I.P. Morgan's Public Finance Department as a member of the Infrastructure
Group. Matt had been an investment banker for nearly 20 years focused on energy,infrastructure,sports
facility and project finance, having completed transactions in excess of$25 billion. Prior to J.P. Morgan,
Matt was a banker at Goldman, Sachs & Co. in the Public Sector and Infrastructure Banking Group and
Morgan Stanley in the Public Finance Department. Matt has extensive transactional experience with
complex revenue bond financings. public-private partnerships, derivative transactions, tender offers and
capital restructurings.
• Chad Ohlendorf, Associate Director. Chad joined Preston Hollow Capital in March 2016 as an Associate,
focusing on the firm's asset origination activities. His primary responsibilities include the evaluation and
Proposal 9x397 oroiggch Convention Center Hotel I Page 2
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structuring of the firm's investments Prior to joining Preston Hollow Capital,Chad most recently spent two
years in the Oil&Gas Investment Banking Group at) P.Morgan,where he advised r pst ream and midstream
clients on mergers&acq ulsitions and capital rasing transactions.Before oil&gas investment banking,Chad
served in J.P. Morgan's Public Fina ce Energy Group,where he focused on the origination and structuring
of debt financings for municipa I utility and project finance sponsors.
• John Dinan, General Counsel. John serves as General Counsel for Preston Hollow Capital, and his
responsibilities include oversight of legal and compliance matters,transaction negotiation, documentation
and execution, as well as the application of his specialized expertise in credit-related matters- John
previously served as Director and Senior Legal Counsel for a Dallas-based financial services firm, which he
joined in 2001 to provide a multifaceted range of legal and investment support to the real estate, capital
markets,corporate finance and municipal investment divisions. Prior to that rote,John was a development
partner with one of the nation's largest multifamily merchant builders. He began his legal career in 1981
with concentrated expertise in the areas of real estate tax and finance, creditors rights, bankruptcy and
debt restructuring,and later became a founding member of one of the 20 largest law firms in Dallas.
MATTHEW SOUTHWEST HOSPITALITY
Fstahlished in 1993, Mathews Southwest f"MSW") is a privately held full-service real estate company that has
acquired, built and managed the development of hotel, office, mixed-use retail, residential and Industrial
developments. Matthews Southwest Hospitality, LLC was formed in 2017 to lead the growing hospitality efforts for
Matthews Southwest. MSWH focuses its efforts on new and value-added developments, asset management and
deploying MSW capital in selected hospitality opportunities. We arc in the process of developing over 8 million
square feet of hospitality,office,residential and mixed-use retail developments throughout North America. MSW is
comprised of 130 affiliated companies in the U.S- and 38 in Canada and controls over$400M of real estate and
currently manages over$2B in completed and construction projects.Headquartered in Lewisville, Texas with offices
in Dallas, Alberta, Toronto and Dubai. From conception to completion, MSWH and MSW bring together financial
resources and experienced management focused on creating projects of lasting excellence and long-term value.
Key Personnel--MSWH
• Michael A Garcia,President. Mike is a 20-year-plus veteran in the hotel industry,and currently serves as
President of Matthews Southwest Hospitality, LLC, where he Is responsible for leading the company's
hospitality division to inciude the development of new hotels and resorts throughout North America.
Previously, Mike has held positions as Chief Financial Officer and Chief Development Officer with Omni
Hotels and Resorts, one of the country's fastest growing privately held hotel chains. From conception to
completion, Mike's knowledge and expertise in the hospitality sector will provide our clients and partners
with the results we have built our reputation on. Mike has extensive experience in overseeing accounting
and reporting, treasury, purchasing, risk management and capital project accounting. He formerly led
Omnis impressive growth within the convention center hotel sphere with the addition of the Fort Worth,
Dallas. Nashville and Louisville hotels. He also serves on the Advisory Council to the Dean of the University
of Texas at San Antonio College of Business,
• Dave Snell, Senior Vice President, Development. Dave joined the management team of Matthews
Southwest in 1999 to help implement strategic growth by identifying viable development opportunities
while at the same time maintaining effective cost management.While doing this,Dave has been responsible
in a senior role for the development of the 1001 room$346M Dallas Omni Convention Center Hotel,the 2
Proposal it Beach Convention Center Hotel I Page 3
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million square foot$16B BOW office tower in downtown Calgary.AB and the 1 2 million square foot S100M
residential loft conversion project known as South Side or la mar in Dallas, TX. Among current
responsibilities, Dave leads our Hospitality D.visior.as the Asset Manager fur the Omni Dallas Hotel and as
well as for our 755roomdual branded W/Element by Westin Hotel development project currently under
constructior in Philadelphia, PA. Dave has extensive experience In acquisitions, leasing, servicing,
permitting, designing and development of large scale commercial, industrial and hospitality projects. His
knowledge and expertise in these areas have proven to be very beneficial in ensuring projects are delivered
on time and on budget Prior to joining Matthews Sou!hwest, Dave spent seven years in the commercial
real estate business with Canada's largest independent real estate broker.
NUNZIO MARC DESANTIS ARCHITECTS
Nunzio Marc Desantis Architects is a firm of designers, Innovators and leaders solely focused on the betterment of
the way people escape, engage and experience. NMDA believes those experiences can and should be enriched by
the built environments in which they take place and uses great architectural design services to create engaging hotels
and resorts around the world.
NMDA was established in 2017 my Nunzio Desantis. Nunz!o's career started at HKS 35 years ago,where he created
the FINS Hospitality Group. Nunzio has 35 years of worldwide experience to balance a destination's culture and
ambiance with ever-changing guests forget.After leaving HKS, Nunzlp started HKS to start a firm solely dedicated to
hospitality without distraction by architects moving from one discipline to another_The firm is equally committed to
enhancing the dent experience by using its hospitality expertise to build long lasting relationships with recognizable
brand developers and owners.
In the short time since its establishment. NMDA's projects and designers have already been featured in notable
publications, bringing the quickly growing firm into the public eye.
Key Personnel—NMDA
• Nunzio Desantis, Principal Designer. Nunzio is the founding partner of Nunzio Marc Desantis Architects.
His approach to architecture is based on 35 years of experience and an understanding of hospitality
requirements related to developing truly unique and memorable architecture and environments.Nunzio is
very involved in the design of projects and begins each by understanding challenges, local architectural
vernacular, culture, weather and materials. Nunzio leans teams by establishing early concepts through
drawing and exploration which determines a project's architectural planning, individuality, style and
expression.
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C. Project Description and Schedule for Initiation and Completion
PROJECT DESCRIPTION
The Miami Beach Convention Center Headquarter Hotel presented by our Team is an extremely exciting project. It
will serve as a wonderful addition to an already successful convention center as well as the already vibrant city of
Miami Beach. This hotel and conference center will bring tourists and community together with meaningful
amenities and offerings for public use,as well as elevating the overall competitiveness of the convention center and
the city of Miami Beach.
Proposed to be located immediately east of City Hall,south and adjacent to the Miami Beach Convention Center,to
the east of Convention Center road, and north along 17th street. The Project will position itself as a center for a
variety of community and entertainment venues.Neighboring to the east resides The Fillmore Miami Beach Theatre
and across 17th Street is home to the New World Center and Sundance Park.These venues are home for pre-and
post-entertainment and enjoyment.The Miami Beach Botanical Gardens are located just across the street from the
hotel and convention center along Convention Center Drive. Location to these community facilities and venues will
make for a wonderful stay for guests visiting Miami Beach fur business.Provided below are illustrations for Phase 1
and Phase 2 (expansion)of the Project.
PROPOSED PROJECT(PHASE 1)
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PROPOSED PROJECT EXPANSION(PHASE 1&2)
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Standing under 198 feet high, the hotel tower houses 553 rooms and suites. The guestrooms and suites offer an
array of room types and sizes-each highly appointed and planned with all the comforts for today's travelers-Hotel
amenities include 4 restaurants and oars, 74-hour fitness center,full service spa, business and shipping center, and
a world-class collection of meeting spaces supported by state of the art technology, acoustics, sound systems,
monitors and events marquees. As a part of the resign, we have located a roof top pool with relaxation and
entertainment perch that celebrates the ocean over the tops of surrounding Miami Beach buildings.This pool deck
will offer an escape from the daily rigor of meetings and provide an escape above it all with captivating views of the
gulf and the embrace of the warm Florida sun and sunset, cooled by the ocean breezes from the Atlantic. These
outdoor roof tops anticipate year-round programming, planned events and celebrations. The pool deck and
associate roof top areas act as a private park in the sky with unobstructed views and private,exclusive opportunities.
The Project will house the newest and finest meeting spaces to be found in the City. We have included a 20,000
square foot ("sf') column-free grand ballroom with 22 feet clear height, and a 12,000 sf junior ballroom and a
multituce of small breakout rooms and meeting venues. The meeting venues will be linked by well thought-out
pedestrian walks and corridors with ample pre-function and side aisles that provide individual and undisturbed use
for each user.Additionally,this meeting and gathering area will be properly hacked-served and supported for service
Propos l for Mi 0mi Beach Convention Center Hotel I Page 6
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attendants, cleaning,storage and food service so that the back-of-house (BOH) remains out of sight for the guests,
users and meeting goers.
The planning intent of the design is to help activate and connect visitors and locals with a variety of restaurants and
retail offerings, such as a world class spa and fitness facilities, restaurants, shops, coffee houses and outdoor
elevated pools and decks and event lawns.The connection to the convention center occurs on the street level and
has a direct access to the street concourse of the convention center. The proximity and connectivity provides
meeting goers a seamless and ideal relationship from the hotel to the larger meeting and exhibitions areas that is so
desirable and required by meeting planners making this hotel addition a compete event edge for Miami Beach.
The lobby will be south facing along Convention Center Road welcoming the great Florida sun to warm and grace
the lobby and public spaces that run north and south along Convention Center Road with a direct on-grade
connection to the Miami Beach Convention Center.The hotel restaurants serve hotel guests, conventioneers and
Miami Beach residences and anchor the street edges of the Podium.The restaurants provide energy and vitality to
the street scene making the development active,welcoming and inviting.
The tower is an L shaped tower that maximizes the views of the gulf and city while capturing extraordinary sunsets
to the west. Me orientation of the tower allows for well over 20,000 st of roof top entertainment space and
uninterrupted access to the Florida sun.The tower is 11 levels above the podium with 51 keys per floor.The above-
grade hotel,meeting components and restaurants will be served by a two level above grade 325 cars parking garage.
Should the City allow the hotel to utilize other adjacent parking facilities, the parking garage could be reduced in
size; and if parking garage is removed completely from the design, the hotel's height could be reduced by
approximately 25 feet.
The Architecture will be a modern form relevant in shape and materials. The podium personality reflects on the
architectural culture of Miami Beach.The podium architecture will be an expression of plaster,cast stone,exposed
steel columns and the use of wood to bring warmth and scalability to the facade. Large expanses of glass will be
framed by these solid honest walls of plaster to frame views inward to the lobby and meeting spaces and outward
to form the podium. The restaurants along the park will be a collection of street facing facades that offer
indoor/outdoor dining. Walls open up allowing the interior space to stretch out and become a part of this park like
atmosphere. Each restaurant will enjoy an individual architectural expression made from the same honest materials
of brick,steel,stone and glass to create a unique and diverse backdrop for the center of park.
The tower will rise up in a modern manner supporting the language of the city yet is refreshing and memorable.The
materials will be precast, brick, steel, window wall glass systems and curtain wall. The tower will celebrate the
architecture by sculpting the edges and top to create exciting forms and shapes.The infill skin will be precast,brick,
stone with exposed steel accents all woven together by the glass systems and colors.Lastly,the tower will illuminate
at night along its edges and will be an exciting addition to the dramatic skyline of Miami Beach.
On the following page is an indicative schedule for the initiation and completion of the Project.
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INDICATIVE SCHEDULE FOR INITIATION AND COMPLETION OF THE PROJECT
DATE TASK
2018 April 2 • Submission of Unsolicited Proposal to the City
April 2—May 1 • City Review of the Proposal
May 1 • City to Issue Notice for Alternative Proposals
June 1 • Alternative Proposals Due to City
July 1 • Selection and Awarding of Proposal
September 1 • Execution of Comprehensive Agreement Between the City and Team
(Master Development Agreement)
• Financial Closing of Pre-Development Phase by PLIC
• Capital commitment for permanent financing, subject to satisfaction of
customary funding conditions
October 1 • Selection of Hotel Operator
December 1 • Completion of Project Documents(see Section 4 of Term Sheet in Exhibit
A, including Booking Agreement)
2019 June-September • Completion of Design Build Contract
• Final Approval of Plans and Specifications
• Final GMP
• Final Permits
• Financial Closing of Permanent Financing
• Commencement of Construction
2022 August-November • Construction Completion
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D. Securing the Necessary Property Interests
The Project is to be located on City-owned property,and it is anticipated that the Project will be an enterprise of the
City.The bonds issued to finance the construction of the Project,as discussed more fully in Section E,will be secured
by a pledge of gross Project revenues, Project accounts and other accounts under the Trust Indenture, covenants
regarding the use and disposition of the Project,and collateral assignments of contracts.
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E. Project Financing
Convention center hotels have traditionally been owned by either 1) a private party (on land leased from a
governmental entity) and financed with a combination of debt and equity on a non-recourse basis to the
governmental entity, or 2) a governmental entity and financed by tax-exempt bonds on a recourse basis to that
entity. Our proposal is unique and affords the City of Miami Beach many benefits in that the City would retain
ownership, but have none of the risks associated with owning the Project.As an overview,the following are the key
highlights of our proposed structure:
• The City will own the Project;
• Subject to the City's approval,the bonds will be issued either by the City,a local Florida municipal issuer or
a national conduit issuer to fund the full amount of(i)construction costs,(ii)pre-opening expenses and(iii)
initial funding of certain reserve funds;
• The debt issuance will consist of multiple tranches of bonds:
,. in general,the Senior bonds can be thought of as traditional debt while the Subordinate bonds
essentially take the place of traditional equity funding;
• The Bonds will be secured by a pledge of gross Project revenues,Project accounts and other accounts under
the Trust Indenture,covenants regarding the use and disposition of the Project,and collateral assignments
of contracts;and
• There Is no governmental entity, including the City, guaranteeing the Bonds or the operations of the
Project.
PROJECT FINANCING AND FINANCIAL PLAN
The Comprehensive Agreement he "CA") between the City and the Team will obligate the Team to develop,
finance,construct and operate the Project.The City will own the Project and will borrow the necessary funds through
the issuance of tax-exempt and taxable revenue bonds,in one or more series.The bonds will be issued, by the City,
a local Florida municipal issuer or a national conduit issuer,subject to the City's approval.The debt will be secured
by appropriate security interests in the project agreements,and Project gross revenues from the operation of the
Project,but will be otherwise be fully non-recourse to the City.
The debt issuance will likely consist of multiple tranches of Bonds, including Senior and Subordinate Bonds (the
"Bonds"). Each series of Bonds will have varying rights in terms of priority of payment and bondholder rights.The
Bonds would be special limited obligations of the issuing entity(payable only from Project revenues),and the City
would not be obligated in any way with regard to the Bonds or the operations of the Project.
Furthermore, our proposal will include committed funding from PHC, which will purchase 100% of the Bonds at
financial close.PHC anticipates retaining a majority of the Bonds on a going-forward basis. PHC will actively manage
its investment and exposure including regular review of the performance of the Project;of Matthews Southwest as
developer and construction manager,as well as the chosen operator;and of the ongoing capital needs of the Project,
etc it is absolutely in PHC's financial interest to ensure the Project is built an time and on budget,and is operated
properly,given its long-term view on its investment.
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PHC will also have both an incentive and ability to deploy additional capital,if necessary,in the future to protect
the performance of the Project.Our proposed financing structure will create a Bondholder Representative role(PHC
would function as the Bondholder Representative)to make certain enforcement decisions for all bondholders. As
the Bondholder Representative,PHC would have substantial authority to ensure the timely construction and optimal
operation of the Project including authorization to, among other things,act on behalf of any other project-related
bondholders in the exercise of rights and remedies under any debt authorization documents and make additional
loans to the Hotel owner to address shortfalls in funds available for operation and maintenance of the Project.
Even though this is an all debt structure,the Subordinate Bonds will be structured such that they cannot default and
any unpaid Subordinate Bond interest simply accrues to the principal balance of the Subordinate Bonds and will be
paid whenever funds are available through the life of project.In this way,the Subordinate Bonds essentially take the
place of traditional equity in that they will be the last"bucket"that gets paid and do not have default rights due to
failure to make principal and/or interest payments.As a result,the Subordinate Bonds are an effective replacement
of equity in a tracitional model. The overall Bond structure also provides a committed financial partner that can
make decisions to protect its investment including the contribution of additional capital if needed.
Based on an estimated Project cost of$260 million, and a preliminary construction timeline of—26 months, PHC
proposes to finance 100%of the Project construction-related costs(plus 100%of related pre-development expenses
incurred by the development team, financing and issuance costs, capitalized interest, reserves for debt service,
working capital and pre-stabilization operating costs, and attorney fees and expenses) pursuant to a tax-exempt
bond issuance, consisting of multiple tranches of Senior and Subordinate bonds (collectively, the Bonds), with
maturity dates ranging from 30 to 40 years.The funding of initial working capital and certain reserves will require
additional capital in excess of the$260 million development budget and will likely require a small amount of taxable
bonds,with the vast majority of PHC's investment being structured as tax-exempt bonds.
As noted previously,the long-term,permanent financing Bonds will be issued,subject to the City's approval,by the
City,a local Florida municipal issuer or a national conduit issuer.Again, PHC will purchase 100%of the Bonds as of
financial close and will covenant to retain "bondholder control"with respect to all major financial, operational and
enforcement decisions.
In sum,the net proceeds of the Bonds purchased by PHC will be used to finance 100% of the costs of developing,
constructing,furnishing and equipping the Project.PHC shall be obligated to purchase additional subordinate bonds
to the extent necessary to cover any construction costs in excess of $260 million. The Developers shall be fully
responsible for completion of the Project by an agreed upon completion deadline(set forth in the Master CA to be
entered into with the City).
FINANCING BENEFITS
The salient structural benefits to the City of PHC's proposed financing plan are as follows:
• 100%privately financed non-recourse bond financing, meaning that the City is not obligated in any way to
make debt service payments on the Project Bonds, provide any credit enhancement or guarantee any of
the construction or operational costs;
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• Long-term capital structure, incorporating both construction and permanent financing for the Project,
would secure a 40-year Bond structure with no capital markets risk;and
• Simplicity, speed and certainty of financing execution through (a) a single-source of funding (PHC) with
immediately available capital and (b) eliminating third party lenders and equity investors and non-
alignment of traditional debt and equity economic interests.
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F. Proposed Fees, Lease Payments or Other Service Payments
As detailed in Section 0, our proposal does not require any user fees, lease payments, or other service payments
over the term of the fiiancing. Further, our proposal does not require any subsidy, upfront or on-going,to support
the transaction. Our financing structure would be special limited obligations of the issuing authority, payable only
from Project revenues, and the City would not be obligated in any way with regard to the Bonds or the operations
of the Project.
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G. Points of Contact
Michael Garcia, President of Matthews Southwest Hospitality and Ramiro Albarran, Managing Director of Preston
Hollow Capital will be the primary contacts n connection with the proposal. Contact information for both Mike and
Ramiro are provided below..
Michael Garcia Ramiro Albarran
President Managing Director and Head of Originations
Matthews Southwest Hospitality, LLC Preston Hollow Capital, LLC
32U W.Main Street 1717 Main Street,39th Floor
Lewisville,Texas 75057 Dallas,Texas 75201
972.221.1199(office) 214.389.0811(office)
972 896.2580(mobile) 203.822.3311(mobile)
email:mgarcia@matthewssouthwestcom email:ralbarran@phcllceom
Proposal
lg 1 Miami Beach Convention Center Hotel l Page 14
Exhibit 2
Public versus Private Ownership/Development Comparison
Privately Publicly
Owned & Financed Owned & Financed
Program Driven by site size, height limitations, Same
etc.
Owned by City, once debt repaid City can
Ownership Owned/leased by private Hotel Owner sell or continue to operate hotel
By public body, with a Bond Holder
Governance By private Hotel Owner representative participation
100% bond debt, typically 30-35-year
Sources of Typically, 50-60% third-party debt and repayment. Some municipalities "credit
Capital 40-50% equity enhance" bonds, but others do not. Miami
Beach would not
Development Risk Third-party developer assumes all Same
project delivery risk
Land Transferred to Hotel Owner or leased for City retains ownership
99 years
Typically, a land lease payment the Can structure a similar payment to the City,
Payment to City greater of a fixed amount and a percent with amounts paid to City after annual debt
of gross revenue (target 4%). service
Risk of Operating
Loss/debt service Risk on private Owner Risk on bond holders
shortfalls
Escrowed to repay bonds early, thereafter
Hotel Profits Retained by private owner in perpetuity profits to City
Land conveyed or leased over 10 years No referendum required. Charter Section
Referendumrequires 60% voter approval 1.03(f) requires 4/7 Planning Board and 6/7
City Commission
Convention hotels are typically brand
Hotel Manager managed, but can be managed by Same
qualified third parties
Hotel Brand Can be any convention hotel brand Same
Room Block Hotel contractually obligated to provide Same
Agreement rooms to convention center events
Page 1410 of 1842
REQUEST FOR PROPOSALS (RFP)
FOR THE DEVELOPMENT OF A CONVENTION HOTEL ADJACENT TO THE MIAMI BEACH
CONVENTION CENTER
2018-238-KB
RFP ISSUANCE DATE: MAY 17, 2018
PROPOSALS DUE: JUNE 15, 2018 @ 3:00 PM
ISSUED BY:
KRISTY BADA, CONTRACTING OFFICER III
PROCUREMENT DEPARTMENT
1755 Meridian Avenue, 3'd Floor, Miami Beach, FL 33139
305.673.7000 x 7490 I Kristybada@miamibeachfl.gov I www.miamibeachfl.gov
Page 1411 of 1842
TABLE OF CONTENTS
SOLICITATION SECTIONS: PAGE
0100 NOT UTILIZED N/A
0200 INSTRUCTIONS TO PROPOSERS & GENERAL CONDITIONS 3
0300 PROPOSAL SUBMITTAL INSTRUCTIONS & FORMAT 13
0400 PROPOSAL EVALUATION 18
APPENDICES: PAGE
APPENDIX A PROPOSAL CERTIFICATION, QUESTIONNAIRE AND AFFIDAVITS 20
APPENDIX B "NO PROPOSAL" FORM 27
APPENDIX C MINIMUM REQUIREMENTS & SPECIFICATIONS 29
APPENDIX D PREVAILING WAGE & LOCAL WORKFORCE
PARTICIPATION PROGRAM 41
APPENDIX E RESILIENCY STANDARDS 47
APPENDIX F SITE DIAGRAM/SURVEY (OPTION A AND OPTION B) 49
APPENDIX G SITE DIAGRAM/ SURVEY(OPTION C) 51
APPENDIX H MIAMI BEACH STR MARKET DATA 53
APPENDIX I NOT USED 59
APPENDIX J PROPOSED HOTEL PROGRAM AREAS FORM 61
APPENDIX K PROPOSED THEATER PROGRAM AREAS FORM 63
APPENDIX L DEVELOPMENT AND GROUND LEASE AGREEMENT 65
RFP 2018-238-KB
2
Page 1412 of 1842
SECTION 0200 INSTRUCTIONS TO PROPOSERS & GENERAL CONDITIONS
1. GENERAL. All documents released in connection with this solicitation, including all appendixes and addenda,
whether included herein or released under separate cover, comprise the solicitation, and are complementary to one
another and together establish the complete terms, conditions and obligations of the proposers submitting a
response to the RFP ("Proposers") and, subsequently, the successful Proposer, if this RFP results in an award. The
successful Proposer that enters into a Lease or P3/Management Agreement (depending on Option selected) with the City
pursuant to this RFP shall be referred to herein as the""Developer"
The City utilizes PublicPurchase (www.publicpurchase.com) for automatic notification of competitive solicitation
opportunities and document fulfillment, including the issuance of any addendum to this RFP. Any prospective
Proposer who has received this RFP by any means other than through PublicPurchase must register immediately
with PublicPurchase to assure it receives any addendum issued to this RFP. Failure to receive an addendum
may result in disqualification of proposal submitted.
2. PURPOSE.
This Request for Proposals (RFP) is issued by the City of Miami Beach, Florida (the "City") as the means for
prospective Proposers to submit their qualifications, approach, conceptual design, and financial and other terms for
the City's consideration, with respect to the development, financing, design, construction, and operation of a full-
service convention hotel, and related improvements ("Hotel"), including the design, construction and operation of an
enclosed overhead pedestrian walkway connecting the Hotel and the Miami Beach Convention Center("Skybridge"),
as each is more fully described in Section 3 below(collectively, the "Hotel Project").
The City seeks proposals for separate, alternative options for the Hotel Project, namely:
Option A, for a Development and Ground Lease Agreement of the 2.55 acre City-owned property located
adjacent to the Miami Beach Convention Center ("MBCC"), as depicted in Appendix F (the "Hotel Site 1"), for the
Developer to develop, design, construct, finance, operate and maintain the Hotel Project at Hotel Site 1, with 550 —
800 separately keyed guest rooms(with the intent of achieving the maximum 800 rooms to the extent possible); or
Option B, for a City-owned Hotel Project at Hotel Site 1, with Hotel Site 1 to remain owned by the City, and
Developer to develop, design, construct, finance, operate, and maintain the Hotel Project on the City's behalf
pursuant to appropriate agreements (collectively, the "P3/Management Agreement"), with 550 — 800 separately
keyed guest rooms (with the intent of achieving the maximum 800 rooms to the extent possible) with all financing at
the Developer's sole risk on a non-recourse basis; or
Option C, for a Development and Ground Lease Agreement of the approximately 6.39 acre site depicted in
Appendix G, which includes the area identified under Hotel Site 1, as well as the area where the Fillmore Miami
Beach at the Jackie Gleason Theater (the "Gleason Theater") is currently located ("Hotel Site 2"), with up to 1,100
separately keyed guest rooms. The project under Option C must include, as part of the Hotel Project, either the
renovation of the Gleason Theater, or the construction of a new performing ads center("New Gleason Theater") with
approximately 2,460 seats (the equivalent of the current number of seats at the Gleason Theater). Under this Option
C, the City will consider proposals that include the management and operation of the Gleason Theater (or New
Gleason Theater) following the expiration of the City's current Management Agreement, as amended, with Live
Nation Worldwide, Inc. ("Live Nation") for the Gleason Theater. Unless otherwise mutually agreed to with Live
Nation, the Lease under this Option C shall be effective following the expiration of the Live Nation agreement on
August 31, 2022, and no construction or renovation work may take place at the Gleason Theater except as provided
in the City's agreement with Live Nation, as amended.
RFP 2018-238-KB Page 1413 of 1842
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THE MINIMUM REQUIREMENTS AND DETAILED SPECIFICATIONS FOR THE HOTEL PROJECT, AND EACH OPTION
NOTED ABOVE, ARE INCLUDED IN APPENDIX C. ANY PROPOSAL THAT DOES NOT COMPLY WITH THE MINIMUM
REQUIREMENTS SHALL BE DEEMED NON-RESPONSIVE AND SHALL NOT BE CONSIDERED.
3. Prevailing Wage Rates: Section 31-27 of the City Code requires that in all non-federally funded construction
contracts in excess of one million dollars to which the City of Miami Beach is a party, the rate of wages and fringe
benefits, or cash equivalent, for all laborers, mechanics and apprentices employed by any contractor or
subcontractor on the work covered by the contract, shall not be less than the prevailing rate of wages and fringe
benefit payments or cash equivalence for similar skills or classifications of work, as established by the Federal
Register, in the City of Miami Beach, Florida. See Appendix D.
4. Local Workforce Participation Program: Section 31-40 of the City Code requires the demonstration of
reasonable efforts to promote employment opportunities for local Miami-Dade County residents and seek to achieve
a project goal of having thirty percent (30%) of all construction labor hours performed by Miami-Dade County and
City of Miami Beach residents. See Appendix D.
4. ANTICIPATED RFP TIMETABLE.The tentative schedule for this solicitation is as follows:
RFP Issued May 17, 2018
Pre-Proposal Meeting TBD (anticipated June, 2018)
Deadline for Receipt of Questions TBD (anticipated July, 2018)
Responses Due TBD (anticipated July, 2018)
Evaluation Committee Review TBD (anticipated for August, 2018)
Proposer Presentations TBD (anticipated for August, 2018)
Tentative Commission Approval Authorizing TBD September, 2018
Negotiations
Contract Negotiations* Following Commission Approval
*Final negotiated contract shall require approval by the City Commission.
5. PROCUREMENT CONTACT. Any questions or clarifications concerning this solicitation shall be submitted to the
Procurement Contact noted below:
Procurement Contact Telephone'. Email:
Krist Bada 305-673-7490 kris bada• miamibeachfl.gov
dditionally, the City Clerk is to be copied on all communications via e-mail at: RafaelGranado• miamibeachfl..ov;
or via facsimile: 786-394-4188.
RFP 2018-238-KB 4
Page 1414 of 1842
The Proposal title/number shall be referenced on all correspondence. All questions or requests for clarification must
be received no later than ten (10) calendar days prior to the date proposals are due as scheduled in Section 0200-3.
All responses to questionslclarificalions will be sent to all Proposers in the form of an addendum.
6. PRE-PROPOSAL CONFERENCE OR SITE VISIT(S). If deemed necessary by the City, a pre-proposal
conference or site visit will be held as scheduled (see Anticipated RFP Timetable section, above) at the following
address:
City of Miami Beach City Hall
Commission Chambers
1700 Convention Center Drive; 3RD Floor
Miami Beach, Florida 33139
Attendance (in person or via telephone) is encouraged and recommended as a source of information, but is not
mandatory. Proposers interested in participating in the Pre-Proposal Conference via telephone must follow these
steps:
(1) Dial the TELEPHONE NUMBER: 1-888-270-9936 (Toll-free North America)
(2) Enter the MEETING NUMBER: 5804578
Proposers who are interested in participating via telephone should send an e-mail to the contact person listed in this
RFP expressing their intent to participate via telephone.
7. PRE-PROPOSAL INTERPRETATIONS. Oral information or responses to questions received by prospective
Proposers are not binding on the City and will be without legal effect, including any oral information received at pre-
proposal conference or site visit(s). The City, by means of Addenda, will issue interpretations or written clarifications
considered necessary by the City in response to questions. Only questions answered by written Addenda will be
binding and may supersede terms noted in this solicitation. Addendums will be released through PublicPurchase.
Any Proposer who has received this RFP by any means other than through PublicPurchase must register
immediately with PublicPurchase to assure it receives any Addendum issued to this RFP. Failure to receive an
Addendum may result in disqualification of the Proposal. Written questions should be received no later than the
deadline for questions outlined in the Anticipated RFP Timetable section.
8. CONE OF SILENCE. This RFP is subject to, and all proposers are expected to be or become familiar with, the
City's Cone of Silence Requirements, as codified in Section 2-486 of the City Code. Proposers shall be solely
responsible for ensuring that all applicable provisions of the City's Cone of Silence are complied with, and shall be
subject to any and all sanctions, as prescribed therein, including rendering their response voidable, in the event of
such non-compliance. Communications regarding this solicitation are to be submitted in writing to the Procurement
Contact named herein,with a copy to the City Clerk at rafaelgranado(cilmiamibeachfl.gov.
9. SPECIAL NOTICES. You are hereby advised that this solicitation is subject to the following
ordinances/resolutions, which may be found on the City Of Miami Beach website:
httpalweb.miamibeachfl.govlprocu rementlscroll.8spx?id=79113
• CONE OF SILENCE CITY CODE SECTION 2-488
• PROTEST PROCEDURES CITY CODE SECTION 2-371
• DEBARMENT PROCEEDINGS CITY CODE SECTIONS 2-397 THROUGH 2-485.3
• LOBBYIST REGISTRATION AND DISCLOSURE OF FEES CITY CODE SECTIONS 2-481 THROUGH 2-406
• CAMPAIGN CONTRIBUTIONS BY VENDORS CITY CODE SECTION 2487
• CAMPAIGN CONTRIBUTIONS BY LOBBYISTS ON PROCUREMENT ISSUES CITY CODE SECTION 2488
• REQUIREMENT FOR CITY CONTRACTORS TO PROVIDE EQUAL BENEFITS FOR CITY CODE SECTION 2-373
DOMESTIC PARTNERS
REP 2018-238-KB 5
Page 1415 of 1842
ART IN PUBLIC PLACES REQUIREMENTS CITY CODE SECTIONS 82-536 THROUGH 82-588
• PREFERENCE FOR FLORIDA SMALL BUSINESSES OWNED AND CONTROLLED BY CITY CODE SECTION 2-374
VETERANS AND TO STATE-CERTIFIED SERVICE-DISABLED VETERAN BUSINESS
ENTERPRISES
• FALSE CLAIMS ORDINANCE CITY CODE SECTION 70-300
• ACCEPTANCE OF GIFTS,FAVORS&SERVICES CITY CODE SECTION 2-449
• MORATORIUM ON TRAVEL TO AND THE PURCHASE OF GOODS OR City Resolution No.2016-29375
SERVICES FROM NORTH CAROLINA AND MISSISSIPPI
10. PUBLIC ENTITY CRIME. A person or affiliate who has been placed on the convicted vendor list following a
conviction for public entity crimes may not submit a proposal on a contract to provide any goods or services to a
public entity, may not submit a proposal on a contract with a public entity for the construction or repair of a public
building or public work, may not submit a proposal on leases of real property to public entity, may not be awarded or
perform work as a contractor, supplier, sub-contractor, or consultant under a contract with a public entity, and may
not transact business with any public entity in excess of the threshold amount provided in Sec. 287.017, for
CATEGORY TWO for a period of 36 months from the date of being placed on the convicted vendor list.
11. COMPLIANCE WITH THE CITY'S LOBBYIST LAWS. This RFP is subject to, and all Proposers are expected to
be or become familiar with, all City lobbyist laws. Proposers shall be solely responsible for ensuring that all City
lobbyist laws are complied with, and shall be subject to any and all sanctions, as prescribed therein, including,
without limitation, disqualification of their responses, in the event of such non-compliance.
12. DEBARMENT ORDINANCE: This RFP is subject to, and all proposers are expected to be or become familiar
with, the City's Debarment Ordinance as codified in Sections 2-397 through 2-406 of the City Code.
13. COMPLIANCE WITH THE CITY'S CAMPAIGN FINANCE REFORM LAWS. This RFP is subject to, and all
Proposers are expected to be or become familiar with, the City's Campaign Finance Reform laws, as codified in
Sections 2-487 through 2-490 of the City Code. Proposers shall be solely responsible for ensuring that all applicable
provisions of the City's Campaign Finance Reform laws are complied with, and shall be subject to any and all
sanctions, as prescribed therein, including disqualification of their responses, in the event of such non-compliance.
14. CODE OF BUSINESS ETHICS. Pursuant to City Resolution No.2000-23879, the Proposer shall adopt a Code of
Business Ethics ("Code') and submit that Code to the Procurement Division with its response or within five (5) days
upon receipt of request. The Code shall, at a minimum, require the Proposer, to comply with all applicable
governmental rules and regulations including, among others, the conflict of interest, lobbying and ethics provision of
the City of Miami Beach and Miami Dade County.
15. AMERICANS WITH DISABILITIES ACT (ADA). Call 305-673-7490 to request material in accessible format; sign
language interpreters (five (5) days in advance when possible), or information on access for persons with disabilities.
For more information on ADA compliance, please call the Public Works Department, at 305-673- 7000, Extension
2984.
16. POSTPONEMENT OF DUE DATE FOR RECEIPT OF PROPOSALS. The City reserves the right to postpone
the deadline for submittal of proposals and will make a reasonable effort to give at least three (3) calendar days
written notice of any such postponement to all prospective Proposers through PublicPurchase.
17. PROTESTS. Proposers that are not selected may protest any recommendation for selection of award in
accordance with the proceedings established pursuant to the City's bid protest procedures, as codified in Sections 2-
REP 201 8-238-KB 6
Page 1416 of 1842
370 and 2-371 of the City Code (the City's Bid Protest Ordinance). Protest not timely made pursuant to the
requirements of the City's Bid Protest Ordinance shall be barred.
18. JOINT VENTURES I SINGLE PURPOSE ENTITY.
a. Joint Ventures Permitted for Proposal Submissions. For purposes of the Proposal submission
and evaluation, a Proposer may form a joint venture entity and the owner/members of the joint venture shall be
deemed to be the Proposer (i.e. the joint venture members with an ownership interest in the joint venture may meet
the qualification requirement collectively). If the Proposer is a joint venture, the joint venture's Proposal
shall contain an executed Proposal Certification Questionnaire and Requirements Affidavit from each of the
owner/members of the joint venture participating in the Proposal. If awarded the RFP, the ownership interests of
each member of the joint venture entity shall be disclosed, as provided for in the Lease or P3/Management
Agreement.
b. Successful Proposer Required to Create Single Purpose Entity To Serve as Contract Entity.
The successful Proposer shall be required to, prior to execution of the Lease or P3/Management Agreement, create
a single purpose entity (such as a limited liability company) to serve as the entity that enters into the Lease or
P3/Management Agreement with the City, and shall be the vehicle through which the Developer raises the
capital/equity commitments from investors for the Hotel Project, subject to the City's rights in and to the Hotel
Project. If the successful Proposer is a joint venture entity, and the joint venture entity is not a single purpose entity,
the joint venture shall be required to create a single purpose entity to serve as the entity that enters into the Lease or
P3/Management Agreement, as applicable.
19.VETERAN BUSINESS ENTERPRISES PREFERENCE. Pursuant to City Code Section 2-374, the City shall give
a preference to a responsive and responsible Proposer which is a small business concern owned and controlled by a
veteran(s) or which is a service-disabled veteran business enterprise, and which is within five percent (5%) of the
lowest responsive, responsible proposer, by providing such proposer an opportunity of providing said goods or
contractual services for the lowest responsive proposal amount (or in this RFP, the highest proposal amount).
Whenever, as a result of the foregoing preference, the adjusted prices of two (2) or more proposers which are a
small business concern owned and controlled by a veteran(s) or a service-disabled veteran business enterprise
constitute the lowest proposal pursuant to an RFP or oral or written request for quotation, and such proposals are
responsive, responsible and otherwise equal with respect to quality and service, then the award shall be made to the
service-disabled veteran business enterprise.
20. DETERMINATION OF AWARD. The final ranking results of Step 1 & 2 outlined in Section 0400, Evaluation of
Proposals, will be considered by the City Manager who may recommend to the City Commission the Proposer(s)
that the City Manager deems to be in the best interest of the City, or the City Manager may recommend rejection of
all proposals. The City Manager's recommendation need not be consistent with the scoring results identified in this
RFP, and takes into consideration Miami Beach City Code Section 2-369, including the following considerations:
(1)The ability, capacity and skill of the Proposer to perform the contract.
(2) Whether the Proposer can perform the contract within the time specified, without delay or
interference.
(3)The character, integrity, reputation,judgment, experience and efficiency of the Proposer.
(4) The quality of performance of previous contracts.
(5)The previous and existing compliance by the Proposer with laws and ordinances relating to the
contract.
The City Commission shall consider the City Manager's recommendation and may approve such recommendation.
RFP 2018-238-KB 7
Page 1417 of 1842
The City Commission may also, at its option, reject the City Manager's recommendation and select another Proposal
or Proposals which it deems to be in the best interest of the City, or it may also reject all Proposals.
21. NEGOTIATIONS. Following selection, the City reserves the right to enter into further negotiations with the
selected Proposer. Notwithstanding the preceding, the City is in no way obligated to enter into a contract with the
selected Proposer in the event the parties are unable to negotiate a contract. It is also understood and
acknowledged by Proposers that no property, contract or legal rights of any kind shall be created at any time until
and unless a contract has been agreed to; approved by the City Commission; and executed by the parties.
22. POSTPONEMENT/CANCELLATION/ACCEPTANCE/REJECTION. The City may, at its sole and absolute
discretion, reject any and all, or parts of any and all, responses; re-advertise this RFP; postpone or cancel, at any
time, this RFP process; or waive any irregularities in this RFP, or in any responses received as a result of this RFP.
Reasonable efforts will be made to either award the proposer the contract or reject all proposals within one-hundred
twenty (120) calendar days after proposal opening date. In accordance with Section 47 below, a Proposer may
withdraw its proposal after expiration of one hundred twenty (120) calendar days from the date of proposal opening,
by delivering written notice of withdrawal to the Procurement Department as provided in Section 47 below.
23. PROPOSER'S RESPONSIBILITY. Before submitting a response, each Proposer shall be solely responsible for
making any and all investigations, evaluations, and examinations, as it deems necessary, to ascertain all conditions
and requirements affecting the full performance of the contract. Ignorance of such conditions and requirements,
and/or failure to make such evaluations, Investigations, and examinations, will not relieve the Proposer from any
obligation to comply with every detail and with all provisions and requirements of the contract, and will not be
accepted as a basis for any subsequent claim whatsoever for any monetary consideration on the part of the
Proposer.
24. COSTS INCURRED BY PROPOSERS.All expenses involved with the preparation and submission of Proposals,
or any work performed in connection therewith, shall be the sole responsibility (and shall be at the sole cost and
expense)of the Proposer, and shall not be reimbursed by the City.
25. RELATIONSHIP TO THE CITY. It is the intent of the City, and Proposers hereby acknowledge and agree, that
the successful Proposer is considered to be an independent contractor, and that neither the Proposer, nor the
Proposer's employees, agents, and/or contractors, shall, under any circumstances, be considered employees or
agents of the City.
26. OCCUPATIONAL HEALTH AND SAFETY. In compliance with Chapter 442, Florida Statutes, any toxic
substance listed in Section 38F-41.03 of the Florida Administrative Code delivered as a result of this proposal must
be accompanied by a Material Safety Data Sheet(MSDS)which may be obtained from the manufacturer.
27. ENVIRONMENTAL REGULATIONS. The City reserves the right to consider a Proposer's history of citations
and/or violations of environmental regulations in investigating a Proposer's responsibility, and further reserves the
right to declare a Proposer not responsible if the history of violations warrant such determination in the opinion of the
City. Proposer shall submit with its proposal, a complete history of all citations and/or violations, notices and
dispositions thereof. The non-submission of any such documentation shall be deemed to be an affirmation by the
Proposer that there are no citations or violations. Proposer shall notify the City immediately of notice of any citation
or violation which proposer may receive after the proposal opening date and during the time of performance of any
contract awarded to it.
28.TAXES.The City of Miami Beach is exempt from all Federal Excise and State taxes.
RFP 2018-238-KB 8
Page 1418 of 1842
29. MISTAKES. Proposers are expected to examine the terms, conditions, specifications, delivery schedules,
proposed pricing, and all instructions pertaining to the goods and services relative to this RFP. Failure to do so will
be at the Proposers risk and may result in the Proposal being non-responsive.
30. PAYMENT. Payment will be made by the City after the goods or services have been received, inspected, and
found to comply with contract, specifications, free of damage or defect, and are properly invoiced. Invoices must be
consistent with Purchase Order format.
31. COPYRIGHT, PATENTS 8 ROYALTIES. Proposer shall indemnify and save harmless the City of Miami Beach,
Florida, and its officers, employees, contractors, and/or agents, from liability of any nature or kind, including cost and
expenses for, or on account of, any copyrighted, patented, or unpatented invention, process, or article manufactured
or used in the performance of the contract, including its use by the City of Miami Beach, Florida. If the Proposer
uses any design, device or materials covered by letters, patent, or copyright, it is mutually understood and agreed,
without exception, that the proposal prices shall include all royalties or cost arising from the use of such design,
device, or materials in any way involved in the work.
32. DEFAULT: Failure or refusal of the successful Proposer to execute a contract following approval of such
contract by the City Commission, or untimely withdrawal of a proposal response before such award is made and
approved, may result in a claim for damages by the City, and may be grounds for removing the Proposer from the
City's vendor list.
33. MANNER OF PERFORMANCE. Proposer agrees to perform its duties and obligations in a professional manner
and in accordance with all applicable Local, State, County, and Federal laws, rules, regulations and codes. Lack of
knowledge or ignorance by the Proposer with/of applicable laws will in no way be a cause for relief from
responsibility. Proposer agrees that the work and services provided shall be provided by employees that are
educated, trained, experienced, certified, and licensed in all areas encompassed within their designated duties.
Proposer agrees to furnish to the City any and all documentation, certification, authorization, license, permit, or
registration currently required by applicable laws, rules, and regulations. Proposer further certifies that it and its
employees will keep all licenses, permits, registrations, authorizations, or certifications required by applicable laws or
regulations in full force and effect during the term of this contract. Failure of Proposer to comply with this paragraph
shall constitute a material breach of this contract.
Where Developer is required to enter or go on to City of Miami Beach property to deliver materials or perform work
or services as a result of any contract resulting from this solicitation, the Developer will assume the full duty,
obligation and expense of obtaining all necessary licenses, permits, and insurance, and assure all work complies
with all applicable laws. The Developer shall be liable for any damages or loss to the City occasioned by negligence
of the Developer , or its officers, employees, contractors, and/or agents, for failure to comply with applicable laws.
34. SPECIAL CONDITIONS. Any and all Special Conditions that may vary from these General Terms and
Conditions shall have precedence.
35. NON-DISCRIMINATION. The Proposer certifies that it is in compliance with the non-discrimination clause
contained in Section 202, Executive Order 11246, as amended by Executive Order 11375, relative to equal
employment opportunity for all persons without regard to race, color, religion, sex or national origin. In accordance
with the City's Human Rights Ordinance, codified in Chapter 62 of the City Code, Proposer shall prohibit
discrimination by reason of race, color, national origin, religion, sex, intersexuality, gender identity, sexual
orientation, disability, marital and familial status, age, ancestry, height, weight, domestic partner status, labor
RFP 2018-238-KB 9
Page 1419 of 1842
organization membership, familial situation, and political affiliation.
36. DEMONSTRATION OF COMPETENCY. The City may consider any evidence available regarding the financial,
technical, and other qualifications and abilities of a Proposer, including past performance (experience) in making an
award that is in the best interest of the City, including:
A. Pre-award inspection of the Proposer's facility maybe made prior to the award of contract.
B. Proposals will only be considered from firms which are regularly engaged in the business of providing the
goods and/or services as described in this solicitation.
C. Proposers must be able to demonstrate a good record of performance for a reasonable period of time, and
have sufficient financial capacity, equipment, and organization to ensure that they can satisfactorily perform the
services if awarded a contract under the terms and conditions of this solicitation.
D. The terms "equipment and organization", as used herein shall, be construed to mean a fully equipped and
well established company in line with the best business practices in the industry, and as determined by the City.
E. The City may consider any evidence available regarding the financial, technical, and other qualifications and
abilities of a Proposer, including past performance (experience), in making an award that is in the best interest of the
City.
F. The City may require Proposer to show proof that it has been designated as authorized representatives of a
manufacturer or supplier., which is the actual source of supply. In these instances, the City may also require material
information from the source of supply regarding the quality, packaging, and characteristics of the products to be
supply to the City.
37. ASSIGNMENT. The successful Proposer shall not assign, transfer, convey, sublet or otherwise dispose of the
contract, including any or all of its right, title or interest therein, or his/her or its power to execute such contract, to
any person, company or corporation, without the prior written consent of the City.
38. LAWS, PERMITS AND REGULATIONS. The Proposer shall obtain and pay for all licenses, permits, and
inspection fees required to complete the work and shall comply with all applicable laws.
39. OPTIONAL CONTRACT USAGE. When the successful Proposer is in agreement, other units of government or
non-profit agencies may participate in purchases pursuant to the award of this contract at the option of the unit of
government or non-profit agency.
40. VOLUME OF WORK. To the extent applicable, it is the intent of the City to purchase the goods and services
specifically listed in this solicitation. However, the City reserves the right to purchase any goods or services awarded
from State or other governmental contracts, or on an as-needed basis through the City's spot market purchase
provisions.
41. DISPUTES. In the event of a conflict between the documents, the order of priority of the documents shall be
as follows:
A. Any contract or agreement resulting from the award of this solicitation; then
B. Addendum issued for this solicitation, with the latest Addendum taking precedence;then
C. The solicitation; then
D. The Proposer's proposal in response to the solicitation.
42. INDEMNIFICATION. The Developer shall indemnify and hold harmless the City and its officers, employees,
agents and instrumentalities from any and all liability, losses or damages, including attorney's fees and costs of
defense, which the City or its officers, employees, agents or instrumentalities may incur as a result of claims,
demands, suits, causes of actions or proceedings of any kind or nature arising out of, relating to or resulting from the
RFP 2018-238-KB 10
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performance of the agreement by the Developer or its employees, agents, servants, partners, principals or
subcontractors. The Developer shall pay all claims and losses in connection therewith, and shall investigate and
defend all claims, suits or actions of any kind or nature in the name of the City, where applicable, including appellate
proceedings, and shall pay all costs,judgments, and attorney's fees which may be incurred thereon. The Developer
expressly understands and agrees that any insurance protection required by any agreement with the City or
otherwise provided by the Developer shall in no way limit the responsibility to indemnify, keep and save harmless
and defend the City or its officers, employees, agents and instrumentalities as herein provided. The above
indemnification provisions shall survive the expiration or termination of this Agreement.
43. NOT USED.
44. FLORIDA PUBLIC RECORDS LAW. Proposers are hereby notified that all Proposals including, without
limitation, any and all information and documentation submitted therewith, are exempt from public records
requirements under Section 119.07(1), Florida Statutes, and s. 24(a), Art. 1 of the State Constitution until such time
as the City provides notice of an intended decision or until thirty (30) days after opening of the proposals, whichever
is earlier. Additionally, Developer agrees to be in full compliance with Florida Statute 119.0701 including, but not
limited to, agreement to (a) Keep and maintain public records that ordinarily and necessarily would be required by
the public agency in order to perform the services; (b) provide the public with access to public records on the same
terms and conditions that the public agency would provide the records and at a cost that does not exceed the cost
provided in this chapter or as otherwise provided by law; (c) Ensure that public records that are exempt or
confidential and exempt from public records disclosure requirements are not disclosed except as authorized by law;
(d) Meet all requirements for retaining public records and transfer, at no cost, to the public agency all public records
in possession of the Developer upon termination of the contract and destroy any duplicate public records that are
exempt or confidential and exempt from public records disclosure requirements. All records stored electronically
must be provided to the public agency in a format that is compatible with the information technology systems of the
public agency.
45. OBSERVANCE OF LAWS. Proposers are expected to be familiar with, and comply with, all Federal, State,
County, and City laws, ordinances, codes, rules and regulations, and all orders and decrees of bodies or tribunals
having jurisdiction or authority which, in any manner, may affect the scope of services and/or project contemplated
by this RFP (including, without limitation, the Americans with Disabilities Act, Title VII of the Civil Rights Act, the
EEOC Uniform Guidelines, and all EEO regulations and guidelines). Ignorance of the law(s) on the part of the
Proposer will in no way relieve it from responsibility for compliance.
46. CONFLICT OF INTEREST. All Proposers must disclose, in their Proposal, the name(s) of any officer, director,
agent, or immediate family member(spouse, parent, sibling, and child)who is also an employee of the City of Miami
Beach. Further, all Proposers must disclose the name of any City employee who owns, either directly or indirectly,
an interest of ten (10%)percent or more in the Proposer entity or any of its affiliates.
47. MODIFICATION/WITHDRAWALS OF PROPOSALS. A Proposer may submit a modified Proposal to replace all
or any portion of a previously submitted Proposal up until the Proposal due date and time. Modifications received
after the Proposal due date and time will not be considered. Proposals shall be irrevocable until contract award
unless withdrawn in writing prior to the Proposal due date, or after expiration of 120 calendar days from the opening
of Proposals without a contract award. Letters of withdrawal received after the Proposal due date and before said
expiration date, and letters of withdrawal received after contract award will not be considered.
48. EXCEPTIONS TO RFP. Proposers must clearly indicate any exceptions they wish to take to any of the
terms in this RFP, and outline what, if any, alternative is being offered. All exceptions and alternatives shall
RFP 2018-238-KB 11
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be included and clearly delineated, in writing, in the Proposal. The City, at its sole and absolute discretion,
may accept or reject any or all exceptions and alternatives. In cases in which exceptions and alternatives
are rejected, the City shall require the Proposer to comply with the particular term and/or condition of the
RFP to which Proposer took exception to (as said term and/or condition was originally set forth in the RFP
and any exhibits or Addenda thereto).
49. ACCEPTANCE OF GIFTS, FAVORS, SERVICES. Proposers shall not offer any gratuities, favors, or anything of
monetary value to any official, employee, or agent of the City, for the purpose of influencing consideration of this
Proposal. Pursuant to Sec. 2-449 of the City Code, no officer or employee of the City shall accept any gift, favor or
service that might reasonably tend improperly to influence him in the discharge of his official duties.
50. SUPPLEMENTAL INFORMATION. City reserves the right to request supplemental information from Proposers
at any time during the RFP solicitation process, unless otherwise noted herein.
Balance of Page Intentionally Left Blank
RFP 2018-23B-KB 12
Page 1422 of 1842
SECTION 0300 PROPOSAL SUBMITTAL INSTRUCTIONS AND FORMAT
1. SEALED RESPONSES. One original Proposal (preferably in 3-ring binder) must be submitted in
an opaque, sealed envelope or container on or before the due date established for the receipt of
proposals. Additionally, ten (10) bound copies and one (1) electronic format (CD or USB format)
are to be submitted. The following information should be clearly marked on the face of the
envelope or container in which the proposal is submitted: solicitation number, solicitation title,
Proposer name, Proposer return address. Proposals received electronically, either through email or
facsimile, are not acceptable and will be rejected. If proposers submit a Proposal for more than
one Option, Proposers must submit a separate Proposal (with hard copies and electronic
copies as provided above, and in the format as set forth herein)for each Option.
2. LATE PROPOSALS. Proposals are to be received on or before the due date established herein
for the receipt of Proposals. Any Proposal received after the deadline established for receipt
of proposals will be considered late and not be accepted and will be returned to Proposer
unopened.The City does not accept responsibility for any delays, natural or otherwise.
3. PROPOSAL FORMAT. In order to maintain comparability, facilitate the review process and
assist the Evaluation Committee in review of proposals, it is strongly recommended that proposals
be organized and tabbed in accordance with the sections and manner specified below. Hard copy
submittal should be tabbed as enumerated below and contain a table of contents with page
references. Electronic copies should also be tabbed and contain a table of contents with page
references.
As indicated in Section 0200, Sub-section 2, a Proposer submitting a proposal for more than one
Option shall submit, in accordance with the proposal format instructions stipulated herein,
an individual and separate proposal for each Option.
Cover Letter, Proposal Certification &Organizational Information
1.1 Cover Letter and Table of Contents. The cover letter must indicate Proposer and Proposer
Primary Contact for the purposes of this solicitation.
1.2 Proposal Certification, Questionnaire & Requirements Affidavit (Appendix A). Attach
Appendix A fully completed and executed.
1.3 Organizational Chart: An organizational chart depicting the structure and lines of authority and
communication. Include a narrative that describes the intended structure regarding project management,
accountability and compliance with the terms of the RFP.
1.4 Key Personnel: Identify all key personnel who will be assigned to the Project and their intended roles
and responsibilities. Indicate and provide contact information for the primary individuals leading this
process and those authorized to commit for the Proposer.
1.5 Other Team Members: Provide a list of any other key team members, such as additional financing
resources, construction, other design team members, etc. For each team member provide a description
of their role, relevant firm qualifications and experience,and resumes of key personnel.
RFP 2018-238-KB 13
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Minimum Requirements and Required Forms
2.1 Minimum Qualifications Requirements. Submit verifiable information documenting compliance with
the minimum qualifications requirements established in Appendix C, Minimum Requirements and
Specifications.
2.2 Required Forms.
a. Local Workforce Participation Program Responsible Contractor Affidavit Form Part A —
Commitment To Promote Local Workforce Participation(Appendix D); and
b. Local Workforce Participation Program Responsible Contractor Affidavit Form Part B —
Commitment To Promote Local Workforce Participation (Appendix D).
img
aim-Proposer Qualifications _ -I
Summarize the Proposer's experience with developing and financing hotel projects, including:
3.1 Company Information: Provide background information, including company history,years in business,
number of employees, and any other information communicating capabilities and experience.
(recommend 1 page)
3.2 Relevant Experience: Summarize projects where the Proposer has developed and financed hotels or
convention hotels of similar size and scope as that described in this RFP. (Recommend 1 page per
project). One of the projects must be a hotel project with an overall development budget of at least
$250 million, which the Proposer developed and financed within the last twenty(20) years. All projects
listed must include:
a. Project name, number of rooms, square feet of meeting and ballroom space, location and images
b. Design team name(s)and roles(designer, construction documentation, interiors,etc.)
c. Year project opened (or"in Design"or"Under Construction")
d. Summary of Proposer's role
e. Identification of the individuals that worked on the project and will work on this project
f. Project development cost
g. Summary of project capital funding and Proposer's role in raising the capital
h. Summary of the role of the public sector, if any
i. Reference contact information
Design Team Qualifications
Summarize the Design Team's experience with designing completed convention hotels or other hotel
projects, including:
4.1 Company Information: Provide background information, including company history,years in business,
number of employees, and any other information communicating capabilities and experience.
(recommend 1 page)
4.2 Relevant Experience: Summarize projects where the design team has designed convention hotels or
' other hotel projects. (Recommend 1 page per project). List convention hotels first, followed by other
hotel projects. For each project include:
a. Project name, number of rooms, square feet of meeting and ballroom space, location,and images
RFP 201 B-238-KB 14
Page 1424 of 1842
b. Design team names(s)and roles (designer, construction documentation, interiors, etc.)
c. Year project opened(or"In Design'or"Under Construction')
d. Summary of Designer's role
e. The names of the key project architects, highlighting any individuals who will also work on this
project
• f. Project development cost
g. Reference contact information •
Financing Terms and Preliminary Budget
5.1 Finance Plan: Summarize your plan to finance the Hotel,as follows:
FOR HOTEL SITE 1 —LEASE(OPTION Al:
Finance Plan: Specify the planned level of Proposer equity participation, planned level and
identification of known third-party equity participation, planned level of third-party equity that
needs to be raised, expected financing role of the manager/operator, the structure for and
amount of third-party debt, relationships and history with lenders, and the willingness to provide
the required level of any anticipated debt guarantees.
Lease Payments: Summarize your proposal to lease the Hotel Site 1, including 1) the desired
term; 2) percentage rent in the form of a percentage of gross operating revenues (see definition
for Gross Operating Revenues included in the Lease set forth in Appendix L),which shall include
all revenues and income of any nature derived directly or indirectly from the use or operation of
the Hotel or the Hotel Site, consistent with the Uniform System of Accounts for the Lodging
Industry, 11th Revised Edition); 3) a schedule of annual proposed fixed minimum rent payment
by year for the term, and 4) a summary of any other payments referenced in the Lease, if any.
The annual rent paid will be the greater of the percentage rent or the minimum fixed payment.
FOR HOTEL SITE 1 -P3IMANAGEMENT AGREMENT(OPTION B1:
Finance Plan: Summarize the sources and uses of bonds, plan for sale of bonds (public
issuance versus private placement), issuing agency, name of any private placement bond buyer,
and acknowledgement that the City of Miami Beach will not guarantee or have any legal or moral
obligation to repay any shortfalls in bond payments.
City Payments: Summarize your proposal for any payments to the City while the bonds are
outstanding, the formula for calculating the payments, and where in the bond waterfall any
payment will be made.
FOR HOTEL SITE 2—LEASE(OPTION Cl:
If proposing under Option C for a lease of Hotel Site 2, specify how your proposed hotel
financing plan would change given Hotel Site 2.
Hotel Finance Plan: Specify the planned level of Proposer equity participation, planned level
and identification of known third-party equity participation, planned level of third-party equity that
needs to be raised, expected financing role of the manager/operator, the structure for and
amount of third-party debt, relationships and history with lenders, and the willingness to provide
RFP 2018-238-KB 15
Page 1425 of 1842
the required level of any anticipated debt guarantees.
Gleason Theater Finance Plan: Summarize your plan for privately or publicly financing the .
renovation or replacement of the Gleason Theater. Include a summary of all major assumptions.
sources and uses, the role of the Proposer, and the role of the City,and any anticipated financial
commitments or guarantees required of the City.
Lease Payments: Summarize your proposal to lease the Hotel Site 2, including 1) the desired
term; 2) percentage rent in the form of a percentage of gross operating revenues (see Lease
definition, which shall include all revenues and income of any nature derived directly or indirectly
from the use or operation of the Hotel or the Hotel Site, consistent with the Uniform System of
Accounts for the Lodging Industry, 11th Revised Edition);3)a schedule of annual proposed fixed
minimum rent payment by year for the term, and 4) a summary of any other payments
referenced in the Lease, if any. The annual rent paid will be the greater of the percentage rent
or the minimum fixed payment.
5.2 Hotel Operating Pro forma: Provide a 10-year hotel pro forma delineating operating statistics (ADR,
occupancy, RevPAR, F&B per occupied room night) operating revenues (Rooms, F&B, Telephone,
Parking, other). departmental expenses (Rooms, F&B, Telephone, Parking, other), undistributed
expenses (administrative & general, sales & marketing, repairs and maintenance, utilities). fixed
expenses(management fees, Insurance, property taxes, site lease),and capital reserves.
