Purchase Money Promissory Note 2Q 23 - 32728
at soo,000.00 � oocoeer 2a,2ozs
Miami Beach,Floritla
PURCHASE-MONEVPROMISSORYNOTE
I FOR VAW E RECENEO, antl sub�ect lo the tertns and conditions set�orth�erein, Miami Music
Pestival, Inc,a Plodda nol la profil corporatlon tlba Miami Beach Classical Music Festival(Me"MakeY'),
�ereby uncanCflionally pro�mses to pay lo the ortler of The City of Miami Beach,FlonCa,a Flotlda munidpal
corpwation,or tts assigns(t�e"Holtler,'ard rogelner wilh tlie Maker,the"Parties'),tl�e prinapal amount
of One Million Five Hundred Thousantl antl No/700 DoIWrs (51,500,000.00), logeNer wilh all xcrueE
Interesl ihereon as provitled in this Sewred Prom"ssory Nole Qhis"Note"J.This Note is ihe pmmissory iwte
contemplaled by ihat certain Pumhase-Money Security ABreement tlaletl the Eale hereoi(ihe"Securky
Agreemenf')by and helween Holder,as lentler,and Maker,as granbr.
1. Def'nitionc:ln[erorotation.
, (a) Capital¢ea tertns usetl herein and not otherwise definetl in Ihis Nole shail have the
meaning assigned ihereto in ihe Security Agreemenl. In the event of a confiicl belween the defmi�ion ot
capitalizeC LLrms dMmed herein antl the tlefniGon o( those ume capital¢ed lerms in Ihe Sewtlry
Agreemen�, the tlefinifions in Ihis Noie shall coMrol. The following atltltlional terms when usetl In �h'x
AgreementsM1all have the following meanings:
"Applicable Rale means lhe rale equal to One antl One-Half Percent(7.5%). .
"Business Day"means a tlay other than a Saturtlay, Suntley, or oUler tlay on which
canmercial banks in M2mi eeach,FL are aut�oriud or requiretl by law lo close.
. "CityManager meanslhecNefadministrativeoffinerofiheCiry,or�isorhertlesignee.
"DebT of�he Maker, means all(a)indebtedness lo�bortowed money;@) o�ligations
for Me tlefertetl purchase price af praperty or services,ezcept tatle payables atlsing in Ihe or0inary
ccurse of business; (c) oWigatior�s evidenceC by notes, bonds, deDenlures, or o0ier similar
inaWmenis; (d)obligations as lessee under capilal leases; (e)obigations in respeG of any inlerest
rale swaps, currency exchange agreements, commotliry swaps, caps, collar agreemenis, w similar
arangements enleretl mto by the h4aker provking for proteclion against ilucWahons in interest rates,
currency ezchange 2tes,or wmmodiry prices,or Ihe ezchange of nominal inlerest obligafiort,eiMer
generally or untler apecifc contingencies; (� obligations under acceptance facilities and IHlers of
credit: (g) guarenties, entlarsemenls (o�her than for mllection ar tleposit in ihe orAinary course ot
business),and other mnlingent ablgetions to purchase.to pmvitle tunds for payment,to suppty tunCs
to mvest in any Person, or otherwise lo assure a aetlitor againsl Iws, in each case, in resped of
indeWetlness sel out in clauses(a)through(p of a Person olher ihan the Maker.antl(h)indeDtedness
sM out In cWuses(a)thraugh(g)of any Person other than Maker sewretl by any lien on any asse[of
�he Make�,whetl�erp�not such mdebtetliceas has been assumetl by the Maker.
"OetaulP means any of the events specified in Sectlon 9 which constitute an Evenl of
Oefaull or which, upan ihe giving o(notice, Ihe lapse of time, or both, pursuant to Sectbn 9,would,
unless wred a waiveQ become an Event of�efault.
"DefaW[ Rate" means eighteen percent (18%) per annum (but not mwe ihan ihe
highesl rale permilteE by law)."Event oT OefaulP'has the meaning set fotl�in Section 9.
"GovemmenWl Aulhority" means the govemment of any nation w any polilical
subdivision thereof,whether at Ihe national,slale, tertita�al,provincial,municipal o�arry oUer level,
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IanG any agency, aut�oriry, insVumentaliry, regulatory botly, court, cent2l bank ar other entity
� exercising ezecutive,IegislaVve.juCiaal,taxing,regulaWry or atlminisiretive powers orfunctions of,or
� pertaining to,government.
••Law' as to any Person, means Ue certifiwte of inmrporation antl by-laws or other
organizalional or gwerning Eocuments af such Person,and any law(inclutling common law),staWte,
ordinance, treaty, mle, regulatbn, ortler, tleaee, jutlgment. writ, injunctlon, settlemen� agreement,
requirement or tletertninalion of an ar�iVator or a couR or otlier Gwemmenlal Aulhoriry,in each case
applba�le lo or bintling upon such Person w any of ds properry or to whic�such Perwn or any oi its
property Is subject.
"Lien"means,with respect to any asset, any rtwrtgage, lien, pleCge, charge,secunry
interest w encumbrance of any kintl In�espect of such asset. For Ne purposes of ihis hgreement,a
Person shall be deemetl W own subject to a Lien any asset which it has acquireE or hoks subject to
t�e inlerest of a ventlor or lessor untler any conditional sale agreemen�, rarytal kase or olher title
reten6on agreemeN relating lo such asset.
'Loan �ocuments" means fhis Pumhase-Money Promissory Note, l�e Secunry
Agreement antl any other tlocumenl executetl in connection with the fo�egoinq.
'MakeY'has the meaning set forth in�he inirotlucrory pa2graph.
'Publie Bmefit CommitmmP means the public benefils to be pmvitletl by Maker as
described in Exhibit A, at�aheE hereto antl inmryaatetl herein, which constiWtes material
conaitleration to hdder for Ne making of ihe Purchase Money Loan on favo2ble�ertns.
- 'Purchase Money Loan"means lhe loan in Me amounl of One Million Five Hundretl
Thousand antl No/100 DWlars($1 500,000.00)made by lhe Holtler to Maker and evitlenced by ths
Nole.
'Matetlal Advene EttecT means,wLLh r�p�wt to the Maker,a material ativerse ettect �
on[he pmperties,business,prospects,operalions or cofMOion(fnancial or otherwise)of tlie Maker or
the ability o(the Maker�o pertorm iR obligations untler the Loan�ocuments or any material contaccs.�
"Maturily Dale"has Ihe meaning sel fohh in Sec[bn 2(a).
'Note'has the meaning set forth in the inirotluc[ory paragraph.
"HOItleP has Ne meaning se[totlh in the introductory parapaph_
'Parties"has the meaning set btlh in the introtluctory paragraph.
"Penon' means an intliviAual, coryoration, partnership, IimiteC liabiliry canpany,
associaUon, trust, business Vusq jolnt venNre, join� srock wmpany, pool, synCicate. sole
propnecwship, unlncorpo�eteC organization. Govemmentei Authotlty or any other lorm of enttty or .
group thereof.
"Secutlty AgreemanT'means�he Secuhty.�qreement,tlateC as of ihe tlate hereof,by
antl between the Maker antl Holtler.
