HomeMy WebLinkAboutCOBB Development AgreementCOBB DEVELOPMENT AGREEMENT
THIS AGREEMENT is made and entered into as of this/day
of March,1989,by and between the MIAMI BEACH REDEVELOPMENT
AGENCY,a public agency organized and existing pursuant to the
Community Redevelopment Act of 1969,Chapter 163,Part III,
Florida Statutes (1985,as amended)(hereinafter referred to as
the "Agency"),and COBB PARTNERS DEVELOPMENT,INC.,a Florida
corporation (hereinafter referred to as "Developer").
RECITALS
A.The City of Miami Beach,Florida (hereinafter referred
to as the "City")is a Florida municipal corporation with powers
and authority conferred under the Florida Constitution,the
Municipal Home Rule Powers Act,State of Florida legislation and
the Miami Beach City Charter,and has all governmental,corporate
and proprietary powers to enable it to conduct municipal
government,perform municipal functions and render municipal
services,including the authority to adopt,implement and enforce
comprehensive plans,zoning ordinances,redevelopment plans with
the consent of Dade County,Florida,and other police power
measures necessary to assure the health,safety and general
welfare of the City and its inhabitants.
B.The City has adopted and implemented a Comprehensive
Plan for the redevelopment and continuing development of the City
pursuant to Florida Statutes Sections 163.3161 et seg.(the
"Comprehensive Plan").
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c.The city
provisions of Florida
has created the Agency pursuant to the
Statutes Sections 163.330 et seq.and the
governing charter of Dade County,Florida.
D.The City adopted a Redevelopment Plan (the
"Redevelopment Plan")on the 15th day of February,1984 for the
southern portion of Miami Beach,which redevelopment area is
defined and bounded as described in Exhibit A attached hereto and
incorporated herein (the "South Shore Redevelopment Area"),
entitled "The South Shore Revitalization Strategy.11 The
Redevelopment Plan constitutes the redevelopment plan required by
Chapter 163 of the Florida Statutes and has also been approved as
an amendment of the Comprehensive Plan by the State of Florida
and Dade County pursuant to the Local Government Comprehensive
Planning Act,Section 163.3161 et seq.of the Florida Statutes.
E.On February l,1988 the Agency released its Request for
Proposals,New Residential Development at the Old Police Station
site,south Pointe Redevelopment Area,Miami Beach,Florida,as
amended by Amendment No.1 dated April 12,1988,Amendment No.2
dated April 21,1988,Amendment No.3 dated May 5,1988,and
Amendment No.4 dated May 17,1988 (collectively "RFP").
F.Developer responded to the RFP under letter of
transmittal dated June 8,1988 and by presentation to the
Selection Committee and to the Agency at a meeting held July 27,
1988 ("Developer's Response to RFP"),and as a result the
Agency's administration was directed to enter into negotiations
with Developer regarding the terms of a Development Agreement for
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the development of the Property.
G.Developer is the contract vendee for the approximately
5.21+acres of property located within the South Shore
Redevelopment Area and more fully described in Exhibit B attached
hereto and incorporated herein (hereinafter sometimes referred to
as the "Property")pursuant to a Contract of Purchase and Sale
(the "Contract of Sale"),dated as of even date herewith,between
the Agency and the Developer.
H.The Agency and Developer have obligated themselves to
enter into this Development Agreement as a condition precedent to
their entering into the Contract of Sale.
I.The parties have determined that this Development
Agreement is also necessary and desirable in order to assure that
the standards and criteria of the Comprehensive Plan,the
Redevelopment Plan and the Developer's Concept Plan are met;in
order to promote the best utilization of the Property consistent
with said Plans;in order to promote flexible and efficient
development;in order to allow the City and the Agency to
maximize the development opportunity presented by Developer;in
order to define the rights and obligations of the parties
relating to the development of the Property;and in order to
encourage redevelopment in a timely fashion consistent with the
Redevelopment Plan.
NOW,THEREFORE,in consideration of the
recitals are specifically incorporated into
foregoing,which
this Development
Agreement,and in consideration of the mutual covenants herein
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contained,and for other good and valuable consideration,the
receipt and sufficiency of which are hereby acknowledged by each
of the parties hereto,it is agreed as follows:
1.TITLE OF AGREEMENT.This Development Agreement shall be
known,and may be cited,as the COBB Development Agreement.
2.DEFINITIONS OF TERMS.Capitalized terms used herein and
not otherwise defined herein shall have the meanings set forth in
the Contract of Sale,and in addition to the defined terms set
forth in the recitals above,as used in this Development
Agreement,the following words and terms shall have the following
meanings,unless another meaning is plainly intended:
A.Agency means the Redevelopment Agency of the
City,as created pursuant to Florida Statutes Section 163.330 et
seq.,and its successors.
B.Area,Plan Area Qr Redevelopment Area means
the area included within the boundaries of the South Shore
Redevelopment Area as established pursuant to Florida Statutes
Section 163.330 et seq.and as described and defined in the
Redevelopment Plan.
C.Building Permit means a permit issued by the
Building Department of the City or,if applicable,its
successors,which allows a building or structure to be erected,
constructed,altered,moved,converted,extended,enlarged or
used for any purpose,in conformity with applicable governmental
codes and ordinances.
D.City means the city of Miami Beach,Florida.
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E.City Commission means the City Commission of
the City,the governing body of the City,and,if applicable,its
successors.
F.City Manager means the City Manager of the
city,and if applicable,his successors.
G.Concept Plan means Developer's plan for
development of the Project,as reflected in the Developer's
Response to RFP,to be more particularly detailed in plans and
drawings to be submitted to the Planning Department of the City
of Miami Beach for the creation of an overlay zoning code for the
Property,which will in any event be subject to the following
parameters:not less than 180 and not more than 220 residential
condominiums;commercial space of not less than 13,500 and not
more than 17,500 square feet;F.A.R.of not greater than 1.50;
not less than 1.65 covered parking spaces per condominium and not
less than 364 spaces in the aggregate;a condominium unit type
mix 0f 30%to 40%one bedroom,40%to 60%two bedroom and 0%to
20%three bedroom;average building height not to exceed 55 feet
and maximum height not to exceed 60 feet;no setback on Al ton
Road and one-foot setbacks on First Street,Second Street and
Meridian Avenue.Architectural style,exterior surfaces,project
massing,quality of construction and other salient features will
be substantially as set forth in Developer's Response to RFP.
H.Design Plans mean the schematic,design
development,and working drawings prepared for Developer by
Developer's Architects to implement the Concept Plan.
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I.Development means the undertaking of any
building or construction,including,without being limited to,
new construction,rehabilitation,renovation or redevelopment,
the making of any material changes in the use or appearance of
property or structures,the subdivision of land,or any other
action for which Development Approval is necessary.
J.Development Approval includes all governmental
approvals,consents,permits,special use exemptions,variances
or other official action of the Federal,state or local
government as having the effect of approving the development of
land and being necessary for developing the Project.
K.Notice of Default means a written notice to a
party that it is in default of its obligations under this
Development Agreement,and that such default must be remedied as
required hereunder within the applicable time periods.
L.Project means the proposed Residential
Development described in Developer's Response to RFP and as
described in the Concept Plan,and to be more fully described in
the Design Plans.
M.Property means that real property described in
Exhibit B attached hereto.
N.Redevelopment Plan means The South Shore
Revitalization Strategy,prepared pursuant to Florida Statutes
Sections 163.330 et seq.,adopted by the City Commission on
February 15,1984,constituting the Redevelopment Plan for the
southern portion of Miami Beach as well as the redevelopment
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element of the Comprehensive Plan.
O.RFP means the Request for Proposals,New
Residential Development at The Old Police Station Site,South
Pointe Redevelopment Area,Miami Beach,Florida,prepared by the
Agency and released February 1,1988,as amended by Amendment
No.1 dated April 12,1988,Amendment No.2 dated April 21,1988,
Amendment No.3 dated May 5,1988 and Amendment No.4 dated May
17,1988.
P.Developer's Response to RFP means the
Developer's Response to the RFP submitted to the Agency under
letter of transmittal dated June 8,1988 as well as the Minutes
of the Agency's Selection committee dated July 11l,1988,and
Developer's presentation to the Agency at its regular meeting
held on July 27,1988,and all supplements thereto (including a
sketch of a parking plan),as collectively set forth in Composite
Exhibit E attached hereto and incorporated herein.
Q.Specific Performance Notice means that written
notice provided by the Agency to Developer under section D(2)(a)
of the Contract of Sale.
R.Zoning Ordinance means the City of Miami Beach
Zoning Ordinance,including all amendments thereto,enacted as of
the date hereof.
3.APPLICATION AND SCOPE OF AGREEMENT.It is the intention
of the parties hereto that this Development Agreement,together
with the Contract of Sale,shall govern the rights,duties,
privileges and obligations of Developer and the Agency,with
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respect to various aspects of the development of the Property and
that the benefits and burdens hereof shall bind and inure to the
benefit of the parties hereto.
4.ASSIGNMENT OF RIGHTS.Except as specifically permitted
herein,neither the Agency nor the Developer shall have the right
to assign,grant,transfer,convey,mortgage,pledge or otherwise
encumber or hypothecate all or any portion of their respective
right,title or interest in,to or under this Development
Agreement,including,without being limited to,the Contract of
Sale.Notwithstanding anything hereinabove stated,Developer
shall be entitled to assign its rights and obligations under this
Agreement and the Contract of Sale one time only to Cobb Partners
South Beach,Ltd.,a Florida limited partnership in which
Developer shall be and remain the general partner,and further
provided that the management of Developer shall continue to
manage the Project (which assignment shall be deemed approved by
the Agency upon ratification hereof),and nothing contained in
this provision shall be deemed to preclude Developer from placing
a Mortgage on the Property to secure the construction loan for
the Project to be given by Bankers Trust Company pursuant to its
revised Commitment Letter dated March __,1989,a copy of which
is attached hereto as Exhibit F (or comparable substitute
financing),or utilizing one or more joint ventures or substitute
financing for construction of the commercial space.
5.BUILDING PERMITS AND DEVELOPMENT APPROVALS .A.The
Developer,as of the date hereof,is in the conceptual stage of
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design for the development of the Property.Developer must
complete the Design Plans implementing the Concept Plan and,
except as hereinafter provided,Developer must obtain all
Building Permits and Development Approvals for the construction
of the Project as a condition precedent to the Agency's and the
Developer's obligations to close under the Contract of Sale for
the Property.
B.Developer hereby affirmatively covenants to use
its best efforts and due diligence to cooperate and/or jointly
apply with the Agency and City in the development approval and
permitting process and in formulating the overlay zoning code
described below.Without limiting the generality of the
foregoing,Developer shall:(i)submit preliminary design
drawings not later than 75 days after the date this Agreement is
executed,(ii)submit final design drawings not later than 60
days after the date it receives notice of preliminary design
approval,and {iii)submit working drawings not later than 105
days after it has received the Agency's Specific Performance
Notice.Developer shall not expend any funds which shall be
recoverable under Section J of the Contract of Sale in order to
obtain preliminary design approval and to facilitate the adoption
of the zoning overlay code beyond those that are reasonably
necessary.
C.To the extent legally permissible and consistent
with this Development Agreement,Agency hereby affirmatively
covenants to use its best efforts and due diligence to (a)
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acquire and assemble the parcels constituting the Property as
soon as practicable,in order to permit Developer's inspection,
testing and survey of same,(b)jointly apply for and fully
cooperate with the Developer and City in the development approval
and permitting process,and
described below.Without
foregoing,the Agency shall
(c)obtain the overlay zoning code
limiting the generality of the
use its best efforts and due
diligence to assist Developer in obtaining,without unreasonable
delay:(i)preliminary design approval after Developer's
complete submission of preliminary design drawings,(ii)final
design approval after Developer's complete submission of final
design drawings,(iii)a building permit after Developer's
submission of complete working drawings and not later than 15
days prior to the date set by the Agency for closing pursuant to
Paragraph 9.D.hereof,and (iv)final zoning approval not later
than 90 days prior to the date set by the Agency for the closing
pursuant to Paragraph 9.D.hereof.In the event that any such
approvals shall not be obtained in sufficient time to permit
Developer to perform its subsequent obligations hereunder,it
shall be entitled to extend its deadlines accordingly,for up to
five (5)months in order to perform.
D.Developer and Agency hereby affirmatively covenant
to cooperate with each other to·jointly obtain the aforesaid
overlay zoning code as described herein,to accommodate the
Project as depicted in the Concept Plan,including but not
limited to the ancillary commercial uses,which shall include all
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uses permitted under CPS-I zoning,as well as real estate sales,
rental/leasing,or condo/management offices within the
residential portions of the Project.The parties acknowledge and
agree that the Chronological Cross-Reference for Development
Approvals and Closing attached hereto as Exhibit C contains the
assumptions upon which the foregoing deadlines have been
determined.The Agency shall also cooperate with Developer in
securing such Development Approvals from Federal,State,and
County Agencies,as may be needed.
E.Failure of either the Developer or the Agency to
comply with the foregoing obligations shall entitle the non-
defaulting party to elect either:(i)to grant an extension of
time required for such performance and thereby extend its own
subsequent performance deadlines by the full term of such
extension (without thereby waiving any right or remedy it has or
may have in the event of a continued or future default),or (ii)
if such failure to perform continues for an additional 60 days,
declare a default and exercise its rights and remedies under this
Agreement and the Contract of Sale.
F.A portion of the Property is currently owned by the
City and is currently zoned MU,Municipal Use.By Resolution No.