5,3 Hotel Capital Cash Flows: Provide a 10-year summary of the capital cash flows delineating net
operating income's application to debt, equity, or bond payments, including the calculation of annual
leveraged and unleveraged cash-on-cost returns for any privately-owned proposal. Include a summary of
all material assumptions, debt service/bonds payment schedules and any other data to assisting in
assessing the viability of the proposed plan of finance.
5.4 Gleason Theater Operating Pro Forma: Provide a 10-year performing arts theater pro forma
delineating operating statistics, including operating revenues (rentals, F&B, other), direct operating
expenses.undistributed expenses(administrative &general,sales&marketing, repairs and maintenance,
utilities), fixed expenses (management fees, Insurance, property taxes, site lease), and capital reserves.
Include a summary of all material assumptions, debt service/bonds payment schedules and any other
data to assisting in assessing the viability of the proposed plan of finance.
5.5 Preliminary Development Budget:
Hotel: Provide a summary of the hotel development budget under both the Hotel Site 1 and Hotel
Site 2 scenarios, including estimated construction hard costs, architecture/engineering, furniture,
fixtures and equipment (FF&E), development fee, other soft costs and required fees, pre-
opening/working capital, art in public places (1.5% of construction costs per City Code Section 82-
537), contingency and escalation,financing costs,and any other unique project costs.
Gleason Theater: If proposing Option C, please provide a preliminary order of magnitude budget for
the renovation or replacement of the Gleason Theater, including estimated construction hard costs,
architecture/engineering, furniture, fixtures and equipment (FF&E), development fee, other soft costs
and required fees, pre-opening/working capital, art in public places (1.5% of construction costs per
City Code Section 82-537), contingency and escalation,financing costs,and any other unique project
costs.
RFP 2018-238-KB 16
Page 1426 of 1842
rProgram
6.1 Hotel Program: Provide a table summarizing the Hotel program utilizing the form in Appendix J. For
proposals submitted under Option C, provide a table summarizing the Hotel and Gleason Theater
program utilizing the form in Appendix K(form to be issued via Addendum).
6.2 Brands: Specify which hotel brand(s)you intend to consider for the Hotel. Each Proposer shall be
solely responsible to clear with the named hotel brand that there are no restrictions that would limit
• the brands ability to operate the Hotel.
6.3 Schedule: Provide a development schedule outlining key design, construction start, and opening
dates.
Conceptual Design and Resiliency
7.1 Conceptual Design: Provide conceptual architectural diagrams of floor plans, elevations and
renderings of the proposed Hotel Project. It is expected that the conceptual design for the Hotel Project
will further the City's design standards, and continue the City's legacy as a home to many architecturally
significant buildings designed by nationally and internationally-recognized architects. It is further
expected that the conceptual design of the Hotel Project will be architecturally harmonious with the
surrounding area, including the design for the MBCC Renovation and Expansion Project (including its
public park components), New World Symphony, Soundscape Park,and Lincoln Road.
7.2 Resiliency: The Hotel Project shall be designed with the objective of meeting LEED Gold
certification requirements, in accordance with Chapter 133 of the City Code. In addition, provide
Proposer's approach for meeting or exceeding the Resiliency Standards set forth in Appendix E, and
specify how the Resiliency Standards are incorporated in the Proposer's conceptual design in Section
7.1.
I
TAB 8 A•reements SUBMIT IN SEPARATE ENVELOPE
If proposing Option A, provide redline comments to the template Lease Agreement included in Appendix
K. An electronic version of the document can be downloaded at http:// (http site to be
provided by Addendum). Proposers must clearly indicate any exceptions they wish to take to any of the
terms, and what, if any, alternative proposed revisions are being offered. All exceptions and alternatives
shall be included and clearly delineated by redlining the City's form agreement in this tab. In addition, a
redlined Microsoft Word version shall be submitted on a USB Drive. Notwithstanding the foregoing, in no
event shall any of the Proposer's terms be inconsistent or in conflict with the Hotel Project Requirements
and Room Block Agreement requirements set forth in Section C2 of Appendix C to the RFP. The failure
to adhere to the Hotel Project Requirements and Room Block Agreement requirements shall render a
Proposer non-responsive. City reserves the right to reject any proposed exceptions and/or revisions at its
sole and absolute discretion.
If proposing Option B, provide a summary of all key terms of the development agreement(Design-Build-
Finance-Operate-Maintain), bond purchase agreement, P3/Management Agreement, and any other
agreement required to be made with the City.
If proposing Option C, specify how any of the above agreements change under this scenario. Also
provide a summary of all key terms of the any agreements required for the development, management
RFP 2018-238-KB 17
Page 1427 of 1842
and operation of the Gleason Theater (following the expiration of the current management agreement on
August 31, 2022).
Acknowledge your acceptance to the template Room Block Agreement provided in Appendix L.
Revisions to this agreement are not permitted.
Financial Capabilities (SUBMIT IN SEPARATE ENVELOPE)
Financial Capabilities: Provide the Proposer's most recent annual reviewed/audited financial statement
with the auditor's notes. Such statements should include,as a minimum, balance sheets(statements of
financial position)and statements of profit and loss(statement of net income).Also provide financial
information for any for any other equity investor included in the proposal,as well as related information
concerning the equity investor's track record with similar developments.
Financial Capacity. Within three (3) business days of request by the City, each Proposer shall arrange for
Dun & Bradstreet to submit a Supplier Qualification Report (SQR) directly to the Procurement Contact
named herein. No proposal will be considered without receipt, by the City, of the SQR directly from Dun &
Bradstreet.The cost of the preparation of the SQR shall be the responsibility of the Proposer.The Proposer
shall request the SQR report from D&B at:
haps:Nsupplierportal.dnb.comiwebapp/wcs/storesiscrvlctlSupplicrPortarstorctd-11696
Proposers are responsible for the accuracy of the information contained in its SQR. It is highly
recommended that each Proposer review the information contained in its SQR for accuracy prior to
submittal to the City and as early as possible in the solicitation process. For assistance with any
portion of the SQR submittal process, contact Dun &Bradstreet at 800-424-2495.
5.ADDITIONAL INFORMATION OR CLARIFICATION. After proposal submittal,the City reserves the right
to require additional information from Proposers (or Proposer team members or sub-consultants) to
determine: qualifications (including, but not limited to, litigation history, regulatory action, or additional
references); and financial capability (including, but not limited to, annual reviewed/audited financial
statements with the auditors notes for each of their last two complete fiscal years).
RFP 2018-238-KB 18
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SECTION 0400 PROPOSAL EVALUATION
1. As set forth in Section 0200 (Instructions to Proposers), a Proposer must submit an individual,
separate proposal for Option A, Option B, or Option C.. Proposals received shall be evaluated
against all other proposals received for the same Option or category, in accordance with the
evaluation criteria established in this Section. For example, any proposal received for Option A
(Development and Lease Agreement for Hotel Site 1) shall be evaluated against all other proposals
received for Option A. Any proposal received for Option B (P3/Management Agreement for Hotel
Site 1) shall be evaluated against all other proposals received for Option B. Any proposal received
for Option C (Development and Lease Agreement for Hotel Site 2) shall be evaluated against all
other proposals received for Option C. The Evaluation Committee shall rank proposals separately,
for each Option, for the City Manager's review and consideration.
2. Evaluation Committee. The City Manager will appoint an Evaluation Committee to assist in the
evaluation of each responsive proposal in accordance with the criteria set forth in this section.
Regarding matters of responsiveness, the determination of the City Manager and the City
Attorney shall be binding. The evaluation of proposals will proceed in a two-step process as
indicated in Sub-sections 2 and 3 below, The City, in its sole discretion, may utilize technical or
other advisers to assist the Evaluation Committee or the City Manager. The role of the Evaluation
Committee is solely to consider proposals and presentations (if applicable) and provide rankings to
the City Manager. The results of the Evaluation Committee process shall not constitute an award
recommendation. The City Manager shall use the results of the Evaluation Committee process, as
well as the considerations outlined in Section 2-369 of the City Code, and any other information the
City Manager deems appropriate, to develop his recommendation to the City Commission.
a. Sole Proposal. In the event that only one responsive proposal is received, the City
Manager, after determination that the sole responsive proposal meets the requirements of
the RFP, may, without an Evaluation Committee, make a recommendation to the City
Commission for award.
3. Step 1 Qualitative Evaluation (by the Evaluation Committee). The first step will consist of the
qualitative criteria listed below to be considered by the Evaluation Committee. Proposers may be
requested to make additional written submissions of a clarifying nature or oral presentations to the
Evaluation Committee
Maximum
Step 1 -Qualitative Criteria Points
Proposer Qualifications 15
Design Team Qualifications 10
Financial Plan &Terms and Preliminary Budget 35
Programing 15
Conceptual Design and Resiliency 25
TOTAL AVAILABLE STEP 1 POINTS 100
RFP 2018-238-KB 19
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4. Step 2 Evaluation (by Staff). Following the results of Step 1 Evaluation of qualitative criteria,
the Proposers may receive additional quantitative criteria points to be added to those points earned
in Step 1, as follows.
Step 2-Quantitative Criteria Maximum Points
Veterans Preference 5
TOTAL AVAILABLE STEP 2 POINTS 5
5. Determination of Final Ranking. At the conclusion of the Evaluation Committee Step 1 scoring,
Step 2 Points will be added to each evaluation committee member's scores by the Procurement
Department. Step 1 and 2 scores will be converted to rankings in accordance with the example
below:
Proposer A Proposer B Proposer C
Step 1 Points 82 76 BO
Committee Step 2 Points 0 0 _ 5
Member 1 Total 82 76 85
Rank 2 3 1
Step 1 Points 79 85 74
Committee Step 2 Points 0 0 5
Member 2 Total 79 85 79
Rank 2 1 3
Step 1 Points 80 74 66
Committee Ste. 2 Points 0 0 5
Member 2 Total 80 74 71
Rank 1 2 3
Low Aggregate Score 5 6 7
Final Ranking* 1 2 3
* Final Ranking is presented to the City Manager for further due diligence and
recommendation to the City Commission. Final Ranking does not constitute an
award recommendation until such time as the City Manager has made his
recommendation to the City Commission, which may be different than final
ranking results.
RFP 2018-238-KB 20
Page 1430 of 1842
APPENDIX A
Proposal Certification ,
Questionnaire &
Requirements Affidavit
2018-238-KB
FOR THE DEVELOPMENT OF A CONVENTION
HOTEL ADJACENT TO THE MIAMI BEACH
CONVENTION CENTER
PROCUREMENT DEPARTMENT
1755 Meridian Avenue, 3rd Floor
Miami Beach, Florida 33139
REP 2018-238-KB 21
Page 1431 of 1842
Solicitation No Solicitation Title
2018-238-KB FOR THE DEVELOPMENT OF A CONVENTION OTEL ADJACENT TO THE
' MIAMI BEACH CONVENTION CENTER
Procurement Contac: Tel Email.
Kristy Bada 305-673-7490 _ kristybada@miamibeachfl.gov
PROPOSAL CERTIFICATION, QUESTIONNAIRE & REQUIREMENTS AFFIDAVIT
Purpose: The purpose of this Proposal Certification, Questionnaire and Requirements Affidavit Form is to inform
prospective Proposers of certain solicitation and contractual requirements, and to collect necessary information from
Proposers in order that certain portions of responsiveness, responsibility and other determining factors and
compliance with requirements may be evaluated. This Proposal Certification, Questionnaire and Requirements
Affidavit Form is a REQUIRED FORM that must be submitted fully completed and executed.
1. General Proposer Information.
FIRM NAME.
NO.OF YEARS IN BUSINESS'. NO.OF YEARS IN BUSINESS LOCALLY. NO.OF EMPLOYEES:
OTHER NAME(S)PROPOSER HAS OPERATED UNDER IN THE LAST 10 YEARS.
FIRM PRIMARY ADDRESS(HEADQUARTERS):
CITY:
STATE: ZIP CODE:
TELEPHONE NO.:
TOLL FREE NO.:
FAX NO.:
FIRM LOCAL ADDRESS:
CITY:
_STATE. ZIP CODE. l..
PRIMARY ACCOUNT REPRESENTATIVE FOR THIS ENGAGEMENT:
ACCOUNT REP TELEPHONE NO:
ACCOUNT REP TOLL FREE NO.'.
ACCOUNT REP EMAIL.
FEDERAL TAX IDENTIFICATION NO'.
The City reserves the right to seek additional information from Proposer or other source(s), including but not limited to: any firm or principal
information,applicable licensure, resumes of relevant individuals,client information,financial information,or any information the City deems
necessary to evaluate the capacity of the Proposer to perform in accordance with contract requirements.
RFP 2018-238-KB 22
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1. Veteran Owned Business.Is Proposer claiming a veteran owned business status?
YES 1 NO
SUBMITTAL REQUIREMENT: Proposers claiming veteran owned business status shall submit a documentation proving that firm
is certified as a veteran-owned business or a service-disabled veteran owned business by the State of Florida or United States
federal government,as required pursuant to ordinance 2011-3748.
2. Conflict Of Interest.All Proposers must disclose, in their Proposal.the name(s)of any officer,director,agent,or immediate family
member (spouse, parent, sibling, and child) who is also an employee of the City of Miami Beach. Further, all Proposers must
disclose the name of any City employee who owns, either directly or indirectly, an interest of ten (10%) percent or more in the
Proposer entity or any of its affiliates.
SUBMITTAL REQUIREMENT: Proposers must disclose the name(s) of any officer, director, agent, or immediate family member
(spouse, parent,sibling,and child)who is also an employee of the City of Miami Beach. Proposers must also disclose the name of
any City employee who owns, either directly or indirectly, an interest of ten (10%)percent or more in the Proposer entity or any of
its affiliates
3. References&Past Performance. Proposer shall submit at least three(3)references for whom the Proposer has completed work
similar in size and nature as the work referenced in solicitation.
SUBMITTAL REQUIREMENT: For each reference submitted, the following information is required: 1) Firm Name, 2) Contact
Individual Name&Title,3)Address,4)Telephone,5)Contact's Email and 6) Narrative on Scope of Services Provided.
4. Suspension, Debarment or Contract Cancellation.Has Proposer ever been debarred,suspended or other legal violation,or had
a contract cancelled due to non- erformance by any public sector agency?
YES JJNO
SUBMITTAL REQUIREMENT: If answer to above is "YES° Proposer shall submit a statement detailing the reasons that led to
action(s).
5. Vendor Campaign Contributions. Proposers are expected to be or become familiar with, the City's Campaign Finance Reform
laws, as codified in Sections 2-487 through 2-490 of the City Code. Proposers shall be solely responsible for ensuring that all
applicable provisions of the City's Campaign Finance Reform laws are complied with,and shall be subject to any and all sanctions,
as prescribed therein,including disqualification of their Proposals,in the event of such non-compliance.
SUBMITTAL REQUIREMENT: Submit the names of all individuals or entities (including your sub-consultants) with a controlling
financial interest as defined in solicitation. For each individual or entity with a controlling financial interest indicate whether or not
each individual or entity has contributed to the campaign either directly or indirectly, of a candidate who has been elected to the
office of Mayor or City Commissioner for the City of Miami Beach.
6. Code of Business Ethics. Pursuant to City Resolution No.2000-23879, each person or entity that seeks to do business with the
City shall adopt a Code of Business Ethics ("Code") and submit that Code to the Procurement Department with its
proposal/response or within five (5)days upon receipt of request.The Code shall, at a minimum, require the Proposer, to comply
with all applicable governmental rules and regulations including, among others, the conflict of interest, lobbying and ethics
provision of the City of Miami Beach and Miami Dade County.
SUBMITTAL REQUIREMENT: Proposer shall submit firm's Code of Business Ethics. In lieu of submitting Code of Business
Ethics, Proposer may submit a statement indicating that it will adopt,as required in the ordinance,the City of Miami Beach Code of
Ethics,available at htipJlwww.miamlbeachtl.govlcity-hall/procurementiprocurement-related-ordinance-and-proceduresl
REP 2018-238-KB 23
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7. NOT USED.
8. Equal Benefits far Employees with Spouses and Employees with Domestic Partners. When awarding competitively solicited
contracts valued at over$100,000 whose contractors maintain 51 or mare full time employees on their payrolls during 20 or mare
calendar work weeks, the Equal Benefits for Domestic Partners Ordinance 2005-3494 requires certain contractors doing business
with the City of Miami Beach, who are awarded a contract pursuant to competitive proposals, to provide"Equal Benefits'to theft
employees with domestic partners, as they provide to employees with spouses. The Ordinance applies to all employees of a
Contractor who work within the City limits of the City of Miami Beach, Florida,and the Contractor's employees located in the United
States, but outside of the City of Miami Beach limits, who are directly performing work on the contract within the City of Miami
Beach.
A. Does your company provide or offer access to any benefits to employees with spouses or to spouses of employees?
J YES [ NO
B. Does your company provide or offer access to any benefits to employees with(same or opposite sex)domestic partners*or to
domestic partners of employees?
YES NO
C. Please check all benefits that apply to your answers above and list in the 'other' section any additional benefits not already
specified. Note: some benefits are provided to employees because they have a spouse or domestic partner, such as bereavement
leave;other benefits are provided directly to the spouse or domestic partner, such as medical insurance.
BENEFIT Firm Provides for I Firm Provides for Firm does not
Employees with Employees with Provide Benefit
S rouses Domestic Partners
Health
Sick Leave
Family Medical Leave
Bereavement Leave
If Proposer cannot offer a benefit to domestic partners because of reasons outside your control, (e.g., there are no insurance
providers in your area willing to offer domestic partner coverage)you may be eligible for Reasonable Measures compliance. To
comply on this basis, you must agree to pay a cash equivalent and submit a completed Reasonable Measures Application
(attached)with all necessary documentation.Your Reasonable Measures Application will be reviewed for consideration by the City
Manager, or his designee. Approval is not guaranteed and the City Manager's decision is final. Further information on the Equal
Benefits requirement is available at http:l/www.miamibeachfi-gov/city-hail/procurement/procurement-related-ordinance-and-
procedures/
9. Public Entity Crimes.Section 287.133(2)(a),Florida Statutes.as currently enacted or as amended from time to time,states that a
person or affiliate who has been placed on the convicted vendor list following a conviction for a public entity crime may not submit
a proposal, proposal, or reply on a contract to provide any goods or services to a public entity; may not submit a proposal,
proposal,or reply on a contract with a public entity for the construction or repair of a public building or public work; may not submit
proposals, proposals,or replies on leases of real property to a public entity; may not be awarded or perform work as a contractor,
supplier, subcontractor, or consultant under a contract with any public entity, and may not transact business with any public entity
in excess of the threshold amount provided in s. 287.017 for CATEGORY TWO for a period of 36 months following the date of
being placed on the convicted vendor list,
SUBMITTAL REQUIREMENT: No additional submittal is required. By virtue of executing this affidavit document, Proposer agrees
with the requirements of Section 287.133,Florida Statutes,and certifies it has not been placed on convicted vendor list.
10. Non-Discrimination. Pursuant to City Ordinance No.2016-3990,the City shall not enter into a contract with a business unless the
business represents that it does not and will not engage in a boycott as defined in Section 2-375(a)of the City Code, including the
blacklisting, divesting from,or otherwise refusing to deal with a person or entity when such action is based on race,color,national
origin, religion,sex, intersexuality,gender identity,sexual orientation,marital or familial status,age or disability.
SUBMITTAL REQUIREMENT: No additional submittal is required. By virtue of executing this affidavit document,Proposer agrees
it is and shall remain in full compliance with Section 2-375 of the City of Miami Beach City Code,
11. Moratorium on Travel to and the Purchase of Goods or Services from North Carolina and Mississippi. Pursuant to
Resolution 2016-29375, the City of Miami Beach, Florida, prohibits official City travel to the states of North Carolina and
Mississippi, as well as the purchase of goods or services sourced in North Carolina and Mississippi. Proposer shall agree that no
travel shall occur on behalf of the City to North Carolina or Mississippi, nor shall any product or services it provides to the City be
RFP 2018-238-KB 24
Page 1434 of 1842
sourced from these states.
SUBMITTAL REQUIREMENT: No additional submittal is required. By virtue of executing this affidavit document, Proposer agrees
it is and shall remain in full compliance with Resolution 2016-29375.
12. Fair Chance Requirement. Pursuant to Section 2-376 of the City Code, the City shall not enter into any contract resulting from a
competitive solicitation, unless the proposer certifies in writing that the business has adopted and employs written policies,
practices, and standards that are consistent with the City's Fair Chance Ordinance, set forth in Article V of Chapter 62 of the City
Code ("Fair Chance Ordinance"), and which, among other things, (i) prohibits City contractors. as an employer, from inquiring
about an applicants criminal history until the applicant is given a conditional offer of employment; (ii) prohibits advertising of
employment positions with a statement that an individual with a criminal record may not apply for the position, and (ii) prohibits
placing a statement on an employment application that a person with a criminal record may not apply for the position.
SUBMITTAL REQUIREMENT: No additional submittal is required at this time. By virtue of executing this affidavit, Proposer
certifies that it has adopted policies, practices and standards consistent with the City's Fair Chance Ordinance. Proposer agrees to
provide the City with supporting documentation evidencing its compliance upon request. Proposer further agrees that any breach
of the representations made herein shall constitute a material breach of contract, and shall entitle the City to the immediate
termination for cause of the agreement,in addition to any damages that may be available at law and in equity.
13. Acknowledgement of Addendum. After issuance of solicitation, the City may release one or more addendum to the solicitation
which may provide additional information to Proposers or alter solicitation requirements. The City will strive to reach every
Proposer having received solicitation through the City's e-procurement system, PublicPurchase.com. However, Proposers are
solely responsible for assuring they have received any and all addendum issued pursuant to solicitation.This Acknowledgement of
Addendum section certifies that the Proposer has received all addendum released by the City pursuant to this solicitation. Failure
to obtain and acknowledge receipt of all addenda may result in proposal disqualification.
initial to Confirm Initial to Confirm I Initial to Confirm
Receipt Receipt • Receipt
Addendum 1 Addendum 6 Addendum 11
Addendum 2 Addendum 7 Addendum 12
Addendum 3 Addendum 8 Addendum 13
Addendum 4 Addendum 9 Addendum 14
Addendum 5 Addendum 10 Addendum 15
If additional confirmation of addendum is required,submit under separate cover.
RFP 2018-238-KB 25
Page 1435 of 1842
DISCLOSURE AND DISCLAIMER SECTION
The solicitation referenced herein is being furnished to the recipient by the City of Miami Beach (the"City')for the recipient's convenience.
Any action taken by the City in response to Proposals made pursuant to this solicitation,or in making any award, or in failing or refusing to
make any award pursuant to such Proposals, or in cancelling awards, or in withdrawing or cancelling this solicitation, either before or after
issuance of an award,shall be without any liability or obligation on the part of the City.
In its sole discretion, the City may withdraw the solicitation either before or after receiving proposals, may acceptor reject proposals, and
may accept proposals which deviate from the solicitation, as it deems appropriate and in its best interest. In its sole discretion,the City may
determine the qualifications and acceptability of any party or parties submitting Proposals in response to this solicitation.
Following submission of a Bid or Proposal, the applicant agrees to deliver such further details, information and assurances, including
financial and disclosure data, relating to the Proposal and the applicant including, without limitation, the applicant's affiliates, officers,
directors,shareholders,partners and employees,as requested by the City in its discretion.
The information contained herein is provided solely for the convenience of prospective Proposers. It is the responsibility of the recipient to
assure itself that information contained herein is accurate and complete.The City does not provide any assurances as to the accuracy of any
information in this solicitation.
Any reliance on these contents,or on any permitted communications with City officials,shall be at the Proposers own risk.Proposers should
rely exclusively on their own investigations, interpretations, and analyses.The solicitation is being provided by the City without any warranty
or representation, express or implied,as to its content, its accuracy, or its completeness. No warranty or representation is made by the City
or its agents that any Proposal conforming to these requirements will be selected for consideration, negotiation, or approval, and further, no
warranty or representation is made by the City or its agents with respect to the timing for such approvals,if any.
The City shall have no obligation or liability with respect to this solicitation,the selection and the award process,or whether any award will be
made, or with respect to the timing for the requisite approvals, if any award is made.Any recipient of this solicitation who responds hereto
fully acknowledges all the provisions of this Disclosure and Disclaimer. is totally relying on this Disclosure and Disclaimer, and agrees to be
bound by the terms hereof.Any Proposals submitted to the City pursuant to this solicitation are submitted at the sole risk and responsibility of
the party submitting such Proposal.
This solicitation is made subject to correction of errors,omissions. or withdrawal from the market without notice. Information is for guidance
only,and does not constitute all or any part of an agreement.
The City and all Proposers will be bound only as, if and when a Proposal (or Proposals), as same may be modified, and the applicable
definitive agreements pertaining thereto, are approved and executed by the parties, and then only pursuant to the terms of the definitive
agreements executed among the parties.Any response to this solicitation may be accepted or rejected by the City for any reason,or for no
reason,without any resultant liability to the City.
The City is governed by the Government-in-the-Sunshine Law,and all Proposals and supporting documents shall be subject to disclosure as
required by such law. All Proposals shall be submitted in sealed proposal form and shall remain confidential to the extent permitted by
Florida Statutes. until the date and time selected for opening the responses.At that time, all documents received by the City shall become
public records.
Proposers are expected to make all disclosures and declarations as requested in this solicitation. By submission of a Proposal,the Proposer
acknowledges and agrees that the City has the right to make any inquiry or investigation it deems appropriate to substantiate or supplement
information contained in the Proposal,and authorizes the release to the City of any and all information sought in such inquiry or investigation.
Each Proposer certifies that the information contained in the Proposal is true, accurate and complete, to the best of its knowledge,
information,and belief.
Notwithstanding the foregoing or anything contained in the solicitation,all Proposers agree that in the event of a final unappealable judgment
by a court of competent jurisdiction which imposes on the City any liability arising out of this solicitation, or any response thereto, or any
action or inaction by the City with respect thereto, such liability shall be limited to$10,000.00 as agreed-upon and liquidated damages.The
previous sentence, however, shall not be construed to circumvent any of the other provisions of this Disclosure and Disclaimer which
imposes no liability on the City.
In the event of any differences in language between this Disclosure and Disclaimer and the balance of the solicitation, it is understood that
the provisions of this Disclosure and Disclaimer shall always govern. The solicitation and any disputes arising from the solicitation shall be
governed by and construed in accordance with the laws of the State of Florida.
RFP 2018-238-KB 26
Page 1436 of 1842
PROPOSER CERTIFICATION
I hereby certify that: I,as an authorized agent of the Proposer, am submitting the following information as my firm's proposal;
Proposer agrees to complete and unconditional acceptance of the terms and conditions of this document, inclusive of this
solicitation, all attachments, exhibits and appendices and the contents of any Addenda released hereto, and the Disclosure
and Disclaimer Statement: proposer agrees to be bound to any and all specifications, terms and conditions contained in the
solicitation, and any released Addenda and understand that the following are requirements of this solicitation and failure to
comply will result in disqualification of proposal submitted; Proposer has not divulged, discussed,or compared the proposal
with other Proposals and has not colluded with any other proposer or party to any other proposal; proposer acknowledges
that all information contained herein is part of the public domain as defined by the State of Florida Sunshine and Public
Records Laws; all responses, data and information contained in this proposal, inclusive of the Statement of Qualifications,
and the Certification, Questionnaire and Requirements Affidavit are true and accurate.
Name of Proposer's Authorized Representative: I Tif.e of Proposers Authorized Representative• :
Signature of Proposer's Authorized Representative: Date:
RFP 2018-238-KB 27
Page 1437 of 1842
APPENDIX B
" No Bid " Form
2018-238-KB
FOR THE DEVELOPMENT OF A CONVENTION
HOTEL ADJACENT TO THE MIAMI BEACH
CONVENTION CENTER
PROCUREMENT DEPARTMENT
1755 Meridian Avenue, 3rd Floor
Miami Beach, Florida 33139
(Nate. It is important for those vendors who have received notification of
this solicitation but have decided not to respond, to complete and submit
the attached "Statement of No Bid." The "Statement of No Bid" provides.
the City with information on how to improve the solicitation process.
tFciilure to submit a 'Statement of No Bid" may result in not,being notified;}
a .future.sglicit t QDS IDY the City.
RFP 2018-238-KB 28
Page 1438 of 1842
Statement of No Bid
WE HAVE ELECTED NOT TO SUBMIT A PROPOSAL AT THIS TIME FOR
REASON(S) CHECKED AND/OR INDICATED BELOW:
Workload does not allow us to proposal
Insufficient time to respond
Specifications unclear or too restrictive
Unable to meet specifications
Unable to meet service requirements
Unable to meet insurance requirements
Do not offer this product/service
_OTHER. (Please specify)
We do do not want to be retained on your mailing list for future proposals
of this type product and/or service.
Signature:
Title:
Legal Company Name:
Note: Failure to respond, either by submitting a proposal or this completed form,
may result in your company being removed from our vendors list.
PLEASE RETURN TO:
CITY OF MIAMI BEACH
PROCUREMENT DEPARTMENT
ATTN: Kristy Bada
PROPOSAL #: 2018-238-KB
1755 MERIDIAN AVENUE, 3rd FLOOR
MIAMI BEACH, FL 33139
RFP 2018-238-KB 29
Page 1439 of 1842
APPENDIX C
Minimum Requirements
& Specifications
2018-238-KB
FOR THE DEVELOPMENT OF A CONVENTION
HOTEL ADJACENT TO THE MIAMI BEACH
CONVENTION CENTER
PROCUREMENT DEPARTMENT
1755 Meridian Avenue, 3rd Floor
Miami Beach, Fonda 33139
RFP 2018-238-KB 30
Page 1440 of 1842
Cl. Minimum Eligibility Requirements. The Minimum Eligibility Requirements for this solicitation
are listed below. Proposer shall submit, the required submittal(s) documenting compliance with
each minimum requirement. A Proposer who fails to include the required submittals with its
proposal or fail to comply with minimum requirements shall be deemed non-responsive and shall
not have its proposal considered.
1. The Proposer must have developed or provided private financing (consisting of more than
50% private financing, such as private commercial loans and equity)for at least one (1)
$250 million hotel project within the last twenty (20) years.
Required Submittals: For each project, submit project name, brief description of
project, date of completion, owner's representative, and owner's representative
contact information.
2. The Proposer must identify a Design Team, with a primary design/lead architect,who must
have designed at least one (1)completed hotel with at least 500 rooms or more within the
last fifteen (15) years.
For proposals submitted under Option C for Hotel Site 2, Proposers must identify (i) a
Design Team, with a primary design/lead architect, who must have designed at least one
(1) completed hotel with at least 500 rooms or more within the last fifteen (15) years; and
(ii) a member of the Design Team who must have designed at least one (1) renovation or
new construction of a completed performing arts theater with a seating capacity of 2,000
seats within the last fifteen (15)years, and who will serve as the lead architect with respect
to the renovation or replacement of the Gleason Theater.
Required Submittals: For each project, submit project name, brief description of
project, date of completion, owner's representative, and owner's representative
contact information.
C2. Statement of Work Required.
1. Public Participation
1.1.Under Option A for the Lease of Hotel Site 1, the City shall not provide, nor should
Proposers rely on, any public funding or public financing for the Hotel Project.
1.2.Under Option B, for a P3/Management Agreement for Hotel Site 1, the City shall not
provide, nor should Proposers rely on, any public funding for the Hotel Project. The City
will consider proposals for public financing of the Hotel Project.
1.3.Under Option C, for a Lease of Hotel Site 2, the City shall not provide, nor should
Proposers rely on, any public funding or public financing for the Hotel Project. The City will
consider proposals for public funding or public financing for the renovation or replacement
of the Gleason Theater.
1.4.For all Options, in the event a Proposer's approach or business model contemplates the
RFP 2018-238-KB 31
Page 1441 of 1842
use of MBCC meeting rooms or other space, any use of such MBCC space by the
Proposer shall be at the MBCC's prevailing/market rates and subject to availability.
2. Voter Referendum Required For Approval of Lease: For any Option that contemplates a
lease of City-owned land (Option A and Option C), pursuant to Section 1.03(b)(3) of the City
Charter, the lease of Hotel Site 1 or Hotel Site 2 for a term of 10 years or greater is subject to
approval by vote of at least 60% of the voters voting thereon in a City-wide a referendum
("Referendum'). The City anticipates placing the Referendum question on the ballot for the
November 5, 2019 general election, provided the Lease between the City and the Developer is
finalized on or before July, 2019, in advance of the pertinent Miami-Dade County election
deadlines related to submission of ballot questions. At the City Commission's sole discretion,
the Referendum could potentially be scheduled for an earlier date in 2019, provided that(1)the
Lease is finalized and approved by the City Commission, and (2) the Developer pays its pro
rata share (based on total number of questions on the ballot) of the costs of a special election
(approximately $400,000). The Lease shall be contingent upon voter approval in accordance
with the City Charter. In the event the Referendum is not successful, the Lease shall be null
and void.
3. Hotel Project Requirements: The Hotel Project shall include the following minimum
requirements:
a. The Hotel must include a minimum of 550 separately keyed sleeping rooms capable of
individual rental on a day-to-day overnight basis to hotel patrons and guests; conference
space for meetings and other events, including ballroom and breakout rooms; kitchen
facilities used for room service and serving conference and meeting rooms; food and
beverage operations of a size consistent with other food and beverage or restaurant
facilities at comparable convention hotels with a 4-diamond rating from the American
Automobile Association; at least one non-specialty retail facility which may consist of a
sundry and/or coffee shop selling products such as newspapers, coffee, overnight supplies
and travel necessities; and a pool, fitness center and spa. The Proposers may propose for
the Hotel to include other elements or operations, including ground floor retail elements
(other than the prohibited uses specified below), provided all such elements or operations
shall be subject to City approval at the City's sole discretion.
b. Unless otherwise waived or amended in accordance with the City's Land Development
Regulations, the Hotel must include on-site a minimum of 0.4 parking spaces per room
(including all ancillary uses). Further, notwithstanding the maximum height that may be
permitted by the City's Land Development Regulations, the maximum height of the Hotel
cannot exceed 185 feet.
c. The Developer will be responsible for demolishing any existing structures on the Hotel Site
and the areas adjacent to the Hotel Site identified for removal or demolition, including the
Gleason Theater annex and the building at 555 17th Street. The Developer will also be
responsible for design, permitting and construction of certain off-site improvements,
including enclosing the Gleason Theater in the area of the demolition.
d. The Developer will be provided a non-exclusive easement to the service lane that currently
RFP 2018-238-KB 32
Page 1442 of 1842
services the MBCC South loading docks and Gleason Theater loading docks.
e. The Developer will be provided an aerial easement over the service lane that currently
services the MBCC South loading docks, for the construction and operation of the
Skybridge and its specified connection to the MBCC at the second level. The Skybridge
design shall be subject to the City's approval and shall be comparable in quality of finishes
and construction of the MBCC Renovation and Expansion Project (addressed more fully
below).
f. The Developer shall be solely responsible for all costs and expenses associated with the
development, design, construction, equipping, and installation of all furniture, fixtures,
equipment and other improvements relating to the Hotel Project, its subsequent operation
or use, and all alterations, repairs or replacements thereof.
g. The Hotel must be operated continuously as a full-service convention hotel. The Hotel
Project shall not be used by Developer, nor shall Developer permit the use thereof, for any
unlawful or illegal business, use or purpose, or for any business, use or purpose which is
immoral or disreputable (including without limitation, "adult entertainment establishments").
h. The Hotel shall not be used by Developer, nor shall Developer permit the use thereof, for
any gambling or wagering of any nature or kind whatsoever (whether or not such use is
permitted by applicable law).
As of the date of execution of the Lease or P3/Management Agreement and thereafter
throughout the term of the Lease or P3/Management Agreement, Developer and any
individuals or entities with any ownership interest in the Hotel shall not directly or indirectly
own, operate or manage any establishment offering or otherwise engaged in gambling or
wagering of any kind in Miami-Dade County. This restriction shall also apply to any of
Developer's successors, assigns or transferees. Any purported transfer that violates this
provision shall be null and void and of no force and effect. The failure to comply with the
foregoing restriction on ownership of gambling interests in Miami-Dade County and/or the
use restriction prohibiting gambling of any kind within the Hotel Project shall constitute a
material breach of the Lease or P3/Management Agreement, entitling the City to liquidated
damages and, if such breach is not cured within a reasonable time, immediate termination
of the Lease or P3/Management Agreement.
j. The restriction on ownership of gambling interests in Miami-Dade County and the use
restriction prohibiting gambling on Hotel Site 1 or Hotel Site 2 are fundamental provisions
of the Lease. The foregoing restrictions may not be modified except by approval of such
modifications by a majority of the members of the City Commission and, in the case of a
Lease, by at least sixty percent (60%) of the voters voting thereon in a City-wide
referendum, in the same manner as required for approval of the initial Lease pursuant to
Section 1.03(b)(3)of the City Charter.
k. To the fullest extent possible, the design of the Hotel Project must complement its
surroundings and minimize its impact on the neighborhood, as reasonably determined by
City.
RFP 2018-238-KB 33
Page 1443 of 1842
I. The City's interest in Hotel Site 1 or Hotel Site 2, if either is awarded pursuant to this RFP,
will not at any time be subject or subordinate to (a) any mortgage or any other liens or
encumbrances hereafter affecting Developers interest in the Hotel Project. For any Option
involving a Lease, City shall at all times have a first priority right to payment of rent due to
City under the Lease. The Lease or P3/Management Agreement shall contain
commercially reasonable terms intended to facilitate traditional financing.
m. The Developer must accept the Hotel Site in its "AS IS" condition, with all faults and patent
or latent defects, and with no representation or warranties by City of any kind whatsoever
with respect to Hotel Site 1 or Hotel Site 2 or the condition, feasibility, value or financial
prospects of the Hotel Project.
n. The rights granted under the Lease or P3/Management Agreement shall be non-exclusive
and City reserves the right to grant similar privileges and similar leases to other lessees or
developers on other City-owned or leased property, and to take any and all actions that
City is permitted to take under federal, state, and local law.
o. Hotel guests can utilize public parking spaces in the vicinity of the Hotel Project (such as
the 800 spaces above the MBCC) for overflow parking at the prevailing market rates, on a
first come/first serve basis and in the same manner as available to members of the general
public. All revenues generated by such parking shall inure solely to the City.
p. Developer shall fund the costs associated with placing the Referendum on a general
election ballot on November 5, 2019, estimated at $25,000. At the City Commission's sole
discretion, the Referendum could potentially be scheduled for an earlier date in 2019,
provided the Lease is finalized and approved, and further provided that the Developer
elects to pay for its pro rata share (based on number of questions on the ballot) of the
costs of a special election (approximately$400,000).
q. The flag of the Hotel must be an "Approved Brand,' which shall mean (a) each of the
following national hotel operators but only if its reputation for quality and quality of
operation, at the time Developer engages such operator, is generally known and
recognized by the hotel industry as not having substantially declined, as of the time in
question, in comparison to their reputation for quality and quality of operation as of the
effective date of the Lease or P3/Management Agreement: Marriott (e.g., the Marriott,
Marriott Marquis or JW Marriott brands), Westin, Omni, Hyatt Regency, Sheraton, La
Meridien, or Hilton, or(b)any other hotel operator Approved by City in its sole discretion.
r. The Hotel Project shall be designed with the objective of meeting LEED Gold certification
standards. In addition, the Hotel Project must be developed to comply with the City's
Resiliency Standards attached as Appendix E.
4. Room Block Requirements. The Developer must agree, and must cause any hotel operator
to agree, to the following minimum room block agreement ( Room Block Agreement") terms:
a. A City-wide Event is an event requiring a three-night stay with at least 1,500 guest
RFP 2018-238-0 34
Page 1444 of 1842
rooms on peak with at least 115,000 gross square feet of MBCC space utilized for
one day or more while the event is being held. A City-wide Event shall also include
the annual Orange Bowl and any Super Bowl, even though It may not utilize the
MBCC.
(i) For City-wide Events that are to occur at least 30 months in the future,
Developer will make available for City-wide Events eighty percent(80%)of all
guest rooms (and associated suites), for up to 14 nights per calendar month.
Developer can book rooms in excess of that amount at its discretion, at the
rate of its choosing.
(H) For City-wide Events that are to occur between 18 and 30 months in the
future, Developer will make available for City-wide Events eighty percent
(80%) of all guest rooms (and associated suites) if rooms and space are
available, and will make available for City-wide Events eighty percent (80%)
of all guest rooms (and associated suites) for one consecutive four-day
period each month. The Developer will determine the four-day period and will
notify City on a monthly basis. Developer can book rooms in excess of that
amount at its discretion, at the rate of its choosing.
b. Room Block Release
(i) City and the Greater Miami Convention & Visitors Bureau ("GMCVB") will
provide Developer a list of known release dates on a periodic basis (not less
than semi-annual) listing all future dates the Center cannot be utilized for
City-wide Events due to maintenance, move in/out periods, or any other
reason ("Known Release Dates'). Developer will be free to book 100% of the
rooms on any of these dates. If a Known Release Date is removed on a
subsequent list, the date(s) will fall back under this room block agreement
unless the Developer has already booked such dates(s).
(ii) Developer can seek a release of rooms from the City for in-house groups in
the 30 months and out period, and such release will be given unless (i)
City/GMCVB is actively negotiating with another group for the period covered
by the request for release or (ii) City/GMCVB has historically booked the
dates covered by the request for release to a City-wide Event. If a release is
given and a subsequent City-wide Event desires to use the previously
released dates, Developer will use its best efforts to accommodate the needs
of the proposed City-wide Event.
c. Room Block Pricing (excluding Super Bowl and Orange Bowl)
(i) Developer shall submit its initial offer to participate in a City-wide Event room
block at a rate determined in Developer's sole discretion ("Initial Offer").
(ii) Developer shall submit each January 1 a Minimum Event Block Rate
Schedule (hereinafter defined) and Special Event Block Rate Schedule
RFP 2018-238-KB a5
Page 1445 of 1842
(hereinafter defined) for each day for the next five years.
(iii) The Minimum Event Block Rate Schedule shall be 105% of Developer's good
faith forecast of the group room rates that will be included in the pro forma
budget or that are used in projections or forecasts by Developer in making its
decisions, and planning for, group bookings in the operation of the Hotel.
(iv) The Special Event Block Rate Schedule shall be 100% of Developer's good
faith forecast of the group room rates that will be included in the pro forma
budget or that are used in projections or forecasts by Developer in making its
decisions, and planning for, group bookings in the operation of the Hotel.
(v) For up to 14 nights per calendar month, if prior to acceptance of the Initial
Offer, City reasonably and in good faith believes that it might be in the City's
best interest to require the Developer to offer a City-wide Event an alternative
rate structure, City may elect to require the Hotel to offer a rate lower than the
rate in the Initial Offer, but in no event lower than the rate in the Minimum
Event Block Rate Schedule. If the City-wide Event occurs beyond the five-
year schedule, the Minimum Event Block Rate shall be determined using a
usual and customary industry inflation factor as reasonably agreed upon by
Developer, Operator and City.
(vi) For up to six City-wide Events per year, if prior to acceptance of the Initial
Offer the City reasonably and in good faith believes that it might be in the
City's best interest to require the Developer to offer the City-wide Event an
alternative rate structure, City may elect to require the Hotel to offer a rate
lower than the rate in the Initial Offer, but in no event lower than the rate in
the Special Event Block Rate Schedule. If the City-wide Event occurs
beyond the five-year schedule, the Special Block Rate shall be determined
using a usual and customary industry inflation factor as reasonably agreed
upon by Owner, Operator and City. City-wide Events utilizing this clause
count toward the maximum 14 nights per month subject to this room block
commitment.
d. Rooms booked pursuant to the Room Block Agreement will be subject to the normal
booking policies of the Developer, including advance deposits, cancellation periods
and cancellation fees, etc.
e. The City intends for the Room Block Agreement to constitute a restriction against the
Hotel Site, running with the land.
f. Term shall continue until the earlier to occur of the following events: (i) the
Convention Center is no longer designated by the City as its principal convention
center, or (ii) the Convention Center is no longer operated and maintained in a
manner consistent with other first-class convention centers, with the standard for
same to be set out in the Room Block Agreement.
RFP 201 B-238-KB 36
Page 1446 of 1842
6. Option A: Hotel Site 1 - Development and Ground Lease Agreement: The form of the
City's Development and Ground Lease Agreement is attached as Appendix L hereto, and
incorporates, among other terms, the Hotel Project requirements outlined in Appendix C, and the
form of the City's Room Block Agreement and Easement Agreements, among other terms
proposed by the City, including with respect to the following:
a. Term of the Agreement.
b. Lease payment and related terms.
c. Developer's evidence to City of the required private debt and equity financing.
d. Mechanisms for funding Developer's equity and private debt.
e. Coordination of scheduling of construction of the MBCC, Convention Center Drive,
and Hotel Project.
f. The outside date by which all conditions for possession of the Hotel Site must take
place; outside date for Developer's construction loan closing; target dates for
construction, including outside date for commencement of construction and
completion of construction, and opening date for the Hotel.
g. Covenant to continuously operate a full-service convention hotel and limitations on
the right of the Developer to change the Brand/Operator without prior City
approval, except to other Approved Brand/Operators.
h. Design development and planning for the Project, including:
i. The Developer's responsibility for the planning, design, development and
construction of the Hotel, including the selection, engagement and
payment of architects, consultants, contractors, subcontractors and others
engaged in connection with planning, development and construction of the
Hotel.
ii. The City's role, in its proprietary capacity, in reviewing and providing input
to the conceptual plans, design development plans, and final plans and
specifications relating to the Hotel Project. The Lease will require prior
City approval of any material change to the City approved plans.
Notwithstanding the foregoing, the Developer shall be solely responsible
for obtaining all required final, non-appealable approvals in accordance
with the City's Land Development Regulations.
iii. Adherence to the minimum parking requirement and 185 foot height
restriction.
iv. Developer's obligation with regard to construction, operation, and
maintenance of the Hotel Project, including Skybridge.
i. Execution of Ancillary Agreements
i. Execution of the Room Block Agreement and the joinder therein by the
Brand/Operator.
ii. Execution of the Easement Agreements.
7. Option B: Hotel Site 1 - P3IManagement Agreement.
a. Under this Option B, for a City-owned Hotel Project, the City contemplates that it will enter
into a "P3" or design-build-finance-operate-maintain Agreement with the Developer, and an
agreement with a national hotel operator (the "flag" of the Hotel) for the management and
operation of the City-owned hotel, as provided more fully below, and the Room Block
RFP 2018-238-KB 37
Page 1447 of 1842
Agreement. Depending on the financing structure utilized, the City may also enter into a bond
purchase agreement, and/or trust indenture specifying, among other matters, the terms and
conditions for the repayment of the bonds (as set forth above, collectively, the above
agreements shall be referred to as the "P3/Management Agreement")
b. If the Developer proposes tax-exempt Hotel revenue bond financing to fund the design and
construction of the Hotel Project, the agreement for the management of the Hotel should, to
the fullest extent possible, endeavor to meet all requirements of the Internal Revenue Code for
"qualified management agreements," which, among other terms, cannot exceed a maximum
period of thirty (30) years. The P3/Management Agreement shall also require the Developer
(and the hotel operator) to abide by the terms of the Room Block Agreement, in the same
manner as provided under a Lease structure.
c. The City shall not provide, nor should Proposers rely on, any public funding or debt service
guarantees for the Hotel Project, other than the issuance of taxable or tax-exempt Hotel
revenue bonds (to be issued by either the City or a Developer-related entity), on a non-
recourse basis ("Hotel Revenue Bonds'). Any bond validation proceeding with respect to the
issuance of Hotel Revenue Bonds, if any such proceeding is deemed to be advisable or
beneficial by the City, shall be at the Developer's sole cost and expense. The City's
expectation is that the Developer's equity contribution and Hotel Revenue Bonds, if any, will be
sufficient to complete the development, design, construction, and FF&E of the Hotel Project.
d. In connection with the funding or financing of the Hotel Project, the City's role will be limited
to making payments derived from Hotel profits as required under the bond purchase
agreement/TrustIndenture.
e. Required Approvals for P3/Management Agreement: Pursuant to Section 1.03(f) of the City
Charter, a P3/Management Agreement having a term of ten years or longer for the
management, operation or use of City-owned property or City-owned facility, shall require
approval by a 4/7ths vote of the members of the City's Planning Board, and a 6/7ths vote of the
City Commission. At the City Commission's sole option and discretion, the City Commission
may require, as a condition of its approval of the agreements for a P3/Management Agreement
structure under this Option B, for the P3/Management Agreement to be subject to and
contingent upon approval by a majority of the voters voting thereon in a non-binding (i.e., straw
ballot) City-wide referendum.
f. The Hotel Site shall remain City-owned property at all times, and the Hotel Project shall be a
City-owned facility. Accordingly, as this "P3" project involves a design/build component for a
City-owned facility, the City has designated its Public Works Department to serve as its Design
Criteria Professional in accordance with the requirements of Fla. Stat. 287.055. The DCP will
be issued by Addendum to this RFP.
g. Under Option B, as the Hotel Project would be City-owned, Developer shall comply with the
City's prevailing wages requirements applicable to City construction projects, as set forth in
Section 31-27 of the City Code.
RFP 2018-238-KB 38
Page 1448 of 1842
8. Option C: Hotel Site 2— Development and Ground Lease Agreement.
a For Option C, for a Lease of the Hotel Site 2, the City's intent is to maximize the number of
rooms available for the Hotel Project, to achieve approximately 800-1100 separately keyed
guest rooms.
b. Under Option C, which includes the area where the Gleason Theater is currently located,
the City will consider proposals for a Hotel Project that either:
(i) renovates and keeps the existing Gleason Theater main building
physically and operationally intact (with appropriate ingress/egress thereto), and utilizes
the remaining Hotel Site 2 areas surrounding and/or above the existing Gleason Theater
for the Hotel Project; or
(ii) utilizes the existing Gleason Theater footprint for the Hotel and
surrounding Site 2 areas, provided that Developer, prior to construction of the Hotel, shall
develop, design, and construct, a new City-owned performing arts theater within the
boundaries of Hotel Site 2, containing a minimum of 2,460 seats, and associated lobby
spaces, meeting areas, kitchen, office, and back-of-house spaces, and loading dock areas
(the "New Gleason Theater"). Additional details regarding the program for the New
Gleason Theater are below.
Under either of the above scenarios, the City seeks proposals that incorporate a potential
physical connection between the Hotel Project, and the Gleason Theater(or New Gleason
Theater), so as to physically and functionally connect the MBCC with the Hotel (via the
Skybridge and Room Block Agreement), and to further connect the Hotel with the Gleason
Theater under an integrated "campus"-like approach pursuant to the Lease.
c. The Hotel (and any New Gleason Theater, if part of Developer's proposal), shall have a
maximum height of 185 feet.
d. The Gleason Theater is currently operated by Live Nation, and its management agreement
with the City expires on August 31, 2022. Under Option C, the City will consider proposals
that include the management and operation of the Jackie Gleason Theater (or New
Gleason Theater) following the expiration of the City's current Management Agreement
with Live Nation. Unless otherwise mutually agreed to with Live Nation, the Lease under
this Option 3 shall be effective following the expiration of the Live Nation agreement on
August 31, 2022, and no construction or renovation work may take place at the Gleason
Theater except as provided in the City's agreement with Live Nation, as amended. For a
copy of the City's agreement with Live Nation (and amendments thereto), see Section
C3.2 below,Additional Documents.
e. The construction work under Option C should be phased in a manner that, to the fullest
extent possible, permits the Gleason Theater to remain in operation. If a proposal
contemplates construction of a New Gleason Theater, the City's preference is that any
New Gleason Theater should be constructed before the Hotel, with the Hotel to be
constructed on the footprint for the existing Gleason Theater following the opening of the
New Gleason Theater.
f. As with Hotel Site 1, the Hotel Site 2 includes the 555 17th Street building and the Gleason
Theater annex or "blackbox" area located behind the main Gleason Theater area.
RFP 2018-238-KB 39
Page 1449 of 1842
Developer to be responsible for demolition of the foregoing areas, and any existing
structures where the Hotel will be built.
g. If Developer's proposal is for the Gleason Theater to remain at its current footprint,
Developer to be responsible, in addition to the renovation of the Gleason Theater, for the
design, permitting and construction of certain off-site improvements, including enclosing
the Gleason Theater in the area of the demolition. Developer to be responsible for any
reconfiguration of loading dock areas for the Gleason Theater, if any is required to
accommodate the Hotel Project, (and provided, however, all Hotel Project plans, including
reconfiguration of loading areas, shall be subject to the City Commission's approval at its
sole discretion).
h. The Developer will be provided a non-exclusive easement to the service lane that currently
services the MBCC South loading docks and Gleason Theater loading docks (if the
existing Fillmore loading docks are maintained).
i. Program Summary for New Gleason Theater. If Option C proposes construction of a New
Gleason Theater, the program scope be designed for large scale productions with
amplified sound, and include the following:
c Performance Spaces
• Auditorium-orchestra floor, parterre, box seat areas, balconies
• Stage—main stage, apron, stage sound and light locks
• Galleries — load gallery, fly gallery, operating gallery, mid galleries,
counterweight pit, auditorium catwalks
• Under stage — orchestra pit/forestage, orchestra pit overhang, chair
wagon storage area, lift pit, trap room, orchestra pit sound and light locks
• Overhead—grid,forestage grid
• Control rooms — lighting control booth, sound control booth, follow spot
booth, viewing room/aux control
• Noise level criteria -PNC 25
• Services — dimmer room, sound rack room, sound cockpit mix position,
cockpit seat storage, cockpit lift pit
o Temp broadcast room
o Stage Support
• Common—janitors' closets, crossover corridors
• Storage — scenery storage, rigging tools storage, prop storage, lighting
storage, sound storage, shell storage, piano storage
• Stage offices—stage management, visiting production office
• Staff rooms—Crew lockerlready room
• Restrooms—crew washrooms/showers, off-stage washrooms
o Performers' Support
• Dressing rooms—star suite, dressing rooms, chorus dressing room
RFP 2018238-KB 40
Page 1450 of 1842
• Musicians— musician changing, conductor
• Wardrobe—wardrobe maintenance, laundry, wigs and makeup
• Common — performers lounge kitchen,janitors closets
o Services - loading bays, loading docks/aprons, transfer/assembly area (scene
store), freight elevator, garbage disposal.
RFP 2018-238-KB 41
Page 1451 of 1842
C3. Background.
1. Miami Beach Convention Center Renovation: The City is renovating and expanding the MBCC to
"Class A" standards. In general, the MBCC Project includes all exhibit halls (500,000 sf), meeting
rooms, pre-function, and support spaces such as loading docks, kitchens, bathrooms, MEP systems,
and exterior areas. In addition, the MBCC is to be expanded to accommodate a new 60,000 square
foot ballroom and additional meeting space. Upon completion the MBCC is to offer 186,900 square
feet of ballroom and meeting space. The Project will likely also include the conversion of approximately
880 surface parking spaces in the "P-Lot" into a 6-acre public park. Convention Center Drive and the
Collins Canal seawall will be refurbished. New parking replacing the existing spaces will be
incorporated on the roof of the building.
•
2. Additional Documents: The Design Criteria Package for the MBCC Project may be accessed at
https: (http site will be provided by Addendum):
Prospective Proposers may access the following additional information about the Hotel Site and MBCC
Project at https: (http site will be provided by Addendum):
a) Hotel Site 1 Draft Survey;
b) Hotel Site 2 Draft Survey;
c) MBCC Design Criteria Package civil drawings related to Hotel Site 1;
d) Geotechnical reports related to the MBCC site;
e) Amaresco geothermal system record documents (the system was decommissioned in 2016-2017)
f) 2015 Phase I and Phase II environmental Study for the MBCC site;
g) 2015 Limited Site Assessment Report for the Hotel Site 1;and
h) 2015 Asbestos demolition survey of the portion of the Gleason Theater to be demolished and the
555 17th Street building;
i) 2018 Re-certification assessment of existing conditions of the Gleason Theater;
j) Management Agreement(and amendments)between City and Live Nation Worldwide, Inc.
k) MBCC Attendance Data
Additional Documents,including a Design Criteria Package to the extent required by Florida
Statute 287.055,shall be released by addendum to this RFP.
3. No Warranties or Representations By City. Any information provided by City under this RFP is
solely to provide background information for the convenience of the Proposers. City makes no
representations or warranties, express or implied, of any kind whatsoever with respect to any of the
matters identified in this RFP or exhibits thereto, including but not limited to the matters referenced in
this Appendix C.
RFP 2018-238-KB 42
Page 1452 of 1842
APPENDIX D
Prevailing Wage and
Local Workforce
Participation Program
2018-238-KB
FOR THE DEVELOPMENT OF A CONVENTION
HOTEL ADJACENT TO THE MIAMI BEACH
CONVENTION CENTER
PROCUREMENT DEPARTMENT
1755 Meridian Avenue, 3rd Floor
Miami Beach, Florida 33139
RFP 2018-238-KB 43
Page 1453 of 1842
The Requirements of the
Prevailing Wage and Local Workforce Participation Programs
shall apply to the award of this project.
The purpose of this appendix is to summarize, for clarity, the requirements of the City's
Prevailing Wage and Local Workforce Program Requirements. In the event of any omissions or
conflicts, the requirements of the City Code, with respect to these programs, shall prevail.
I. MINIMUM WAGES AND BENEFITS
1. Employee Compensation. The rate of wages and fringe benefits, or cash equivalent, for all
laborers, mechanics and apprentices employed by the contractor or subcontractor on the work
covered by the contract, shall be not less than the prevailing rate of wages and fringe benefit
payments or cash equivalence for similar skills or classifications of work as established by the
Federal Register last published by the United States Department of Labor prior to the date of
issuance of this solicitation. (reference: Sec 31-27).
2. Notice Requirement. On the date on which any laborer or mechanic commences work on a
construction contract to which this article applies, the contractor shall be required to post a
notice in a prominent place at the work site stating the requirements of this article. (reference:
Sec 31-29).
3. Certified Payrolls. With each payment application, Contractor shall submit a copy of all
payrolls, including (at a minimum) the name and zip code for the covered employee, to the City
accompanied by a signed "Statement of Compliance" indicating that the payrolls are correct
and complete and that each laborer or mechanic has been paid not less than the proper
prevailing wage rate for the work performed. Beginning, January 30, 2018, all payroll submittals
shall be completed electronically via the City's electronic compliance portal, LCP Tracker. No
payment application shall be deemed accepted until such time as the Procurement Department
has confirmed that a certified payroll for the applicable payment application has been
accurately submitted in LCP Tracker.
a. LCP Tracker Training. The Procurement Department offers ongoing training in LCP
Tracker to all contractors. To schedule a training session, contact Alian Gonzalez at
AlianGonzalez@MiamiBeachFL.gov or at 305-673-7490.
RFP 201 8-238-KB
44
Page 1454 of 1842
II. LOCAL WORKFORCE PARTICIPATION GOALS
1. Responsible Contractor Affidavit. As a condition of being responsive to the
requirements of the solicitation and eligible to be considered for award, the bidder shall
submit a Responsible Contractor Affidavit. The Responsible Contractor Affidavit (RCA) is
comprised of two (2) forms— RCA-Part A and RCA-Part B. Both forms are required to be
submitted with the bid or within 48 business hours of being notified by the Procurement
Contracting Officer for the solicitation. Failure to submit the RCA shall result in the bid
or proposal being disqualified and deemed non-responsive.
a. Part A—Commitment to Promote Local Workforce Participation. The contractor, and
each subcontractor, shall submit RCA-Part A affirming that it will make its best
reasonable efforts to promote employment opportunities for Miami-Dade County
residents by seeking to achieve a project goal of having thirty percent (30%) of all
construction labor hours performed by Miami-Dade County residents. The contractor
shall also affirm that it will make its best reasonable efforts to promote employment
opportunities for Miami Beach residents. To download RCA-Part A affidavit, visit
miamibeachfl.gov/procurement/local workforce.
b. Part B — Position / Employee Data. The contractor, and each sub-contractor shall
submit RCA-Part B with the following sections completed:
• Section 1 — Indicate the number of positions required to complete the contract
work, and the minimum qualifications) for each position.
• Section 2— For the positions indicated in Section 1, specify the name, address,
and position of each current employee of the contractor or subcontractor.
• Section 3 - For the positions indicated in Section 1, not indicated in Section 2,
each contractor or subcontractor shall specify the number of positions, and the
minimum qualification(s) for each position, that the contractor or subcontractor
shall seek to hire to supplement the current employees listed in Section 2.
To download RCA-Part B form, visit miamibeachfl.gov/procurement/local workforce.
3. Workforce Performance Report. Before its final application for payment, the contractor shall
submit its final Certified Payroll in LCP Tracker, which shall be deemed its final Workforce
Performance Report. If the project goal of thirty percent (30%) of all construction labor hours to
be performed by Miami-Dade County residents is not met, the Contractor shall submit
supporting documentation verifying reasonable efforts to promote employment opportunities
for Miami Beach and Miami-Dade County residents. No final payment application may be
approved without this information.
RFP 2018-238-KB
45
Page 1455 of 1842
III. PROCESS FLOW
The following graphic outlining the major steps of the Prevailing Wage and Local Workforce
Participation programs is provided illustrative purposes only.