(b) In�em�etation.For purposes of Ihis Note(i)Ihe words"inclutle;"'inclutles;antl"inclutling"
shall be deemetl to be/ollowetl by ihe words"wilhout limitation';(ii)lhe wortl"of Is not exGusive;antl(iii)
the wortls "herein," "hereof;' "hereby," "herelo," and 'hereunGel' refer lo this Note as a whole. The
definitions given for any tle(ned terms in this Nole shall apply eQualty to boN Ihe singular antl plural(orms
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I of�he terms tlefinetl. Whenever ihe conte# may require, any pmroun shall inclutle ihe cortesponding
mascullne, feminine, anE neuter torms. Unless t�e context otherwise requires, references herein to: (a)
Schetlules, Echibits, antl SeMions mean the SeheCules, Ezhibits, anG Sections ot Ihs Note; (Y) an
agreement, instrument, or Wher tlwument means wch agreament, instmmenq or other tlocument as
emended,supplementeQ and modified hom time b time lo lhe ettent permittetl by!he p'ovisions Ihereof;
and(z)a stafute means such slatufe as amenaed from tlme b time aM inclutles any successor legisla�ion
ihereto antl any regWa�ions promulga�etl Ihereunder.This Note shall Ce consbued without regartl �o any
i presumpnon or rule requiring consUuction or interyreta[ion aBainst t�e party drePong an inslrument or
causing any instrumentto be EraRed.
2. D' b t /P rci� se Monev Loan Procaeds� Princ'oal and Interest Pavment Offies:
Oot'onal Preoavmenb:Aeealerotlon.
(a) Reauest fot DisEursemenL A�the time this Note is Celiveretl �y Maker to Holtler, Maker
shall inclutle a srenetl antl notarizetl �isbursement Requesl (in Ihe (orm a[tachetl as Exhi it B antl
incorpwatetl herein),along wi�h(i)the demizetl list oi Projed Asse�s ihat�ilt consfiWte Ihe Collateral untler
ihe Secuny Agreemerit anC (ii)ail approptlate supporting tlocumentation, including,without limitation, a
tlebiletl invoice(s)Irom the equipment supplier wM will he selling the Pmject Assets lo Maker, antl (iii)
wartanry information relating to ihe Prolect Assets (cdlectively,the Items itlentified in(i),(iq,and(iii),the
Supporting Materials'), The Disbursement Requestwill inclutle a certification by Maker Ihat the Purchase
Money Loan procee0s will be usetl eolery for purchases oi equipmen( materials a personal property that
qualiry as a eapHal expentliNre pursuant IOTreas.Reg.Sedion 1.150-t(b)antl rNaLLW I.R.S.guidance,as
determinetl by Me City in its sole discretion, antl tlowmenfation ihat such equipment, materials andlor
personal pmperty shall be deliveretl �o Maker in Miami Beach, Flontla, as conditions precedent to
processing oRhe�Isbursemenl Request.
(b) Pavmenl Dates. E�ccept as ofherwise proNCetl herein,tM1e entire unpaid principal balance
oi ihis Nole shall become Gue ana payable on the fifteenth(15'^)anniversary of ihe tlate of Ihis Note Qhe
'Maturiry Oate"j. Notwithstantling the foregoing,(a)so long as there has been no Delault undereny ofthe
pmvisions of ihis Nole antl(b)upon appmval without ezception by Ne Ciry Manager or his or he�tlesignee
ot�he Annual Report submitletl by Maker puBuant la Sectlon 7G)� belay.lhen Ne Ciry shall forgive One
HunCred Thousand Dollars ($100,000)of the principal balarme per year retmac[fve lo I�e anniversary of
ihe tlate o(this Note lhat immetliately precedes the Annual Report in question.
(c) Omittetlwithoutimolication.
(tl) Acceleration Uoon Even�of Defaul�. Noh+ithstantling anyfhieg herein Io the conl2ry,Me
enYre p�incipal amaunt of lhe Purc�ase-Money Loan,togelher with all accmed interest thereon arW all other
amounts payable under�his No�e,shall become immedia�ety due antl payable upon�he occurrence o(an �
Even�of�eiault.
�. SecuriN AareemanL The Maker's pertortnance of its obliga�ions hereunder is secured by a first
pnonty securiTy interest in the Collateral spe�etl in�he Secunry AgreemenL For the avokanee of doubt,
none of Maker's o�ce�s, tli�ectors,employees or agents shall have any personal liabllily under�his No[e
unless a court of competent)uristlictlon tleterminss any such individual has�ren inwlved in baud.
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(a) ImerestRate.Ezceplas otherwise provitletl herein,soiong as ra Defaultexisis untleror
with respecl to Ihis Nde,ihe outstanding ptlncipal amount of ihis Note shall bear interest at the Applicabla
Rate from the tlale ihe Ponds are paitl4o Maker untltihe enlire pnncipal balance of thh Note is paid in NII,
I� w�ether at maWnly,upon acceleretion,by prepayment,or otherxise.
� (E) Default Interest. If any amount payabk hereuntler is not paiG whan due(vrit0out regard to
any applicable grace penods�, whether al statetl maturity, by acceleration, or olhe�wise, such overtlue
amowt shall bear interes[at Ne�efault Rate from I�e tlate ot such non-payment uNll such amount Is paid
in full. In adddioq upon DefaNt of this Note or untler any of the Loan�acummts,interest shall accrue antl
be payable at lhe OefaWt Rate- �
(c) ComoutaCon ol Interesl.Interesl shall be calwlatetl on the basis of a ihree huntlretl sixty
(360) Gay year and shall be charged anly on Ihe sums oulstantling fmm the date the same shall be
tlis6ursed until the tlate of acNal repayment.
(tl) IMerest Rate Limi�ation. If at any fime antl tor any reason wha�saever, Ihe inlerest rate
payable on the Purchase Money Loan shall exceetl Ne maximum rate of interest permiltetl to Ce chargeE
by the Holder to ihe Maker under applicable Law,Nat poNon of each sum paid altnbufable�o tha[portion
of suc0 irneresl rele t�al ezceetls ihe mazimum rate of Interest permitMtl by appiicaEle Law shall be tleemetl
a vduntary prepayment of principal.
5. Pavment M¢chanies.
(aJ Mnual Inlerest Pavmen6- Commencing an t�e 3P'day MOcloDer,2�24 antl continuing
on Ihe 31°Oay of October in each antl every year thereafier urilll ihe MaWrity Date,Make s�all pay annual
inslallments of accrued interesl on the unpaid amowt of Principal owing hereuntler_
(b) Mamer o(PavmerRs.All paymants of inleresl and pri�ipal shall be matle in lawful money
of tt�e United Stales of Amenra no later than 12:00 PM EDT an the tlate on which suc�paymen[is due Cy
cashiefs check, certi(etl check,or by wire iransfer of immedately available funtls to ihe Holtler's account
at a Gank specifietl by Ihe Holtler in wri�ing to the Maker From time lo time.
(c) Aoolication of Pavmenis.All paymenis matle under tMs Note shall be applied Iirsf to the
payment ot any fees or charges outstantling hereuMer, secontl to acaueG interest, antl fhird to �he
paymentof Ne pnncipal amount outstanding untler thls Note.
(tl) 0usnessDavConvention.Wheneveranypaymen[�obematlehereundershallbedueon
a tlay Ihat is not a Business Day,such payment shall be made on ihe next succeeding Business Day antl
such eztension will be taken in�a acmunt in calculating Ne amounl of interes�payable untler this Note.
(e) Rescissiw of PavmenLs_If at any�ime any payment matle Oy Ne Maker untler mis Nole is
resdntled or must otheiwise be rastored w reNmed upon Ue Insdvency,bankrup[cy,or reorganization of
�he Make�or otherwise,�he Maker's obligafon to rtwke such payment shall Ee reinata�etl as�hough such
paymen�had not been matle � .