87-19121 dated December 23,1987,the City has indicated its
intent to convey said City-owned parcel to the Agency once the
Agency has assembled a sufficient portion of the Property for
conveyance to Developer pursuant to the terms of this Development
Agreement and the Contract of Sale.Prior to and as a condition
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of the closing of the Contract of Sale,the Agency will apply to
and must obtain approval from the City's Commission and Planning
Board for a zoning change for said City-owned parcel from MU to
R-PS2,to conform with the remainder of Block 78,subject to the
same overlay zoning code referred to above.
6.CONCEPT PLAN.A.The Concept Plan must be submitted
to and approved by the Miami Beach Planning Department as the
site plan for all of the Property in accordance with Section 23
of the Zoning Ordinance as to design review of site plans,and
that portion of Section 23-3 pertaining to site plan review.
Design Plans shall likewise be subject to design review pursuant
to Section 21 of the City's Zoning Ordinance.In the event of
any substantial modification to the approved Concept Plan after
site plan review,Design Plans may be subject to full design
review pursuant to all applicable provisions of Section 23 of the
city's Zoning ordinance.
B.The Concept Plan contemplates primarily residential
uses with ancillary and support commercial development of the
Property.In the event Developer desires to materially change
the Concept Plan prior to the closing of the Contract of Sale,a
revised Concept Plan shall be submitted to the Agency for its
review and possible approval;provided,however,that it shall be
reasonable for the Agency to withhold such approval if such
revised Concept Plan shall seek to eliminate or reduce the number
of parking spaces to be provided per unit,and provided further,
that it shall be reasonable for the Agency to withhold approval
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of any revised Concept Plan which seeks to change the primary use
designated for structures in said Concept Plan,to materially
reduce the quality of construction described in Developer's
Response to RFP,or to further alter the unit mix or reduce or
increase the number of units set forth in the Concept Plan.
c.For purposes of the computation of the floor area
of the Property,Developer may include in the calculation of the
square footage of the Property any portion of lands which
Developer encumbers by way of easement,license or otherwise from
or in favor of the public or the City hereunder or pursuant
hereto.
D.Developer will initially offer all units for sale
at prices not greater than those indicated on Exhibit 9 of
Developer's Response to RFP for a period of not less than sixty
(60)days,adjusted only for:(1)variances in square footage of
units due to final structural/layout considerations,and (2)the
percentage increase in the Consumer Price Index for All Urban
Consumers Ci ties,All Items,published by the Bureau of Labor
Statistics of the United States Department of Labor,from January
1,1990 until the date of initial offering,plus all pro rata
impact fees that may be imposed,if any.After the initial
offering,pricing of Developer's unsold units will be according
to market demand,without in any way releasing or affecting
Developer's obligations hereunder,including but not limited to,
Developer's obligation to complete construction of the Project
within the time specified herein,all in accordance with its
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Concept Plan,the style and quality of construction,or in any
way releasing or affecting the security referred to in
Subsections 9.A.(3)and (4)hereof.
7.CHANGE OF LA S.Application,processing and inspection
fees,improvement standards as set forth in the City regulations
and construction standards and specifications that are revised
during the term of this Development Agreement shall apply to the
Property pursuant to this Development Agreement.Nothing herein
shall prevent the imposition by the City of City-wide standard
permit fees,and while nothing in this Section shall be deemed to
limit the power of the Board of Adjustment,pursuant to Section
13 of the Zoning Ordinance,to impose fees,charges or other
requirements as conditions to the grant of a variance,if such
impact fees were to be imposed by the City of Miami Beach,
Developer shall have the right to term inate this Agreement and
the Contract of Sale by giving written notice of such termination
to Agency within thirty (30)days of receipt by Developer of the
Board of Adjustment's imposition of same,or to obtain a credit
against the purchase price in the aggregate amount of such fees.
8.CONFLICT OF CITY AND COUNTY,STATE OR FEDERA L LA WS.In
the event that Federal,state or county laws or regulations or
the action or inaction of any other governmental department or
entity having jurisdiction prevent,preclude or materially
interfere with compliance with one or more material provisions of
this Development Agreement or the Development of the Property in
accordance with the Concept Plan or require changes in Building
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Permits or Development Approvals then already issued or approved
by the City,Developer shall at any time prior to the closing of
the Contract of Sale have the right to provide the Agency with
written notice of such Federal,state or county laws or
regulations or such action or inaction and shall,together with
such notice,provide a
statement identifying
copy of such law or regulation and a
the conflict between such laws or
regulations or action or inaction,as applicable,and the
provisions of this Development Agreement,and the parties shall:
A.Within thirty (30)days thereafter,meet and confer
in good faith in a reasonable attempt to modify this Development
Agreement to comply with such Federal,county or state laws or
regulations or the result of such action or inaction.
B.In the event any Federal or state law or regulation
or action or inaction,as applicable,shall prevent,preclude or
materially interfere with compliance with one or more material
provisions of this Development Agreement or the development of
the Property in accordance with the Concept Plan,on or before
the date of closing of the Contract of Sale on not less than
thirty (30)days'prior written notice to the Agency,Developer
shall have the right to cancel and term inate this Development
Agreement.In the event such a cancellation notice is given,
this Development Agreement and the Contract of Sale shall be
deemed cancelled and term inated as of the date set forth therein,
and further,Developer shall be entitled to the remedies set
forth in the Contract of Sale.
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9.COMMENCEMENT OF CONSTRUCTION.A.It is understood by
the parties that the Property is to be developed as a single,
unified residential condominium project with ancillary commercial
uses,including all uses permitted under CPS-I zoning,as well as
real estate sales,rental/leasing,or condo/management offices
within the residential portions of the Project,as more
particularly described in the Concept Plan.The parties
acknowledge and agree that Developer's construction lender has
reviewed and approved the form of this Agreement,and Developer
warrants that the Commitment and End Loan Approval Letter
described below are,to the best of its knowledge,in full force
and effect on even date.Further,prior to and as a condition of
the closing of the Contract of Sale,Developer will submit to the
Agency for its approval,the following security for its
commitment and obligation to complete the entire Project by the
Completion Date set forth in Subsection B of this Section 9,all
in accordance with the Concept Plan and approved Design Plans:
(1)Evidence satisfactory to the Agency that the
construction loan commitment described on Exhibit F hereto (or a
comparable substitute commitment),will close simultaneously with
the closing of the Contract of Sale,including,but not limited
to,the delivery by Developer to the Agency of an estoppel letter
from the construction lender certifying that said commitment·is
in full force and effect,that the Developer has satisfied all
conditions of closing of the construction loan as contained
therein,and that all conditions of funding have been met or may
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be met within the time required for Developer's performance under
this Agreement or the Contract of Sale.
(2)Evidence satisfactory to the Agency that the
End Loans Approval Letter,a copy of which is attached hereto and
made a part hereof as Exhibit G,is in full force and effect and
that Developer has satisfied all conditions of said letter as
pertains to the qualification of the Project for the financing of
unit purchases.
(3)Such assurance and/or guaranties of
completion as are required by Developer's construction lender.
(4)Letter(s)of credit in the form attached as
Exhibit H issued by an institution reasonably acceptable to
Agency,to secure Developer's obligation to timely complete the
Project,in the aggregate amount of the projected tax increment
for one year,or Two Hundred and Fifty-Five Thousand Dollars
($255,000.00).
B.Developer shall commence construction of the
Project within thirty (30)days after the closing of the Contract
of Sale (hereinafter "Commencement Date")and shall continue
construction substantially in accordance with the Development
Schedule attached hereto and made a part hereof as Exhibit I so
as to complete construction of all portions of the Project by a
date which is 24 months from the Commencement Date (hereinafter
"Completion Date").
C.Developer shall have no obligation to close on the
Contract cf Sale or commence construction of the Project until
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each of the following conditions is met:(i)there shall be no
pending litigation challenging Developer's interest over which
Ticor Title Insurance Company or a title insurance -company of
comparable·standing would not offer affirmative insurance at
normal premiums and with no exception for such litigation,or as
to which Developer's lender will not fund its construction loan;
and (ii)the Agency shall have delivered exclusive vacant
possession of the Property in accordance with Subsection 9.D.
below:and (iii)there is no material default by the Agency or
the City on any obligation owed to Developer pursuant to this
Development Agreement,
Contract of Sale.
including,without limitation,the
D.At least 90 days prior to the date of closing of
the Contract of Sale the Agency shall deliver to Developer a
notice specifying the date upon which the Agency anticipates that
it will be in a position to (a)deliver to Developer vacant
possession of the Property,free and clear of all tenants and
other occupants and claims to occupancy and (b)close on the
Contract of Sale ("Closing Date")by conveying good and
marketable title to the Property,which proposed Closing Date
shall be not earlier than the latest of:(i)4 months after
Developer's receipt of the Agency's Specific Performance Notice,
(ii)5 months after receipt of notice of final design approval
(upon which Developer shall commence preparing working drawings
and fulfilling any other pre-closing requirements),(iii)the
date determined in accordance with Subsection 5.B.hereof,or
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(iv)10 months after the date this Agreement is executed;and
such proposed Closing Date shall not be later than the earlier
of:(i)32 months after the date this Agreement is executed,or
(ii}10 months after Developer's receipt of the Specific
Performance Notice (unless extended in accordance with the terms
of this Agreement or the Contract of Sale).Prior to said
Closing Date,the Agency shall remove by demolition or otherwise
all above-ground buildings and all privately owned below-ground
structures,improvements and personal property (other than
utility lines and equipment}from the Property,retaining the
same as the property of the Agency;however,but in no event
shall the Agency be required to remove or relocate,or cause to
be removed or located,privately-owned utility lines,including
electrical,gas,and/or telephone conduits and equipment,or
abandoned City-owned utility lines.Subject to the events
described in Section 13 hereof,once Developer commences
construction with respect to the Property,Developer shall
proceed without delay to complete the same.Notwithstanding the
Agency's duty to demolish,remove or relocate,or cause to be
demolished,removed or relocated,the above-ground buildings and
privately owned below-ground structures,improvements and
personal property,with the exception of privately-owned utility
lines or abandoned city-owned utility lines,Developer agrees to
pay the Agency at time of closing,as a reimbursement of a
portion of the cost of demolition and relocation,the amount set
forth in Schedule J-1 of Exhibit J,and to otherwise perform its
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obligations under Exhibit J.The Agency agrees to perform its
obligations under Exhibit K,and to procure the easement set
forth in Schedule K-1 of Exhibit K.Notwithstanding anything
contrary stated herein or in the Contract of Sale,upon written
request by Developer's construction lender,the Agency will
extend the closing of said Contract for up to 30 days to permit
the simultaneous closing of the Contract of Sale and the
construction loan.
10.PUBLIC FACILITIES PLAN I EASEMENTS.(a)In order
to promote and protect the public health,safety and welfare and
in order to assure the orderly development of the Property,the
parties agree that certain public facilities must be provided in
a timely fashion by each party.Accordingly,the parties shall
make public improvements in accordance with Exhibits J and K
hereof (including the Schedules thereto),which set forth the
responsibilities and obligations of the parties with respect to
the timing and phasing of the provision of public facilities for
the benefit of the city and the financial obligations of the
parties with respect to provision of said public facilities.
(b)The parties specifically agree that as to their
respective obligations,additional documents and approvals,
including,but not limited to,documents containing vacations,
legal descriptions and easements,bonds (and the amounts
thereof),and the like may be necessary to implement the
provisions of this Agreement.Developer and the Agency,as part
of the Development Approval process,shall execute and deliver in
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a timely fashion such approvals as may be required by law.The
form and sufficiency of all such documents shall be reviewed and
approved by the City Attorney for the City and by counsel for the
respective parties hereto,and no legal approval shall be
unreasonably withheld.The parties also agree to cooperate in
good faith with respect to the timing of the fulfillment of their
respective obligations and with respect to dedications of land,
notwithstanding the absence of a specific agreement herein,where
the same is consistent with the spirit and intent of this
Agreement.
11.DEFAULT.REMEDIES AND TERMINATION.In the event that
Developer,on the one hand,or the Agency,on the other,believes
that the other party to this Development Agreement is in default
with respect to any term or condition herein contained or those
contained in the Contract of Sale,the party alleging such
default or breach shall give the breaching party Notice of
Default in the manner provided in Section 18 of this Development
Agreement.The Notice of Default shall specify the nature of the
alleged default and,where appropriate,the manner and period of
time in which said default may be satisfactorily cured.In no
event.shall the period of time referred to herein be less than
thirty (30)days measured from the date of mailing of the Notice
of Default.During any period of curing,the party charged shall
not be considered in default for the purposes of termination or
ins ti tut ion of legal proceedings.If·the default is timely
cured,then no default shall be deemed to have existed,and the
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noticing party shall take no further action.After proper Notice
of Default,and the expiration of said curative period,the
noticing party to this Development Agreement may,at its option,
institute legal proceedings for enforcement of this Development
Agreement.Failure or delay in giving Notice of Default pursuant
to this Section shall not constitute a waiver of any default.
Except as otherwise expressly provided in this Development
Agreement,any failure or delay by a party in asserting any of
its rights or remedies as to any default shall not operate as a
waiver of any default or of any such rights or remedies,or
deprive such party of its right to institute and maintain any
actions or proceedings which it may deem necessary to protect,
assert or enforce any such rights or remedies.In the event that
litigation is commenced to interpret,enforce,terminate or
otherwise determine the rights of the parties hereunder,the
prevailing party in any such litigation shall be entitled to
collect reasonable attorneys'fees,court costs and other direct
costs incurred in enforcing,prosecuting or defending the action
from the opposing party or parties through and including
appellate proceedings.