6. Contractor
submits
Workforce
Performance 1.Bidder submits a
Report prior to bid or proposal.
submittal of
final payment
iik
application. iliSk
2.With is bid or proposal,
5. Projecct bidder submits Responsible
Completed. Contractor Affidavit Parts A
and B.
‘ I 4.Prior to
submitting
every payment
application, 3.Protect
Contractors Awarded_
submits
Certified
Payrolls in LCP
Tracker.
Balance of Page Intentionally Left Blank
RFP 2018-238-KB
46
Page 1456 of 1842
LOCAL WORKFORCE PARTICIPATION PROGRAM
Responsible Contractor Affidavit Form
Part A — Commitment to Promote Local Workforce Participation
In accordance with Article III, Section 31-40 of the Miami Beach Code, all contractors and subcontractors of any tier performing on a city
contract valued in excess of$1,000,000 for(i)the construction,demolition,alteration and/or repair of city buildings or sty public works projects,
or (ll) a contract valued in excess of $1,000,000 which provides for privately-funded construction, demolition, alteration and/or repair of
buildings or improvements located on city-owned land, and which are subject to Section 31-40 of the Miami Beach Code shall comply with the
requirements of the Local Workforce Padlcipation Program.
Theundersigned Contractor affirms that, should it be awarded the contract pursuant to this solicitation, it shall
comply with the following:
i. The contractor will make its best reasonable efforts to promote employment opportunities for local Miami-
Dade County residents and seek to achieve a project goal of having thirty percent (30%) of all construction
labor hours performed by Miami-Dade County residents.
ii. The contractor will also make its best reasonable efforts to promote employment opportunities for Miami
Beach residents. To verify workers' residency, contractor(s) shall provide the residence address of each
worker.
Print Name of Affiant Print Title of Affiant Signature of Affiant
Name of Firm Date
Address of Firm State Zip Code
Notary Public Information
Notary Public—State of County of
Subscribed and sworn to (or affirmed) before me this day of, 20
by He or she is personally known to me ❑ or has produced identification ❑
Type of identification produced
Signature of Notary Public Serial Number
Print or Stamp of Notary Public Expiration Date Notary Public Seal
RFP 2018-238-KB 47
Page 1457 of 1842
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APPENDIX E
Resiliency Standards
2018-238-KB
FOR THE DEVELOPMENT OF A CONVENTION HOTEL
ADJACENT TO THE MIAMI BEACH CONVENTION
CENTER
PROCUREMENT DEPARTMENT
1755 Meridian Avenue, 3rd Floor
Miami Beach, Florida 33139
AADSLAW-0002509720 AADSLAW-00025097.9 ❑
49
Page 1459 of 1842
The City of Miami Beach requires all new construction over 7,000 square feet or ground floor additions to existing
structures that encompass over 10,000 square feet of additional floor area to be LEED Gold Certified or have Living
Building Challenge certification.
The City's goal is to design, build, and operate a new generation of efficient, environmentally responsible,
healthy and resilient buildings, as well as to reduce the City's greenhouse gas emissions. The practice of
green building can have a significant impact on reducing energy, water, natural resource consumption,
GHG emissions and improve our citizens' and visitors' well-being through improved indoor air quality and
comfort.
A resilient building should incorporate the following elements:
• Increase energy efficiency in buildings and reduce greenhouse gas production and emissions;
• Encourage water and resource conservation;
• Reduce waste generated by construction projects;
• Reduce long-term building operating and maintenance costs;
• Improve indoor air quality and occupant health;
• Maximize the use of green and blue infrastructure to treat, retain, and manage stormwater,
• Utilize native vegetation and trees to maximize natural infrastructure throughout the site;
• Consider the stresses of climate change, including but not limited to extreme heat and frequency
and severity of storms when designing for function and form;
• Utilize the South Florida Climate Change Compacts Unified Sea Level Rise Projection when
considering elevations of the site;
• Utilize public art and placemaking opportunities to enhance the resiliency of the site;
• Placemaking should incorporate business and marketing opportunities; community aesthetics,
cultural identity, and cohesion, and serve to brand the City of Miami Beach as a resilient City.
• Encourage sound urban planning principles
Resiliency design principles should be incorporated into the design and construction of Convention Center
Hotel. These include:
• Robust design is well-conceived, constructed and managed and includes making provision to
ensure failure is predictable, safe, and not disproportionate to the cause. For example, protective
infrastructure that is robust will not fail catastrophically when design thresholds are exceeded.
• Redundancy: refers to spare capacity purposively created to accommodate disruption due to
extreme pressures, surges in demand or an external event. It includes diversity where there are
multiple ways to achieve a given need.
• Flexibility: refers to the willingness and ability to adopt alternative strategies in response to
changing circumstances or sudden crises. Systems can be made more flexible through introducing
new technologies or knowledge, including recognizing traditional practices.
• Integrated: processes bring together systems and institutions and can also catalyze additional
benefits as resources are shared and actors are enabled to work together to achieve greater ends.
AADSLA W-00025099 20 A ADS!A W-00025097.9 13
50
Page 1460 of 1842
APPENDIX F
Site Diagram /Survey for
Hotel Site 1 ( DRAFT)
( Option A and Option B )
2018-238-KB
FOR THE DEVELOPMENT OF A CONVENTION HOTEL
ADJACENT TO THE MIAMI BEACH CONVENTION
CENTER
PROCUREMENT DEPARTMENT
1755 Meridian Avenue, 3rd Floor
Miami Beach, Florida 33139
AADSLAW-0002309720 AADSLAW-000250979 13
51
Page 1461 of 1842
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52
Page 1462 of 1842
APPENDIX G
Site Diagram/Survey
for Hotel Site 2 ( DRAFT)
( Option C )
2018-238-KB
FOR THE DEVELOPMENT OF A CONVENTION HOTEL
ADJACENT TO THE MIAMI BEACH CONVENTION
CENTER
PROCUREMENT DEPARTMENT
1755 Meridian Avenue, 3rd Floor
Miami Beach, Florida 33139
AADSLAW-0002509720 AADSLAW-00025099.9 13
53
Page 1463 of 1842
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AADSLAW-0002509].20 AADSLAW-000250979 13
54
Page 1464 of 1842
APPENDIX H
Miami Beach STR Market
Data
2018-238-KB
FOR THE DEVELOPMENT OF A CONVENTION HOTEL
ADJACENT TO THE MIAMI BEACH CONVENTION
CENTER
PROCUREMENT DEPARTMENT
1755 Meridian Avenue, 3rd Floor
Miami Beach, Florida 33139
AADSLAW-0002509720 AADSLAW-00025097.9 13
55
Page 1465 of 1842
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9931 lif 45'192140 Por[Hole! Miami Beac-_FL 33139 Mar 2016 J.r 1935 151
t4147fr F-1c na .Intel tit;arm beach Man, deaar,F- 33140 Nov2016 N,.v 2015 0750
29886 SengLh Hate: Allan:Beach.FL 33139 Mat 2011 01-4 1993 172
6 885 0a49a.rd. Ap..-.mutt Hotu Miam •li:11' F! 33140 Apr 2011 Apr 2011 IS0
46296 Poe hall South Bench Mlamr Beacc.FL 33139 .an 29'7 Jvn 1940 159
n t . ,- ..oast Suites MMnrn Be, FL 33140 on 20th .:,I^ 1965 `55
'9934 Y 440,0.5: Hotel Moan lecr.n.FL 553139 Sap 2613 -n 1939 r547
6946 Wv era South Boecn Mame 94454*,FL 33139 Sar 2999 Jar'2009 150
53501 AC h¢ec by Marcort Miami Beach MMam Beach FL 33140 _un2015 Jun 2015 150
19059 Lcx-o9Iu Miami Beach M11 aril:3eaco,FL 33140 .4.1 2016 641 '968 143
20274 SLS Hotel South Beach M,amr Beacr.FL 33139 Jun 2012 J2n '940 140
5277 the Seta' Mani ,.,• .FL +3134 Os 2404 0440 2001 135
35433 LVlcneaer Hotel&Bullas Miari Beach.FL 33139 Ca. 1940 Jac '940 127
44111 t no Betsy Hotel Mian]Beach.FL 331919 Apr 2009 42n 956 126
48153 Clay llate! Morn!Beaco,FL 33139 Jun 1925 J47 •9255 120
19943 Best W estem On The Bay Inn&Marina North Bay Village,FL 33141 Apr 1996 Jul 1972 118
54759 Residence inn Miami Beach South Beach Miami Beach.FL 33139 Mar 2916 Mat 2916 116
71915 Maisel les Hotel Mame Heanh.Ft 33139 .nn 1946 „rm0946 113
53 PoreCrnydur Mamr Beach FL 53140 cur 2014 'dr 2014 313
1010 .9 out,r,Seas Hotel Mete:Bea:rl-FL 33139 May 197 May 1Mr.7 112
'2797 The Aexander All Sete Oceanfront Resod 141-an4 Beach.FL 33140 Jur 1962 _,.. 1962 110
AADSLAW-00112509,20 AADSLAW-00025097 9 ❑
56
Page 1466 of 1842
STR Open
Codo Name of Establishment City Si State Zip Code Aft Date Date Rooms
B Spa Mart:apart,Fl. 3314i Nov 2 . Nn 21 5 'ifl
531 Cream Ssut5 Bca:i lel on laa.9 F 33139 May 1;1'. _ . _
C4030 I-yen Cent.:' oath Beach M am. .lento.F- 5315. p 26 3 t 35
82 leamotor rip Ml mi Death Md E.each Maur 3eas1.FL 3314CC JC C2
422)4 15m vis Hotel NI am ..r.Fl. ;a1,11 Dot,� . . r , n
35 I A :91 il',91 M act r,a:n.1L 331 .a
rw Pev�c..to h4an F. . 19. r J :LIl-
93r 1
l-
: r1 Tat St , v ; 9es .r. ra ,u 'ei. Nl sin 1 �,1:C F, 91.9 e. _ Vao lf..n _n
C3975 preapsIdehotel Man. eo..^-FL 33143 _--_
35a1 I Aswrd ColecticP''Me ar la vmt r 55 u:n Esau NI am Beam-.FL 3313C O :2- Leo 1997
CP.M9 1es:ormli.uIh+sarr Ar' en4^tal ATern 6F. F'. 331Se ha.
I15h _.1J.. MArk 8ea .FI :t'4+ ..r v�
4 I ,r __t teley lot11 Mari.Hoe r FI a .1 AJ.21'1/ g n 21 1 ' 911
e40,04 Hems Gp•t9el as 4Lar;, ,r:J Ram)) Mian Elea_..FL 39141 ., 1_ j-- IS 9P
51132.5Hi.Sas BeMley 3. ml Scut Beach Miam:Baca-.FL 33159 Dm 2007 -33.2014 B5
r
25801 Sagomore The Al Hotel Mlani Beaco_FL 33133 reb 2962 ,r 191= 93
/SAY :shame-rap Heipa Sn':ea R Spa rv5+3n F, p,_FL 3513a , 41P. 9)
Salpar RICGmon:r V_u Maim,,.Ice[' rL 99139 _ t" ..b .. n.
1/16 Lays sr uts khan'1.cam paas9).c ll .+N marl ,++. Hf :31.11 4;..I / r. 1F:p .
44742 Pole 9,mai c - th -,net M,am D3ac_FL 391"39 Nih,21I : r l 936 9'.
43915 C CLrryar.. Miami 3eaoe South 5 east Poem Beat^.FL 331.3 , Sec 2332 Sea 21._ 90
4 wroths"
Hotel Sputa Beacs Miaet_en .FL 33139 A .pr 20-3
€2h t 1.59le. S5arh H ..mh a Ragan'H. tel MianBea:.^ H 33t319 nso 211) - 2392 67
349 .5 SulySixty 4 ioaehheor Mian Mprp Beaer.. Fl :31.131 . I > I- sa-'591 82
>66 Beach Han. lulel3 Ymax Miaihr,Bac _H ,•I S5 _.t ,I _31 n
452855 San Juan hotel Mara Beach_FL 33133 76
34491 Au,ogral Cul ustssi B'Lv M on 1:ci:: 61 arm Sear-. E. 33139 J..;2 L 2 .:Jr .1934 75
35733 Beacorc Ho21 M am,Beach.F_ 53139 Jr... 1937 _3r '937 75
52/135 GOMO M h amslan V'5m I Beach NI anp Beach.F_ 33140 1.1 Ah 2%;4 /4
43619 Red South Bea-.5 Hotel Mam Beach FL 33140 74
39070 rhe Hote, 01 Salar beacrl Marta aoa_r.PI. 3t133 ., ' 491 1939
43731 Parisian Hotel Mia m:Seacr.FL 331999 Mar 2CC3 72
64856 El Pasec Here Mialm Bea:h,FL 53139 Cep 2315 Dem 2015 71
29040 Essex House Hotai MM.aml Bench.FL 33139 Do: 1954 :an 193e 71
4901 Internatlwa; Inn tlnderbay 61.am+Haack FL 3.3141 71
1173 Autogl aph 115,Ierarm‘Hinder Haves M:oni Beach_FL 33135 Sep 211 Da: 11-19 10
46492 Townhouse Hotel Manu Map.Beach.FL 93139 9,9 I 94.5 los 1940. 70
05688 Urbanca The Merman Hotel M'oml Beacn.FL 399139 Aug 2316 Aug 2016 70
49434 Harnalpp ion Miami Susuth B ae61719 SU our Miam,Beac4 FL 33139 Sap 2/C15 Jur, 1948 69
35820 The Redbury Scum Beach Miami Beach,FL 33133 Nov 2013 Jun ;996 69
50077 The Cadt n Hale 1 M aml Beach.FL :13'9 pip 1:395 On 103a 61
44115 Crest Hotel Maml Beech.FL 33139 ,un :939 Jun 1939 65
46040 Lombardy Inn Motel Ni ani:Beach,P 0 33141 Pun 1960 Jun 1960 56
44121 President Hotel Mam'Beach,FL 33139 Jun 1997 Jun 1937 64
48236 RLIOnl Male Lord Bulluur NI pro Beach,FL. 53139 Feb 2095 Jun 1940 64
50314 Tropics Hole: Miami Beach,FL 33133 tun 1945 Jun 1945 '-
57245 Mannsa Hotel Mlamr Beach.FL 33141 Jon 2900 Jun 2000 60
648'_-'6 SeasIde Acartn_set Hotel Maim'Beach.FL 33141 Apr 21115 Apr 2015 50
5471)P Conga:sr. Hotel Scoth beach Mlanv Beach,FL 33139 6,L 2006 Feb 2005 59
35783 Kent Hotel Miami Beach.FL 33139 May 2001 Jun ;940 59
AADSL\W-000255097 20 AADSLA W-00025091.9 13
57
Page 1467 of 1842
STR Open
Code Name of Establishment City& State Zip Code Aft Date Date Rooms
1 . :v nrH':t rl A9isr- H, FI
33133
c .. : . _.. lobar fee IL e3'.,3 _ .0 a[ Fe
C I c an South Beach Miari Beaer Fu 5313; afft 2 _ I
A Lge St'e 1 ya Soc[h Beach Mam Sen: F. 03 _ v ... SS
a -va Fnm I:garr ia. -_FI .3139 _ ra: _I _ v. 5}
,nnt
. .a FI u.. nq-ar ' Fr 131,F` Sw . G]P. _4
.S.r. 84.e 883dr;s. Beach 7 TJ. _i rv1 8r 1 F 33'35 ..r ,c_2.33C 53
27'a Bee_h ^ace Level Alam Ren 87 it 03141 2306 _3
33430. 0511 Sc dm Beach •I ata Mira eci: .F' ge133 _ 39 410 'e39 .,
x3139 Sea. 11 r.Z:I4 p0
5 IC ad'.aHuhn ALan r a J', 0139o .. ^_Il
.,c o'y I'nlel h9nn ^.P, 301011 Nev 1fdm 1fe'e en
cae211 00d7 Pierre lt•duri alutic, .F_ 33148 Ake 20'2 Ma 2..2 _J
C 495 B. ach ,de Aoa^.men--loft, NI am eau^.F_ 3314,. Sec 2814 Sea 2014 a0
J B83 evtd4ltctel 8 Cafe 33133 995 ..1' 15:5 49
•1 Hete;Shelley Nlam 9„_^ F.. 3,318
r L3VeS7ellc l Sen , ah ikee0 lolnr a.." I . ...I39 .ar l . a . 202 4Y
10 'ar 184088.01,3t Snap Hoath A4am P -J -': e313'') i'the VC 1:311 nL
Alam 3,4d8 F. 3313e 2000 Ma- 'Ref:, 49
16ah-0 Beach Hecee Mar 335;^_F_ 33.140 Yot 200 Cc:20'8 49
M:am,3eacff.FL 33140 _.n 1939 .a 49
Mia elSee', H 331.8 1e .. .n 49
r4-4r..eAe cels Merl.Unfiad Fl 33139 A, 30,7 Ap'2, 0 43
ales." Hn'nl Miam f^_a..^ FL 33141 Co0-4018 ltet:Lit 4Ll
026 Ahoe l lett Mia re Beat 3,FL 33133 Nov 2016 Nov 2015 4e
ee 013 Aqua Hcte& S..ivr Merl juuan.FI_ 33130 _ 1 001 ..r s-c3 4h
35814 '.0 reenview rote'. Mian:3eaor_FL 33139 un 1939 -3 93S 45
Wird 8,4070.F' 33130 Ju 1939 de '939 45
L7205 F :cess Ann Hate' Mian Sea: FL 33139 _dr 1933 .0 '933 45
7039/ Kerpton Anglers M-3.-.v Scutt Beane Mam y^a^,r H 33130 Nay'2313 r 2001 44
432 IP Mercury South Beach Mary Bea tr.FL 33139 _-r 1975 33 975 44
'1737 Perjuin 140101 Miami Beau'__R. 33139 Lan 1948 .4. .948 44
20820 Roam Mate LNaldorf Mamy Beane_FL 33139 Sep 2011 ion 1937 44
11 f 1f, Pert Hnte Mam•-lefed FL 3139 an 1339 10, 4.
34433. Cartozo Hazed roam ee tr FL .3139 etaf 1939 dee 539 .13
34I344dd 3layalai South 13eauI Iv ort'Hoa-c H_ 3313U dr 1336 3uc '33C 43
13373 L1ncalr Arms Suites M.aml Beaor-FL 33139 Dec 2313 Dec 2013 43
33934 Hefei Astor AlurIn tteaddNi -I°L 33130 dun 1330 036 42
60956 Metropole South Beach M.amr Beat¢,FL 35139 Sep 2007 Sea 2007 42
4 J% See cne15'ea H4;°I Marm Beach.Fl 33139 8.0 19S3:;r '436 42
0293e Hote116 South Beaoh Al ami Beach.FL 33139 May 2311 May 2011 41
53854 Barbizon South(leach Al am[death,FL 33139 Jun 1031 _un 153+ 49
43243 Casa Faena Miami Beach.FL 33140 Jan 2009 A.02000 40
11775 Loraine Hotel Beath Reorl Miam'Seach,FL 33140 Jun 1350 Jac 1959 40
04534 Lux Hotel Miam.Beach Mlamr Beach.FL 33140 Dec 2015 May 1937 40
47363 Hawaii Hotel • Mlam'Beach_EL 33141 Jun 2008 ecva 1940 38
4404 Ascend( ll lir=btel Oilcan Al'aml peach,Fl 33139 Oct 2011 SUS 1094 35
73R tladof Holdl Hurl 50ach PL 33139 Juo 1941 J rn 7941 35
62591 Ocean Reef Suite6 Miami Beach.FL 33139 Jun 2309 Jun 2009 35
AADSLA W-0002_3097 20 AADSLAR'-00025097 9 13
58
Page 1468 of 1842
STR Open
Code Name of Establishment City B Slate Zip Code AH Date Date Rooms
3:3,61, 3(91 ro:H-1.•l h9ar1 .mom.H.. etly r '10; .2( '492
f N4n "'”, eled 0 Pr NO Marl i3an R 33139 _ u . '939 'ICN
r_e^ana Miam, r•.i am r 3eacr.rL 33140 Cm 2312 ,r .9'.0 33
43234 r .ya. :Thum 2 eon^,Icnca—r:el Mori 3eae^.F_ 3+139 r ,e , I- '.L a 32
53139 A. [ A4-22lh 2u
4r I h �n._-rbr- lolcl friar 3 ' F. X11 ip _ 'H' ..J +e F�
in Inn _ r 1 _ .".„
Man tni3nn, F. S3 139 1‘,4/2 .17 Alla 2117 29
L i, La HF.rmei Mari,3 F_ 33139 Ma 20'8 Nov 159n 2L
nn3.4e Coon E SS,.ten RI am N:-G: 3313D _a - 3 'a- '950 ...,
.4 . :BtlY s _ ill Sc
Ni mm.. . ll. 31311 I eb 21l'I 2]
nn Fin :2514 43 Lr:c Mir- 3.. 331 =. ., . r1 _9 2B
4I 1 nioyinur 35 33133 FobR Fob 2214 25
.r
4 Tote:St Augontne Chan ear.FL 33139 Js 1999 J..2( 1999 24
64725 Kao kahes Sc at' Bean- V ion -eoc^_FL 53139 Nev 2214 Nov2014 24
1 r M3eadL 1 Nh.]n .:., F1. %31 NI r . , '9P ..3
.3 r1 3.420'.7 22
1231 no RN 31nkH ivlierl nnorn H. 33139 nob X:14 fob 2::'4 22
44 . 3 Crily Futal Mian ,a_' fL :NCI 1:t1 .E- 1 4' :,i . fni4' 22
C0 53^'v.ere 53 on 6 c nn Hole MianT _e..c'.F/ Jai iur 2CO3 ..V'12053 ["
J each<kcse Mari FL 33139 May 200S May 2029 _
1 4 iH Sense Mclrl F..
-..31'M -.r 1932 JJn 1932
v M Lot3q v I ce,. Mian 9.". i 1 33141 May 2(312 May 2012 13
3 'Dile xnni Hon e.no autos! Moon mm., FL 41 2,;04 Jan 2004 10
43035 Ritz-Carlton South Beach Mrar1.ile3.^..EL 35139 tar 2019 Jan 2004
33430 The Raleigh Miami Beach Mimi fr.ay. CL 33139 Ma, 20'9 ,:42( 1940 0
2953E Courtyard Cadillac Miami Beach Oceanfront Mlami Hear^,FL 33140 Mar 20'8 Jun 1946 0
I r;lel P.apames 191 .9,92
AADSLA W-00025097 20 AADSLA W-00025097.9 13
59
Page 1469 of 1842
Mani Beach Markel Flotei Performance
spry, ! 1):e [..1)e okkg Ocyorkg. w.m vew 0. awn
•
�.I v., . ..1
Jr!a , r.,
Soarze.Smith 1ravel ae search POT Dar e;
rrm acN=l.,Motion
nADSLANL002500720 AADSI AW-1)0{}25(]919 13
60
Page 1470 of 1842
APPENDIX I
NOT USED
AAD51 AW{10025099,20 AADS AW-0002509'9 13
61
Page 1471 of 1842
APPENDIX J
Proposed Hotel Program
Areas Form
2018-238-KB
FOR THE DEVELOPMENT OF A CONVENTION HOTEL
ADJACENT TO THE MIAMI BEACH CONVENTION
CENTER
PROCUREMENT DEPARTMENT
1755 Meridian Avenue, 3rd Floor
Miami Beach, Florida 33139
AADSLAW-0OO2 09T20 AADSLAW-000250929 13
62
Page 1472 of 1842
Proposed Hotel Program Areas Form MARIA E GROUND FLOOR RETAIL
Units Square Feet Average Size
Guest Rooms _
Standard # SF SF
Suites # SF SF_
Hospitality Suites # SF SF_
Guest Support Areas SF _
Subtotal # SF SFJ
Meeting Facilities
Ballroom SF
Jr. Ballroom SF
Breakout Meeting SF
Total Leasable SF
Support SF
Subtotal SF
Food&Beverage
Outlet 1 Seats SF
Outlet 2 _ Seats SF
Outlet 3 Seats SF
Outlet 4 Seats SF
Parking Spaces SF
Ground Floor Retail Spaces SF
Lobby SF
Office SF
Pool SF
Spa SF
Fitness
Other SF
Subtotal SF
TOTAL SF SF
AM/SLAW-00025097.20 AADSLAW-00025097.9 13
63
Page 1473 of 1842
APPENDIX K
Proposed Theater Program
Areas Form
FORM TO BE PROVIDED BY ADDENDUM
2018-238-KB
FOR THE DEVELOPMENT OF A CONVENTION HOTEL
ADJACENT TO THE MIAMI BEACH CONVENTION
CENTER
PROCUREMENT DEPARTMENT
1755 Meridian Avenue, 3rd Floor
Miami Beach, Florida 33139
AADSLAW-000230972() AADSLAW-00025097.0 13
64
Page 1474 of 1842
APPENDIX L
Development & Ground
Lease Agreement
2018-238-KB
FOR THE DEVELOPMENT OF A CONVENTION HOTEL
ADJACENT TO THE MIAMI BEACH CONVENTION
CENTER
PROCUREMENT DEPARTMENT
1755 Meridian Avenue, 3rd Floor
Miami Beach, Florida 33139
AADSLAW-00025007 20 AADSLA W-00025097.9 13
65
Page 1475 of 1842
RFP APPENDIX L
DEVELOPMENT AND GROUND LEASE AGREEMENT
between
[PROPOSER]
and
CITY OF MIAMI BEACH, a
Florida municipal corporation
AADSLAW-00025097.20 AADSLAW-011025097.9 13
66
Page 1476 of 1842
TABLE OF CONTENTS
ARTICLE I 1
VOTER REFERENDUM,EFFECTIVE DATE AND DEFINITIONS 2
SECTION 1.1. VOTER REFERENDUM REQUIREMENT 2
SECTION 1.2. EFFECTIVE DATE 2
SECTION 1.3. DEFINED TERMS 2
SECTION 1.4. EXHIBITS 17
SECTION 1.5. INTERPRETATION 17
ARTICLE II 17
THE HOTEL PROJECT IMPROVEMENTS 17
SECTION 2.1. DEVELOPMENT AND CONFORMITY OF PLANS 17
SECTION 2.2. APPROVED PLANS 18
SECTION 2.3. LESSEE'S HOTEL PROJECT OBLIGATIONS 18
SECTION 2.4. PAYMENT OF HOTEL PROJECT COSTS 19
SECTION 2.5. FINANCING MATTERS 19
SECTION 2.6. No CLAIM FOR VALUE OF LESSEE IMPROVEMENTS 20
SECTION 2.7. SCHEDULE OF PERFORMANCE 20
SECTION 2.8. CONSTRUCTION OBLIGATIONS 20
SECTION 2.9. PROGRESS OF CONSTRUCTION/CITY'S REPRESENTATIVE 22
SECTION 2.10. DELIVERY OF PLANS 23
SECTION 2.11. CONNECTION OF BUILDINGS TO UTILITIES 23
SECTION 2.12. PERMITS AND APPROVALS 23
SECTION 2.13. CITY AND LESSEE TO JOIN IN CERTAIN ACTIONS 23
SECTION 2.14. COMPLIANCE WITH LAWS 23
SECTION 2.15. ALTERATIONS AND RENOVATIONS 23
SECTION 2.16. ART IN PUBLIC PLACES 24
ARTICLE III 24
LAND USES AND DEVELOPMENT OBLIGATIONS 24
SECTION 3.1. COVENANT REGARDING LAND USES 24
SECTION 3.2. APPLICATIONS FOR DEVELOPMENT APPROVALS AND DEVELOPMENT PERMITS 24
SECTION 3.3. CONCURRENCY 24
SECTION 3.4. COMPLIANCE WITH LOCAL REGULATIONS REGARDING DEVELOPMENT PERMITS 24
SECTION 3.5. CONSISTENCY WITH THE CITY'S COMPREHENSIVE PLAN 25
SECTION 3.6. PRESENTLY PERMITTED DEVELOPMENT 25
SECTION 3.7. PUBLIC FACILITIES TO SERVE THE LEASED PROPERTY 25
SECTION 3.8. PUBLIC RESERVATIONS,DEDICATIONS 25
SECTION 3.9. REQUIRED DEVELOPMENT PERMITS 25
SECTION 3.10. RESPONSIBLE WAGES AND LOCAL EMPLOYMENT 25
SECTION 3.11. LAWS GOVERNING THIS LEASE 25
SECTION 3.12. DURATION OF DEVELOPMENT RIGHTS 26
SECTION 3.13. LESSEE'S RIGHT OF TERMINATION 26
ARTICLE IV 26
GENERAL TERMS OF LEASE 26
SECTION 4.1. LEASE OF LEASED PROPERTY TO 26
SECTION 4.2. RESTRICTIVE COVENANTS 29
SECTION 4.3. REPRESENTATIONS 31
SECTION 4.4. RENT AND OTHER PAYMENTS 31
SECTION 4.5. COVENANTS FOR PAYMENT OF PUBLIC CHARGES BY LESSEE 35
ARTICLE V 37
ASSIGNMENT 37
SECTION 5.1. PURPOSE OF RESTRICTIONS ON TRANSFER 37
SECTION 5.2. TRANSFERS 37
Page 1477 of 1842
SECTION 5.3. PERMITTED TRANSFERS 37
SECTION 5.4. TRANSFER REQUIRING CITY'S APPROVAL 38
SECTION 5.5. EFFECTIVENESS OF TRANSFERS 39
SEC]ION 5.6. SUBLETTING 39
ARTICLE VI 40
MORTGAGE FINANCING; RIGHTS OF MORTGAGEE AND LESSEE 40
SECTION 6.1. CONDITIONS OF FINANCING AND LEASEHOLD MORTGAGE 40
SECTION 6.2. NO WAIVER OF LESSEE'S OBLIGATIONS OR CITY'S RIGHTS 45
ARTICLE VII 46
REMEDIES; EVENTS OF DEFAULT 46
SECTION 7.1. DEFAULT BY LESSEE 46
SECTION 7.2. REMEDIES FOR LESSEE'S DEFAULT 48
SECTION 7.3. DEFAULT BY THE CITY 51
SECTION 7.4. FORCE MAJEURE AND ECONOMIC FORCE MAJEURE 51
SECTION 7.5. REMEDIES CUMULATIVE;WAIVER 52
SECTION 7.6. RIGHT TO CURE 52
SECTION 7.7. ROOM BLOCK AGREEMENT 52
SECTION 7.8. DISPUTE RESOLUTION 53
SECTION 7.9. EXPEDITED ARBITRATION OF DEVELOPMENT DISPUTES. 53
SECTION 7.10. DISPUTES REGARDING DISAPPROVAL OF A PROPOSED BRAND OR PROPOSED TRANSFEREE 55
SECTION 7.11. PLANS AND DATA 56
ARTICLE VILL 57
PROTECTION AGAINST MECHANICS' LIENS 57
AND OTHER CLAIMS;INDEMNIFICATION 57
SECTION 8.1. LESSEE'S DUTY TO KEEP PROJECT FREE OF LIENS 57
SECTION 8.2. CONTESTING LIENS 58
SECTION 8.3. INDEMNIFICATION 58
SECTION 8.4. ENVIRONMENTAL MATTERS 59
SECTION 8.5. LIMITATION OF CITY'S LIABILITY 61
ARTICLE IX 61
INSURANCE AND RECONSTRUCTION 61
SECTION 9.1. GENERAL INSURANCE PROVISIONS 61
SECTION 9.2. EVIDENCE OF INSURANCE 62
SECTION 9.3. REQUIRED COVERAGES 62
SECTION 9.4. PREMIUMS AND RENEWALS 64
SECTION 9.5. ADEQUACY OF INSURANCE COVERAGE 64
SECTION 9.6. CITY MAY PROCURE INSURANCE IF LESSEE FAILS TO DO SO 64
SECTION 9.7. EFFECT OF LOSS OR DAMAGE 64
SECTION 9.8. PROOF OF Loss 64
SECTION 9.9. INSURANCE PROCEEDS 65
SECTION 9.10. RECONSTRUCTION 65
SECTION 9.11. WAIVER OF SUBROGATION 66
SECTION 9.12. INADEQUACY OF INSURANCE PROCEEDS 66
SECTION 9.13. NO CITY OBLIGATION TO PROVIDE PROPERTY INSURANCE 66
SECTION 9.14. COMPLIANCE 66
SECTION 9.15. RIGHT TO EXAMINE 67
SECTION 9.16. PERSONAL PROPERTY 67
ARTICLE X 67
CONDEMNATION 67
SECTION 10.1. COMPLETE CONDEMNATION 67
SECTION 10.2. PARTIAL CONDEMNATION 67
SECTION 10.3. RESTORATION AFTER CONDEMNATION 68
SECTION 10.4. TEMPORARY TAKING 68
Page 1478 of 1842
SECTION 10.5. DETERMINATIONS 68
SECTION 13.6. PAYMENT OF FEES AND COSTS 68
ARTICLE XI 68
QUIET ENJOYMENT AND OWNERSHIP OF IMPROVEMENTS 69
SECTION 11.1. QUIET ENJOYMENT 69
SECTION 11.2. WASTE 69
SECTION 11.3. MAINTENANCE AND OPERATION OF IMPROVEMENTS 69
SECTION 11.4. OWNERSHIP OF IMPROVEMENTS DURING LEASE 69
SECTION 11.5. SURRENDER OF LEASED PROPERTY 70
ARTICLE XII 70
MAINTENANCE AND REPAIRS 70
SECTION 12.1. STANDARDS GENERALLY 70
SECTION 12.2. UTILITIES 70
SECTION 12.3. CLEANING 70
SECTION 12.4. REMOVAL OF TRASH 70
SECTION 12.5. MAINTENANCE AND REPAIRS 70
SECTION 12.6. EXCAVATION OF LAND 71
SECTION 12.7. WATER AND SEWERAGE SYSTEM 71
SECTION 12.8. INDUSTRIAL WASTE FACILITIES 71
SECTION 12.9. INSPECTIONS 71
SECTION 12.10. FAILURE OF LESSEE TO MAINTAIN 72
ARTICLE XIII 72
MANAGEMENT OF HOTEL 72
SECTION 13.1. HOTEL STANDARDS 72
SECTION 13.2. COVENANT TO CONTINUOUSLY OPERATE HOTEL 72
SECTION 13.3. HOTEL NAME 73
ARTICLE XIV 73
MISCELLANEOUS PROVISIONS 73
SECTION 14.1. NO PARTNERSHIP OR JOINT VENTURE 73
SECTION 14.2. RECORDING,DOCUMENTARY STAMPS 74
SECTION 14.3. FLORIDA AND LOCAL LAWS PREVAIL 74
SECTION 14.4. NO CONFLICTS OF INTEREST 74
SECTION 14.5. NOTICE 74
SECTION 14.6. ESTOPPEL CERTIFICATES 75
SECTION 14.7. PROVISIONS NOT MERGED WITH DEED 75
SECTION 14.8. TITLES OF ARTICLES AND SECTIONS 76
SECTION 14.9. COUNTERPARTS 76
SECTION 14.10. SUCCESSORS AND ASSIGNS;NO THIRD PARTY BENEFICIARIES 76
SECTION 14.11. ENTIRE AGREEMENT 76
SECTION 14.12. AMENDMENTS 76
SECTION 14.13. NON-SUBORDINATION OF CITY'S INTEREST 77
SECTION 14.14. CITY MANAGER'S DELEGATED AUTHORITY 77
SECTION 14.15. HOLIDAYS 77
SECTION 14.16. No BROKERS 77
SECTION 14.17. No LIABILITY FOR APPROVALS AND INSPECTIONS 77
SECTION 14.18. RADON 77
SECTION 14.19. LESSEE ENTITY 78
SECTION 14.20. INFLATION ADJUSTMENTS 78
SECTION 14.21. STANDARD OF CONDUCT 78
SECTION 14.22. WAIVER OF CONSEQUENTIAL DAMAGES 78
SECTION 14.23. RESERVATION OF RIGHTS 78
Page 1479 of 1842
List of Exhibits
EXHIBIT "A" Acceptable Owner Definition 85
EXHIBIT "B" hotel Standards 90
EXH 1811 ''C" Budgeted Improvement Costs 9I
EXHIBIT "D" Legal Description of Hotel Site 92
EXHIBIT "E" Approved Plans 95
EXHIBIT "F" Schedule of Performance 122
EXHIBIT "C" Form of Easements 124
EXHIBIT "H" Presently Permitted Development 135
EXHIBIT "I" Public Facilities 136
EXHIBIT "J" Public Reservations and Dedications 137
EXHIBIT "K" Required Development Permits and Variances 138
EXHIBIT "L" Room Block Agreement 139
EXHIBIT "M" Ownership Interests in Lessee 165
EXHIBIT "N" Uniform System Summary of Operating Statement 166
EXHIBIT"0" Transaction Rent 169
EXHIBIT "P" RESERVED 170
EXHIBIT "Q" RESERVED 181
EXHIBIT"R" Minimum Fixed Rent 182
EXHIBIT"S" Mandatory Hotel Project Design Elements 183
EXHIBIT"T" Lessee's LLC Documents 184
EXHIBIT "U" Fillmore Theater Parking 187
Page 1480 of 1842
DEVELOPMENT AND GROUND LEASE AGREEMENT
THIS DEVELOPMENT AND GROUND LEASE AGREEMENT ("Lease") is executed on the
day of , 2018, by and between the CITY OF MIAMI BEACH, FLORIDA, a municipal
corporation (the "City")and [PROPOSER] (the "Lessee").
RECITALS:
A. The City has a material interest in maximizing the performance of the Miami
Beach Convention Center (as hereinafter defined in Section 1.3) and encouraging convention
and tourism business in the City. To further those goals, the City desires to facilitate
development of an adjacent full service convention center hotel on real property owned by the
City and described more fully in Exhibit "D" hereto, to be connected to the Convention Center
by an enclosed overhead pedestrian Skybridge (as hereinafter defined in Section 1.3).
B. The City is a Florida municipal corporation with powers and authority conferred
under the Florida Constitution, the Municipal Home Rule•Powers Act set forth in Chapter 166 of
the Florida Statutes, and the Miami Beach City Charter and Code of Ordinances (the "City
Code"). The City has all governmental, corporate and proprietary powers to enable it to conduct
municipal government, perform municipal and governmental functions, and render municipal
services, including the authority to adopt, implement and enforce (together with any other
required Governmental Approvals) comprehensive plans, zoning ordinances, redevelopment
plans, and other police power and legislative measures necessary to assure the health, safety
and general welfare of the City and its inhabitants.
C. This Lease, among other things, is intended to and shall constitute a
development agreement between the parties pursuant to Sections 163.3220-163.3243, Florida
Statutes, the "Florida Local Government Development Agreement Act" and Section 118-4 of the
City's Code.
D. On or about May_, 2018, the City issued Request for Proposal No. 2018-
KB, for the Development of a Convention Hotel Adjacent to the Miami Beach Convention Center
("RFP"). After a competitive RFP process, and the City having fully considered this Lease at
two duly noticed public hearings in compliance with Section 163.3225 of the Act; having
determined that the Hotel Project (as hereinafter defined in Section 1.3) and this Lease are in
compliance with the City's Comprehensive Plan and Land Development Regulations (as each
are hereinafter defined in Section 1.3) as of , 2018; and having further determined
that it is in the City's best interest to address the issues covered by this Lease in a
comprehensive manner, in compliance with all applicable laws, ordinances, plans, rules and
regulations of the City, the City has agreed to enter into this Lease with the Lessee, subject to
the terms and conditions herein.
E. On , 2018, the Mayor and City Commission, by Resolution No.
2018- , approved the execution of this Lease.
NOW THEREFORE, for and in consideration of the foregoing. and of the mutual covenants and
agreements contained herein,the parties agree as follows:
ARTICLE I
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VOTER REFERENDUM, EFFECTIVE DATE AND DEFINITIONS
Section 1.1. Voter Referendum Requirement. The parties acknowledge and agree that.pursuant
to Section .03(h)(3) of the City Code, this Lease and the obligations herein are subject to and contingent
upon the approval of this Lease by vote of at least sixty percent (60%) of the voters voting thereon in a
City-wide referendum ("Referendum"). In the event the Referendum is not successful. or if the ballot
question is removed or election results are invalidated by a court of competent jurisdiction, this Lease
shall be deemed null and void and the parties shall have no obligations or liabilities of any kind or nature
whatsoever hereunder.
Section 1.2. Effective Date. If the Referendum is successful and all requirements of the City Code
and applicable law are satisfied, this Lease shall he effective upon the City Commission's adoption of a
resolution accepting the certification of the official results of the_ 201 election with respect
to the Referendum ("Effective Date')_
Section 13. Defined Terms. As used herein the term:
"Acceptable Owner" has the meaning ascribed to it in Exhibit "A".
"Additional Base Rent"shall have the meaning ascribed to it in Section 4.4(a).
"Additional Rent" means any and all payments required of Lessee to the City by the terms of this Lease
other than Base Rent.
"Affiliate" means, regarding any Person:
(a) any other Person directly or indirectly Controlling, Controlled by or under common
Control with such Person;
(b) any officer,director,general partner,member, manager or trustee of such Person; or
(c) any other Person who is an officer, director, general partner, member, manager or trustee
of such Person described in clauses(a) or(b)of this sentence.
When used in reference to Lessee, for so long as [PROPOSER] (or any of its Affiliates) holds an interest,
directly or indirectly, in Lessee, "Affiliate" shall include any Person Controlling,Controlled by, or under
common Control with [PROPOSER].
"Approval, Approve or Approved" means the written approval or consent of a Party, which unless
otherwise specified herein by reference to "sole discretion" or words of similar effect, shall be
commercially reasonable and made in good faith and with due diligence.
"Approved Brand" means (a) each of the following national hotel operators but only if its
reputation for quality and quality of operation, at the time Lessee engages such operator, is
generally known and recognized by the hotel industry as not having substantially declined, as of
the time in question, in comparison to their reputation for quality and quality of operation as of
the Effective Date: Marriott (i.e., the Marriott, Marriott Marquis or JW Marriott brands), Westin,
Omni, Hyatt Regency, Sheraton, La Meridien, or Hilton, or (b) any other hotel operator
Approved by City in its sole discretion.
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"Approved Operator" means (a) any Approved Brand or (b) any management company
approved by the Approved Brand to serve as the Hotel Operator pursuant to a franchise
agreement with the Approved Brand.
''Approved Plans" means the renderings and diagrams attached hereto as Exhibit "E" depicting the
Mandatory Hotel Project Design Elements(other than the Skybridge), which renderings and diagrams the
City has Approved as of the Effective Date, as may be modified from time to time in accordance with the
terms of this Lease.
"Approved Skvbridge and Off-Site Improvements Plans" means the renderings and diagrams depicting
the Skybridge and Off-Site Improvements to he Approved by the City Manager prior to the Possession
Date, which, following Approval by the City Manager, may be modified from time to time in the same
manner as the Approved Plans in accordance with the terms of this Lease. The Skybridge will have
finishes consistent with the finishes in the connecting point in the Convention Center. The repairs to the
Fillmore Theater as part of the Off-Site Improvements will be done consistently with the quality of the
Fillmore Theater prior to the work being done by Lessee in connection with the Hotel Project.
"Arbitrator shall have the meaning ascribed to it in Section 7.I0(a).
"Assignment of Contracts and Agreements"means an assignment from Lessee, as assignor.to the City, as
assignee, assigning in favor of the City all of Lessee's right, title and interest in and to all contracts and
agreements (other than the Hotel Project General Construction Contract and the Assignment of Plans and
Approvals) executed in connection with the design, construction and equipping of the Ilotel I'roject prior
to the Completion of Construction, including such contracts and agreements with design professionals, on
a non-recourse basis without any warranties or representations from Lessee, which assignment shall he in
form and substance reasonably satisfactory to the City (together with any necessary consents required in
connection with such assignment), which assignment shall be an absolute assignment from Lessee to the
City, provided that for so long as no Event of Default has occurred and is continuing hereunder. the City
shall give Lessee a license of all such contracts and agreements, with the right to enforce all of the terms
thereof, for the duration of the Term; provided, further that for so long as a First Leasehold Mortgage
encumbers the Hotel Project, the City agrees to permit Lessee to make a pari passu assignment of such
contracts and agreements to such First Leasehold Mortgagee (which First Leasehold Mortgagee shall
have priority with respect thereto pursuant to the non-disturbance and attornment agreement entered into
pursuant to Section 6.1(b) hereof).
"Assignment of Hotel Project General Construction Contract" means an assignment from Lessee, as
assignor, to the City, as assignee, assigning in favor of the City all of Lessee's right, title and interest in
and to the Hotel Project General Construction Contract, which assignment shall include a duly executed
consent by the Hotel Project General Contractor and shall otherwise be in form and substance reasonably
satisfactory to the City (together with any necessary consents required in connection with such
assignment), which assignment shall be an absolute assignment from Lessee to the City, provided that for
so long as no Event of Default has occurred and is continuing hereunder, the City shall give Lessee a
license of the Hotel Project General Construction Contract, with the right to enforce all of the terns
thereof, for the duration of the Term; provided, further that for so long as a First Leasehold Mortgage
encumbers the Hotel Project, the City agrees to permit Lessee to make a pari passu assignment of the
Hotel Project General Construction Contract to such First Leasehold Mortgagee (which First Leasehold
Mortgagee shall have priority with respect thereto pursuant to the non-disturbance and attornment
agreement entered into pursuant to Section 6.1()) hereof),
"Assignment of Plans and Approvals" means an assignment from Lessee, as assignor, to the City, as
assignee, assigning in favor of the City all of Lessee's right, title and interest in and to all Approved
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Plans, designs, Governmental Approvals and other work product produced by Lessee and any other
Person for use in the development, construction and operation of the Work, which assignment shall
include a duly executed consent by each Person other than the Lessee having an interest in such Approved
Plans, designs, Governmental Approvals and other work product and shall otherwise be in form and
substance reasonably satisfactory to the City (together with any necessary consents required in connection
with such assignment), which assignment shall be an absolute assignment from Lessee to the City,
provided that for so lung as no Event of Default has occurred and is continuing hereunder, the City shall
give Lessee a license of all such Approved Plans, designs, Governmental Approvals and other work
product assigned to the City for the duration of the Term; provided, further that for so long as a First
Leasehold Mortgage encumbers the Hotel Project, the City agrees to permit Lessee to make a pad passu
assignment of such Approved Plans, designs, Governmental Approvals and other work product to such
First Leasehold Mortgagee (which First Leasehold Mortgagee shall have priority with respect thereto
pursuant to the non-disturbance and attomment agreement entered into pursuant to Section 6.1(b)hereof).
"Audited Gross Operating Revenues Schedule" means a schedule prepared in accordance with GAAP and
GAAS, and showing all Gross Operating Revenues for a Lease Year. Such Audited Gross Operating
Revenues shall be based on Lessee's audited financial statements for such Lease Year.
"BankruptevCode" means Title I I of the United States Code entitled "Bankruptcy.' as amended.
"Base Rent" shall have the meaning ascribed to it in Section 4.4(a).
"Brand Approvals" means the written confirmation from the Initial Hotel Operator approving the design
of the Hotel Project,and, prior to Opening, approving the FF&E to be installed in the Hotel Project.
"Budgeted Improvement Costs" means the estimated Improvement Costs as of the date hereof, as set forth
in Exhibit "C".
"Business Day" means a day other than a Saturday,a Sunday or a day on which the offices of the City, or
national banks in Miami-Dade County, Florida are dosed for business.
"Certificate of Occupancy" means a certificate of occupancy or certificate of completion, as applicable,
for the buildings and structures on the Leased Property, and shall include any such certificate designated
as "Temporary" in nature,provided it allows for occupancy of the Hotel by paying guests.
"City" shall mean the City of Miami Beach, a Florida municipal corporation, having its principal offices at
1700 Convention Center Drive, Miami Beach, Florida 33139. In all respects hereunder, City's obligations
and performance is pursuant to City's position as the owner of the Hotel Site acting in its proprietary
capacity. In the event City exercises its regulatory authority as a governmental body, the exercise of
such regulatory authority and the enforcement of any rules, regulations, laws and ordinances (including
through the exercise of the City's building, fire, code enforcement, police department or otherwise) shall
be deemed to have occurred pursuant to City's regulatory authority as a governmental body and shall
not be attributable in any manner to City as a party to this Lease or in any way be deemed in conflict
with,or a default under,the City's obligations hereunder.
"City Code" has the meaning ascribed to it in the recitals hereto.
"City Commission" shall mean the governing and legislative body of the City.
"City Delays" shall mean the number of days in which the City performs any obligation under Section
2.13 hereof in excess of the number of days set forth for such performance therein.
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"City Manager" shall mean the Chief Administrative Officer of the City. The City Manager shall be
construed to include any duly authorized representatives designated in writing with respect to any
specific matter(s) concerning this Lease (exclusive of those authorizations reserved to the City
Commission or regulatory or administrative bodies having jurisdiction over any matter(s) related to this
Lease).
"City's Representative" has the meaning ascribed to it in Section 2.9(b).
"Commence Construction" or "Commencement of Construction" means, with respect to the Hotel
Project, the commencement of bona-fide pouring of the concrete foundation for the Hotel Project,
provided that the pour is completed in the ordinary course.
"Complete Construction" or "Completion of Construction" means the date Lessee has completed the
Hotel Project substantially in accordance with the requirements of the Approved Plans and all conditions
of permits and regulatory agencies have been satisfied, all Governmental Authorities have issued a
Certificate of Occupancy, the Hotel has been accepted by the Hotel Operator, and the Hotel Project is
ready for occupancy, utilization and continuous commercial operation for the uses and purposes
intended by this Lease, without material interference from incomplete or improperly completed Work,
and substantially all of the FF&E required for the Opening Date has been purchased, delivered to and
installed in the Hotel Project.
"Comprehensive Plan" means the comprehensive plan which the City Commission has adopted
and implemented for the redevelopment and continuing development of the City pursuant to
Chapter 163 Part II, of the Florida Statutes.
"Concurrency Requirements" shall have the meaning ascribed to it in Section 3.3.
"Construction Lender" means the Institutional Lender selected by Lessee to provide the Construction
Loan.
"Construction Loan" means the loan or loans to be provided by the Construction Lender(s) to the Lessee
for development and construction of the Hotel Project in an aggregate amount not more than 65% of
the Budgeted Improvement Costs.
"Construction Loan Commitment" means a financing commitment by the Construction Lender that has
been executed and delivered by and between Lessee and the Construction Lender(s) that confirms
availability of the Construction Loan to fund the construction of the Hotel Project in accordance with the
requirements of this Lease.
"Control;' "Controlling" or "Controlled" means the possession, directly or indirectly, of the power to
direct or cause the direction of the management and policies of a Person, whether through the
ownership of voting securities, by contract, by Governmental Requirements or otherwise, or the power
to elect in excess of fifty percent (50%) of the directors, managers, general partners or other Persons
exercising similar authority with respect to such Person (it being acknowledged that a Person shall not
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be deemed to lack Control of another Person even though certain decisions may be subject to "major
decision" consent or approval rights of limited partners, shareholders or members, as applicable).
"Convention Center" means the Miami Beach Convention Center located at 1901 Convention Center
Drive, Miami Beach, Florida, 33139.
"Corrective Action Work" has the meaning ascribed to it in Section K 4(a)(vii).
"CPA" means a national firm of certified public accountants Approved by the City Manager, used by
Lessee for the purpose of certifying the annual reports, its financial condition or for any other purpose
specified herein.
"Credit Enhancement" means a credit enhancement with respect to, or guaranty of, the financing for
the Hotel provided by a Hotel Operator, or an Affiliate thereof.
'Debt Service Coverage Ratio" means the ratio of: (I) Gross Operating Profit for the previous twelve (12)
months; to (ii) the amount of Debt Service Payments actually required to be paid in such twelve (12)
months. For example, if Gross Operating Revenues for a particular twelve (12) months equal $3,700,000,
Project Expenses equal $1,000,000 and Debt Service Payments actually required to be paid equal
$1,800,000,the Debt Service Coverage Ratio for that twelve (12) months would be 1.50.
"Debt Service Payments" means all principal, interest and other sums and amounts paid or payable by
Lessee for or during the applicable or pertinent period, in connection with any debt secured by a
Leasehold Mortgage.
"Default Rate" means an interest rate equal to five percent (5%) per annum above the highest annual
prime rate (or base rate) published from time-to-time in The Wall Street Journal under the heading
"Money Rates" or any successor heading as being the rate in effect for corporate loans at large U.S.
money center commercial banks (whether or not such rate has actually been charged by any such bank)
or if such rate is no longer published, then the highest annual rate charged from time-to-time at a large
U.S. money center commercial bank, selected by the City, on short term, unsecured loans to its most
creditworthy large corporate borrowers.
"Deficiency"shall have the meaning ascribed to it in Section 7.2(b)(ii).
"Development Arbitrator" shall have the meaning ascribed to it in Section 7.9(b).
"Development Dispute" means any dispute between Lessee and City (acting in its proprietary
capacity) arising prior to the Opening Date with respect to (i) whether a modification to the Hotel
Project is a substantial deviation from the Approved Plans or a Prohibited Hotel Project Change
requiring City's Approval pursuant to Section 2.2; (ii) any contention that City has unreasonably
failed to Approve modifications to the Approved Plans in accordance with this Lease; (Hi) any
contention that City has unreasonably failed to Approve the proposed Approved Skybridge and
Off-Site Improvements Plans or modifications thereto in accordance with this Lease; (iv) any
contention that City has unreasonably failed to Approve a Hotel Project General Contractor in
accordance with Section 2.8(b); or (v) any disagreement as to permitted delays in the Schedule
of Performance pursuant to Section 2.7.
"Development Order" means any order granting, denying, or granting with conditions an
application for a Development Permit.
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"Development Permit" shall have the meaning set forth in Section 163.3221(5), Florida Statutes
(2014).
"Economic Force Majeure" means economic or political conditions or events that materially impair
access to debt or equity markets by developers for development of projects in the United States similar
to the Hotel Project or allow a committed debt or equity participant to terminate its debt or equity
commitment, such as a temporary or long term liquidity crisis or major recession.
"Effective Date" has the meaning ascribed to in Section 1.2.
"Environmental Condition" has the meaning ascribed to it in Section 8.4.
"Environmental Claim" has the meaning ascribed to it in Section 8.4.
"Environmental Laws" has the meaning ascribed to it in Section 8.4.
"Environmental Permit" has the meaning ascribed to it in Section 8.4.
"Environmental Requirements" has the meaning ascribed to it in Section 8.4.
"Equity Commitment" means the commitment of Lessee to contribute an amount In cash to pay
Improvement Costs as may be necessary, at the time of determination, when combined with the
Initial Hotel Operator Financial Commitment and the proceeds available under the Construction
Loan and Mezzanine Loan, if any, to maintain the Hotel Project In Balance, a portion of which
Equity Commitment shall be funded by the [PROPOSER] Estimated Equity Contribution but in
no event less than the [PROPOSER] Minimum Equity Contribution.
"Event of Default" has the meaning ascribed to it in Article VII.
"FF&E" means the furniture, fixtures and equipment for the Hotel Project to be procured and maintained
by the Lessee.
"Fillmore Theater" means the performing arts center located at 1700 Washington Avenue, Miami Beach,
Florida, adjacent to and east of the Hotel Project and also known as the "Fillmore Miami Beach at the
Jackie Gleason Theater".
"First Leasehold Mortgage" means a Leasehold Mortgage which is a first lien on Lessee's interest in this
Lease and the leasehold interest created hereby.
"First Leasehold Mortgagee" means the Institutional Lender that is a holder of a First Leasehold
Mortgage, which shall be evidenced by, and the City shall be able to rely absolutely on, a title report
current as of the time of any determination and prepared by a generally recognized title insurance
company doing business in Miami-Dade County, Florida, or upon a certificate of Lessee, signed and
verified by a Responsible Officer of Lessee.
"First Rent Year" has the meaning ascribed to it in Section 4.4(a).
"Force Majeure Event" means the following: acts of God; strikes, lockouts or other industrial
disturbances; acts of public enemies, whether actual or threatened; orders of any civil or military
authority; insurrections; riots; acts of terrorism; epidemics; landslides, earthquakes, lightning, fires,
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hurricanes, storms, floods, washouts and other natural disasters; inability to procure or a general
shortage of labor, equipment, facilities, materials or supplies in the open market, or failure or
unavailability of transportation generally;or other similar extraordinary causes beyond the commercially
reasonable control of the Party claiming such inability. In no event shall "Force Majeure Event" include
economic hardship or financial inability to perform specific to the Party nor shall it include Economic
Force Majeure.
"Foreign Instrumentality" means a foreign (non-U.S.) government or agency thereof or a Person
Controlled thereby.
"GAAP" means generally accepted accounting principles, as in effect from time to time, as promulgated
by the Financial Accounting Standards Board, consistently applied or a system generally recognized in
the United States as having replaced GAAP.
"GAAS' means generally accepted auditing standards, as in effect from time to time, as developed by
the American Institute of Certified Public Accountants, consistently applied, or a system generally
recognized in the United States as having replaced GAAS.
"Gaming Establishment" means any establishment offering or otherwise engaged in gambling or
wagering of any nature or kind.
"Governmental Approvals" means all permits, approvals, certificates of occupancy, notifications,
certifications, registrations, authorizations and other rights and privileges that are required by any
Governmental Authority. Notwithstanding anything to the contrary in this Lease, the Lessee retains its
rights in accordance with applicable Governmental Requirements to challenge or appeal any denial of
Governmental Approvals.
"Governmental Authority" means any federal, state, county, municipal or other governmental
department, entity, authority, commission, board, bureau, court, agency, or any instrumentality of any
of them, with jurisdiction over the Leased Property, the Lessee Improvements, the Work or the Off-Site
Improvements.
"Governmental Requirements" means any law, enactment, statute, code, order, ordinance, rule,
regulation, judgment, decree, writ, injunction, franchise, permit, certificate, license, or other similar
requirement of any Governmental Authority, now existing or hereafter enacted, adopted, promulgated,
entered, or issued, affecting the Leased Property or the construction and operation of the Lessee
Improvements. Notwithstanding anything to the contrary in this Lease, the Lessee retains its right to
challenge Governmental Requirements in accordance with all other applicable Governmental
Requirements, including based on a constitutional objection that a Governmental Requirement violates
Lessee's constitutional rights regarding contracts.
"Gross Operating Profit" means the amount calculated by subtracting Project Expenses from Gross
Operating Revenues.
"Gross Operating Revenues" means all revenues and income of any nature derived directly or indirectly
from the Hotel or from the use or operation of the Leased Property, including gross rooms sales, gross
food and beverage sales (whether any food and beverage establishment is operated by Lessee or a
Subtenant), catering receipts, telephone, facsimile and/or Internet services, in-room video and parking
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and valet service receipts (whether the parking or valet services are operated by Lessee or a Subtenant),
vending machines, gross receipts, rents or license fees from the operation by Lessee or any Affiliate of
Lessee of newsstand, gift shop, or business center, or from any other sub-lessees, concessionaires, third-
parties conducting operations on the Leased Property or other sources (except as provided in Section
5.6(c) hereof), the fair rental value of space within the Hotel Project occupied by Lessee or any entity
affiliated with or employed by Lessee for purposes other than managing the Hotel Project (to the extent
the occupants of such space are paying less than the fair market value of such space) and the proceeds
of business interruption, other loss of income, use, occupancy or similar insurance, as determined in
accordance with GAAP (to the extent not inconsistent with the Uniform Systems of Accounts), and the
Uniform System of Accounts, and without any reduction or allowance for uncollectable charges or bad
debts. Notwithstanding the foregoing, the following shall not constitute Gross Operating Revenues: (i)
any gratuities or service charges added to a customer's bill and distributed as compensation to the
Hotel's employees; (ii) any credits or refunds made to customers, guests or patrons; (iii) any sums and
credits received for lost or damaged merchandise; (iv) any sales taxes, excise taxes, or other similar
taxes or charges collected by the Hotel and remitted to tax authorities; (v) any proceeds from the sale or
other disposition of FF&E or capital equipment; (vi) any interest earned with respect to the deposit or
investment of proceeds from operation of the Hotel; (vii) any fire and extended coverage insurance
proceeds (except that proceeds of business interruption or other loss of income insurance shall be
included in Gross Operating Revenues); (viii) any condemnation awards; and (ix) any proceeds of sale or
financing or refinancing of the Hotel.
"Hazardous Substance" has the meaning ascribed to it in Section 8.4.
"Hotel" means the hotel complex to he developed and constructed on the Hotel Site substantially in
accordance with the Approved Plans, which will contain approximately [550-800 rooms,final amount to
be based on successful Proposal], separately keyed sleeping rooms capable of individual rental on a
day-to-day overnight basis to hotel patrons and guests. For the purpose of determining the maximum
number of separately keyed sleeping rooms contained within the Hotel at any time during the Term,
each such room which is capable of being separately keyed will be deemed to be separately keyed,
without regard to the actual use thereof.
"Hotel Operator" means and includes any Approved Operator engaged by Lessee to be responsible for
overseeing the day- to-day management of the Hotel Project(or. if at any time there is no such operator.
Lessee as operator of the Hotel Project).
"Hotel Proiect" means Lessee's leasehold created by this Lease and the development, design,
construction and purchase of the Lessee Improvements and their subsequent use;the completion of the
Work substantially in accordance with the Approved Plans, including (1) the Hotel and all associated
infrastructure (including on-site parking and all supporting Hotel facilities and amenities), (2) the
Skybridge and all associated infrastructure, (3) the installation of FF&E and other improvements and
appurtenances of every kind and description (including all landscaping, planting and other
improvements of any type) now located or hereafter erected, constructed or placed upon the Leased
Property; and (4) any and all alterations, renewals and replacements thereof, additions thereto and
substitutions therefor.
