Completion Guarantee #16
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COMPLETION GUARANTEE
This COMPLETION GUARANTEE (this "Guarantee") is made as of the 20 day
of S<.p!--{.NV\~ , 1996, by the CITY OF MIAMI BEACH, a Florida municipal
corporation (the "Guarantor"), in favor of MB REDEVELOPMENT, INC., a Florida
corporation ("Tenant").
RECITALS:
Tenant is contemporaneously herewith entering into that certain Agreement of
Lease (the "Ground Lease"), dated as of the date hereof, between the Miami Beach
Redevelopment Agency, a public body corporate and politic (the "Owner"), as Owner,
and Tenant, as Tenant, pursuant to which Tenant has agreed to lease the land (as
defined in the Ground Lease) on which the Hotel (as defined in the Ground Lease) will
be constructed.
St. Moritz Hotel Corp., Inc., a Florida corporation ("SMHC"), an affiliate of
Tenant, is also contemporaneously herewith entering into that certain Garage
Development Agreement (the "Garage Development Agreement"), dated as of the date
hereof, between the Owner and SMHC in order to document the respective rights and
obligations of Owner and SMHC relating to the design, development and construction
of the "Project", as defined in the Garage Development Agreement (the "Garage
Project").
Tenant is also contemporaneously herewith entering into that certain Garage
Easement Agreement (the "Garage Easement Agreeme'nt"), to be dated as of the date
hereof, between Owner and Tenant, pursuant to which, among other things, the Owner
has granted to Tenant an easement over the Garage Project and the land upon which
the Garage Project is to be constructed in order to provide to Tenant such parking
spaces and access, ingress and egress for pedestrian and vehicular passage and
traffic upon and subject to the terms and conditions of the Garage Easement
Agreement.
Pursuant to Article 21 of the Ground Lease, the Owner has agreed, among other
things, to (i) cause the construction of the Garage Project, (ii) construct, or cause the
construction of, the Roadway Extension (as defined in the Ground Lease) and (iii)
cause the construction of the Broadwalk Extension (as defined in the Ground Lease).
In consideration of the foregoing premises and for other good and valuable
consideration the receipt and legal sufficiency of which is hereby acknowledged,
Guarantor hereby agrees for the benefit of Tenant as follows:
MI962620.0669/18/96
1. Capitalized terms defined and used herein are used herein with the meanings
assigned herein to such terms. Unless the context otherwise requires, capitalized
terms which are used herein without definition and which are defined in the Ground
Lease, are used herein with the meaning assigned to such capitalized terms in the
Ground Lease.
2. (a) Guarantor hereby absolutely and irrevocably guarantees to Tenant the
due and punctual performance of the following: (i) to take and cause to be taken all
steps necessary to effectuate Substantial Completion (as that term defined in the
Garage Development Agreement) of the Garage Project, and, in addition thereto, the
fulfillment of all those matters and items ~et forth in Subsections 2.13(a) (excluding
payments to contractors and suppliers), (b), (c) and (d) of the Garage Dev~lopment
Agreement to be contained in the certificate (but excluding the delivery of such
certificate) required to be provided pursuant to Subsection 2.13 of the Garage
Development Agreement (the "Garage Substantial Completion") by the applicable
Completion Deadline, (ii) to take and cause to be taken all steps necessary to
substantially complete the Roadway Extension (the "Roadway Extension Completion")
by the applicable Completion Deadline or by such earlier date as shall be necessary to
effectuate Garage Substantial Completion, including, without limitation, the issuance by
the appropriate Governmental Authorities of any required certificate or its equivalent for
use of the Roadway Extension and (iii) to take and cause to be taken all steps
necessary to substantially complete the Broadwalk Extension (the "Broadwalk
Extension Completion") by each Completion Deadline applicable thereto, including,
without limitation, the issuance by the appropriate Governmental Authorities of any
required certificate or its equivalent for use of the Broadwalk Extension; provided,
however, (the "Proviso") (i) this Guarantee shall not be enforceable if the Ground Lease