12.ENFORCED DELAY AND EXTENSION OF TIME FOR PERFORMANCE.
Performance by any party hereunder shall not be deemed to
constitute a default where delays or inability to proceed in
accordance with the terms hereof are due to war,insurrection,
strikes,walkouts,riots,floods,earthquakes,fires,hurricanes,
casualties,acts of God,rain days (as customarily understood in
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construction contracts),or similar bases for excused performance
which are beyond the reasonable control of the applicable party;
provided,however,that lack of financial resources shall not be
deemed a basis for excused performance.Such an extension shall
run from the time of commencement of the condition causing the
delay or inability and proceed until the same has ended.
13.ENCUMBRANCES AND RELEASES OF REAL PROPERTY.
A.The parties agree that during the term of this
Development Agreement,Developer shall have the right to mortgage
or hypothecate the Property in accordance with the construction
loan commitment attached hereto as Exhibit F,or any replacement
financing which is satisfactory to the Agency,and that nothing
contained in this Development Agreement shall constitute a
prohibition on such activity.
B.The Agency hereby agrees to provide the proposed
lenders with written assurances with respect to any proposed
mortgage or financing transaction,as well as with estoppel
certificates,indicating whether this Development Agreement is in
full force and effect,whether there are any defaults hereunder
and whether any amounts are owing by Developer hereunder and,if
so,specifying the same,that the development rights created
hereunder are available to the prospective mortgagee as a
potential Successor Developer,the amounts,if any,then owing by
the Agency to Developer pursuant to this Agreement and with
respect to such other matters as may be reasonably requested by
Developer or such prospective mortgagee.Moreover,the Agency
23
agrees to give any mortgagee notice of any alleged default by
Developer under this Development Agreement,if so requested by
the mortgagee and provided notice of the name and address of such
mortgagee is given to the Agency,and to grant to such mortgagee
the right to cure any such default on behalf of Developer within
the times herein provided to Developer for any such opportunity
to cure.
14.RE CORDING.As required by law,Agency will record this
Agreement or a memorandum stating the essential term s thereof in
the Public Records of Dade County,Florida.
15.TERM OF AGREEMENT.A.The term of this Development
Agreement shall commence upon its complete execution by the
parties hereto,and shall extend for a period of ten (10)years
from the date of its execution,unless (i)said term is altered
by mutual consent of the parties or (ii)this Development
Agreement is term inated as contemplated herein.
B.The Agency hereby covenants and agrees that upon
issuance of certificates of occupancy for uni ts constructed in
the Project in accordance with the Design Plans,the Agency shall
execute and deliver to the Title Company,as escrow agent,
appropriate partial releases of this Agreement in form and
substance acceptable to the Title Company and suitable for
recording with the Clerk of the Circuit Court of Dade County or
as may otherw ise be necessary to effectuate a complete and total
release of such completed units from the requirements of this
24
Development Agreement.The Title Company shall deliver and/or
record the partial release for any unit sold upon 3 days'advance
notice to Agency.
C.The Agency hereby covenants and agrees that upon
issuance of certificates of occupancy for all of the improvements
constructed in the Project in accordance with the Design Plans,
this Agreement shall automatically terminate and become null and
void (and all letters of credit or other security provided by
Developer shall terminate 60 days thereafter).Notwithstanding
the automatic termination hereof,upon request,the Agency shall
execute and deliver to the Clerk of the Circuit Court of Dade
County appropriate releases of this Agreement in form and
substance acceptable to the Clerk or as may otherwise be
necessary to effectuate a complete and total release of the
Property from the requirements of this Development Agreement.
D.Developer hereby covenants and agrees that upon
performance by the Agency of all of its obligations under this
Development Agreement,Developer shall execute and deliver to the
Clerk of the Circuit Court of Dade County appropriate releases of
this Agreement in form and substance acceptable to the Clerk or
as may otherw ise be necessary to effectuate a complete and total
release of the Agency from the requirements of this Development
Agreement.
16.OPTION TO REPURCHASE AND/OR TERMINATE.A.Provided
the Agency is not in default and has not itself extended the term
of this Agreement,the Agency shall have and is granted the
25
following options upon the terms and conditions hereinafter set
forth (the "Option"):
(1)If the Agency and the Developer shall not have
closed on the Contract for Sale on or before sixty (60)days
of the Closing Date specified in the Agency's Notice to
Developer pursuant to Paragraph 9.D.hereof,then subsequent
to said date the Agency shall have the Option to terminate
this Development Agreement and the Contract of Sale unless
said date has theretofore been extended by agreement of the
parties,in which event the Agency's Option shall not
commence until the extended Closing Date;or
(2)If the Agency and the Developer have closed the
Contract of Sale,but Developer has failed to commence
development on the Property within sixty (60)days of said
closing,provided the Developer has not commenced
development on the date which the Agency gives notice of the
exercise of its Option pursuant to subsection B below,then
the Agency shall have the Option to repurchase the Property
at a purchase price of $2,740,000.00,and to terminate this
Development Agreement.
For purposes of this Development Agreement,Developer shall
be deemed to have commenced development of the Property only when
Developer has begun excavation and installation of foundations
and is proceeding with due diligence and without delay so as to
permit the completion of construction by the Completion Date.
B.The Option shall be exercised by the Agency by
26
giving written notice of its election to Developer specifying the
Option being exercised,and a date not later than 60 days after
such notice at which the Agency shall tender the Option purchase
price and the Developer shall deliver a deed.Failure of the
Agency to timely perform under this Section shall constitute a
waiver of its Option.
c.If the Agency should exercise any of the Options
set forth in Subsection A above,the parties shall enter into an
agreement term inating the rights and obligations of each party
under this Development Agreement,and the Agency will pay to
Developer the aforesaid purchase price,less any sums necessary
to obtain a release of any liens or encumbrances created by
Developer subsequ ent to Developer's acquisition of the Property
and any costs for environmental audits,surv eys,or demolition
not paid or reimbursed by Developer,in immediately available
funds,in consideration of the deli very by Developer to the
Agency of a Special Warranty Deed to the Property (conveying
title in the same state as originally received);however,the
Agency's exercise of its Option to Repurchase shall not impair or
reduce the Developer's obligations or the Agency's rights under
the Letter(s)of Credit described in Subsection 9.A.(4)hereof.
17.ENTIRE AGREEMENT.The Contract of Sale and this
Development Agreement represent the entire agreement of the
parties hereto and no other prior or present agreements or
representations shall be binding upon any of the parties hereto,
27
unless specifically incorporated herein by reference,whether
such prior or present agreements have been made orally or in
writing.In the event of a conflict between the provisions of
the Contract of Sale,on the one hand,and of this Development
Agreement,on the other,the provisions of this Development
Agreement shall control.No modification,change,amendment or
extension of the terms or provisions of this Development
Agreement shall be valid or binding upon any of the parties
unless in writing and executed by the parties to be bound
thereby.
18.NOTICES AND DEMANDS.All notices,demands,
correspondence and communications between the City,the Agency,
and Developer shall be deemed sufficiently given under the terms
of this Development Agreement if dispatched by registered or
certified mail,postage prepaid,
addressed as follows:
If to the Agency:
return receipt requested,
Miami Beach Redevelopment Agency
1700 Convention Center Drive
Miami Beach,Florida 33139
Attention:Executive Director
with a copy to:
Miami Beach Redevelopment Agency
1700 Convention Center Drive
Miami Beach,Florida 33139
Attention:General Counsel
28
As to Developer:
Cobb Partners Development,Inc.
1575 San Ignacio Avenue,Suite 400
Coral Gables,Florida 33146
Attention:Gary D.Engle
with copies to:
David H.Nevel,Esq.
Nevel &Lowy
407 Lincoln Road,Suite 12 D
Miami Beach,Florida 33139
and
Roland St.Louis,P.A.
1390 South Dixie Highway
Suite 2222
coral Gables,Florida 33146
or to such other address and to the attention of such other
persons as the Agency or Developer may from time to time
designate by written notice to the other.
19.INDEMNIFICATION OF AGENCY.Developer hereby agrees to
indemnify and hold the Agency,its officers,agents,employees,
and representatives harmless from liability for damage or claims
for damage for personal injury,including wrongful death,and
claims for property damage,which may arise from the direct or
indirect operations of the Developer,or those of any contractor,
subcontractor,agent,employee,or other person acting on
Developer's behalf,which relate to the development of the
Property.Developer agrees to,and shall defend at its sole cost
and expense,the Agency and its officers,agents,employees,and
representatives from actions for damages caused,or alleged to
have been caused,by reason of Developer's activities in
29
connection with the Property.This indemnification agreement
applies to all damages and claims for damages,including,without
limitation,interest,costs and attorneys'fees,suffered or
alleged to have been suffered by reason of the operations
ref erred to herein,rgardless of whether or not the Agency
approved the plans or specifications or both for the Property.
It is understood,however,that this indemnification agreement
does not apply to acts or omissions of the Agency,or of its
officers,agents,employees or representatives.
20.CAPTIONS.The captions of this Development Agreement
are for convenience and reference only,and in no way define,
describe,extend or limit the scope or intent hereof.
21.SUCCESSORS AND ASSIGNS.This Development Agreement
shall be binding upon and inure to the benefit of the parties
hereto,and,except as otherwise provided herein,their
respective successors and assigns.
22.GOVERNING LAW/VENUE.This Development Agreement
shall be governed in its enforcement,construction,and
interpretation by the laws of the State of Florida.
23.RELATIONSHIP OF PARTIES.It is specifically
understood and agreed by and between the parties hereto that:
(1)the subject development is a private development;(2)
30
Developer shall have full power over and exclusive control of the
Property once conveyed pursuant to the Contract of Sale,subject
only to the rights,limitations and obligations pursuant to this
Development Agreement;and (3)the relationship of the parties is
contractual in nature,and that the Agency is not a joint
venturer,partner or agent of Developer.No third party shall be
deemed a third party beneficiary of this Development Agreement,
nor shall the same be enforceable by any such third party.
24.TIME IS OF THE ESSENCE.The parties specifically
agree that time is of the essence regarding this Development
Agreement.
25.SEVE RA BILITY.If any term or provision of this
Development Agreement or the application thereof to any persons
or circumstances shall,to any extent,be invalid or
unenforceable,the remainder of this Development Agreement,or
the application of such term or provision to persons or
circumstances other than those as to which it is held invalid or
unenforceable,shall not be affected and the same shall be
enforced to the fullest extent perm itted by applicable law.
26.FUR THER ASSURAN CES.The parties hereto shall
forthwith execute and deliver all other appropriate supplemental
agreements or other instruments or documents and take any other
action required to accomplish the purposes described herein.
31
IN WITNESS WHEREOF,this Development Agreement has been
executed by the parties on the day and year first above written.
Signed,sealed and delivered
in the presence of:cq,A
rsl/031389
MIAMI
COBB PARTNERS DEVELOPMENT,
INC.,a n
FORM APPROVEDREDEVELOPMENTAGENCYGENERALCOUNSEL
rs2z&.
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32
,"
STATE OF FLORIDA)
)ss:
COUNTY OF DADE )
I HEREBY CERTIFY that on this day,before me,an officer
duly authorized in the State and County aforesaid to take
acknowledgm ents,personally appeared
•e l]Kn own to me to be the
Executive Director of Miami Beach Redevelopment Agency,a public
agency organized and existing pursuant to the Community
Redevelopment Act of 1969,Chapter 163,Part III,Florida
Statutes (1985,as amended),and that he acknowledged executing
the foregoing document,freely and voluntarily under authority
duly vested in him by said corporation and that the seal affixed
thereto is the true and correct seal of said corporation.
WITNESS my hand and official seal in the County and State
last aforesaid this 3/day of March,1989.
tate of Florida
My Commission Expires:
Notary-
TAR?:c.at-EargeA
,t .»...o -o...3:Y 5.1331.
BOND THRO IOTAfY FULLI LARBI(ES
STATE OF FLORIDA)
)ss:
COUNTY OF DADE )
I HEREBY CERTIFY that on this day,before me,an officer
duly authorized in the State and County aforesaid to take
acknowledgm ents,personally appeared
•Well Kn0Wh to me to be the
President of Cobb Partners Development,Inc.,a Florida
corporation,and that he acknowledged executing the foregoing
document,freely and voluntarily under authority duly vested in
him by said corporation and that the seal affixed thereto is the
true and correct seal of said corporation.