"Hotel Project General Construction Contract" means the construction contract between Lessee and the
Hotel Project General Contractor for the construction of the Hotel Project in accordance with the
Approved Plans, within the contract time specified for completion of the Work, for a guaranteed
maximum price that will not exceed the sum allocated for construction of the Work in the Budgeted
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Improvement Costs, and that includes provisions requiring a Performance Bond and Payment Bond and
all other terms or conditions required under this Lease.
"Hotel Project General Contractor" means the duly licensed general contractor(s) engaged by Lessee for
the construction of the Hotel Project and completion of the Work.
"Hotel Site" means the parcel of real property described in Exhibit "D".
"Hotel Standards'' means the standards set forth in Exhibit"B".
"Improvement Costs" means the actual, verifiable costs and expenses paid to third parties, not Affiliates
of Lessee (unless such costs paid to Affiliates of Lessee are at fair market value and with notice to the
City), in the design, permitting, development, construction and equipping of the Hotel Project;
"In Balance" means, at any time in question, that the sum of (a) the then unfunded amount of the
Construction Loan available to Lessee for payment of costs of labor and materials to achieve Completion
of Construction of the Hotel Project, plus (b) the then unfunded amount of the Mezzanine Loan, if any,
available to Lessee for the payment of costs of labor and materials to achieve Completion of
Construction of the Hotel Project, plus (c) the then remaining balance to be funded under the Equity
Commitment, plus (d) the then remaining balance to be funded under the Initial Hotel Operator
Financial Commitment, if any, plus (e) any additional cash amounts deposited with the City by Lessee in
order to fund the difference, if any, between the sum of (a), (b), (c) and (d) above and the then
remaining Improvement Costs is adequate to pay all of the then remaining Improvements Costs that are
reasonably likely to be incurred through Complete Construction of the Hotel Project.
"Initial Hotel Operator" means the initial Hotel Operator engaged by Lessee.
"Initial Hotel Operator Financial Commitment" means the commitment of the Initial Hotel Operator to
fund, in the aggregate, cash,to be used to pay Budgeted Improvement Costs, in such amount as may be
necessary when combined with the Equity Commitment and the proceeds available under the
Construction Loan and Mezzanine Loan, if any,to maintain the Hotel Project In Balance.
"Institutional Lender' means, subject to the City Manager's Approval within twenty (20) days from
receipt by the City of commercially reasonable information properly identifying the proposed
Institutional Lender, including its financial qualifications, any of the following entities that have a net
worth in excess of Fifty Million Dollars ($50,000,000) (as adjusted by inflation over the Term pursuant to
Section 14.20 hereof).
(a) any federal or state chartered commercial bank or national bank or any of its
subsidiaries;
(b) any federal or state chartered savings and loan association, savings bank or trust
company;
(c) any pension, retirement or welfare trust or fund, whose loans on real estate are
regulated by state or federal laws;
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(d) any public limited partnerships, public real estate investment trust or other public entity
investing in commercial mortgage loans whose loans on real estate are regulated by state or federal
laws;
(e) any state licensed life insurance company in the business of making commercial
mortgage loans or a subsidiary or affiliate of any such institution whose loans on real estate are
regulated by state or federal laws;
(f) any agent, designee, or nominee of an Institutional Lender that is an Affiliate (solely as
described in clause (a) of the definition thereof) of any Institutional Lender or any other Person that is a
subsidiary or an Affiliate (solely as described in clause (a) of the definition thereof) of an Institutional
Lender;and
(g) Any private debt fund having assets in excess of$2 billion.
In the event of a syndicated loan, if lifty-one percent (51%) or inure of the syndicate of lenders are
Institutional Lenders, then the syndicated loan shall be deemed to be made by an Institutional Lender.
City Manager's failure to notify Lessee of any disapproval within such twenty (20) day period shall be
deemed to constitute the City Manager's conclusive Approval of the proposed Institutional Lender.
"Insurance Trustee" has the meaning ascribed to it in Section 9.9(a).
"Land Development Regulations' shall have the meaning set forth in Section 163.3221(8), Florida
Statutes and shall also include the definition of"land development regulations" in Section 114-I of the
City Code.
"Lease" means this Development and Ground Lease Agreement, and all exhibits annexed hereto and
made a part hereof, as the same may be modified or amended from time to time.
"Leased Property" means the Hotel Site.
"Leasehold Mortgage" means a mortgage, including an assignment of the rents, issues and profits from
the Hotel Project or other security instrument in favor of a Leasehold Mortgagee, which constitutes a
lien on Lessee's leasehold interest created by this Lease during the Term.
"Leasehold Mortgagee" means an Institutional Lender that is the owner and holder of a Leasehold
Mortgage.
"Lease Year" means a year, other than the first and last year of the Term, consisting of twelve (12)
consecutive calendar months. The first Lease Year during the term of this Lease shall commence on the
Rent Commencement Date and end on December 31" of the year in which the Rent Commencement
Date occurs. The second and following Lease Years shall commence on the 1" day of January each
calendar year and end on December 31"of such year.
"LEED Status" means a certification by the U.S. Green Building Counsel's ("USGBC") Leadership in Energy
and Environmental Design ("LEED") that the Hotel Project has satisfied all of the requirements
associated with the then current USGBC Gold LED certification.
II
Page 1491 of 1842
"Lessee" means [PROPOSER], LLC, and the successors, assigns or transferees thereof expressly Approved
or permitted by the terms and provisions of this Lease. An executed copy of Lessee's limited liability
company documents is on file with the City as set forth on Exhibit "T".
"Lessee Improvements" means any and all permanent buildings, structures and machinery, equipment
and fixtures, which are existing and may from time to time and at any time during the Term be erected
or located on the Leased Property, including the Hotel and associated infrastructure and the Skybridge
and associated infrastructure.
"Liquid Assets" means (a) cash on hand or on deposit in any federal or state chartered commercial bank
or national bank or any of its subsidiaries, (b) readily marketable securities, (c) readily marketable
commercial paper rated A-1 by Standard & Poor's Corporation (or a similar rating by any similar
organization that rates commercial paper), (d) certificates of deposit issued by commercial banks
operating in the United States with maturities of one year or less, (e) money market mutual funds, and
(f)the uncommitted amount of any available line(s) of credit.
"Management Agreement" means the hotel operating or management agreement, as it may be
extended, supplemented, amended or replaced from time to time, between Lessee and the Hotel
Operator and which provides Lessee with the right to use the name or flag of the Hotel (if Lessee does
not otherwise have such rights), and specifies the terms and conditions applicable to the day-to-day
management of the Hotel, including the obligation of the Hotel Operator to comply with the Room Block
Agreement.
"Mandatory hotel Project DesignElements"means the design features, components or other elements of
the Hotel Project to be developed by the Lessee as further described on Exhibit "S".
"MBCC Project" means the Miami Beach Convention Center Renovation and Expansion Project,
consisting of the renovation of the Convention Center, expansion of ballroom and auxiliary spaces.
parking levels above portions of the Convention Center, exterior landscaping and a 6 acre public park, the
renovation of Convention Center Drive, including relocation of utilities, and other improvements to the
Convention Center and surrounding areas.
"MBCC Standard of Operation" means the average standard of quality for the facilities and associated
infrastructure consistent with the principal convention centers operated in Orlando,Atlanta, New Orleans,
Dallas, Houston, Boston, Chicago, San Francisco, San Diego and Los Angeles, as of the Effective Date.
"Mezzanine Lender" means (a) the Institutional Lender selected by Lessee to provide the Mezzanine
Loan or (b) a Hotel Operator, or an Affiliate thereof, to the extent it is providing a Mezzanine Loan or
Credit Enhancement and is receiving a pledge of the equity interests in Lessee.
"Mezzanine Loan" means a loan to be made by the Mezzanine Lender to the Lessee to provide financing
for the Hotel Project, subordinate to the First Leasehold Mortgagee, which may be secured by a lien on
Lessee's equity interest.
"Mezzanine Loan Commitment" means a mezzanine financing commitment by the Mezzanine Lender
that has been executed and delivered by and between Lessee and the Mezzanine Lender that confirms
the availability of the Mezzanine Loan.
"Minimum Fixed Rent" has the meaning ascribed to it in Section 4.4(a)(i).
"Off-Site Improvements" means any and all improvements not located on the Leased Property shown on
the Approved Plans and in accordance with the Governmental Approvals, including demolition of any
portion of the Fillmore Theater located on the Leased Property, enclosure of any remaining portion of
12
Page 1492 of 1842
the Fillmore Theater located outside the Leased Property, and paving and striping of up to twenty-five
surface parking spaces for Fillmore Theater personnel as depicted in Exhibit"U".
"Opening Date" means the date on which the Hotel first opens for business to the general public.
"Original Lessee Investors" means the owners of Lessee on the date hereof, as identified on Exhibit"M".
"Outside Construction Commencement Date" means _ 20_, by which date
Commencement of Construction must take place, as such date may be reasonably extended for (i) a
Force Majeure Event or Economic Force Majeure in accordance with this Lease;or(ii)City Delays.
"Outside Construction Loan Closing Date" means - , 20_, as such date may be reasonably
extended in accordance with this Lease for a period not exceeding twelve (12) months for (i) actual
delays suffered by Lessee in achieving closing of the Construction Loan caused by a Force Majeure Event
or Economic Force Majeure; or (ii) City Delays.
"Outside Completion Date" means _, by which date Completion of Construction shall
have occurred, as such date may be reasonably extended by (i)the number of days by which the Outside
Construction Commencement Date was extended, and thereafter for (ii) a Force Majeure Event or
Economic Force Majeure in accordance with this Lease; or(Hi) City Delays.
"Outside Opening Date" means , the date by which the Opening Date must have occurred, as
such date may be reasonably extended by (i) the number of days by which the Outside Construction
Commencement Date was extended, and thereafter for (H) a Force Majeure Event or Economic Force
Majeure in accordance with this Lease; or (iii) City Delays.
"Outside Possession Date" means , by which date the Possession Conditions must be satisfied,
as such date may be reasonably extended for (i) a Force Majeure Event or Economic Force Majeure in
accordance with this Lease; or(ii) City Delays
"Parties" means City and Lessee, and "Party" is a reference to either City or Lessee, as the context may
indicate or require.
"Performance Bond and Payment Bond" means a performance bond and a payment bond with regard to
the Hotel Project General Construction Contract in the full amount of the guaranteed maximum price
thereof, with a good and sufficient surety, in compliance with all applicable Governmental Requirements
and in form and content Approved by the City Manager, or such other security as is reasonably
acceptable to the City Manager,after consultation with the City Attorney.
"Permitted Transfers" has the meaning ascribed to it in Section 5.3.
"Person" means any corporation, unincorporated association or business, limited liability
company; business trust, real estate investment trust, common law trust, or other trust, general
partnership, limited partnership, limited liability limited partnership, limited liability partnership, joint
venture, or two or more persons having a joint or common economic interest, nominee, or other entity,
or any individual(or estate of such individual); and shall include any Governmental Authority.
"[PROPOSERl" means [PROPOSER], a [type of entity and State where incorporated].
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Page 1493 of 1842
"PROPOSER] Estimated Equity Contribution" means an amount up to $ but not less than the
[PROPOSER] Minimum Equity Contribution to be funded in cash by [PROPOSER] or one of its Affiliates to
pay Improvement Costs.
"jPROPOSERI Minimum Equity Contribution" means $ to be funded in cash by [PROPOSER]
or one of its Affiliates to pay Improvement Costs.
"Possession Conditions" has the meaning ascribed to it in Section 4.1(b).
"Possession Date" has the meaning ascribed to it in Section 4.1(b).
"Prohibited Hotel Project Changes" means
(a) after the Effective Date and prior to the Possession Date, any changes to the
Approved Plans that result in any of the following except to the extent previously Approved in a
writing executed by the City Manager and expressly providing that the City Manager is thereby
Approving a Prohibited Hotel Project Change (which Approval may be granted or withheld by
City Manager in his sole and absolute discretion), or which are required because of
Governmental Requirements: (i) a failure of the Hotel Project to contain any of the Mandatory
Hotel Project Design Elements, or a material change to the design thereof; (ii) failure to obtain
any Brand Approval; (Iii) a material change in the massing of the development, including the
orientation and general configuration of the tower structure or the size and configuration of the
tower structure and podium design reflected in the Approved Plans, or (iv) any change that
materially affects the façade of the Hotel Project Approved by the City, or otherwise materially
affects the exterior appearance of the Hotel Project or materially impairs the ability of the Hotel
Project to function as a convention center hotel, or
(b) after the Possession Date and prior to the Opening Date, any changes to the Approved
Plans or any actual construction that results in any of the following, except to the extent previously
Approved in a writing executed by the City Manager and expressly providing that the City Manager is
thereby Approving a Prohibited Hotel Project Change (which Approval may be granted or withheld by
City Manager in his sole and absolute discretion), or which are required because of Governmental
Requirements: (i) a failure of the Hotel Project to contain any of the Mandatory Hotel Project Design
Elements, or a material change to the design thereof; (ii) failure to obtain any Brand Approval; (iii) a
material change in the design or actual scope, appearance or quality of any of the Mandatory Hotel
Project Design Elements; (iv) a material change in the massing of the development, including the
orientation and general configuration of the tower structure or the size and configuration of the tower
structure and podium design reflected in the Approved Plans, or (v) any change that materially affects
the facade of the Hotel Project Approved by the City, or otherwise materially affects the exterior
appearance of the Hotel Project or materially impairs the ability of the Hotel Project to function as a
convention center hotel.
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Page 1494 of 1842
"Project Expenses" means:
(a) commercially reasonable operating expenses of the Hotel Project incurred to Persons
other than Affiliates of the Lessee (unless such expenses paid to Affiliates of Lessee are at a fair market
rate and with notice to the City);
(b) commercially reasonable wages and benefits paid and payable to the Hotel Operator's
full time or part-time on-site or off-site management employees and full or part-time non-management
employees; and
(c) commercially reasonable management fees, at prevailing market rates.
"Proposed Transferee has the meaning ascribed to it in Section 7.10(b).
"Public Charges" has the meaning ascribed to it in Section 4.5(a).
"Reconstruction Work" has the meaning ascribed to it in Section 9.9(b).
"Rent" means all payments required pursuant to Section 4.4 and any other payments characterized as
rent hereunder, including Base Rent, Additional Rent and Transaction Rent.
"Rent Commencement Date" has the meaning ascribed to it in Section 4.4(a).
"Rent Year has the meaning ascribed to it in Section 4,4(a).
"Responsible Officer means any executive officer or manager of Lessee responsible for the
administration of the obligations of Lessee in respect of this Lease.
"Room Block Agreement" means the room block agreement, in the form of Exhibit "L" attached
hereto, to be executed by and between the City and the Lessee, and pursuant to which Lessee
agrees to provide the services therein described to City in exchange for the agreements of City
hereunder.
"Schedule of Performance" has the meaning ascribed to it in Section 2.7.
"Second Rent Year" has the meaning ascribed to it in Section 4.4(a).
"Section," "Subsection " "Paragraph " "Subparagraph " "Clause," or"Subclause" followed by a number or
letter means the section, subsection, paragraph, subparagraph, clause or subclause of this Lease so
designated.
"Single Purpose Entity" means:
(a) an entity or organization that does not and cannot by virtue of its organizational
documents:
(i) engage in any business other than owning, developing, leasing and operating
the Hotel Project; or
15
Page 1495 of 1942
(ii) acquire or own material assets other than the Hotel Project and incidental
personal property;and that
(b) does not hold itself out to the public as anything but a legal entity or organization
separate from any other Person; and
(c) conducts business solely in its name or under a duly registered fictitious name.
"Skybridge" means the overhead, enclosed, climate-controlled pedestrian walkway to be constructed,
operated and maintained by Lessee in accordance herewith connecting the Hotel Project to the
Convention Center and included in the Hotel Site described on Exhibit"D".
"Sublease" means any lease, sublease, license or other agreement by which Lessee demises, leases, or
licenses the use and occupancy by another Person of one or more specific retail, parking/valet, spa or
restaurant spaces, or other defined portion of the Hotel Project.
"Subtenant" means any Person using and occupying or intending to use and occupy one or more specific
spaces or other defined portion of the Hotel Project pursuant to a Sublease.
"Target Dates" means the following dates that have been targeted by Lessee to achieve the
following activities or events:
(a) The "Target Possession Date": the date targeted for satisfaction of the
Possession Conditions, which date is
(b) The "Target Construction Loan Closing Date": the date targeted for Lessee's
closing of the Construction Loan for the Hotel Project, which date is
(c) The "Target Completion Date": the date targeted for completion of construction of
the Hotel Project, which date is
"Term" has the meaning ascribed to it in Section 4.1(a).
"Third Rent Year" has the meaning ascribed to it in Section 4.4(a).
"Transaction Rent" shall have the meaning ascribed to it in Section 4.4(b).
"Transfer" means any sale, assignment or conveyance or any other transaction or series of transactions
in the nature of a sale, assignment or conveyance of:
(a) the Hotel Project or any part thereof;
(b) any legal or beneficial interest in the Hotel Project, or any part thereof;
(c) any direct or indirect legal or beneficial interest in Lessee (including the syndication of
tax benefits); or
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Page 1496 of 1842
any series of such Transfers that have the cumulative effect of a sale, transfer or conveyance of any of
the foregoing (a), (b), or (c).
"Uniform System" means the Uniform System of Accounts for the Lodging Industry, 11th Revised
Edition, as may be modified from time-to-time by the International Association of Hospitality
Accountants, consistently applied, or any successor thereto generally recognized by the Lodging
Industry.
"Work" means the design, permitting, development and construction of the Lessee Improvements in
accordance with the Approved Plans, including all design, architectural, engineering and other
professional services, demolition and construction services, supervision, administration and
coordination services and the provision of all drawings, specifications, labor, materials, equipment,
supplies, tools, machinery, utilities, fabrication, transportation, storage, insurance, bonds, permits and
conditions thereof, zoning approvals, changes required to comply with building codes and
Governmental Approvals, licenses, tests, inspections, surveys, studies, and other items, work and
services that are necessary or appropriate for the demolition of existing structures and other
preparatory or remediation work on the Hotel Site; utility relocations, installations, hook-ups or other
infrastructure as may be required to make the Leased Property suitable for the use of the Hotel Project;
total design, construction, installation, furnishing, equipping, and functioning of the Lessee
Improvements, together with all additional, collateral and incidental items, work and services required
for completion of the Lessee Improvements (including all such items, work and services as are necessary
to provide fully functional and functioning Lessee Improvements).The Work also includes completion of
all Off-Site Improvements.
Section 1.4. Exhibits. If any exhibit to this Lease conflicts with the body of this Lease, the body of
this Lease shall govern.
Section 1.5. Interpretation. All pronouns and any variations thereof shall be deemed to refer to
the masculine, feminine, neuter, singular or plural, as appropriate. The words "herein," "hereof,"
"hereunder," "hereinafter," and words of similar import refer to this Lease as a whole and not to any
particular Article, Section or Subsection hereof. The terms "include" and "including" and words of
similar import shall each be construed as if followed by the phrase "without limitation". This Lease will
be interpreted without interpreting any provision in favor of or against either party by reason of the
drafting of such provision.
ARTICLE II
THE HOTEL PROJECT IMPROVEMENTS
Section 2.1. Development and Conformity of Plans.
(a) Lessee shall be responsible for preparing all plans and specifications for constructing the
Hotel Project.Such plans and specifications shall conform in all material respects to the Approved Plans;
(b) Notwithstanding any other provision or term of this Lease or any Exhibit hereto, the
Approved Plans and all work by Lessee regarding the Hotel Project shall conform to the City Code, the
Florida Building Code and all other Governmental Requirements and, to the extent consistent with the
above,the provisions of this Lease.
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Page 1497 of 1842
Section 2.2. Approved Plans. The City shall have the right to Approve, in its sole discretion, (x)
any substantial deviation of the Hotel Project from the Approved Plans and (y) any Prohibited Hotel
Project Changes. Notwithstanding any Approval provided pursuant to this Section 2.2, Lessee shall be
solely responsible for obtaining all required final, non-appealable Governmental Approvals as more fully
set forth in Article IV of this Lease. Any Approval of the Approved Plans or any component thereof by
the City shall be for its own benefit in its proprietary capacity as the owner of the Leased Property and
shall not be deemed to mean, and the City, in such proprietary capacity, makes no representation, that
such Approved Plans comply with all applicable Governmental Approvals and Governmental
Requirements.
(a) Lessee shall submit to the City Manager, prior to Commencement of Construction, any
proposed modifications to the Approved Plans for the City Manager's determination of whether such
modifications include any substantial deviation of the Hotel Project from the Approved Plans or
Prohibited Hotel Project Changes. Modifications to the Approved Plans shall be indicated by
"ballooning," highlighting, blacklining or describing such modifications in writing in reasonable detail in
an accompanying memorandum. The City shall not be responsible for, and shall not be deemed to have
Approved, any modification to the Approved Plans that is not indicated as required by this Section.
(b) Within twenty-one (21) days of receipt of any proposed modifications to the Approved
Plans, the City Manager shall notify Lessee, in writing, that he approves such modifications, or the basis
for any disapproval of any substantial deviation of the Hotel Project from the Approved Plans or
Prohibited Hotel Project Change; provided, however, that the City shall not disapprove any material
modification necessitated by Governmental Requirements. City's failure to notify Lessee of any
disapproval within such twenty-one (21) day period shall be deemed to constitute the City's conclusive
Approval of the proposed modifications to the Approved Plans. The Approved Plans, as amended by
such Approved modifications, shall thereafter be the Approved Plans referred to herein.
(c) If the City disapproves of any modification pursuant to this Section 2.2, then Lessee
shall, at its election, either (x) submit City's disapproval to expedited arbitration pursuant to Section 7.9
of this Lease, or (y) within thirty (30) days after receiving the City's disapproval notice, submit revised
proposed modifications to the Approved Plans for City's review and Approval as provided in this Section
2.2, provided that the time period for approval or disapproval shall be fifteen (15) days.
(d) At any time during the design development phase of the Hotel Project, Lessee may (but
shall not be required to) submit to the City Manager any proposed modifications to the Approved Plans
for City's review and Approval pursuant to this Section 2.2, so as to mitigate or avoid any potential
delays to the Schedule of Performance as a result of disputes regarding the final proposed Approved
Plans.
Section 2.3. Lessee's Hotel Project Obligations. Subject to the terms hereof, Lessee is
obligated to and shall (i) design, permit, and construct, in a good and workmanlike manner, and at its
sole cost and expense, the Hotel Project in all material respects in accordance with and subject to all of
the terms and provisions of this Lease and to Complete Construction thereof by the Outside Completion
Date, (ii) obtain a certificate of the LEED Status in accordance with Section 133-6 of the City Code and
provide reasonable evidence of such certification to City within a reasonable period following the
Opening Date, and (iii) operate, maintain, repair and replace, at its sole cost and expense, the Hotel
Project in accordance with and subject to all of the terms and provisions of this Lease.
18
Page 1498 of 1842
Section 2.4. Payment of Hotel Project Costs.
(a) As between Lessee and the City, the Lessee shall bear and be solely responsible
for all costs and expenses related to the design, permitting and construction of the Work, the
Hotel Project and its subsequent use, including the following:
(I) Lessee's land use approvals, development fees, and permit fees for the
design, construction, and subsequent use of the Hotel Project;
(ii) Lessee's design and construction of the Hotel Project;
(iii) Lessee's financing, construction bonding and insurance, building permits,
utility installations and/or hook-ups or other infrastructure, as may be required to make the
Leased Property suitable for the use of the Hotel Project;
(iv) Lessee's consultants, accountants, financing charges, legal fees,
furnishings, equipment, and other personal property of the Lessee; and
(v) all other Lessee direct or indirect costs associated with the approvals,
design, construction, and financing of the Lessee Improvements, and their subsequent use.
(b) Lessee acknowledges that the City shall have no maintenance responsibility for
any of the Leased Property and Lessee Improvements, and utilities and infrastructure to be
constructed by Lessee.
(c) Lessee shall be exclusively responsible for all matters relating to underground
utility lines and facilities, including locating, relocating and/or removal, as necessary. Under no
circumstances shall City be responsible for paying the cost of, or otherwise reimbursing Lessee
for, relocation, removal, or payment of charges to utility companies for, any utility lines or
facilities lying on, under, or around the Leased Property. City shall provide reasonable
cooperation and assistance to Lessee in the resolution of issues associated with existing
underground utilities. Lessee shall not remove, disturb, or relocate any existing utilities on the
Leased Property without the City Manager's prior written Approval.
Section 2.5. Financing Matters.
(a) Lessee shall pay for all Improvement Costs from funds required to be provided
under the Equity Commitment, the Initial Hotel Operator Financial Commitment, the
Construction Loan and the Mezzanine Loan, if any; provided that if the proceeds of the
Construction Loan are not available or are inadequate for any reason, Lessee shall be
responsible to provide funds from such other sources as Lessee may identify to pay all costs
and expenses necessary to Complete Construction of the Hotel Project and cause the Opening
Date to occur in accordance herewith.
(b) Lessee shall be solely responsible for obtaining the Construction Loan and the
Mezzanine Loan, if any, for all completion guaranties required in connection with the
Construction Loan and the Mezzanine Loan, if any, and for providing all collateral and other
security, and otherwise satisfying all conditions thereof and covenants, agreements and
obligations of the borrower thereunder. In no event shall City have any responsibility, obligation
or liability with respect to the Construction Loan or the Mezzanine Loan, if any, and Lessee shall
reimburse City for all of City's third party costs and expenses (including attorneys' fees)
19
Page 1499 of 1842
reasonably incurred in connection with any requirements or requests of the Construction Lender
in connection with the Construction Loan or the Mezzanine Lender in connection with the
Mezzanine Loan, if any.
Section 2.6. No Claim for Value of Lessee Improvements. Lessee shall have no claim against
the City for the value of the Lessee Improvements following any termination of this Lease, whether at
the natural expiration of the Term or otherwise, except, with respect to any claims against the City
acting in its governmental capacity, any claims related to a condemnation by the City.
Section 2.7. Schedule of Performance. The schedule attached hereto as Exhibit "F" (the
"Schedule of Performance") sets forth the dates and times of delivery of the Hotel Project, including the
Target Dates, and other milestones for development and approval of the plans and specifications listed
in Section 2.2, preparation and filing of applications for and obtaining all applicable Governmental
Approvals for the Hotel Project and schedule for the completion of the Work. Lessee shall prosecute
completion of the Work substantially in accordance with the Approved Plans (with only such changes
hereto that do not constitute Prohibited Hotel Project Changes, except as otherwise permitted or
Approved pursuant to this Lease), with all commercially reasonable diligence and in good-faith, in good
and workmanlike manner, and in accordance with the Schedule of Performance, time being of the
essence. The dates in Exhibit "F" shall not be extended except for (i) a Force Majeure Event, (ii)
Economic Force Majeure, or (iii) a City Delay. If the Parties disagree with respect to any permitted
delays in the Schedule of Performance, such disagreement shall be resolved in accordance with Section
7.9 hereof.
(a) Lessee shall endeavor, through the use of diligent, good-faith efforts, to cause the
prosecution of the Work in accordance with the Target Dates and other dates set forth in the Schedule
of Performance, but failure to meet the Target Dates shall not be a default under this Lease.
(b) As further delineated in the Schedule of Performance, Lessee shall
Complete Construction by the Outside Completion Date.
(c) The failure of- Lessee (i) to satisfy all of the Possession Conditions by the Outside
Possession Date, (H) after Commencement of Construction has occurred, to Complete Construction by
the Outside Completion Date or (ii) after Commencement of Construction has occurred, to achieve the
Opening Date by the Outside Opening Date shall each be deemed an Event of Default under this Lease.
Section 2.8. Construction Obligations.
(a) Bonds. By no later than Commencement of Construction, Lessee shall provide a
Performance Bond and Payment Bond, with all premiums paid and in favor of Lessee with an obligee
rider in favor of the City and the First Leasehold Mortgagee. Lessee shall also provide City with a
demolition bond or other form of financial instrument reasonably acceptable to City to assure the
availability of funds for demolition or removal of any uncompleted facility in the event Lessee, after
receipt of a written demand from City,fails to demolish and remove the uncompleted facility following
Lessee's failure to substantially complete such facility as required herein.
(b) Approval of Hotel Project General Contractor. Lessee's selection of the Hotel Project
General Contractor shall be subject to the advance Approval of the City Manager,after consultation with
the City Attorney, as to the qualifications and responsibility of the proposed Hotel Project General
20
Page 1500 of 1842
Contractor to perform the contract, based on the contractor's licensure, bonding capacity, financial
capacity, history of compliance with laws, and satisfactory past performance on similar projects.
Provided that the Hotel Project General Contractor proposed by Lessee does not have a significant
history of material non-compliance with the law, City agrees to Approve any Hotel Project General
Contractor proposed by Lessee that satisfies each of the following:
(i) Has a State of Florida Building and Business License;
(ii) Has completed at least one project in the past three years under a
construction contract that specified a guaranteed maximum price at or
above $100,000,000;
(iii) Has completed at least one high-rise hotel of at least eight (8) stories and
four hundred (400) rooms in the last 5 years; and
(iv) Has total bonding capacity in excess of $1 Billion with at least
$250,000,000 available for a single project.
(v) Has not been involved in litigation with the City.
(c) Construction Obligations. Prior to the Outside Completion Date, Lessee shall, or shall
cause its Hotel Project General Contractor to:
(i) Perform and complete the Work;
(ii) Select the means and methods of construction. Only adequate and safe
procedures, methods,structures and equipment shall be used;
(iii) Furnish, erect, maintain and remove such construction plant and such
temporary work as may be required; and be responsible for the safety, efficiency and adequacy of the
plant, appliance and methods used and any damage which may result from failure, improper
construction, maintenance or operation of such plant, appliances and methods;
(iv) Provide all architectural and engineering services, scaffolding, hoists, or any
temporary structures, light, heat, power, toilets and temporary connections, as well as all equipment,
tools and materials and whatever else may be required for the proper performance of the Work;
(v) Order and have delivered all materials required for the Work and shall be
responsible for all materials so delivered to remain in good condition;
(vi) Maintain the Hotel Project site in a clean and orderly manner at all times, and
remove all paper, cartons and other debris from the Hotel Site;
(vii) Erect, furnish and maintain a field office with a telephone at the Hotel Site
during the period of construction in which a supervisor-level employee shall be on site during the
performance of any Work in connection with the Hotel Project; and cause the Hotel Project General
Contractor to require in each subcontract having a price in excess of $5,000,000 (and to require each
subcontractor to require in each sub-subcontract having a price in excess of $5,000,000) that such
subcontractor (and sub-subcontractor) have on-site a supervisor-level employee at all times during the
performance of any Work under such subcontract (and sub-subcontract);
2]
Page 1501 of 1842
(viii) Protect all Work prior to its completion and acceptance;
(ix) Preserve all properties adjacent and leading to the Hotel Site and restore and
repair any such properties damaged as a result of construction of the Hotel Project, whether such
properties are publicly or privately owned;
(x) Implement, and maintain in place at all times, a comprehensive hurricane and
flood plan for the Hotel Site and the Work, and provide a copy of same to the City;
(xi) Upon Completion of Construction, deliver to the City as built drawings and plans
and specifications of the Hotel Project; and
(xii) Upon Completion of Construction, deliver to the City, a copy of the final
certificate of occupancy or certificate of completion, as applicable, for the Hotel Project.
Notwithstanding any provision hereof to the contrary, at no time during construction of the Hotel
Project may Lessee make any Prohibited Hotel Project Changes without the express, prior written
Approval of City (which Approval may be granted or withheld by City in City's sole and absolute
discretion).
(d) Completion of Construction. Lessee shall carry on any construction, maintenance or
repair activity with diligence and dispatch and shall use diligent, good-faith efforts to complete the same
in accordance with the Schedule of Performance. Lessee shall not, except if an emergency exists (then
only to the extent that the City can grant such an exception), carry on any construction, maintenance or
repair activity in any easement area that unreasonably interferes with using and enjoying the property
encumbered by such easement.
(e) Skvbridge and Off-Site Improvements. Lessee shall deliver the proposed Approved
Skybridge and Off-Site Improvements Plans to the City for Approval as required to maintain the
Schedule of Performance. The 25 surface parking spaces for Fillmore Theater personnel to be
constructed by Lessee as part of the Off-Site Improvements will be constructed as depicted on Exhibit
"U" hereto. Lessee shall have no obligations or liabilities with respect to the ownership or operation of
such parking spaces after completion.
Section 2.9. Progress of Construction/Citv's Representative.
(a) Lessee shall keep the City apprised of Lessee's progress regarding the Work. Lessee shall
deliver written reports of same not less than monthly;and
(b) The City may, from time-to-time, designate one or more employees or agents to be the
City's representative ("City's Representative"), who may, during normal business hours, in a
commercially reasonable manner, visit, inspect and monitor the Hotel Project, the materials to be used
thereon or therein, contracts, records, plans, specifications and shop drawings relating thereto,whether
kept at Lessee's offices or at the Hotel Project construction site or elsewhere, and the books, records,
accounts and other financial and accounting records of Lessee wherever kept, as often as may be
requested. Further, City's Representative shall be advised of, and entitled to attend, meetings among
Lessee, Lessee's representative and the Hotel Project General Contractor or any subset of this group.
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Page 1502 of 1842
Lessee will cooperate with the City to enable City's Representative to conduct such visits, inspections
and appraisals. Lessee shall make available to City's Representative for inspection, with commercially
reasonable notice, daily log sheets covering the period since the immediately preceding inspection
showing the date,weather, subcontractors on the job, number of workers and status of construction.
Section 2.10. Delivery of Plans.
Promptly after completing the Work and Lessee's receipt of a Certificate of Occupancy, as applicable,for
the Work, Lessee will deliver to the City a copy of the plans and specifications, including shop drawings,
for the Lessee Improvements.
Section 2.11. Connection of Buildings to Utilities.
(a) Lessee, at its sole cost and expense for the Leased Property and in compliance with all
Governmental Approvals and Governmental Requirements, shall install or cause to be installed all
necessary connections between the Lessee Improvements, and the water, sanitary and storm drain
mains and mechanical and electrical conduits whether or not owned by the City.
(b) Lessee shall pay for the cost, for the Leased Property, if any, of locating, grounding and
installing within the Leased Property, as applicable, new facilities for sewer, water, electrical, and other
utilities as needed to service the Hotel Project, and, at its sole cost and expense for the Leased Property,
will install or cause to be installed inside the property line of the Leased Property, all necessary utility
lines, with adequate capacity and the sizing of utility lines for the Hotel Project, as contemplated on the
Approved Plans.
Section 2.12. Permits and Approvals. Lessee shall secure and pay for all Governmental Approvals
for the Work, including any alterations and renovations made pursuant to Section 2.15, and shall pay
any and all fees and charges due to and collected by the City or any other Governmental Authority
connected with issuing such Governmental Approvals,if any.
Section 2.13. City and Lessee to Join in Certain Actions. Within fifteen (15) days after
receiving a written request from Lessee that is consistent with all Governmental Requirements and in
accordance with this Lease,the City shall join Lessee when required by law in any and all applications for
Governmental Approvals as may be commercially reasonably necessary for constructing of the Hotel
Project. Lessee shall pay all fees and charges for all such applications. Failure of the City to perform as
requested within such fifteen (15) day period shall be deemed a City Delay for the number of days of
delay beyond such fifteen (15)day period.
Section 2.14. Compliance with Laws. Lessee will comply with any Governmental Requirements in
constructing and operating the Hotel Project.
Section 2.15. Alterations and Renovations. After completing the Work, if Lessee wishes to make
alterations or renovations thereof:
(a) no renovation or alteration shall be made until Lessee obtains all required
Governmental Approvals, at Lessee's sole cost and expense;
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Page 1503 of 1842
(b) except for FF&E, any renovation or alteration of Lessee Improvements that involves a
substantial deviation from the Approved Plans or otherwise substantially affects the overall character or
appearance of the exterior of the Hotel Project, unless required by Governmental Requirements shall
require the City's approval in its proprietary capacity in its sole discretion; and
(c) all such alterations and renovations shall be performed by duly licensed and insured
contractors in a good and workmanlike manner, and in any event, shall be consistent with the Hotel
Standards.
Section 2.16. Art in Public Places. Lessee shall comply with the City's Art In Public Places (AIPP)
program requirements under Section 82-536 through 82-612 of the City Code, as applicable, and shall
contribute to the City's Art in Public Places fund the total of 1.5% of the "construction cost" of the Hotel
Project, as such term is defined in Section 82-537 of the City Code, no later than date of execution of the
Hotel Project General Contract by Lessee and the Hotel Project General Contractor, as required by the
City Code.
ARTICLE III
LAND USES AND DEVELOPMENT OBLIGATIONS
Section 3.1. Covenant Regarding Land Uses. Lessee agrees and covenants to devote, during
the Term of this Lease, the Hotel Project only to the uses specified in this Lease and to be bound by and
comply in all material respects with all of the provisions and conditions of this Lease. In addition, and
except as hereinafter set forth, Lessee shall not have the right to seek or obtain different uses or a
change in such uses either by requesting a zoning change or by court or administrative action without
first obtaining the City's Approval,which Approval may be granted or denied in the City's sole discretion.
Section 3.2. Applications for Development Approvals and Development Permits.
Promptly following the Effective Date of this Lease, the Lessee will initiate and diligently pursue all
applications for Development Orders and Development Permits that may be required in connection with
the Hotel Project. Lessee shall be solely responsible for obtaining all final, non-appealable Development
Orders and Development Permits for the Hotel Project. No extension of any time period herein shall be
deemed to be an extension of any time periods contained within the Development Permits or
Development Orders.
Section 3.3. Concurrency. Lessee shall be solely responsible for obtaining all land use permits,
including all permits and approvals required pursuant to Section 163.3180, Florida Statutes,
with
h respect
parks and
to concurrency requirements for roads, sanitary sewer, solid waste, drainage, potable
watrecreation, and schools (the "Concurrency Requirements"). Prior to applying for its building permit for
the Hotel Project, Lessee shall apply to the appropriate Governmental Authorities and obtain letters or
other evidence that Lessee has obtained all applicable Concurrency Requirements, and shall diligently
and in good faith obtain such letters or other evidence that the Hotel Project meets all applicable
Concurrency Requirements and shall pay such impact fees as may then be due or applicable to meet
Concurrency Requirements.
Section 3.4. Compliance with Local Regulations Regarding Development Permits. This
Lease is not and shall not be construed as a Development Permit, approval or authorization to
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Page 1504 of 1842
commence any development, fill, or other land modification. The Lessee and the City agree that the
failure of this Lease to address a particular permit, approval, procedure, condition, fee, term or
restriction in effect on September 2, 2015 shall not relieve Lessee of the necessity of complying with the
regulation governing said permitting requirements, conditions, fees, terms or restrictions, subject to the
terms of this Lease.
Section 3.5. Consistency with the City's Comprehensive Plan. The City has adopted and
implemented the Comprehensive Plan. The City hereby finds and declares that the provisions of this
Lease dealing with the Hotel Site and the Hotel Project are consistent with the City's Comprehensive
Plan and Land Development Regulations (subject to all applicable requirements, permits and approvals).
Section 3.6. Presently Permitted Development. The development that is presently permitted
on the Leased Property, including population densities, and building intensities and height, which are
subject to this Lease, are more specifically set forth in Exhibit "H" hereto.
Section 3.7. Public Facilities to Serve the Leased Property. A description of the public
facilities that will service the Hotel Project of the properties subject to this Lease, including who shall
provide such facilities; the date any new facilities, if needed, will be constructed; and a schedule to
assure public facilities are available concurrent with the impacts of the development is included as
Exhibit"I" hereto.
Section 3.8. Public Reservations, Dedications. A description of the reservations and/or
dedications of land for public purposes that are proposed under the terms of this Lease is included as
Exhibit"1" hereto.
Section 3.9. Required Development Permits. Attached and made a part hereof as Exhibit "K" is
a listing and description of certain local development permits approved or needed to be approved for
the development of the Hotel Project, provided that City makes no representation or warranty that the
information set forth on Exhibit "K" is correct or complete, Lessee releases City from any liability with
respect to such information and Lessee acknowledges and Lessee agrees that Lessee is solely
responsible for confirming the correctness and completeness of such information and obtaining all
applicable Governmental Approvals whether or not set forth on Exhibit"K".
Section 3.10. Responsible Wages and Local Employment. The City and Lessee support and
encourage the application of responsible wages and City of Miami Beach and Miami-Dade County
workforce hiring with respect to the Hotel Project.
Section 3.11. Laws Governing this Lease. For the entire Term of this Lease, the City hereby
agrees that the City's Land Development Regulations governing the development of the Leased Property
as they exist as of , _, _[date of lease execution] of this Lease shall govern the
development of the Leased Property and the Hotel Project during the Term. Notwithstanding the
foregoing, the City may apply subsequently adopted laws or policies to the Leased Property and the
Hotel Project (particularly as they may relate to quality of life issues such as, but not limited to noise,
litter, and hours of operation) as permitted or required by the Act, including,without limitation, Section
163.3233(2), Florida Statutes, as same may be amended from time to time; provided, however, that this
provision shall not be deemed to apply to regulations governing height, floor area ratio (FAR), density,
parking requirements or permitted uses.
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Page 1505 of 1842
Section 3.12. Duration of Development Rights. Notwithstanding any provision to the contrary in
this Lease, the development rights and responsibilities granted to Lessee hereunder shall run for an
initial term of six (6) years from the Effective Date, and may be extended by mutual consent of the City
and the Lessee subject to a public hearing(s) pursuant to Section 163.3225, Florida Statutes. Consent to
any extension of the development rights granted herein is within the sole discretion of each Party. No
notice of termination shall be required by either Party upon the expiration of the development rights
granted pursuant to this Lease, provided, however, that the Parties' obligations for the failure to satisfy
Possession Conditions shall be as provided for in Section 4.1(f) and any other applicable provisions of
this Lease.
Section 3.13. Lessee's Right of Termination. Notwithstanding anything to the contrary herein,
Lessee shall have the right to terminate this Lease prior to the Possession Date due to (I)changes to the
Approved Plans required by the City's Design Review Board or any other Governmental Authority
(including the City) that render the Hotel Project economically unfeasible in the reasonable business
judgment of Lessee; (ii) the Hotel Project cannot meet the Concurrency Requirements, or the costs of
concurrency mitigation are, in the reasonable business judgment of Lessee, economically unfeasible; or
(c) Lessee, after its diligent good-faith efforts, has been unable to obtain a full building permit for the
Hotel Project. In the event of termination pursuant to this Section 3.13, each Party shall bear its own
costs and expenses incurred in connection with this Lease and, neither Party shall have any further
liability to the other Party.
ARTICLE IV
GENERAL TERMS OF LEASE
Section 4.1. Lease of Leased Property to Lessee. Subject to the conditions set forth in this
Lease, including the occurrence of the Possession Date, the payment of all Rent and all other payments
by Lessee provided herein, and the City's and Lessee's performance of their duties and obligations
required by this Lease:
(a) Demise. The City, as of the Possession Date, demises and leases to Lessee, and Lessee
takes and hires from the City, the Leased Property for a term of approximately ninety-nine (99) years
ending on December 31°` of the last Lease Year prior to the 99th anniversary of the Possession Date (the
"Term"). Within thirty (30) days after the Possession Date, the City and Lessee, upon request of either
Party, shall execute a commencement date agreement and/or one or more written memoranda in such
form as will enable them to be recorded among the Public Records of Miami-Dade County, in each case,
setting forth the beginning and termination dates of the Term, determined according to this Lease, and
recording any such other documents as may be required under this Lease.
(b) Possession Date; Conditions Precedent to Possession. The Parties recognize that as of
the Effective Date there remain various items and matters to be satisfied, obtained and Approved in
order that the Hotel Project may proceed as intended by the Parties. The date that the City delivers
possession of the Leased Property to Lessee according to this Section 4.1(b), as designated by the City to
Lessee in writing, is referred to herein as, the "Possession Date." The City shall not be obligated to
deliver possession of the Leased Property and Lessee's rights as tenant hereunder shall not become
effective until each of the events described in this Section 4.1(b) irrevocably shall have occurred, at
which time, the City shall deliver possession of the Leased Property to Lessee, Lessee shall take
possession thereof and the lease provisions of this Lease shall become effective. Until that time, this
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Page 1506 of 1842
Lease shall be construed to be in the nature of a development agreement, and not a lease. The
conditions precedent to delivery of possession (collectively, the "Possession Conditions") are as follows:
(i) There exists no uncured Event of Default;
(ii) Lessee shall have entered into, and delivered to the City a duly executed copy
of, the Hotel Project General Construction Contract (and all then existing change orders thereto), in
form and substance and with a Hotel Project General Contractor Approved pursuant to Subsection
2.8(b) by the City Manager reflecting the guaranteed maximum price for completion of the Lessee
Improvements;
(iii) Lessee shall have delivered to City written evidence reasonably satisfactory to
the City of the existence and availability of (A) Liquid Assets to fund the Equity Commitment, (B) Initial
Hotel Operator Financial Commitment, (C) the Mezzanine Loan Commitment, if any, and (D) the
Construction Loan Commitment, all of which together demonstrate that the Hotel Project is In Balance;
(iv) Lessee shall have provided to City, and City Manager shall have Approved in its
sole discretion, any changes to the Budgeted Improvement Costs, provided that City Manager shall not
withhold its Approval so long as Lessee has obtained and delivered to the City written evidence of the
existence and availability of (A) Liquid Assets to fund the Equity Commitment, (B) the Initial Hotel
Operator Financial Commitment, (C) the Mezzanine Loan Commitment, if any, and (D) the Construction
Loan Commitment that demonstrate that the Hotel Project is In Balance;
(v) Lessee shall have reimbursed the City for the costs associated with the City's
voter referendum in connection with this Lease, not to exceed Twenty Five Thousand Dollars (525,000).
(vi) Lessee shall have obtained, and shall have delivered to City a copy of, all
Governmental Approvals necessary for the Commencement of Construction and necessary for
construction of all vertical elements of the Hotel Project;
(vii) Lessee and the Initial Hotel Operator shall have delivered to the City an
instrument or instruments reasonably acceptable to the City (A) certifying that Lessee and the Initial
Hotel Operator have duly executed and entered into the Management Agreement and any related
franchise, technical services and/or centralized services agreements, that the Management Agreement
and any other such agreements are in full force and effect and there are no defaults (or any events that
could ripen into defaults) and attaching a true and correct copy of the Management Agreement and any
such other agreements thereto, (B) acknowledging that for so long as the Initial Hotel Operator is
managing and operating the Hotel Project it shall observe and comply with the Room Block Agreement
and (C) in the form of an agreement among Lessee, the Initial Hotel Operator and the City, to the effect
that if this Lease is terminated as a result of any Event of Default, the Hotel Operator shall, at the City's
option, continue to perform under the Management Agreement in accordance with the terms thereof
so long as the Hotel Operator is being paid compensation thereafter accruing under the Management
Agreement and the City shall perform, and the Hotel Operator shall accept the City's performance of,
the duties and obligations under the Management Agreement to be performed by the Lessee, as
"owner," thereunder, but only to the extent accruing from and after the date of termination of this
Lease; provided, however, if the First Leasehold Mortgagee enters into a similar agreement with the
Lessee and the Hotel Operator, the City agrees that the Hotel Operator shall continue to perform and
such performance shall not be optional on the part of the City;
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Page 1507 of 1842
(viii) Lessee shall have delivered to City, and City Manager shall have Approved, the
Schedule of Performance for the Hotel Project (City agrees that it shall not withhold Approval thereof so
long as the same reflects Completion of Construction by the Outside Completion Date and Lessee has
provided reasonable evidence that such schedule is reasonable);
(ix) Lessee shall have presented evidence reasonably acceptable to the City that all
required insurance coverages are in place;
(x) Lessee shall have delivered to the City Manager reasonable evidence that the
Approved Plans have been approved by the First Leasehold Mortgagee and the Initial Hotel Operator;
(xi) Lessee shall have delivered to the City, a duly executed Assignment of Plans and
Approvals, a duly executed Assignment of Hotel Project General Construction Contract and a duly
executed Assignment of Contracts and Agreements;
(xii) Lessee shall have delivered to the City reasonable evidence that Lessee has
invested the [PROPOSER] Minimum Equity Contribution prior to the Possession Date, or if the
[PROPOSER] Minimum Equity Contribution has not been invested prior to the Possession Date, Lessee
shall deposit the balance of the unfunded amount of the [PROPOSER] Minimum Equity Contribution in
escrow with an escrow agent reasonably satisfactory to the City to be drawn by Lessee on a monthly
basis based upon presentation of invoices for Budgeted Improvement Costs;
(xiii) Lessee has provided to the City reasonable evidence that all conditions to
funding the Construction Loan that can be satisfied as of such date have been satisfied and the Lessee
has paid all commitment or loan fees due under the Construction Loan documents; and
(xiv) the representations and warranties made by the Lessee in this Lease pursuant
to Sections 4.3(a) and 5.2 remain true and correct in all material respects on and as of the Possession
Date.
(c) Pre-Possession Period. From and after the Effective Date, the Parties shall each use
their respective diligent and commercially reasonable efforts to achieve the Possession Date timely.
(d) Hotel Site Inspections. Commencing on the date hereof and thereafter until this Lease
is terminated or the Possession Date occurs,the City shall permit Lessee commercially reasonably access
to the Hotel Site to conduct at Lessee's sole cost and expense, physical inspections, tests and studies of
the Hotel Site and to the extent necessary to carry out the provisions of this Lease; provided, however,
that such access shall not materially interfere with any ongoing operations at the Convention Center or
the Fillmore Theater. Lessee, at all times and at its sole cost and expense, shall maintain or shall cause
its Hotel Project General Contractor or other contractors in privity with Lessee to maintain,
comprehensive general liability insurance as required in Article IX. Lessee shall restore any damage to
the Hotel Site caused by any such inspections, tests or studies; provided that in no event shall Lessee be
responsible for the discovery, exposure or release of hazardous substances or materials in, on or about
the Hotel Site that are not introduced to the Hotel Site by Lessee, its agents, representatives,
contractors, invitees or employees.
28
Page 1508 of 1842
(e) Indemnification. Whether or not the Possession Date occurs, Lessee shall indemnify,
defend and hold City and its respective officers, employees, agents, representatives, consultants,
counsel and contractors (of any tier) harmless from and against all claims, actions, suits, charges,
complaints, orders, liability, damages, loss, costs and expenses (including any attorneys' fees and costs
of litigation) related to, arising from or in connection with the acts or omissions of Lessee, its agents,
representatives, contractors or employees, including injury or death to persons or damage to their
property, while exercising Lessee's right to access the Hotel Site and performance of such inspections,
tests or studies pursuant hereto, except to the extent resulting from the negligence or willful
misconduct of City or its officers, employees, agents, representatives, consultants, counsel and
contractors, and except as limited in paragraph (d) above. The indemnification obligations of Lessee set
forth in this paragraph shall expressly survive the expiration or termination of this Lease and
notwithstanding any provision of this Lease to the contrary, City shall have all rights and remedies
available at law or in equity in the enforcement of such indemnification obligations of Lessee or arising
from Lessee's failure to perform such indemnification obligations.
(f) Failure to Satisfy Conditions. Notwithstanding anything contained in this Lease to the
contrary, if: (i) any of the Possession Conditions have not occurred by the Outside Possession Date; (ii)
Lessee does not close the Construction Loan by the Outside Construction Loan Closing Date; (iii) Lessee
does not commence construction by the Outside Construction Commencement Date; (iv) Lessee does
not Complete Construction by the Outside Completion Date; or (v) the Opening Date does not occur by
the Outside Opening Date, then notwithstanding anything to the contrary set forth in Section 7.1 below,
Lessee hereby waives any further right to cure, and the City shall be entitled to immediately revoke the
licenses granted to Lessee pursuant to the Assignment of Plans and Approvals, the Assignment of Hotel
Project General Construction Contract and the Assignment of Contracts and Agreements and to
immediately terminate this Lease upon written notice to the Lessee; provided that Lessee shall also have
the right to immediately terminate this Lease upon written notice to the City on or before the Outside
Possession Date if the event described in clause (i) of this Section 4.1(f) does not occur as described
therein and in any such event, the Parties shall thereafter be released from all obligations set forth
herein except any such obligations that expressly survive termination.
(g) Easements. Lessee agrees that this Lease shall be subject to and contingent upon the
execution of certain easements, including any applicable access easements. On the Possession Date,the
easements in substantially the forms attached hereto as Exhibit"G" (the "Easements")shall be executed
by all necessary parties. The Parties shall also, prior to the Possession Date, enter into any easements
which may be required by Lessee to connect utilities to the Hotel Site as shown in the Approved Plans.
The Parties shall thereafter cause the Easements to be promptly recorded among the public records of
Miami-Dade County, Florida. The Easements shall be held in escrow by the City and released therefrom
and recorded among the public records of Miami-Dade County, Florida prior to the Commencement of
Construction.
Section 4.2. Restrictive Covenants.
(a) Permitted Use. Lessee shall operate the Hotel Project throughout the Term as a
convention hotel for the accommodation of hotel guests, and for related banquet, meeting and similar
purposes, with related retail shops, restaurants and such other amenities as are consistent with the
Hotel Standards.
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Page 1509 of 1842
(b) Use Restrictions. The Hotel Project shall not be used by Lessee, nor shall Lessee
knowingly permit the use thereof by any other Person for the following: (i) any unlawful or illegal
business, use or purpose; (ii) any business, use or purpose which is immoral, disreputable (including
"adult entertainment establishments" and "adult" bookstores) or extra-hazardous; (iii) a nightclub
where the sale of food is only incidental to the sale of alcoholic beverages and where the establishment
is licensed and primarily operated from midnight to 5:00 a.m. as a "Dance hall" or "Entertainment
Establishment" as defined by Section 114-1 of the City of Miami Beach Code (other than and specifically
excluding the Hotel's lobby bars, rooftop bars or cocktail lounges, pool bars, restaurants, banquet
functions or other similar food and beverage operations contemplated as part of the Approved Plans or
the Mandatory Hotel Project Design Elements); (iv) any Gaming Establishment (whether or not such use
is permitted by applicable law), or (v) any use that constitutes a public nuisance of any kind. Lessee shall
have no right to convert the use of the Hotel Project or any portion thereof to any time sharing, time
interval or cooperative form of ownership, or to subject the same to any condominium regime.
(c) Nuisances Disallowed. Lessee shall not make any use of the Leased Property, nor shall it
allow any of its sub-lessees or invitees to make use of the Leased Property, in a manner that creates or
reasonably will lead to a public or private nuisance under state or local law. Upon notification by City
that such a nuisance is then being allowed on the Leased Property, Lessee shall promptly take steps
necessary to abate such nuisance to the City's reasonable satisfaction. City shall retain all of its contract
rights to abate a nuisance under the terms of this Lease, as well as its regulatory rights to abate such
nuisance in accordance with then-current law.
(d) No Discrimination. Lessee shall comply with, and shall cause others to comply with,
Governmental Requirements prohibiting discrimination by reason of race, color, national origin, religion,
sex, intersexuality,gender identity, sexual orientation, marital and familial status, and age or disability in
the sale, lease, use or occupancy of the Hotel Project or any portion thereof. Lessee's compliance with
the City's Human Rights Ordinance, codified in Chapter 62 of the City Code, as may be amended from
time to time, shall be a material term of this Lease. Lessee shall cause for this provision to be
incorporated in the Management Agreement with the Hotel Operator.
(e) Lessee's Rights To Operate a Convention Hotel Not Exclusive. Except as specified
herein, it is expressly understood and agreed that the rights granted under this Lease are non-exclusive
and City reserves the right to grant similar privileges and similar leases to other lessees on other City-
owned or leased property, and to take any and all actions (including the leasing of City property other
than the Leased Property for any lawful purpose)that City is permitted to take under federal,state, and
local law.
(f) Room Block Agreement. Lessee shall operate, and cause the Hotel Operator to
operate, the Leased Property in material compliance with the terms of the Room Block Agreement
throughout the Term. In addition, Lessee shall not receive any commission, rebate or other
compensation from any hotel located in the City of Miami Beach with respect to any group room block
or room bookings made by any such Miami Beach hotel.
(g) No Ownership Interests in Gaming Establishments in Miami-Dade County. Lessee, and
any Persons with an ownership interest in Lessee, shall not, directly or indirectly, own, operate or
manage a Gaming Establishment in Miami-Dade County, Florida; provided, however, that the foregoing
restriction shall not prevent Persons having an ownership interest in Lessee, from owning or Controlling
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Page 1510 of 1842
in the aggregate five percent (5%)or less of the voting securities of any owner, operator or manager of a
Gaming Establishment in Miami-Dade County, Florida.
(h) Enforceability. The restrictive covenants contained in this Section 4.2 shall be binding
upon the Parties and shall be for the benefit and in favor of, and enforceable by, the Parties, and their
successors and assigns, as the case may be. It is further understood that such covenants shall not benefit
or be enforceable by any other Person.
Section 4.3. Representations.
(a) Lessee's Representation. Lessee represents to the City that its principals and Affiliates
are experienced in the development, construction, leasing and operation of hotel properties generally,
and that Lessee has independently determined the merits and risks of electing to proceed with the
development of the Hotel Project, and that Lessee is not and, will not be relying upon any information
that may have been or hereafter be provided to Lessee with respect to or relating to the financial results
derived from, financial merits of investing in, or other economic or other benefits that may be realized
from the development, construction, leasing and operation of the Hotel Project or sale of Lessee's
interests in this Lease.
(b) No Representation or Warranties By City. Lessee acknowledges and agrees that it will
be given the opportunity to perform all inspections and investigations concerning the Leased Property
to its satisfaction prior to the Possession Date, and the City (i) except as specifically provided in this
Lease, is not making and has not made any representations or warranties, express or implied, of any
kind whatsoever with respect to the Leased Property, including any representation or warranty of any
kind with respect to title, survey, physical condition, suitability or fitness for any particular purpose, the
financial performance or financial prospects of the Hotel Project, its value, or any other economic
benefit that can be realized or expected therefrom, the presence or absence of Hazardous Substances,
the tenants and occupants thereof,the zoning or other Governmental Requirements applicable thereto,
taxes, the use that may be made of the Leased Property, or any other matters with respect to this
transaction or Lease); (ii) Lessee has relied on no such representations, statements or warranties, and
(iii) City will in no event whatsoever be liable for any latent or patent defects in the Leased Property
(including any subsurface conditions).
(c) "AS IS" Condition of Leased Property. Lessee acknowledges it has relied solely on
Lessee's own inspections, tests, evaluations and investigations of and related to this Lease and the
Leased Property in its determination of whether to proceed with this Lease and the Hotel Project. As a
material part of the consideration of this Lease, Lessee agrees to accept the Leased Property on the
Possession Date in its "AS IS" and "WHERE IS" condition "WITH ALL FAULTS" and latent or patent
defects, and without representations and warranties of any kind, express or implied, or arising by
operation of law.
(d) The provisions of this Section 4.3 shall survive the termination of this Lease.
Section 4.4. Rent and Other Payments. Lessee covenants and agrees to pay the City, from and
after the date hereof and during the Term the following Rent, as applicable:
(a) Base Rent. Commencing as of the (i) Opening Date (the "Rent Commencement Date"),
and except as set forth below, monthly rent in the amount of the greater of (x) percent (_%) of
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Page 1511 of 1842
the Gross Operating Revenues for such month or (y) one-twelfth (1/12'") of the Minimum Fixed Rent set
forth in Section 4.4(a)(i) of this Lease ("Base Rent"). (INSERT FINAL % AND MINIMUM RENT
NEGOTIATED WITH SUCCESSFUL PROPOSER]
•
The Base Rent shall be due and payable on or before the twenty-fifth (251h) day of each month following
the month for which the Base Rent is applicable; provided that the Additional Base Rent shall be due
and payable on or before the twenty-fifth (25th) day after the end of each Rent Year. Prior to the closing
of the Construction Loan, Lessee shall provide City with a copy of the pro forma accepted by the
Construction Lender in connection with the closing of the Construction Loan.
(i) Minimum Fixed Rent. 'Minimum Fixed Rent" shall be an annual fixed rent
payable in twelve (12) equal monthly installments, prorated as to any partial month, commencing on the
Rent Commencement Date and continuing on the first day of each month thereafter, Attached as
Exhibit "R" hereto is a schedule setting forth the Minimum Fixed Rent for the period commending on
the Rent Commencement Date and ending on December 31 of the year in which the tenth (10th)
anniversary of the Rent Commencement Date occurs; provided that the amount shown for the first year
shall apply for the period commencing on the Rent Commencement Date and ending on December 31 of
the year in which the first anniversary of the Rent Commencement Date occurs, prorated for any partial
calendar years. Commencing on January 1 following the tenth anniversary of the Rent Commencement
Date, and every ten (10) Lease Years thereafter (each, a "Minimum Fixed Rent Reset Date"), the
Minimum Fixed Rent shall be adjusted to equal the greater of (x) the Minimum Fixed Rent payable for
the period immediately preceding the Minimum Fixed Rent Reset Date, or (y) fifty-five percent (55%) of
the average Base Rent payable for each twelve month period during the preceding ten (10) calendar
year periods; provided that for the first Minimum Fixed Rent Reset Date item (y) shall be fifty-five
percent(55%) of the average Base Rent for each twelve month period payable during the preceding five
(5) calendar year period. [PROPOSERS TO COMPLETE EXHIBIT R AND OFFER MINIMUM FIXED
RENT/SUBJECT TO NEGOTIATION]
(ii) Each Base Rent payment shall be accompanied with documentation sufficient
for City to verify the accuracy of the Base Rent payment, and in a format and of a detail reasonably
required by City.