6. Reuresentatlons antl Wamdnlies.The Maker�ereby represents antl warranls to Ihe Holder on
the tlate hereof as follows:
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I (a) Eaislence: Power anC AuthonN: Canoliance with Laws_The Maker (i)is a no6for-proft
I corporatim duly organized,valitlly existing,antl in gootl stantling under Ihe laws ofthe Sta[e of FlorMa,pi)
� has the requisite paver antl authority, antl the legai nght, ro own, lease,and operate its propenies antl
asse4s antl to wnduct its business as il is now being contlucteQ to ezecute antl tleliver N's Note and Ne
Seeunry Agreement,antl to pertorm its obliga0ons hereuntler aM ihe�euntle�,antl Qil)Is In compliance wit0
all Laws.
(b) Authonzafon� Executlon and Oeliverv. The execulion antl tlelivery of ihis Note antl ihe
Sewrity Agreemenl by ihe Maker and�he per/ormance o(i�s obligatbns hereuMer antl thereunder have
I been Cuty authorized by all necessary corporete action in acwrtlance with all applicable Laws.The Maker
has tluly executea ana aeliveretl this Note an0 ihe Secunry AgreemenL
(c) No Aoorovals. No mnsent or authoriution of, fiing wiN, nolice to, ar other act by, or in
respect af,any Govemmental Authoriry or any oMer Person is requiretl in arder for Me Maker to ezewte,
aeliver,or peAorm arry o(i�s obliga�ions unCer Ihis Note or ihe Security Agreemen�.
(tl)� NOViolations.iheexecutianarMCeliveryofihisNoteantltheSawnryABreementantlthe
consummation by ihe Maker of the transactions contemplateC hereby and ihereby do not antl will not(i)
vidate any Law appfcable[o ihe Maker or by which any of its properties or assets may be bounQ or(ii)
wnsGlute a tlafaWt unde�any material agreement or contract by which�he Maker may be bountl.
(e) Enforceabilltv.Each of�he Note anC the Secur'M1y Agreement is a valiq legal, and bindng
obligation o(the Maker,enforceable against the Makerin accortlancewith i4a terms,except as enforceability
may be limi�ed by applicab�e bankruptcy,insolve�y,reorgankatioq moratorium, or similar laws aftecting
Ihe enforcemenl of cretli�ors'righ�s generoAy antl by gene2l equitable pnnciples (whether enfwcemen�is
sought Ey pmceetlings in equi�y or a[law).
(f) No LNaation. No action, suit, litigation, investlgaGon, or proceatling of, or bebre, any
arbdretoror Govemmental Authonry 6 penGing or,tothe knowkdge of the Maker,ihreatenetl by oragainst
ihe Maker or any of its property or assets(i)with respect ro the Nole,fhe Secu�ity Agreement,or any of Ihe
tansactions contemplate0 hereby or ihereby or(il)ihat would reasonabry be ezpected b have a Material
Adverse Effec[on ihe Maker's Gnancial contlition or Me ability of the Maker la perlorm its obligalans un0er
ihis Nole or lhe Secunty Agreement .
7. A(firmative Covenanis. Until all amounts outstantling untler ihis No[e have Geen paid in(ull,the
Maker shall:
(a) Maintenance of Existence. (i) Preserve, renew, and mainlain in full Porce and eHect i5
organiutlonal'ezislence antl(ii)�ake all reasonable actbn to mainbin all righis,privile9es,antl fianchises
� necessary or tlesirable in Ihe normal conduct of its business.
(�) Comoliance.GomptywilhallLawsapplicabietoRanAits�usinessantlltsobliga�ionsuntler
its material contracts antl ag2emen�s.
(c) . Pavmenl Obliaations. Pag Eischarge,or otherwise satisry at or before maWnry or before
they became delinquent,as ihe casa may be,all its material obligations of whatever naWre,except where
�he amount or validity ihereof is currently being mntested In gooG faith Dy apPmPriate proceetlings.
(tl) Notice of Evenls of�efault.As soon as possi�le antl in any event within two(2)Business
Days after it becomes aware tha[an Event of�efault has occurreq notity fhe Holtler in writing of the nature
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antl extent of such Event of Detault antl ihe action, tl any,it has taken or proposes to take with respect to
such Event of Defauit.
� (e) Financina Sfalements_The Maker agrees to assist the Holder In connection with the fling
i o(any financing statements necessary to pertect HOItleYs se<unty irrterest in Ne Collaterel in all applicaCie
'i Jurisdictions, inclutling withou[ limita(wn by providing any information required lo be includetl in such
�I (nandng statemen�s �
I (� Seoarate Bank Accountfor Loart Pmceetls. Maker shall keep Purchase Money Loan
proceeds in accoun�s in establis�etl Fbnda banks,cretlit unions or savings antl loan associations whose
I kentiry shall be disclosetl in wn�ing,with the itlentity anG title of inOiNtluals whom lhe Maker authorizes to
�� withtlraw o�write checks on Purchase Money Loan pmceeAs hom the banking institution identifetl in the
bank xcount tlisclosure. _
(g) tlse oF Purchase-Monev Loan Proceetls. Nlaker s�all use the Purohase-Money Loan
proceeds wlery ro purchase the ProjectAssets and lo pertorm a public purpose thmugh implemeination of
the Project. Withou�limiting lhe foregoing,the Purchase-Mmey Lwn proceetls may be usetl wlely to pay
for capital expenditures as tlefined in Treas.Reg.Sectlon 1.1504 antl may no�Ge for any o��er puryose
indutling to pay for opereting expenses,atlinary manimance and repairs,or�o acquire equipment having
a usetul life of less ihan one year. Maker shall use commemially reawna0le best effotls to complete its
acquisition ol the Project Assets by or before Decembar 1,2023. If t�ere are any funds disbursed to Maker
Ihat are not used lo arqulre ProjectAssets as idenUfetl in Ezhibi[A lo Me Sewriry Agreement,Maker shall
promp0y reNm such lunds to Holder or oMain HaldeYs pnw wnt[en consent ro acqulre aCdilional,specifc
Prolect Assels that will furiher enhance the PrqecL FuMher, in the event lhaf the Maker uses any porfion
of�he Purchase Money Loan pmceeds for cosls nol associateE with the Prolect or that tlo not constitWe
capiWl expenditures (collectivery,"Non-PmJed Cosis")antl Me Maker refuses or is unable to replace Me
amount so used into the seg2gatea bank account required purwant b Sectlon 7(e), above,vrilhin ihirty
(30)calentlar days fran ihe da[e such unautlwnzetl use is tliscovereQ Ihen the City Mareger may Aemand
the immetllate return of such portion of Me Purchase Money Loan pmceeds as was used�o pay for Non-
Pmject Cosls. The City Manager may also instdule a momronum on applications from�he iNaker.to Ciry
grenis pmgrams for a penotl ol up ro one(1)year.
(h) MantenanceofPro'ectAsseGs'Insurance. UntiltheMaWrttyData,Makershall(a)mafnNatn
and repair lhe Project Assets, (bJ use Ihe Project Assets for the beneft o(the public antl malntain all
insurarice requiretl by lhe Loan Documenis. Alihough Meker shall w! �ave an aKrmative obligation to
upgrade a replace equipmenl,to the extent Maker acquires equipment thatwill Ce used in substitution of
Collateral ihal is or become obsolete or irteparable,Nen such equipmentwill be included in lhe Collateral
for all purposes.
