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LTC 515-2023 Convention Center Hotel Project - Grand Hyatt Miami BeachMIAMI BEACH OFFICE OF THE CITY MANAGER LTC# TO: FROM: DATE: 515-2023 LETTER TO COMMISSION Honorable Mayor Dan GelfPber and Members of the City Commission Alina T. Hudak, City Mana e November 17, 2023 SUBJECT: Convention Center Hotel Project - Grand Hyatt Miami Beach The purpose of this Letter to the Commission ("LTC") is to advise you on the status of the Grand Hyatt Convention Center Hotel (Hotel) project. The Developer, MB Mixed Use Investment, LLC, (MBMU) has notified the City that additional time is necessary to secure the remaining 12% of its construction loan commitment for the $600 Million project. Accordingly, the Developer has reserved its right, in accordance with the terms of the Development and Ground Lease Agreement, to extend the date of formal possession. The Developer has invested over $20 Million of its own equity in the project and is fully committed to pursuing the remaining financing with all deliberate speed to enable it to commence vertical construction as soon as it achieves financial closing. In the meantime, construction site work continues pursuant to the Early Access Agreement to ensure the property is shovel ready when the developer is able to secure the remaining 12% of financing required. The foundation permit for the project has been issued and the vertical permit will be issued by early 2024. The Early Access Agreement work is 95% complete with only minor scopes of work remaining within the rights-of-way which will be prosecuted after the Art Basel Fair ends. The Jackie Gleason Theater work was completed and turned over to Live Nation late August, and events have recommenced since early October. For more information, please contact me or Maria Hernandez via cellphone at (786) 371-3168 or at mariahernandez@miamibeachfl.gov. o /w