(iii) By May 1 of each year following the Rent Commencement Date, Lessee shall
provide City with a certified report, prepared and attested to by an independent CPA, as to the correct
Gross Operating Revenues for the previous calendar year. The report shall be prepared in accordance
with the American Institute of Certified Public Accountants' requirements for special reports. All Base
Rent payments and annual reports are subject to audit under Section 4.4(j).
(iv) Lessee shall be responsible for any applicable sales tax payable in connection
with the Rent.
(b) Transaction Rent. Lessee covenants and agrees to pay the City as Additional Rent,
within sixty (60) days after the closing of the first three (3) Transfers effecting either a sale of the entire
Hotel Project or a Transfer of a Controlling interest in Lessee to an unaffiliated third party (other than a
Transfer (i) pursuant to a foreclosure of a Leasehold Mortgage or a delivery by Lessee of a deed in lieu
thereof or(ii) pursuant to a foreclosure of the pledge of ownership interests of Lessee granted pursuant
to a Mezzanine Loan or Credit Enhancement or a delivery by Lessee of an assignment in lieu thereof), an
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Page 1512 of 1842
amount equal to 0.25% of the gross sales price (less typical closing adjustments and credits) in
connection with such Transfer (each "Transaction Rent").
(i) An example of calculating Transaction Rent pursuant to Section 4.4(b) is set
forth on Exhibit "O".
(c) Non-subordination of Rent. The Rent payable to City hereunder shall never be
subordinated, including to any sums due under the Construction Loan or any other financing by Lessee,
and City shall at all times have a first priority right to payment of the Rent from Gross Operating
Revenues.
(d) Payment of Rent and Other Payments. All Rent and other payments hereunder
required to be made to the City shall be paid to the City at the Office of the Director of Finance, Miami
Beach City Hall, 1700 Convention Center Drive, 3rd Floor, Miami Beach, Florida 33139 and in such
manner or at such other place as the City shall designate from time-to-time in a notice given pursuant to
the provisions of Section 14.5.
(e) Late Payment Charge. In the event the Lessee fails to make any payments, as required
to be paid under the provisions of this Lease, within fifteen (15) days after same shall become due,
interest at the Default Rate shall accrue against the delinquent payment(s) from the original due date
until the City actually receives payment.The right of the City to require payment of such interest and the
obligation of the Lessee to pay same shall be in addition to and not in lieu of the rights of the City to
enforce other provisions herein, including termination of this Lease, and to pursue other remedies
provided by law. All payments of money required to be paid to the City by Lessee under this Lease other
than Base Rent, including interest, late fees, penalties and contributions, shall be treated as Additional
Rent.
(f) Dishonored Check or Draft. In the event that the Lessee delivers a dishonored check,
draft or wire transfer to the City in payment of any obligation arising under this Lease,the Lessee shall
incur and pay City an amount that is three (3)times the service fee incurred by City for such dishonored
check or draft. Further, in such event, the City may require that future payments required pursuant to
this Lease be made by cashier's check or other means acceptable to the City.
(g) Holdover Rental. In the event that the Lessee remains in possession of the Leased
Property beyond the Term or termination of this Lease, the Lessee shall be bound by all of the terms and
conditions of this Lease to the same extent as if this Lease were in full force and effect during the time
beyond the expiration date of this Lease. However, during any such possession of the Leased Property,
as a holdover tenant after the City has demanded the return of the Leased Property,the Lessee shall be
liable for double the Base Rent being paid at that time, or, if Section 83.06, Florida Statutes, as amended
provides a greater amount,then whatever greater amount is specified in the Florida Statutes.
(h) No Abatement of Rent. Except as may be otherwise expressly provided herein, there
will be no abatement, diminution or reduction of Rent payable by Lessee hereunder or of the other
obligations of Lessee hereunder under any circumstances.
(i) Lessee Improvements Not Deemed Rent. The Lessee Improvements will be made by
Lessee in order to put the Leased Premises in a condition suitable for the operation of the Lessee's
business. The cost or value of the Lessee Improvements is intended by the parties to inure solely to the
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Page 1513 of 1842
benefit of the Lessee and no portion of such cost or value is intended to inure to the benefit of the City
or constitute rent, license fee or other consideration for the right to occupy the Leased Property or the
Lessee Improvements until the surrender of the Leased Property from Lessee to the City at the
expiration or earlier termination of this Lease.
(j) Records and Reporting.
(i) For the purpose of permitting verification by the City of any amounts due to it,
including an account of Gross Operating Revenues, Base Rent and Transaction Rent, Lessee shall keep
and preserve for at least five (5) years in Miami-Dade County, Florida, at the address specified in Section
14.5, or at its home office, auditable original or duplicate books and records for the Hotel Project, which
shall disclose all financial information regarding the Hotel Project, including information required to
determine Base Rent and Transaction Rent. All such records shall be maintained in every material
respect according to GAAP and, as applicable to the Hotel, the Uniform System. The City shall, on
commercially reasonable notice, have the right during normal business hours at the expense of the City
unless otherwise provided herein to inspect such books and records and make any examination or audit
or copy thereof which the City may require at any time within one year after(a) submittal of the annual
certification to City set forth in Subsection 4.4(1101) with respect to the Gross Operating Revenues, and
(b) a Transfer pursuant to which Transaction Rent is due in accordance herewith, with respect to the
gross sales price of such Transfer, as applicable. Records copied by the City, if any, shall be subject to
the requirements of the Florida Public Records Act set forth in Chapter 119 of the Florida Statutes
("Public Records Act"). To the fullest extent permitted by law, City shall protect from disclosure any
records that are confidential and exempt from disclosure under Florida law, provided, however, that
nothing herein shall preclude the City or its employees from complying with the disclosure requirements
of the Public Records Act, and any such compliance shall not be deemed an event of default by the City
under this Lease. City shall use its good-faith, diligent efforts to provide timely written notice to Lessee
of any public records request seeking any records of the Lessee that may be within the City's custody,
possession or control, to permit Lessee the opportunity to seek to protect such information from
disclosure. If such audit shall disclose a liability for Rent in excess of the Rent theretofore paid by
Lessee for the period in question, Lessee shall pay such excess amounts, together with interest at the
Default Rate, as Additional Rent within thirty (30) days after receipt of written demand therefor, and if
such audit shall disclose an overpayment of the Rent theretofore paid, the City shall return the excess to
Lessee within thirty(30)days after receipt of written demand therefore.
(ii) Lessee shall provide the City with an annual Audited Gross Operating Revenues
Schedule for each Lease Year during the Term, certified by the Lessee's outside CPA, within one hundred
twenty (120) days after the close of each Lease Year (including the Lease Year in which this Lease
terminates or is terminated) specifying the Gross Operating Revenues, for each of the categories or
items identified in the definition of Gross Operating Revenues category, Base Rent for the applicable
Lease Year and Additional Base Rent, if any.
(iii) If Lessee shall fail to deliver the foregoing annual Audited Gross Operating
Revenues Schedule to the City within said one hundred twenty (120) day period, the City shall have the
right to either conduct an audit itself or to employ an independent certified public accountant to
examine such books and records as may be necessary to certify the amount of Rents due with respect to
such Lease Year and to obtain the information described above. Lessee shall pay to the City,within thirty
(30) days after receipt of written demand thereof, as Additional Rent, the cost of any audit performed
by or for the City pursuant to this item (ill).
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Page 1514 of 1842
(iv) If the City disagrees with the annual Audited Gross Operating Revenues
Schedule provided by Lessee, it may conduct its own audit within one year after receipt of same by City,
which Lessee shall pay for if said audit demonstrates a deficiency of more than three percent (3%), in
the amount of Base Rent due to the City. If in the course of any audit the City identifies a deficiency in
excess of five percent (5%) in the amount of Base Rent (including any Additional Base Rent due to the
City), the City shall have the right to audit Lessee's books and records for the three (3) prior calendar
years. If the City identifies any deficiencies in excess of five percent (5%) in the amount of Base Rent
(including any Additional Base Rent) due as a result of an audit of any of those three (3) prior calendar
years, the City shall have the right to audit an additional two (2) prior calendar years. Any dispute
between the two audits which cannot be resolved by the Parties shall be resolved in accordance with
Section 7.8 of this Lease. The cost of any audit by the City which Lessee is required to pay the cost of
pursuant to this Section shall be the cost charged to the City by its independent auditors, or if done by
City personnel, the direct employee salary cost to the City for the time spent by said employees in
performing such audit, but not in excess of what would have been charged to the City for the same
service by the City's outside auditors.
(v) Quarterly, commencing on the Possession Date and continuing until the
Completion of Construction, and not less often than annually thereafter, Lessee shall deliver to the City
a written report detailing the employment by Lessee of City of Miami Beach and Miami-Dade County
residents in the construction, operation and maintenance of the Hotel Project.
Section 4.5. Covenants for Payment of Public Charges by Lessee.
(a) Payment of Public Charges. Payment of Public Charges includes:
(I) Lessee, in addition to the Rent and all other payments due to City hereunder,
covenants and agrees timely to pay and discharge, before any tine, penalty, interest or cost may be
added, all real and personal property taxes, all ad valorem real property taxes, all taxes on Rents payable
hereunder and under Subleases, tourist, room and restaurant taxes, restaurant taxes, and public
assessments(including, without limitation, permit fees, impact fees and other public charges); and
(ii) Special Assessments pursuant to Section 4.5(d), electric, water and sewer rents,
rates and charges levied, assessed or imposed by any Governmental Authority against the Leased
Property, including all Lessee Improvements thereon, in the same manner and to the same extent as if
the same,together with all Lessee Improvements thereon were owned in fee simple by Lessee.
(collectively, "Public Charges");
(b) Lessee's obligation to pay and discharge Public Charges levied, assessed or imposed
against or with respect to the Leased Property shall not commence until the Possession Date. All such
charges shall be prorated if the Possession Date is not at the beginning of the calendar year. Lessee,
upon written request, shall furnish or cause to be furnished to the City, official receipts of the
appropriate taxing authority, or other proof satisfactory to the City evidencing the payment of any
Public Charges.
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Page 1515 of 1842
(c) Contesting Impositions.
(i) Lessee shall have the right to contest the amount or validity, in whole or in part,
of any Public Charges, for which Lessee is, or is claimed to be, liable, by appropriate proceedings
diligently conducted but only after payment of such Public Charges, unless such payment would operate
as a bar to such contest or materially interfere with the prosecution thereof, in which event, payment of
such Public Charges may be postponed if, and only if, Lessee has deposited with City, in its capacity as
landlord under this Lease, cash or other security Approved by the City Manager in the amount so
contested and unpaid, together with interest and penalties in connection therewith and any other
charges that may be assessed against or become a charge on the Leased Property or any part thereof in
such proceedings. Upon the termination of any such proceedings, Lessee shall pay the amount of such
Public Charges or part thereof, if any, as finally determined in such proceedings,together with any costs,
fees, including counsel fees, interest, penalties and any other liability in connection therewith, and may
use the cash or other security deposited with the City for such purpose.
(ii) City shall not be required to join in any proceedings referred to in this Section
4.5(c) unless:
(1) Governmental Requirements shall require that such proceedings be
brought by or in the name of City; or
(2) the proceeding involves the assessment or attempted assessment of a
real estate or ad valorem tax on the Leased Property,
in which event the City shall join in such proceedings or permit the same to be brought in the City's
name. Notwithstanding the foregoing, City's joinder and cooperation shall be limited to actions
necessary to enable Lessee to satisfy technical requirements of any action or proceeding and in no event
shall City be required to join in such action or proceeding in any substantive capacity.
(iii) Except for any counsel it retains separately, the City shall not be subjected to
any liability to pay any fees, including counsel fees, costs and expenses regarding such proceedings.
Lessee agrees to pay such fees, including commercially reasonable counsel fees, costs and expenses or,
on demand, to make reimbursement to the City for such payment. The City will endeavor to use in
house counsel whenever possible, in accordance with the City's customary practices.
(d) Special Assessments. The City retains all its rights to impose nondiscriminatory special
assessments or other public charges; provided, however, if at any time the City, in its municipal capacity,
subjects non-governmental users to an exclusive franchise for trash removal or other public services,
Lessee will be treated the same as similarly sized and situated properties (such as the Miami Beach
Loews Hotel).
(e) No Tax Abatements or Other Public Subsidies to Lessee. Lessee shall not receive any
City tax abatement, public subsidy or rebate with respect to any Public Charges other than any tax
benefits the City generally makes available or provides to other similarly situated or similarly sized hotels
or businesses.
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Page 1516 of 1842
ARTICLE V
ASSIGNMENT
Section 5.1. Purpose of Restrictions on Transfer. This Lease is granted to Lessee solely to
develop the Hotel Project and its subsequent use according to the terms hereof, and not for speculation
in landholding. Lessee recognizes that, in view of the importance of developing the Hotel Project to the
general welfare of the City and the general community, the Lessee's qualifications and identity are of
particular concern to the community and the City. Accordingly, Lessee acknowledges that it is because
of such qualifications and identity that the City is entering into this Lease with Lessee, and, in so doing,
the City is further willing to accept and rely on the Lessee's obligations for faithfully performing all its
undertakings and covenants.
Section 5.2. Transfers. Lessee represents and warrants that Lessee has not made, created or
suffered any Transfers as of the date of this Lease and that the Persons that have an ownership interest
in Lessee on the date of this Lease are listed, together with their percentage and character of
ownership, on Exhibit "M". No Transfer may or shall be made, suffered or created by Lessee, its
successors, assigns or transferees without complying with the terms of this Article V. Any Transfer that
violates this Lease shall be null and void and of no force and effect.
Section 5.3. Permitted Transfers.
(a) Prior to the Opening Date, other than Permitted Transfers, no Transfer will be permitted
without the written Approval of the City.
(b) Each of the following Transfers, shall be permitted hereunder without the City's
Approval ("Permitted Transfers"):
(i) a Transfer prior to the Possession Date of a direct or indirect interest in Lessee
to an equity investor funding the balance of the Equity Commitment in excess of the [PROPOSER]
Minimum Equity Contribution (together with any additional amounts funded by [PROPOSER] or one of
its Affiliates), provided that such transferee is an Acceptable Owner;
(ii) a Transfer after the Opening Date of the entire Hotel Project or any direct or
indirect interest in Lessee provided that (i) the transferee is an Acceptable Owner; (ii) the City is given
written notice thereof together with true and correct copies of the proposed Transfer documents and
other agreements between the parties and current certified financial statements (to the extent
applicable) and other relevant information of the proposed transferee in accordance with the time
frames set forth on Exhibit "A" attached hereto in order for City Manager to confirm that the transferee
(or the Lessee) is an Acceptable Owner; (iii) no Event of Default has occurred and is continuing and (iv)
all of the conditions precedent to the effectiveness of such Transfer as set forth in Section 5.5 hereof are
satisfied;
(Hi) Any Transfer, if in accordance with the terms and conditions of Article VI, by the
First Leasehold Mortgagee, to an agent, designee or nominee of the First Leasehold Mortgagee that is
wholly owned or Controlled by such First Leasehold Mortgagee;
(iv) Any Transfer directly resulting from the foreclosure of a First Leasehold
Mortgage or the granting of a deed in lieu of foreclosure of a First Leasehold Mortgage or any Transfer
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Page 1517 of 1842
made to the purchaser at foreclosure of a First Leasehold Mortgage or to the grantee of a deed in lieu of
foreclosure of a First Leasehold Mortgage (if such purchaser or grantee is a nominee in interest of the
First Leasehold Mortgagee), and provided further that such Transfer, purchase or grant is in accordance
with the terms and conditions of Article VI;
(v) Any Transfer directly resulting from a conveyance to a First Leasehold
Mortgagee of Lessee's interest provided it is in accordance with the terms and conditions of Article VI;
(vi) Any Transfer directly resulting from the foreclosure by the Mezzanine Lender of
a pledge of ownership interests of Lessee or any Transfer made to the purchaser at a foreclosure of such
pledge of ownership interests of Lessee (if such purchaser is a nominee in interest of the Mezzanine
Lender), or any assignment in lieu of such foreclosure, provided that such Transfer is in accordance with
the terms and conditions of Article VI;
(vii) Any Transfer, or series of Transfers, not permitted pursuant to Sections 5.3(b)(i)
and 5.3(b)(ii) above, of not more than an aggregate of ten percent (10`0) of the direct or indirect
ownership interests in Lessee, provided that at all times after such Transfer, [PROPOSER] or an Affiliate
thereof, an Acceptable Owner or other successor Person Approved by the City Manager has the power
to direct the day-to-day management and policies of Lessee;
provided, however, in the case of any Transfer hereunder, the proposed transferee shall not, directly or
indirectly, own, operate or manage any Gaming Establishment in Miami-Dade County, Florida and any
purported Transfer in violation hereof shall be null and void and of no force and effect; provided,
however,that the foregoing restriction shall not apply to a proposed transferee if all Persons owning or
Controlling such proposed transferee, own or control in the aggregate five percent (5%) or less of the
voting securities of any owner, operator or manager of a Gaming Establishment in Miami-Dade County,
Florida.
Section 5.4. Transfer Requiring City's Approval. Regarding any Permitted Transfer pursuant to
Section 5.3(b) or any other Transfer that is not a Permitted Transfer, Lessee shall give or cause to be
given to the City written notice of a Transfer (in the case of a Permitted Transfer), or written notice
requesting Approval of any other Transfer that is not a Permitted Transfer, and submitting all
information reasonably necessary for the City Manager (or the City Commission, with respect to
Transfers to certain Foreign Instrumentalities as specified herein) to evaluate the proposed transferees
and the Transfer and to obtain the City's Approval of same, when required. If a Permitted Transfer, said
information shall demonstrate that the transferee is an Acceptable Owner as set forth on Exhibit "A"
attached hereto. If not a Permitted Transfer, Lessee shall provide to the City the information described
in Paragraph C of Exhibit"A" and the provisions described in Paragraph D of Exhibit"A" shall apply. The
City's confirmation or Approval process shall proceed as set forth on Exhibit "A" attached hereto. Any
Approval of a Transfer to a Foreign Instrumentality (other than to any of the member countries of the
European Union) or the Gulf Cooperation Council2, each as existing as of the Effective Date, Canada,
Mexico, countries located in South America (excluding Venezuela), Japan, South Korea, Singapore and
I As of May 16,201$,the member countries are Austria,Belgium,Bulgaria,Croatia,Cyprus,Czech Republic.
Denmark, Estonia,Finland,France.Germany,Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg.
Malta,The Netherlands, Poland,Portugal Romania,Slovakia. Slovenia, Spain, Sweden,and the United Kingdom.
2 As of May 16.2018,the member countries are Bahrain, Kuwait, Oman,Qatar. Saudi Arabia and the United Arab
Emirates.
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Page 1518 of 1842
Australia, or Persons Controlled by any of the foregoing countries) shall be subject to the prior written
approval of the City Commission, which approval may be granted, conditioned or withheld by the City
Commission in its sole discretion. Any Approval of a Transfer shall not waive any of the City's rights to
Approve or disapprove of any subsequent Transfer. Lessee shall from time to time throughout the
Term, as the City shall reasonably request, furnish the City with a complete statement, subscribed and
sworn to by a Responsible Officer of Lessee, setting forth the full names and address of holders of the
ownership interests in Lessee who hold, directly or indirectly, at least a ten percent (10%) interest in
Lessee as well as to confirm the percentage ownership interest, if any, of such Responsible Officer.
Section 5.5. Effectiveness of Transfers. No Transfer shall be effective unless and until all of the
following conditions precedent are satisfied within thirty (30) days of such Transfer:
(a) executed copies of the Transfer documents and other agreements between the parties
to the Transfer are delivered to the City;and
(b) where the Transfer is pursuant to Section 5.3(b)(ii), and if it is of the entire Hotel
Project, the Person to which any such Transfer is made, by a commercially reasonable, written
instrument and in form recordable among the public records, shall, for itself and its successors and
assigns, and especially for the benefit of the City, expressly assume all of the obligations of Lessee under
this Lease and agree to be liable and subject to all conditions and restrictions to which Lessee is subject.
Section 5.6. Subletting.
(a) Subject to the other terms and conditions of this Lease, Lessee shall have the right to
enter into Subleases of portions of the Leased Property at any time and from time to time during the
Term of this Lease with such Subtenants and upon such commercially reasonable terms and conditions
as Lessee shall deem fit and proper, provided the Sublease is consistent with this Lease and consistent
with the Hotel Standards. At the City's request, Lessee shall allow the City to review and inspect any and
all Subleases for the Hotel Project.
(b) Lessee covenants that it will perform and observe in all material respects all the terms,
covenants, conditions and agreements required to be performed and observed by it under each
Sublease. Lessee agrees that each Sublease shall:
(i) require the Subtenant to maintain adequate books and records including
reasonably detailed information on Gross Operating Revenues of the applicable subleased portion of the
Leased Premises and to submit the same for inspection and audit by the City and require the Subtenant
to comply with Governmental Requirements;
(ii) provide that, if this Lease terminates, the Subtenant shall, if required by the
City, pay all rents and all other charges required by such Sublease directly to the City; and
(iii) obligate the Subtenant not to violate any term, covenant or restriction
applicable to Lessee that is contained in this Lease. In addition, Lessee shall in all events require and
cause Subtenants to perform obligations imposed by the Lease and applicable to such Sublease
(specifically including the obligations set forth in this Section 5.6).
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Page 1519 of 1842
(c) Notwithstanding anything to the contrary contained herein, at all times the Base Rent
payable to the City with respect to all portions of the Leased Property, whether or not subleased to a
Subtenant, shall be based on the Gross Operating Revenues of the Leased Property, including any
subleased portion of the Leased Property, and shall not be based on the Sublease rent paid by any
Subtenant thereunder (and such Sublease rent shall not be included in calculating Gross Operating
Revenues) except solely with respect to a portion of the Leased Property leased to a Subtenant for
purposes of operating a gift shop; a car rental facility; FedEx, UPS or a similar delivery service;
beachwear and equipment rental; and antennae; in which cases, such Sublease rent (but not Gross
Operating Revenues of such Subleased portions of the Leased Property) shall be included in calculating
Gross Operating Revenues.
ARTICLE VI
MORTGAGE FINANCING; RIGHTS OF MORTGAGEE AND LESSEE
Section 6.1. Conditions of Financing and Leasehold Mortgage.
(a) Lessee shall have the right to secure one or more financings or re-financings and, in
conjunction with and to secure that financing or re-financing, may enter into a First Leasehold Mortgage
in favor of a First Leasehold Mortgagee and/or a pledge of its ownership interests in favor of a
Mezzanine Lender, provided that:
(i) any such secured financing of the Hotel Project exclusively secures debt of the
Lessee directly related to the Hotel Project;
(ii) no First Leasehold Mortgage or other encumbrance executed by the Lessee in
connection with such First Leasehold Mortgage or Mezzanine Loan or otherwise will extend to or be a
lien or encumbrance upon City's interest in any part of the Leased Property or in any right appurtenant
to that interest;
(iii) the First Leasehold Mortgage and any other encumbrance executed by the
Lessee in connection with such First Leasehold Mortgage or otherwise shall at all times, without the
necessity for the execution of any further documents, be subject and subordinate to the interest of the
City in the Leased Property; provided that the First Leasehold Mortgagee agrees from time to time upon
request and without charge to execute, acknowledge and deliver any instruments reasonably requested
by the City under this Lease to evidence the foregoing subordination;
(iv) the rights of the City in the Leased Property and arising out of this Lease shall
not be affected by the First Leasehold Mortgage, First Leasehold Mortgagee, Mezzanine Loan or
Mezzanine Lender, nor shall the City be deprived in any other way of its rights in the Leased Property or
under this Lease,except to the extent provided in this Article VI ;
(v) Lessee shall at all times remain liable hereunder for the payment of Rent and
the performance of all covenants and conditions of this Lease as provided in this Lease;
(vi) at the time of the closing of the financing or re-financing, Lessee certifies to the
City that the Hotel Project, after taking into account all existing debt of the Lessee, is projected to have
and be able to sustain a Debt Service Coverage Ratio of not less than 1.25 (based on the reasonably
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Page 1520 of 1842
projected first stabilized year for any financing that closes prior to the end of the reasonably projected
first stabilized year, and any twelve (12) consecutive months out of the previous eighteen (18) months
of operations for subsequent financings);
(vii) at the time of the closing of the financing or re-financing, the aggregate amount
of the principal indebtedness secured by (a) mortgages encumbering Lessee's interest in the Leased
Property and/or (b) pledges of ownership interests of Lessee, does not exceed an amount equal to
seventy percent (70%) of the sum of (1) the then value of Lessee's interest in the Leased Property and
any improvements previously constructed on the Leased Property, as reasonably determined by a third-
party appraiser selected by the City and engaged at Lessee's sole expense, which appraiser must have at
least ten (10) years of experience in appraising hotel properties of at least four hundred (400) rooms in
the Miami Beach area, (2)the value of any improvements to be constructed on the Leased Property with
the proceeds of such financing or re-financing, and (3) all costs incurred, and all reserves required, in
connection with such financing or re-financing;
(viii) the First Leasehold Mortgagee waives all right and option to retain and apply
the proceeds of any insurance or the proceeds of any condemnation award toward payment of the sum
secured by the First Leasehold Mortgage to the extent such proceeds are required for the demolition,
repair or restoration of the Leased Property in accordance with the provisions of this Lease; and
(ix) no purchaser at any foreclosure sale will acquire any right, title or interest in or
to this Lease, unless such purchaser, in a written instrument reasonably satisfactory to the City, assumes
and agrees to perform all of the terms, covenants and conditions of Lessee hereunder arising after the
date of such Transfer (provided that City does not waive or relinquish its right, and shall have the right,
to enforce its remedies with respect to any Event of Default existing as of the date of such Transfer),
that no additional mortgage or assignment of this Lease or pledge of ownership interests of Lessee will
be made except in accordance with the provisions contained in this Article VI, and that a duplicate
original of such written instrument, duly executed and acknowledged by such purchaser and in
recordable form, is delivered to the City immediately after the consummation of such sale, or, in any
event, prior to taking possession of the Leased Property.
(b) Prior to the date (i) a First Leasehold Mortgage is recorded or (il)the Mezzanine Lender,
if any, enters into a Mezzanine Loan or Credit Enhancement agreement with Lessee, the First Leasehold
Mortgagee or Mezzanine Lender, as applicable, Lessee and the City (by and through the City Manager)
shall enter into a non-disturbance and attornment agreement containing the provisions set forth in
Section 6.1(d) below and such other terms and conditions as are reasonably acceptable to the First
Leasehold Mortgagee or Mezzanine Lender, as applicable, and the City Manager, after consultation with
the City's Chief Financial Officer and City Attorney.
(c) Lessee shall deliver to the City, promptly after execution by Lessee, (i) a true and
verified recorded copy of any First Leasehold Mortgage and any amendment, modification or extension
thereof, together with the name and address of the First Leasehold Mortgagee and (H) a true and
correct copy of any Mezzanine Loan or Credit Enhancement agreement and any amendment,
modification or extension thereof,together with the name and address of the Mezzanine Lender.
(d) For so long as any First Leasehold Mortgage encumbers the Leased Property, or, as
applicable, a Mezzanine Lender holds a pledge of Lessee's ownership interest, and provided the
conditions of Section 6.1(a)through (c)above have been satisfied:
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Page 1521 of 1842
(1) in any event where the City gives Lessee notice of an Event of Default, the City
shall deliver a copy of such notice to the First Leasehold Mortgagee and Mezzanine Lender, at the name
and address designated in writing by the First Leasehold Mortgagee and Mezzanine Lender to the City
from time to time (the City shall be deemed to have fulfilled its notice obligation by providing the
required notice to the address delivered to the City in accordance with Section 6.1(c) or such other
address so designated by the First Leasehold Mortgagee or Mezzanine Lender to the City in writing and
shall not be responsible for any liability in the event such address is not current);
(ii) notwithstanding the time allowed for Lessee to cure an Event of Default, the
First Leasehold Mortgagee and the Mezzanine Lender shall have the right, but not the obligation, up to
fifteen (15) days following the City's notice thereof to cure a monetary default and thereafter keep all
Rent and other amounts due hereunder current, and up to thirty (30) days following the City's notice
thereof to cure a non-monetary Event of Default (except an Event of Default under Sections 7.1(c) or (d)
hereof, for which the First Leasehold Mortgagee and Mezzanine Lender will not be given any additional
time to remedy), but if such non-monetary Event of Default cannot be cured within such thirty (30) day
period, then the First Leasehold Mortgagee and Mezzanine Lender shall have up to ninety (90) days to
cure, provided that it has started to do so within the initial thirty (30) day period and thereafter
continues to diligently pursue the cure. The City will accept performance by the First Leasehold
Mortgagee and Mezzanine Lender of any covenant, condition or agreement on Lessee's part to be
performed hereunder with the same force and effect as though performed by Lessee; and
(iii) notwithstanding the provisions of Article VII hereof, no Event of Default by
Lessee will be deemed to exist as to the First Leasehold Mortgagee as long as the First Leasehold
Mortgagee, in good faith, either promptly (A) commences to cure such Event of Default and prosecute
the same to completion in accordance with clause (il) above, or (8) if the nature of any non-monetary
Event of Default (except an Event of Default under Sections 7.1(c) or (d) hereof, for which the First
Leasehold Mortgagee will not be given any additional time to remedy) is such that possession of the
Hotel Project is reasonably necessary to cure the Event of Default or if the Event of Default is of the type
that cannot commercially reasonably be cured by the First Leasehold Mortgagee (e.g., Lessee
bankruptcy) (and which will be waived as to the First Leasehold Mortgagee if the First Leasehold
Mortgagee cures all other Events of Default), files a complaint for foreclosure and thereafter prosecutes
the foreclosure action in good faith and with diligence and continuity and obtains possession directly or
through a receiver, and as promptly as practicable after obtaining such possession, commences
promptly to cure such Event of Default and to prosecute the same to completion in good faith and with
diligence and continuity; provided, however, that the First Leasehold Mortgagee has delivered to the
City, in writing within twenty(20) days following receipt of City's notice of default, its agreement to take
the action described in clause (A) or (8) of this clause (iii), and that during the period in which such
action is being taken (and any foreclosure proceedings are pending), all of the other obligations of
Lessee under this Lease, to the extent they are susceptible of being performed by the First Leasehold
Mortgagee (e.g., the payment of Rent), are being duly performed. However, at any time after the
delivery of the aforementioned agreement, the First Leasehold Mortgagee may notify the City, in
writing, that it has relinquished possession of the Leased Property, or that it will not institute foreclosure
proceedings or, if such proceedings have been commenced, that it has discontinued them, and in such
event, the First Leasehold Mortgagee will have no further liability under such agreement from and after
the date which is 30 days after it delivers such notice to the City (except for any obligations accruing
prior to 30 days after the date it delivers such notice), and, thereupon, subject to the rights of the
Mezzanine Lender set forth in clause (iv) below, the City will have the unrestricted right to terminate
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Page 1522 of 1842
this Lease and to take any other action it deems appropriate by reason of any Event of Default, and
upon any such termination, the provisions of Section 6.1(h) hereof will apply.
(iv) notwithstanding the provisions of Article VII hereof, no Event of Default by
Lessee will be deemed to exist as to the Mezzanine Lender as long as the Mezzanine Lender, in good
faith, either promptly (A) commences to cure such Event of Default and prosecute the same to
completion in accordance with clause (ii) above, or (B) if the nature of any non-monetary Event of
Default (except an Event of Default under Sections 7.1(c) or (d) hereof, for which the Mezzanine Lender
will not be given any additional time to remedy) is such that possession of the Lessee's ownership
interests is reasonably necessary to cure the Event of Default or if the Event of Default is of the type that
cannot commercially reasonably be cured by the Mezzanine Lender(e.g., Lessee bankruptcy) (and which
will be waived as to the Mezzanine Lender if the Mezzanine Lender cures all other Events of Default),
has taken all reasonable steps necessary to foreclose the pledge of the Lessee's ownership interests, and
prosecutes such action in good faith and with diligence and continuity and obtains possession of the
Lessee's ownership interest, and as promptly as practicable after obtaining such possession, commences
promptly to cure such Event of Default and to prosecute the same to completion in good faith and with
diligence and continuity; provided, however, that the Mezzanine Lender has delivered to the City, in
writing within twenty (20) days following receipt of City's notice of default, its agreement to take the
action described in clause (A) or (B) of this clause (iv), and that during the period in which such action is
being taken, all of the other obligations of Lessee under this Lease, to the extent they are susceptible of
being performed by the Mezzanine Lender (e.g., the payment of Rent), are being duly performed.
However, at any time after the delivery of the aforementioned agreement, the Mezzanine Lender may
notify the City, in writing, that it has relinquished possession of the Lessee's ownership interests or that
it will not seek to foreclose the pledge of Lessee's ownership interests or, if such foreclosure has
commenced, that it has been discontinued, and in such event, the Mezzanine Lender will have no
further liability under such agreement from and after the date which is 30 days after it delivers such
notice to the City (except for any obligations accruing prior to 30 days after the date it delivers such
notice), and, thereupon, subject to the rights of the First Leasehold Mortgagee set forth in clause (iii)
above, the City will have the unrestricted right to terminate this Lease and to take any other action it
deems appropriate by reason of any Event of Default, and upon any such termination, the provisions of
Section 6.1(h) hereof will apply.
(e) From and after the date upon which the City receives the notice described in Section
6.1(c) hereof, the City will not (i) consent to a cancellation or surrender of this Lease (except upon the
expiration of the Term), or any amendment or modification materially increasing the Lessee's
obligations hereunder or (ii) terminate this Lease other than as provided in this Article VI (except upon
the expiration of the Term) without the prior written consent of the First Leasehold Mortgagee and
Mezzanine Lender,which consent shall not be unreasonably delayed, conditioned or withheld.
(f) Foreclosure of a First Leasehold Mortgage or any sale thereunder, whether by judicial
proceedings or by any power of sale contained in the First Leasehold Mortgage or applicable law, or any
conveyance of the Hotel Project from Lessee to the First Leasehold Mortgagee in lieu of the foreclosure
or other appropriate proceedings in the nature thereof, or any foreclosure of a Mezzanine Loan, or
conveyance of the Lessee's ownership interest in lieu thereof,shall not:
(i) require the City's consent; or
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Page 1523 of 1842
(ii) provided the First Leasehold Mortgagee or the Mezzanine Lender has complied
with the provisions of this Article VI, constitute a breach of any provision of or a default under this
Lease.
(g) If the First Leasehold Mortgagee or any other foreclosure sale purchaser subsequently
assigns or transfers its interest under this Lease after acquiring the same by foreclosure or by an
acceptance of a deed in lieu of foreclosure or subsequently assigns or transfers its interest under any
such new lease entered into pursuant to Section 6.1(h) below, and in connection with any such
assignment or transfer, the First Leasehold Mortgagee or any other foreclosure sale purchaser takes
back a First Leasehold Mortgage to secure a portion of the purchase price, the holder of such First
Leasehold Mortgage shall be a First Leasehold Mortgagee entitled to receive the benefit of this Article VI
and all other provisions of this Lease intended for the benefit of a First Leasehold Mortgagee. Similarly,
if a Mezzanine Lender or a purchaser under a UCC sale obtains title to the ownership interests in Lessee
and subsequently assigns or transfers its interests in such ownership interests, or subsequently assigns
or transfers its interest under any new lease entered into pursuant to Section 6.1(h) below, and in
connection with any such assignment or transfer, the Mezzanine Lender or any other UCC sale
purchaser takes back a pledge of the Lessee's ownership interests to secure a portion of the purchase
price, the holder of such pledge shall be a Mezzanine Lender entitled to receive the benefit of this
Article VI and all other provisions of this Lease intended for the benefit of a Mezzanine Lender.
(h) Should the Lessee or any First Leasehold Mortgagee or Mezzanine Lender not cure the
alleged Event of Default as provided in this Section 6.1, the City has the right to terminate this Lease by
reason of any uncured Event of Default as provided in this Lease. If this Lease is terminated by the City
in accordance with the foregoing or is terminated as a result of the bankruptcy of the Lessee, the City
shall give written notification of such termination to the First Leasehold Mortgagee and Mezzanine
Lender, and the City shall, upon written request of the First Leasehold Mortgagee to the City received
within thirty (30) days after such notice of termination, enter into a new lease of the Leased Property
with such First Leasehold Mortgagee or Lessee (as owned by Mezzanine Lender), as lessee, for the
remainder of the Term with the same covenants, conditions and agreements (except for any
requirements which have been fully satisfied by Lessee or City prior to termination or which pertain to
the ownership of Lessee) as are contained herein.
(i) The City's delivery of the Leased Property to the First Leasehold Mortgagee or Lessee (as
owned by Mezzanine Lender), as applicable, as lessee, pursuant to a new lease shall be:
(i) made without representation or warranty of any kind or nature whatsoever
either express or implied;
(ii) First Leasehold Mortgagee or Lessee (as owned by Mezzanine Lender), as
lessee, shall take such Leased Property"as-is" in its then current condition; and
(iii) upon execution and delivery of such new lease, First Leasehold Mortgagee or
Lessee (as owned by Mezzanine Lender), as lessee, at its sole cost and expense shall be responsible for
taking such action as shall be necessary to cancel and discharge this Lease and to remove Lessee named
herein and any other occupant (other than as allowed by the First Leasehold Mortgagee or Lessee (as
owned by Mezzanine Lender), as applicable, as lessee, or the City)from the Hotel Project.
44
Page 1524 of 1842
(j) The City's obligation to enter into such new lease of the Leased Property with the First
Leasehold Mortgagee or Lessee (as owned by the Mezzanine Lender) shall be conditioned upon, on the
date the new lease is executed:
(i) the City receiving payment of all Rent due hereunder through the date of such
new lease;
(ii) all monetary defaults hereunder having been cured;
(iii) all non-monetary defaults susceptible to cure having been remedied and cured
(or First Leasehold Mortgagee or Lessee (as owned by Mezzanine Lender), as applicable, as lessee,
having commenced such cure and continuing to diligently complete the cure in accordance with clauses
(iii) or(iv)of paragraph (d) above, as applicable); and
(iv) the City receiving payment of all expenses, including reasonable attorneys' fees
and disbursements and court costs, incurred by the City in connection with such Event of Default, the
termination of this Lease and the preparation of the new lease, together with interest thereon at the
lesser of the Default Rate or the highest rate permitted by law, from the due date or the date expended
by the City, as the case may be, to the date of actual payment from First Leasehold Mortgagee or
Mezzanine Lender, as applicable.
(k) With respect to the payment of Rent by the First Leasehold Mortgagee or Mezzanine
Lender pursuant to this Article VI, if the Rent currently due cannot be determined by the First Leasehold
Mortgagee or Mezzanine Lender, as applicable, without possession of the Hotel Project or ownership of
the Lessee's equity interests, as applicable, then the First Leasehold Mortgagee or Mezzanine Lender
may pay the amount of Base Rent which was paid for the immediately previous period, with the
adjustment, upward or downward, to be made ninety (90) days after the First Leasehold Mortgagee
obtains possession of the Hotel Project or the Mezzanine Lender obtains possession of Lessee's equity
interests, as applicable.
Section 6.2. No Waiver of Lessee's Obligations or City's Rights. Nothing contained herein or
in any Leasehold Mortgage shall be deemed or construed to relieve Lessee from the full and faithful
observance and performance of its covenants, conditions and agreements contained herein, or from any
liability for the non-observance or non-performance thereof, or to require, allow or provide for the
subordination to the lien of such Leasehold Mortgage or to any Leasehold Mortgagee of any estate,
right, title or interest of the City in or to the Leased Property, buildings and structures or this Lease
(including the right to Rent, Public Charges, and other monetary obligations of Lessee to the City under
this Lease), nor shall the City be required to join in such mortgage financing or be liable for same in any
way. City's interest in the Leased Property and this Lease, as the same may be modified, amended or
renewed, will not at any time be subject or subordinate to (a) any mortgage now or hereafter placed
upon Lessee's interest in this Lease, or (b) any other liens or encumbrances hereafter affecting Lessee's
interest in this Lease.
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Page 1525 of 1842
ARTICLE VII
REMEDIES; EVENTS OF DEFAULT
Section 7.1. Default by Lessee. Each of the following occurrences shall constitute an "Event of
Default" of Lessee that shall entitle City to terminate this Lease and seek any other remedies as set forth
in Section 7.2:
(a) if Lessee fails to pay any installment of Rent, including Base Rent, or any part
thereof, when the same becomes due and payable for a period of three (3) Business Days after notice
thereof from the City; provided, however, that the City shall not be obligated to provide written notice
of such failure more than two (2) times in any consecutive twelve (12) month period, and the failure of
Lessee to pay any third or subsequent installment of Rent when due in any consecutive twelve (12)
month period shall constitute an Event of Default by Lessee hereunder without the requirement of
notice or opportunity to cure;
(b) if Lessee fails to make any payment of Additional Rent, Public Charges or any
other payment required to be paid by Lessee hereunder for a period of 10 Business Days after notice
thereof from City to Lessee;
(c) if Lessee fails to satisfy all of the Possession Conditions by the Outside
Possession Date;
(d) if Lessee fails, after Commencement of Construction, to Complete Construction
by the Outside Completion Date;
(e) if Lessee fails, after Commencement of Construction,to cause the Opening Date
to occur by the Outside Opening Date;
(f) if Lessee conducts on the Leased Property any business, the performance of any
service, or the sale or marketing of any product or service by Lessee which is prohibited by the terms of
this Lease for a period of thirty(30) days after receipt of notice thereof from the City;
(g) If Lessee knows or actively participates in the use of any portion of the Hotel
Project as a Gaming Establishment (through venue rental, promotion or other similar activities) for a
period of three (3) Business Days after written notice thereof from the City; provided, however, that the
City shall not be obligated to provide written notice of such failure more than two (2) times in any
consecutive twelve (12) month period, and the failure of Lessee to comply with the restrictions in
Section 4.2(b) prohibiting use of the Leased Property as a Gaming Establishment after the second
written notice in any consecutive twelve (12) month period shall constitute an Event of Default by
Lessee hereunder without the requirement of any notice or opportunity to cure;
(h) If Lessee or any Person with an ownership interest in Lessee violates Section
4.2(g) (other than as provided in subsection (g) above) or the Acceptable Owner criteria specified in
subparagraphs A.1., A.3. and A.4 of Exhibit A of this Lease; provided, however, in the case of any such
violation by any Person with an ownership interest in Lessee, Lessee shall have twelve months to cure
such violation after Lessee first becomes aware of such violation (whether by notice from the City or
otherwise);
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Page 1526 of 1842
(i) if Lessee fails to maintain or provide evidence of all insurance in strict
compliance with Article IX hereof and such failure continues for a period of ten (10) Business Days from
the date of written notice thereof from City;
(j) if Lessee fails to operate the Hotel in compliance in all material respects with
the Hotel Standards, and such failure continues for a period of ninety (90) days from the date of written
notice thereof from City or if the default is not capable of being cured within such ninety (90) day
period, Lessee fails within such period to commence a cure and thereafter diligently and in good faith
prosecute the same to completion within a reasonable time, subject to the rights of any First Leasehold
Mortgagees and sub-lessees hereunder;
(k) if there is a default by Lessee under the Management Agreement and as a result
of such default the Management Agreement is terminated and a replacement Management Agreement
is not entered into within ninety (90) days thereafter, provided that if Lessee shall have commenced and
thereafter shall have continued diligently to replace the Management Agreement within such ninety
(90) day period and the Hotel Project continues to operate in the ordinary course of business, then
Lessee shall have an additional commercially reasonable period of time not to exceed one hundred
eighty (180) days within which to enter into a replacement Management Agreement;
(I) if prior to the Opening Date, any lawsuit is filed against the Lessee, which is not
dismissed within sixty (60) days and the amount in controversy of which is not covered by insurance or
bond and which, if adversely determined, would substantially impair the ability of Lessee to perform its
obligation to open the Hotel by the Outside Opening Date, unless Lessee is contesting such lawsuit in
good faith and through appropriate action.
(m) if Lessee fails to observe or perform one or more of the other terms, conditions,
covenants or agreements of this Lease not otherwise addressed in this Section 7.1 and such failure
continues for a period of 45 days after written notice thereof by City to Lessee specifying such failure,
unless such failure requires work to be performed, acts to be done, or conditions to be removed which
cannot by their nature reasonably be performed, done or removed, as the case may be, within such 45
day period, in which case no Default will be deemed to exist as long as (i) Lessee commences curing the
same within such 45 day period and diligently and continuously prosecutes the same to completion and
(ii) after the Opening Date the Hotel Project continues to operate in the ordinary course of business, to
the extent commercially reasonable taking into account the nature of the alleged failure to perform
according to the covenant,condition or agreement in question;
(n) if Lessee is generally not paying its debts as such debts become due or admits,
in writing,that it is unable to pay its debts as such debts become due;
(o) if Lessee makes an assignment for the benefit of creditors;
(p) if Lessee files a voluntary petition under the Bankruptcy Code or if such petition
is filed against Lessee and an order for relief is entered, or if Lessee files any petition or answer seeking,
consenting to or acquiescing in any reorganization, arrangement, composition, readjustment,
liquidation, dissolution or similar relief under the Bankruptcy Code or any other present or future
applicable federal, state or other statute or law, or seeks or consent to or acquiesces in or suffers the
appointment of any trustee, receiver, custodian, assignee, sequestrator, liquidator or other similar
official of Lessee, or of all or any substantial part of its properties or of the Leased Property or any
interest of Lessee therein;
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Page 1527 of 1842
(q) if within 90 days after the commencement of any proceeding against Lessee
seeking to have an order for relief entered against it as debtor or to adjudicate it a bankrupt or
insolvent, or seeking any reorganization, arrangement, composition, readjustment or adjustment,
winding-up, liquidation, dissolution or similar relief under the Bankruptcy Code or any other present or
future applicable federal, state or other statute or law of any jurisdiction, domestic or foreign, such
proceeding has not been dismissed, or if, within 90 days after the appointment, without the consent or
acquiescence of Lessee, of any trustee, receiver, custodian, assignee, sequestrator or liquidator of
Lessee, or of all or any substantial part of its properties or of the Leased Property or any interest of
Lessee therein, such appointment has not been vacated or stayed on appeal or otherwise, or if, within
30 days after the expiration of any such stay, such appointment has not been vacated;
(r) if any case, proceeding or other action is commenced or instituted against
Lessee seeking the issuance of a warrant of attachment, execution or similar process against all or any
substantial part of its property, which case, proceeding or other action results in the entry of an order
for any such relief which has not been vacated, discharged, stayed or bonded pending Lessee's appeal
therefrom within 30 days from the entry thereof;
(s) if Lessee fails, or fails to cause the Hotel Operator, to continuously operate the
Leased Property in accordance with Section 13.2 hereof;
(t) if Lessee, prior to the Opening Date, vacates or abandons the Leased Property
or any portion thereof, or voluntarily abandons construction of any portion of the Hotel Project (other
than in connection with a Force Majeure Event), which abandonment is not cured within a reasonable
time, not less than thirty(30) days, following written notice from City;
(u) if this Lease or the leasehold estate of Lessee hereunder is assigned, subleased,
transferred, mortgaged, pledged or encumbered in any manner without compliance with the provisions
of this Lease, or if Lessee attempts to consummate any Transfer (by entering into an agreement to sell
or assign its interest in this Lease or the Hotel Project or to sublet any portion of the Leased Property
which is not conditioned on satisfying the Transfer provisions of this Lease, or by agreeing to a Transfer
without complying with the provisions governing same in this Lease), except as expressly permitted
herein, and fails to correct such Transfer within thirty(30) days after receiving notice from City;
(v) if a levy under execution or attachment is made against Lessee or its property
and such execution or attachment has not been vacated or removed by court order, bonding or
otherwise within a period of 30 days after such execution of attachment; and
(w) if Lessee or Hotel Operator fails to comply with the Room Block Agreement in a
manner that constitutes an Event of Default under such agreement.
Notwithstanding any provision to the contrary herein, the Parties' acts or omissions in connection with
Section 3.10 shall not be deemed an Event of Default.
Section 7.2. Remedies for Lessee's Default.
(a) If an Event of Default occurs hereunder, the City may elect any one or more of the
following remedies, without limitation:
48
Page 1528 of 1842
(i) terminate this Lease and commence an action for eviction immediately
upon the occurrence of any Event of Default;
(ii) immediately revoke the licenses granted to Lessee pursuant to the
Assignment of Plans and Approvals and the Assignment of Hotel Project General Construction
Contract; and
(iii) with respect to any Event of Default under Section 7.1(f), the City shall be
entitled, for each month so long as such Event of Default has not been cured, to Base Rent
equal to three times the Base Rent being paid at the time of such Event of Default for each
month until the earlier of (x) such Event of Default has been cured or (y) City has terminated this
Lease pursuant to clause (i) above.
The City's election of a remedy hereunder with respect to any one or more Events of Default
shall not limit or otherwise affect the City's right to elect any of the remedies available to it
hereunder with respect to that or any other Event of Default.
(b) If this Lease is terminated as provided in Section 7.2(a)(i) hereof, Lessee will pay or
cause to be paid to the City the unfunded portion, if any, of the [PROPOSER] Minimum Equity
Contribution, and will indemnify City against and compensate City from and for any and all reasonable
third party costs incurred by City in enforcing its rights and remedies hereunder; provided that if Lessee
has already invested the amount of the [PROPOSER] Minimum Equity Contribution at the time of
termination and has provided reasonable evidence of same to the City, no additional amounts will be due
from Lessee;
(c) If an Event of Default occurs, Lessee will nevertheless be obligated to continue to pay all
Rent for so long as Lessee has possession of the Leased Property.
(d) Upon the termination of this Lease, Lessee shall quit and peaceably surrender the Hotel
Project (which includes the Leased Property and the Lessee Improvements), and all property in its
possession to the City in accordance with Sections 7.9 and 11.5.
(e) Upon the termination of this Lease, as provided in this Section 7.2, all rights and interest
of Lessee in and to the Hotel Project (which includes the Leased Property and the Lessee
Improvements), and every part thereof shall cease and terminate, and the City may, in addition to any
other rights and remedies it may have, retain all sums paid to it by Lessee under this Lease.
(f) if this Lease is terminated prior to the Outside Completion Date, to the extent not
previously assigned to the City, City shall have the right to cause Lessee to assign to the City (or another
Person as "Assignee") all of its rights under all contracts and agreements executed in connection with
the Hotel Project, including the Management Agreement and all such contracts and agreements with
the design professionals, on a non-recourse basis, without any warranties or representations from
Lessee, and to entitle City or Assignee to all of the rights and benefits of Lessee thereunder, and to
provide that City or Assignee, upon the assignment of such contracts(s) and agreement(s) pursuant to
this section, shall only be responsible for amounts due thereunder for work performed or services
rendered with City's or Assignee's consent after such assignment; provided that the other party to any
such contracts will continue to have the rights and remedies provided therein for any defaults occurring
prior to the assignment to the City or its Assignee.
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Page 1529 of 1842
(g) In the event the City elects to terminate this Lease after an Event of Default and such
termination is stayed by order of any court having jurisdiction of any matter relating to this Lease, or by
any federal or state statute, then following the expiration of any such stay, the City shall have the right,
at its election, to terminate this Lease with five (5) days' written notice to Lessee, Lessee as debtor in
possession or if a trustee has been appointed, to such trustee.
(h) As an additional inducement to and material consideration for City agreeing to this
Lease, Lessee agrees that in the event a Bankruptcy or Judicial Action (as defined herein) is commenced
which subjects the City to any stay in the exercise of the City's rights and remedies under this Lease,
including the automatic stay imposed by section 362 of the United States Bankruptcy Code (individually
and collectively, "Stay"), then Lessee irrevocably consents and agrees to the Stay being lifted and
released against City, and City shall thereafter be entitled to exercise all of its rights and remedies
against the Lessee under this Lease. The Lessee acknowledges that it is knowingly, voluntarily, and
intentionally waiving its rights to any Stay and agrees that the benefits provided to the Lessee under the
terms of this Lease are valuable consideration for such waiver. As used in this Section, the term
"Bankruptcy or Judicial Action" shall mean any voluntary or involuntary case filed by or against Lessee
under the Bankruptcy Code, or any voluntary or involuntary petition in composition, readjustment,
liquidation, or dissolution, or any state and federal bankruptcy law action filed by or against Lessee, any
action where Lessee is adjudicated as bankrupt or insolvent, any action for dissolution of Lessee or any
action in furtherance of any of the foregoing, or any other action, case, or proceeding that has the effect
of staying (or in which a Stay is being obtained against) the enforcement by the City of its rights and
remedies under this Lease.
(i) Notwithstanding the foregoing, in the event that Lessee seeks to assume and assign this
Lease pursuant to section 365 of the Bankruptcy Code it will be required to provide to the City adequate
assurance of future performance which shall consist of evidence that such assignee satisfies the criteria
set forth in Exhibit A:
(i) neither such assignee nor any Persons with an ownership interest in such
assignee shall, directly or indirectly, own, operate or manage a Gaming Establishment in Miami-Dade
County, Florida; provided, however, that the foregoing restriction shall not prevent an assignee who
otherwise satisfies the criteria set forth in this Section 7.2(i) from so qualifying if all Persons owning or
Controlling such assignee own or control in the aggregate five percent (5%) or less of the voting
securities of any owner, operator or manager of a Gaming Establishment in Miami-Dade County, Florida;
(ii) such assignee, or the Affiliates of such assignee or Persons with an ownership
interest in such assignee, must possess the qualifications, good reputation and financial resources
necessary to perform the obligations of Lessee in accordance with this Lease, in a manner consistent
with the Hotel Standards; "good reputation" means the absence of a reputation for dishonesty, criminal
conduct, or association with criminal elements; it does not mean "prestigious," nor does the
determination of whether one has a good reputation involve consideration of personal taste or
preference;
(iii) such assignee shall have no outstanding material violations of any
Governmental Requirement against such assignee, or any hotel or other property owned or managed by
such assignee, or an Affiliate of such assignee, within Florida, which have remained uncured for more
than ninety(90) days after such assignee has knowledge of such violation;
50
Page 1530 of 1842
(iv) such assignee is not a Foreign Instrumentality;
(v) such assignee must not be owned, controlled or run by entities or individuals
who have been convicted, or are presently under indictment, for felonies under the laws of any foreign
or United States of America jurisdiction; provided that the foregoing shall not apply to individuals or
entities owning less than a ten (10%) percent equity interest in such assignee, other than officers,
directors, managers or others who have the power to direct and control the business and affairs of such
assignee;
(vi) such assignee must not (nor shall any of the individuals or entities who own at
least a ten (10%) percent equity interest in such assignee or are officers, directors, managers or
otherwise have the power to direct and control the business and affairs of such assignee) have filed or
been discharged from bankruptcy, or have been the subject of an involuntary bankruptcy,
reorganization or insolvency proceedings within the past five (5) years (bankruptcy filings by Affiliates
shall not disqualify such assignee, unless such Affiliates are any of the individuals or entities described in
the parenthetical immediately above); and
(vii) such assignee must not in its charter or organizations documents(defined as the
articles of incorporation and bylaws for any corporation, the partnership agreement and partnership
certificate for any partnership, the trust agreement for any trust and the constitution of the relevant
government for any governmental entity, but expressly excluding any statements, positions, actions or
allegations not contained in such charter organizational documents) expressly advocate or have as its
stated purpose: (a) the violent overthrow of or armed resistance against, the U.S. government; or (b)
genocide or violence against any persons; or (c) discrimination, hatred or animosity toward persons
based solely on their race, creed, color, sex or national origin.
Section 7.3. Default by the City.An event of default by the City shall be deemed to have occurred
under this Lease if the City fails to perform any obligation or fulfill any covenant or agreement of the City
set forth in this Lease and such failure shall continue for thirty (30) days following the City's receipt of
written notice of the non-performance; provided, however,the City shall not be in default of this Lease:
(a) if the City provides Lessee with a written response within said thirty (30) day period
indicating the status of the City's resolution of the breach and providing for a mutually agreeable
schedule to correct same; or
(b) with respect to any breach that is capable of being cured but that cannot reasonably be
cured within said thirty (30) day period, if the City commences to cure such breach within such thirty
(30) day period (or as soon thereafter as is reasonably possible) and diligently continues to cure the
breach until completion, but no longer than a total of one hundred twenty(120) days.
Section 7.4. Force Majeure and Economic Force Majeure.
(a) Neither the City nor Lessee, as the case may be, shall be considered in breach of or in
default of any of its non-monetary obligations, including suspension of construction activities,
hereunder by reason of unavoidable delay due to any Force Majeure Event; provided that the Party
claiming such Force Majeure Event delivers written notice to the other Party of such Force Majeure
Event within twenty-one (21) days after first becoming aware of the occurrence thereof, which notice
shall describe in reasonable detail the events giving rise to the Force Majeure Event; and such Party shall
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diligently attempt to remove, resolve or otherwise seek to mitigate such delay and keep the other Party
advised with respect thereto. Time is of the essence with respect to this provision, and any failure by a
Party to timely deliver such notice of a Force Majeure Event shall be deemed a waiver of such Party's
right to delay performance as a result of such Force Majeure Event.
(b) Economic Force Majeure. If, prior to Possession, Lessee is delayed, hindered or
prevented from being able to obtain a Construction Loan Commitment or satisfy the Possession
Conditions due to Economic Force Majeure, then the Outside Possession Date, Outside Construction
Loan Closing Date, the Outside Opening Date and the Outside Completion Date shall each be extended
for the period of such delay (but not to exceed eighteen (18) months); provided, that, with respect to
any such delay by Economic Force Majeure, the Lessee shall give written notice of such occurrence to
City within twenty-one (21) days after Lessee has knowledge of such occurrence, which notice shall
describe in reasonable detail the events giving rise to the Economic Force Majeure and Lessee shall
diligently attempt to remove, resolve, or otherwise seek to mitigate such delay, and keep City advised
with respect thereto. Time is of the essence with respect to this provision, and any failure by Lessee to
timely deliver such notice of Economic Force Majeure shall be deemed a waiver of Lessee's right to
extend the Outside Possession Date, Outside Construction Loan Closing Date, the Outside Opening Date
and Outside Completion Date, as applicable, as a result of such Economic Force Majeure.
Section 7.5. Remedies Cumulative; Waiver. The rights and remedies of the parties to this Lease,
whether provided by law or by this Lease, shall be cumulative and concurrent, and the exercise by either
Party of any one or more of such remedies shall not preclude the exercise by it, at the same or different
times, of any other such remedies for the same default or breach, or of any of its remedies for any other
default or breach by the other Party. No waiver of any default or Event of Default hereunder shall
extend to or affect any subsequent or other default or Event of Default then existing, or impair any
rights, powers or remedies consequent thereon, and no delay or omission of any Party to exercise any
right, power or remedy shall be construed to waive any such default or Event of Default or to constitute
acquiescence thereof.
Section 7.6. Right to Cure. If Lessee shall default in the performance of any term, covenant or
condition to be performed on its part hereunder, the City may, in its sole discretion, after notice to
Lessee and beyond applicable cure periods (or without such notice and cure in the event of an
emergency), perform the same for the account and at the expense of Lessee. If, at any time and by
reason of such default, the City is compelled to pay, or elects to pay, any sum of money or do any act
which will require the payment of any sum of money, or is compelled to incur any expense in the
enforcement of its rights hereunder or otherwise, such sum or sums shall be deemed Additional Rent
hereunder and, together with interest thereon at the Default Rate, shall be repaid to the City by Lessee
upon demand.
Section 7.7. Room Block Agreement. No termination or expiration of this Lease shall affect or
impair the Room Block Agreement, which shall continue to encumber the Hotel with respect to any
subsequent lessees.
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Section 7.8. Dispute Resolution.
(a) City and Lessee agree that any dispute, claim or controversy between them relating to
or arising under this Lease ("Dispute") will first be submitted, by written notice, to a designated
representative of both City and Lessee who will meet at City's place of business or other mutually
agreeable location, or by teleconference, and confer in an effort to resolve such dispute. Any decision of
the representatives will be final and binding on the parties. In the event the representatives are unable
to resolve any dispute within ten (10) days after submission to them, either Party may refer the dispute
to mediation. The exclusive venue for any Dispute not resolved by mediation shall be any state or
federal court of competent jurisdiction sitting in or for Miami-Dade County, Florida, except for (i)
Development Disputes, which shall be resolved in accordance with Section 7.9, or (H) Disputes relating
to City's disapproval of a proposed brand as an Approved Brand or a Proposed Transferee as an
Acceptable Owner,which shall be resolved in accordance with Section 7.10.
(b) TO THE MAXIMUM EXTENT PERMITTED BY LAW, THE CITY AND LESSEE HEREBY
KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE THE RIGHT EITHER OF THEM OR THEIR HEIRS,
PERSONAL REPRESENTATIVES, SUCCESSORS OR ASSIGNS MAY HAVE TO A TRIAL BY JURY IN RESPECT TO
ANY LITIGATION ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS LEASE OR ANY AGREEMENT
CONTEMPLATED TO BE EXECUTED IN CONJUNCTION HEREWITH, OR ANY COURSE OF CONDUCT,
COURSE OF DEALING, STATEMENTS (WHETHER VERBAL OR WRITTEN) OR ACTIONS OF ANY PARTY. THIS
PROVISION 15 A MATERIAL INDUCEMENT TO THE PARTIES ENTERING INTO THIS LEASE.