(i) PublicBen�tCommitmenl FromsuchtimeasMakershallhaveacquiretlmatetialProject �
Assets �i e., such Project Assets as are necessary to �os! evenis in (urthera�e of the Pmject in a
meaninghil manner)through lhe MalunTy Date,as a malenal crositleration for�he making of the Pumhese
Money Loan on fhe favorable lerms se�(ohh in lhis Note, Maker shall fWfill or exceea t�e Pu�lic Bena(t
GommiMent Upon reques�,�he Maker shall provlde the City Manager wiN notice of all general activities
@at beneN�he public and Pmjec4related events fa ihe CiN Manager's evaNa�ion. In lhe event�he Gly
Managtt mncludes, as a resWl of such evalua4on, Mal the Make� is nol satis(ying lhe Public Benefif
Commitment or othern�ise no�in compliance with Ihe�erms of ihis Nole or ihe Security AB�eement,then lhe
City Manage�musl provide in writing lo the Maker, wilhin �hirty (30) business tlays of the date of saitl
evalualion,notice ofihe Inatlequacy or tl�ciencies observetl to provitle Makeran opportuniry ro curesuch
inadequacy or tleticiency. If Maker fai6 ro atltlress ihe areas of mncem within ihitly(30)calentlar days of
receipt of such notice from �he City Manager, then ihe City Manager may, in his or her sole tliscreUon,
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GeUare an Event o(Default has ocwrred.The CRy Manager may also instiWte a moralorium on appliwtions
hom ihe Makerto Ciry grdnts pmgramslor a period of up to one (1)year or untii the deficient areas have
been atltlressed W the satis(action ofthe CAy Manager,whichever occurs frst.
'i Q) Annual ReowL Commencing on Ne 31°'day of October,2024 a(M continuing on the 31°
, dayolOctoberineacharWeveryyearlhereaRerun6lthaMaturityDa�e,Makershallsubmitawnttenreport
'� to ihe City Manager Gemonstralin8��h tlwumentation acceptable to Holder lhat Maker Nlflled its Public
Benefit Commihnent auring Ne immeCialely precedlig twelve(12)monih periotl. If requestetl by the Ciry
Manager, ihe Maker will pay for�he expenses of obtaining a compilafan statement antlla independent
Mancial audit and aaowting for ihe expenditure of Ihe Pumhasa-Mo�y Loan proceeds Ey an
indepenCenl certified public accountant.
(k) Comol'ance wlh S N A t R t . Maker shall comply wiM all
requiremenis set forth in ihe Securiry Apreement, incWCing,without limitatiaq lhe covenants in Section 4
of ihe Securiry Agreement relating to the location of Ihe Collaterel an0 required insurance.
(q Further Assurences. Upon ihe request of the Holtler, pmmptly exewte antl tleliver such
further instrumenM and tlo or caJse to be tlone such lurther acts as may be necassary or advisable to carry
out ihe inlent antl pu�poses ot Ihis Note antl(he Sewnry Agreament �
(m) Dowmentary SWmos.Maker shall pay any tlocumenfary stamp or similar tazes ihat may
be tlue[o any Govemmental AutFwrity with respect to issuance of Nis Note,and will intlemnify,tlefentl antl �
hold HoWer harmless from any claim,loss,tlamage,or expense,indutling aryorneys'lees antl cosa,that
Holder may su%er or incur as a result of any Failure o!Maker�o pay any such taz.
B. Neaative Covenants. Until ali amoun�s oulstantling untler Ihis Note have been paitl in full, �he
Maker shall not
(a) IrWebtetlness.Incur,create,orassumeanyDebtadverselyaffectMakefsabilityropertortn
its obligations hereunder or that woultl encum0e�ihe Collateral in any way.
(b) Liens. Inwr,creale,assume,or surter to ezist any Lien on the Collateral except for Liens
createG purouant to the Securiry AgreemeM to secure Maker's intlebtetlness to Hoker untlerthis Note.
(c) Lineof8usiness_Enterintoanybusiness,tliredlyorintlireGtly,excepttoriMsebusinesses
in which the Maker is engageG on the date of ihis No�e or ihat are reasonably rela�etl Iherero(i.e., other
cultu�al lines of business).
9. Events of Defaul�. The occurrence antl continuance of any of ihe tollowing s�all cons6tute an
"Even[o(OehulP hereuntler:
(a) Failure to Pay.The Maker fails to pay any interesl,princ4al or any other amoun[wM1en tlue
pursuant lo�his Note ana such Failure mntinues fo�five(5)tlays.
(b) Breach ot Reoresentations antl Warrant es. Any repreeentation or wartanry made by the
Maker lo the Holder hereiq in ihe Purchase Agreement,or in�he Security Agreemen�is incorrecl in any
materul respect on ihe date as of which such representation or warrantywas maGe.
(c) Fallure to SaCsfv Publ c Bene(�Comm[me t. The Maker fails to satsry t�e Public Benefit
Commilment requireC by Section 7(i)_
Page 7 of 12
il
'� (d) Brnach of Covenants_The Maker lalls lo observe or pertoim(x)any covenan[,contlftion,
' or agreement wntained In Section 7 (ezGUGing Sec�ion 7(i)) or Section 8 or (y) arry other covenant,
oClgation, conCitian, or agreement conhaineA in Ihis Note or ihe Securiry Agreement, other than those
specifed in the immetliately foregoing clause(i)antl SeUlons 9(a)and 9(c),antl suc�hllure continues for
ihirty(30)tlays.
(e) Cross-Defaulis.The Makar lails to pay when tlue any of its�ebt(other than Debt ansing
under this Note), or any interest or principle thereon, when due anC such faiWre continues a0er the
applicable grace panotl,rf any,specKed in ihe agreement or instrument relatlng to such Debl.
(� Bankruotcv.
(i) The Maker commences any case, pmceetling, o� other action (A) untler any
� existing or fuWre Law relating�o bankmptcy,insolvency,reorganization,or other relief of deblors,seaking
to have an oMer for relief entered wiN respect W it,or seeking to atljuCicate il as bankrupt or insolvenl,or
seeking reorganrzation,artangement,atljustment,wintling�up,liquitlation,tlissolutioq composition,or other
relief with respect�o it or its tlebGs or(B)seeking appointment of a receiver,tmslee,custotliaq conservator,
or other similar olficial for it or tor all or any substantial part of its assets,or the Maker makes a general
assignmen[br the ben�t of its creaibrs;
(ii) Thereiscommencetlagainst[heMakeranycase,proceetli'g,orotheractlonofa
naWre referted W in Sedion 9(�(i)whic�(A)rewlis in ihe entry o(an order for relie(or any such atlJudication
or appoinhnent or(B)remains undismissetl,undschargeq or unbonGed for a periotl o(siMty(60)tlays;
(iii) There is commencetl against ihe Maker any wse, proceetling, or other action
seeking issuance of a wartanl of attachment, ezecution, or similar process againsl all or any subsGntial
part of its assets which resutts in �he eniry of an ortler for any such relief which has not been vacatetl,
tlischerged,or stayetl or bonded pendng appeal within sixty(60)tlays hom the eniry ihereof;
(iv) The Maker takes any acfion in furtherance o(or intlipting its consmt to,appmval
of,or acquiescence in,any oi the acts se[firih in Section 9(�(i)th�ough(IiiJ above;or
(v) The Maker is generally nol,or shali be una0te to,or atlmits in wntinq ro Haltler its
inabiliry to,pay ils tlebls as they become tlue. .
(g) enls.OneormorejudgmentsortlecreesshallbeenteretlagalnsttheMakerantlall
of such judgments or tlecreesshall not�ave been vacatetl,tlischargeQ orslayed or Contletl panding appeal
within sixly(60)tlays from t�e entry�hereaf.
70. Remetlies.
(i) � It an Event of Oefault a(tM1e type tlescnEed in Section 9(c)ocuirs(i e_Maker fails �
ro satisfy the Pvblic 8enefit Commitment In any year�,pmvitletl ihat Maker voluntarily relinquishes all of ihe
Collateral in gootl mntlition (reasonable wear and tear excepted) to Holtler immediately upon HdGer's
tlemand, Halder agrees��a[ilwill look solety to�he Collateral as i�s remedy antl, upon receipt of seme,all
oNstanding principal and accruetl interest Ihen remaining unpaitl untler this Nofe shall be ezlinguisheG.