shall have been terminated in connection with an Event of Default under the Ground
Lease, (ii) if Tenant has not commenced construction of the Hotel, this Guarantee shall
not be enforceable until Tenant has commenced construction pursuant to the terms of
the Hotel Development Agreement, (iii) if, after Tenant has commenced construction of
the Hotel pursuant to the terms of the Hotel Development Agreement, Tenant has
stopped such construction of the Hotel for more than thirty (30) consecutive days for
reasons other than Unavoidable Delays, this Guarantee shall not be enforceable during
the period from the thirtieth (30th) day until construction has recommenced, or (iv) if,
after Tenant has commenced construction of the Hotel pursuant to the terms of the
Hotel Development Agreement, Tenant has stopped such construction of the Hotel for
more than sixty (60) consecutive days due to Unavoidable Delays, this Guarantee shall
not be enforceable during the period from the sixtieth (60th) day until construction has
recommenced, unless Tenant can reasonably demonstrate that the construction of the
Garage Project will not be completed by the Completion Deadline. Guarantor
acknowledges and agrees that notwithstanding the Proviso, Guarantor's obligations
hereunder require Substantial Completion of the Garage Project by the Completion
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Deadline. The obligations being guaranteed by Guarantor pursuant to this
subsection 2(a), are hereinafter collectively referred to as the "Completion Obligation".
If there is a Recognized Mortgagee, then the Proviso shall not be applicable (x)
at any time prior to or during the period allowed to Recognized Mortgagee under the
Ground Lease to cure any Event of Default, provided, that if Recognized Mortgagee
does not within the time periods provided in the Ground Lease provide Owner with the
notice specified in Section 11.4(b)(1) of the Ground Lease and thereafter comply with
the other provisions of Section 11.4(b) of the Ground Lease, the Proviso shall be
applicable or (y) at any time period prior to or during the sixty (60) day period described
in the first sentence of Subsection 11.5(b) of the Ground Lease and, (z) if such
Recognized Mortgagee requests New Tenant's Documents pursuant to such first
sentence, during the ninety (90) day period described in such first sentence; provided,
however, if the Construction Work has ceased with respect to the Hotel, this Guarantee
is not enforceable until such time as Construction Work has recommenced.
Notwithstanding the preceding sentence, Guarantor acknowledges and agrees that
Guarantor's obligations hereunder require Substantial Completion of the Garage Project
by the Completion Deadline.
(b) The term "Completion Deadline" as used herein shall mean: (i) with
respect to the Garage Project, the Roadway Extension and that portion of the
Broadwalk Extension immediately adjacent to the Hotel, the date that (1) the Hotel has
been substantially completed (the "Substantial Completion of the Hotel") in accordance
with the Plans and Specifications, as certified by Nichols, Brosch, Sandoval & Assoc.,
Inc. and (2) all of the Improvements in the Hotel shall have been issued temporary
certificates of occupancy so that Tenant may occupy and use the Hotel for its intended
purpose except to the extent such temporary certificates of occupancy shall not have
been issued due to (x) Owner's failure to (A) achieve Garage Substantial Completion,
which includes providing Tenant with the "Easement" for 560 "Parking Spaces" in the
"Facility," as such terms are defined in the Garage Easement Agreement, (B) achieve
Roadway Extension Completion or (C) achieve Broadwalk Extension Completion or (y)
Owner's default of any of the terms, covenants, conditions or obligations contained in
Section 6.1 of the Hotel Development Agreement and (ii) with respect to the Broadwalk
Extension, other than that portion of the Broadwalk Extension immediately adjacent to
the Hotel, the Delay Date.
3. If at any time all or any portion of the Completion Obligation is not performed by
Owner, then, upon demand of Tenant, Guarantor shall perform such Completion
Obligation in accordance with this Guarantee. Tenant agrees to accept performance by
the Guarantor of all or any of the covenants, conditions or agreements on the Owner's
part to be performed in connection with the Completion Obligation.