Section 7.9. Expedited Arbitration of Development Disputes.
(a) If Lessee or City asserts that a Development Dispute has arisen, such asserting
Party shall give prompt written notice thereof to the other Party, and such Development
Dispute shall be submitted to binding arbitration by the Development Arbitrator in accordance
with this Section 7.9.
(b) The Parties shall cooperate to select an independent, neutral, professional
arbitrator experienced in the resolution of construction claims and associated subject matter
having at least ten (io) years of hotel development or construction experience in the Miami-
Dade County area to serve as the arbitrator (the "Development Arbitrator"). If the Parties
cannot agree on a single Development Arbitrator, then each Party shall select an arbitrator
with such hotel development or construction experience, who shall jointly select a third
arbitrator with such hotel development or construction experience and the three arbitrators
shall collectively constitute the Development Arbitrator.
(c) The Development Arbitrator shall, no later than five (5) Business Days after
being selected, hold a preliminary, informal meeting with City and Lessee in an attempt to
mediate such Development Dispute. If such Development Dispute is not resolved at such
meeting, the Development Arbitrator shall at such meeting establish a date (the "Hearing
Date"), not earlier than five (5) Business Days after such meeting nor later than twenty (20)
days after such meeting for a hearing (a "Hearing") to be held in accordance with this Lease to
resolve such Development Dispute.
(d) Lessee and City each shall have the right to make one (i) written submission to
the Development Arbitrator prior to the Hearing. Such submission shall be received by the
Development Arbitrator and the other Party not later than two (2) Business Days prior to the
Hearing Date. The Parties agree that no discovery (as the term is commonly construed in
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litigation proceedings) will be permitted and agree that neither Party nor the Development
Arbitrator shall have discovery rights in connection with a Development Dispute.
(e) The Hearing shall be conducted by the Development Arbitrator. It is the
intention of the Parties that the Hearing on a Development Dispute shall be conducted in an
informal and expeditious manner. No transcript or recording shall be made. Each Party shall
have the opportunity to make a brief statement and to present documentary and other support
for its position, which may include the testimony of not more than four (4)individuals, two (2)
of whom may be outside experts. There shall be no presumption in favor of either Party's
position. Any procedural matter not covered herein shall be governed by procedures mutually
agreed upon by the Parties, or if they are unable to agree, in accordance with the Construction
Industry Arbitration Rules of the American Arbitration Association (as amended hereby).
(t) The Hearing shall be held in a location selected by the Development Arbitrator
in Miami-Dade County, Florida. Provided that the Development Arbitrator is accompanied by
representatives of both Lessee and City, the Development Arbitrator may, at its option, visit
the Hotel Site to make an independent review in connection with any Development Dispute.
(g) The Development Arbitrator, in rendering its decision with regard to any
Development Dispute, shall take into account and at a minimum consider the following factors,
which shall be used to guide its decision:
(i) City does not have any Approval rights with respect to the matter of
interior design and decor of the Hotel Project except to the extent the same is reflected in the
Approved Plans or Mandatory Hotel Project Design Elements;
(ii) the Hotel Project shall be designed and constructed to meet or exceed the
Hotel Standards;
(Hi) the mutual goal of Lessee and City is that costs in excess of the
Budgeted Improvement Costs should be avoided or minimized unless proposed by Lessee
and for which Lessee has agreed to provide adequate funds;
(iv) the mutual goal of Lessee and City is that the construction of the Hotel
Project be completed by the Outside Completion Date;
(v) the Hotel Project must comply with all Governmental Requirements; and
(vi) the magnitude of the modification to the Approved Plans.
(h) Pending resolution of the Development Dispute, Lessee may not implement the
matter which is the subject of such Development Dispute.
(i) The Development Arbitrator shall render a decision, in writing, as to any
Development Dispute not later than two (2) Business Days following the conclusion of the
Hearing regarding such Development Dispute and shall provide a brief written basis for its
decision not later than five (5) Business Days thereafter. Such decision of the Development
Arbitrator shall be rendered by (a) the decision of the single Development Arbitrator, (b) the
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decision of two of the arbitrators comprising the Development Arbitrator, if two are able to
agree, (c)the decision of the third arbitrator appointed by each of the Parties' arbitrators, if no
two of the three arbitrators are able to agree within such period, or (d) agreement between the
Parties prior to and independently of the decision of the Development Arbitrator. As to each
Development Dispute, the Development Arbitrator's decision shall he limited to resolution of
the Development Dispute in question, and the Development Arbitrator shall have no right
whatsoever to impose or grant to either Party any remedy other than a decision as to: (i)
whether a modification to the Hotel Project is a substantial deviation from the Approved Plans
or a Prohibited Hotel Project Change requiring City's Approval pursuant to Section 2.2; (ii)
any contention that City has unreasonably failed to Approve modifications to the Approved
Plans in accordance with this Lease; (iii) any contention that City has unreasonably failed to
Approve the proposed Approved Skybridge and Off Site Improvements Plans or modifications
thereto in accordance with this Lease; (iv) any contention that City has unreasonably failed to
Approve a Hotel Project General Contractor in accordance with Section 2.8(b); or (v) any
disagreement as to permitted delays in the Schedule of Performance pursuant to Section 2.7.
(j) The decision of the Development Arbitrator shall be final and binding on the
Parties for all purposes and may be entered in any court of competent jurisdiction.
(k) If any matter submitted to the Development Arbitrator hereunder is settled by
agreement between the Parties prior to, or independently of, the final determination of the
Development Arbitrator, any and all expenses of such binding determination (including fees of
the Development Arbitrator) will be shared equally by the Parties; and the expense of such
binding determination resolved by final determination of the Development Arbitrator
(including fees of the Development Arbitrator) will be borne by the Party against whom such
determination has been concluded.
Section 7.30. Disputes Regarding Disapproval of a Proposed Brand or Proposed
Transferee.
(a) If (i) Lessee and City disagree as to whether a proposed Approved Brand
satisfies the definition of an Approved Brand pursuant to clause(a) of the definition thereof or
(ii) Lessee believes that the City is acting unreasonably in disapproving a proposed brand as an
Approved Brand, then in either case, the Lessee may refer the matter to mediation in
accordance with Section 7.8(a) above, and if the matter is not resolved by mediation, then
Lessee, as its sole remedy, may submit such matter to a panel of experts for a binding
determination in accordance with this Section 7.10 (an"Arbitrator").
(b) If the City Manager determines that a proposed transferee of the Hotel Project
(or any part thereof), any legal or beneficial interest in the Hotel Project (or any part thereof)
or any direct or indirect legal or beneficial interest in Lessee (each, a "Proposed Transferee")
does not satisfy the definition of an Acceptable Owner and the Acceptable Owner Criteria
pursuant to Exhibit A attached hereto, and Lessee disagrees, and if the matter is not resolved
by the designated representatives of the City and Lessee as provided in Section 7.8(a) above,
then solely with respect to any such determination made by the City Manager, Lessee, as its
sole remedy, may submit such matter to an Arbitrator in accordance with this Section 7.10.
For the avoidance of doubt, in the event the City Manager exercises his or her right to seek the
City Commission's direction or Approval of a Proposed Transferee, the Lessee shall not have
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the right to submit the City Commission's determination or disapproval of a Proposed
Transferee to arbitration pursuant to this Section 7.10, but the City Commission shall be
subject to the same time period and standards of judgment as would apply to the City Manager
as provided in Exhibit A.
(c) If Lessee elects to proceed with an Arbitrator in accordance with this Section
7.10, the determination of whether a proposed brand should be an Approved Brand or a
Proposed Transferee is an Acceptable Owner, will be made by (a) an expert selected jointly by
the City and Lessee, or(b) if the City and Lessee fail to agree upon a single expert, by an expert
selected by the City, an expert selected by Lessee and a third expert appointed by the experts
selected by the Parties. Any Arbitrator or expert panelist hereunder will each have at least ten
(ro) years of professional experience in the hotel industry with hotels meeting the Hotel
Standards. The Parties agree that no discovery (as the term is commonly construed in
litigation proceedings) will be permitted and agree that neither Party nor the Arbitrator shall
have discovery rights in connection with a Dispute hereunder. The proceeding before the
Arbitrator shall be conducted in an informal and expeditious manner. No transcript or
recording shall be made. Each Party shall have the opportunity to make a brief statement and
to present documentary and other support for its position, which may include the testimony of
not more than four (4) individuals, two (2) of whom may be outside experts. There shall be no
presumption in favor of either Party's position. Any procedural matter not covered herein shall
be governed by procedures mutually agreed upon by the Parties, or if they are unable to agree,
in accordance with the Construction Industry Arbitration Rules of the American Arbitration
Association (as amended hereby).
(d) The matter submitted to the Arbitrator will be conclusively determined within thirty
(30) days of the appointment of the last Arbitrator by (a) the decision of the single expert, (b) the
decision of any two of the three experts, if two are able to agree, (c) the decision of the third expert, if
no two of the three experts are able to agree within such period, or (d) agreement between the Parties
prior to and independently of the decision of the Arbitrator.
(e) With respect to (i) whether a proposed Approved Brand satisfies the definition of an
Approved Brand pursuant to clause (a) of the definition thereof, the Arbitrator will determine that such
proposed Approved Brand either satisfies such definition or fails to satisfy such definition or(ii)whether
the City has acted reasonably in disapproving a proposed Approved Brand pursuant to Section 13.3,the
Arbitrator will determine either that the City acted reasonably in disapproving the proposed Approved
Brand or that the City acted unreasonably in disapproving the proposed Approved Brand, and the
Arbitrator will have no authority to compromise or otherwise modify the issue that is the subject of the
determination or(iii)whether a Proposed Transferee satisfies the definition of an Acceptable Owner and
the Acceptable Owner Criteria pursuant to Exhibit A, the Arbitrator will determine that such Proposed
Transferee either satisfies such definition and criteria or fails to satisfy such definition and criteria. If
any matter submitted to the Arbitrator hereunder is settled by agreement between the Parties prior to,
and independently of, the final determination of the Arbitrator, any and all expenses of such binding
determination (including fees of the Arbitrator)will be shared equally by the Parties; and the expense of
such binding determination resolved by final determination of the Arbitrator (including fees of the
Arbitrator)will be borne by the Party against whom such determination has been concluded.
Section 7.11. Plans and Data. In the event of a termination of this Lease, Lessee shall deliver to
City, copies of any and all Subleases and service and maintenance agreements then affecting the Leased
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Property, all maintenance records, all warranties or guaranties then in effect which Lessee received in
connection with any work or services performed or FF&E installed on the Leased Property,the plans and
specifications, surveys, studies, reports, cost estimates, designs, Governmental Approvals, keys,
combinations to locks, access codes, records, correspondence and any and all other records, files,
documents and other items and materials of every kind and nature whatsoever relating to the
development, operation, maintenance or ownership of the Hotel Project, all of which shall be delivered
by Lessee to the City within thirty (30) days after such termination. Such materials will be provided to
City without any representation or warranty of any kind, express or implied (including regarding the
truth, accuracy or completeness thereof and fitness for a particular purpose). The obligations of Lessee
under this Section 7.11 survive the termination of this Lease.
ARTICLE VIII
PROTECTION AGAINST MECHANICS' LIENS
AND OTHER CLAIMS; INDEMNIFICATION
Section al. Lessee's Duty to Keep Project Free of Liens.
(a) Pursuant to Section 713.10, Florida Statutes, any and all liens or lien rights shall extend
to, and only to, the right, title and interest of Lessee in the Hotel Project and shall not encumber or
affect the City's fee simple title to the Leased Property.
(b) The right, title and interest of the City in the Leased Property shall not be subject to liens
or claims of liens for improvements made by Lessee. Nothing contained in this Lease shall be deemed or
construed to constitute the consent or request of the City, express or by implication or otherwise, to any
contractor, subcontractor, laborer or materialman for the performance of any labor or the furnishing of
any materials for any specific improvement of, alteration to, or repair of the Hotel Project, or any part
thereof, nor as giving Lessee, any Leasehold Mortgagee, Subtenant, lessee, or sub-lessee any right,
power or authority to contract for, or permit the rendering of, any services or the furnishing of materials
that would give rise to the filing of any lien, mortgage or other encumbrance against City's interest in
the Leased Property, or any part thereof, or against assets of the City, or City's interest in any Rent and
other monetary obligations of Lessee as defined in this Lease.
(c) Notice is hereby given, and Lessee shall cause all construction agreements entered into
between Lessee and the Hotel Project General Contractor or other contractor in privity with Lessee or
subcontractor in privity with the Hotel Project General Contractor or any other subcontractor to provide
that:
(i) City shall not be liable for any work performed or to be performed at the Hotel
Project or any part thereof for or on behalf of the Lessee, any Leasehold Mortgagee, Subtenant, lessee,
or sub-lessee or for any materials furnished or to be furnished to the Hotel Project, or any part thereof,
for any of the foregoing; and
(ii) no mechanic's, laborer's, vendor's, materialman's or other similar statutory lien
for such work or materials shall be attached to or affect City's interest in the Leased Property, or any
part thereof, or any assets of the City, or the City's interest in any Rent or other monetary obligations of
Lessee arising under this Lease.
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(d) Lessee acknowledges and agrees that the City shall be entitled to record in the public
records of Miami-Dade County, Florida a notice of no lien in accordance with Chapter 713.10, Florida
Statutes, and that if requested by the City, Lessee will execute and deliver a countersignature to such
notice within ten (10) days of the City's request.
Section 8.2. Contesting Liens. If Lessee desires to contest any such lien as described in Section
8.1, it shall notify the City of its intention to do so within thirty (30) days after Lessee has notice of the
filing of such lien. In such case, Lessee, at Lessee's sole cost and expense, shall furnish a cash deposit or
surety bond in an amount sufficient to pay such lien and any cost (including interest and penalties),
liability or damage arising out of such contest. The lien, if Lessee timely provides the bond described
above, shall not be an Event of Default hereunder until thirty (30) days after the final determination of
the validity thereof provided that, within that time, Lessee shall satisfy and discharge such lien to the
extent held valid; provided, however, that the satisfaction and discharge of any such lien shall not, in
any case, be delayed until execution is had on any judgment rendered thereon, or else such delay shall
be considered to be a monetary Event of Default hereunder. In the event of any such contest, Lessee
shall protect and indemnify the City against all loss, expense and damage resulting therefrom as
provided in Section 8.3.
Section 8.3. Indemnification.
(a) Lessee acknowledges and agrees that this Lease is not an agreement between City and
any architect, engineer, general contractor, subcontractor, sub-subcontractor, or materialman or any
combination thereof for the construction, alteration, repair, or demolition of a building, structure,
appurtenance, or appliance on the Leased Property, and therefore that the limitations on indemnity
provisions in Section 725.06, Florida Statutes, as such statute may be amended from time to time, do
not apply to this Lease. Accordingly, to the fullest extent permitted by law, the Lessee shall defend,
indemnify and hold harmless the City and its officers, employees, agents and instrumentalities from any
and all liability, losses or damages, including reasonable attorneys' fees and costs of defense, which the
City or its officers, employees, agents or instrumentalities may incur as a result of claims, demands,
suits, causes of actions or proceedings of any kind or nature first arising following the Effective Date,and
arising out of, relating to or resulting from any of the following occurrences or events, whether by the
Lessee or its employees, agents, partners, principals, sub-lessees, or contractors: (I) any default, breach
or violation or non-performance of this Lease or any provision thereof; (ii) the use and operation of the
Hotel Project or any part thereof which is not in compliance with the terms of this Lease, (Hi) the
negligent acts or omissions of Lessee or its employees, agents, partners, principals, sub-lessees, or
contractors; (iv) any challenge to the validity of any Transfer by a third party through legal proceedings
or otherwise based on the action or inaction of Lessee or its employees, agents, partners, principals,
sub-lessees or contractors, except to the extent any liability, losses or damages are caused by the gross
negligence or willful misconduct of the City or its officers, employees, agents,or contractors.
(b) Lessee shall investigate and defend all claims, suits, or actions of any kind or nature in
the name of the City which are covered by this indemnity obligation, where applicable, including
appellate proceedings, and shall pay reasonable costs,judgments, and reasonable attorney's fees which
may issue thereon.
(c) Lessee expressly understands and agrees that any insurance protection required by
this Lease or otherwise provided by Lessee shall in no way limit the responsibility to indemnify, keep and
save harmless and defend the City or its officers, employees, agents and instrumentalities as herein
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provided. The City shall give to the Lessee reasonable notice of any such claims or actions. The
provisions of this section shall survive the expiration or early termination of this Lease.
(d) Lessee covenants and agrees that any contracts entered into by Lessee and the Hotel
Project General Contractor or other contractors in privity with Lessee for the Work shall include the
indemnities required by this Section 8.3 from the Hotel Project General Contractor or other contractors
in privity with Lessee in favor of Lessee and the City.
Section 8.4. Environmental Matters.
(a) Defined Terms.
(i) 'Environmental Condition" means any set of physical circumstances in, on,
under, or affecting the Hotel Project that may constitute a threat to or endangerment of health, or the
environment, including:
(1) The presence of any Hazardous Substance in violation of Environmental
Laws which were introduced to the Hotel Site after the Possession Date or by Lessee prior to the
Possession Date;
(2) any underground storage tanks, as defined in Subtitle I of the Hazardous
and Solid Waste Amendments of 1984, 42 U.S.C. 6991 et. seq., or the regulations thereunder, for the
storage of hazardous wastes,oil, petroleum products, or their byproducts;
(3) The presence of any PCB, asbestos or any other substances specifically
regulated under the Toxic Substances Control Act, 15 U.S.C. 2601 or regulations issued thereunder, in
violation of Environmental Laws which were introduced to the Hotel Site after the Possession Date or by
Lessee prior to the Possession Date; and any open dump or system of refuse disposal for public use
without a permit, as prohibited by 42 U.S.C. 6945 and/or Florida law equivalent, or the regulations
issued thereunder.
(ii) "Environmental Laws" means the Comprehensive Environmental Response,
Compensation and Liability Act, 42 U.S.C. 9601 et. seq., the Resource Conservation and Recovery Act,42
U.S.C. 6901 et. seq.; the Toxic Substances Control Act, 15 U.S.C. 2601 et. seq.; the Clean Water Act, 33
U.S.C. 1251 et seq.; the Clean Air Act, 42 U.S.C. 7401 et. seq.; the Oil Pollution Act, 33 U.S.C. 2701 et.
seq., the Hazardous Materials Transportation Act, 49 U.S.C. 1801 et. seq.; the Refuse Act of 1989, 33
U.S.C. 407; as such laws have been amended or supplemented from time-to-time, and the regulations
promulgated thereunder; and any equivalent state or local laws.
(iii) "Hazardous Substance" means any substances or materials presently or
hereinafter identified to be toxic or hazardous according to any of the Environmental Laws, including
any asbestos, PCB, radioactive substances, petroleum based products, and includes hazardous wastes,
hazardous substances, extremely hazardous substances, hazardous materials, toxic substances, toxic
chemicals, oil, petroleum products and their by-products, and pollutants or contaminants as those terms
are defined in the Environmental Laws.
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(iv) "Environmental Permit" means any Governmental Approval required under any
Environmental Law in connection with the ownership, use or operation of the Hotel Project for the
storage, treatment, generation, transportation, processing, handling, production or disposal of
Hazardous Substances, or the sale, transfer or conveyance of the Hotel Project, and all supporting
documentation thereof.
(v) "Environmental Claim" means any notice of violation, claim, demand,
abatement or order or direction (conditional or otherwise) by any Governmental Authority or any
person for personal injury (including sickness, disease, or death), property damage, damage to the
environment, nuisance, pollution, contamination or other adverse effects on the environment, or for
fines, penalties, or restrictions, resulting from or based upon:
(1) the existence or release, or continuation of any existence of a release
of, or exposure to, any Hazardous Substance in, into or onto the environment (including the air, ground,
water or any surface) at, in, or from the Leased Property in violation of Environmental Laws;
(2) the transportation, storage, treatment or disposal of any Hazardous
Substance in connection with the activities on the Leased Property in violation of Environmental Laws;
or
(3) the violation, or alleged violation, of any Environmental Laws on the
Leased Property; but excluding any of the foregoing to the extent arising from the negligent or
intentional actions of the City and its agents.
(vi) "Corrective Action Work' means any and all activities of removal, response,
investigation,testing, analysis, remediation taken to:
(1) prevent, abate or correct an existing or threatened Environmental
Condition at, about, or affecting the Leased Property; or
(2) comply with all applicable Environmental Laws.
(b) Environmental Indemnification.
(I) Lessee covenants and agrees, at its sole cost and expense, to defend (with
counsel selected by Lessee, after consulting with the City), indemnify and hold harmless the City, its
successors, and assigns from and against,and shall reimburse the City, its successors and assigns,for any
and all Environmental Claims, whether meritorious or not, brought against the City by any
Governmental Authority;
(ii) the foregoing indemnity includes indemnification against all costs of removal,
response, investigation, or remediation of any kind, and disposal of such Hazardous Substances as
necessary to comply with Environmental Laws, all costs associated with any Corrective Action Work, all
costs associated with claims for damages to persons, property, or natural resources, and the City's
commercially reasonable attorneys' fees and consultants' fees, court costs and expenses incurred in
connection therewith;
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(iii) this indemnification is in addition to all other rights of the City under this Lease;
and
(iv) payments by Lessee under this Section shall not reduce Lessee's obligations and
liabilities under any other provision of this Lease.
Notwithstanding anything to the contrary contained in this Lease, neither the Lessee nor Hotel
Project General Contractor, or other contractor in privity with Lessee, has a duty to indemnify the City in
connection with any Environmental Claims to the extent caused by the negligent or intentional conduct
of the City or its agents, employees or contractors, which negligent or intentional conduct occurs
following the date the Lessee completed its environmental testing.
Section 83. Limitation of City's Liability.
(a) Any tort liability to which the City is exposed under this Lease shall be limited to the
extent permitted by applicable law and subject to the provisions and monetary limitations of Section
768.28, Florida Statutes, as may be amended, which statutory limitations shall be applied as if the
parties had not entered into this Lease, and City expressly does not waive any of its rights and
immunities thereunder.
(b) City will not in any event whatsoever be liable for any injury or damage to Lessee(unless
caused by the gross negligence of City, its agents, contractors or employees) or to any other Person
happening on, in or about the Leased Property and its appurtenances, nor for any injury or damage to
the Leased Property or to any property belonging to Lessee (unless caused by the gross negligence of
City, its agents, contractors or employees) or to any other Person which may be caused by any fire or
breakage, or by the use, misuse or abuse of any of the Lessee Improvements (including any of the
common areas within the buildings, equipment, elevators, hatches, openings, installations, stairways,
hallways or other common facilities or the improvements to the land described in this Lease), or which
may arise from any other cause whatsoever.
(c) City will not be liable to Lessee or to any other Person for any failure of telephone,
computer system, cable TV, water supply, sewage disposal, gas or electric current, nor for any injury or
damage to any property of Lessee or to any Person or to the Leased Property caused by or resulting
from gasoline, oil, steam, gas, electricity, or hurricane, tornado, flood, wind or similar storms or
disturbances, or water, rain or snow which may leak or flow from the street, sewer, gas mains or
subsurface area or from any part of the Leased Property, or leakage of gasoline or oil from pipes,
appliances, sewer or plumbing works therein, or from any other place, nor for interference with light or
other incorporeal hereditaments by any Person (unless caused by the gross negligence of City, its
agents, contractors or employees).
ARTICLE IX
INSURANCE AND RECONSTRUCTION
Section 9.1. General Insurance Provisions. Prior to any activity on the Leased Property, and at
all times during the Term, Lessee at its sole cost and expense shall procure the insurance specified
below. In addition, Lessee shall ensure its Hotel Project General Contractor and tenants maintain the
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insurance coverages set forth below. All policies must be executable in the State of Florida. All insurers
must maintain an AM Best rating of A-or better. The terms and conditions of all policies may not be less
restrictive than those contained in the most recent edition of the policy forms issued by the Insurance
Services Office (ISO) or the National Council on Compensation Insurance (NCC1). If ISO or NCCI issues
new policy forms during the policy term of the required insurance, complying with the new policy forms
will be deferred until the expiration date of the subject policy. Said insurance policies shall be primary
over any and all insurance available to the City whether purchased or not and shall be non-contributory.
The Lessee, its Hotel Project General Contractor or tenants shall be solely responsible for all deductibles
contained in their respective policies. All policies procured pursuant to this Article IX shall be subject to
maximum deductibles reasonably acceptable to the City. The City of Miami Beach will be included as an
"additional insured" on the commercial general liability, automobile liability, property insurance, and
pollution liability policies. The City will also be named as an insured as its interests may appear with
respect to the builder's risk policy.
Section 9.2. Evidence of Insurance. Prior to Lessee taking possession of the Leased Property, and
annually thereafter, Lessee shall deliver satisfactory evidence of the required insurance to the City.
Satisfactory evidence shall be: (a) a certificate of insurance for all required coverage; and (b) a copy of
the actual insurance policy for builder's risk coverage. The City, at is sole option, may request a certified
copy of any or all insurance policies required by this Lease, or the applicable portions thereof if
insurance is provided through a master insurance program. All insurance policies must specify they are
not subject to cancellation or non-renewal without a minimum of 30 days notification by the insurer to
the City, the City's Risk Management Division and the First Leasehold Mortgagee, with a minimum of 10
days notification by the insurer to the City, the City's Risk Management Division and the First Leasehold
Mortgagee prior to cancellation or non-renewal for non-payment of premium. The Lessee will deliver to
the City, at least 30 days prior to the date of expiration of any insurance policy, a renewal policy
replacing any policies expiring during the Term of this Lease, or a certificate thereof, together with
evidence that the full premiums have been paid. Premiums on policies will not be financed in any
manner whereby any Leasehold Mortgagee, on default or otherwise, will have the right or privilege of
surrendering or cancelling the policies; provided, however, that premiums may he paid in annual
installments. All certificates of insurance shall 0) be in a form acceptable to the City, (ii) name the types
of policies provided, (iii) refer specifically to this Lease; (iv) evidence the waiver of subrogation in favor
of the City as required by Section 9.11 below; and (v) evidence that coverage shall be primary and
noncontributory, and that each policy includes a Cross Liability or Severability of Interests provision,
with no requirement of premium payment by the City. Lessee shall deliver, together with each
certificate of insurance, a letter from the agent or broker placing such insurance, certifying to the City
that the coverage provided meets the coverage required under this Lease. The official title of the
certificate holder is "City of Miami Beach, Florida." Additional insured certificates for the City shall read
"City of Miami Beach, Florida", and shall be addressed to 1700 Convention Center Drive, Miami Beach,
FL, 33139, Attn: Risk Management, 3rd Floor.
Section 9.3. Required Coverages. In addition to such insurance as may be required by law, the
Lessee shall procure and maintain, or cause others to procure and maintain, without lapse or material
change, for so long as it occupies the Leased Property, the following insurance, which may be provided
through master blanket insurance policies:
(a) Commercial General Liability Insurance on a comprehensive basis, including contractual
liability, to cover the Leased Property and Lessee's operations and indemnity obligations, in an amount
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not less than $5,000,000 combined single limit per occurrence for bodily injury and property damage.
Such insurance may be provided through a combination of primary and excess/umbrella liability policies.
(b) Automobile Liability Insurance covering all owned, non-owned and hired vehicles used
by the Lessee in connection with its operations under this Lease in an amount not less than $1,000,000
combined single limit per occurrence for bodily injury and property damage. Coverage must be afforded
on a form no more restrictive than the latest edition of the Business Automobile Liability policy, without
restrictive endorsements, as filed by the Insurance Services Office (ISO).
(c) Pollution Liability Insurance in an amount not less than $10,000,000 per claim, covering
third party claims, remediation expenses, and legal defense expenses arising from on-site and off-site
loss, or expense or claim related to the release of Hazardous Materials at the Leased Property. Such
policy shall include an annual policy aggregate in the amount of$20,000,000.
(d) Builders Risk Insurance during the course of construction, issued in the name of the
Lessee, the Hotel Project General Contractor and the City as their interests may appear, in amount(s)
not less than 100% of the insurable value of the Hotel Project completed structure(s), covering perils on
an "All Risk" basis, including flood, earthquake, and windstorm. In an amount not less than $10,000,000.
Policy(s) must clearly indicate that underground structures (if applicable) and materials being installed
are covered. Any deductibles are the sole responsibility of the Lessee.
(e) Commercial Property Insurance in an amount of 100% of the insurable value of all
Lessee Improvements under an "all risk" form, including damage by water, flood, subsistence, tornado,
hurricane and earthquake in an amount not less than $10,000,000.
(f) Business Interruption Insurance coverage utilizing a gross earnings value form with
limits equal to twelve (12) months of Lessee's projected Gross Operating Revenues associated with the
Leased Property. The City and Lessee shall jointly review Lessee's projected Gross Operating Revenues
periodically and the limits of this policy shall be adjusted based on this review.
(g) Workers' Compensation and Employers Liability Insurance with limits sufficient to
respond to Florida Statute §440. In addition, the Lessee shall obtain Employers' Liability Insurance with
limits of not less than: (i) $500,000 Bodily Injury by Accident, (ii) $500,000 Bodily Injury by Disease and
(iii) $500,000 Bodily Injury by Disease,each employee.
(h) Professional Liability. Lessee shall cause any architects or engineers to maintain
architects and engineers errors and omissions liability insurance specific to the activities or scope of
work such consultants will perform. If coverage is provided on a "claims made" basis, the policy shall
provide for the reporting of claims for a period of five (5) years following the completion of all
construction activities. The minimum limits acceptable shall be $1,000,000 per occurrence and
$3,000,000 in the annual aggregate.
(i) Terrorism Insurance. So long as the Terrorism Risk Insurance Program Reauthorization
Act of 2015 ("TRIPRA") or a similar or subsequent statute is in effect, terrorism insurance for "certified"
and "non-certified" acts (as such terms are used in TRIPRA or a similar or subsequent statute) in an
amount equal to the full replacement cost of the Leased Property plus 12 months of business
interruption coverage. If TRIPRA or a similar or subsequent statute is not in effect, then the "all risk"
property insurance required pursuant to Section 9.3(e) of this Lease shall not exclude coverage for acts
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of terror or similar acts of sabotage unless terrorism insurance is not commercially available, in which
case, Lessee shall obtain stand-alone coverage in commercially reasonable amounts (for purposes of this
clause (i), commercially reasonable amounts shall mean amounts that would be (A) obtained by
property owners or lessees of properties located in markets similar to that of the Hotel Project and
similar in size and type to the Hotel Project and (B) required by prudent Institutional Lenders or
landlords in such similar markets with similar properties).
Section 9.4. Premiums and renewals. Lessee shall pay as the same become due all premiums for
the insurance required by this Article IX, shall renew or replace each such policy and deliver to the City
evidence of the payment of the full premium thereof prior to the expiration date of such policy, and
shall promptly deliver to the City all original Certificates of Insurance and copies of all such renewal or
replacement policies.
Section 9.5. Adequacy Of Insurance Coverage.
(a) The adequacy of the insurance coverage required by this Article IX may be reviewed
periodically by the City in its sole discretion.The City reserves the right, but not the obligation, to review
and reasonably revise the insurance requirements every three (3) years, (including but not limited to
deductibles, limits, coverages and endorsements) provided such revisions are commercially reasonable,
customary and commonly available regarding properties similar in type, size, use and location to the
Leased Property and Lessee Improvements and further provided that such coverage is available at
commercially reasonable rates(including fiduciary liability and directors and officers liability insurance);
(b) Lessee agrees that City may, if it so elects, at City's expense, have the Lessee
Improvements appraised for purposes of obtaining the proper amount of insurance hereunder. Any
review by the City shall not constitute an approval or acceptance of the amount of insurance coverage.
Section 9.6. City May Procure Insurance if Lessee Fails To Do So. If Lessee refuses, neglects
or fails to secure and maintain in full force and effect any or all of the insurance required pursuant to
this Lease within thirty (30) days after written notice from the City, the City, at its option, may procure
or renew such insurance. In that event, all commercially reasonable amounts of money paid therefor by
the City shall be treated as Additional Rent payable by Lessee to the City together with interest thereon
at the Default Rate from the date the same were paid by the City to the date of payment thereof by
Lessee. Such amounts, together with all interest accrued thereon, shall be paid by Lessee to the City
within ten (10) days of written notice thereof.
Section 9.7. Effect of Loss or Damage. Any loss or damage by fire or other casualty of or to any
of the Lessee Improvements on the Leased Property at any time shall not operate to terminate this
Lease or to relieve or discharge Lessee from the payment of Rent, or from the payment of any money to
be treated as Additional Rent in respect thereto, pursuant to this Lease, as the same may become due
and payable, as provided in this Lease, or from the performance and fulfillment of any of Lessee's
obligations pursuant to this Lease. No acceptance or approval of any insurance agreement or
agreements by the City shall relieve or release or be construed to relieve or release Lessee from any
liability, duty or obligation assumed by,or imposed upon it by the provisions of this Lease.
Section 9.8. Proof of Loss. Whenever any Lessee Improvements, or any part thereof, constructed
on the Leased Property (including any personal property furnished or installed in the premises) shall
have been damaged or destroyed, Lessee shall promptly make proof of loss in accordance with the
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terms of the insurance policies and shall proceed promptly to collect or cause to be collected all valid
claims which may have arisen against insurers or others based upon any such damage or destruction.
Section 9.9. Insurance Proceeds.
(a) Authorized Payment. All sums payable for loss and damage arising out of the casualties
covered by the property insurance policies shall be payable:
(i) directly to Lessee, if the total recovery is equal to or less than $10,000,000 (as
adjusted for inflation over the Term pursuant to Section 14.20 hereof), except that if an Event of Default
has occurred and is continuing hereunder, such proceeds, shall be paid over to the Insurance Trustee
and disbursed in accordance with Section 9.9(a)(ii). After the completion of all Reconstruction Work in
accordance herewith, any remaining proceeds shall be paid over to Lessee subject to its obligations to
the First Leasehold Mortgagee; and
(ii) to a commercial bank or trust company designated by Lessee and Approved by
the City Manager (the "Insurance Trustee'), if the total recovery is in excess of$10,000,000 (as adjusted
for inflation over the Term pursuant to Section 14.20 hereof) or is less than $10,000,000 but an Event of
Default has occurred and is continuing hereunder, to be held by the Insurance Trustee pending
establishment of reconstruction, repair or replacement costs and shall be disbursed to Lessee pursuant
to the provisions of subparagraph (b) of this Section 9.9.
(b) Disposition of Insurance Proceeds for Reconstruction.
(I) All insurance proceeds shall be applied for the reconstruction, repair or
replacement of Lessee Improvements and the FF&E and other personal property of Lessee located on
the Leased Property, so that Lessee Improvements, FF&E and such other personal property shall be
restored to a condition comparable to the condition prior to the loss or damage but in all cases
consistent with the Hotel Standards(hereinafter referred to as "Reconstruction Work");
(ii) From the insurance proceeds received by the Insurance Trustee, there shall be
disbursed to Lessee such amounts as are required for the Reconstruction Work. Lessee shall submit
invoices or proof of payment to the Insurance Trustee for payment or reimbursement according to an
agreed schedule of values approved in advance by the City Manager and Lessee; and
(iii) After the completion of the Reconstruction Work, any unused insurance
proceeds shall be paid to Lessee.
Section 9.10. Reconstruction.
(a) In the event of any loss or damage by fire or other casualty of or to any of the Lessee
Improvements, FF&E and other personal property of Lessee located on the Leased Property having a
value in excess of$2,500,000, Lessee shall give the City notice thereof within five (5) Business Days, and
Lessee, at its sole cost and expense, whether or not such loss or damage has been insured and whether
or not such loss or damage is to property having a value in excess of$2,500,000, covenants and agrees
to commence the Reconstruction Work as soon as practicable, but in any event within three (3) months
after the insurance proceeds in respect of the destroyed or damaged improvements or personal
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property have been received, and to fully complete such Reconstruction Work as expeditiously as
reasonably possible consistent with the nature and extent of the damage. Lessee shall comply in all
respects with the provisions of Section 2.15 with respect to any Reconstruction Work.
(b) In the event that Lessee fails to perform the Reconstruction Work in accordance
herewith and within a reasonable time after such loss or damage, the City shall have the right to
terminate this Lease after thirty (30) days' notice if within such thirty (30) day period such
Reconstruction Work is not complete or Lessee has not provided reasonable assurance that it is
proceeding in good faith and using commercially reasonable efforts to complete such Reconstruction
Work, in which case, upon the City's request, the Lessee shall surrender and return the Leased Property
to the City in the same condition existing on the Possession Date, including demolition of all Lessee
Improvements and repair and restoration of any property, including the Convention Center, affected by
the demolition of the Lessee Improvements, and free and clear of all debts, mortgages, encumbrances
and liens.
(c) Notwithstanding the foregoing, if, during the last ten (10) years of the Term, the Lessee
Improvements are totally destroyed or so damaged as to render them unusable, then (i) Lessee or the
City may terminate this Lease by delivery of written notice of such termination to the other Party not
later than sixty (60) days after the occurrence of such casualty, whereupon this Lease will terminate as
of the date of such casualty. Upon such termination,the insurance proceeds shall be payable as follows:
(i) first, to demolish the Lessee Improvements and clear the site of all Lessee Improvements and debris
to the City's reasonable satisfaction, (ii) second to reimburse Lessee for the fair market value of the
Lessee Improvements as of the date prior to such loss or destruction and (iii) third, the balance, if any,to
the City. If neither the Lessee nor the City timely elect to terminate this Lease in accordance with this
Section 9.10(c), Lessee shall restore the Lessee Improvements in accordance with Section 9.10(a) hereof.
Section 9.11. Waiver of Subrogation. Where permitted by law, each Party hereby waives all rights
of recovery by subrogation or otherwise (including, without limitation, claims related to deductible or
self-insured retention clauses, inadequacy of limits of any insurance policy, insolvency of any insurer,
limitations or exclusions of coverage), against the other Party, and its respective officers, agents, or
employees.
Section 9.12. Inadequacy of Insurance Proceeds. Lessee's liability hereunder to timely
commence and complete restoration of the damaged or destroyed Lessee Improvements shall be
absolute, irrespective of whether the insurance proceeds received, if any, are adequate to pay for said
restoration.
Section 9.13. No City Obligation to Provide Property Insurance. Lessee acknowledges and
agrees that City shall have no obligation to provide any property insurance on any Lessee Improvements
or property of Lessee located on the Leased Property. If City does provide any property insurance
coverage, Lessee acknowledges that such insurance shall be for the sole benefit of the City and Lessee
shall have no right or claim to any such proceeds.
Section 9.14. Compliance. Lessee's compliance with the requirements of this Article IX shall not
relieve the Lessee of its liability, or be construed to relieve or limit, Lessee of any responsibility, liability,
or obligation imposed under any other portion of this Lease, or by law, including, without limitation, any
indemnification obligations which Lessee owes to City.
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Section 9.15. Right to Examine. The City reserves the right, upon reasonable notice, to examine the
original or true copies of policies of insurance (including binders, amendments, exclusions, riders and
applications), or applicable portions of any master insurance policy, to determine the true extent of
coverage. The Lessee agrees to permit such inspection and make available such policies or portions
thereof at the offices of the City.
Section 9.16. Personal Property. Any personal property of the Lessee or of others placed in the
Leased Property shall be at the sole risk of the Lessee or the owners thereof, and the City shall not he
liable for any loss or damage thereto for any cause except as a result of the gross negligence or willful
misconduct of the City or its employees, agents or contractors.
ARTICLE X
CONDEMNATION
Section i0.1. Complete Condemnation.
(a) If the entire Hotel Project shall be taken or condemned for any public or quasi-public
use or purpose, by right of eminent domain or by purchase in lieu thereof(in each case, a "Taking"), or if
such Taking shall be for a portion of the Hotel Project such that the portion remaining is not sufficient
and suitable, on a commercially reasonable basis, for the operation of the Hotel, then this Lease shall
cease and terminate as of the date on which the condemning authority takes possession; and
(b) If this Lease is so terminated, the entire award for the Hotel Project or the portion
thereof so taken shall be apportioned among the City and the Lessee as of the day immediately prior to
the vesting of title in the condemning authority, as follows:
(i) First, but only if the City is not the authority condemning the Hotel Project, the
City shall receive the then fair market value of the Leased Property so taken or condemned considered
as vacant, unimproved, and unencumbered, together with the value of the City's remainder interest in
the Lessee Improvements which have been taken;
(ii) Second, Lessee shall be entitled to the then fair market value of its interest
under this Lease and in the Lessee Improvements, less the discounted value of such Lessee
Improvements as allocated to the City, together with any and all business damages suffered by Lessee
(subject, however,to the rights of the First Leasehold Mortgagee thereto); and
(iii) the City and Lessee shall each receive one-half(1/2) of any remaining
balance of the award, except that the Lessee shall receive the entire remaining balance of the award if
the City is the authority condemning the Hotel Project.
Section 10.2. Partial Condemnation.
(a) If there is a Taking of a portion of the Hotel Project, and the remaining portion can, on a
commercially reasonable basis be adapted and used to operate the Hotel in the same manner it was
previously operated, then this Lease shall continue in full force and effect; and
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(b) In such event,the award shall be apportioned as follows:
(i) First, to the Lessee to the extent required, pursuant to the terms of this Lease,
for the restoration of the Hotel Project;
(ii) Second, but only if the City is not the authority condemning the Hotel Project, to
the City the portion of the award allocated to the fair market value of the Leased Property which is so
taken, considered as vacant and unimproved;
(iii) Third, to the Lessee the amount by which the value of Lessee's interest in the
Lessee Improvements and the Leased Property were diminished by the taking or condemnation; and
(iv) the City and Lessee shall each receive one-half (1/2) of any remaining balance of
the award, except that the Lessee shall receive the entire remaining balance of the award if the City is
the authority condemning the Hotel Project.
Section 10.3. Restoration After Condemnation. If this Lease does not terminate due to a Taking,
then:
(a) Lessee shall, with commercially reasonable diligence and good-faith, restore the
remaining portion of the Hotel Project in accordance with the provisions of Sections 9.10(a) hereof;
(b) the entire proceeds of the award shall be deposited and treated in the same manner as
insurance proceeds are to be treated under Article IX until the restoration has been completed and
Lessee and the City have received their respective shares thereof pursuant to this Article X; and
(c) if the award is insufficient to pay for the restoration, Lessee shall be responsible for the
remaining cost and expense.
Section 10.4. Temporary Taking. If there is a Taking of the temporary use (but not title) of the
Hotel Project, or any part thereof, this Lease shall, but only to the extent it is commercially reasonable,
remain in full force and effect and there shall be no abatement of any amount or sum payable by or
other obligation of Lessee hereunder. Lessee shall receive the entire award for any such temporary
Taking to the extent it applies to the period prior to the end of the Term and the City shall receive the
balance of the award.
Section 10.5. Determinations. If Landlord and the Lessee cannot agree in respect of any matters to
be determined under this Article, a determination shall be requested of the court having jurisdiction
over the Taking. For purposes of this Article, any personal property taken or condemned shall be
deemed to be a part of the Lessee Improvements, and the provisions hereof shall be applicable thereto.
Section 10.6. Payment of Fees and Costs. All fees and costs incurred in connection with any
condemnation proceeding described in Article X shall be paid in accordance with the law governing
same, as determined by the court, if appropriate.
ARTICLE XI
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QUIET ENJOYMENT AND OWNERSHIP OF IMPROVEMENTS
Section 11.1. Quiet Enjoyment.
(a) The City represents and warrants that Lessee, upon paying the Rent, Additional Rent
and other monetary obligations pursuant to this Lease and observing and keeping the covenants and
agreements of this Lease on its part to be kept and performed, shall lawfully and quietly hold, occupy
and enjoy the Leased Property during the Term without hindrance or molestation by the City, acting in
its proprietary capacity, or by any Person claiming under the City, acting in its proprietary capacity. The
City shall, at its own cost and expense, through the City Attorney's office or other counsel selected by
the City in its sole discretion, defend any suits or actions which may be brought challenging Lessee's
right to lawfully and quietly hold, occupy and enjoy the Leased Property in accordance with the
preceding sentence. Lessee shall have the right to retain its own counsel in connection with such
proceedings, at Lessee's sole cost and expense.
(b) However, if the City is acting in its governmental capacity, any liability under this Section
shall only be to the extent permitted by applicable law and subject to the provisions and monetary
limitations of Section 768.28, Florida Statutes, as may be amended, which statutory limitations shall be
applied as if the parties had not entered into this Lease.
Section 1.1.2. Waste. Lessee shall not knowingly permit, commit or suffer waste or material
impairment of the Hotel Project, or any part thereof; provided, however, demolition of existing
improvements on the Leased Property existing on the date hereof or redevelopment or reconstruction
of the Hotel Project as permitted under this Lease shall not constitute waste.
Section 11.3. Maintenance and Operation of Improvements. Without limiting the provisions of
Article XII, Lessee shall at all times keep the Hotel Project in good and safe condition and repair in
accordance with the Hotel Standards, commercially reasonable wear and tear excepted. Regarding the
occupancy, maintenance and operation of the Hotel Project, the Lessee shall comply with all applicable
Governmental Requirements.
Section 11.4. Ownership of Improvements During Lease.
(a) Prior to the expiration or termination of this Lease, title to the Lessee Improvements
shall not vest in the City by reason of its ownership of fee simple title to the Leased Property, but title to
the Lessee Improvements shall remain in Lessee.
(b) If this Lease shall terminate, based on a mutual agreement between the parties or an
final order from a court with jurisdiction from which the time for appeal has expired, prior to the
expiration of the Term and if, at that time, the First Leasehold Mortgagee shall exercise its option to
obtain a new lease for the remainder of the Term pursuant to Article VI, then title to the Lessee
Improvements shall automatically pass to, vest in and belong to such First Leasehold Mortgagee or any
designee or nominee of such First Leasehold Mortgagee permitted hereunder, until the expiration or
sooner termination of the term of such new lease.
(c) The City and Lessee covenant that, to confirm the automatic vesting of title as provided
in this paragraph, each will execute and deliver such further assurances and instruments of assignment
and conveyance as may be commercially reasonably required by the other for that purpose.
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Section 11.5. Surrender of Leased Property.
(a) Upon the expiration of the Term or earlier termination of this Lease (subject only to the
rights of any First Leasehold Mortgagee), title to Lessee Improvements, free and clear of all debts,
mortgages, encumbrances, and liens (which for this purpose shall include all personal property or
equipment furnished or installed on the Hotel Project and owned or leased by Lessee), shall
automatically pass to, vest in and belong to the City or its successor in ownership and it shall be lawful
for the City or its successor in ownership to re-enter and repossess the Leased Property and Lessee
Improvements thereon without process of law; and
(b) The City and Lessee covenant that, to confirm the automatic vesting of title as provided
in this Section, each will execute and deliver such further assurances and instruments of assignment and
conveyance as may be reasonably required by the other for that purpose.
ARTICLE XII
MAINTENANCE AND REPAIRS
Section 12.1. Standards Generally. The City and Lessee agree that the manner in which the Hotel
Project is developed, operated and maintained is important to the City by reason of its interest in having
a convention hotel facility for use by its residents and visitors to the City. Therefore, Lessee hereby
agrees to develop, operate and maintain the Hotel Project and the Lessee Improvements thereon
(including all FF&E) consistent with the Hotel Standards and in good order and repair, and will replace
the same when necessary with items of similar utility and value in order to maintain such condition
throughout the Term.
Section 12.2. Utilities. City will not be required to furnish any services, utilities or facilities
whatsoever to the Leased Property pursuant to this Lease. Any services provided to the Leased Property
shall be pursuant to the terms of a separate agreement.
Section 12.3. Cleaning. Lessee shall, at its sole cost and expense, perform or cause to be performed,
services which will at all times keep the Leased Property and the Lessee Improvements thereon,
whether partially or fully constructed, in a clean, neat, orderly, sanitary and presentable condition.
Section 12.4. Removal of Trash. Lessee shall, at its sole cost and expense, store, dispose of, and
remove or cause to be removed from the Leased Property all trash and refuse which might accumulate
and arise from its use of the Leased Property.
Section 12.5. Maintenance and Repairs.
(a) Lessee shall be exclusively responsible for maintenance and repair of the Leased
Property and the Lessee Improvements, (except for the Off-Site Improvements or to the extent
infrastructure maintenance has been transferred by Lessee to a utility company by means of a
written contract), to the extent and at the times that are consistent with standard industry
practice for each applicable Lessee Improvement. Maintenance and repairs by Lessee,
including landscape maintenance, shall be in quality and class equal to or better than the
original Work to preserve the Leased Property and Hotel Project in good condition and working
order.
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(b) In no event shall City be responsible or liable for any maintenance or repair of any
Lessee Improvement, fixture, equipment, structure, facility, alteration, or addition thereto on the
Leased Property.
(c) Lessee shall be responsible for complying at its cost with any Governmental
Requirements, including construction re-certification of any Lessee Improvement on the Leased
Property (other than the Off-Site Improvements), including the "40-year recertification"
requirement under the current building code.
(d) Maintenance and repair of the Hotel Project must he at a level that is in compliance with the
Hotel Standards and that will cause the Hotel Project to be in a usable condition at the expiration or
termination of this Lease, and with Lessee having expended sufficient funds during the last ten (10) years
of this I.ease that will cause each Lessee Improvement to be useful and functional and code compliant.
During the Term of this Lease, Lessee shall (I) adequately and reasonably fund maintenance reserve
accounts for each Lessee Improvement on the Leased Property in amounts that arc consistent with
standard industry practice applicable to each particular Lessee Improvement, (2) periodically expend
funds from such accounts for maintenance purposes in an amount and at a time or times that are
customary and ordinary for a sound maintenance program for the Leased Property and consistent with
commercial development practices prevailing in South Florida and (3) comply at all times with the terms
set forth in the Management Agreement from time to time regarding accrual, maintenance and
expenditure of reserves, including FF&E reserves.
Section 12.6. Excavation of Land. Except in connection with the construction of the Hotel Project,
or redevelopment or reconstruction of the Hotel Project as permitted under this Lease, no excavation of
any of the land shall be made, no soil or earth shall be removed from the Leased Property, and no well of
any nature shall be dug, constructed or drilled on the Leased Property, except as may be required for
environmental monitoring purposes, without the prior written Approval by City Manager.
Section 12.7. Water and Sewerage System. The Lessee shall operate and maintain, at its
sole cost and expense, all the components of the water, sanitary sewerage and storm drainage
facilities constructed by Lessee as part of the Hotel Project within the boundaries of the Leased
Property. Once constructed, Lessee shall not make any alterations or modifications to these
facilities without the advance written Approval of the City Manager, which approval shall not be
unreasonably withheld. Such consent shall be granted if any such alterations or modifications
are required to comply with Governmental Requirements.
Section 12.8. Industrial Waste Facilities. The Lessee shall be fully responsible for all
industrial wastes on the Leased Property caused or produced by Lessee, its Subtenants or
third-parties operating on the Leased Property and the proper disposal thereof, in accordance
with applicable Governmental Requirements.
Section 12.9. Inspections. City and/or its designated representatives shall have the right,
during normal working hours, after prior reasonable notice to inspect the Leased Property and
the Lessee Improvements to identify those items of maintenance, repair, replacement,
modification and refurbishment reasonably required of Lessee to keep the Leased Property and
the Lessee Improvements in good order and condition. If Lessee has failed to fulfill its
maintenance and repair obligations under this Lease, City shall provide written notice and the
Lessee shall perform all corrective work identified in such notice within thirty (30) days of receipt
of the notice from City; provided, however that if such corrective work cannot be reasonably
accomplished within a thirty (30) day period, then the Lessee shall commence the corrective
work within that thirty (30) day period and diligently prosecute same to completion. Trash and
debris maintenance shall be corrected within two (2) Business Days following receipt of written
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notice from City. Failure of City to inspect as aforementioned shall not impose any liability on
the City. Nothing in this contractual provision relating to City's inspections shall preclude City
from making inspections of the Leased Property in accordance with City's regulatory authority.
Section 12.10. Failure of Lessee to Maintain. If Lessee has failed to properly clean, remove
trash and debris, maintain, repair, replace and refurbish the Leased Property as required by this
Article XII, the City shall provide to the Lessee a written list of deficiencies, reflecting the amount
of time to be reasonably allowed for the Lessee to correct same. If the Lessee fails to correct or
commence to correct such deficiencies within the time allowed and has not registered an
objection as to its obligation to do so, the City, at its option, may elect to correct any or all of
such deficiencies, in which case, the City shall give Lessee fifteen (15) days further written
notice of its intention to do so, and if the Lessee has not corrected or commenced to correct the
same within such additional fifteen (15) day period, the City may enter upon the Leased
Property and perform all work, which, in the reasonable judgment of the City, is necessary and
the City shall add the cost of such work, plus twenty-five percent (25%) for administrative costs,
to the Rent due hereunder on the first day of the month following the date of such work, and
such cost shall be and constitute a part of the Rent. if Lessee has not corrected or commenced
to correct such deficiencies within such additional fifteen (15) day period, the Lessee shall not
undertake performance of such repairs or cleanup without specific prior written authorization
from the City.
ARTICLE XIII
MANAGEMENT OF HOTEL
Section 13.1. Hotel Standards.
(a) Lessee covenants and agrees that it will utilize the Hotel Standards, as delineated in
Exhibit "B", to maintain and operate the Hotel, and operate or cause for the Hotel to be operated in
compliance with this Lease, Management Agreement and Governmental Requirements;
(b) Any commercial operations on the Hotel Project, whether conducted by Lessee, an
Affiliate of Lessee or any concessionaire, involving any unreasonably noisy, dangerous or obnoxious
activities or the leasing or rental of unreasonably noisy, dangerous or obnoxious equipment, shall
require the prior written approval of the City and City may withhold such approval or require the
termination of any such commercial operations then in existence on the Hotel Project in its
commercially reasonable judgment; and
(c) Lessee shall use commercially reasonable efforts to ensure that any concession,
commercial activity,or other Hotel activity shall be generally consistent with the Hotel Standards,
Section 13.2. Covenant to Continuously Operate Hotel.
(a) Subject to the need to make repairs and perform maintenance and any Force Majeure
Event in accordance herewith, after the Opening Date, Lessee shall diligently and continuously operate
(or cause to be operated)the Hotel for 365 days each year consistent with the Hotel Standards;
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(b) Subject to the need to make repairs and perform maintenance and subject to any Force
Majeure Events in accordance herewith, after the Opening Date, for each day the Hotel is not operated
continuously, the City, in addition to any other remedies available to it under this Lease,shall be entitled
to receive a rental which shall be no less per day than the average of the Base Rent payable during the
preceding three (3)full Lease Years; and
(c) Notwithstanding the foregoing, Lessee shall have the right from time-to-time
to close the Hotel or parts thereof for such commercially reasonable periods of time to make repairs,
alterations, remodeling or for any reconstruction after casualty or condemnation or any Force Majeure
Event; provided that the Lessee is using commercially reasonable diligent efforts to repair and restore
the Hotel or, as applicable,to mitigate the impact of such Force Majeure Events on its operations.
Section 13.3. Hotel Name. Lessee may enter into new Management Agreements or change the
name of"flag" of the Hotel so long as such brand or flag is an Approved Brand. In determining whether
or not to give any Approval of a brand that is not an Approved Brand, the City may consider, by way of
example and not of limitation, the public image of the proposed name or flag, its AAA or other quality
classification and whether such image is commensurate with the public image the City desires to
project. Provided that no Event of Default is then continuing, Lessee's request for approval shall be
deemed approved if(i)the first correspondence from Lessee to City requesting such approval or consent
is in an envelope marked "PRIORITY" and contains a bold-faced, conspicuous (in a font size that is not
less than fourteen (14)) legend at the top of the first page thereof stating that "FIRST NOTICE: THIS IS A
REQUEST FOR CONSENT UNDER SECTION 13.3 OF THE DEVELOPMENT AND GROUND LEASE
AGREEMENT, DATED AS OF 201_, AND FAILURE TO RESPOND TO THIS REQUEST WITHIN TWENTY
(20) DAYS MAY RESULT IN THE REQUEST BEING DEEMED GRANTED", and is accompanied by the
information and documents required above, and any other information reasonably requested by City in
writing prior to the expiration of such twenty (20) day period in order to adequately review the same
has been delivered; and (il) if City fails to respond or to deny such request for approval in writing within
the first fifteen (15) days of such twenty (20) day period, a second notice requesting approval is
delivered to City from Lessee in an envelope marked "PRIORITY" containing a bold-faced, conspicuous
(in a font size that is not less than fourteen (14)) legend at the top of the first page thereof stating that
"SECOND AND FINAL NOTICE: THIS IS A REQUEST FOR CONSENT UNDER SECTION 13.3 OF THE
DEVELOPMENT AND GROUND LEASE AGREEMENT, DATED AS OF , 201 . IF YOU FAIL TO PROVIDE
A SUBSTANTIVE RESPONSE (E.G., APPROVAL, DENIAL OR REQUEST FOR CLARIFICATION OR MORE
INFORMATION) TO THIS REQUEST FOR APPROVAL IN WRITING WITHIN FIVE (5) DAYS, YOUR APPROVAL
SHALL BE DEEMED GIVEN" and City fails to provide a substantive response to such request for approval
within such final five (5)day period.
ARTICLE XIV
MISCELLANEOUS PROVISIONS
Section 14.1. No Partnership or Joint Venture. It is mutually understood and agreed that nothing
contained in this Lease is intended or shall be construed in any manner or under any circumstances
whatsoever as creating or establishing the relationship of co-partners, or creating or establishing the
relationship of a joint venture between the City and Lessee, or as constituting Lessee as the agent or
representative of the City for any purpose or in any manner whatsoever.
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Section 14.2. Recording, Documentary Stamps. A memorandum of this Lease, in form mutually
satisfactory to the parties, may be recorded by either Party among the Public Records of Miami-Dade
County, Florida and the cost of any such recordation, the cost of any documentary stamps which legally
must be attached to any or all of said documents shall be paid in full by Lessee. The Parties shall
cooperate in structuring the transactions contemplated hereby in such a manner as to reduce such
costs, provided such structure shall not have any adverse consequence for the City.
Section 14.3. Florida and Local Laws Prevail. This Lease shall be governed by the laws of the
State of Florida. This Lease is subject to and shall comply with the City Code as the same is in existence
as of the execution of this Lease and the ordinances of the City of Miami Beach. Any conflicts between
this Lease and the City Code shall be resolved in favor of the latter. If any term, covenant, or condition of
this Lease or the application thereof to any Person or circumstances shall to any extent, be illegal,
invalid, or unenforceable because of present or future laws or any rule or regulation of any
governmental body or entity or becomes unenforceable because of judicial construction, the remaining
terms, covenants and conditions of this Lease, or application of such term, covenant or condition to
Persons or circumstances other than those as to which it is held invalid or unenforceable, shall not be
affected thereby and each term, covenant, or condition of this Lease shall be valid and be enforced to
the fullest extent permitted by law. Any dispute arising out of or relating to this Lease that specifically
provides for arbitration (and only such provisions) shall be subject to arbitration as provided herein. In
any such arbitration or in any legal action brought by either Party because of a breach of this Lease or to
enforce any provision of this Lease, the prevailing Party shall be entitled to reasonable attorneys fees
and paralegals' fees and costs, including those incurred in subsequent actions to enforce or vacate an
arbitration award and those incurred on appeal.
Section 14.4. No Conflicts of Interest/City Representatives not Individually Liable. No member,
official, representative, or employee of the City shall have any personal interest, director indirect, in this
Lease, nor shall any such member, official, representative or employee participate in any decision
relating to this Lease which affects his or her personal interest or the interest of any corporation,
partnership or association in which he or she is, directly or indirectly, interested. No member, official,
elected representative or employee of the City shall be personally liable to Lessee or any successor in
interest in the event of any default or breach by the City or for any amount which may become due to
Lessee or successor or on any obligations under the terms of this Lease.
Section 14.5. Notice. A notice or communication, under this Lease by the City, on the one hand, to
Lessee, or, on the other, by Lessee to the City shall be sufficiently given or delivered if in writing and
dispatched by hand delivery, or by nationally recognized overnight courier providing receipts, or by
registered or certified mail, postage prepaid, return receipt requested to:
(a) Lessee. In the case of a notice or communication to Lessee if addressed as follows:
To: [PROPOSER]
With Copies To:[PROPOSER]
(b) City. In the case of a notice or communication to the City, if addressed as follows:
To:
City Manager
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City of Miami Beach, Florida
1700 Convention Center Drive,4'h Floor
Miami Beach, Florida 33139
With Copies To:
City Attorney
City of Miami Beach, Florida
1700 Convention Center Drive, 4'h Floor
Miami Beach, Florida 33139
or if such notice is addressed in such other way in respect to any of the foregoing Parties as that Party
may, from time-to-time, designate in writing, dispatched as provided in this Section 14.5.