WITNESS my hand and official seal in the County and State
last aforesaid this j/day of March,1989..ta,$;
NGEanyD1ice,Sta te of F oriaa
,e;starse
My Commission Expires:••.-«so
33
·,
EXH IBITS
Ex hib it A -Leg al Des c ript io n of Sou th Sho re R edevelop men t Area
Ex hib it B -Leg a l Des c riptio n of Pr op e r ty
Ex hib it C -Ch r on o lo gic a l Cr o s s -Reference
Ex hib it D -Del ibe r at e ly om itt e d
Ex hib it E -Dev e lo p e r 's R e spo n se to RF P
Ex hib it F -Con st ru ctio n Loa n Com mit m en t
Ex hib it G -En d Loan s A p prova l Let t e r
Ex hib i t H -Let te r (s )of Cr e dit Se cu r in g Tax Inc r emen t
Ex hib it I -Pr o jec t Deve l o p men t Sc h ed u le
Ex hib it J -Deve lo p er's Additional Obligations
Ex h ib it K -A g en cy 's A d ditional Obligations
Exhibit L-Certificate of Developer's Corporate Action
EXHIBIT A
BOUNDARY DESCRIPTION
The South Beach Redevelopment Project Area,hereinafter
called the "project area,"is delineated on the Project Boundary
and Land Use Plan Map designated as Exhibit A,and is more
particularly described as follows:
All that real property in the City of Miami
Beach,County of Dade,State of Florida,
within the following-described boundaries:
Beginning at the Northwesterly corner of LOT 2,BLOCK 1,
FLEETWOOD SUBDIVISION,according to the AMENDED PLAT thereof asrecordedinPlatBook28,Page 34 of the Public Records of Dade
County,Florida;
Thence run Easterly along the Northerly line of said LOT 2 for a
distance of 150.7 feet more or less to a point,said point being
the Northeasterly corner of said LOT 2;
Thence continue along above mentioned course for a distance of so
feet more or less,across West Avenue,to the intersection withWesterlylineofBLOCK2,FLEETWOOD SUBDIVISION,according to th
AMENDED PLAT thereof as recorded in Plat Book 28,Page 34 of the
Public Records of Dade County,Florida;
Thence run Southerly along the Westerly.line of said BLOCK 2 foradistanceof160.3 feet more or less to a point,said pointbeingaPointofCurvature(P.C.)of a circular curve concave tctheNortheastandhavingforitselementsaradiusof15feetand
a central angel of 90°;
Thence run along said circular curve an arc distance of 23.6 feet
more or less to the Point of Tangency (P.T.);
Thence Easterly along the Northerly line of Sixth Street for zdistanceof2679.4 feet more or less to the Point of IntersectiorwiththeEasterlylineofWashingtonAvenue;
Thence run Southeasterly along said Easterly line of WashingtorAvenuefora,distance of 164.3 feet more or less to the point otIntersectionwiththeNortherlylineofa20footalleyknot
presently as Sixth Street;
Thence run Easterly along the Northerly line of said Sixth Stree'
for a distance of 713.7 feet more or less to the Point o:
Intersection vith the Easterly line of Ocean Drive;
:'t
Thence continue along above described course (Northerly line of
Sixth Street projected Easterly)for a distance of 1400 feet more
or less to a point;
Thence run Southwesterly along the line parallel to and 1680 feet
more or less Easterly of the East line of Collins Avenue for a
distance of 2800 feet more or less to a point;
Thence run Southeasterly at an angle of 90°with the previous
course at a distance of 660 feet more or less to a point;
Thence run Southwesterly at an angle of 90°with the previous
course a distance of 2100 feet more or less to a point;
Thence run Westerly along the line parallel to and JOO feet more
or less South of the Northerly limits of Government Cut for a
distance of 3900 feet more or less to a point;
Thence run Northwesterly along the line parallel to and 620 feetmoreorlessSouthwestofexistingbulkheadline(M.H.W.Line)
for a distance of 1000 feet more or less to a point;
Thence run Southwesterly at an angle of 90°with the previous
course a distance of 95 feet more or less to a point;
Thence run Northwesterly at an angle of 90°with the previous
course a distance of 500 feet more or less to a point;
Thence run Northeasterly at an angle of 90°with the previous
course for a distance of 95 feet more or less to a point;
Thence run Northwesterly along the line parallel to and 620 feetmoreorlessSouthwestofexistingbulkheadline(M.H..Line)for a distance of 2500 feet more or less to a point;
Thence Easterly along the line parallel to and 175 feet more orlessNorthoftheNorthlineofSixthStreetproducedWesterly
for a distance of 930 feet more or less to the Point ofBeginning.
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CHRONOLOGICAL CROSS-REFERENCE
FOR DEVELOPMENT APPROVALS AND CLOSING
DESIGN APPROVAL PNCRSSi ,-
1 Likely Period of Determining •-Taking"Issue
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CLOSING PARAMETERS±
l.Closing set by Agency not less than lO months
nor more than 32 months after execution of the
Agreements,
2.Closing et not sooner than l5 days after
issuance of building permit.
3.Closing set not sooner than 60 days after
possession of entire Property by Agency
4.Closing et not sooner than 90 days after
Agency's notice to close and final zoning
approval (adoption of overlay code)
5.Closing set not sooner than l20 days after
delivery of Specific Performance Notice.
6.,Up to 30 days extension for simultaneous
closing with construction lender.
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EXHIBIT E
[This Exhibit incorporates by reference each of the following
documents as if the same were fully set forth herein:the Miami
Beach Redevelopment Agency's Request for Proposals for Police
Station Site (South Pointe),dated February 1,1988;the
Developer's Response to RFP dated June 8,1988;Minutes of the
Redevelopment Agency's Selection Committee Meeting dated July 1l,
1988;and Minutes of the Meeting of the Miami Beach Redevelopment
Agency dated July 27,1988,all of which are on file with,and
copies of which may be obtained from,the City Clerk,as well as
the attached parking schematics.]
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Vice President
Telephone:212-850-3014
EXHIBIT F
Mailing Address:.
PO.Box 318,Church Street SationNewYork,New York,10015
Cobb Partners Development,Inc.
1575 San Ignacio A venue
Suite 400
Coral Gables,FL 33146
Attention:Gary Engle
March 10,1988
Revised Loan Commitment
200 Unit (approximate)Townhome Development,
Blocks 78 and 80,Miami Beach,Florida
Gentlemen:
Bankers Trust Company (the "Lender")hereby confirms its commitment to make the
following Loan for the construction of the above referenced project on the following terms
and subject to the satisfaction of the following conditions:
Borrower:
Amount:
Cobb Partners South Beach,Ltd.,a to-be-formed Florida limited
partnership with Cobb Partners Development,Inc.as Managing
General Partner (the "Borrower").
$22,150,000,with up to an additional S6,000,000 in re-borrowings,
which amount reflects a pre-construction loan of $2,150,000 and a
construction loan of $20,000,000,and together with Borrower's
required equity,shall be sufficient to pay 100%of the costs of
completion of the Project in accordance with a budget and draw
schedule to be approved by Lender.(If any construction costs in
excess of the budget and draw schedule are incurred,they shall be
funded from Project revenues or additional capital infusions.)
Subject to the satisfaction of the conditions set forth in this letter,
the construction portion of the Loan shall be advanced after the
Property is acquired,in accordance with a Building Loan
Agreement on Lender's standard form.The pre-construction
portion of the Loan may be drawn and from time to time,on a
unsecured basis,to cover any costs relating to planning,design,
Cobb Partners Development,Inc.
March 10,1989
Page 2
testing,professional fees (including architects,engineers,attorneys
and consultants),marketing,advertising,sales,interest,or approved
budget items.
Project
Description:
Pricing:
Maturity:
Extension Fee:
Equity:
Security:
The project site is a parcel of land,approximately 5.2 acres in size,
described as Blocks 78 and 80,located in Ocean Beach Addition No.
3 in Miami Beach,Florida.The improvements will consist of two
and three story mediterranean style residences containing
approximately 200 multi-level condominiums with a total of
approximately 265,000 square feet constructed over a 364 space,one
story parking deck.Masonry construction will be utilized,featuring
a stucco exterior with barrel tile roofing.Unit mix of one,two and
three bedroom units will be determined by the borrower subject to
Lenders approval.The development will also include a pool,
athletic club,open courtyards and 24 hour security.In addition to
residential improvements and a library facility of approximately
5,000 square feet,approximately 17,500 square feet of commercial
space will be constructed.
Prime +1.25%
4 years from closing for pre-construction portion,and 2 years from
date of initial funding for construction portion,each with a one year
extension option,exercisable with 60 day notice.Initial
construction funding shall occur not later than 10/1 /90.
.5%of commitment,payable at election of extension option.
Land to be delivered to the Project free and clear of all liens and
encumbrances.
First mortgage lien on all property and improvements.Assignment
of construction contracts.
The obligations of the Lender to fund the Loan shall be subject to the conditions set
forth in the General Conditions attached hereto and incorporated herein by reference,and
to the following additional terms and conditions:
1.Lender shall be furnished with a guaranty of lien-free completion (the
"Guaranty")of the Borrower's obligations under the Building Loan
Agreement executed by guarantors acceptable to Lender (the "Guarantor")
which Guaranty shall be in form and substance satisfactory to Lender and its
counsel,and performance bonds and/or assurances consistent with lender's
standard construction loan underwriting and administration procedures,by
Cobb Partners Development,Inc.
March 10,1989
Page 3
the Project's General Contractor.The Guarantors shall also execute a
Hazardous Substances Indemnification satisfactory to Lender which
indemnity shall survive any foreclosure or the mortgagor's repayment of the
loan.Cobb Partners Financial,Inc.is an approved Guarantor,subject to
paragraph 3 below.
2.On or before March 17,1989,Cobb Partners Development,Inc.and the
Miami Beach Redevelopment Agency shall have entered into a Purchase and
Sale Agreement and Development Agreement in form and substance
satisfactory to Lender.
3.The credit worthiness of the Guarantor(s)shall be satisfactory to Lender.
Lender has reviewed and approved Cobb Partners Financial,Inc.'s most
recent financial statement,but prior to and as a condition of funding,
Borrower and Guarantor shall submit their then current financial statements,
which shall disclose no material adverse change in their financial condition.
4.Lender must receive and approve prior to closing a project costs budget with
trade payment breakdown and such other detail as Lender shall require,
project draw schedule,partnership documents,condominium documents,
title documents,building permits,evidence of zoning approvals,soil tests and
a hazardous substance report which shall not indicate the existence at the
property of any substances which are hazardous as determined by
governmental agency.
5.I£Block 53,which is subject to an option in factor of Borrower,is also
acquired and developed,the commitment amount will be adjusted to
$25,550,000 (of which $2,550,000 shall be pre-construction and $23,000,000
shall be construction funding)with up to an additional $12,000,000 in
re-borrowings,to reflect the increase in project scope to approximately 290
condominium units,32,000 square feet of commercial space,600 parking
spaces and additional amenities on the approximate 7.7 acre site.Such
increased loan shall be subject to all of the conditions set forth herein and in
the Building Loan Agreement.
Bankers Trust Company reserves the right to convert this commitment to a
participating mortgage structure to be mutually determined and to require such other
collateral as it deems necessary.
3
Cobb Partners Development,Inc.
March l 0,1989
Page 4
In consideration of the issuance of this commitment,Borrower shall pay to Lender a
non-refundable commitment fee of 1%of the loan amount at closing.The Borrower shall
also pay for a mortgagee title insurance policy,and the fees and cost of Lender's construction
and environmentai consultants,in addition to fees for Lender's counsel,all as more.
particularly specified in the General Conditions.Subject to there being no material adverse
change in its financial condition or business,Ticor Title Insurance Company is hereby
approve as a title insurer.
This letter supercedes and replaces in its entirety our letter to you dated October 3,
1988,regarding this Project.
Very truly yours,
JMB:1
4
GENE RAL T ERMS AN D CONDITIONS OF CO NSTR UCT ION FUN DING
I.REQUIREMEN TS FO R CLO SING:Unless waived in advance,Borrower
shall submit the following items to the Le nder as soon as
possib le ,bu t no t la ter than ten business days prior to closing.
Each of the items are subje ct to review and approval by the
Le nd e r and the Le nde r 's Counsel at their sole discretion:
a.Tw o copies of the final Site Plan,Plans and
Specif ications,construction draw schedules,and any
su p p o r ting mate rials reasonably requ ired by Le nder.
b.cer t i ficate of the Engineer or Architect preparing
th e Plans and Spec ifications,on the Le nder's standard
fo rm .
c.Constr uc tion and soft cost budgets (with line item
bre akd own s),on the Le nder 's standard form .
d.cer tifica tion of the costs of construction by the
Le nd e r 's designated Superv ising Architect/Engineer,at
Bor r ower 's expe nse.
e .Evidence that the Project Architect,Engineer,and
General C ontra c t o r are licensed to do business in the
St ate of Florida.
f.Pro of that th e Borrower will purchase the Property
out righ t,witho u t secondary financing that will or may
co n stit u te a li e n against the Property.
g.All boring s and soil compaction reports and
an aly ses sat i sfa c tory to the Le nder's designated
Su perv ising Archit ect/Engineer .
h.Pr o of of compliance with Le nder's insurance
requ irement s ,including approval of the carriers and
cov e rage s,whic h shall include hazard (for the full
insurable value of improvements),public liability and
builde rs'al l risk,each policy naming Le nder as an
additiona l insur ed and providing Le nder with not less
th a n 30 d ays 'prio r written notice of intent to cancel.
i.Ap pr a i sal of the unimproved land for at least the
purch a s e to be paid by Borrower,and reflecting that
upo n completion,th e Project will have a maximum loan-
to -va lue ratio within Le nder 's underw riting limits.
The app ra isal m u st be certified by an M.A.I.Appraiser,
be in form and content acceptable to Le nder,and shall
be perfo rm ed at Borrower 's expense.
·,»
J.To original surveys of the
within 9o days of closing,in
satisfactory to Lender,certified to
title insurer.
