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LTC 149-2003 CITY OF MIAMI BEACH Office of the City Manager Letter to Commission No. /4Q-ct:o:1, m From: Mayor David Dermer and Members of the City Commission Jorge M. GonzaleZl~~ City Manager . () RDP ROYAL P M HOTEL LIMITED PARTNERSHIP - TOLLING AGREEMENT AND JUNE 2003 RENTAL PAYMENT Date: July 1, 2003 To: Subject: Attached please find a copy ofthe executed Tolling Agreement between RDP Royal Palm Hotel Limited Partnership, the City of Miami Beach and the Miami Beach Redevelopment Agency and a copy of the base and additional rent payment for the month of June 2003 from the lessee. The City Attorney, Administration and Commissioner Jose Smith, as appointed liaison, will be meeting with Mr. Peebles on Thursday, July 3rd, 2003 to discuss the remaining outstanding issues relative to the April 30, 2003 Letter of Intent (LOI) presented to the City Commission. If you have any questions, please contact me. JMG\CAAb\rar F:\cmgr\$All\L rC-03\RDPRoyaIPalm TollAgmt&JunePymt.CMC.rar .doc attachments TOLLING AGREEMENT 'J...? "-'-)VJ\ I . This Tolling Agreement ("Agreement") is made this -L.L day of I ___ , 2003, by and between the RDP Royal Palm Hotel Limited Partnership and R. Donahue Peebles, (collectively, the "Royal Palm") and the Miami Beach Redevelopment Agency (the "Agency') and the City of Miami Beach ("the City"). The Royal Palm, the Agency, and the City shall be collectively referred to as the "Parties." WHEREAS, the Royal Palm contends it has grounds to assert, in a United States Court and/or appropriate state court, certain federal and/or state claims against the Miami Beach Agency and the City of Miami Beach concerning the Agreement of Lease among the Parties, and the circumstances surrounding the RFP issued by the City of Miami Beach for the development of a convention center hotel (the "Royal Palm's Claims"); and WHEREAS the City and the Agency contend they, or each of them, have grounds to assert claims or counter-claims against the Royal Palm in a United States Court and/or appropriate state court arising out of the same or related transactions and surrounding circumstances as those contended by the Royal Palm (the "Agency/City Claims"); and WHEREAS the Parties have engaged and wish to continue to engage in settlement discussions regarding (i) the Royal Palm's Claims that may be brought by the Royal Palm against the Agency and the City, and (ii) the Agency/City Claims that may be brought by the Agency and/or the City against the Royal Palm; and WHEREAS the Parties desire to establish a period ("the Tolling Period") during which they can consider and explore the possibility of resolving the Royal Palm's Claims and the Agency/City Claims without litigation and without concern as to the effect of the passage of time during the Tolling Period, upon claims, charges, defenses or counter claims which either party may have available as of June 11, 2003. NOW, THEREFORE, in consideration of the mutual covenants and conditions set forth herein, the Parties agree as follows: 1. The recitals above are incorporated herein by reference. 2. This Agreement shall be effective upon its execution and delivery by all Parties (the "Effective Date"). The Tolling Period shall commence as of June ll, 2003 (the "Tolling Date") and shall terminate as provided in paragraph 4, below. The period of time between the Tolling Date and the termination date shall be referred to as the "Tolling Period." 3. Whatever rights, claims, charges, defenses or counter charges or claims which either party has available for assertion as of June II, 2003 shall be fixed as of that date and the running of any statute of limitation, laches or estoppel by delay as affects either party shall be tolled during the Tolling Period. 4. Any Party may terminate this Agreement at any time by giving thirty days' advance written notice to the other Parties. This Agreement shall expire on the thirty-first (31st) day after delivery of such notice as provided in paragraph 9 below. This Agreement shall terminate automatically at such time as all of the Closing Documents, as defined in the Letter of Intent to Amend Royal Palm Crowne Plaza Resort Agreements between RDP, the Agency and the City, currently being negotiated, have been duly authorized, executed and delivered to all parties. 5. This Agreement does not constitute an admission of fact, law, and/or liability on the part of any of the Parties. This Agreement shall not be construed as an admission against interest or as a waiver of any right presently available to the Parties. This Agreement does not constitute any admission regarding jurisdiction over the Parties, venue, the Parties' standing to - 2 - bring suit, or the validity or justifiability of any of the Royal Palm's Claims or any of the Agency/City Claims. 