Section 14.6. Estoppel Certificates. The City and Lessee shall, within thirty (30) days after written
request by the other, execute, acknowledge and deliver to the Party which has requested the same or to
any actual or prospective First Leasehold Mortgagee, Mezzanine Lender, or purchaser of the Hotel or
any equity interest in Lessee, a certificate stating that:
(a) this Lease is in full force and effect and has not been modified, supplemented or
amended in any way, or, if there have been modifications, this Lease is in full force and effect as
modified, identifying such modification agreement, and if this Lease is not in force and effect, the
certificate shall so state;
(b) this Lease as modified represents the entire agreement between the Parties as to this
subject matter, or, if it does not, the certificate shall so state;
(c) the dates on which the Term of this Lease commenced and will terminate;
(d) to the knowledge of the certifying Party all conditions under this Lease to be performed
up to that date by the City or Lessee, as the case may be, have been performed or satisfied and, as of
the date of such certificate, there are no existing defaults, defenses or offsets which the City or Lessee,
as the case may be, has against the enforcement of this Lease by the other Party, or, if such conditions
have not been satisfied or if there are any defaults, defenses or offsets, the certificate shall so state; and
(e) the Rent due and payable for the year in which such certificate is delivered has been
paid in full, or, if it has not been paid,the certificate shall so state.
The Party to whom any such certificate shall be issued may rely on the matters therein set forth;
however, in delivering such certificate neither Lessee nor the City (nor any individual signing such
certificate on such Party's behalf) shall be liable for the accuracy of the statements made therein, but
rather shall be estopped from denying the veracity or accuracy of the same. Any certificate required to
be made by the City or Lessee pursuant to this paragraph shall be deemed to have been made by the
City or Lessee (as the case may be) and not by the person signing same.
Section 14.7. Provisions not Merged with Deed. Unless otherwise expressed in the instrument of
conveyance or transfer, none of the provisions of this Lease are intended to or shall be merged by
reason of any deed:
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(a) transferring the Hotel Project or any part thereof from Lessee (or its successors or
assigns)to the City (or its successors or assigns); or
(b) transferring title to the Leased Property or any part thereof from the City to Lessee, its
successors or assigns. Any such deed shall not be deemed to affect or impair the provisions and
covenants of this Lease.
Notwithstanding anything to the contrary contained herein, so long as there is a First Leasehold
Mortgagee, the City and Lessee agree that the City shall not transfer any fee interest in the Leased
Property to Lessee without such First Leasehold Mortgagee's prior written consent.
Section 14.8. Titles of Articles and Sections. Any titles of the several parts, Articles and Sections
of this Lease are inserted for convenience of reference only and shall be disregarded in construing or
interpreting any of its provisions.
Section 14.9. Counterparts. This Lease may be executed in counterparts, each of which shall be
deemed an original. Any such counterparts shall constitute one and the same instrument. This Lease
shall become effective only upon execution and delivery of this Lease by the Parties hereto.
Section 14.10. Successors and Assigns; No Third Party Beneficiaries. Except to the
extent limited elsewhere in this Lease, all of the covenants conditions and obligations contained in this
Lease shall be binding upon and inure to the benefit of the respective successors and assigns of the City
and Lessee. Lessee and the City acknowledge and agree that except for a First Leasehold Mortgagee or
a Mezzanine Lender, if any, each of which shall have the rights set forth in Article VI hereof, no third
party shall have any rights or claims arising hereunder, nor is it intended that any third party shall be a
third party beneficiary of any provisions hereof.
Section 14.11. Entire Agreement. This Lease and its Exhibits constitute the sole and only
agreement of the Parties hereto with respect to the subject matter hereof and correctly set forth the
rights, duties, and obligations of each to the other as of its date. Any prior agreements, promises,
negotiations, or representations not expressly set forth in this Lease are of no force or effect and are
merged into this Lease.
Section 14.12. Amendments. No amendments to this Lease shall be binding on either Party
unless in writing and signed by both Parties. Solely to the limited extent as may be necessary to
reasonably facilitate lender financing for the Hotel Project, the City Manager shall have the delegated
authority (but not the obligation), after consultation with the City's Chief Financial Officer and City
Attorney, to negotiate and execute modifications to Article 9, Article 10, Sections 6.1(a)(vi) through
6.1(a)(ix), and Sections 6.1(b) through 6.1(k) of this Lease; and to negotiate and execute the easements
contemplated pursuant to Section 4.1(g) of this Lease. All other amendments must be approved by
majority vote of the City Commission, subject to the requirements of the City Charter and applicable
law, except that the provisions of Sections 4.2(b), 4.2(g), 4.5(a) through (e), and Section Al. of Exhibit
"A" hereto may not he modified except by approval of such modifications by at least sixty percent (60%)
of the voters voting thereon in a City-wide referendum, in the same manner as required for approval of
the initial Lease pursuant to Section 1.03(b)(3) of the City Charter, and the Base Rent and Minimum
Fixed Rent set forth in Section 4.4(a) may not be modified except by approval of such modification by at
least sixty percent (60%) of the voters voting thereon in a City-wide referendum, in the same manner as
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required for approval of the initial Lease pursuant to Section 1.03(6)(3) of the City Charter.The City shall
not be obligated to expend any money or undertake any obligation connected with any such
amendment proposed by Lessee, or otherwise connected with any action requested by or for the
benefit of Lessee under this Lease, and shall be reimbursed by Lessee for all out of pocket expenses
(including third party consultants and attorneys) incurred by the City. Prior to the City taking action
regarding any such request, Lessee shall deposit with the City the estimated amount of such costs, as
reasonably determined by the City.
Section 14.13. Non-Subordination of City's Interest. The City's fee interest in and ownership
of the Leased Property and the City's rights and interest in this Lease (including the rights to Rent, Public
Charges and other monetary obligations of Lessee to the City under this Lease) shall not be subject or
subordinate to or encumbered by any financing for the Hotel Project or lien or encumbrances affecting
Lessee's interest in this Lease or Lessee Improvements or by any acts or omissions of Lessee or any
Subtenant hereunder. In this regard, the Rent, Additional Rent, Public Charges and other monetary
obligations of Lessee to the City under this Lease then payable at any point in time during the Term shall
be paid by Lessee to the City and shall be superior in right to all claims or rights hereunder or described
above in this Section, including all Hotel Project operating expenses, the payment of debt service, and
any distributions of profits to Lessee or any of its Affiliates or owners.
Section 14.14. City Manager's Delegated Authority. Notwithstanding any provision to the
contrary in this Lease, nothing herein shall preclude the City Manager from seeking direction from or
electing to have the City Commission determine any matter arising out of or related to this Lease,
including, without limitation, any Approval contemplated under this Lease (within the timeframe
specified therefor as if the Approval was being determined by the City Manager), any proposed
amendment or modification to this Lease or any separate agreement relating to the Hotel Project or
otherwise referenced in this Lease.
Section 14.15. Holidays. It is hereby agreed that whenever a notice or performance under the
terms of this Lease is to be made or given on a Saturday or Sunday or on a legal holiday recognized by
the City, it shall be postponed to the next following Business Day, not a Saturday, Sunday or legal
holiday.
Section 14.16. No Brokers. Lessee shall be responsible for, and shall hold the City harmless with
respect to, the payment of any commission claimed by or owed to any real estate broker or other
Person retained by Lessee and which is entitled to a commission as a result of the execution and delivery
of this Lease. The City similarly shall be responsible for, and shall hold Lessee harmless with respect to,
the payment of any commission claimed by or owed to any real estate broker or other Person retained
by the City and which is entitled to a commission as a result of the execution and delivery of this Lease.
Section 14.17. No Liability for Approvals and Inspections. Except as may be otherwise
expressly provided herein, no approval to be made by the City in its capacity as landlord under this Lease
or any inspection of the Work or the Hotel Project by the City under this Lease, shall render the City
liable for its failure to discover any defects or nonconformance with any Governmental Requirement.
Section 14.18. Radon. 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
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Florida. Additional information regarding radon and radon testing may be obtained from the county
public health unit for Miami-Dade County.
Section 14.19. Lessee Entity. On the date of execution hereof, Lessee is a limited liability
company. In the event that at any time during the Term of this Lease and any extensions and renewals
thereof, Lessee is a corporation or an entity other than a limited liability company, then any references
herein to member, membership interest, manager and the like which are applicable to a limited liability
company shall mean and be changed to the equivalent designation of such term which is appropriate to
the nature of the new Lessee entity.[CITY TO MODIFY BASED ON SUCCESSFUL PROPOSER'S
CORPORATE ENTITY STATUS]
Section 14.20. Inflation Adjustments. All adjustments for inflation required under this Lease
shall be calculated utilizing the United States Bureau of Labor Statistics, Consumer Price Index for All
Urban Consumers; U.S. City average (1982-84=100). If the United States Department of Labor should no
longer compile and publish this index, the most similar index compiled and published by said
Department or any other branch or department of the federal government shall be used for the purpose
of computing the inflation adjustments provided for in this Lease. If no such index is compiled or
published by any branch or department of the federal government, the statistics reflecting cost of living
increases as compiled by any institution or organization or individual designated by the City and
generally recognized as an authority by financial or insurance institutions shall be used as a basis for
such adjustments.
Section 14.21. Standard of Conduct. The implied covenant of good faith and fair dealing under
Florida law is expressly adopted.
Section 14.22. Waiver of Consequential Damages. Notwithstanding anything contained in
this Lease to the contrary, in no event shall either Party be liable to the other for any consequential,
exemplary or punitive damages.
Section 14.23. Reservation of Rights. This Lease shall not affect any rights that may have
accrued to any Party to this Lease under applicable laws and each Party hereto reserves any and all of
such rights.
[signature pages to follow]
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IN WITNESS WHEREOF, Lessee has caused this Lease to be signed in its name, and the City of
Miami Beach has caused this Lease to be signed in its name by the Mayor, and duly attested to by the
City Clerk, and approved as to form and sufficiency by the City Attorney, on the day and year first above
written.
WITNESSED BY: CITY OF MIAMI BEACH. FLORIDA
Print Name:
By:
Print Name: Dan Gelber
Mayor
Approved for form and legal sufficiency
ATTEST
By:
City Attorney
By:
City Clerk
STATE OF FLORIDA
COUNTY OF MIAMI-DADE
The foregoing instrument was acknowledged before me this day of , 201 , by
as of
Who is personally known to me or who produced as identification.
Notary Public
Commission Number:
Commission Expires:
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Page 1559 of 1842
LESSEE
Print Name: By:
]PROPOSER]
Print Name:
STATE OF FLORIDA
COUNTY OF MIAMI-DADE
The foregoing instrument was acknowledged before me this_day of , 201_, by
, as of
Who is personally known to me or who produced as identification.
Notary Public
Commission Number:
Commission Expires:
STATE OF FLORIDA
COUNTY OF MIAMI-DADE
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EXHIBIT"A"
ACCEPTABLE OWNER DEFINITION
A. "Acceptable Owner" means any individual, corporation or other entity which has, at a
minimum, the following qualifications:
1. Neither the proposed transferee nor any Persons with an ownership interest in
the proposed transferee shall, directly or indirectly, own, operate or manage a Gaming Establishment in
Miami-Dade County, Florida; provided, however, that the foregoing restriction shall not prevent a
proposed transferee who otherwise qualifies as an Acceptable Owner from so qualifying if all Persons
owning or Controlling such proposed transferee, own or control in the aggregate five percent (5%) or
less of the voting securities of any owner, operator or manager of a Gaming Establishment in Miami-
Dade County, Florida.
2. The proposed transferee is not a Foreign Instrumentality other than a member
country of the European Union or the Gulf Cooperation Council, each as existing on the Effective Date,
Canada, Mexico, countries located in South America, Japan, South Korea, Singapore and Australia, or a
Person Controlled by any of the foregoing countries.
3. The proposed transferee must not be owned, or Controlled by entities or
individuals who have been convicted, or are presently under indictment, for felonies under the laws of
any foreign or United States of America jurisdiction. But the foregoing shall not apply to individuals or
entities owning less than a ten percent (10%) equity interest in the proposed transferee, other than
officers, directors, managers or others who have the power to direct and control the business and affairs
of the proposed transferee.
4. The proposed transferee must not in its charter or organizational documents
(defined as the articles of incorporation and bylaws for any corporation, the partnership agreement and
partnership certificate for any partnership, the articles of organization and limited liability company
operating agreement for any limited liability company, the trust agreement for any trust and the
constitution of the relevant government for any governmental entity, but expressly excluding any
statements, positions, actions or allegations not contained in such charter organizational documents)
expressly advocate or have as its stated purpose: (a) the violent overthrow of or armed resistance
against, the U.S. government; or (b) genocide or violence against any persons; or (c) discrimination,
hatred or animosity toward persons based solely on their race, creed, color, sex or national origin.
5. A proposed transferee of the entire Hotel Project or of a direct or indirect
Controlling ownership interest in Lessee (each, a "Proposed Major Transferee"), or an Affiliate of such
Proposed Major Transferee Controlling such Proposed Major Transferee or Person with an ownership
interest in such Proposed Major Transferee Controlling such Proposed Major Transferee, must be a
Person that generally invests in commercial real estate projects and has sufficient financial resources,
including access to debt financing, as may be necessary to conclude the proposed acquisition and to
perform the obligations of Lessee in accordance with this Lease (or if a transfer of a direct or indirect
Controlling ownership in Lessee, that Lessee has such financial resources), in a manner consistent with
the Hotel Standards.
Page 1561 of 1842
6. A Proposed Major Transferee shall have no outstanding material violations of
any applicable law against such Proposed Major Transferee, or any hotel or other property owned or
managed by such Proposed Major Transferee, within Florida, which have remained uncured for more
than ninety (90) days after such Proposed Major Transferee has knowledge of such violation unless such
violation is being contested in good faith so long as the Proposed Major Transferee is able to continue
operating such hotel or other property while such matter is being contested. A material violation of
applicable law means that the Proposed Major Transferee would be subject to any of the following if
found guilty of such violation, or if such violation remains uncured after any applicable period for curing
such violation in the statutory or regulatory scheme describing such violation: (i) prohibition from
continuing to operate such hotel or other property for any period of time, (ii) loss of such hotel or other
property, or (iii) a penalty in excess of $3 million (adjusted annually for inflation pursuant to Section
14.20 hereof).
7. A Proposed Major Transferee must not (nor any of the individuals or entities
who own at least a ten percent (10%) equity interest in such Proposed Major Transferee or are officers,
directors, managers or otherwise have the power to direct and control the business and affairs of such
Proposed Major Transferee) have filed or been discharged from bankruptcy, or have been the subject of
an involuntary bankruptcy, reorganization or insolvency proceedings within the past five (5) years
(bankruptcy filings by Affiliates shall not disqualify a Proposed Major Transferee, unless such Affiliates
are any of the individuals or entities described in the parenthetical immediately above).
B. "Acceptable Owner Criteria": The foregoing seven (7) categories of requirements set
forth in paragraph A above are collectively defined as the "Acceptable Owner Criteria."
C. Evaluation of the Acceptable Owner Criteria:
Solely for the purpose of evaluating whether the proposed transferee has met the seven (7) criteria set
forth above, the proposed transferee shall provide the following information to the Lessee and certify
that the information provided by the proposed transferee is true and correct and that the proposed
transferee meets or exceeds the Acceptable Owner Criteria:
1. solely with respect to a Proposed Major Transferee, information sufficient for
the City or any outside vendor engaged by the City to perform a due diligence investigation pursuant to
paragraph D below, including copies of any applicable operating licenses;
2. solely with respect to a Proposed Major Transferee, certified financial
statements reflecting such Proposed Major Transferee's financial ability to meet the obligations and
requirements of Lessee under this Lease;
3. solely with respect to a Proposed Major Transferee, a list of four (4) persons or
firms with whom the principals of such Proposed Major Transferee have conducted business
transactions during the past three (3)years. At least two(2)of those references must have knowledge of
such Proposed Major Transferee's debt payment history;
4. solely with respect to a Proposed Major Transferee, identification of the hotels
owned or managed by such Proposed Major Transferee or its Affiliates or principals;
Page 1562 of 1842
5. solely with respect to a Proposed Major Transferee, the resume of such
Proposed Major Transferee, senior executives, and other key employees thereof, including identification
of and duration, of hotel ownership experience;
6. solely with respect to a Proposed Major Transferee, a list of all bankruptcies
filed by such Proposed Major Transferee or to which such Proposed Major Transferee was a party-
bankrupt, if any;
7. a list of all pending litigation, liens or claims in which the proposed transferee is
currently involved which are not covered by insurance and which, if adversely determined would exceed
the amount of$250,000(as adjusted for inflation over the Term pursuant to Section 14.20 hereof); and
8. such other evidence as is commercially reasonably necessary to establish that
the new entity proposed to be the Acceptable Owner meets the Acceptable Owner Criteria.
D. With respect to any proposed Transfer to a Proposed Major Transferee, City may, at its
sole discretion, engage an outside vendor to perform a due diligence investigation at the Lessee's or
such Proposed Major Transferee's sole expense, which may include a search of civil, criminal, or
bankruptcy proceedings in federal and state jurisdictions; regulatory filings; tax filings; lien, judgment
and Uniform Commercial Code searches; business registrations, and the like. City shall be entitled to
engage an independent accounting firm, the reasonable costs of which shall be borne by Lessee or such
Proposed Major Transferee, to review the information upon which the Proposed Major Transferee's
certifications were based, for the purpose of determining whether the certifications and/or information
provided to the City is accurate and complete. Lessee shall, or shall cause such Proposed Major
Transferee to, reimburse City, upon demand, for any reasonable costs incurred by City in connection
with such Transfer or proposed Transfer to a Proposed Major Transferee, including the reasonable out-
of-pocket costs of making inquiries and investigations into the conformance with the Acceptable Owner
Criteria of such Proposed Major Transferee and the reasonable legal costs incurred, if any, in connection
therewith.
E. Confirmation/Approval Process for Proposed Transferees:
Regarding the City's confirmation that a proposed transferee is an Acceptable Owner, or the City's
approval of a Transfer that is not a Permitted Transfer,the parties hereby agree that:
1. The City Manager shall rely solely on the proposed transferee's certification that
the proposed transferee meets the Acceptable Owner Criteria (if a Permitted Transfer), along with the
information provided by the proposed transferee and with respect to any Proposed Major Transferee,
the results of any due diligence investigation performed by the City.
2. The City Manager shall not unreasonably withhold the City's confirmation if the
proposed transferee complies with the Acceptable Owner Criteria.
3. The City Manager shall not unreasonably withhold the City's Approval of a
Transfer that is not a Permitted Transfer, except that with respect to a Transfer to a Foreign
Instrumentality (other than a member country of the European Union or the Gulf Cooperation Council,
each as existing on the Effective Date, Canada, Mexico, countries located in South America (excluding
Page 1563 of 1842
•
Venezuela), Japan, South Korea, Singapore and Australia or Persons Controlled by any of the foregoing
countries), such Transfer shall be subject to the prior written approval of the City Commission, which
may be granted, conditioned or withheld by the City Commission in its sole discretion; and
4. If a proposed Transfer requires the City's confirmation or Approval, Lessee shall
deliver written notice to the City, which shall include (0 the name and address of the proposed
transferee; (ii) the name and address of the proposed transferor; (iii) information describing the nature
of the transaction; (iv) the percentage interest being conveyed; and (iv) the materials described in
paragraph C above.
5. The City Manager shall have up to forty-five (45) days after the delivery of such
written notice and the information required under paragraph C above, to determine whether, on a
commercially reasonable basis, the proposed transferee meets the Acceptable Owner Criteria if a
Permitted Transfer,or to Approve in accordance herewith a Transfer if not a Permitted Transfer.
6. Provided that no Event of Default is then continuing, Lessee's request for
confirmation or Approval shall be deemed confirmed or Approved if (i) the first correspondence from
Lessee to the City requesting such confirmation or Approval is in an envelope marked "PRIORITY" and
contains a bold-faced, conspicuous (in a font size that is not less than fourteen (14)) legend at the top of
the first page thereof stating that "FIRST NOTICE:THIS IS A REQUEST FOR CONFIRMATION OR APPROVAL
UNDER SECTION 5.4 OF THE DEVELOPMENT AND GROUND LEASE AGREEMENT, DATED AS OF
2015, AND FAILURE TO RESPOND TO THIS REQUEST WITHIN FORTY-FIVE (45) DAYS MAY RESULT IN THE
REQUEST BEING DEEMED GRANTED", and is accompanied by the information and documents required
above, and any other information reasonably requested by City in writing prior to the expiration of such
forty-five (45) day period in order to adequately review the same has been delivered; and (ii) if City fails
to respond or to deny such request for confirmation or Approval in writing within the first thirty (30)
days of such forty-five (45) day period, a second notice requesting confirmation or Approval is delivered
to City from Lessee in an envelope marked "PRIORITY" containing a bold-faced, conspicuous (in a font
size that is not less than fourteen (14)) legend at the top of the first page thereof stating that "SECOND
AND FINAL NOTICE THIS ISA REQUEST FOR CONFIRMATION OR APPROVAL UNDER SECTION 5.4 OF THE
DEVELOPMENT AND GROUND LEASE AGREEMENT, DATED AS OF , 2015. IF YOU FAIL TO PROVIDE
A SUBSTANTIVE RESPONSE (E.G., CONFIRMATION, APPROVAL, DENIAL OR REQUEST FOR CLARIFICATION
OR MORE INFORMATION) TO THIS REQUEST FOR CONFIRMATION OR APPROVAL IN WRITING WITHIN
FIFTEEN (15) DAYS, YOUR CONFIRMATION OR APPROVAL SHALL BE DEEMED GIVEN" and City fails to
provide a substantive response to such request for confirmation or Approval within such final fifteen
(15) day period. Any Transfer shall be subject to the deemed Approval provisions set forth above in this
subparagraph E.6, provided, however,that the City Commission shah have sixty (60) days after receipt of
written notice from Lessee of any proposed Transfer to a Foreign Instrumentality (other than a member
country of the European Union or the Gulf Cooperation Council, each as existing on the Effective Date,
Canada, Mexico, countries located in South America (excluding Venezuela), Japan, South Korea,
Singapore and Australia or Persons Controlled by any of the foregoing countries), to approve or
disapprove of such proposed Transfer, and if the City has not notified Lessee, in writing, of the City
Commission's approval of such Transfer within such sixty (60) day period, then such Transfer shall be
deemed approved.
7. If the City notifies Lessee, in writing, within such forty-five (45)-day period, that
the information submitted is, on a commercially reasonable basis, incomplete or insufficient (and
specifies in what ways it is incomplete or insufficient), then Lessee shall supplement such information,
Page 1564 of 1842
on a commercially reasonable basis, and the City Manager (or City Commission, with respect to
Transfers to Foreign Instrumentalities requiring City Commission approval) shall have twenty (20) days
after such supplemental information is provided to make its determination whether the proposed
transferee meets the Acceptable Owner Criteria or to Approve a Transfer that is not a Permitted
Transfer.
8. If the City Manager does not confirm that the proposed transferee does not
meet the Acceptable Owner Criteria or disapproves a Transfer that is not a Permitted Transfer, the City
Manager shall provide to Lessee specific written, commercially reasonable reasons for such action. The
failure to object to the proposed transferee or Transfer within either of the two time periods set forth
above shall be deemed to be the confirmation by the City of the proposed transferee as an Acceptable
Owner or Approval of the proposed Transfer, except with respect to a proposed Transfer to a Foreign
Instrumentality (other than a member country of the European Union or the Gulf Cooperation Council,
each as existing on the Effective Date, Canada, Mexico, countries located in South America (excluding
Venezuela), Japan, South Korea, Singapore and Australia or Persons Controlled by any of the foregoing
countries), which the City Commission must expressly approve in writing, as provided above, in order for
such Transfer to be effective.
9. Any entity approved as an Acceptable Owner must meet the Acceptable Owner
Criteria set forth in subparagraphs A.1., A.3. and A.4. above throughout its service as an Acceptable
Owner hereunder,subject to notice and cure rights as provided in the Lease.
10. No confirmation by the City of a proposed transferee as an Acceptable Owner or
its meeting of the Acceptable Owner Criteria shall have the effect of waiving or estopping the City from
later claiming that said Acceptable Owner is no longer operating or maintaining the Hotel Project
according to the terms of this Lease.
F. Interpretation:
1. All acts and omissions as well as rights and duties shall be done in a
commercially reasonable manner, unless the standard of"sole discretion' is used.
2. The implied covenant of good faith and fair dealing under Florida law is
expressly adopted.
Page 1565 of 1842
EXHIBIT"B"
HOTEL STANDARDS DEFINITION
The Lessee shall operate the Hotel, or cause for the Hotel to be operated, so that (with the
requirements in paragraphs A, B and C being the "Hotel Standards"):
A. it meets a sufficient number of the standards then required to be able to obtain a four-
diamond rating from the American Automobile Association ("AAA"); or
B. if at any time during the Term of this Lease either such rating system is discontinued or
the standards for such rating system is materially changed, the Parties shall mutually and reasonably
agree to substitute an alternate rating system that is most nearly equivalent to the discontinued or
changed rating system.
C. Notwithstanding the foregoing, Lessee shall be deemed to have satisfied the Hotel
Standards as long as it is operating the Hotel Project (or causing the Hotel Project to be operated) in a
manner substantially similar to the operation of the following convention center hotels as of the
Effective Date: Hilton Americas-Houston, Hilton Orlando, Marriott Marquis Washington DC, San
Francisco Marriott Marquis, Hyatt Regency Orlando, Hyatt Regency Denver at the Colorado Convention
Center, The Westin Charlotte, and the Sheraton Chicago Hotel and Towers and the Loews Miami Beach
or any convention center hotel of a similar size and purpose as the Hotel operated by an Approved
Brand.
The Lessee does not have to actually obtain the AAA four-diamond or equivalent rating. But, it
must be able to meet the standards for obtaining it.
If the Lessee elects, in its sole discretion, not to obtain that rating, the City shall have the right
once every thirty-six (36) months to require the Lessee to retain a hotel consultant proficient in the AAA
Diamond ratings and with at least ten (10) years' experience in the hotel industry to produce a report
within sixty (60) days of the City's request that states the Hotel does or does not meet the Hotel
Standards.
The City has the right to accept or reject the report. If it rejects the report, the City shall retain
its own hotel consultant proficient in the AAA Diamond ratings who shall also have at least ten (10)
years' experience in the hotel industry. That consultant shall produce a report at any time explaining in
commercially reasonable detail why the report by the Lessee's hotel consultant is or is not correct.
After the City's hotel consultant's report is delivered to the Lessee, the City and Lessee shall not
take any formal action for thirty (30) days. They may elect to discuss or mediate the matter during that
period of thirty (30) days.
At the end of that period of time, if the City does not agree that the Hotel is being operated in
accordance with the Hotel Standards, then the matter may be resolved in accordance with Section 7.8,
using a mediator with substantial experience in the hotel industry.
Page 1566 of 1842
In the event of a determination that the Hotel Standards are not being met, Lessee shall have six
(6) months within which to take the necessary action to cause the Hotel to be operated in accordance
with the Hotel Standards.
Page 1567 of 1842
EXHIBIT "C'
BUDGETED IMPROVEMENT COSTS
Hotel Project Costs
Soft Costs
Design Architect $
Landscape Architect S
Other Architectural S
Traffic Engineer S
Civil Engineer S
Misc. Consultants S
Legal and Administrative
Real Estate Taxes S
Developers Fee S
Building Permits $
Insurance - Builders Risk $
Pre-Opening Expense $
Working capital $
Sewer/Water Hook Up $
Art in Public Places S
Other S
Soft Cost Contingency S
Total Soft Cost S
Financing
Loan/Equity fees $
Construction Period Interest $
Operating Interest Reserve $
Construction Costs
Construction Cost Hotel $
Skybridge $
Construction Contingency $
Payment & Performance Bonds S
FF&E S
OS&E $
Total Construction Cost
Total Project Costs $
Page 1568 of 1842
EXHIBIT "D"
LEGAL DESCRIPTION OF HOTEL SITE
See REP Appendix F or G,as applicable
Page 1569 of 1842
Page 1570 of 1842
EXHIBIT "E"
APPROVED PLANS
(see attached pages)
Page 1571 of 1842
EXHIBIT"F"
SCHEDULE OF PERFORMANCE
[INSERT SUCCESSFUL PROPOSER'S SCHEDULE'
(See next page)
Page 1572 of 1842
EXHIBIT"G"
FORM OF EASEMENTS
GRANT OF EASEMENT .AND AGREEMENT
TIIIS (,RANT Ol LASE,MLN 1 AND AGREEMENT phis "Easement") k made this day of
, 20 . by the CITY OF MIAMI RI-A(11, a Florida municipal corporation (die Tip"), busing
its principal place of heatless at 1700 C'onvcation Center Drive, Miami Beach, Florida 33139 n lasor of
(PROPOSER} I' Lessee-),having its prinsipid place of business at
WILE BLAS. the City owns that certain property situated. lying and being in Miami-Dude
County, Florida. as more particularly described in Exhibit "A" attached hereto (the Propelty"):
WIII REAS. the Cinand the Lessee entered into that certain Des elopment and Ground Lease
Agreement dated as of . 20 . a memorand tan of w hieh is recorded in Official Records
13ook . at Page of the Public Records of Miami-Dade Counts (the "Dccclopmcnt and
Ground Lease AUILLmero"), which eonstilwes a dee elopment agreement pursuant to the Florida Local
Government Development Act. Section IO3.3221). et seq.. Florida Statutes (the "Act') and which
contemplates the development and ground lease of the portion of the Properly depicted in Lshibit "Ii''(the
"Leased Proper}' ) for an 800-room Rill-service cont enfion hotel and related Iacilities to be connected to
the Miami Beach Convention Center located at 1901 Convention Center Drize Miami Reach, Florida
("Convention Cense(') by un enclosed overhead pedestrian skybridge (the"I lotel Project"):
WHEREAS. pursuant to the Dc elopinent and Ground Least: Agreement. the City has agreed to
grant to the Lessee a mink:whisk e access easement for the purpose of ingress and egress through, over,
on, upon and across the right-of-way which is more particularly described in Exhibit 'IC attached hereto
("Easement Parcel I") for the purpose of permitting Lessee to access the Leased Properly including.
without limitation. its parking. loading docks and'or service areas, and rescn-ing luno City and its
contractors, agents, employees. invitees and licensees (collectively, the 'City Parties") the right to ingress
and egress through, over. on, upon and across the Easement Parcel I for all purposes. including but not
limited to providing pedestrian and vehicular access to the Cone cation Center and 'I he Fillmore Theater
located at 1700 Washington Avenue, Miami Beach. Florida ("Fillmore Theater'). and iheir respeelise
loading docks and service areas:
WHEREAS, pursuant to the Development and Ground Lease Agreement, the Cly Inas agreed to
grant to the Lessee a non-exclusive access easement over the area more fully described in Exhibit t-
hereto ('Easement Parcel 2-), for the purpose of permitting Lessee to construct the Skybridge and the Off-
Site
CGSite Improvements, as those terms are more particularly described in the Development and Ground Lease
Aufvement, and to maintain the Skybridge in accordance with the Development and Ground Lease
Agreement) and
WIIEREAS. collectively, Easement Parcel 1 and Easement Parcel 2 shall be referred to herein as
the"Easement Parcels'-:
WHEREAS. granting the foregoing easements is a condition of the effectiveness of the
Development and Ground Lease Agreement and the issuance of development permits and approvals in
order to develop the Hotel Project:
Page 1573 of 1842
MM THEREFORE. in consideration of Ten and No I00 Dollars (SI0 00) and other good and
valuable consideration, the receipt and_sufficiency of which is hereby acknowledged. the Cit and Lessee
agree us tallows
File City hereby grants to the Lessee a non-exclusive access easement through. over on. upon
and across Easement Parcel I for the purpose of ingress and egress to and from the Leased Property
and its parking. loading docks anchor scrsicc areae, for so long as Lessee uses the Leased Property in
accordance with the terms of tIIe Development and Ground Lease ,Agreement. rho City hereby
expressly reserves Mr itself, the other City Parties and then respective successors ingot assigns_ the
unrestricted right to use Easement Parcel I for purposes of pros icing pedestrian and s ChIcular access to
the Com ention Center and the 1-iiimore Theater, and their respective loading docks and ser-ice areas
and for an and all other purposes that do not unreasonably interfere with the Lessee's use of Lasement
Parcel I for die rights granted herein. including but not limited to granting other casements or hecuses at
the same location. The City shall be responsible or the maintenance and operation of Easement Parcel I
at the ( MN sole cost and expense_
2.The City hereby grants Lessee a non-exclusive access easement over. on. under. upon, and
across Easement Parcel 2 to perform all acts necessary to ensure fulfillment of all requirements of
[insert permit or order no.] with respect to the construction of the Skybridge and or CIT-Site
!inane cmcias referenced in the Development and Ground Lease Agreement and as reasonably
necessary to maintain the Skybridge in accordance with Lessee's obligations under the Development and
Ground nase Agreement. The City herehy expressly reserves for itself, the other City Patties and their
respective urecessors andjor assigns. the unrestricted right to use the Easement Parcel 2 for any and all
other purposes that do not unreasonably interfere with the Lessee's use of Easement Parcel 2 for the
rights granted herein, including but not limited to granting other easements or licenses at the same
location.
3.The Easement Parcels arc subject to all liens, encumbrances. covenants. conditions,
restrictions, reser at ions, contracts, leases and licenses, easements, and rights of way pertaining to the
Property, whether or not of record, as identified on Exhibit "L' hereto (the "Encumbrances]. The use
of the word "grant' shall not imply any warranty on the part of the City with respect to the Easement
Parcels.
4.The Lessee shall maintain insurance on the Easement Parcels at all times as required by the
Dcvelopnrent and (ironnd Lease Agreement. Such insurance policy shall name the City as an additional
insured and loss payee (with respect to property coverage) thereunder; shall be written by insurance
companies licensed to do business in Florida and with an AM Best rating of A- or better; and must
specify it is not subject to cancellation or non-renewal without a minimum of 30 days notification by the
insurer to the City with a copy to the attention of Risk Manager, 1700 Convention Center Drive. Miami
Beach, Florida 33139 ("Risk Manager"), with a minimum of 10 days notification by the insurer to the
City and the City's Risk Manager prior to cancellation or non-renewal for non-payment of premium.
The Lessee shall provide the City with a certificate of insurance evidencing said coverages.
5.City covenants. warrants and represents that it is the fee simple owner of the Leased Property
and Easement Parcels, and has the right, title, and capacity to grant the easements granted herein, subject
only to the Encumbrances.
Page 1574 of 1842
6.Lessee shall not materially interfere with the use by and operation and activities of Ctv Parties
on the Easement Parcels. and Lessee shall use such routes and follow such procedures on the Easement
Parcels as result in the least damage and inconvenience to C ity and its invitees, agents, employees,
quests, lessees and licensees.
7.Lessee shall be responsible for any damage to the Property or aoy property of third parties
resulting from the exercise or use of the Easement Parcels by the Lessee or its contractors. agents.
officers, members, employees, invitees or licensees (collectively. the Lessee Parties'). including but not
limited to soil erosion, subsidence or damage resulting there fro in. Lessee shall promptly repair and
restore to Its original condition any of the Property that may be altered. damaged or destroyed in
connection with the exercise or use of the Easement Parcels by the Lessee Parties. This Easement is
made on the express condition that City is to he free from all liability by reason of injury or death to
persons or injury to property from whatever cause arising out of ally of the Lessee Parties' exercise or
use of the Easement Parcels, including any liability for injury or death to the person or property of any of
the Lessee Parties or to any property under the control or custody of any of the Lessee Parties. Lessee
hereby covenants and agrees to defend and indemnify the City Parties and save them harmless from any
and all liability, loss, costs, or obligations on account of, or arising out of, any such injury or losses
caused or claimed to be caused by the exercise or use of the Basement Parcels by the Lessee Panics,
however occurring, except to the extent caused solely by the willful or grossly negligent acts or
omis's'ions of City or the City Parties.
8.This Easement shall inure to the benefit of and he binding upon the heirs, legal
representatives, successors and assigns of the City and Lessee, as applicable.
9.Lessee alone shall pay any and all taxes, charges or use fee(s) levied by any governmental
agency against Lessee's interest in the Easement Parcels. Lessee shall not cause liens of any kind to be
placed against the Easement Parcels or any of the Property except in connection with a Leasehold
Mortgage.
10. Any notices required or permitted to be given under this Easement shall be in writing
and shall be deemed to have been given if delivered by hand, sent by recognized overnight courier(such
as Federal Express) or mailed by certified or registered mail, return receipt requested, in a postage
prepaid envelope,and addressed as follows:
If to the City at: City of Miami Reach. City I hall
1700 Convention Center Drive
Miami Beach, Florida 3313
Attn: City Manager. City Attorney
With a copy to'.
I f to Lessee at:
do
Attn:
Page 1575 of 1842
With a copy to:
Notices personally delivered or sent by osernight courier shall he deemed given on the date of
delivery and notices mailed in accordance with the foregoing shall he deemed given five (5) days after
deposit in the U.S. mails. The terms of this Section shall survive the termination of this Easement.
11. Construction.
a. This Easement shall be construed and governed in accordance with the Incas of the State
of Florida. All of the parties to this Easement have participated fully in the negotiation and preparation
hereof; and, accordingly, this Easement shall not he more strictly construed against any one of the parties
hereto,
b. In construing this Easement, the use of any gender shall include every other and all
genders, and captions and section and paragraph headings shall be disregarded.
c. All of the exhibits altadied to this Easement are incorporated ill, and made a part oh this
Easement.
d. The recitals to this Easement set forth above are true and correct and arc incorporated
herein by this reference.
e. The dominant estate is intended to be appurtenant to the Development and Ground Lease
Agreement and is co-terminus with the Lessee's rights thereunder.
12. Severability. In the event any term or provision of this Easement he determined by
appropriate judicial authority to be illegal or otherwise invalid, such provision shall be given its nearest
legal meaning or construed as deleted as such authority determines, and the remainder of this Easement
shall be construed to be in Bill force and effect.
13. Time of Essence. Time shall he of the essence for each and every provision hereof.
14. Entire Agreement. This Easement, together with the documents referenced herein.
constitute the entire agreement and understanding among the parties with respect to the subject matter
hereof, and there are no other agreements, representations or warranties other than as set forth herein.
This Easement may not he changed,altered or modi tied except by all instrument in writing signed by the
party against sehons en I'oreement of such change would be sought.
Page 1576 of 1842
IN W ITN ESS WHEREOF. the undersigned ms caused this Easement to he executed by
execution of this instrument as of this day of .201
(Signature pages to fol log1
Page 1577 of 1842
Witnesses: CITY OF MIAMI BEACH, FLORIDA.
a municipal corporation
Sign Name. By:
Mayor
Print Name:
Sign Name _
Print Name:
ATTEST:
City Clerk
STATE OF FLORIDA
) S5:
COUNTY OF DADE
The foregoing instrument was acknowledged before me this day of
20 by , as of . He is
personally known to me or has produced as identification and who did
(did not) take an oath.
NOTARY PUBLIC
Typed or Printed Name of Notary
My Commission Expires:
Serial No., if any:
Page 1578 of 1842
ACKNOWLEDGED AND ACCEPTED this day of ,20by •
Witnesses: LESSEE
Sinn Name:
Print Name: Ry:
Print name:
Sign Name __ .. _.. . . ..._. ..
Print Name:
STATE OF FLORIDA
)SS:
COUNTY OF DADE
The foregoing instrument was acknowledged before me this day of
20 by , as of Ile is
personally known to me or has produced as identification and who did
(did not)take an oath.
NOTARY PUBLIC
Typed or Printed Name of Notary
My Commission Expires:_
Serial No., if any:
Page 1579 of 1842
Exhibit"A'
[MRCC Parcel -Folio Na 02-3227-000-0090]
Page 1580 of 1842
Exhibit "Ii"
Hotel Site Legal Description
See REP Appendix For G,as applicable]
Page 1581 of 1842
Exhibit "C.
Easement Parcel 1 (Right-of-way)
[exact description to he finalized as part of the development process pursuant to the Lease I
Page 1582 of 1842
Exhibit "D"
Easement Parcel 2 for
Construction of Skybridge and Off-site Improvements and Maintenance of Skybidge
[exact description to be finalized as part of the development process pursuant to the Lease]
Page 1583 of 1842
EXHIBIT "H"
PRESENTLY PERMITTED DEVELOPMENT
!PLANNING DEPT TO UPDATE
(a) Permitted Development and Uses. The Leased Property is in the CCC Civic and
Convention Center District, a zoning district created to accommodate the facilities necessary to support
the Convention Center. The main permitted uses in the CCC Civic and Convention Center District are
parking lots, garages, performing arts and cultural facilities; hotel; merchandise mart; commercial or
office development; landscape open space; parks. Property located in the CCC Civic and Convention
Center District may be used for the purposes permitted and regulated in these land use designations and
zoning districts, as further limited by the City's Land Development Regulations, provided, however, that
the Leased Property may only he used in accordance with the terms and conditions of this Lease.
(b) Density, Building Heights, Setbacks and Intensities. The maximum density,
heights, setbacks and intensities for any development on the Leased Property shall be regulated by the
City's Land Development Regulations, Comprehensive Plan and any Governmental Requirements. The
development regulations in the CCC Civic and Convention Center District are as follows: (1) maximum
floor area ratio of'2.75. There are no lot area, lot width, population densities or unit size requirements for
the CCC Civic and Convention Center District. Building height and story requirements are as follows: (I)
Maximum building height for hotels: 300 feet; for all other uses: 100 feet. (2) Maximum number of
stories for hotels: 30: for all other uses: II stories. The development regulations (setbacks, floor area
ratio, signs, parking, etc.) shall be the average of the requirements contained in the surrounding zoning
districts as determined by the City's Planning and Zoning Director.
THIS EXHIBIT DESCRIBES THE PRESENTLY PERMITTED DEVELOPMENT FOR
PURPOSES OF THE ACT ONLY. THE PROJECT SHALL CONFORM TO THE
DESCRIPTION, TERMS AND CONDITIONS SET FORTH IN THIS LEASE.
Page 1584 of 1842
EXHIBIT "I"
PUBLIC FACILITIES
PLANNING DEPT TO UPDATE
The proposed development will be serviced by those roadway transportation facilities currently
in existence as provided by state, county, and local roadways. The proposed development will also be
serviced by public transportation facilities currently in existence, as provided by Miami-Dade County,
the City of Miami Beach, and such other governmental entities as may presently operate public
transportation services within the City of Miami Reach. Sanitary sewer, solid waste. drainage, and
potable water services for the proposed development shall be those services currently in existence and
owned or operated by Miami-Dade County, the Miami-Dade County Water and Sewer Department, and
the City of Miami Beach. The proposed development shall he serviced by those existing educational
facilities owned or operated by the Miami-Dade Public Schools District, if applicable. The proposed
development shall be serviced by those existing parks and recreational facilities owned or operated by
the United States Government within Miami- Dade County, by the State of Florida, by Miami-Dade
County, and by the City of Miami Beach. The proposed development shall be serviced by those existing
health systems and facilities operated by the United States Government within Miami-Dade County, by
the State of Florida, by Miami-Dade County, and by the City of Miami Beach.
The proposed development will also he serviced by any and all public facilities. as such are
defined in Section 163.3221(12) of the Act, that are described in the Comprehensive Plan, specifically
including those fadlities described in the Infrastructure Element and the Capital Improvements Element
therein, a copy of which is available for public inspection in the offices of the City Clerk of the City of
Miami Beach.
Page 1585 of 1842
EXHIBIT".I"
PUBLIC RESERVATIONS AND DEDICATIONS
None, except for any easements or reservations contemplated under Section 4.1(g),
Page 1586 of 1842
EXHIBIT "K"
REQUIRED DEVELOPMENT PERMITS AND VARIANCES
The following constitutes a generalized list of local permits anticipated as necessary to be
approved by the terms of this Lease:
Design Review Board, Planning Board,and,'or Board of Adjustment approvals,pursuant
to Chapter 118 of the City of Miami Beach Code.
2. Utility Permits
3. Demolition Permits
4. Building Permits
5. Environmental Permits
6. Hazardous Materials Removal Permit, if removal of hazardous materials is found
necessary.
7. Public Works Permit, Paving and Drainage
8. Public Works Permit,Water and Sewer
9. Public Works Revocable Permits
10. Certificates of Use and/or Occupancy
I I. Any variances or waivers that may be required pursuant to Chapters 114 through 142 of
the City of Miami Beach Code
12. All other local governmental approvals as may be applicable to the subject property from
time to time pursuant to the terms of this Development Agreement,including but not
limited to restrictive covenants in lieu of unity of title
Page 1587 of 1842
EXHIBIT "L"
ROOM BLOCK AGREEMENT
by and between
CITY OF MIAMI BEACH, FLORIDA
and
[PROPOSER]
Page 1588 of 1842
TABLE OF CONTENTS
ARTICLE I DEFINED TERMS 1
1.01 "18-MONTH ROOM BLOCK REQUEST" 1
1.02 "ACTIVE NEGOTIATIONS" 1
1.03 "AGREEMENT" 2
1.04 'AMENDED OFFER" 2
1.05 "AVAILABLE GUEST ROOMS' 2
1.06 "BLOCK NOTICE" 2
1.07 "BLOCK RELEASE REQUEST NOTICE' 2
1.08 'BUSINESS DAY" 2
1.09 "CITY" 2
1.10 "CITY MANAGER" 2
1.11 "CITY-WIDE EVENT" 2
1.12 "CONVENTION CENTER" 2
1.13 "CURE PERIOD" 2
1.14 "DEVELOPMENT AND GROUND LEASE AGREEMENT' 3
1.15 "EFFECTIVE DATE" 3
1.16 "EVENT BLOCK MINIMUM RATE" 3
1.17 "EVENT OF DEFAULT" 3
1.18 "EVENT NIGHT" 3
1.19 "EVENT ROOM BLOCK" 3
1.20 "FORCE MAJEURE" 3
1.21 "GMCVB" 3
1.22 "HOTEL" 3
1.23 "HOTEL SITE" 4
1.24 "INITIAL OFFER" 4
1.25 "MANAGED HOTELS" 4
1.26 "MANAGEMENT AGREEMENT" 4
1.27 "MAXIMUM EVENT NIGHT CEILING" 4
1.28 "MAXIMUM EVENT ROOM BLOCK" 4
1.29 "MIDWEEK" 4
1,30 "NOTICE" 4
1.31 "OFFER EXPIRATION DATE" 4
1.32 "OPENING" 4
1.33 "OPERATOR" 4
1.34 "LESSEE" 4
1.35 "POTENTIAL CONVENTION CENTER CUSTOMER" 4
1.36 "PUBLIC RECORDS ACT" 4
1.37 "RATE QUOTE" 4
1.38 "INTENTIONALLY OMITTED" 4
1.39 'ROOM BLOCK CONTRACT" 5
140 "ROOM BLOCK REQUEST NOTICE" 5
1.41 "SALES REPRESENTATIVE" 5
1.42 "SPECIAL EVENT BLOCK MINIMUM RATE" 5
1,43 "STANDARD OF OPERATION" 5
1.44 "STANDARD OF OPERATION FAILURE NOTICE" 5
1.45 "SUSPENSION PERIOD" 5
1.46 "TERM" 5
1.47 "WEEKEND' 5
ARTICLE II TERM OF THIS LEASE 5
2.01 COMMENCEMENT OF THE TERM 5
2.02 EXPIRATION OF TERM;SUSPENSION PERIOD 5
Page 1589 of 1842
ARTICLE III ROOM BLOCK COMMITMENT;RELEASE OF BLOCK 6
3.01 ROOM BLOCK 6
3.02 RELEASE OF BLOCK 12
ARTICLE IV ROOM BLOCK PRICING 13
4.01 EVENT BLOCK MINIMUM RATES;SPECIAL EVENT BLOCK MINIMUM RATES 13
4.02 GENERAL MATTFRS REGARDING RATES 15
4.03 CONFIDENTIALITY 15
ARTICLE V STANDARDS OF HOTEL OPERATION 16
5.01 STANDARDS 16
ARTICLE VI 16
STANDARDS OF CENTER OPERATION 16
ARTICLE VII NO LIABILITY FOR PROPOSED CONVENTION CENTER CUSTOMER;LESSEE RESPONSIBILITY TO CAUSE
OPERATOR TO PERFORM;INDEMNITY 16
7.01 No LIABILITY TO CITY 16
ARTICLE VIII EVENTS OF DEFAULT 17
8.01 DEFAULT 17
8.03 LESSEE'S RESERVATION OF RIGHTS 18
ARTICLE IX ADDITIONAL PROVISIONS 18
9.02 MISCELLANEOUS 18
9.03 ESTOPPEL CERTIFICATE 19
9.04 NOTICES 19
Page 1590 of 1842
ROOM BLOCK AGREEMENT
THIS ROOM BLOCK AGREEMENT ("Agreement") made and entered into as of the
day of , 201 (the "Effective Date") by and between City of Miami
Beach, Florida ("City"), a Florida municipal corporation, and [PROPOSER] ("Lessee"), a
company, recites and provides as follows.
RECITALS
The City has a material interest in maximizing the quality and performance of
convention business attracted to the Convention Center, as hereinafter defined in Section 1.12,
and encouraging convention and tourism business in the City.
In furtherance of those goals, and to facilitate the development of a full service
convention center hotel connected to the Convention Center, the City has entered into the
Development and Ground Lease Agreement ("Lease"), as hereinafter defined in Section 1.14,
with Lessee, under which the parties have agreed, among other things, to enter into a room
block agreement pursuant to which specific percentages of the Hotel's guest rooms will be
reserved for specific periods of time for attendees, participants and planners of conventions and
trade shows at the Convention Center. City and Lessee agree that the room block agreement
described in the Lease (and, accordingly, this Agreement) constitutes a contract for the
provision of services by Lessee to and for the benefit of City, which services are being provided
in exchange for the covenants and agreements of City set forth in the Lease.
City and Lessee intend that this Agreement satisfy such room block agreement
requirement in the Lease.
Lessee has or will execute and enter into a Management Agreement (as hereinafter
defined) with the Initial Hotel Operator pursuant to which, among other things, Lessee shall
require, and the Initial Ilotel Operator must agree,to perform the obligations assigned to Lessee
and/or Operator herein during the term of such Management Agreement and to otherwise
operate the Hotel in a manner which complies with this Agreement.
In consideration of the mutual covenants and agreements herein contained and other
good and valuable consideration, the receipt and legal sufficiency of which are hereby
acknowledged and confessed by the parties hereto, City and Lessee hereby covenant and agree
with each other as follows:
ARTICLE I
DEFINED TERMS
In this Agreement,these terms shall have the following meanings:
1.01 "18-Month Room Block Request"is defined in Section 3.01(c).
1.02 "Active Negotiations" means (x) for purposes of Section 3.01(b), that
Lessee or Operator, on the one hand, and a bona fide potential Hotel guest, on the other
hand, have exchanged written correspondence between them that reflects an indication
of mutual interest for consummating a transaction whereby such Hotel contracts to block
or books guest rooms at the Hotel, and neither Lessee or Operator, on the one hand, nor
such bona fide potential Hotel guest on the other hand, has indicated that it no longer
has any interest in pursuing such negotiations and (y) for purposes of Section 3.02(b),
that the GMCVB or the City or its representatives, on the one hand, and a Potential
Convention Center Customer, on the other hand, have exchanged written
correspondence between them that reflects an indication of mutual interest for
consummating a City-Wide Event and neither the GMCVB or the City, on the one hand,
nor such Potential Convention Center Customer, on the other hand, has indicated that it
no longer has any interest in pursuing such negotiations.
Page 1591 of 1842
1.03 "Agreement"is defined in this Agreement's preamble.
1.04 "Amended Offer"is defined in Section 3.01(d).
1.05 "Available Guest Rooms" means, as of any date in question, all of the
Hotel's guest rooms (including suites), excluding any guest rooms that are reasonably
projected to be unavailable on the dates in question due to scheduled renovations,
repairs (including, without limitation, repairs due to events of casualty that have
occurred), or maintenance, and excluding any of the Hotel's guest rooms that have been
condemned in a taking and as to which physical possession is projected to have been
taken by the condemnor prior to the date in question.
1.06 "Block Notice"is defined in Section 3.01(d).
1.07 "Block Release Request Notice"is defined in Section 3.02(d).
1.08 "Business Day" means a day other than a Saturday, a Sunday or a day on
which national banks in Miami-Dade County, Florida are closed for business. If any
action is required to be performed, or if any notice, consent or other communication is
given, on a day that is not a Business Day, such performance shall be deemed to be
required, and such notice, consent or other communication shall be deemed to be given,
on the first Business Day following such non-Business Day. Unless otherwise specified
herein, all references herein to a "day" or "days" shall refer to calendar days and not
Business Days.
1.09 "City" means the City of Miami Beach, Florida, a municipal corporation of
the State of Florida.
1.10 "City Manager"means the Chief Administrative Officer of the City. The City
Manager shall be construed to include any duly authorized representatives designated in
writing with respect to any specific matter(s) concerning the Room Block Agreement
(exclusive of those authorizations reserved to the City Commission or regulatory or
administrative bodies having jurisdiction over any matter(s) related to the Lease).
1.11 "City-Wide Event"means a convention, trade show or other event requiring
a three (3) night stay, during which a Potential Convention Center Customer (i) needs to
use a minimum of 115,000 gross square feet of exhibit or meeting space in the
Convention Center and (ii) in connection with such event, requests 1,500 or more guest
rooms be made available in hotels in the City (including the Hotel) and surrounding
metropolitan areas, in the aggregate, for one or more days while the event is held at the
Convention Center(and, potentially, the day preceding the commencement of such event
and the day following the conclusion of such event). A City-Wide Event shall also
include the annual Orange Bowl football game hosted by the Orange Bowl Committee,
and any Super Bowl football game that may take place in Miami-Dade County or Broward
County (without regard to whether either event utilizes the Convention Center in any
way).
1.12 "Convention Center"means the Miami Beach Convention Center located at
1900 Convention Center Drive, Miami Beach, Florida.
1.13 "Cure Period"is defined in Section 2.02(b).
Page 1592 of 1842
1.14 "Development and Ground Lease Agreement" or "Lease" means that
certain Development and Ground Lease Agreement between Lessee and City dated
201_, as may be amended from time to time in accordance with its terms.
1.15 "Effective Date"is defined in this Agreement's preamble.
1.16 "Event Block Minimum Rate" means the lowest rate City may require the
Lessee and Operator to quote or charge a Potential Convention Center Customer for a
room during a City-Wide Event, as described and determined in accordance with Section
401.
1.17 "Event of Default"is defined in Section 8.01.
1.18 "Event Night"means any night during a City-Wide Event(including the day
preceding the commencement of and the day following the conclusion of such event, as
contemplated in the definition thereof) for which (i) City has exercised its rights under
Section 3.01(a) by giving a Room Block Request Notice to the Operator and (ii) in
response to such Room Block Request Notice, 250 or more rooms have been booked,
blocked or reserved by the Operator either (i) pursuant to a contract with the Potential
Convention Center Customer or (ii) pursuant to Initial Offers or Amended Offers that
have been accepted or are still outstanding (and, if such contracts are terminated or any
of such offers are subsequently terminated or rejected, then any of the blocked rooms
that were subject thereto shall no longer be considered blocked for purposes of this
definition). If rooms are blocked under this Agreement for multiple City-Wide Events on
the same night, that night will be considered to be a single Event Night for purposes of
the Maximum Event Night Ceiling but in no event shall any night during a City-Wide
Event be considered an Event Night for purposes of the Maximum Event Night Ceiling if
City has not given a Room Block Request Notice for that night to the Operator.
1.19 "Event Room Block" means a block of guest rooms (including suites) at
the Hotel, , offered to or reserved for the attendees of a City-Wide Event in response to a
Room Block Request Notice.
1.20 "Force Majeure" means and includes causes without fault and beyond the
control of a party, whether or not foreseeable, including, without limitation, fire,
explosion, accident, flood, windstorm, earthquake, or other disaster or calamity,
disruption of utility service; restrictive new governmental laws or regulations; acts of war
(whether declared or undeclared), invasion, blockade, or sabotage; terrorism or threat
thereof; riot, civil disturbance, insurrection or acts of public enemies; and strike, lockout
or other labor action and inability to procure materials; provided that neither a material
disruption of or material adverse change in financial, banking or capital market
conditions or a material adverse change in the business, financial condition, operations,
assets, liabilities or prospects of either party shall excuse any failure or delay in
performance under this Agreement.
1.21 "GMCVB"means the Greater Miami Convention & Visitors Bureau.
1.22 "Hotel" means the hotel to be constructed by Lessee on the Hotel Site
pursuant to the Lease, together with all supporting hotel facilities and amenities.
Page 1593 of 1842
1.23 "Hotel Site" means the parcel of real property described on Exhibit A
attached hereto and made part hereof.
1.24 "Initial Offer"is defined in Section 3.01(b).
1.25 "Managed Hotels" means full-service, convention center hotels within the
United States of America operated as first-class hotels containing no less than(550-800]
rentable guest rooms operated under the Operator's brand name and managed by the
Operator or any entity controlled by, under common control with or that controls
Operator, specifically excluding franchised hotels.
1.26 "Management Agreement" means the hotel operating or management
agreement between Lessee and the Operator that exists from time to time, as it may be
amended or replaced from time to time.
1.27 "Maximum Event Night Ceiling" means the maximum number of Event
Nights in any calendar month during which Lessee or Operator shall be obligated to
provide Event Room Blocks pursuant to this Agreement. The Maximum Event Night
Ceiling is fourteen (14) Event Nights per calendar month.
1.28 "Maximum Event Room Block" means eighty percent (80%) of all of the
Hotel's Available Guest Rooms.
1.29 "Midweek"means Sunday through Thursday, inclusive.
1.30 "Notice" or "notice"means each and every communication, request, reply,
or advice required or permitted to be given, made or accepted by any party to this
Agreement to any other party to this Agreement, each of which shall be given in writing,
and deemed received by the intended recipient, in accordance with Section 9.04.
1.31 "Offer Expiration Date"is defined in Section 3.01(e).
1.32 "Opening"means the opening of the Hotel to the public for business.
1.33 "Operator" means the entity responsible for overseeing the day to day
management of the Hotel. The initial Operator(sometimes herein called the "Initial Hotel
Operator") of the Hotel is a corporation.
1.34 "Lessee" means the entity defined as "Lessee" in this Agreement's
preamble and each subsequent Lessee of all or any part of the Hotel Site. An entity shall
be deemed to be the "Lessee" hereunder only during the term of its leasehold of the
Hotel Site.
1.35 "Potential Convention Center Customer" means a person, entity, group or
association (or any combination thereof) that is planning a City-Wide Event.
1.36 "Public Records Act"is defined in Section 4.04.
1.37 "Rate Quote"is defined in Section 3.01(b).
1.38 Intentionally Omitted.
Page 1594 of 1842
1.39 "Room Block Contract"is defined in Section 3.01(f).
1.40 "Room Block Request Notice"is defined in Section 3.01(a).
1.41 "Sales Representative"is defined in Section 3.01(a).
1.42 "Special Event Block Minimum Rate" means, for up to six (6) City-Wide
Events per year as determined by City at its sole discretion, the lowest rate City may
require the Lessee and Operator to quote or charge a Potential Convention Center
Customer for a room for such City-Wide Events, as described and determined in
accordance with Section 4.01.
1.43 "Standard of Operation"is defined in Section 6.01.
1.44 "Standard of Operation Failure Notice"is defined in Section 2.02(a)('1).
1.45 "Suspension Period"is defined in Section 2.02(a).
1.46 "Term"is defined in Section 2.01.
1.47 "Weekend"means Friday and Saturday.
ARTICLE II
TERM OF THIS AGREEMENT
2.01 Commencement of the Term. The term of this Agreement (the "Term") shall
commence on the Effective Date.
2.02 Expiration of Term; Suspension Period.
(a) The Term shall continue until the earlier to occur of:
(i) the date upon which the Convention Center is no longer
designated by the City as the City's principal convention center;
(ii) the date upon which the Convention Center is no longer operated
and maintained substantially consistent with the Standard of Operation; provided, that, no
expiration of the Term pursuant to this Section 2.o2(a)(ti) shall be deemed to have occurred
unless and until (r) Lessee has provided to City written notice (the "Standard of Operation
Failure Notice") of any alleged failure by City to operate and maintain the Convention Center in
a manner substantially consistent with the Standard of Operation, which notice (to be effective
as such) must state with reasonable specificity the reasons why Lessee believes that the
Convention Center is no longer being operated or maintained substantially consistent with the
Standard of Operation(e.g., if Lessee believes the Convention Center is not being maintained in
substantial accordance with the Standard of Operation, Lessee's notice shall describe the
deficiencies in maintenance with reasonable specificity), and (2) City has failed to remedy such
failure within two hundred seventy (270) days following receipt of such Standard of Operation
Failure Notice (such 270-day cure period to be extended for delays resulting from Force Majeure
and, if the nature of the failure is such that the same cannot reasonably be expected to be cured
within said 270-day period, such 27o-day period shall be extended such period of time as is
reasonably necessary to effect such cure so long as City commences the cure promptly and uses
commercially reasonable, diligent efforts to complete such cure as soon as reasonably
Page 1595 of 1842
practicable;the 270-day cure period, as the same may he extended as provided for in this clause,
is herein called the "Cure Period"). Notwithstanding the foregoing, City shall have the right to
contest Lessee's determination that the Convention Center is not being operated or maintained
substantially in accordance with the Standard of Operation by giving Lessee notice of such
contest within thirty (so) days following receipt of the Standard of Operation Failure Notice. If
City elects to contest Lessee's determination, then the commencement of the Cure Period shall
be delayed until the date of determination by a court of competent jurisdiction that the
Convention Center was not being operated and maintained substantially consistent with the
Standard of Operation; or
(ii) the termination of this Agreement pursuant to Section 8.01 of
the Lease.
