Loading...
Acquisition Agreement REI 1293 7\0004\MDSKlGOS. 26A 94060 1 AM> DEVELOPMENT AGREEMENT FOR TIlE PARKING GARAGE PROJECT AT SW CORNER OF COLLINS A VENUE AND 7TH STREET AMONG TIlE CITY OF MIAMI BEACH, . TIlE BALLET VALET PARKING COMPANY, LTD. AND MCCARTHYBROTHERSCO~ANY ')(",1 C,J, Section ARTICLE I ARTICLE II ARTICLE ill ARTICLE IV ARTICLE V ARTICLE VI ARTICLE VII ARTICLE VIII ARTICLE IX ARTICLE X ARTICLE XI ARTICLE XII REl12937\0004\MDSKIG05.26A 940601 TART.E OF CONTENTS 1m DEFINITIONS ................................ 3 SELECTION AND RESPONSffiILITY OF THE DEVELOPER .. 9 ENVIRONMENTAL REPORT AND INDEMNIFICATION ... > 26 CONSTRUCTION COSTS AND DISBURSEMENT PROCEDURES 32 INSURANCE REQUIREMENTS AFTER CONSTRUCTION ... 43 INDEMNIFICATION, LIMITATION OF LIABILITY AND ARBITRATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47 PUBLIC CHARGES .............................50 EVENTS OF DEFAULT AND REMEDIES .............. 52 OPTION TO PURCHASE ......................... 57 RIGHT OF FIRST REFUSAL . . . . . . . . . . . . . . . . . . . . . . . 60 SPECIAL COVENANTS . . . . . . . . . . . . . . . . . . . . . . . . . . 62 MISCELLANEOUS ............................. 75 i (\ c:~:,', EXHIBITS A: Air Space B: Lower Elevation of Air Space C: BV Land D: City Land E: Draw Request F: General Contractor's Agreement G: Narrative and Schedule of GMP DesignlBuild Costs of Garage H: GMP Design Development Drawings and Outline Specifications I: Retail Space Construction Costs J: Schedule of Performance K: Request for Disbursement L: Memorandum of Option M: Memorandum of Right of First Refusal N: Easements 0: Ramp Space Description REI 12937\0004\MDSKlGOS.26A 940601 ii 003 ~~..:. "" ACQUISmON, CONSTRUCTION AND DEVELOPMENT AGREEMENT THIS ACQUISmON, CONSTRUCTION AND DEVELOPMENT AGREEMENT (" Agreement") is made as of , 1994, among CITY OF MIAMI BEACH, a Florida municipal corporation ("City"), THE BALLET VALET PARKING COMPANY, LTD., a Florida limited partnership ("BV"), and MCCARTHY BROTHERS COMPANY, a Missouri corporation ("GC"). W I I N E SSE I B: WHEREAS, capitalized words and terms used herein shall have the meanings set forth in Article I hereof, unless defined elsewhere herein or unless the context or use indicates another or different meaning or intent; and WHEREAS, the City pursuant to Resolution No. 94-21099 has authorized the purchase of the City Land, the Air Space and the Easements (collectively the "City Property") and the execution of one or more agreements in order to accomplish the acquisition of said property, the construction of the Garage, the operation, maintenance and opening of the Garage to the public; and WHEREAS, the GC is a licensed general contractor and is experienced in the construction of parking structures including those which incorporate other use structures such as the Retail Space; and WHEREAS, the GC, as Design Builder and BV as developer have formed a team in order to provide the Retail Space for BV and the Garage, on a turn-key basis, for the City; and REI 12937\0004\MDSKlGOS. 26A 940601 1 ..' ;i,. ~ 004 WHEREAS, BV owns the BV Land and the City Land and has agreed to convey the City Land, the Air Space and the Easements to the City, and the City has agreed to acquire same, pursuant to the terms of the Purchase Agreement and this Agreement; and WHEREAS, BV has agreed to grant certain other rights to the City with respect to the BV Land and the Retail Space; and WHEREAS, a Garage will be constructed within the City Land, the Air Space and Easements and the City shall have a right of first refusal to purchase the BV Land, including the Retail Space; and WHEREAS, BV, the GC and the City are desirous of entering into this Agreement in order to document in writing the respective rights and obligations of the parties hereto with respect to the construction of the Garage and with respect to the construction of the Retail Space to the extent that the construction and operation of the Garage is dependent upon the construction of the Retail Space. The parties hereto recognize the above rights and obligations will be further detailed in the various documents referred to herein. NOW, THEREFORE, in consideration of the covenants herein contained, and for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the City, BV and the GC mutually covenant and agree as follows: ARTICLE I DEFINITIONS 1.1 " Agreement" shall mean this Acquisition, Construction and Development Agreement. REI 12937\0004\MDSKlGOS. 26A 940601 2 0(5 1.2 "Air Space" shall mean all that air space to be acquired in fee simple ownership by the City from BV in accordance with the Purchase Agreement and delineated in Exhibit "A" attached hereto and made a part hereof. 1.3 "Architect" shall mean Desm3ll Parking Associates who is under Contract to GC and their consultants. 1.4 "Authorized Officers" shall mean (a) either the City Manager or an Assistant City Manager of the City of Miami Beach or any designee of the City Manager on behalf of the City, and (b) the President of the General Partner of BV on behalf of BV and the President or any Senior Vice President of the GC on behalf of the GC. 1.5 "BV Land" shall mean the land described on Exhibit "e" attached hereto and by reference made a part hereof. 