(ii) IfanyEvento(Default(other[hanNetypetlescribedinSection9(c)or9(e)hereo�
has ocwrretl antl remains uncuretl, Ihe holtler of ihis Note may demantl (by written nolice tleliveretl to
Maker)immetliate payment of all or any portion of the autstantling prinupal amount of this Note,together
with all accrued interest theaan an0 olher amounts payable under this Note,which amount shall become
Page B of 12
i
;
iimmeCiatelytlue antl payable upon such Eemand.If an Event ot Oehult oithe type tlescribeG in paragraph
� 9(e) has ocwrted, then all of the autstantling pnncipal amounl of this Note shall automaHcally be
immetliately tlue antl payabla without any action on the part of ihe holEer ot Mis Note.
(iii) Holtler shall apo have any other rights which it may�ave been atloMetl untler ihis
Note or ��e Security Apreement at any time anE any other rights whiM Hdtler may have pursuant [o
applicable Law.
I
' 71. Miseellaneous.
� (a) Notices. Whenever it is providetl herein Ihat notice, EemanO,request, consent, appmval
� or other communica0on shall or may be given to, or served upon, eithe�of Ihe parties by the other, or
, whenevereithero(lhepartiesdes'ueslogiveorserveupon�heolheranynotice,tlemanqrequesl,consent,
approval or other communication with respecl here�o or to ihe Conceuian Area,each such notice,demantl,
request, consenl, approval or other wmmunication shall be in vrtiting (whether or nat so intlicatetl
elsewhere In Ihis Agreemenq and shall be eBective kr arry purpose onty if given or servetl in person with
a sgnetl receipl,by cetlifetl or regisleretl U.S. Mail,retum recelp[requestetl,or by a rewgnized national
courierservice,postage prepaitl in all instances,atltlressetl as bllmvs:
Holder ItlotheCltyotMiamlBeach,at
Ciry of Mlami Beach
7700 Convention CenterDrive
Miami Beach,FL 33139
Atbc Ci�y Manager
Phone:(305)6737070
wiN a copy to:
Gry of Miami Beach
1700 Conventlon Center Drive -
Miami Beach,FL 33739
Attrc City Attomey
PMne:(305J 673-7470
Maker: If to Miami Music Festival,at
Mlami Music Festival, Inc.
1440 Ocean Orive
Miami Beach,FL 33139
Attention:Michael Rassi
The Holder antl the Maker may change ihe above mailing a0dress at any fime upon giving the othar parry
wnflen noiification.All notices untler ihis Concession Agreement must be in wnling.
(�) Attomev'sFeesJfHdltlerisrequiredtobnnganactiontoenlorceitsnghisunderihisNote
orthe Security Agreemen( Holaer shall be entitled to ils reasonable attomeys'fees(inclutling charges for �
paralegals antl olhers working unEx ihe tlirectlon or supervision of HOItleYs aIXorneys),eapenses antl court
costs, inclutling sales and use taxes ihereon. As usetl in ihis Note, atlorney's fees shall inclutle fees
iricumetl in all matters of collection antl en(orcement,construction,antl interyretatioq before, during, and
after irial,proceedings,and appeals,as well as appearances in antl connectetl with bankruptcy pmceedings
or reorganization proceetlings.
Page 9 of 12
i'
I (c) Govemina Law. This Note,Ne Security Agreement, antl any claim, contraversy, aispute, �
� or cause of aGion (whether in contrad or tort ar oNerwise)baeetl upoq arising out of, or relating to this
I Note, the Security Agreement, and the trenaactions conlemplate0 hereby and Ihereby shall be govemetl
by ihe laws of the State o/Florida.
(tl) Submission W Jur'sd'd'on.
(i) The Maker hereby inevocabty antl unconditionaliy(i)agrees that any legal action,
sutl,ar proceaCing arising out of or relating to ihis Note or the Securiry Agreemenl may be brought in Ihe
� couris ot the State of Florida or of the UniteE States o(America for ihe Southem District of Flontla,in each
case,siNatetl In Miami-Datle Counry, Flontla antl(ii)submils to ihe ezclusivejutlstlicUon of any such court
in any such actioq sui(or proceetling.Final�utlgment against the Maker in any action,suif,or pmceetling
; shall be concluslve anE may be enforcetl in any otheljuristliction by sud on the jutlgment.
. (ii) Nothing in Ihis Seclion 11(c)shall affec�Ihe nght of the HOMer to(AJ commence
legal proceedings or otherwiae sue Ne Maker in any alher murt having junstliction ovu the Maker or(B)
serve pmcess upan fhe Maker in any manner authorized by Ihe laws of any such junstliction.
(e) Venue. The Maker irtevocably and uncontlitionally waives,to[he fullest eztenl permittetl
by appliwWe law, any objec[ion ihat tt may now or hereafler have ta the layl�of venue ot any atlion or
pmceedingarisingouto(orrela�ingtothisNoleoriheSecunryAgreemen�inanycouhrefercedtoinSection �
i t(d)and�he defense o�an inwmenient forum to ihe mamtenance of such actian or proceetling in any
such court.
(� Waiver ot JurvTi aL THE MAKER HEREBV IRREVOCABLV WAIVES,TO THE FULLEST
EXTENT PERMITTED BY APPLICABLE LAW,ANV RIGHT IT MAY HAVE i0 A TRIAL BY JURV IN ANV
LEGqL PROCEEDING OIRECTLV OR INDIRECTLV RELATING TO THIS NOTE, THE SECURITV
AGREEMENT, OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBV, WHETHER
BASED ON CONTR4CT,TORT,OR ANY OTHER THEORY.
(g) In r ti . Thls Note, ihe Purchase Agreement, anE Ihe Sewnry Agreemenl constiN�e
ihe entire contrad belween ihe Parties wdh respect to the suDject matler hereof and supersetle all previous
agreemenis antl untlersWntlings,orzl orwriHen,with respeq p�ere�o.
(h) Successors and Assians. This Note may be assignetl or transferretl by ihe Holder to any
Person. T7ie Maker may not assign or trensfer this Note or any of i�s nghts hereuntler wifhout the prior
writlen consent oi the Holtlec This Nole shall inure ro ihe�eneft of,antl be bintling upon, Ne Parties anG
�heir permiHeO assigns.
(i) Waiver of Nafce. The Maker hereby waives Eemantl for payment, presenlment for
payment protes( m�ice of payment, no[ice of distronor, no[ice of nonpaymen( noGce of axeleration of
malunly,an0 Ciligence in taking any action to collect sums ovring hereuntler.
G) Amentlmenls antl Wa'vers. No term of Ihis Note may be walvetl, matlifred, or amende0
except by an Instrument in writing signetl by both ot the Parties. My waiver of the terms hereof shall be
effective onty in ihe speci�c instance and for Ne speci(m purpose given.
(k) Hea�s.The headings ol the various Sec[ions antl subsections herein are for refe2nce
only and shall not de(ne,modify,expanQ or limit any of ihe terms or provisions hereof.
Page 10 of 12
i
I
' (q No Waiver Cumulative Remedi .No failure to exercise,antl no delay in exercising on the
part of the Hoker, of any righ( remedy, power, or privlkge hereunder shall apereta as a waiver thereo(;
, nor shall any single or partial ezercise of any nght, remetly, power, or privilege hereunder preclutle any
o�her ar furiher eaercise thereo(or the exercise o(any otherright,remetly, power, or privilege.The nghis,
remetlies,powers,antl privileges herein pmviGetl ere cumula[ive antl not ezcWsive of any righ(s,remedies,
powers,and privileges provitleC by law.