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4. Guarantor expressly agrees that Tenant may, in its sole and absolute discretion,
without notice to or further assent of Guarantor and without in any way releasing,
affecting or impairing the obligations and liabilities of Guarantor hereunder: (a) waive
compliance with, or any default under, or grant any other indulgences with respect to
the Ground Lease, the Garage Development Agreement and the Garage Easement
Agreement (collectively the "Project Documents"); (b) modify, amend or change any
provision of the Project Documents, or effect any release, compromise or settlement in
connection therewith; (c) convey, assign or otherwise transfer its interest in this
Guarantee to Tenant's permitted successors and assigns pursuant to the Ground
Lease or to a Hotel Land Owner (hereinafter defined in Section 12 hereof); or (d)
assign, pledge, Mortgage or otherwise encumber its interest in this Guarantee in
connection with an assignment, pledge,. or Mortgage by Tenant or its permitted
successors and assigns in accordance with and pursuant to the Ground Lease or by
New Tenant and New Tenant's permitted successors and assigns in accordance with
and pursuant to the New Tenant's Documents as permitted pursuant to the provisions
of Section 12 hereof or by a Hotel Land Owner as permitted pursuant to the provisions
of Section 12 hereof. Notwithstanding the foregoing, (i) until the Ground Lease is
terminated, Tenant or New Tenant is granted no greater rights by virtue of the right to
assign, pledge or mortgage its interest in this Guarantee than Tenant has been granted
under the Lease, or the New Tenant has been granted under the New Tenant's
Documents, to assign,'pledge or mortgage the Tenant's Interest in the Premises (as
defined in the Ground Lease), (ii) Guarantor's obligations and liabilities hereunder shall
be deemed to be released, affected or impaired to the extent that Owner's obligations
and liabilities under the Project Documents are so waived, modified, amended,
changed, released, compromised, settled or in any other way altered, and (iii) no
amendment or modification to any of the Project Documents which increases the
liability of Owner thereunder shall be made without the express consent of Guarantor.
5. Except as otherwise expressly set forth in Section 2 and the last sentence of
Section 4 of this Guarantee, the obligations of Guarantor under this Guarantee shall be
unconditional, absolute and irrevocable, irrespective of the genuineness, validity,
regularity or enforceability of the Ground Lease or any security which may have been
given therefor or in connection therewith or any other circumstances which might
otherwise constitute a legal or equitable discharge of a surety or guarantor. This
Guarantee and the obligations of Guarantor hereunder shall not be affected, impaired,
modified or released by reason of (a) the making by Owner, any Affiliate of Owner or
Guarantor of any assignment for the benefit of creditors or the bankruptcy or insolvency
of Owner, any Affiliate of Owner or Guarantor, (b) any action taken by Owner, any
Affiliate of Owner or Guarantor in any bankruptcy or insolvency proceeding, including,
without limitation, disaffirmance of any of the Project Documents, (c) any default by
Owner under any of the Project Documents, (d) the liquidation or dissolution of Owner,
any Affiliate of Owner or Guarantor, (e) any change in or termination of Guarantor's
ownership interest in any Person, (f) the enforcement by Tenant of any of its rights
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under the Project Documents, or (g) the sale, conveyance, assignment or transfer by
Owner of all or any portion of the Land, the Property or the Facility or its interest under
the Project Documents; it being agreed that in the event of any of the foregoing, the
liability of Guarantor hereunder shall continue hereunder as if such event had not
occurred.
6. Except as otherwise expressly set forth in Section 2 and the last sentence of
Section 4 of this Guarantee, the liability of Guarantor under this Guarantee shall be
primary, direct and immediate, and not conditional or contingent upon pursuit by Tenant
of any remedies it may have against Owner or any other Person with respect to the
Project Documents, or any other agreement, whether pursuant to the terms thereof or
by law or pursuant to any other security agreement or guaranty. Guarantor and Tenant
each acknowledge and agree that this Guarantee is a guarantee of perfor'!1ance in
respect of any Completion Obligation. Anyone or more successive or concurrent
actions may be brought hereon against Guarantor with respect to the Completion
Obligation, either in the same action or proceeding, if any, brought against Owner or
any other Person, or in separate actions as often as Tenant, in its sole discretion, may
deem advisable. Guarantor may be joined in any action against Owner in connection
with any of the Project Documents solely with respect to the Completion Obligation.