Property,current
form and content
the Lender and its
-k.Copies of all building permits for the Project then
in effect,which shall have been validly issued by the
appropriate governmental authority.
l.Proof of zoning approvals,variances and permits
necessary to construct the Project as described in the
Plans and Specifications.
m.Certification,satisfactory to the Lender,that all
Plat or Subdivision requirements have been,or will be,
met.
n.Evidence,satisfactory to the Lender,that
sufficient water and sewer facilities,electrical,
telephone and other services and utilities,and street
access are available and will be furnished to the
Project.
o.Certification,satisfactory to the Lender,that
there are no moratoria currently in effect or proposed
which would prohibit the proposed construction.
p.A Commitment for title insurance,in a form and
provided by a carrier acceptable to Lender,showing
mortgagee insurance over all liens and encumbrances
except those specifically approved by Lender or
Lender's Counsel.
q.Articles of Incorporation,certificates of Limited
Partnership and Good Standing Certificates for each
corporation and partnership executing any of the Loan
Documents,together with certified copies of corporate
resolutions,partnership consents and such other
instruments relating to their composition,standing or
authorization to enter into the transactions
contemplated hereby.
r.Evidence of payment of any outstanding liens,taxes
or other obligations or encumbrances against the
Property,and compliance with the conditions set forth
in the Lender's title commitment.
s.Opinion of Borrower's Counsel in form and content
acceptable to Lender and its Counsel.
t.Copies of the form of unit purchase contracts to be
used,together with all advertising materials and
brochures then in existence.
u.Copies of any condominium or homeowners'
association documents,including all exhibits and
amendments thereto,and approvals of same by applicable
governmental authorities.
v.Copies of all preliminary and final environmental
audits performed on the Property,together with proof
of compliance with respect to any condition shown
thereon.
w.100%Payment and Performance Bonds by the General
Contractor and any material subcontractor not
specifically approved of without bond by Lender.
x.Opinion of Florida Counsel as to any pending or
threatened litigation concerning the Project,in form
and content acceptable to Lender.
Y.FNMA approval of the Project for the purpose of
qualifying end unit residential mortgage loans.
z.Such other or additional items as Le nder may
reasonably require,whether such items constitute a
supplement to or clarification of this letter.
II.CLO SING DOCUM ENTS:Borrower and Guarantors (as appropriate)
shall execute and deliver the following items to the Lender at
closing,each of which shall have been provided by or approved in
advance by Lender or Le nder's Counsel:
a.Promissory Note,in the aggregate loan amount.
b.Mortgage Deed and Security Agreement,creating a
valid and enforceable first lien on the Property.
c.Collateral Assignment of Professional and
Construction Contracts,and rights to use the Plans and
Specifications,relating to the Project.
d.Building
disbursement)
Project.
Loan Agreement
governing the
(including term s
construction of
of
the
e.UCC-1 Financing Statements covering all fixtures
and personalty related to the Project.
f.Collateral Assignment of Leases,Purchase Contracts
and any other collateral and security documents as may
be requ ired by Le nder's Counsel.
g.Collateral Assignment of Licenses,Permits and
Development Rights relating to the Project.
h.Guaranties of Completion by the approved
Guarantors.
i.Hazardous Waste Indemnity in favor of Lender.
j.Borrower's Estoppel Affidavit regarding liens and
other title matters.
k.Closing Statement from the acquisition of the
Property.
l.Certification of compliance with all laws and no
material adverse change in financial condition from the
date of the last financial statements furnished to
Lender.
m.certification of the form and authenticity of all
documents relied upon by Lender or which Lender's
rights are subject.
n.Such other documents as may be required by Lender's
Counsel to fulfill Lender's standard underwriting,
closing or loan administration requirements.
III.FUNDING REQUIREMENTS:Prior to and as a condition of
funding,Borrower shall submit the following items to Lender,
each of which shall be in the form previously approved by Lender
or Lender's Counsel:
a.Copies of all recorded documents affecting title to
the Property or Lender's interests therein.
b.The original policy of title insurance,insuring
Lender's mortgage in the amount of the loan.
c.Certification of compliance with all laws relating
to the Project.
d.Draw requests on Lender's standard form,with such
supplementary documentation as Lender may reasonably
prescribe.
e.Certifications and other documentation relating to
any of the foregoing that Lender may reasonably require
from time to time.'
a,CO PARTNERSFINANCIAL
Terry P.Thompson
President
Cobb Parers Financial,Inc.(407)391-3112
15l5 Norh Federal Highway,Suite 405
Boca Rato n,Florida 33432
EXHIBIT G
January 20,1989
M r.Gary D.En gle,Direct or
Cob b Part n ers Dev elopment,Inc.
157 5 San Ign acio Av enu e
Suit e 400
coral Gable s ,Florida 33146
R e:Sou th Poin te Red evelo pm en t -Miami Beach ,Florid a
De a r Mr .En gle :
This lette r is to ac kn owled g e ou r in ten t to provide
financ in g to qu al i fied buyers of units in your
co n dominiu m townh ou se pr oject in Miami Beach ,Flo rida.
As you kn ow ,it is essent ia l in a project of this si ze to be
able to offer competit ive financing on a contin uin g basis,
regard le ss o f changing mar k et con dit ion s.A s a full-serv ice
m ortgage ba n ker ,w e are in a str on g posit io n to assist you in
this reg a r d due to ou r ac cess to,an d ex pe rtise in ,the
se c ondary m or tg ag e m arket .A cco r d ing ly,we are pr ep a red to
of fer 80%LTV loan s at com p etit ive indu st ry rates fo r both
fixed and adju st able rat e loans.In or d e r to provide
ad dit ion a l mor tg age pr odu ct s an d fin ancing up to 90%LTV ,we
wil l agree ,as par t of ou r fin an c ing propo sal,to work
d il ig ently to obt ain the app roval of th e projec t by Fannie Mae.
W hile w e have favorab ly reviewed you r prel imina ry design
ske tch es an d sit e plan ,act ual pr ojec t approval mu st be
pr o c essed after th e com p le tion of w orking drawin gs,an d on the
ba sis of the cur ren t appr a isals an d sa t isfac t o ry review of the
co n d ominiu m document s.W e wou ld like to ge t involved in the
ea rly pla nnin g st age of the pr ojec t to mak e ce r t a in that the
ove r all deve lo pmen t pla n ,as w e ll as th e con stit uen t doc u ments,
are con s istent with the sec ondary m ark et lendin g requ iremen ts.
W e app recia te th e opp ortunity of offer ing pe rm anent financing
on th is pro je ct and loo k forw ard to workin g with you .
V ery tru ly y our s,
T PT /sb
pe rm anent
pr op osed
EXH IBIT H
(ISSUING BANK]
IRREVOCABLE STANDBY LETTER OF CREDIT NO.
(DATE OF ISSUE]
MAXIMUM AM OUNT:$255,000.00(U.S.)
Miami Beach Redevelopment Agency
1700 Convention Center Drive
Miami Beach,Florida 33139
Gentlemen:
We hereby establish our Irrevocable standby Letter of Credit
in your favor at the request and for the account of Cobb Partners
South Beach,Ltd.,a Florida limited partnership (the
"Applicant"),for up to the aggregate amount of Two Hundred and
Fifty-Five Thousand Dollars ($255,000.00)available by your
drafts drawn at sight on us,signed by your Executive Director,
and accompanied by the following document:
A notarized statement signed by your Executive Director
stating that:"THE APPLICANT HAS FAILED TO COMPLETE
UNITS OF A CONDOMINIUM DEVELOPMENT KNOWN AS
ON OR
·BEFORE MA RCH 1992,PURSUANT TO THE TERM S OF A
DEVELOPMENT AGREEMENT DATED MA RCH 1989,BY AND
BETWEEN THE APPLICANT AS DEVELOPER AND US AS THE
AGENCY,AND HA S FAILED TO TENDER UPON DEMAND THE PRO
RA TA SHARE OF IMPUTED AD VALOREM TAXES UPON SUCH UNITS
FOR THE PERIOD OF INCOMPLETION AFTER MA RCH 1992.
ACCORDINGLY,WE HEREBY DEMA ND PAYMENT IN THE AM OUNT OF
$,REFLECTING THE SUM OF:THE NUMBER
OF MONTHS (OR PARTS THEREOF)FOR WHICH A CERTIFICATE OF
OCCUPANCY OR COMPLETION HAS NOT BEEN ISSUED FOR THE
TOTAL NUMBER OF UNITS LESS THAN 200 AFTER MA RCH ,
1992,TIMES THE IMPUTED LOST TAXES OF $106.25 PER UNIT
PER MONTH (NOT PREVIOUSLY DRA WN).THIS DRAFT IS DRAWN
UNDER IRR EVOCABLE STANDBY LE TTER OF CREDIT NO.
DATED "
This Letter of Credit is available for paym ent until and
including (and shall thereafter be
automatically renewed for successive one-year periods upon the
anniversary of its issue,until J (the
"Expiration Date").
,4
[ISSUING BANK]
IRREVOCABLE STANDBY LETTER OF CREDIT NO.
Miami Beach Redevelopment Agency
[date of issue]
Page Two
We hereby assure you that all drafts drawn under and in
compliance with this Letter of Credit will be duly honored upon
presentation to us before the Expiration Date.
This Letter of Credit is subject to the Uniform Customs and
Practices for Documentary Credits (1983 Revision:International
Chamber of Commerce Publication No.400).
[ISSUING BANK]
By:_
(Title)
EXHIBIT I
DEVELOPMENT SCHEDULE
(The parties have acknowledged that this Exhibit will be
prepared by Developer and submitted to the Agency within 15 days
after the Agency delivers its Notice to Close.]
EXHIBIT J
DEVELOPER OBLIGATIONS
1.Developer shall provide,at
access,water,hydrant and
improvements on the Project
Department requirements.
its cost,sufficient
related fire safety
site to meet Fire
2.Developer shall pay the costs involved in connecting
water,sanitary and storm sewers at the Project
boundaries (and be responsible for constructing these
utilities on the Project site),contribute the portion
of the cost of streetscape improvements,and such other
infrastructural costs or contributions,determined on
the basis of the current charges,for which estimates
provided by the City are shown on the attached Schedule
J-1,relating to Project Cost Allocations.
3.Developer shall be responsible for the design,
construction and maintenance of a fountain or other
comparable entrance-quality architectural feature on
the triangular island bordering on Alton Road adjoining
the Northwest corner of the Project,the total cost of
which is not to exceed $20,000,pursuant to the
Easement and Maintenance Agreement described below.
The construction of same shall be commenced by
Developer no later than one year after the Commencement
Date.Developer shall submit design plans for the
aforementioned fountain and/or architectural feature
pursuant to Section 23 of the Miami Beach Zoning
Ordinance.
4.For a $61,600 land credit at closing and $275,000 fee
at completion,Developer agrees to build and convey the
commercial space within the Project only to a party or
parties that will purchase outright and contribute to
the City of Miami Beach not later than the issuance of
a certificate of occupancy on the 100th condominium
unit,one or more commercial condominium units
constituting a library facility within the Project of
approximately 5,000 square feet.The F.A.R.of the
Project has·been adjusted in view of Developer's
agreement to procure such contribution,and such
facility will be excluded from consideration for the
purpose of calculating Developer's minimum parking
requirements for the remainder of the Project.The
finished shell of such facility will be provided with
an interior improvement allowance of $54,500,which
shall cover:front and rear doors (including hardware)
of the type utilized in the remaining commercial units,
party walls complete with soundproofing and sheetrock
installed,taped,finished and painted,non-party
(perimeter)walls complete with insulation and
sheetrock installed,taped,finished and painted,chase
provided for air conditioning refrigerant lines,
standard commercial HV AC system,standard electrical
serv ice and outlets term inated in a 200 AM P breaker
panel located within the space,standard accoustical
tile ceiling and lighting fixtures,standard fire
sprinkler system,standard women's and men's restrooms,
and basic flooring.Any floor coverings,upgrades,
improvements or change orders will be done by Developer
for its typical charges,and must be ordered and paid
for in advance by Agency,the City,or their designee.
a4aa..aa4.40al.@ -L
IMPACT FEES»4
PEOPLES 1
ITEM COBB CITY S.BELL FP L HART/HANKS GAS TOTAL
Demoli tion of
Blks.78 &80 34,442.34,442.--------68,884.
Relocation (1)
Assistance 4,568.4,568.--o ----9,136.
Removal of Ser-
vices Lines in
B1ks.78 &80 by
Peoples Gas 9,11 1.-O--------O-9,111.
Extend Existing
Gas Line to
Serve Blk.53 -o--o-------5,888.5,888.
Recreate Gas Loop
via a 4"Line
East on 2nd Street -o--o-------24,483.
Remove Existing
Overhead and Rein-
stall Underground All All
Phone Lines in Associated Associated
B1ks.78 &80 -o--0-Costs ------Costs
Provide Temp
Phone Service
to BIk.53 -o-5,000.-0-------5,000.
Relocate 3,000
pair Cable fr om
Jefferson to
Alton Road 200,000.-o--o-------200,000.
Remove Existing All All
Power Lines from Associated Associated
BLks.78 &80 -o--0---Costs ----Costs~
.....Provide Under-All All
ground Power to Associated (Associated
B1ks.70 &80 -o--o---Costs ----Costs
1/30/89
5
EXHIBIT J-1
IMPACT FEES
PEOPLES ..,.
ITEM COBB CITY S.BELL FPL HART/HANKERS GAS TOTAL
Provide Temp.
Overhead power
to BIk.53 -o-15,880 ------15,880
Sanitary Sewer
Tap &Service
to Site @ Alton 2 )
&Meridian 15,320.-o---------15,320.
Portable Water/
Fire Service 12"
Tap @ Alton,4-
3/4"Meters 2-2"
Fire Meters (3)
&Taps 33,700.-o---------33,700.