ARTICLE Ill
ROOM BLOCK COMMITMENT; RELEASE OF BLOCK
3.01 Room Block. During the Perm, City may from time to time require the Operator to offer
an Event Room Block to Potential Convention Center Customers in connection with a City-Wide Event in
accordance with. and subject to the limitations set forth in, this Agreement. Notwithstanding anything
herein to the contrary, City shall not have the right to require the Operator to offer an Event Room Block
to Potential Convention Center Customers if(a) the number of Event Nights requested in the Room Block
Request Notice for such Event Room Block would cause the Maximum Event Night Ceiling to he
exceeded, or(b) the total number of rooms requested to be blocked in such Room Block Request Notice
on any Event Night exceeds the number of rooms Operator is required to offer to block pursuant to
Section 3.01(b)(i). Subject to the limitations set forth in the preceding sentence and elsewhere in this
Article III. the right to require that the Operator so offer the Event Room Block will he exercised in
accordance with the following procedures:
(a) A management, sales or booking representative of City or, if
authorized by City, the GMCVB (the "Sales Representative"), will notify the Operator that
a Potential Convention Center Customer is seeking offers from local hotels to
accommodate, among other needs, the guest room needs of the Potential Convention
Center Customer for a City-Wide Event (the "Room Block Request Notice"). The Room
Block Request Notice will (i) identify the Potential Convention Center Hotel Customer, (ii)
if the same is generally available to City, set forth a documented history of the group's
room block events for the most recent three year period including a comparison of the
number of rooms blocked and the actual number of rooms actually used, (iii) specify
each specific date for which the Potential Convention Center Customer will require
blocks of guest rooms (including those dates commonly known as "move in" and "move
out" dates), and (iv) specify the number of guest rooms in the Hotel the Potential
Convention Center Customer is seeking to block on each of the specific dates.
Notwithstanding the provisions of Section 9.04 or the definition of "Notice" set forth
above, the Room Block Request Notice will be communicated to the Operator in the
same manner as such notifications are customarily communicated by the Sales
Representative to other hotels in the City. However, a copy of all Notices required or
permitted to be provided by the Sales Representative or City under this Article III shall be
delivered to Lessee, and such notices to Operator shall not be effective unless and until
a copy of such notices are delivered to Lessee.
Page 1596 of 1842
(b) Unless such deadline is extended in writing by the Sales
Representative, within five (5) Business Days after Operator's receipt of a Room Block
Request Notice for a City-Wide Event that is no sooner than thirty (30) months from the
date of such notice (or, if applicable by the operation of Section 3.01(c) below, eighteen
(18) months from receipt of such notice), the Operator will deliver to the Potential
Convention Center Hotel Customer (with a copy to the Sales Representative and City) an
initial written offer in response to the Room Block Request Notice (the "Initial Offer"). In
the Initial Offer the Operator will
(i) offer to the Potential Convention Center Customer to block,
on each specific date that the Potential Convention Center Customer requires a block of
guest rooms as specified in the Room Block Request Notice, the lesser of(A) the actual
number of the guest rooms in the Room Block Request Notice for each specific date, or
(B) the Maximum Event Room Block after deducting from the Maximum Event Room
Block the following:
1. any previously offered room blocks under this Agreement
for other City-Wide Events covering such dates, which offers have either been accepted or are
still outstanding;
2. any guest rooms released by City pursuant to Section
3.01(j) or Section 3.02 and that have actually been booked by Operator or are the subject of
Active Negotiations. If such guest rooms are the subject of Active Negotiations, then at the
request of City Lessee and Operator shall (x) attempt to cause such proposed Hotel guest with
whom such Active Negotiations are being held to select other dates for the use thereof that
would permit Operator to accommodate the room block set forth in the Room Block Request
Notice or (y) require that Operator accelerate negotiations with such potential Hotel guest by
requiring such potential Hotel guest to execute a contract to block or book such rooms that are
the subject of such Active Negotiations within the fifteen (15) Business Days following City's
request to Operator under this clause (y), failing which, for purposes hereof, such rooms shall
no longer be considered under Active Negotiations; and
3. in the case where the Maximum Event Night Ceiling for
such month to which such block relates had previously been reached but, due to subsequent
cancelations of bookings there remain, as of the date of request for the Initial Offer, available
Event Nights for such month, then less the number of rooms booked, blocked or reserved by
Operator (i.e., rooms that were booked or reserved, or were offered by Operator to be booked,
blocked or reserved under offers that have either been accepted or are still outstanding)
following the date such Maximum Event Ceiling Night had been reached and prior to such
cancelations3, and
(ii) quote a specific room rate for a standard single and double room
and suites (the "Rate Quote'). In making the Rate Quote, the Operator will take into account
3 The following is an example of the intended operation of this clause (3). Assume that on January I,
2020. the Maximum Event Night Ceiling was achieved for the month of January 2024. Then assume that,
in accordance with its right to do so pursuant to Section 3.01(1), during the month of January 2020 the
Operator books 200 room nights for the month of January 2024. Then assume that a block for 400 rooms
booked for January 2024 and that comprised part of the Maximum Event Night Ceiling was canceled on
February 1,2020. Then assume that a Room Block Request is delivered on March I.2020 for a block in
January 2024. The 200 rooms booked by Operator in January 2020 would be deducted from the
calculation of the Maximum Event Room Block under clause(3).
Page 1597 of 1842
seasonality (i.e., using group event guest room rates received in a calendar month as the basis
for quotes for the same month in subsequent calendar years), Midweek versus Weekend rates,
and special events that occur regularly during the applicable period); provided, that, the Rate
Quote shall not take into account non-recurring special events that occur in a particular month
which inflate group event room rates (such as Super Bowls, NCAA Men's or Women's
basketball tournaments, Major League Baseball playoffs and similar sporting or entertainment
events). In addition, rates for groups whose stay consists of both Midweek and Weekend days
shall be determined in accordance with Operator's booking policies described in Section 3.01(f).
The amount of the Rate Quote in the Initial Offer will be at the sole, but good faith, discretion of
the Operator.
(c) Notwithstanding anything to the contrary set forth in Section 3.01(b)
or any other provision of this Agreement to the contrary:
(i) the Operator shall offer the Maximum Event Room Block to a
Potential Convention Center Customer for a City-Wide Event that will commence between
eighteen (18) and thirty (30) months from the date of such notice (a "18-Month Room
Block Request"), and Operator shall be obligated to issue an Initial Offer (and otherwise
perform its obligations hereunder) for such a City-Wide Event only if the number of
rooms requested in such 18-Month Room Block Request are available as of the date of
receipt of such Room Block Request Notice (i.e., rooms that (x) have not been booked,
blocked, or reserved, y) are not the subject of active negotiations regarding same and (z)
have not been previously offered by Operator to be booked, blocked or reserved under
offers that have either been accepted or are still outstanding) on the Event Nights for
which rooms are requested in such Room Block Request Notice; provided, however, that
(ii) the Operator shall designate one consecutive four (4) day
period each calendar month to be able to offer a Maximum Event Room Block to a
Potential Convention Center Customer for City-Wide Events commencing between
eighteen (18) and thirty (30) months of a potential Event Room Block. Operator shall
determine the consecutive four (4) day periods for each respective month during the
applicable period and shall notify City of the schedule on a monthly basis.
(d) The Rate Quote included by Operator in the Initial Offer shall be
determined in Operator's sole, but good faith, discretion, and in determining such rate,
Operator shall be entitled to take into account, among other considerations, the level of
food and beverage services that the Operator anticipates the Potential Convention
Center Customer will purchase in the Hotel. After reviewing the Initial Offer, the Sales
Representative may consult with the Operator regarding the Rate Quote contained in the
Initial Offer. If prior to acceptance of the Initial Offer (or any amendment thereto
voluntarily offered by the Operator to the Potential Convention Center Customer), City
reasonably and in good faith believes that it might be in City's or the City's best interest
to compel the Lessee to offer the Potential Convention Center Customer an alternative
rate structure, City may, after consultation with the Operator and within thirty (30) days
following receipt of the Initial Offer, elect to require (which election shall be
communicated by Notice from City to the Operator) the Operator to offer to the Potential
Convention Center Customer a rate lower than the rate in the Initial Offer, but in no event
lower than the Event Block Minimum Rate or, for up to six (6) City-Wide Events annually
as determined at the City's sole discretion, the Special Event Block Minimum Rate, as
applicable (such written election being the "Block Notice"). Upon receipt of the Block
Notice, Operator shall, within two (2) Business Days thereafter, amend the Initial Offer by
Page 1598 of 1842
substituting the rate specified by City, which shall be no lower than the Event Block
Minimum Rate, as the Rate Quote (the "Amended Offer").
(e) Subject to the remaining provisions of this Section 3.01(0, the Initial
Offer or the Amended Offer (if applicable) shall remain open for acceptance by the
Potential Convention Customer until the sixtieth (60th) day following the date of the
Initial Offer or Amended Offer, as the case may be; provided, that in the case of an Initial
Offer or Amended Offer given in response to a 18-Month Room Block Request, then
Operator may at any time provide the Potential Convention Center Customer with written
notice (the "Acceleration Notice") that such Initial Offer or Amended Offer will expire on
the fifteenth (15th) Business Day following the date of such Acceleration Notice unless
the Potential Convention Center Customer executes and returns the Room Block
Contract to the Operator. If such customer fails to execute and return the Room Block
Contract within such fifteen (15)-Business Day period, the offer shall expire, and the
Operator shall have no further obligation to City or the Potential Convention Center
Customer in regard to such City-Wide Event under the Initial Offer or the Amended Offer,
as the case may be. The date of expiration of the Initial Offer or Amended Offer, as the
case may be, determined pursuant to this Section 3.01(e) is herein referred to as the
"Offer Expiration Date".
(f) If either the Initial Offer or the Amended Offer is accepted by the
Potential Convention Center Customer prior to the Offer Expiration Date, Operator shall
endeavor to negotiate a binding contract with the Potential Convention Center Customer
applying Operator's customary booking policies to the Event Room Block (the "Room
Block Contract"), including policies relating to contracts, advance deposits and
cancellation, provided that these policies shall adhere in all material respects to the
general customs employed by the Operator at its Managed Hotels, if any. Lessee will use
its good faith efforts to cause Operator to consider changes to Operator's customary
booking policies to the extent necessary to accommodate any prevalent and material
local booking customs or practices. If a Potential Convention Center Customer has not
for any reason (other than Operator's breach of its obligations set forth in the preceding
sentence) signed a contract with the Operator with respect to such Initial Offer or
Amended Offer, as the case may be, on or before the Offer Expiration Date, then such
offer will expire, whereupon the Lessee shall have no further obligation to City or the
Potential Convention Center Customer in regard to such City-Wide Event under the Initial
Offer or the Amended Offer, as the case may be. However, if such offer expires at a time
when there are more than thirty (30) months (or, by the operation of Section 3.01(4
eighteen (18) months) prior to the first Event Night of the Potential Convention Center
Customer's City-Wide Event, nothing in this Agreement shall prohibit City from issuing a
new Room Block Request Notice for such City-Wide Event in accordance with, and
subject to the provisions of, this Section 3.01.
(g) If a Potential Convention Center Customer signs a Room Block
Contract with the Operator but later provides written notice to the Operator that it is
terminating such contract, the Operator, after Notice to City from the Lessee or Operator,
will have no further obligation to City in regard to the Event Nights covered by the Room
Block Request Notice (which shall be deemed released from the obligations hereunder),
but only if such written termination notice is given by the Potential Convention Center
Customer on a date less than thirty (30) months before the first Event Night. If such
notice of termination is given on a date more than thirty (30) months before the first
Event Night, then, unless rooms are blocked under this Agreement for such Event Nights
Page 1599 of 1842
for another City-Wide Event, the Event Nights covered by the Room Block Request
Notice for such City-Wide Event will not be included in calculating the Maximum Event
Night Ceiling, and City may again deliver a Room Block Request Notice in accordance
with, and subject to the limitations set forth in, this Section 3.01; provided, however,
Operator will have no obligation to cancel any bookings to accommodate such
subsequent request (for example, as provided in Section 3.01(1), once the Maximum
Event Night Ceiling has been reached the Operator is free to book rooms hereunder for
such month and Operator shall not be obligated to cancel any rooms reservations for
such month to accommodate a replacement block). City recognizes that the Lessee or
Operator may be entitled to collect cancellation fees from such Potential Convention
Center Customer and City hereby consents thereto and agrees that City shall have no
right or claim to all or any portion of such fees except as provided in the Lease.
Similarly, the Lessee recognizes that City may be entitled to collect cancellation fees
from such Potential Convention Center Customer pursuant to the contract between City
and the Potential Convention Center Customer, if any, and the Lessee hereby consents
thereto and agrees that Lessee shall have no right or claim to all or any portion of such
fees.
(h) If a Potential Convention Center Customer signs a Room Block
Contract with the Operator, then Operator will reserve rooms included in an Event Room
Block for such customer for purchase by the persons attending the applicable event until
the later of (x) the date required under the Room Block Contract executed with such
Potential Convention Center Customer and (y) the sixtieth (60th) day preceding the first
scheduled day of the applicable event, after which time any unbooked rooms shall be
released from such Event Room Block and may be rented for the dates covered by such
Event Room Block at any rate to any person Operator selects without restrictions
imposed by this Agreement. If within ninety (90) days prior to the applicable event, the
number of rooms actually booked is less than the number of rooms blocked, then
Operator may request City to release some or all unbooked rooms and City agrees not to
unreasonably withhold such consent. Furthermore, if the group history of the Potential
Convention Center Customer (whether in respect of events at the Convention Center or
elsewhere) reflects a pattern whereby the block of rooms reserved by such customer is
greater than the actual number of rooms used, then the Operator, with the consent of
City (which consent shall not unreasonably be withheld), shall have the right to block
only such number of rooms which Operator, in the exercise of its professional judgment
and based on such history of the customer, believes will be adequate to accommodate
the number of rooms which will be actually used by such customer; provided, that such
decision of the Operator shall not release or relieve Operator from providing other
lodging (in accordance with industry standard for handling overbookings) if the number
of rooms so blocked by Operator actually is not adequate to satisfy the actual use of
rooms by the Potential Convention Center Customer (up to the amount of rooms
included in the Event Room Block pursuant to the contract between Operator and such
customer).
(i) Operator shall have the unrestricted right to commit up to twenty
(20%) of the Available Guest Rooms on any given date (and any other rooms that are not
subject to being blocked by City pursuant to this Agreement) to the Hotel's commercial
or group guests. In addition, Operator shall have the unrestricted right to commit any
and all rooms not subject to a room block commitment pursuant to this Agreement for
any date that is less than thirty (30) months in advance; provided, however, if a 18-Month
Room Block Request is delivered to Operator, Operator shall issue an Initial Offer with
Page 1600 of 1842
respect to such request only to the extent required pursuant to Sections 3.01(c)(i) and
3.01(c)li ii.
(j) If Operator has a potential booking that would not be permitted
under the terms of this Agreement, Operator may by notice to City (with a copy to
Lessee) request that it be entitled to make such booking. City shall have five (5)
Business Days in which to respond to such request by notice to the Operator; provided,
that a failure to respond shall be deemed a rejection of such request (but such deemed
rejection shall not prevent Operator from making multiple requests for such release).
(k) For the avoidance of doubt, the Operator shall have the right to
freely book all rooms within the Hotel on any day which the Convention Center cannot
accommodate a City-Wide Event because less than one hundred fifteen thousand
(115,000) square feet of meeting or exhibit space is available on such day for use by a
Potential Convention Center Customer (such determination to be made as of the time
Operator makes or extends an offer to make such booking).
(I) Once the Maximum Event Night Ceiling is reached for a month, the
Operator shall have the right to freely book the available rooms at the Hotel for that
month, regardless of when the booking is made (e.g., it may be more than thirty (30)
months in advance).
(m) Notwithstanding the foregoing, if a Potential Convention Center
Customer has (i) a documented history of causing material property damage or
unusually heavy wear and tear in connection with group events or (ii) poor credit or a
questionable payment history, then Operator shall have the right, at its option, to include
in its Initial Offer to such Potential Convention Center Customer security, damage or
other deposit requirements that, in Hotel Lessee's judgment exercised in good faith,
would compensate Operator and Lessee for the damage, wear and tear or failure to pay
(and, notwithstanding anything in Section 3.01(d) to the contrary, but subject to
resolution of any dispute described below, City shall not have the right to require
Operator to deliver an Amended Offer to such Potential Convention Center Customer that
does not include such security, damage or other deposit requirements); provided that (1)
Operator shall provide City notice that such Potential Convention Center Customer has a
documented history of causing material property damage, unusually heavy wear and
tear, poor credit or questionable payment history, as applicable, and also provide notice
of its intention to include such (and provide a statement of the amount of the proposed)
security, damage or other deposit requirements prior to issuance of such Initial Offer and
(2) in such notice Operator shall set forth in reasonable detail the basis for the Operator's
conclusions. City shall have the right to reasonably challenge Lessee's conclusion that
such Potential Convention Center Customer is a customer described in clauses (i) or (ii)
of the first sentence of this paragraph but, for the avoidance of doubt, Operator shall be
entitled to deliver an Initial Offer with such additional security, damage or other deposit
requirements prior to receipt of notice of any such challenge, and if the parties
subsequently agree that such additional requirements are unnecessary, City shall be
entitled, if such Initial Offer remains outstanding, to require Operator to issue an
amended Initial Offer omitting such requirements. City shall, to the fullest extent
permitted by law, keep such conclusions confidential in accordance with Section 4.04. In
the event of any such challenge by City, the parties agree to meet and confer and attempt
in good faith to reach agreement as to the additional deposit requirements will be placed
on any offer given to such customer.
Page 1601 of 1842
3.02 Release of Block
(a) If the Operator desires to commit a block of more than twenty
percent (20%) of the Available Guest Rooms to non-Potential Convention Center
Customer business for a date more than thirty (30) months in the future, the Operator can
request by Notice to City (a "Block Release Request Notice") that City release that block
from this Agreement. Each Block Release Request Notice shall specify the dates as to
which such request applies and the number of event night rooms to which such request
applies. Within five (5) Business Days after receipt of such request, City shall deliver
written notice to Operator either (i) approving such release of such requested block for
such specific dates and rooms or (ii) disapproving such release. City shall be entitled to
make such determination in its sole discretion, subject to Section 3.02(b) below;
provided, that if the Block Release Request Notice describes a group that is proposing to
contract for regularly recurring events (including on a rotating basis with other
municipalities) at the Hotel and/or the Convention Center, City shall consider such
request for the release in light of the possible repeat nature of the proposed business. If
City fails to either approve or disapprove such request in writing within such five (5)
Business Day period, then such request shall, except as set forth in the last two (2)
sentences of Section 3.02(b)., be deemed denied (but such deemed denial shall not
prevent Operator from making multiple requests for such release).
(b) Notwithstanding the foregoing provisions of this paragraph, City
shall release the block requested in a Block Release Request Notice unless any of the
following are true:
(i) A Room Block Request Notice satisfying the requirements set
forth herein has been delivered that covers any of the dates reflected in the Block
Release Request Notice, unless any Initial Offer or Amended Offer delivered by Operator
in response thereto has expired without the execution by the Potential Convention
Center Customer of a Room Block Contract with Operator or, if such a contract was
executed, the same has been terminated by the customer;
(ii) The GMCVB or the City is in Active Negotiations with a
Potential Convention Center Customer for a City-Wide Event that includes any of the
dates covered by the Block Release Request Notice; or
(iii) The dates covered by the Block Release Request Notice have
historically been booked in hotels in the City for a City-Wide Event and City reasonably
concludes that the release of the block in the Hotel will jeopardize booking of such City-
Wide Event.
(iv) City will provide Operator a list of known release dates on a
periodic basis (not less than semi-annual) identifying all future dates the Convention
Center cannot be utilized for City-wide Events due to maintenance, move in/out periods,
or any other reason ("Known Release Dates"). If the City subsequently eliminates such
dates from a subsequent list of Known Release Dates, such date(s) shall be subject to all
applicable provisions of this Agreement, unless rooms have been booked, blocked or
reserved by the Operator pursuant to a contract with a hotel customer or group (and, if
such contracts are terminated, then any of the blocked rooms that were subject thereto
shall no longer be considered blocked for purposes herein).
Page 1602 of 1842
Notwithstanding anything in Section 3.02(a)to the contrary,if City fails to either
approve or disapprove a request Block Release Request Notice within the five(5) Business Day
period described in Section (1.o2(a), and Operator reasonably believes such release is required
pursuant to this Section 4.o2(b),then Operator shall have the right to send a second written
notice to City(which second notice shall conspicuously include the following, in capital and bold
print letters: "SECOND NOTICE FOR RELEASE OF BLOCK UNDER SECTION 3.02(b)
OF ROOM BLOCK AGREEMENT; FAILURE TO RESPOND WITHIN FIVE
BUSINESS DAYS SHALL BE DEEMED APPROVAL OF THE REQUESTED
RELEASE") requesting that it be entitled to make such booking,setting forth in reasonable
detail the reason such release complies with Section 3.02(b). If City fails to deliver to Operator
written notice disapproving such request within five(5) Business Days of receipt of such second
notice,then City shall be deemed to have approved such request.
(c) Operator shall, upon request by City following any release made
pursuant to this Section 3.02, use its good faith efforts to accommodate any Event Room
Block subsequently requested covering any of the dates for which a release has been
provided by City under this Section 3.02.
ARTICLE IV
ROOM BLOCK PRICING
4.01 Event Block Minimum Rates; Special Event Block Minimum Rates.
(a) The Event Block Minimum Rates and Special Event Block Minimum
Rates shall be as follows:
(i) The Event Block Minimum Rate shall be an amount equal to 105% of
the average group rate for the applicable period reflected in the Lessee's Initial Projected Event Block
Rate Schedule or Lessee's Subsequent Projected Event Block Rate Schedule (each as defined below), as
applicable.
(ii) The Special Event Block Minimum Rate shall be an amount equal to
100% of the average group rate for the applicable period reflected in the Lessee's Initial Projected Event
Block Rate Schedule or Lessee's Subsequent Projected Event Block Rate Schedule (each as defined
below), as applicable.
(b) Concurrent with the execution hereof, Lessee has provided to City
a schedule of the projected Event Block Minimum Rate and Special Event Block
Minimum Rate for the first five (5) calendar years after the Opening (the "Lessee's Initial
Protected Event Block Rate Schedule"). The Lessee's Initial Projected Event Block Rate
Schedule shall include a schedule for both Event Block Minimum Rates and Special
Event Block Minimum Rates, and will include varying rates for room type and for periods
within each applicable calendar year to account for seasonality and day of the week (e.g.,
Midweek, Weekend). The rates for each such year included in Lessee's Initial Projected
Event Block Rate Schedule shall represent Lessee's good faith forecast of the rates that
will be included in the pro forma budget for the operation of the Hotel for such year and
are the projections and forecasts being used by Lessee in making its decisions, and
planning for, bookings in the operation of the Hotel and the conduct of Lessee's
business generally.
(c) By no later than January 1 of each year commencing after the date
hereof, Lessee shall provide City a schedule of the projected Event Block Minimum Rate
Page 1603 of 1842
and Special Event Block Minimum Rate for the ensuing five (5) calendar year period
(each such schedule, an "Lessee's Subsequent Projected Event Block Rate Schedule").
The rates (x) for the first twelve (12) months covered by the Lessee's Subsequent
Projected Event Block Rate Schedule shall be those set forth in the pro forma operating
budget for the Hotel for such 12-month period that has been approved by Lessee and
Operator, and (y) for each other year covered thereby shall represent Lessee's and
Operator's then-current good faith forecast of the rates that Lessee and Operator project
will be included in the actual pro forma budget adopted for the operation of the Hotel for
such years and are the forecasts and projections being used by Lessee in making its
decisions, and planning for, bookings in the operation of the Hotel and the conduct of
Lessee's business generally. For each year, subsequent to January 1, Lessee may
deliver one (1) updated Lessee's Subsequent Projected Event Block Rate Schedule,
which will replace the Lessee's Subsequent Projected Event Block Rate Schedule
previously delivered for such year.
(d) Each of the Lessee's Initial Projected Event Block Rate Schedule
and each Lessee's Subsequent Projected Rate Schedule shall, when delivered to City, be
accompanied by (i) reasonable evidence that the same has been approved by both
Lessee and Operator, and (ii) a certification from Lessee to City indicating that the Event
Block Minimum Rate and Special Event Block Minimum Rate for each year set forth
therein represents (x) for the first twelve (12) months covered thereby those set forth in
the Lessee's pro forma operating budget for such 12-month period that has been
approved by Lessee and Operator, and (y) for each other year covered thereby, Lessee's
and Operator's good faith forecast of the rates that Lessee and Operator project will be
included in the actual pro forma budget adopted for the operation of the Hotel for such
year and are the forecasts and projections actually being used by Lessee in making its
decisions, and planning for, bookings in the operation of the Hotel and the conduct of
Lessee's business generally.
(e) The rates reflected in the Lessee's Initial Projected Event Block Rate
Schedule and each of the Lessee's Subsequent Projected Event Block Rate Schedules,
as increased up to one hundred and five percent (105%) of such rates, shall be the
"Event Block Minimum Rate" for each of the five (5) years covered by, as applicable, the
Lessee's Initial Projected Event Block Rate Schedule or the then current Lessee's
Subsequent Projected Event Block Rate Schedule. The rates reflected in the Lessee's
Initial Projected Event Block Rate Schedule and each of the Lessee's Subsequent
Projected Event Block Rate Schedules, at one hundred percent (100%) of such rates,
shall be the "Special Event Block Minimum Rate" for each of the five (5) years covered
by, as applicable, the Lessee's Initial Projected Event Block Rate Schedule or the then
current Lessee's Subsequent Projected Event Block Rate Schedule.
(i) The parties recognize that the Event Block Minimum Rate and
Special Event Block Minimum Rate may change each year (but only once per year and
then only with the issuance of the Lessee's Subsequent Projected Event Block Rate
Schedule), it being understood that each Lessee's Subsequent Projected Event Block
Rate Schedule (and the rates reflected therein) shall supersede all previously issued
Lessee's Subsequent Projected Event Block Rate Schedules even though the same
relate to the same years (the following is an example of the "rolling" nature of the
determination of the Event Block Minimum Rate: assume that the Lessee issues, on
December 1, 2020, an Lessee's Subsequent Projected Event Block Rate Schedule. That
schedule will cover the period commencing January 1, 2021 and ending December 31,
Page 1604 of 1842
2025 [the "2021 Schedule"]. Then assume that on December 1, 2021, Lessee issues a
Lessee's Subsequent Projected Event Block Rate Schedule. That schedule will cover the
period commencing January 1, 2022 and ending on December 31, 2026 [the "2022
Schedule"]. The 2022 Schedule will, as to any Block Notice issued on or after January 1,
2022, supersede the 2021 Schedule and all prior schedules covering the years 2022,
2023, 2024 and 2025 and shall govern the determination of the Event Block Rate with
respect to such Block Notice).
(ii) If a Block Notice is issued for a City-Wide Event where the first
Event Night will occur on a date in a calendar year that is not covered by the then current
Lessee's Subsequent Projected Event Block Rate Schedule(i.e., the date of such first Event Night
is beyond the five (5) year period covered by the then current Lessee's Subsequent Projected
Event Block Rate Schedule), the Event Block Rate reflected in the then current Lessee's
Subsequent Projected Event Block Rate Schedule shall be used but shall be adjusted by an usual
and customary industry inflation factor as reasonably agreed upon by Lessee, Operator and City.
4.02 General Matters Regarding Rates. All rates described are for single rooms.
Double occupancy rooms may be quoted at a rate not greater than twenty percent (20%)
above the single room rates. Triple and quad occupancy rooms may be quoted at rates
with an increase of not greater than thirty percent (30%) above the single room rates.
Suites may be quoted with an increase above standard room rates consistent with
market practice, as reasonably determined by the Operator.
4.03 Confidentiality. Subject to its obligations under the Florida Public Records
Act (the "Public Records Act) in force in the State of Florida from time to time, City will
not disclose any Initial Offer or Amended Offer, any information provided by Operator
under Section 3.01(m) or any information obtained pursuant to Section 4.01 to any
person or entity other than (i) its employees, accountants, counsel and other consultants
who have a need to know such information, (ii) the Lessee and its officers, directors,
employees, accountants, counsel and other consultants, (iii) the Lessee's existing and
proposed lenders, (iv) Operator and its officers, directors, employees, accountants,
counsel and other consultants, (v) prospective purchasers of the Hotel or (vi) in
connection with any legal proceeding (or alternative dispute resolution procedure)
between City and Lessee and/or Operator, provided that City shall use reasonable efforts
to obtain confidential treatment of same. Neither Lessee nor Operator will disclose any
information provided by City to Lessee or Operator hereunder to any person or entity
other than (1) their respective affiliates, and the employees, accountants, counsel and
other consultants of Lessee, Operator and their respective affiliates who have a need to
know such information and their respective partners, members, shareholders, and other
holders of direct or indirect beneficial interests in Lessee or Operator, (2) the Lessee's
existing and proposed lenders and investors and any proposed replacement Operator,
(3)prospective purchasers of the Hotel or(4) in connection with any legal proceeding (or
alternative dispute resolution procedure) between City and Lessee and/or Operator,
provided that Lessee and Operator shall use reasonable efforts to obtain confidential
treatment of same.
(a) Subject to City's obligations under the Public Records Act, City shall use
its good faith efforts to provide timely written notice to Lessee and Operator of any request
received by City pursuant to the Public Records Act requesting information held by City to which
Lessee or Operator may assert"confidential business information" or"trade secret"status under
the Public Records Act, all for the purpose of providing Lessee and Operator an opportunity to
Page 1605 of 1842
seek to protect such information from disclosure by timely filing an appropriate action in a court
of competent jurisdiction seeking non-disclosure of the requested information.
ARTICLE V
STANDARDS OF HOTEL OPERATION
5.01 Standards. At all times during the term of this Agreement, the Lessee
shall, to the extent the Hotel is being operated (or, pursuant to the Lease, required to be
operated), cause the Operator to operate and manage the Hotel in accordance with the
Management Agreement and (to the extent the Hotel is required to be operated pursuant
to the Lease) the applicable provisions of the Lease. At all times when there is no
Management Agreement, Lessee shall, to the extent the Hotel is being operated, operate,
or cause an Operator to operate, the Hotel in a manner generally consistent with the
general physical and service standards applicable to other upscale convention center
hotels and (to the extent the Hotel is required to be operated pursuant to the Lease) in
accordance with the applicable provisions of the Lease.
ARTICLE VI
STANDARDS OF CENTER OPERATION
6.01. Standards. During the Term, City shall operate and maintain the Convention
Center to at least the average standard of quality consistent with the principal
convention centers operated in Orlando, Atlanta, New Orleans, Dallas, Houston, Boston,
Chicago, San Francisco, San Diego and Los Angeles, as of the Effective Date (the
"Standard of Operation').
ARTICLE VII
NO LIABILITY FOR PROPOSED CONVENTION CENTER CUSTOMER.
LESSEE RESPONSIBILITY TO CAUSE OPERATOR TO PERFORM; INDEMNITY
7.01 No Liability to City. In no event shall City be in any way responsible or
liable for the performance by any Potential Convention Center Customer of its
obligations under its contract with the Lessee or Operator or for any charges, liabilities
or other sums owed by, or liabilities of, such Potential Convention Center Customer (or
for those for whom it blocks rooms) to either Lessee or Operator.
7.02 Lessee and Operator Responsibility; Authority to Grant Consents and Make
Decisions. Lessee shall cause Operator to perform all of the covenants and agreements
of the Operator under this Agreement, and to cause the Operator to observe all of the
covenants and agreements of Operator hereunder, and by entering into a Management
Agreement Operator shall, notwithstanding any contrary provision of its Management
Agreement, be directly responsible to City for the performance of the Operator's
obligations hereunder. Furthermore, all actions, consents, decisions, elections, offers,
and determinations made hereunder by the Operator with respect to covenants and
obligations of the Operator under this Agreement shall be binding upon both Lessee and
Operator for purposes of this Agreement. As of the Effective Date, Lessee has delegated
the performance of the obligations and rights assigned to the Operator hereunder to the
Initial Hotel Operator under a Management Agreement (for so long as the same remains
in effect) and, upon its termination, shall delegate any or all of such responsibilities
hereunder to any subsequent Operator pursuant to a subsequent Management
Page 1606 of 1842
Agreement, but no such delegation shall release or relieve Lessee from its obligation to
perform, or cause to be performed, all of its covenants and agreements set forth herein.
All consents,decisions,waivers, and determinations to be made or given hereunder by
City may be made and given by the City Manager (or any person designated from time to time by
the City Manager by Notice to Lessee and Operator) and no inference to the contrary shall he
made because the defined term "City" is used in some places in this Agreement and the phrase
"City Manager" is used in others.
7.03. Indemnification. The Lessee shall indemnify, defend and hold harmless the
City and its officers, employees, agents and instrumentalities from any and all liability,
losses or damages, including attorney's fees and costs of defense, which the City or its
officers, employees, agents or instrumentalities may incur as a result of claims,
demands, suits, causes of actions or proceedings of any kind or nature arising out of,
relating to or resulting from the performance of the Room Block Agreement by the
Lessee, Operator, or their respective employees, agents, partners, principals or
subcontractors. The Lessee shall pay all claims and losses in connection therewith, and
shall investigate and defend all claims, suits or actions of any kind or nature in the name
of the City, where applicable, including appellate proceedings, and shall pay all costs,
judgments, and attorney's fees which may be incurred thereon. The above
indemnification provisions shall survive the expiration or termination of this Agreement.
ARTICLE VIII
EVENTS OF DEFAULT
8.01 Default. A default under the terms of this Agreement shall occur if any
party hereto shall default in the performance of any of the terms, conditions or covenants
contained in this Agreement to be performed or observed by it, and such party does not
remedy such default within thirty (30) days after Notice or, if the default is of such
character as to require more than thirty (30) days to remedy, then if such party fails to
commence to cure and correct the default within said thirty(30) day period and thereafter
prosecute such corrective action diligently and without interruption and complete the
cure thereof within ninety (90) days following the original Notice of such default (an
"Event of Default'). Notwithstanding the foregoing, the failure of Lessee or Operator to
comply with the provisions of Article III hereof within the time frames set forth therein
shall, if not cured within three (3) Business Days following written notice from City to
Lessee and Operator, constitute an Event of Default by Lessee hereunder without the
need of any additional Notice and without any further opportunity to cure such Event of
Default All Notices of default shall be provided to Lessee and to Operator and shall also
be given to Lessee's mortgagee (provided such mortgagee has provided Notice to City of
its name and address where Notices to it hereunder are to be sent).
8.02 Remedies. If an Event of Default shall have occurred because of a breach
of any provision hereof by City, on the one hand, or Lessee on the other hand then the
nondefaulting party shall have the right, at any time after the occurrence of said Event of
Default to (i) initiate and thereafter prosecute an action in equity for the specific
performance of any covenants or obligations to be performed by the defaulting party
hereunder (City shall also have the right to seek and obtain an order of specific
performance against the Operator so as to compel Operator, in its capacity as such
under the Management Agreement, to comply herewith) or(ii) exercise such other rights
as shall be available at law or in equity. In no event, however, shall this Agreement be
Page 1607 of 1842
terminated due to an Event of Default (provided that the foregoing shall not limit the
provisions of Section 2.02).
Each party acknowledges and agrees that its covenants, obligations and agreements set
forth in this Agreement are a material and fundamental inducement to the City in executing and
delivering the Lease and any other agreements referenced therein, such that actual damages
may not be an adequate remedy at law for the breach hereof by City, the Lessee or the Operator.
Accordingly, any party shall be entitled to seek relief mandating action by City, the Lessee
and/or Operator hereunder in accordance with this Agreement. In addition, each party
recognizes and agrees that monetary damages could not be calculated to compensate the other
party for any breach by the defaulting party of the covenants and agreements contained in this
Agreement. Each party may restrain and enjoin any breach or threatened breach of any
covenant, duty or obligation of the other party contained in this Agreement without the
necessity of(i) posting a bond or other security, (ii) any showing of irreparable harm, balance of
harms, consideration of public interest or the inadequacy of monetary damages as a remedy, or
(iii)that the administration of an order for injunctive relief would be impracticable. In the event
of any breach or threatened breach of any covenant, duty or obligation contained in this
Agreement,the party breaching (or threatening breach) stipulates and agrees that the balance of
hardships which weigh in favor of injunctive relief and that non-breaching party may seek and
obtain injunctive or other form of ancillary relief from a court of competent jurisdiction in order
to maintain the status quo and enforce the terms of this Agreement on an interim basis pending
the outcome of the dispute or controversy hereunder.
Lessee agrees to include in each Management Agreement a provision similar to the
foregoing whereby the Operator makes such agreements to Lessee with respect hereto and
specifically agrees that City shall have the right to specifically enforce against the Operator the
provisions of this Agreement.
8.03 Lessee's Reservation of Rights. Notwithstanding anything to the contrary
contained in this Agreement, this Agreement shall in no way limit Lessee's or Operator's
rights and remedies against a Potential Convention Center Customer resulting from such
Potential Convention Center Customer's default under a contract with Lessee or
Operator.
ARTICLE IX
ADDITIONAL PROVISIONS
9.01 Exculpation. The liability of Lessee (and of any successor "Lessee) under
this Agreement shall be limited to its interest in the Hotel. City agrees that none of the
Lessee's or Operator's direct or indirect partners, members, managers, joint venturers,
shareholders, directors, officers, agents and employees shall have any personal liability
with respect to, or arising out of, this Agreement. In no event shall any officer, director,
agent, or consultant of City, nor any employee or public official of the City, ever have any
personal liability with respect to or arising out of this Agreement.
Nothing within this Section 9.01 shall limit the right of any party to seek specific
performance of the terms and provisions of this Agreement as provided in Article VIII.
9.02 Miscellaneous. If any term of this Agreement or any application thereof
shall be invalid or unenforceable, the remainder of this Agreement and any other
application of such term shall not be affected thereby. This Agreement may be changed,
waived, modified or supplemented only by an instrument in writing signed by Lessee and
City. The headings in this Agreement are for purposes of reference only and shall not
Page 1608 of 1842
limit or define the meaning hereof. This Agreement may be executed in any number of
counterparts, each of which shall be an original, but all of which shall together constitute
one and the same instrument.
9.03 Estoppel Certificate. Within ten (10) Business Days after request therefor
by any party hereto or by Operator or by the holder of any loan made to Lessee or
Operator, the other party(ies) and Operator shall execute and deliver to the requesting
party a statement in writing and reasonably satisfactory to the requesting party and
directed to the requesting party (and, if requested, to the holder of any loan made to
Lessee or Operator) certifying to such factual matters as may be reasonably requested
by such requesting party, including without limitation (if such be the case) that (a) this
Agreement is unmodified and in full force and effect, (b) to the certifying party's
knowledge the requesting party is not in default hereunder or, if in default, the nature
thereof in reasonable detail, and (c) there are no defenses or offsets to the Agreement
claimed by the other party.
9.04 Notices. Each Notice to be provided or given hereunder must be in writing
(in some instances in this Agreement the words "written Notice" or "notice in writing"
may be used and in others simply the word "Notice" or "notice" may be used; no
inference is to be drawn therefrom as all Notices must be in writing) and must be
delivered or provided in one of the following methods: (a) certified mail, return receipt
requested, postage pre-paid and addressed to the party to whom such Notice is intended
to be delivered; or (b) personal delivery to the addressee by courier or other means of
hand delivery. Notice delivered by certified mail pursuant hereto shall be effectively
given and received on the third (3i°) business day following deposit of the same in the
United States Mail, postage pre-paid, addressed properly to the party to whom such
notice intended. Notice by personal delivery shall be effectively given and received upon
acceptance thereof by the addressee as confirmed in writing by a receipt executed by
and retained by the party delivering such Notice.
to City: City of Miami Beach
1700 Convention Center Drive
Miami Beach, Florida 33139
Attention:
with a copy to: City Attorney's Office
City of Miami Beach
1700 Convention Center Drive, 4th Floor
Miami Beach, Florida 33139
to the Lessee:
with a copy to:
Page 1609 of 1842
to the Operator:
Any mortgagee, trustee or beneficiary under any mortgage or deed of trust on the Hotel
may by Notice to the parties set forth hereinabove designate an address to which Notices to it
hereunder shall be sent. Any such party may from time to time by Notice as herein provided,
designate a different address to which Notices to it shall be sent.
9.05 Transfer of Lessee's or Operator's Interest.
(a) In the event of the sale, assignment or transfer by Lessee of its fee
interest in the Hotel Site (other than a collateral assignment to secure a debt of Lessee)
to a successor in interest (who shall, upon acceptance of title to or an interest in the
Hotel Site or any part thereof, be deemed to have assumed the obligations of Lessee
hereunder arising from and after the date of such acceptance), the transferring Lessee
shall be released or discharged from all of its covenants and obligations hereunder,
except such obligations as shall have accrued prior to any such sale, assignment or
transfer; and City agrees to look solely to such successor in interest of Lessee for
performance of such subsequently occurring obligations. Notwithstanding the
provisions of the preceding sentence, any successor Lessee hereunder shall in all
respects be obligated to honor any contract or agreement previously executed with a
Potential Convention Center Customer in accordance with its terms and shall be bound
by any outstanding Initial Offers or Amended Offers, each Room Block Request Notice
and the Event Rate then in effect subject to and in accordance with the provisions of
Article M.
(b) In the event that the Management Agreement with any Operator shall
expire or terminate for any reason then the Operator under such Management Agreement
shall be relieved from any obligations arising hereunder from and after the date upon
which, as a consequence thereof, such Operator is no longer operating the Hotel.
Lessee shall be obligated to secure the written consent and agreement of any
replacement third-party Operator to comply with all of the terms, provisions and
conditions set forth herein; provided, that, a failure by the Lessee to do so shall in no
way release or relieve Lessee or any such third-party replacement Operator from
performing the obligations of the Lessee and Operator hereunder.
9.06 Superiority of Agreement; Covenant Running with the Hotel Site. The
provisions of this Agreement shall constitute a restrictive covenant running with the
Hotel Site binding upon each Lessee thereof, and any and all operators or managers of
the improvements thereon, and each and every other person or entity claiming or holding
any interest in the Hotel Site, shall inure to the benefit of the City, and shall apply to any
hotel now or hereafter located on the Hotel Site, or any portion thereof.
9.07 Gender; Singular and Plural. As used herein, the neuter gender includes
the feminine and masculine, the masculine includes the feminine and neuter, and the
feminine includes the masculine and neuter, and each includes a corporation,
partnership or other legal entity when the context so requires. The singular number
includes the plural, and vice versa, whenever the context so requires.
Page 1610 of 1842
9.08 Nature and Extent of Agreement. This Agreement contains the complete
agreement of the parties regarding the terms and conditions of the Agreement. There are
no oral or written conditions, terms, understandings or other agreements pertaining to
the room block arrangements which have not been incorporated herein.
9.09 Governing Law. This Agreement shall be governed as to performance,
interpretation and jurisdiction by the laws of the State of Florida, without regard to
conflicts of law rules. This Agreement shall be enforceable in Miami-Dade County,
Florida, and if legal action is necessary by either party with respect to the enforcement of
any or all of the terms or conditions herein, exclusive venue for the enforcement of same
shall be in Miami-Dade County, Florida.
9.10 Binding Effect. Subject to express provisions hereof to the contrary, this
Agreement shall be binding upon and shall inure to the benefit of the parties hereto and
their respective heirs, successors and assigns during the Term hereof. Furthermore, and
notwithstanding any provision hereof to the contrary, (a) the City is an express, intended,
third party beneficiary of the obligations, duties and covenants of the Lessee hereunder,
(b) the City has the right to enforce all of the covenants, obligations and agreements of
the Lessee hereunder, (c) City may at any time, without the need of prior notice to or
consent from the Lessee, assign this Agreement to the City or to any other entity
designated by the City (provided that no such assignment shall be effective against
Lessee until Notice thereof is provided to Lessee, and provided further that the City
expressly assumes all of the obligations of City hereunder and agrees to be bound by the
terms and provisions of this Agreement) and (d) this Agreement shall automatically be
deemed assigned and transferred to the City upon any dissolution of City (but only if the
City expressly assumes all of the obligations of City arising hereunder from and after the
date of such assignment(and not attributable to a default by City arising prior to the date
of such assignment or transfer] and agrees to be bound by the terms and provisions of
this Agreement). In addition, the Operator shall be an express third party beneficiary of
the obligations, duties and covenants of City hereunder.
(signature pages to follow)
Page 1611 of 1842
Each of the parties hereto have caused this Agreement to he duly executed by their lawfully
authorized representatives effective as of the Effective Date.
Lessee:
[PROPOSER]
By:
Name:
Title:
CITY OF MIAMI BEACH, FLORIDA
By:
Dan Gelber
Mayor
Approved for form and legal sufficiency
By:
City Attorney
ATTEST
By:
City Clerk
Page 1612 of 1842
EXHIBIT A
HOTEL SITE
See RPP Appendix Por G, as applicable
Page 1613 of 1842
EXHIBIT "M"
OWNERSHIP INTERESTS IN LESSEE
[PROPOSER]
Page 1614 of 1842
EXHIBIT"N"
UNIFORM SYSTEM SUMMARY OF OPERATING STATEMENT
[INCLUDE SUCCESSFUL PROPOSER'S PRO FORMA
(Sec attached pages)
Page 1615 of 1842
EXHIBIT"0"
TRANSACTION RENT
EXAMPLE OF TRANSACTION RENT CALCULATION
The example of Transaction Rent in this Exhibit"0" is for illustrative purposes only.
1. Assuming that, for the first Transfer for which Transaction Rent would be payable, (i) Owner #1 sells a
51% Controlling interest in the Lessee to Owner #2 for a gross sales price (less typical closing adjustments and
credits) of$250,000,000, then no Transaction Rent would be payable in connection with this first Transfer, as the
gross sales price did not exceed 5290,000,000 (50% of the $580 million hurdle applicable to the first Transfer
pursuant to Section 4.4(b)).
2. Assuming that,for the second Transfer for which Transaction Rent would be payable, (Ij Owner#2 sells a
51% Controlling interest in the Lessee to Owner #3 for a gross sales price (less typical closing adjustments and
credits) of$300,000,000, then the Transaction Rent payable in connection with such Transfer would be calculated
as follows:
Gross sales price (less adjustments) $300,000,000.00
Transaction Rent: $750,000.00(i.e., .25%of$300,000,000)
3. Assuming that, for the third Transfer for which Transaction Rent would be payable, a 75% interest in the
Lessee is sold, with Owner#3 selling a 38% interest in the Lessee to Owner#4 for a gross sales price (less typical
closing adjustments and credits) of $200,000,000, and Owner #1 selling a 37% interest to Owner #4 for a gross
sales price (less typical closing adjustments and credits) of$190,000,000, then the Transaction Rent payable to
City would be calculated as follows:
Owner#3 Transfer
Gross sales price(less adjustments) $200,000,000.00
Transaction Rent: $500,000.00(i.e., .25%of 5200,000,000)
Owner#1 Transfer
Gross sales price (less adjustments) $190,000,000.00
Transaction Rent: $475,000
Page 1616 of 1842
EXHIBIT"P"
]RESERVED]
Page 1617 of 1842
EXHIBIT"Q"
RESERVED
Page 1618 of 1842
EXHIBIT"R"
SCHEDULE OF MINIMUM FIXED RENT
[UPDATE BASED ON FINAL NEGOTIATED AMOUNTS]
Year Lease Amount
1 S
2 S
3 S
4 S
5 S
6 S
7 S
8 _ S
9 S
10 S
*As provided in Section 4 4(a), this amount shall apply from the Rent Commencement Date to December
31 of the year in which the first anniversary of the Rent Commencement Date occurs, prorated for any
partial months and partial calendar years.
Page 1619 of 1842
EXHIBIT"5"
MANDATORY HOTEL PROJECT DESIGN ELEMENTS
A full-service convention hotel of not-to-exceed [550-800] rooms, including:
1. [approximately (but not to exceed) 800 rooms] (with a breakdown between kings,
double/double or double/queen rooms and suites necessary to obtain the Brand Approval by
the Initial Hotel Operator);
2. if required by the Initial Hotel Operator, a club lounge;
3. a minimum of approximately net square feet (+/- 5%) of hotel conference space for
meetings or other events, including a minimum of net square feet (+/- 5%) grand ballroom,
net square feet (+/- 5%) junior ballroom, and net square feet (+/- 5%) of breakout
meeting space;
4. appropriate space for kitchen facilities, used for room service and serving conference and
meeting rooms;
5. food and beverage locations of a total square footage size that is not greater than the square
footage size of food and beverage locations that are consistent with the size and number of
rooms in comparable 4 Diamond hotels in comparable locations, not less than seats, in the
aggregate, contained within a three-meal restaurant, specialty restaurant, pool bar and grill,
lounge and lobby bar (such restaurants and bars are to be developed primarily along the
perimeter of the ground floor of the Hotel Project) and as necessary to obtain Brand Approval
from the Initial Hotel Operator;
6. a non-specialty retail facility which may consist of a sundry and/or coffee shop(s) selling
products such as news, coffee, overnight supplies, and travel necessities as necessary to obtain
Brand Approval from the Initial Hotel Operator;
7. a pool,fitness center and spa;
8. the exterior elements depicted in Exhibit E, subject to a height restriction of a maximum one
hundred and eighty five (185) feet, in accordance with the provisions of the City's Land
Development Regulations;
9. a minimum of .40 parking spaces per room on-site, in accordance with the provisions of the
City's Land Development Regulations; and
10. the Skybridge.
For the avoidance of doubt, the Lessee may elect to include in the Hotel Project ballroom and meeting
space of a size that is greater than the 5% variances provided for above without City's Approval (and
Lessee shall not be deemed to have made a Prohibited Hotel Project Change or to have failed to include
the Mandatory Hotel Project Design Elements as a result of the inclusion of such excess ballroom and
meeting space).
Page 1620 of 1842
EXHIBIT"T"
LESSEE'S [LLC OR OTHER CORPORATE] DOCUMENTS
(See attached pages)
Page 1621 of 1842
EXHIBIT"U"
FILLMORE THEATER PARKING
(See attached page)
Page 1622 of 1842
Agenda Item R 7 K
Date 5-14.yg
MIAMI BEACH HOTEL OPENINGS (ROOMS) SINCE 2015
Open
Hotel Name Address 1 Postal Code Date Rooms
1 Hotel Belleza 2115 Washington Ave 33139-1880 201709 77
2 The Julia Hotel 336 Collins Ave 33139-6903 201708 29
3 lberostar Berkeley Hotel 1610 Collins Ave 33139-3113 201708 96
2017 Total Rooms 202
4 The Plymouth 336 21st St 33139-1703 201612 100
5 Waterside Hotel 7310 Harding Ave 33141-2716 201612 48
6 Abae Hotel 1215 West Ave 33139-4307 201611 45
7 Urbanica The Meridian Hotel 418 Meridian Ave 33139-6520 201608 70
8 Oceanside Hotel 6084 Collins Ave 33140-2215 201606 100
9 Residence Inn Miami Beach South Beach 1231 17th St 33139-2302 201603 116
2016 Total Rooms 479
10 Hilton Garden Inn Miami South Beach 2940 Collins Ave 33140-4105 201512 96
11 El Paseo Hotel 405 Espanola Way 33139-8152 201512 71
12 Faena Hotel Miami Beach 3201 Collins Ave 33140-4023 201511 179
13 DoubleTree The Gates Hotel South Beach 2360 Collins Ave 33139-1604 201506 235
14 AC Hotels by Marriott Miami Beach 2912 Collins Ave 33140-4105 201506 150
15 Hyatt Centric South Beach 1600 Collins Ave 33139-3130 201506 105
16 Seaside Apartment Hotel 7500 Collins Ave 33141-6000 201504 60
17 1 Hotel South Beach 2341 Collins Ave 33139-1609 201503 448
2015 Total Rooms 1344
Grand Total Rooms 2,025
Hotel Openings Since 2015 (3 Years) Source: STR-Smith Travel Research
MIAMI BEACH HOTEL OPENINGS (ROOMS) SINCE 2013
Open
Hotel Name Address 1 Postal Code Date Rooms
1 Hotel Belleza 2115 Washington Ave 33139-1880 201709 77
2 The Julia Hotel 336 Collins Ave 33139-6903 201708 29
3 Iberostar Berkeley Hotel 1610 Collins Ave 33139-3113 201708 96
2017 Total Rooms 202
4 The Plymouth 336 21st St 33139-1703 201612 100
5 Waterside Hotel 7310 Harding Ave 33141-2716 201612 48
6 Abae Hotel 1215 West Ave 33139-4307 201611 45
7 Urbanica The Meridian Hotel 418 Meridian Ave 33139-6520 201608 70
8 Oceanside Hotel 6084 Collins Ave 33140-2215 201606 100
9 Residence Inn Miami Beach South Beach 1231 17th St 33139-2302 201603 116
2016 Total Rooms 479
10 Hilton Garden Inn Miami South Beach 2940 Collins Ave 33140-4105 201512 96
11 El Paseo Hotel 405 Espanola Way 33139-8152 201512 71
12 Faena Hotel Miami Beach 3201 Collins Ave 33140-4023 201511 179
13 DoubleTree The Gates Hotel South Beach 2360 Collins Ave 33139-1604 201506 235
14 AC Hotels by Marriott Miami Beach 2912 Collins Ave 33140-4105 201506 150
15 Hyatt Centric South Beach 1600 Collins Ave 33139-3130 201506 105
16 Seaside Apartment Hotel 7500 Collins Ave 33141-6000 201504 60
17 1 Hotel South Beach 2341 Collins Ave 33139-1609 201503 448
2015 Total Rooms 1344
18 Kaskades South Beach 300 17th St 33139-7509 201411 24
19 Beachside Apartment Hotel 7710 Harding Ave 33141-2193 201409 50
20 Eurostars Hotel Vintro South Beach 2216 Park Ave 33139-1722 201407 50
21 Hotel Croydon 3720 Collins Ave 33140-4080 201406 113
22 COMO Metropolitan Miami Beach 2445 Collins Ave 33140-4702 201403 74
23 Hotel Gaythering 1409 Lincoln Rd 33139-2108 201402 25
24 The Fritz Hotel 524 Ocean Dr 33139-6616 201402 22
2014 Total Rooms 358
25 Lincoln Arms Suites 1800 James Ave 33139-7465 201312 43
26 Pestana South Beach Art Deco Hotel 1817 James Ave 33139-7424 201302 98
27 Provident Luxury Suites Fisher Island 13 Fisher Island Dr 33109-0013 201302 11
2013 Total Rooms 152
Grand Total Rooms 2,535
Hotel Openings Since 2013(5 Years) Source: STR-Smith Travel Research
MIAMI BEACH HOTEL OPENINGS (ROOMS) SINCE 2008
Open
Hotel Name Address 1 Postal Code Date Rooms
1 Hotel Belleza 2115 Washington Ave 331394880 201709 77
2 The Julia Hotel 336 Collins Ave 33139-6903 201708 29
3 lberostar Berkeley Hotel 1610 Collins Ave 33139-3113 201708 96
2017 Total Rooms 202
4 The Plymouth 336 21st St 33139-1703 201612 100
5 Waterside Hotel 7310 Harding Ave 33141-2716 201612 48
6 Abae Hotel 1215 West Ave 33139-4307 201611 45
7 Urbanica The Meridian Hotel 418 Meridian Ave 33139-6520 201608 70
8 Oceanside Hotel 6084 Collins Ave 33140-2215 201606 100
9 Residence Inn Miami Beach South Beach 1231 17th St 33139-2302 201603 116
2016 Total Rooms 479
10 Hilton Garden Inn Miami South Beach 2940 Collins Ave 33140-4105 201512 96
11 El Paseo Hotel 405 Espanola Way 33139-8152 201512 71
12 Faena Hotel Miami Beach 3201 Collins Ave 33140-4023 201511 179
13 DoubleTree The Gates Hotel South Beach 2360 Collins Ave 33139-1604 201506 235
14 AC Hotels by Marriott Miami Beach 2912 Collins Ave 33140-4105 201506 150
15 Hyatt Centric South Beach 1600 Collins Ave 33139-3130 201506 105
16 Seaside Apartment Hotel 7500 Collins Ave 33141-6000 201504 60
17 1 Hotel South Beach 2341 Collins Ave 33139-1609 201503 448
2015 Total Rooms 1344
18 Kaskades South Beach 300 17th St 33139-7509 201411 24
19 Beachside Apartment Hotel 7710 Harding Ave 33141-2193 201409 50
20 Eurostars Hotel Vintro South Beach 2216 Park Ave 33139-1722 201407 50
21 Hotel Croydon 3720 Collins Ave 33140-4080 201406 113
22 COMO Metropolitan Miami Beach 2445 Collins Ave 33140-4702 201403 74
23 Hotel Gaythering 1409 Lincoln Rd 33139-2108 201402 25
24 The Fritz Hotel 524 Ocean Dr 33139-6616 201402 22
2014 Total Rooms 358
25 Lincoln Arms Suites 1800 James Ave 33139-7465 201312 43
26 Pestana South Beach Art Deco Hotel 1817 James Ave 33139-7424 201302 98
27 Provident Luxury Suites Fisher Island 13 Fisher Island Dr 33109-0013 201302 11
2013 Total Rooms 152
28 Gale South Beach&Regent Hotel 1690 Collins Ave 33139-3137 201212 87
29 M Boutique Hotel 6945 Abbott Ave 33141-3104 201205 13
30 Hotel Pierre 216 43rd St 33140-3207 201203 50
2012 Total Rooms 150
31 Boulan South Beach 2000 Collins Ave 33139-1989 201110 58
32 Hotel 18 South Beach 230 18th St 33139 201105 41
33 Tradewinds Apartment Hotel 2365 Pinetree Dr 33140-4610 201104 160
34 The Edgewater South Beach 1410 Ocean Dr 33139-4163 201102 49
2011 Total Rooms 308
Hotel Openings Since 2008(10 Years) Page 1 of 2 Source: STR-Smith Travel Research
MIAMI BEACH HOTEL OPENINGS (ROOMS) SINCE 2008
Open
Hotel Name Address 1 Postal Code Date Rooms
35 Soho Beach House 4385 Collins Ave 33140-3212 201010 49
36 Sunbrite Apartments 1330 Pennsylvania Ave 33139-4074 201004 48
2010 Total Rooms 97
37 The Grand Beach Hotel 4835 Collins Ave 33140-2751 200911 415
38 W Hotel South Beach 2201 Collins Ave 33139-1717 200907 347
39 Ocean Reef Suites 1130 Collins Ave 33139-4624 200906 35
40 Sense Beach House 400 Ocean Dr 33139-6614 200905 18
41 Riviera South Beach 2000 Liberty Ave 33139-1920 200901 150
2009 Total Rooms 965
42 Mondrian South Beach 1100 West Ave 33139-4760 200812 205
43 The Carillon Hotel&Spa 6801 Collins Ave 33141-3243 200811 110
44 Majestic Hotel South Beach 660 Ocean Dr 33139-6219 200801 49
2008 Total Rooms 364
Grand Total Rooms 4,419
Hotel Openings Since 2008(10 Years) Page 2 of 2 Source: STR-Smith Travel Research
Miami Beach Convention Center Hotel
Order of Manitude Revenue Impact Summary
550 Room Concept
May 2018
Over 30 years Over 99 years
2026(Yr4) Total NPV @5% Total NPV @5%
CITY
Hotel Lease:
Percentage Rent(4%Gross) $3.5m 3136m $54m $1,073m $91m
Taxes:
CRA City(thru 3/2044) 0.8m 21m Ilm 21m lam
CRA County(thru 3/2044) 0.6m 16m 8m 16m 8m
New Resort Tax(Hotel 1%) 0.6m 23m 9m 174m 15m
Resort Tax(Hotel 3%, F&B 2%) 2.3m 89m 36m 684m 60m
CDT Allocation(thru 2044) 1.1m 23m 1lm 23m lim
Property Taxes* 0.1m 15m 4m 253m 14m
Subtotal 5.5m 187m 79m 1,170m 118m
CITY TOTAL $9.0m $323m $133m $2,243m $209m
COUNTY:
Convention Devl.Tax(3%) 0.6m 45m 16m 498m 34m
Local Option Sales Tax(1%) 0.8m 33m 14m 255m 22m
Property Taxes' 0.1m 13m 4m 206m tam
Subtotal County 1.5m 92m 34m 959m 68m
SCHOOLS(Property Tax) 1.1m 45m 18m 344m 30m
OTHER PROPERTY** 0.1m 5m 2m 41m 4m
STATE SALES TAX(6%) 5.0m 200m 81m 1,532m 134m
TOTAL $16.8m $666m $269m $5,119m $444m
Notes:
'95%of general property taxes allocated to CRA through 3/2044
"Regional property tax and Children's Trust property tax
Key Assumptions:
All analysis completed on a calendar year basis
Based on 2015 brand proforma;(Marriott,Hyatt&Hilton}used in Portman 800-rm Proposal,extrapolated 550 rooms.
Year 1 through 10 based on developer proforma
Assumed 2%growth rate beginning in year 11 and beyond
NPV to 2019
Slam of County CDT allocated to City beginning in third year of hotel opening through 2044
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