1.6 "City Financing Proceeds" shall mean the funds to be utilized by the City to acquire the City Land, the Air Space and the Easements and to finance the cost of construction of the Garage and the use and operation thereof which may include the City's funds or the funds derived from any bond or other debt instrument and may include funds acquired by the City from the Gulf Breeze Bond Pool and any replacement, renewal or refinancing of any thereof, all from time to time now or hereafter in effect. 1.7 "City Land" shall mean the land described on Exhibit liD" attached ,hereto and by reference made a part hereof to be acquired in fee simple ownership by the City from BV in accordance with the Purchase Agreement. 1.8 "City Property" shall mean the City Land, the Air Space and the Easements. RE\ 12937\0004\MDSKIGOS.26A 94060 1 3 0(6 1.9 "Completion Date" shall mean the date which is 365 days after the Construction Commencement Date, subject to authorized adjustments as provided herein. 1.10 "Construction Commencement Date" shall mean the date which is no later than 90 days after the date on which the City acquires title to the City Property or when the foundation permit is issued, whichever is later. 1.11 "Construction Plans And Specifications", when used with reference to the construction of the Project, means the plans and specifications caused to be prepared for the construction of the Project by BV and GC, approved by the City and based upon the GMP Design Development Drawings and the Outline Specifications which include the design development drawings and outline specifications for the Garage Space and the Retail Space approved by the City and incorporated herein by reference, as the same may be revised from time to time during the construction period with the written approval of the City and in accordance with the provisions of this Agreement and when used with reference to any modification, repair, restoration or replacement of the Garage, the Retail Space or the Project, as the same may be revised from time to time in accordance with the provisions of this Agreement. There shall be separate Construction Plans and specifications for the Garage and the Retail Space. 1.12 "Consultant" shall mean a consulting architect or engineer acceptable to the City. 1.13 "Design Team" means the GC together with Desman Parking Associates which collectively constitute the general contractor and the architectural firm retained by BV as the team to design and construct the Garage. REI 1293 7\0004\MDSKIGOS.26A 940601 4 007 1.14 "Draw Request" shall mean the written request to the City for disbursement of a portion of the Garage Construction Costs submitted in the form attached hereto and marked Exhibit "E". 1.15 "Easements" shall mean those Easements described on Exhibit "N" attached hereto and made a part hereof. 1.16 "Event(s) of Default" or "Default" means those defaults specified in and defined by Article VI hereof. 1.17 "Exhibits" means the exhibits attached to this Agreement, as same may be revised and modified from time to time with the written consent of the parties, all of which are made a part of this Agreement and are incorporated into this Agreement as though fully set forth in this Agreement. 1.18 "Garage" shall mean the 646 space (including 7 spaces in loading area) 5-story garage to be constructed by the GC and BV for the City pursuant to this Agreement. 1.19 "Garage Construction Costs" shall mean those costs set forth on the Schedule of Construction Costs of the Garage identified on Exhibit "G" attached hereto and any other costs agreed to among the parties. 1.20 "GMP Garage Construction Costs" shall mean the portion of the Garage Construction Costs included within the guaranteed maximum cost to the City of $9,800 per parking space as set forth on Exhibit "G" attached hereto. 1.21 "Garage Construction Plans and Specifications" shall mean the plans and specifications caused to be prepared for the construction of the Garage by BV and GC, approved by the City and based upon the GMP Design Development Drawings and the Outline REl12937\0004\MDSKIGOS.26A 94060 1 5 Ol8 Specifications relating to the Garage, as the same may be revised from time to time during the construction period with the written approval of the City and in accordance with the provisions of this Agreement and when used with reference to any modification, repair, restoration or replacement of the Garage, as the same may be revised from time to time in accordance with the provisions of this Agreement. 1.22 "GC" shall mean MCCARTHY BROTHERS COMPANY. 1.23 "General Contractor's Agreement" shall mean the guaranteed maximum price turnkey contract with the GC and BV to construct the Garage, identified on Exhibit "F" attached hereto, not to exceed the guaranteed maximum price ("GMP") and other limitations set forth in Section 2.1 and further reduced by any reduction or savings in the GMP Garage Construction Costs as set forth in this Agreement. 