All All
Cable T.V.Associated Associated
Services -o-------Costs --Costs
Property Taxes
For unimproved
Property
(assumes 4 (4)Tax Free
months)20,000.Status --------20,000.
County Impact
Fees (assumes (5)
200 x $750)150,000.-o---------150,000.1
Library Dona-
tion/Purchase/(6)
Sale 520,000.275,000.--------795,000.
-2-
1/30/89
1ni ill a"I
IMPACT FEES
PEOPLES
ITEM COBB CITY S.BELL FPL HART/HANKS GAS TOTAL
Streetscape
lst &2nd fr om
Alton to Ocean
and Meridian (7)
from 1st to 2nd 100,000 475,406 --------242,526.
Entry Feature
@ Alton Road 20,000 ----------20,000.
Contributions
Towards Secur-·
ing the Safe
Neighborhood
Grants 15,000 Costs --------15,000.
TOT AL S &
AVERAGES
1/30/89
DMN
1,122,141.810,296 ALL COST ALL COST
-3-
ALL COST 30,371.00 1,962,808.0i
«··«.,,ea »
EXHIBIT J-1
IMPACT FEES
(1)Cobb will pay 50%of relocation cost up to a maximum of
$4,568.00,at closing.
(2)This is the estimated cost based upon current charges
provided by the City for sewer tie-in (no subsequently
determined increases in such charges or surcharges will be
paid by Cobb,and Cobb will retain any overage).
(3)This is the estimated cost based upon current charges
provided by the City for water tie-ins and meters (no
subsequently determined increases in such charges or
surcharges will be paid by Cobb,and Cobb will retain any
overage).
(4)If,because of Agency's tax-exempt status,Cobb is not
required to pay ad valorem taxes on the Property for that
portion of the year in which closing takes place which would
ordinarily be allocated to Cobb,Cobb will pay an amount
equal to the imputed unimproved property taxes for that
period to the Agency.
(5)Impact fees are based on Dade County current maximum rates
and could be reduced because of the County's implementation
policy.
(6)This contribution was given in view of an adjustment in the
Project's F.A.R.requirement,and no additional parking is
to be required on account of such library facility.
(7)These funds are allocated for street and right-of-way
improvements adjacent to and surrounding the Property.
Should all landscape/streetscape costs surrounding the
perimeter of the Project be funded by the State of Florida,
Cobb's contribution will be available for use by the City to
extend such improvements on 1st and 2nd Streets.However,
should the required funding not be provided by the State,
the City of Miami Beach guarantees funding and completion of
the work at the same time as the Project is completed and
the final c.o.is issued.See Miami Beach Enterprise Zone-
Safe Neighborhoods Improvement District No.1,Capital
Improvements Project Proposal to the State,dated January
1989,for a description of work to be performed in the areas
of Alton Road,between 1st and 2nd Streets,1st and 2nd
Streets between Alton and Washington,and Meridian between
1st and 2nd Streets.Additionally,the City will make
similar landscape/streetscape improvements to 1st and 2nd
Streets between Washington and Ocean Avenues,so as to
assure continuity of design and a consistent visual
corridor.If Developer acquires Block 53,improvements
intended for Meridian Avenue shall be placed instead on
Washington Avenue between 1st and 2nd Streets.
4
EXHIBIT K
AGENCY OBLIGATIONS
1.Once the Agency has acquired the Property but prior to
the closing of the Contract of Sale,the Agency shall
request that the City initiate,as expeditiously as
possible,public hearings pursuant to applicable State
statutory and/or City Charter and Code requirements
necessary to consider and act upon the vacation of that
portion of Jefferson Avenue south of Second Street and
north of First Street,and to abandon all City-owned
utility lines within the Property,including water,
sewer,and storm drain pipes,leaving them in place.
It will be the Developer's responsibility to remove
such abandoned City-owned utility lines,if required.
Developer shall not be obligated to proceed with the
closing of the Contract of Sale unless and until such
vacation has occurred.
2.Once the Agency has acquired the privately-owned
parcels located within the Property,the City has
agreed to convey to the Agency the City-owned Property
located within the Property,which intent is evidenced
by Resolution No.87-19121.The Agency shall utilize
its best efforts to acquire and demolish improvements
on the privately-owned parcels and to provide necessary
replacement housing,as applicable,in accordance with
the terms of this Development Agreement and in
compliance with federal law and regulations.
3.Agency shall provide the streetscape and other
infrastructural improvements as shown on the attached
Schedule J-1,relating to Project Cost Allocations,and
shall fully cooperate with Developer in seeking the
compliance and cooperation of third parties.Agency
shall implement a special landscape/streetscape
district surrounding the Project and extending the full
length of 1st and 2nd Streets.To the extent legally
permissible and to the extent that it has the power,
the Agency will use its best efforts and all reasonable
means to cause the City to properly review adjacent
projects,including entrances,service areas,garbage
collection,height,bulk,scale,and massing of such
projects to ensure that such projects comply with the
Redevelopment Plan,and other applicable laws,
ordinances and regulations.
4.Agency shall obtain the execution and delivery of an
Easement and Maintenance Agreement in the form attached
hereto as Schedule K-1,concerning the triangular
island described above;and shall reasonably cooperate
with Developer's application for design approval.
5.Agency shall provide or obtain for Developer the right
to utilize one half of the streets on the North,East
and South of the Project,as necessary,for and during
construction.
6.Agency shall fully cooperate with Developer or its
successor-in-interest's efforts to qualify the
contribution of the library facility for a Community
Contribution Tax Credit pursuant to Section 220.183,
Florida Statutes,with Developer's efforts to obtain
removal of private utility lines from the vacated
street rights-of-way without cost pursuant to the
City's franchise or license agreements,and with
Developer's efforts to obtain limited parking
privileges in the lot(s)at South Beach Elementary
School from the School Board.
a»
SCHEDULE K-1
EASEMENT AND MAINTENANCE AGREEMENT
This Easement and Maintenance Agreement is made this
day of 1989,by the City of Miami Beach,
Florida,a municipal corporation with powers and authority
conferred under the Florida Cons ti tut ion ("Grantor"),the Miami
Beach Redevelopment Agency,a public agency organized and
existing pursuant to Chapter 163,Florida Statutes ("Agency"),
and Cobb Partners South Beach,Ltd.,a Florida limited
partnership ("Grantee").
WHEREAS,Granter is the owner in fee simple title of certain
real property lying and being situate in the City of Miami Beach,
Dade County,Florida,more particularly described on Exhibit A
hereto,consisting of a triangular roadway island bordered by
Al ton Road on the Southwest,Second Street on the North,and
Michigan Avenue on the East (the "Island");and
WHEREAS,Grantee is the developer of a subdivision adjacent
to the Island;and
WHEREAS,Grantee desires,and Grantor is willing to permit
Grantee,on the terms and conditions contained herein,to place
and maintain certain improvements and landscaping on the Island,
which improvements and landscaping are intended to enhance the
appearance of the Island,and have been or are to be reasonably
approved by the Agency as consistent with its Redevelopment Plan;
NOW THEREFORE,for $10.00 in hand paid,the mutual covenants
contained herein and other good and valuable consideration,the
receipt and sufficiency of which are hereby acknowledged,the
Grantor covenants as follows:
1.Grantor hereby establishes,gives,grants and
conveys unto the Grantee an exclusive easement on and
over the Island for the purpose of controlling,
installing,constructing,maintaining and repairing
from time to time certain improvements and landscaping
commensurate with Grantee's subdivision and the South
Shore Revitalization Strategy,as amended;
2.Grantor acknowledges and agrees that this
Agreement is intended to create covenants running with
title to the affected lands,and shall therefore be
binding upon the Granter,its successors and assigns,
and inure to the benefit of the Grantee,its successors
and assigns,expiring years from the date
hereof;
3.Provided always,that Grantee agrees to undertake
the construction of the improvements and placement of
suitable·landscaping on the Island on or -before_______________,and shall continuously
maintain the same for the entire term hereof,at no
cost or expense to the Granter or the Agency;
4.And provided further,that Grantee,for itself,
its successors and assigns,releases,remises,and
forever waives as against Granter and Agency all
claims,demands,actions,damages and causes of action
it or they have or shall have relating to injuries
occurring on the Island,other than those caused by
their reckless or intentional misconduct.
IN WITNESS WHEREOF,the undersigned have executed this
instrument as of the date first set forth above.
Witnessed By:CITY OF MIAMI BEACH
By:---------------
(Seal)
MIAMI BEACH REDEVELOPMENT AGENCY
By:---------------
Executive Director
(Seal}
COBB PARTNERS SOUTH BEACH,LTD.
By:Cobb Partners Development,Inc.,
Its General Partner
By:_
President
(Corporate Seal}
STATE OF FLORIDA))ss:
COUNTY OF DADE )
BEFORE ME,the undersigned.authority,personally appeared
,President of Cobb Partners..-Development,Inc.,the general partner of the Grantee named in
the above and foregoing instrument,and acknowledged that he
executed the same for and on behalf of said partnership as the
duly authorized officer of its corporate general partner,for the
uses and purposes therein set forth and contained.
IN WITNESS WH EREOF,I have hereunto set my hand and official
seal,on this day of 1989,in the State
and County aforesaid.
Notary Public
My Commission Expires:
+a
EXHIBIT L
CERTIFICATE OF SECRETARY OF
COBB PARTNERS DEVELOPMENT,INC.
The undersigned Secretary of Cobb Partners Development,
Inc.,a Florida corporation (the "company"),hereby certifies
that the following resolutions were duly adopted by the Board of
Directors of the Company,by unanimous written consent without a
meeting,pursuant to Section 607.134,Florida Statutes,as of
March 1989:
RESOLVED,that the Company be and is hereby authorized
to negotiate,enter into,execute,deliver and perform
under a Contract of Purchase and Sale and a Development
Agreement with the Miami Beach Redevelopment Agency,
dated March 1989,concerning Blocks 78 and 80 of
Ocean Beach Addition No.3 Subdivision,Miami Beach,
Florida (the "Agreements");and
FURTHER RESOLVED,that '
the President of the Company,be and is hereby
authorized to sign the Agreements and any and all
documents and instruments incident or intended to give
effect thereto,and to take such actions as he deems
necessary or desirable to consummate the transactions
contemplated by the Agreements;and
FURTHER RESOLVED,that all actions previously taken by
any representative or agent of the Company in his
capacity as such that are consistent with or in
furtherance of the foregoing Resolutions are hereby
endorsed,approved and ratified in their entirety.
IN WITNESS WHEREOF,I have hereunto set my hand and affixed
the seal of the Company on this day of March,1989.
______________(L.S.)
(Corporate Seal)
CERTIFICATE OF SECRETARY OF
COBB PARTNERS DEVELOPMENT,INC.
Tha undersigned Secretary of Cobb Partners Davolopment,Inc.,a
Florida corporation (the.'Company'),hereby certifies that the following
resolutions were duly adopted by tha Board of Directors of the Company,by
unanimous written consent without a meeting pursuant to Section 607.134,
Florida Statutes,as of March 14,1989:
RESOLVED,that the Company be and is hereby authorized to negotiate,
enter Into,execute,deliver and perform under a Contract of Purchase
and Sala and a Development Agreement with the Miami Beach Redevelop-
ment Agency,datad March 3 1989,concerning Blocks 78 and 80 of
Ocean Beach Addition No.3 Subdivision,Miami Beach,Florida (the
''Agreements");and
FURTHER RESOLVED,that James E.Davidson,Jr.,the President of the
Company,Frank M.Zohn its'Vice President or Gary D.Engle its'Vice
President,individually,be and are hereby authorized to sign the
Agreements and any and all documents and instruments incident or
intended to give effect thereto,and to take such actions as he deems
necessary or desirable to consummate the transactions contemplated by
the Agreements;and
FURTHER RESOLVED,that all actions previously taken by any
representative or agent of he Company in his capacity as such that
are consistent with or in furtherance of the foregoing Resolutions are
hereby endorsed,approved and ratified in heir entirety,
IN WITNESS WHEREOF,I have hereunto set my hand and affixed the seal
of the Company on this 27th day of March,1989.
.2sis
..(Corporato Seal)
CONTRACT OF PURCHASE AND SALE
THIS AGREEMENT is made and entered into as of this~
day of March,1989,by and between the MIAMI BEACH REDEVELOPMENT
AGENCY,a public agency organized and existing pursuant to the
Community Redevelopment Act of 1969,Chapter 163,Part III,
Florida Statutes (1985,as amended),whose principal place of
business is 1700 Convention Center Drive,Miami Beach,Florida
33139 (hereinafter referred to as the "Seller"),and COBB
PARTNERS DEVELOPMENT,INC.,a Florida corporation,whose
principal place of business is 1575 San Ignacio Avenue,Suite
400,Coral Gables,Florida 33146 (hereinafter referred to as the
"Buyer").
RECITALS
A.The city of Miami Beach (hereinafter "City")is a
Florida municipal corporation with powers and authority conferred
under the Florida Constitution,the Municipal Home Rule Powers
Act,State of Florida legislation and the Miami Beach City
Charter,and has all governmental,corporate and proprietary
powers to enable it to conduct municipal government,perform
municipal functions and render municipal services,including the
authority to adopt,implement and enforce comprehensive plans,
zoning ordinances,redevelopment plans with the consent of Dade
County,Florida,and other police power measures necessary to
assure the health,safety and general welfare of the City and its
inhabitants.