With respect to the Completion Obligation, recovery may be had against Guarantor in
such action or in any' independent action against Guarantor, without Tenant first
pursuing or exhausting any remedy or claim against Owner or any other Person, as the
case may be, or their respective successors or assigns. Until termination of this
Guarantee in accordance with the provisions hereof, the liability of Guarantor under this
Guarantee shall continue after any sale, conveyance, assignment or transfer by Owner,
or any subsequent landlord under the Ground Lease, of its interest in the Land and/or
under the Ground Lease.
7. Except as otherwise expressly set forth in this Guarantee, Guarantor hereby
expressly waives: (a) presentment and demand for payment and protest of non-
payment; (b) notice of acceptance of this Guarantee and of presentment, demand and
protest; (c) notice of all indulgences under the Ground Lease; (d) demand for
observance or performance of, or enforcement of, any terms and provisions of this
Guarantee or the Ground Lease; and (e) all other notices and demands otherwise
required by law which Guarantor may lawfully waive. Guarantor also waives, but only if
and to the extent that Guarantor may lawfully so do, trial by jury in any action brought
on or with respect to this Guarantee.
8. Guarantor shall not enforce any right of subrogation it may now or hereafter have
against Owner by reason of any payments or acts of performance by Guarantor in
compliance with the obligations of Guarantor hereunder, and Guarantor shall not
enforce any remedy which Guarantor now or hereafter shall have against Owner by
reason of anyone or more payments or acts of performance in compliance with the
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obligations of Guarantor hereunder unless and until all of the obligations of Guarantor
hereunder have been fully discharged, performed and satisfied, whereupon Guarantor
shall have such subrogation rights as may be allowed under applicable law.
9. No setoff, counterclaim or crossclaim, reduction or diminution of an obligation or
any defense of any kind or nature (other than performance of the Guaranteed
Obligations) shall be available to Guarantor in any action or proceeding brought by
Tenant to enforce the Guaranteed Obligations; provided, however, that the foregoing
shall not be deemed a waiver of the right of Guarantor to assert any compulsory
counterclaim arising from a claim brought by Tenant hereunder, nor shall the foregoing
be deemed a waiver of or prejudice in any manner whatsoever of Guarantor's right to
assert any claim which constitutes a defense, setoff, counterclaim or crossclaim of any
nature whatsoever against Tenant in any separate action or proceeding. Guarantor
agrees that if at any time all or any part of any amounts at any time received by Tenant
from Owner, Guarantor, any Affiliate of Owner or Guarantor, or any other Person, as
the case may be, for or with respect to the Completion Obligation is or must be
rescinded or returned by Tenant by reason of any judgment or decree of any court
having jurisdiction (including, without limitation, by reason of the insolvency, bankruptcy
or reorganization of Owner, Guarantor, any Affiliate of Owner or Guarantor, or any other
Person), then Guarantor's obligations hereunder shall, to the extent of the amount
rescinded or restored, be deemed to have continued in existence notwithstanding such
previous receipt by Tenant and the obligation guaranteed hereunder which was to have
been discharged by such rescinded or restored amount shall continue to be effective or
reinstated, as the case may be, to the extent of such amount, whether or not this
Guarantee has terminated, and the obligations of the Guarantor in this sentence shall
survive the termination hereof.
10. The rights and remedies afforded to Tenant in this Guarantee are cumulative
and are not exclusive of any other right or remedy against Guarantor or any other
Person provided by law, in equity or under any other agreement or instrument and all
such rights and remedies may be exercised singly or concurrently. No delay or
omission by Tenant in exercising any such right or remedy shall operate as a waiver
thereof. No waiver of any right or remedy hereunder shall be deemed made by Tenant
unless in writing and shall apply only to the particular instance specified therein and
shall not impair the further exercise of such right or remedy or of any other right or
remedy of Tenant, and no single or partial exercise of any right or remedy hereunder
shall preclude any other or further exercise thereof or of any other right or remedy.