(m) Electronic Ezewtion. The woMs'execuWn," "signetl; 'signaWre," and wortls o(similar
impotl in the Note shall be deemed ro incNGe electronic or digttal signatures or eleclronic recorEs,each of
which shall be of Ihe same et(ect,valitlily,antl enforceability as manually executeC signatures or a paper-
baseG recortl-keeping sys�em,as Ne case may be,10 the erten�antl as pmviCetl for untler applicable law,
inclutling ihe Elecironic Signatures in Global antl Nalional Commerce Act o(2�W (15 U.S C. §§7001 to
7031),the Uniform Electronic Transactions Ac[(UETA),or any state law based on�he UETA,inclWing the
New Vwk Elecironic Signatures and RewMs Act(NY State Tech.§§30�to 309�.
(n) SeverabilitvJfanytermorprwisionoflhisNoteorthe5ecurilyAgreementisirnalid,illegal,
o�uneMorceable in anyjurisdiction,such lmalitliry,illegality,or unenforceability shall not aftect any ot�er
tertn or pmvision of ihis Note w t�e Sewrily Agreemenl ar invalitlate or render unenforceaDle such tertn or
provision in any otherjunsdiction.Upon such tlMermination thal am/term orother provision is invaliq illegal,
or unentomeable;the Parties shall negotiate in good faith to madiy ihis Nofe so as to eRect the orginal
tntent of the parties as closely as possi�le in a muNally accep�able manner in order t�a[the hanuctions
contemplatetl hereby be consummated as anginally contempla�ed to the greatest ezlenl possible.
� �Signature Page Follows] -
Page 11 of 12
IN W ITNESS WHEREOF,this No�e has been ezecutea eHective as of�he tlate first set(orth
above_
MAHER:
MIAMI MUSIC FESTIVAL,INC.
BY: �.Ifsaa�
PnntName: i`lichaelaossi �
Title: Prasident
STATEOFKL�kM$4d�r Texas �
COUNTYOFI(OIXKff�d' � Haufman �
Tph�ea�fonrwegoping1hi�ncstrumenlwas acknowletlB��fore me by means of 0 physical presence or�online
MiarpPFNSR��25[IV31 IPft°ay of October p023,by_(name)mlcnael Rmsi as (title) Presitlent (or
_(company) .He/she �f �A 1 is personally known to me or�)protluced
DRIVFR LI�YSE asidentification.
� " ''� �wY 4� ^ wan.�.wraea
Lt`/ .�.
Nohary Public - w�
Print Name' Daphene Mayfieltl
My Commission Ezpires: o5/m/1o26 ., .
NO[d�ized Onlin¢Using autli0-vitleo rommunimlion
Page 12 of 12
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,
i
IEXHIBIT A
I PUBLIC BENEFIT COMMITMENT
IIn additbn to the obligations to pay interest antl principal pursuant to Ne Note,as material wnsiderotion
� for the Holder's making of Ihe Purchase Money Loan on favorable terms, Miami Music Festival, Inc.dba
Miami Beach Ciassical Music Pestival (Maker)will expantl its hee programming vrithin ihe Ciry W Mlami
i 8each. The programming will be enhancetl by state-ol-the-projecHon mapping technology lo continue
Iransforming Ciry ot Mlami Beach venues and lacilities into Ree,fully immersive concert ezpenences kr
� the community.The Meker will coninue to enhance Ihe image of Miami Beach as a wphislicaled artislic
� Cestinatlon, Increasing resitlente' qualiry of life by provi0ing free, uNque indoor antl oulCoor culNral
aclivalions�hmug�out the mmmunity. The ability lo use Guilding facatles antl other outtloor venues �o
prolect images that will allow(or unpue,immersive experiences for communiry members anC visitors atall
ages antl backgrourMs ro attentl.8y using new,sWte-of-the-art technology Maker will dentl tlMerent ariisfic
genres antl (orms to provitle en�icing experiences for a wide varrery ol attentlees. Without limiting ihe
generalily o(the forepoing, Maker makes ihe following wmmitments fo the Hdtler:
Maker will present ik annual five(5)week summer fastival at public venues wtlhin fhe Ciry of Miami eeach
witli a minimum of len(10)shows(hee aEmission),irot less than live(5)otwhich will promiirently feature
state-of-Ihe art projectlon mapping tec�nology incorporeting the Pm�ec[ Assek �o complemen� free
pertormances inrJutling full-scale opera protluctions, immersive symphanic mncerts,and mWtiple Opera,
C�amber,and Broatlway concerts.
For rtwnths that fall outside of llie summer festival, Maker will present not less than Mro (2) musical
perfom�ances per monU during eigh� (8J monlhs at public venues within ihe Ciry ot Miami Beach (hee
� atlmission). A minimum of seven Q) of lhese pertormances (not counting the Wlnter Festival of Lighis
peAormances)wilt prominently feaWre state-of-ihe art projection mapping technology incorpordling ihe
Projed Assels.
The Maker shall use mmmercialry reasonaGle Cesl efforts,in collaboration wKh�Ae Xoltlers Tounsm and
Cullure and Marketing Departments,to ensure Nere is sufficien�anA appropriate publbity antl marketing
for all even4s lo draw the largest possible audiences(subjad to consultatlon with t�e Holder's Police and
Fire Departmen4s to ensure safiry). �
The Maker will seek grant(mMing to enable it to protluce anC install an annual Winler Festival of Lighls Ihat
will light up builtling YaraCes in such area wi�hln[he Gty of Miami Beach as�he Maker antl��e Holtler shall
mutually agree wtlh stale-of-t�e-arl mapping technology for a minimum of ihree(3)weekentls,tlates ro be
suCject to the pno�wntten appmval of the City Manager or his or her tlesignee each year. There will be a
minimum of three(3)live musbal pertormances on such dates as the Maker antl ihe Holtler shall muWally
agree. In the event t�at ihe Maker is unable to seare ihe necessary funding for the Winter Festival of
Lighis in any year, Ihe Maker antl�he City shall pinHy tle�ermine the s¢e and scale of�he fesfival tluring
such year given available resources.Notwithstanding ihe bregoing,fhe Maker shall use iCs�est efforts lo
produce a full-scale leslival each year with ds curzent available staffmg.
RESOLUTION NO. 202332728
A RESOLUTION OF THE MAVOR AND GITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA,AUTHORIZING THE ADMINISTRATION TO DRAF7
AND EXECUTE THE NECESSARY OOCUMENTATION RELA7ED TO A
51,500,000 LOAN BV THE CITY TO MIAMI MUSIC FESTIYAL, INC. DBA MIAMI
BEACH CLASSICAL MUSIC FESTIVAL (FES7IVAL) TO BE FUNDED FROM
THE PROCEEDS OF THE G.O. BOND FOR ARTS AND CULTURE, WHICH
LOAN SHALL ENABLE THE CITY 70 MAINTAIN A SECURITV INTEREST IN
THE EQUIPMENT TO BE PURCHASED WITH THE LOAN PROCEEDS AND
ENSURE THE FESTIVAL COMPLIES WITH ITS PUBLIC BENEFIT
REOUIREMENTS.
WHEREAS, on July 20, 2022, the Mayor and Commission approved ResoWtion 2022-
32261, au[honzing a special electioq submitting to the electorate of Ihe City ot Miami Beach
the ques[ion asking whether the Ciry shall be authorizetl to issue general obligation bonds, not
exceeding $159,00O,OOQ to impiove facililies for resiliency o( arts and cultural instiNtions
throughoul the City, including museums, performance venues, a�istic playgrounds,
seniodcultural centers, botanical garden, aqualic swipture park, and rela[ed artisUvrork(orce
housing; and.