1.24 "GMP Design Development Drawings and Outline Specifications" means the Outline Specifications dated May 20, 1994, supplementing the Outline Specifications dated March 18, 1994, Drawings Al - A2 dated January 6, 1994, A3, AS - A6, dated March 16, 1994, A4, A7 and A9 dated March 18, 1994, as provided by Desman Associates and Arquitectonica attached as Exhibit nun and the AlA - A191, Part 1 and Part 2 dated February 4, 1994 submitted by GC attached as Exhibit "F". 1.25 "Maintenance Agreement" shall mean the detailed agreement of maintenance responsibility to be entered into between the City and BV as contemplat~ by Section 2.13, and to be recorded in the Public Records of Dade County, Florida within 30 days after closing on the purchase of the City Property. REl12937\0004\MDSKIGOS.26A 940601 6 s:.. ..... OC9 1.26 "Parking Agreement" means the agreement to be entered into between BVand the City within 30 days after closing on the purchase of the City Property relating to the license of parking spaces in the Garage to BV by the City, as same may be modified or revised from time to time. 1.27 "Premises" shall mean the BV Land, the Retail Space, the Air Space, the Garage and the City Land. 1.28 "Project" or "Improvements" shall mean the Garage and the Retail Space. 1.29 "Project Construction Costs" shall mean the sum of the Garage Construction Costs and the Retail Space Construction Costs. 1.30 "Public Charges" shall mean all real and personal property taxes, all ad valorem real property taxes, all taxes on rentals, all service charges, water rents and other public charges which, if not paid, would be a charge, claim or lien upon or against the BV Land, the Air Space or the Easements, or any part thereof, or upon or against any portion of the Garage constructed on the Air Space or the Easements. 1.31 "Purchase Agreement" shall mean the contract, dated as of even date herewith, between BV, as seller, and the City, as buyer, setting forth the terms of the purchase by the City from BV of the City Land, the Air Space and the Easements and, if applicable, the Resnick Air space, for a purchase price of $2,842,544.00 (or an additional $275,000 for a total price of $3,117,544.00 in the event of the City's acquisition of the Resnick Air Space as defined in the Purchase Agreement). The purchase price shall be reduced by $100,000.00, the agreed upon amount of savings as a result of the construction of the Garage creating portions of the Retail REl12937\0004\MDSKlGOS.26A 940601 7 010 Space which would have to be constructed as part of the Retail Space were the Retail Space to be newly constructed without the Garage being built. 1.32 "Resnick Air Space" shall mean the additional Air Space and Easements as defined in the Purchase Agreement with respect to a portion of Lot 1, Block 34 of Ocean Beach First Addition, according to the Plat thereof, recorded in Plat Book 3, Page 11, of the Public Records of Dade County, Florida (the "Resnick Land") and the definition of Air Space and Easements contained in this Agreement shall include the Resnick Air Space and the Easements on the Resnick Land. 1.33 "Resolution" shall mean the Resolution No. 94-21099 of the City dated March 30, 1994, as same may be supplemented and amended, authorizing the City to enter into this Agreement, the Parking Agreement and such other agreements and documents as are incidental thereto and within the scope of the Resolution. 1.34 "Retail Space Construction Costs" shall mean those costs set forth on the Schedule of Construction Costs of the Retail Space identified as Exhibit "I" attached hereto and other costs agreed to among the parties. 1.35 "Schedule of Performance" means the timetable for commencement, completion stages and final completion of the Project set forth in Exhibit "J" attached hereto, subject to authorized adjustments as provided herein. RE\ 1293 7\0004\MDSKIGOS.26A 940601 8 011 ARTICLE n ~Rr .F-CnON AND RR~PONSTRn.TTV OF THE DEVEr ..oPER 2.1 CONSTRUcrrON OF THE GARAGE BY BV AND THE GC. The City has determined that its best interests will be served by having BV as developer together with the full services of the Design Team to serve as the construction, engineering, and design team which shall have the responsibility of constructing the Garage for the City, on a turn-key basis, on the terms and conditions set forth in this Agreement. The City hereby authorizes BV and the GC, and BV and the GC hereby agree, to design, construct, build and erect the Garage on the City Property, and to equip the Garage in accordance with the description of work and equipment contained in the Garage Construction Plans and Specifications, a copy of which shall be on file with an Authorized Officer of the City, BV, the GC and with other members of the Design Team. In furtherance thereof, the GC shall award sub-contracts for the construction of the Garage upon a competitive or negotiated basis as will best facilitate the timely and most economical completion of