11. If any provision of this Guarantee or any portion thereof is declared or found by a
court of competent jurisdiction to be unenforceable or null and void, such provision or
portion thereof shall be deemed stricken and severed from this Guarantee, and the
remaining provisions and portions thereof shall continue in full force and effect.
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12. This Guarantee shall inure solely to the benefit of (i) Tenant, and its permitted
successors and assigns pursuant to the Ground Lease, (ii) any New Tenant that enters
into New Tenant's Documents in accordance with the provisions of Section 11.5 of the
Ground Lease, and such New Tenant's successors and assigns permitted pursuant to
the New Tenant's Documents, and (iii) if Tenant or its permitted successors or assigns
exercises the Purchase Option (as defined in the Lease) or the option to purchase the
Owner's Interest in the Premises (as defined in the Ground Lease) pursuant to the New
Tenant's Documents or otherwise acquires title to the Owner's Interest in the Premises,
Tenant and its successor or assigns as owner of Owner's Interest in the Premises (the
"Hotel Land Owner"); and, shall be binding solely upon Guarantor, its successors and
assigns. This Guarantee may be (x) assigned, pledged, mortgaged to a Mortgagee or
otherwise encumbered in accordance with and pursuant to the Ground Lease by
Tenant or its permitted successors and assigns in connection with an assignment,
pledge, Mortgage, or other encumbrance by Tenant or its permitted successors and
assigns in accordance with and pursuant to the Ground Lease of Tenant's Interest in
the Premises, and (y) assigned, pledged, mortgaged to a mortgagee or otherwise
encumbered in accordance with and pursuant to the New Tenant's Documents by New
Tenant and New Tenant's permitted successors and assigns pursuant to the New
Tenant's Documents in connection with an assignment, pledge, mortgage, or other
encumbrance by New Tenant or New Tenant's permitted successors and assigns in
accordance with and pursuant to the New Tenant's Documents of New Tenant's
leasehold interest in the Land, and when so assigned, pledged, mortgaged, or
encumbered, Guarantor shall be liable to the assignees of this Guarantee without in
any manner affecting the liability of Guarantor hereunder. This Guarantee may also be
assigned, pledged, mortgaged or otherwise encumbered by the Hotel Land Owner in
connection with an assignment, pledge, mortgage or other encumbrance by the Hotel
Land Owner of its interest in the Land, and when so assigned, pledged, mortgaged or
otherwise encumbered, Guarantor shall be liable to the assignees of this Guarantee
without in any manner affecting the liability of Guarantor hereunder. Notwithstanding
the foregoing, until the Ground Lease is terminated, Tenant or New Tenant is granted
no greater rights by virtue of the right to assign, pledge or mortgage its interest in this
Guarantee than Tenant has been granted under the Lease or New Tenant has been
granted under the New Tenant's Documents to assign, pledge or mortgage the
Tenant's Interest in the Premises.
13. This Guarantee shall be governed by and construed in accordance with the laws
of the State of Florida applicable to agreements made and to be wholly performed
within the State of Florida.
14. This Guarantee shall constitute the entire agreement of Guarantor with Tenant
with respect to the subject matter hereof. This Guarantee may not be modified or
amended, except by an agreement in writing executed by all of the parties hereto.
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15. In order to induce Tenant to enter into this Guarantee, Guarantor represents and
warrants to Tenant that as of the date hereof:
(i) Guarantor is a municipal corporation duly validly existing, and in
good standing under the laws of the State of Florida;
(ii) Guarantor has the requisite power and authority to enter into and
carry out the terms and provisions of this Guarantee, and the
execution, delivery, and performance of this Guarantee have been
duly authorized and approved by all requisite action;
(iii) This Guarantee constitutes a valid and binding obligation of
Guarantor enforceable against Guarantor in accordance with its
terms (subject to any bankruptcy, insolvency, reorganization,
receivership, moratorium or similar laws affecting the rights and
remedies of creditors generally, and subject to the effect of general
principles of equity, whether applied by a court of law or equity);
(iv) Guarantor's execution and performance of this Guarantee will not
result in a breach or violation of, or default under, any
Requirements applicable to Guarantor or any agreement, order,
commitment, judgment, or decree by which Guarantor is bound;
(v) The person executing this Guarantee on behalf of Guarantor has
all requisite authority to do so, as a duly authorized signatory of
Guarantor; and
(vi) Guarantor is solvent and will not be rendered insolvent by reason
of this Guarantee.