B.The city has adopted and implemented a
Comprehensive Plan for the redevelopment and continuing
de ve lo pment of the City pursuant to Florida Statutes Sections
16 3.31 6 1 et se a .(the "Comprehensive Plan").
C.Th e C it y has created the Miami Beach Redevelopment
Agency pursuant to the provisions of Florida Statutes Sections
163.330 et seq.and the governing charter of Dade County,
Florida.
D.The City adopted a Redevelopment Plan (the
"Redevelopment Plan")on the 15th day of February,1984 for the
sou the r n portion of Miami Beach,which redevelopment area is
defined and bounded as described in Exhibit A attached hereto and
(the "South Shore Redevelopment Area"),
Shore Revitalization Strategy".The
Redevelopment Plan constitutes the redevelopment plan requ ired by
Chapter 163 of the Florida Statutes and has also been approved as
an amendment of the Comprehensive Plan by the State of Florida
and Dade County pursuant to the Local Government Comprehensive
Planning Act,Section 163.3161 et seq.of the Florida Statutes.
E.Buyer by virtue of this Agreement shall be the
contract vendee for the certain property located within the South
Shore Redevelopment Area and more fully described in Exhibit B
attached hereto and incorporated herein (hereinafter sometimes
referred to as the "Property").
F.The Seller hereby obligates itself to institute
action to acqu ire the parcels comprising the Property and to use
its best efforts to assemble the entire Property in Seller's
2
incorporated herein
entitled "The South
ownership without unreasonable delay and not less than sixty (60)
days prior to closing,which action shall include but not be
limited to the issuance and sale of Tax Increment Revenue Bonds
("TIF Bonds")to finance the acqu isition of the Property through
direct negotiations with the current owners and/or by eminent
domain proceedings,and Seller also obligates itself to use its
best efforts to satisfy the prerequ isites for and to issue the
Specific Perform ance Notice referred to in Subparagraph D.(2)(a)
below without unreasonable delay.
G.As a condition precedent to entering into this
Contra c t for Purchase and Sale,the parties on even date herewith
have executed a Development Agreement in order to assure that the
standards and criteria of the Comprehensive Plan and the
Redevelopment Plan are met;in order to promote the best
utilization of the Property consistent with said Plans;in order
to promote flexible and efficient development;in order to allow
the Agency to maximize the development opportunity presented by
Developer in Developer's Concept Plan;in order to define the
rights and obligations of the parties relating to the development
of the Property;and in order to encourage redevelopment in a
timely fashion consistent with the Redevelopment Plan,the term s
and conditions of which Development Agreement are incorporated
herein by reference.
NOW,THEREFORE,in consideration of the foregoing,
which recitals are specifically incorp orated into this contract
of Sale,and in consideration of the mutual covenants herein
3
contained,and for other good and valuable consideration,the
receipt and sufficiency of which are hereby acknowledged by each
of the parties hereto,Seller agrees to sell and Buyer agrees to
purchase the Property,subject to the conditions herein contained
and upon the term s hereinafter set forth.
TERMS OF PURCHASE AND SALE
A.Description of Land
The Property to which this Agreement relates consists
of two blocks of La nd known as Blocks 78 and 80,
located in Ocean Beach Addition No.3 in Miami Beach,
Florida,together with any alleys lying within the
surrounding street rights-of-way and that portion of
Jefferson Avenue south of Second Street and north of
First Street,together form ing one contiguous parcel,
as depicted in Exhibit B hereto.
B.Title;Deed
(1)The Property is to be conveyed by a good and
sufficient Special Warranty Deed running to the Buyer.
Said deed shall convey a good and clear record and
marketable and insurable title to the Property subject
only to:
(a)Provisions of then existing building,zoning,
traffic and other applicable laws,ordinances
and regulations;
(b)Provisions of the Development Agreement
executed by the Buyer and Seller on even date
4
herewith ;
(c )Such taxes,charges or assessments for the
then current calendar year as are not due and
payable on the date of delivery of such deed,
if any ;
(d )All easements,covenants and restrictions or
other matters affecting title to the Property
as may be approved by Buyer prior to closing
as hereinafter provided.
(2 )Bu y er may ,at Buyer's expense,obtain prior to
clo s ing any surv eys of the Property that Buyer or
its le nder deem necessary,certified to Buyer,
Lend er (if requ ired),and the title insurance
compa n y ,showing any improvements,easements,
rig h t s of way ,encroachments onto the Property or
by the buildings or improvements onto land of
oth ers,all utilities entering the Property from
pu b lic rights of way or insurable easements and
all other physical matters affecting access to,
eg r ess from ,or use of the Property .Seller
he reb y grants to Buyer the right to enter upon any
po rtio n of the Property owned by Seller at any
time in order to inspect same,perform soil tests,
au dits,surv eys and any other reasonable studies.
In con nection with its exercise of the foregoing
rig h t of entry,Buyer agrees to indemnify,defend
5
and save harmless the Seller from and in respect
of any loss,demand,damage,injury,claim,cost,
expense,suit or liability whatsoever,and to
restore the Property to its condition prior to
such entry if necessary for public safety.This
indemnity shall survive closing.
(3)Buyer shall order,at Buyer's expense,one or more
cornmi tments for owner's Title Insurance for the
Property from a qualified title insurer (the
"Title Company")in the amount of the purchase
price,showing all special exceptions to coverage,
liens,encumbrances,or other matters affecting
title to the Property,together with copies of any
documents referred to therein.Seller's
obligation to prosecute eminent domain proceedings
shall be contingent upon its receipt from Buyer of
title commitments on the parcels to be condemned.
Buyer shall be presumed to have objected to any
matter shown on the commitments,and must object
to any other title exceptions or conditions of
which it has knowledge and which is curable
through Seller's eminent domain proceeding,in
sufficient time to enable Seller to cure such
objectionable exception or condition through such
proceedings.
Buyer must object to any title exception or
6
condition related to survey or physical inspection
on or before 60 days after being provided with
notice of immediate and unrestricted access to the
entire Property.Notice of adverse matters shown
on any preliminary environmental audit must be
provided within 90 days after Buyer receives
unrestricted access to the entire Property.
Failure of the Buyer to object to such items
within said period shall be deemed acceptance
thereof unless otherwise agreed in writing by the
parties,but Buyer shall not be deemed to have
waived any objection to any circumstance or event
occurring thereafter and prior to closing.
Buyer shall be deemed to object to any adverse
matter indicated by
environmental audit
any preliminary
of the Property,
or
and
final
Buyer
shall attempt to procure such audits without
unreasonable delay,and shall provide copies of
same to Seller within three business days of
receipt.
C.Purchase Price,Time of Performance,Closing Date
(1)The purchase price for the Property shall be Two
Million and Eight Hundred Thousand Dollars
($2,800,000.00)to be paid to Seller by way of bank to
bank wire transfer at closing,plus or minus net
prorations and adjustments hereunder,as follows:
7
(a)Buyer has heretofore paid to Seller a non-
refundable bid deposit in the amount of Ten
Thousand Dollars ($10,000.00)(the "Initial
Deposit"),which amount shall be credited to
the purchase price if and when the
transaction contemplated by this Contract
closes;
(b)Buyer herein shall,within five (5)days of
the execution of this Contract of Purchase
and Sale by all parties,pay to Ticer Title
Insurance Company,as escrow agent ("Escrow
Agent")an additional good faith deposit in
the amount of Fifty Thousand Dollars
($50,000.00),which shall be non-refundable
except in the event of Seller's default (the
"Contract Deposit"),which Contract Deposit
shall be credited toward the purchase price,
or if the transaction contemplated by this
Contract does not close,disbursed as
hereinafter provided;
(c)Within fifteen (15)days of receipt by Buyer
of Seller's Specific Performance Notice,as
provided below,at Buyer's election,Buyer
shall (l)deposit with Escrow Agent the sum
of Fifty Thousand Dollars ($50,000.00)(the
Final Deposit"),or (2)deliver to Seller an
8
unconditional,irrevocable Letter of credit
in favor of Seller in the amount of the Final
Deposit to secure Buyer's performance
hereunder.(The Contract Deposit and Final
Deposit are hereinafter collectively referred
to as the "Additional Deposit".)Any portion
of the Additional Deposit in the form of cash
or its equivalent shall be held by the Escrow
Agent in an interest-bearing money market
account with a federally insured National or
State bank or savings and loan association.
(d)Seller and Buyer hereby designate Ticer Title
Insurance Company as Escrow Agent,to receive
and hold,subject to the provisions of this
Paragraph,the Additional Deposit,including
any interest accruing thereon.Upon receipt
by Escrow Agent of a statement executed by
Seller and Buyer that title has been or is to
be conveyed under this Agreement,Escrow
Agent shall promptly deliver said Additional
Deposit to Seller.Upon receipt by Escrow
Agent of a statement from Seller or Buyer
pertaining to a controversy relating to said
Additional Deposit and/or demanding retention
of said Additional Deposit by Escrow Agent,
then and in that event Escrow Agent shall
9
have the following options:(i)to retain
said Additional Deposit until written
agreement is reached between the parties or
until a final judgment has been entered by a
court of competent jurisdiction and the
appeal period has expired thereon or,if
appealed,after the matter has finally been
concluded;(ii)to place said Additional
Deposit with the Court having jurisdiction
and to notify the parties in accordance with
the notice provisions set forth herein;
(iii)to file an action in the nature of an
interpleader joining the parties hereto and,
thereafter,complying with the ultimate
judgm ent of the Court with regard to the
disposition of the dispute.All reasonable
(e)
costs and fees incurred by Escrow Agent shall
be and constitute the obligation of the
defaulting party.
If the transaction contemplated by
Agreement fails to close because of
this
the
(f)
Buyer's default,Seller shall be entitled to
keep the Initial Deposit and the Contract
Deposit.
Seller shall deposit
increment bond issue
proceeds of
as follows:
its tax
$100,000
10
upon the earlier of five days after the
receipt of bond proceeds by the Agency or May
31,1989,and $100,000 on the first day of
each full month thereafter,until either
$500,000 has been deposited or the Specific
Performance Notice has been given,which
deposits shall be held in an interest-bearing
account with the Escrow Agent,
terms and conditions as
on the same
set forth
hereinabove,as security for its obligations
hereunder.Such deposits,together with all
interest earned thereon,shall be released to
Seller upon its delivery to Buyer of the
Specific Performance Notice described below.
(g)Buyer shall be entitled to a credit at
closing of $61,600.00,calculated as the
imputed land value at $12.32 per square foot
of a library facility to be built on the
Property.
2.The time,date and place for the performance of the
parties are as follows:
(a)The closing shall take place at the office of
Seller,Dade County,Florida or other such
place as the parties may agree.
(b)The time for the closing shall be 10:00 a.m.
or as agreed by the parties;and
11
(c)The date of the closing shall be on such date
as Seller may specify by the giving of the
ninety (90)days written notice to Buyer as
provided for in paragraph 9.D.of the
Development Agreement (which date is
hereinafter referred to as the "Closing Date"
or the "date for delivery of the deed
hereunder"),or such other extended date as
is established by the term s hereof or by the
term s of the Development Agreement.
(d):i:t is agreed that time is of the essence of
this Agreement.
D.Possession and Condition of the Property;Other
Conditions to Buyer's and Seller's Obligations to Close
(1)As conditions precedent to Seller's obligation to
close,the following must occur:
(a)The issuance and sale of the TIF Bonds
requ ired to finance the acqu isition of the
Property through direct negotiations and/or
eminent domain proceedings;
(b)The acqu isition by the Seller of all the
parcels comprising the Property through
direct negotiations and/or eminent domain
proceedings,and the relocation by the Seller
of all occupants of the Property to perm it
delivery of possession of the Property to
12
Buyer,free of all parties in possession and
with all demolition completed as required by
the Development Agreement;
(c)To the extent the Development Agreement sets
forth conditions precedent to the Agency's
obligation to close under this Contract for
Purchase and Sale,said conditions precedent
are incorporated herein by reference as
conditions precedent to Seller's obligation
to close,as if said conditions were fully
set forth herein;
(d)The City having abandoned all city-owned,
underground utility lines,including water,
sewer and storm drain pipes,leaving them in
place since it is understood that it shall
become Buyer's obligation to remove them as
requ ired for Buyer's development of the
Property in accordance with Exhibit J of the
Development Agreement;and
(e)The City having abandoned the streets,
alleys,easements,or rights of way more
particularly described in Exhibit K to the
Development Agreement.
(2)As a condition to Buyer's obligation to close,
full and complete possession of the Property is to be
delivered at the time of delivery of the deed,free of
13
the rights of any contract vendee,of any party in
possession,and free of any claims for liens.Buyer's
obligation to close the purchase transaction
contemplated hereby shall be subject to the following
additional conditions precedent:
(a)That Seller will have delivered to Buyer a
written notice (in compliance with the notice
provisions hereof)that it has issued and
sold the TIF Bonds required to finance the
acquisition of the Property,that the Project
has received final design approval as defined
in Section 5(C)(2)of the Development
Agreement,and that it has obtained a
favorable judicial determ ination of its right
to take the Property (and all applicable
appeal periods have expired)and that this
Contract is therefore specifically
enforceable against the Seller (the "Specific
Perform ance Notice"),and all conditions
subsequent to such Specific Perform ance
Notice shall have been completed or waived;
(b)To the extent the Development Agreement sets
forth conditions precedent to the Developer's
obligation to close under this Contract of
Purchase and Sale,said conditions precedent
are incorporated herein by reference as
14
e
conditions precedent to Buyer's obligation to
close as if said conditions were fully set
forth herein;
(c}Seller will execute and deliver to Buyer at
time of Closing an affidavit setting forth
that there are no unpaid bills or claims
incurred by Seller for labor perform ed and/or
materials furnished to or for the benefit of
the Property for which mechanic's or
materialman's liens can be filed,that no
third parties have contractual or possessory
rights,that there are no unsatisfied
judgments against Seller,and other customary
representations which may be required by the
Title Company;
(d}Seller will execute and deliver to Buyer at
Closing a Special Warranty Deed conveying the
Property to Buyer in accordance with the
terms hereof;and
(e}Seller will have satisfied,at least ten (10}
days prior to closing,all requirements of
Buyer's title commitment pertaining to
Seller's standing and authority,and Seller
shall have provided any corrective
instruments required by said title
comm itment.