the Garage and its delivery thereof to the City, complete on a turn-key basis, in accordance with the Garage Construction Plans and Specifications, ready for operation and with all certificates of occupancy and completion having been duly issued by the required governmental authorities. The City may designate standards and requirements for competitive bidding and negotiation and circumstances under which negotiated contracts will be utilized. BV and GC shall deliver copies of all documentation to evidence compliance with such competitive bidding requirements of the City. The total cost to the City for such turn-key completion of the Garage shall not exceed the GMP Garage Construction Costs as set forth in Exhibit "G". Notwithstanding anything to the contrary herein, the total cost of the Garage shall not exceed REI 12937\0004\MDSK1GOS.26A 940601 9 012 ~. ,A $9,800.00, net and on a turn-key basis and as a guaranteed maximum price, times the number of parking spaces in the Garage plus applicable sales tax and the cost of the City's auditor, surveys, testing and reports as provided herein and increases resulting from change orders provided for under the General Contractor's Agreement signed by the parties hereto. The scope of the work included in this guaranteed maximum price is contained on Exhibit "G" attached hereto. In order to achieve savings in the above referenced sales tax, the City and GC shall cooperate to provide the direct purchase by the City of materials to be incorporated into the work. The City will timely issue City Purchase Orders for such materials to GC' s Subcontractors or Suppliers and GC will assist the City in the preparation of such Purchase Orders. The City will directly pay, on a timely basis, the Subcontractor or Supplier upon approval of GC as provided herein. Such amounts directly paid by the City will be accounted for against the GMP Construction Cost, but shall not reduce GC's other payments, including fee for basic services, or obligations under the General Contractor's Agreement. To the extent any such purchases would be determined to be subject to sales tax by any governmental body, court . or agency, City shall be responsible for such tax. Direct purchases by the City shall not limit or relieve the GC of any warranties or guaranties for which it is liable to the City under this Agreement or the General Contractor's Agreement. 2.2 Submission of Desi~n Develo.pment Plans. BV has submitted GMP Design Development Drawings and Outline Specifications for the Garage to the City for its review and approval as used herein. To the extent practicable, GC will obtain competitive quotes for each portion of the work. If any vendor is the sole source for a product or material to be used in the construction of the Garage, the GC must notify the City of such fact in writing and the City REI 12937\0004\MDSJOGOS.26A 940601 10 013 must respond to the GC's notice within 5 days of receipt of such notice or the sole source identified in the notice shall be deemed reasonably acceptable to the City. All such contracts shall be arms length transactions. 2.3 Ap,proval of Desi~ DevelOl'ment Plans by the City. The Design Review Board and any other applicable authority of the City has reviewed and approved the garage Design Development Drawings submitted to it by BV and has determined that same are acceptable to the City prior to execution of this Agreement. 2.4 Submission of Pinal DevelOl'ment Plans (a) Within seven working days after the City has closed on the purchase of the City Property, BV and GC will commence preparation of the Construction Plans and Specifications for the Garage and Retail Space. Not later than 60 days after said closing, BV and GC will submit proposed Garage Construction Plans and Specifications to the City and its Consultant for review and comments. Not later than ninety (90) days after the City closes on the purchase of the City Property, BV and GC shall submit to the City plans in sufficient detail and substance for issuance of a foundation permit for the construction of the Garage and shall apply for and take all necessary steps to obtain the foundation permit. Within 365 days after issuance of a foundation permit, the GC shall construct and complete the Garage in accordance with the requirements as set forth in Section 2.21 hereof. The GC shall perform the work in accordance with the Schedule of Performance and the General Contractor's Agreement. The Construction Plans and Specifications shall conform to and include all of the information set forth in the GMP Design Development Drawings and Outline Specifications, the written recommendations of the City and its Consultant which recommendations shall be consistent with REl12937\0004\MDSKIGOS.26A 940601 11 014 ~~.. ~.. this Agreement, and shall conform to all applicable governmental requirements. If there is any dispute among the parties during the preparation of the Construction Plans and Specifications or upon completion of the Construction Plans and Specifications as to their being satisfactory to the