16. Whenever it is provided herein that notice, demand, request, consent, approval
or other communication shall or may be given to, or served upon, either of the parties
by the other, or whenever either of the parties desires to give or serve upon the other
any notice, demand request, consent, approval or other communication with respect
hereto, each such notice, demand, request, consent, approval or other communication
(herein referred to in this Section 16 as a "Notice") shall be in writing and shall be
effective for any purpose only if given or served by (i) certified or registered U.S. Mail,
postage prepaid, return receipt requested, (ii) personal delivery with a signed receipt or
(iii) a recognized national courier service, addressed as follows (or to such other
addresses as a party may direct by a Notice to the other party hereto; provided,
however, that the number of parties to receive such Notice, together with copies
thereof, shall not be increased):
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if to Guarantor:
City of Miami Beach
City Manager
1700 Convention Center Drive
Miami Beach, Florida 33139
with a copy to:
City of Miami Beach
City Attorney
1700 Convention Center Drive
Miami Beach, Florida 33139
and with a copy to:
Squire, Sanders & Dempsey
Two Renaissance Square
Phoen~,Arizona 85004
Attention: Richard F. Ross, Esq.
if to Tenant prior to the Hotel Opening Date:
MB Redevelopment, Inc.
407 Lincoln Road
Suite 6-K
Miami Beach, Florida 33139
Attention: Eric Nesse
if to Tenant on or after the Hotel Opening Date:
MB Redevelopment, Inc.
c/o Loews Miami Beach Hotel
1601 Collins Avenue
Miami Beach, Florida 33139
Attention: General Manager
with a copy to:
Loews Hotels Holding Corporation
667 Madison Avenue
New York, New York 10021
Attention: Corporate Secretary
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and to:
Hughes Hubbard & Reed
201 S. Biscayne Boulevard, Suite 2500
Miami, Florida 33131
Attention: William A. Weber, Esq.
Any such Notice may be given, in the manner provided in this Section, on behalf of any
party by such party's attorneys as designed by such party by Notice hereunder. Every
Notice shall be effective on the date actually received, as indicated on the receipt
therefor or on the date delivery thereof is refused by the recipient thereof.
18. The acceptance by Tenant of this Guarantee shall constitute its acceptance of
the terms and provisions hereof.
19. Notwithstanding anything to the contrary contained in this Guarantee, if, and only
if, the Requirements so require, the obligations of Guarantor under this Guarantee shall
be required to be satisfied solely from Non-Ad Valorem Funds (as hereinafter defined)
budgeted and appropriated by the City on an annual basis as described in this Section
19. In which event, Guarantor hereby covenants and agrees to appropriate in its
annual budget, or by amendment thereto, if necessary, from Non-Ad Valorem Funds
lawfully available in each fiscal year, amounts sufficient to satisfy all of its obligations
under this Guarantee and under that certain Guarantee dated the date hereof given by
Guarantor to MB Redevelopment, Inc. with respect to the obligations of the Agency
under the Garage Easement Agreement (the "Garage Easement Guarantee"). Such
covenant and agreement on the part of the Guarantor to budget and appropriate such
amounts of Non-Ad Valorem Funds shall be cumulative to the extent not paid, and shall
continue until such Non-Ad Valorem Funds or other legally available funds in amounts
sufficient to satisfy all of Guarantor's obligations under this Guarantee and under the
Garage Easement Guarantee shall have been budgeted, appropriated and actually
paid. Subject to the provisions of this Section 19, such covenant and agreement on the
part of the Guarantor to budget and appropriate such amount of Non-Ad Valorem
Funds as security for the performance of all of its obligations under this Guarantee shall
in no way be construed as limiting the liability of Guarantor under this Guarantee.