15
Extension to Perfect Title or Make Property Conform
If the Seller shall be unable to give marketable and
insurable title,which failure shall be evidenced by
the refusal of the Title Company to issue the policy as
set forth above as of the time of recording of the deed
hereunder,or if Seller is unable to fulfill any other
conditions to Buyer's obligation to close all as herein
stipulated,the Closing Date shall be postponed for a
maximum period of one hundred twenty (120)days and
Seller agrees to use reasonable efforts to remove any
defects in title,to satisfy such conditions as
provided herein,or to make the said Property conform
to the provisions hereof,as the case may be.Any
extension by Seller under this Paragraph shall
automatically extend the subsequent deadlines for
Buyer's performance by the same period.
F.Failure to Perfect Title or Make Property Conform
If by the expiration of the maximum extended time
provided for by the preceding Paragraph E,the Seller
shall have failed so to remove any defects in title or
to satisfy each condition(s)as the case may be,all as
herein agreed to,then,unless the parties have
theretofore agreed in writing to a further extension,
all obligations of all parties hereto shall cease and
this Agreement and the Development Agreement shall be
void and without recourse to the parties hereto,and
16
E.
the Additional Deposit,together with interest earned
thereon,shall be returned to the Buyer,unless Buyer
elects to extend the term of this Agreement for an
additional ninety (90)days,and itself attempt to cure
such defect (in which case,Seller shall fully
cooperate,and all funds reasonably expended by Buyer
in connection with such effort shall be credited to the
purchase price at closing),and/or Buyer may accept
title to the Property as provided in Paragraph G below.
Buyer's Election to Accept Title
The Buyer shall have the election at either the
original or any extended time for perform ance provided
for by Paragraphs E and F to accept such title as the
Seller can deliver to the Property and to waive any
condition and to pay therefor the purchase price as
provided in Paragraph c without further deduction.
H.Acceptance of Deed
The acceptance of a deed by the Buyer shall not be
deemed to waive full perform ance or to discharge any
agreement or obligation herein contained or expressed
which is by the term s hereof to surv ive or be perform ed
after the delivery of said deed or is expressed in
documents or instruments delivered at the closing,
including but not limited to those.contained in the
Development Agreement.
17
G.
I.Adjustments;Closing Costs
(1)Taxes.Ad valorem taxes for the year in which
closing occurs shall be calculated as if the Property
were assessed at 80%of the purchase price.In
addition to the Purchase Price,Buyer agrees to pay to
Seller at closing a sum which would be equivalent to
the prorated portion of the ad valorem taxes so
calculated for the period between the date of Seller's
acquisition of each parcel of the Property and the 31st
day of December of the year in which the closing
occurs,if no taxes are owed for such period because of
Seller's tax-exempt status.
(2)costs.Examination of title,title insurance,
settlement fees,survey costs,notary fees and any
costs related to any Mortgage to Buyer for the
financing of the purchase or construction of the
Project,and all recording charges related to the
conveyancing documents shall be paid by the Buyer.
J.
State revenue stamps,if any,surtax,transfer and/or
recording taxes,shall be paid by Seller.Any other
closing costs shall be allocated in accordance with the
usual and customary practices of the members of the .
Florida Bar in Dade County.
Default.
A default under
deemed to be a
the Development Agreement
default hereunder,and
shall be
a default
18
her eu nd e r shall be deemed to be a default under the
Deve lo pmen t Agreement.
If Bu y e r w ithout cause shall fail or refuse to close
her eu nd e r or if Buyer defaults under the Development
Ag r e em e n t ,the am oun t of dam ag es not being
as c e rtain able ,the Initial Deposit shall be forfeited
an d th e A dditional Deposit shall forthwith be delivered
by the Esc row Agent to the Seller.In the event of
such default by Buyer,Seller shall additionally be
entitle d to the remedies granted the Agency under the
Develop ment Agreement.If Seller shall fail to perform
its obligations hereunder to close in accordance with
the te rm s hereof,Buyer shall have the right to:(1)
ele ct to extend this Contract and the Development
A g r eement for up to one year,during which time Seller
shall u se due diligence to fully perform hereunder or
to cur e such default,which election shall not bar any
ot h e r or fu rther remedy provided herein,(2)elect to
se e k reimbu rsement,within 30 days of demand,of the
co st s an d expenses incurred by Buyer (which amounts
sh all be the direct ,reasonably necessary and
doc ument ed out-of-pocket costs and shall not include
in perform ing
and under the
in direct ov erhead and opportunity costs)
it s obligations under this Contract
Deve lopmen t Agreement,including any
Ad ditiona l Deposit (which amount,if
portion
default
of the
occurs
19
prior to Seller's receipt of its TIF Bond proceeds or
May 31,1989 (whichever is earlier)shall not exceed
One Hundred Thousand Dollars ($100,000.00),and which
amount,if default occurs after Seller's receipt of its
TIF Bond proceeds or May 31,1989 (whichever is
earlier)but before Buyer's receipt of the Seller's
Specific Performance Notice,shall increase by One
Hundred Thousand Dollars ($100,000.00)per month,on
the first day of each month thereafter,to a maximum of
Five Hundred Thousand Dollars ($500,000.00),but such
amount shall not be so limited if Seller's default
occurs after receipt of Seller's Specific Performance
Notice),thereby waiving any rights to further damages
resulting from Seller's breach,(3)accept Seller's
performance hereunder,subject to such defect,
objection,inaccuracy or failure on the part of Seller,
thereby waiving any right to damages resulting from
Seller's breach,or,(4)if Seller's default occurs
after receipt of Seller's Specific Performance Notice,
elect to sue for either (a)specific performance
together with reimbursement of all legal costs and
expenses,or (b)recovery of all documented costs and
expenses incurred by Buyer in performing its
obligations under this Contract and under the
Development Agreement.
20
K.Brokerage Fees or Real Estate Commissions.
Seller represents and warrants to Buyer and Buyer
represents and warrants to Seller that there are no
brokers involved in this transaction.In the event of
a claim for a broker or finder's fee or commission in
connection with the negotiations,execution or
consummation of this Agreement,then Buyer shall
indemnify,save harmless and defend Seller from and
against such claim and any expenses related thereto if
it shall be based upon any statement or representation
or agreement to have been made by Buyer,and Seller
shall indemnify,save harmless and defend Buyer from
and against such claim and any expense related thereto
if it shall be based upon any statement or
representation or agreement alleged to have been made
by Seller.
L.Notices
Any notice required or permitted to be given by either
party under this Agreement shall be deemed given when
deposited for mailing by certified or registered mail,
return receipt requested,with adequate postage affixed
or sent by Federal Express and properly addressed as
follows:
As to Seller Miami Beach Redevelopment Agency
1700 Convention Center Drive
Miami Beach,Florida 33139
Attn:Executive Director
21
Copy to:
As to Buyer
Copy to:
Copy to:
Miami Beach Redevelopment Agency
1700 Convention Center Drive
Miami Beach,Florida 33139
Attn:General Counsel
Cobb Partners Development,Inc.
1575 San Ignacio Avenue
Suite 400
Coral Gables,Florida 33146
Attn:Gary D.Engle
David H.Nevel,Esq.
Nevel &Lowy
407 Lincoln Road,Suite 12D
Miami Beach,Florida 33139
Roland St.Louis,P.A.
1390 s.Dixie Highway,suite 2222
Coral Gables,Florida 33146
M.Construction of Agreement,Effective Date
This Agreement is to be construed according to the laws
of the State of Florida.This Agreement is to take
effect as a sealed instrument,sets forth the entire
contract between the parties,is binding upon and
inures to the benefit of the parties hereto and their
respective successors and assigns,and may be
cancelled,modified or amended only by a written
instrument executed by both Seller and the Buyer.The
captions are used only as a matter of convenience and
are not to be considered a part of this Agreement or to
be used in determining the intent of the parties.
Buyer shall be entitled to assign this Contract one
time only,to Cobb Partners South Beach,Ltd.,a
Florida limited partnership,in which Buyer shall be
the general partner.The exhibits attached hereto are
22
by this reference incorporated herein and made a part
hereof.This Agreement shall take effect on and as of
the date of its execution by both parties,as first set
forth above.Except as specifically provided herein,
no term or provision hereof shall survive the delivery
of the deed and the closing of the transaction
contemplated hereby.
N.Attorneys'Fees
In the event any litigation should arise in connection
with this Agreement,the prevailing party shall be
entitled to collect reasonable attorneys'fees and
costs from the defaulting party to and through all
appellate and supplemental proceedings.
0.Exhibits.
The following listed exhibits are attached to this
Agreement and incorporated herein by reference.
Exhibit A -Redevelopment Area as described in The
South Shore Revitalization strategy
Exhibit B -Subject Property
P.Option.
Buyer shall have the option to purchase Block 53,Ocean
Beach Addition No.3,for a purchase price of
$1,636,000,which option must be exercised by Buyer in
writing by the date which is the earlier of 5 days
after Buyer receives notice of preliminary design
approval or 120 days after the date hereof,but
23
+f '
otherwise using the same procedures as hereinabove set
forth (but specifically excluding any remedy in favor
of Buyer in the nature of recovery of the design and
planning costs incurred prior to its receipt of the
Specific Performance Notice as to said Block 53).If
Buyer exercises such option,Buyer will submit
preliminary design plans for Block 53 at the same time
as for Blocks 78 and 80 (hereinafter,Buyer's
"Supplemental Response to RFP"),and provided the
following conditions precedent have been satisfied,
Seller and Buyer covenant in good faith to enter into a
separate or supplemental development agreement within
90 days,which shall be extended for an additional 60
days if necessary,or otherwise as mutually agreed:
1.The Agency shall have reviewed and reasonably
determined that Buyer's Supplemental Response to RFP is
in substantial compliance with the RFP (as defined in
the Development Agreement)and consistent with the
Developer's Response to RFP and the Develpment
Agreement.
2.The City and the Agency shall have taken formal
action as required by law to authorize the assemblage
of Block 53,including but not limited to authorization
of the use of eminent domain.Upon the Buyer's
exercise of the option,the Agency covenants to use its
best efforts and all reasonable means to fulfill this
24
condition in order to permit a closing within the times
set forth herein.
3.Buyer has a binding construction loan commitment
for the proposed development of Block 53 substantially
in the form of Exhibit F to the Development Agreement.
Buyer shall place an additional deposit with Escrow
Agent in the form of a letter of credit or cash equal
to 5%of the purchase price of Block 53 upon execution
of such supplemental contract and development
agreement,which amount shall be deemed for all
purposes a portion of the Additional Deposit.Such
agreement shall conform with Buyer's Supplemental
Response to RFP,which shall provide for the comparable
development of Block 53 on essentially the same terms
and conditions as set forth in the Development
Agreement (or shall amend the Development Agreement to
include such Block),subject to the same overlay zoning
code as applicable to Blocks 78 and 80 (which shall be
based not only on the project characteristics required
by the RFP,but also on the existing R-PS2 zoning of
Block 53).The Commencement Date for construction on
Block 53 shall be 90 days after the sellout of 75%of
the units
shall post
in Blocks 78 and 80,at which time Buyer
an additional letter of credit of $115,000
to secure its obligation to complete the units on Block
25
53 within 32 months after the Commencement Date (which
ad dit io nal letter of credit shall be in the same form
as the original letter of credit securing the tax
increment).Seller shall have the same option to
repurchase Block 53 if construction is not timely
comm enced as provided in Section 16 of the Development
Agreement.
If Buyer exercises this option after satisfaction of
the conditions precedent,Seller will requ est that the
City of Miami Beach initiate appropriate proceedings to
consider and act upon the vacation of that portion of
Meridian Avenue lying between 1st and 2nd Streets,so
that all property covered by this Contract,including
Block 53,will be one contiguous parcel.Under any
circumstances,if Block 53 is acqu ired by the Seller,
its development will be governed by the zoning overlay
code until the termination of the Development
Agreement.Closing on Block 53 shall be set by Seller
following the same procedures for notice as provided
herein,which shall not be sooner than 12 months,nor
later than 24 months,after the closing on Blocks 78
and 80 (this option shall surv ive closing).
26
yr'
IN WITNESS WHEREOF,Miami Beach Redevelopment Agency as
Seller,and Cobb Partners Development,Inc.as Buyer,have caused
this Contract to be executed and delivered in their names and on
their behalves by their duly authorized representatives as of the
date first above written.
Seller
Signed,sealed and delivered
in the presence of:
MIAMI
By:
Its:
Date:
INC.
Its:President/
a te:3/30/67
Escrow Agent
TICOR
By:
re.As5794£gas>to.
Date:·@2a#a
rsl/031589
FO RM APPROVED
REDEV ELOPMENT AGENCYGENERALCOUNSEL
27
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