City as to their compliance with the Design Development Drawings and Outline Specifications such dispute shall be resolved by the mutual decision of the GC, BV's engineer and the City's Consultant. If the dispute cannot be resolved in this manner it shall be resolved by arbitration as prescribed by Section 6.3 ("Arbitration"). If construction of the Garage is not completed within the time above required, the Garage Construction Costs required to be paid by the City shall be reduced by $750.00 per day for each day of delay up to the first 60 days and $1,500.00 per day for each day of delay thereafter. (b) All plans, reports and estimates which have been made in connection with the Garage shall become the property of the City, and BV and GC shall deliver, or cause to be delivered, to the City at least 10 sets of all such plans, reports and estimates and, if made, any models of the Garage. (c) It shall be the responsibility of BV, its architect and engineers to design the Project so that the Garage and Retail Space structures properly mesh and that the design of the Retail Space appropriately provides for the support of the Garage and for access to support and all other components necessary to maintain and service the Garage. 2.5 AWroval of Final DevelQpment Plans. Upon receipt of each portion of the Construction Plans and Specifications, the appropriate City agencies shall review the plans for adherence to this Agreement and for adherence to GMP Design Development Drawings and Outline Specifications previously approved by the City. The City shall use its best efforts to REI1293710004\MDSKIGOS.26A 940601 12 015 ::. ....... approve the plans submitted or advise BV and the GC in writing that such plans do not comply herewith as set forth above within 10 days after review of such plans. Any dispute over approval of the plans shall be resolved as set forth above in Section 2.4(a). 2.6 SCQPe of Review by City. The review of plans by the appropriate City departments shall be solely for the purpose of determining that the proposed improvements represented thereby in broad terms of size, design and quality meet the requirements of this Agreement. Notwithstanding that the City may review such plans in detail, the City shall not be responsible in any way for any error or omission therein or failure of such plans to comply with any mechanical, engineering design or structural standards, any building regulation or other governmental requirement, even though the City's building and other departments shall be reviewing and approving the plans and issuing permits with respect thereto. 2.7 Contract for Construction. Ten days prior to the City's closing on the acquisition of the City Property, BV and the GC shall submit to the City for its acceptance the General Contractor's Agreement, in executable form, providing for the construction of the Garage complying in all respects to the requirements of this Agreement together with a full payment and performance bond for the design and the work. The General Contractor's Agreement and bond for construction shall be in such form and contain such provisions as are satisfactory to the City. The General Contractor's Agreement shall contain, among other things: a provision for the appointment of an auditor, which auditor shall be selected by the City and will conduct an audit of the cost of construction of the Garage on an ongoing basis; a provision which entitles the City to 50 % of all savings in the actual audited GMP Garage Construction Costs reducing same below $9,800 per parking space in the Garage; a provision in form and substance satisfactory REI 1293710004\MDSKIG05.26A 940601 13 .:.. ~ 016 to the City which shall declare the City a third-party beneficiary of said General Contractor's Agreement and which shall provide for notice of default by BV or GC under such General Contractor's Agreement to the City and the right of the City, at its option and not as its obligation, to cure such default without penalty to the City subject to Section 8.2.1 hereof. Issuance of the required payment and performance bond and execution by all required parties of the General Contractor's Agreement are conditions precedent to the City's obligation to close on the purchase of the City Property. If the City makes any successful claim under the payment and performance bond resulting in a payment by the surety following a default by the GC under this Agreement or the General Contractor's Agreement, then 100% of all savings in actual Garage Construction Costs shall inure solely to the benefit of the City and shall not be shared with BV. 2.8 Conditions Precedent to Commencement of Construction. As conditions precedent to BV's or the GC's right to commence any portion of the construction, BVand the GC shall, as applicable, have: (a) secured the approval of the City for the portion of the Garage Construction Plans and Specifications relating to that portion of construction as herein provided; (b) submitted evidence satisfactory to the City that BV has funds necessary to construct the Retail