Notwithstanding the foregoing covenant and agreement of the Guarantor, the
Guarantor does not covenant to maintain any services or programs now provided or
maintained by the Guarantor, which generate Non-Ad Valorem Funds.
Such covenant and agreement to budget and appropriate does not create any
lien upon or pledge of such Non-Ad Valorem Funds, nor does it preclude the Guarantor
from pledging in the future its Non-Ad Valorem Funds, nor does it require the Guarantor
to levy and collect any particular Non-Ad Valorem Funds, nor does it give MB
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Redevelopment, Inc. a prior claim on the Non-Ad Valorem Funds as opposed to claims
of general creditors of the Guarantor. Such covenant and agreement to appropriate
Non-Ad Valorem Funds is subject in all respects to the payment of obligations secured
by a pledge of all or portions of the Non-Ad Valorem Funds heretofore or hereinafter
entered into (including the payment of debt service on bonds and other debt
instruments). However, the covenant and agreement to budget and appropriate in its
general annual budget or amendment thereto for the purposes and in the manner
stated herein shall have the effect of making available in the manner described herein
Non-Ad Valorem Funds and placing on the Guarantor a positive duty to appropriate and
budget, by amendment, if necessary, amounts sufficient to meet its obligations
hereunder and under the Garage Easement Guarantee; subject, however, in all
respects to the restrictions of Section 166.241 (3), Florida Statutes, which provides, in
part, that the governing body of each municipality make appropriations for eagh fiscal
year which, in anyone year, shall not exceed the amount to be received from taxation
or other revenue sources; and subject further, to the payment of services and programs
which are for essential public purposes affecting the health, welfare and safety of the
inhabitants of the City or which are legally mandated by applicable law. To the extent
Requirements do not require that the obligations of Guarantor hereunder be satisfied
solely from Non Ad-Valorem Funds as described in this Section 19, Tenant shall have
all the rights and remedies available at law or in equity under the laws of the State of
Florida."
The term "Non Ad-Valorem Funds" shall mean all revenues of the Guarantor
derived from any source other than ad valorem taxation on real or personal property,
which are legally available to make the payments required herein, but only after
provision has been made by the Guarantor for the payment of all essential or legally
mandated services.
Guarantor hereby covenants and agrees not to consent to the issuance by
Owner of any additional Tax Increment Financing Bonds relating to the City
Center/Historic Convention Center Village Redevelopment and Revitalization Area ("TIF
Bonds") until such time as Garage Substantial Completion has occurred, except (i) to
the extent proceeds of such TIF Bonds are applied directly to Garage Substantial
Completion or (ii) to fund other improvements related to or in support of the Hotel or
Site 1-B (as defined in the Ground Lease).
20. This Guarantee shall terminate, and Guarantor shall be released from any and
all further obligations and liabilities hereunder, at such time as the Completion
Obligation has been performed (except as otherwise provided in Section 8 or Section 9
hereof) .
21. This Guarantee and the obligations of Guarantor hereunder are solely corporate
obligations of the Guarantor, and no personal liability whatever shall attach to, or is or
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shall be incurred by, the incorporators, stockholders, officers, members, partners,
holders of other ownership interests, directors, elected or appointed officials (including,
without limitation, the Mayor and commissioners of the Guarantor) or employees of the
Guarantor, or of any successor corporation or other successor entity, or any of them,
under or by reason of the obligations, covenants or agreements contained in this
Guarantee or implied therefrom; and any and all such personal liability, either at
common law or in equity or by constitution or statute, of, and any and all such rights
and claims against, every such incorporator, stockholder, officer, member, partner,
holder of other ownership interest, director or employee, as such, or under or by reason
of the obligations, covenants or agreements contained in this Guarantee or implied
therefrom, are hereby expressly waived and released as a condition of, and as a
consideration for, the execution and delivery of this Guarantee by Guarantor.
EXECUTED as of the day and year first above written.
ATTEST:
By: R0~+ V~
Robert Parcher
Name: ro~t- YQ6ZclJ'€Z
City Clerk
~ :' L' ~
..0
;", '"It
BY~~'
Date 0/ be) /f -6
,
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