6. This Agreement may be executed in counterparts. 7. This Agreement and the obligations of the Parties hereto may not be altered, amended, modified, extended, or renewed in any respect, except by a writing duly executed by each of the Parties and the Parties agree that this Agreement constitutes the entire Agreement between the Parties regarding the tolling of any and all statutes of limitation, contractual bars, equitable bars or other time bars purporting to limit the time within which either party may commence any lawsuit or claim against the other. 8. This Agreement and all terms, provisions and covenants contained herein are binding on and shall inure to the benefit of the Parties hereto, their subsidiaries, affiliates, parent companies, subsidiaries, predecessors, successors and assigns. 9. Any notice under this Agreement shall be in writing and shall be delivered by overnight courier, certified mail or any other method that verifies the date of delivery. 10. The Royal Palm shall serve the Agency with written notice under this Agreement to the following address: Miami Beach Redevelopment Agency General Counsel 1700 Convention Center Drive, 4th Floor Miami Beach, Florida 33139 Tel: (305) 673-7470 Fax: (305) 673-7002 With a copy to: - 3 - Joel N. Minsker, Esq. Bloom & Minsker, P.L. 1110 Brickell Avenue, 7th Floor Miami, Florida 33131 Tel: (305) 371-6800 Fax: (305) 908-3445 11. The Royal Palm shall serve the City with written notice under this Agreement to the following address: City of Miami Beach City Attorney 1700 Convention Center Drive, 4th Floor Miami Beach, Florida 33139 Tel: (305) 673-7470 Fax: (305) 673-7002 With a copy to: Joel N. Minsker, Esq. Bloom & Minsker, P.L. 1110 Brickell Avenue, 7th Floor Miami, Florida 33131 Tel: (305) 371-6800 Fax: (305) 908-3445 12. The Agency and the City shall serve the Royal Palm with written notice under this Agreement to the following address: Marty L. Steinberg, Esq. Stuart K, Hoffman, Esq. HUNTON & WILLIAMS Mellon Financial Center, Suite 2500 1111 Brickell Avenue Miami, Florida 33131 Tel: (305) 810-2500 Fax: (305) 810-2460 13. The Parties represent that they have authority to execute this Agreement and have obtained any and all approvals necessary to enter into this Agreement. - 4- RDP Royal Palm Hotel Limited Partnership Miami Beach Redevelopment Agency By: P ADC Hospitality Corporation I, as GP By: Dated: Dated: City of Miami Beach BY:--&~~ l (AAftJF\ Dated: tR J~I D1 Dated: 2-' 63 / - 5 - 61760.000001 MIAMl155352vl HUNTON WILLIAMS June 27, 2003 Via Hand Delivery Donald Papy, Esq. Miami Beach City Attorney's Office City of Miami Beach 1700 Convention Center Drive 4th Floor Miami Beach, FL 33139 HUNTON & WILLIAMS LLP I II J BRICKELL AVENUE SUITE 2500 MIAMI. FLORIDA 3313 I - I 802 TEL 305 . 810 . 2500 FAX 305.810.2460 STUART K HOFFMAN DIRECT DIAL: 305-810-2594 DIRECT FAX: 305-810-1603 EMAIL: shoffman@hunton.com FILE NO: 61760.1 Re: RDP Royal Palm Hotel Limited Partnership lease with the Miami Beach Redevelopment Agency Dear Don: In accordance with our telephone conversations, I am delivering four (4) copies of the Tolling Agreement which have been executed by R. Donahue Peebles on behalf of Royal Palm (as defined in the Agreement). In accordance with our discussions, you have agreed that upon receipt of the copies signed by Mr. Peebles, you will either have Christina Cuervo execute the enclosed Agreements and return two fully executed copies to me or, alternatively, return two of the enclosed Agreements signed by Mr. Pe'ybles and two counterpart Agreements signed by Ms. Cuervo. / I have also enclosed a check from P Royal Palm Hotel, LP in the amount of $41,291.52 representing rent due the Agency fo June, 2'003. As we have discussed and as stated by Mr. Peebles at the Commission me ti , the delivery of this check is without waiver and is with reservation of all rights. cc: R. Donahue Peebles 61760.000001 MIAMI 156060vl / RDP ROYAL PALM HOTEL, L.P. 2495 REFERENCE NO. DESCRIPTION INVOICE DATE INVOICE AMOUNT DISCOUNT TAKEN AMOUNT PAID RP-0306 June 2003 6/26/03 41,291.52 41,291.52 CHECK DATE CHECK NO. PAYEE DISCOUNTS TAKEN CHECK AMOUNT 6/26/03 2495 Miami Beach Redevelopment Agency $41,291. 5~ _,...._,.,'_..,.~..."..~"'...,."'__....~_.'",,..,....._,_.,~_~.,__"_...'"'c...__~.......,_"'_......____~_"""~______. RDP ROYAL PALM HOTEL, L.P. 100 S.E. 2ND ST., STE. 4650 MIAMI. FL 33131 UNION PLANTERS BANK MAIN OFFICE. 1221 BRICKELL AVE. MIAMI, FLORIDA 33131 63-841/670 2495 CHECK NO. 2495 DATE Jun 26, 2003 AMOUNT ***$41,291.52 Memo: PAY Forty-One Thousand Two Hundred Ninety-One ~~ Miami Beach Redevelopment Agency OF: 1700 Convention Center Drive Miami Beach, FL 33139 and 52/100 Dollars VOID AFTER 90 DAYS 1~~~...,"~ _._...._~ 11"00 21o~511" I:Ob'i'OOBlo ~lol: 11"0 ~5DO 2555bll" -;._-~,-,-,,>..-.__._......