Space; (c) all required parties shall have executed the General Contractor's Agreement; (d) the City shall have received and approved the payment and performance bond for the Garage required under this Agreement; REI 1293710004IMDSKIGOS.26A 940601 14 017 (e) conveyed title to the City to the City Property in accordance with the Purchase Agreement; (f) secured all necessary licenses, permits and governmental authorizations in connection with the purposes herein specified; (g) obtained approval of demolition procedures from all applicable governmental authorities including the City's Historic Preservation Board, Design Review Board and the City Commission; and (h) complied with all of the requirements of the Agreement prerequisite to commencement of construction. 2.9 PERMITS AND APPROVALS. Before commencement of any construction or demolition, BV and the GC shall be responsible for obtaining all permits and approvals from any and all governmental authorities necessary for each phase of the work. The Project shall be constructed in compliance with existing laws, ordinances and regulations and as may be amended from time to time, applicable thereto. On or before the Completion Date, BV and the GC shall deliver a completed Garage in accordance with the requirements of the General Contractor's Agreement. The Garage Construction Costs are based upon laws, ordinances and regulations existing as of the date of this Agreement. 2.10 Pro~ress Re,ports. Survey and As-Builts. Upon commencement of construction and until construction of the Garage shall have been completed, the GC shall, in accordance with the Agreement, make monthly reports (which shall be delivered to the City simultaneously with each draw request), in such detail as may reasonably be requested by City, as to the actual progress of the construction. BV, at its sole cost, shall furnish to the City: (i) five (5) sets of REl1293710004\MDSJiO'GOS.26A 94060 1 15 018 a foundation survey of the Garage prepared by a registered surveyor within fifteen (15) days after completion of said foundation showing that the foundation has been poured within the boundaries of the City Property and (ii) five (5) sets of as-built plans of the Garage prior to the final construction disbursement. 2.11 P~ment of Contractors and SUWliers (a) Upon receipt of any required payment, GC shall make, or cause to be made, subject to the appropriate retainage as contemplated by the construction lien law and as required under the Agreement, and the General Contractor's Agreement, prompt payment of all monies due and legally owing to all persons doing any work or furnishing any materials, fuel, machinery or supplies to the GC or any of their contractors or sub-contractors in connection with the construction of the Garage. The GC shall require lien waivers from contractors and sub-contractors in order to comply with the construction lien laws of the State of Florida and as required to obtain and deliver title insurance endorsement(s) insuring over such claims. The City shall withhold from any payments due BV and GC, the retainage as contemplated by the construction lien law and as required under this Agreement and the General Contractor's Agreement. (b) Upon receipt of any required payment, BV shall make, or cause to be made, subject to the appropriate retainage as contemplated by the construction lien law and as required under this Agreement prompt payment of all monies due and legally owing to all persons, including the GC, doing any work or furnishing any materials, fuel, machinery or supplies to BV or any of their contractors or sub-contractors in connection with the Premises and the construction of the Garage. BV shall require lien waivers from contractors and sub-contractors REI 1293710004\MDSKIGOS . 26A 940601 16 019 in order to comply with the construction lien laws of the State of Florida and as required to obtain and deliver title insurance endorsement(s) insuring over such claims. The City shall withhold from any payments due BV, the retainage as contemplated by the construction lien law and as required under this Agreement. 2.12 Construction Liens. If, because of any act or omission of BV or the GC, or any contractor or sub-contractor, any construction lien or other lien for labor, material, fuel, machinery or supplies shall be filed against the Premises, or any building, structure or improvement thereon relating to work for which GC has been paid, BV and the GC shall, within thirty (30) days of filing of such lien, cause the same to be canceled and discharged of record or bonded off. BV and GC shall, within 10 days of receipt of notice of filing, deliver to the City a copy of any lien filed against the Premises. 