WHEREAS, on November 8, 2022, the voters of fhe Ciry of Miami Beach approvetl the
issuance of a General Obligation Bond for Arts 8 CWWre (the "Bond") in the not to ezceed
amount of 5159 million; and
WHEREAS,the final list of pmjeQs included a$3 million allocation for Miscellaneous Arts
& Culture Projec[s, to be vetted at a fuWre date; and
WHEREAS, on February 1, 2023, the Mayor and Commission adopted ResoWtion 2023-
32485, approving ihe Administra[ion's recommendation to allocate up to $t5 million from the
Miscellaneous Arts & Cutture Projects Category lo [he renovation of the Collins Park Raluntla
as a pedorming arts venue; antl
WHEREAS, pro�ec[ion mapping is a lechnological innovation lhat can trans`orm all
suRaces in a given space incluAing walls. s�ages. buildings, and roads-into interaclive display
surtaces for choreographed video presentations and adds a new dimension to musical and
other performances; and
WHEREAS, on February 22. 2023, the Mayor and Commission adoptetl ResoWtion
2023-32509 approv�ng the acquisition by the City of projeclion mappinq projecto�s and relafed
production equipmeM("Equipment")to allow for[he transformation of Ciry venues and facilities
into immersive pertormance ezperiences ([he "Projecf') utilizing (unds up to [he amoun�
remaining in the Miscellaneous Arts 8 CulWre Category, such equipmen[to be used initially by
Miami Music Festival, Inc. dba the Miami Beach Classical Music Festival (Ihe 'Festival") for
programming during public pertormances and activa[ions. and furthei, refening Ihe item to Ihe
G.O. Bond Oversight Committee (the "Committee") for its consideration of the amount to be
allocated for such equipment acquisition�, and
WHEREAS,the Committee reviewed the Project at its March 30, 2023 meeting and made
a motion recommendinq funding in the amcuni of$1.5 million�, and
WHEREAS, on March 31, 2023, the Finance an0 Ewnomic Resiliency Committee (Ne
"FERC") heard input irom s[aR and vanous grantees regarding Tranche 1 ofthe Bond and
considered recommendations made by the Administration; and
WHEREAS, Ihe FERC made several rewmmendations regarding Tranche 1, including
a suggestion �hat Ihe Festival should provide a revenue share to the City; antl
WHEREAS,on April 28, 2023,the Cily Commission adopted ResoWtion No. 202332592
accepting the FERCs recommendations and approving Tranche 1 in Ihe not-to-ezceed amount
ot$101,700,OOO; antl
WHEREAS, on May 17 and June 28, 2023, Ihe frst and second public readings of the
bontl issuance resoWtion were held, and the issuance was approved; and
WHEREAS, Tranche 1 o(the Bond was issued on July 27, 2023�, and
WHEREAS, after considering various factors, including the lengtn of time it would take
for the Ciry to acquire the Equipment, the possible ezposure of the City if the Festival�s use of
Ihe equipment resWted in any injury to persons or property damage, as well as the atlditional
need to fntl suitable storage for Ihe Equipment, !he Atlministration determined that making (he
funds available to the Festival to enable it to purchase the Equipment directly would be a better
app�oach: ana
WHEREAS, Ihe Adminislration concluded Ihe bes� mechanism for funding the Festival's
purchase of the Equipment would be a loan secured by a iien (i.e., a pumhase money securiry
interest pursuant to Seclion 679.1031. Florida StaNtes)on the Equipment. and;
WHEREAS, the existence of a purchase money securiry interest will protect the
Equipment against judgment creditors and the City can seek repayment(or repossession of Ihe
EquipmenQ i(the Festival does not comply with its pu6lic beneFit obligations. and:
WHEREAS, the Crty could require Ihe payment of the accruetl interest (or an
approoriate portion (hereo/)as a way[o secure a revenue share: and
WHEREAS, the loan would be torgivable at the enC oF fifteen (151 years — the
approaimate end of lhe useful lile of the equipment—so long as the Festival has fulty complied
wlth its obligations.
NOW, THEREFORE, BE I7 DULY RESOLVED BY THE MAYOR AND CffY
COMMISSION OP THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor antl Ciry
Commission hereby auihorizes [he Administration �o draft and finaGze documentation
evitlencing a $1,500,000 loan with interest of LS% per annum by the City to Miami Music
festival, Inc. dba Miami Beach Classical Music Feslival lo be Funded from the proceeds of the
G.O. Bond for Ms and Cul[ure, which loan shall enable Ihe City to maintain a securiry interest
in the equipmen[to be purchased with Ihe loan pmceeds and ensure the Festival complies wiN
Rs public benefit requirements and ailow for a simple mechanism for receiving a revenue share�,
and further, authonzes Ihe Ciry Manager and Ciry Clerk to execute such loan documents.
PASSED and ADOPTED this �j day of�, 2023.
—
i //
...,t�i'�__
Dan Gelber, Mayor
ATTEST:
� SEF ; � �ot�
Rafae" I E.Granado, CiTy Clerk
� .Va�pufOblO
� � f�M6:AN".:i/K!
. . ��(Wil3CN(N
1 Y V Y.!ffiJ
� �
�
r
i
RewlWwu-C7 E f
y
MIAMI BEACH �
�
COMNNSSION MEMORANDUM "
TO: Hora2bie Mayor and Members of the Cfty Commissbn
FROM: Alina T. HWak City Manager
DATE: Septem0er 13,2023
SUBJECT:A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITV
OF MIAMI BEACH, FLORIDA, AUTHORIZING THE ADMINISTRATION TO �:
DRAFT AND EXECUTE THE NECESSARY DOCUMENTATION RELATED
TO A $1,500,000 LOAN BY THE CITV TO MIAMI MUSIC FESTIVAL, INC.
OBA MIAMI BEACH CLASSICAL MUSIC FESTIVAL (FESTIVAL) TO BE
FUNDED FROM THE PROCEEDS OF THE G.O. BOND FOR ARTS AND
CULTURE, WHICH LOAN SHALL ENABLE THE CITV TO MAINTAIN A
SECURITY INTEREST IN TME EOUIPMENT TO BE PURCHASED WITH �
THE LOAN PROCEEDS ANO ENSURE TNE FESTIVAL COMPIIES WITH �
ITS PUBLIC BENEFITREQU�REMENTS.
9ACKGROIIND/HISTORY
At the JJy 20, 2022 Commiss'an meetirg, Mie Mayor aM Commissbn appro�ed Resdution
202232261, aAlwriarg a speciai election, submiltirg b 7ie eleclorate of ihe Cdy of Miami
Beach ihe question a5kirg whether the Cily shaq be aWwrized Lo issue gereral obFgffiion �-f;
bords, rot exceeding $159,000,000, to impfove txiiities for resilienty of arts and culhral ''
insGWUore Ihroughoul tlie CLLy, inUudirg museurt�. PeAormar�ce �enues. artistic Playgrowds, }.
seNodcWWral ceMers. Dotarccal garden. aquatic scWphre park, arid reialetl artisVwoflQorce �.
i;
housirg.
On November 8, 2022, Uie wters of ihe Cily of Miami Bexh appioved the issuance o� a
['n
Generd ObGgadon BoM frn Ar� d CWhre (the 'BoM') in ihe not to exceed artaurrt of 5159 �',
miAion.The firel list of projects irclWed a S3 miMbn albcaUon for MisceXaneous Art9 6 Cul6►e �a,
Projects.b ba vet[ed at a/uluie da�. �I
On Febncuy 1, 2023, the Mayor ard Carmissbn adopted Resolution 2o23J24B5, appmving "
7ie AdmirdstraUon's tawmmendaUon to albcale up n 51.5 miiNon(iom tlte Miscetlarcwis Ar�
8 CWhxe Projects Calegory to fhe rerovation of Me Co�ns Park RoWrda�a performirg aAs
�enue.
Projeclion mapping is a technobgical inrovation Ihat can irareform aX surfaces in a given space ��
ir�ding waAs, stages, buildirgs, and roads - in� iMerxtive disphay surfaces for :,-t
cho2og2phed viCeo presenfations. The use of pmjeGbn ma{rpirg adds a rew dimereion to '
music� and other peAomrances by erwWirg IM e�reM producer to creale a visuaAy immersive
Page 60�o/2938
$i
e�enence for aWiences. On FeCniaiy 22, 2023, Ihe Mayor antl Commissbn adoptetl ����
ResMuOon 2023-32509 approving the acquisition Cy ihe Ci1y of Orojection mappirg projectors .}i
and related proCuction eQuipment ('EquipmenY') lo albw fw the Vansfprtnation of City verwes �
and fxikties into immersive perfortnance expenences (fha "ProjecC). ufiFang tunds up ro the ��I
artqunt remanirg in ine Misceflaneous Ar� 8 Cullure Category, such equipmeM to be uSeC ,;{
ittitially by Miami Music FesGval. Inc. dGa Iha Miami Beach CWssiCal Music Feslival (the �{
"FesCral') for programmirg dunng public perfortnances and activaUor�s, antl fuN�er, retemrg ',f
7ie item lo the G.O. Bond Oversight Commitlee (the 'Committce") for its corsideration of tt�e i�
amount b be albcateA for such equpmeM xquisition. r:�
The Committee reviev.ed tM Prqect al its March 30, 2023 meetirg and made a molbn �
tecortxneMing lurqing in the amoixit of 51.5 million. '
�
On Marc� 31, 2023, Vie Firerice and Ecoromic Resiliency Committee (ihe 'FERC') lieard i��
inpul from staft and rariois grartees regarding TrancM 1 of the Bond and convderetl
recommendatiore made by Ihe Admirashation. The FERC made saoeral recommenAatlois
iegaNirg Tranche 1, ircludinp a suggestlon ihe!Uie FesGvel shoWO pmvide a ra�enue sha�e ta
ihe City.
e
On April 28, 2023, the Ciy Commissbn adopletl Resdutbn No. 2023J2592 accepting the
FERC's recommerdaliore and approvig 7ranche i in ihe roHoe�ccee0 artauit ol
$107,700,000. '1
,
f'
On May 17 aM Jure 28, 2023, the first antl secoM public readirgs of the bond issuance �
resolution v.ere helC, and tlie issuarcs vr�s approved. Tranche 1 of the BoM wa5 issued on �
Juy 27.2023.
edAl1CS1� �
The Admiristratpn irNiaXy corAemplated that the Cily noild purchase Vie Equpmenl then enler
mlo an equipmeM use agreemerrt wiN ihe Festival. After consitlenrg vanous factors, inclutl�np �x
tM lergth of Ume it xoWd take for IM City to acquiie the EqupmerY, Ihe possible exposure of t
fhe Ciry M tM FesGval's use of ihe equipmerrt resWted in arry irguy to persons or property "�
t
tlamage, a5 xeM as Ihe additionai need to lind suitabk storage for the Equiprtrent, tha
Adminisiration delertrvred tlut makirg the fwds avatlable to the FesNrd to ereble it to
pwchase tl�e EQupment tlirectly NoWd De a betler approach. Altlnugh Ihe City is simAaAy
providing fw�ds,via graMs,W other arts and culture organ¢atiore and iretiWtiore Ciat wiN receiHe �
Bond hrdirq b enable them b seM��cecule tlieir pmjects. Me Pmject preseMs some u�que �i
challenges that rnakes Ne�se o!a grant sovchue undesuable. �"
�,
First, whe�eas o1Mr projects corsist of rerovaUng andJor DulOirg new fxtliCes and
intoiporating equipment irdo ewsting bnck.ad-mor�ar fatiiilies (e.g. the Cobrry Thealer, Ihe
CoXins Worldoice Fbising Pmject aM the Bass Mweun of Art)w pem�aneNty plxing v.aks
ot art at sDecMic bca6ore (e.q. arCsac playgmunds and the aquaUc sc�tue garden), Cie
Project coisists excksively of equipmem th3t is rot iMentled to be sfaoorary. Beca�e Uie
Equipmerrt will rot become fix0.rces wiltun epSUrg faciiNes, fhe Administra�on idenGfied the risk
fhat an u�paid credilw of the Festiral could potenl�9y seek b place a judgmeM tien on pie
Festival's assels. Seca�d, tlie FERC iecammended that tl�e Festival sMWd be aiowed to �
ise ihe EpupmerY for commeicial puryoses suDject ro ihe payrt�eN ot a 2verne share Oo ihe
ciry.
Ppe 605 of 2978 �
Fdbwing eMersive tliscussbrs vnih ihe OHice of the Cily Attomey. Uie Admurstration
concludeA the best mecl�erusm for(undirg the Festival's purchase o(the Equipmerrt woWd pe a
ban secuietl by a lien (i.e., a purcha5e money secunry hqerael pursuarM to Section 679.1037.
Florida Statutas)on the EquipmeM. Struchmrg the turxfing for the purchase of Uie EquipmeM
as a loan has several advantages over makirg Ihe funds arailable pursuanl to a grant
agreement:
First, the exislence oi a purchase money secunty interest will protect the EquipmeM against
judgmerit cBAitois.
Second, tlie City can seek 2paymerd(or repossession of Ne Epuipmerrt) if ihe FesMal does
rot comply with its public benafd obligatiore.
Finelly, ihe City could mquire Me paymerd of the acrued mterest (or an appiopriale portion
tliereof)as a way lo secuie a revenie share. If the Festiral is unable to pay irrtefest in azvy
given year due ro insufficieM net ievenue, the City Commission coultl defer or vraive aA or a
portion of 7�e iMerest due for such year. The loan would be forgivable at the end of tifteen (15)
years — ihe �p�opma�e end of ihe useful life of ihe eqwpment— so bng as the Festival has
fu%y compBed with its obligations.
SUPPORTING SURVEY DA7A
WA
FINANCIAL INFORY�TION
WA
CONCWSION
The Administration recommenCs the adoption of t�is resoWtlon aWhonang Ihe AdministraUon to
draft and ezecuoe documenlatlon e�ridencirg a$1,500,000 ban with iMerest ot 1.5%per annum
by the Cily to Miami Music Festival, Inc.dba Miami 8exh Classical Music Fes�val b be funded
fmm Uie pioceeds of the G.O. Bond for Arts and CuMve, which ban sheN er�able t�e City b
m�in a secwily ilrterest in ihe equipmarrt to be pu�ch�ad wilh ihe ban proceeds,ersure ihe
Festival compRes Ndtli its public benefd iequiremen6 and aMow for a simple mechanism for
recei�rin9 a re�erwe share. PirsuaM to the tertns of the ban apreement. the Festiral wiH be
responsible for sbrirg the EquipmeM in a secure, clirtwte-con6olled space and to procure
insuance for the EpuipmeM setlsfaGory to Ihe Cily.
ApWifama.sue
Cilywkfe
fs Mia a'Re�ItlsMa Riaht Dos�this Mem W Ilae G_O_
to Ktww' ibm.aunuant to Bond Funda7
�(y Cada Sactlon 2-1�9
No Yw
StrsOcOc Connadlon
Prosperity - Market and prortwte Miami Beach as a woAtl cY.as arts, culture, and quality
errtettainment desiir�ation.
Page 60fi ot 2958
�Istative TnckMa
G.O. Bond Pmgram
ATTACNMENT3:
DascApdon
0 Resolution
Paqe 807 at 29J8