2.13 Coordination of Maintenance and Re.pairs. The City and BV expressly recognize that in the fulfillment of their respective obligations to maintain and repair the Garage and the Retail Space, certain functions and responsibilities will overlap by virtue of the contiguity of said structures and the support systems of the Garage running through the Retail Space and attaching to the BV Land. Accordingly, it is agreed that a detailed agreement of maintenance responsibility (the "Maintenance Agreement") shall be entered into between the City and BV on or before the execution of this Agreement, delineating the maintenance responsibility of each party with the intent being that the City shall bear the costs of maintaining the Garage, and BV shall bear the costs of maintaining the Retail Space and the Ramp Space, BV and the City sharing equitably those maintenance costs which cannot be clearly identified as to the Garage, the Ramp Space or the Retail Space. The Maintenance Agreement shall provide for the City to REI 1293710004\MDSKlGOS. 26A 94060 1 17 020 make the determination of disputed areas of responsibility, with BV retaining the right to contest such determination and to seek reimbursement from the City for the cost of performing disputed work but only after such repair or maintenance is completed. The existence of a dispute between the City and BV over maintenance or repair responsibility shall not relieve either party of performing the same in accordance with the determination made by the City until and unless changed by Arbitration, court order or agreement of the parties. IfBV fails to contest the City's determination of maintenance responsibility by commencing an Arbitration proceeding within 30 days after the City's determination is made and Bv is advised of the City's determination in writing, then BV shall be deemed to have accepted the City's determination of maintenance responsibility . 2.14 INSURANCE AND INDEMNIFICATION DURING CONSTRUCTION. (A) During the period of construction of the Project and until such time as BV and the GC have issued a final certificate of completion and all requirements have been satisfied under Section 4.8 for the Project and turned over control of the Garage to the City, BVagrees to indemnify and hold harmless the City, its officers, employees and agents, from and against any and all actions, claims, liabilities, losses and expenses, including, but not limited to, reasonable attorneys' fees and court costs at all judicial levels and proceedings, for personal, economic or bodily injury, wrongful death, loss of or damage to property, in law or in equity, to the extent arising or alleged to have arisen from negligent acts or omissions or other wrongful conduct of BV, its tenants, its employees, or agents in connection with performance by BV pursuant to this Agreement and, to that extent, BV shall pay all such claims and losses and shall RE\ 1293710004\MDSKIGOS.26A 94060 1 18 021 pay all such costs and attorneys fees and costs at all judicial levels and proceedings expended by the City in the defense of such claims and losses, including appeals. (B) During the period of construction of the Project and until such time as BV and the GC have issued a final certificate of completion and all requirements have been satisfied under Section 4.8 for the Project and turned over control of the Garage to the City, GC agrees to indemnify and hold harmless the City, its officers, employees and agents, from and against any and all actions, claims, liabilities, losses and expenses, including, but not limited to, reasonable attorneys' fees and court costs at all judicial levels and proceedings, for personal, economic or bodily injury, wrongful death, loss of or damage to property, in law or in equity, to the extent arising or alleged to have arisen from negligent acts or. omissions or other wrongful conduct of the GC, its tenants, its employees, or agents in connection with performance by the GC pursuant to this Agreement and, to that extent, the GC shall pay all such claims and losses and shall pay all such costs and attorneys fees and costs at all judicial levels and proceedings expended by the City in the defense of such claims and losses, including appeals. 2.15 INSURANCE DURING CONSTRUCTION. During construction, BV and the GC shall each maintain or cause to be maintained in full force and effect at all times during the period of construction of and equipping of the Project, with the City named as an additional insured (except with respect to the policy described in (0) below which shall only name the parties required by Florida law) and with 3Q-day notice required to be given to the City, BV and the GC of any reduction, non-renewal, change or cancellation of coverage and otherwise meeting the City's insurance requirements from time to time in effect, including the following: REI 12937\0004\MDSKIGOS.26A 940601 19 . 022 (A) Automobile liability insurance and equivalent policy forms covering all owned, non-owned and hired vehicles used in connection with any work arising out of the Project. Such insurance shall afford protection to at least a combined single limit for bodily injury and property damage liability of $1,000,000 per occurrence; (B) Comprehensive general liability insurance, including contractual liability, or an equivalent policy form providing liability insurance against claims for personal injury or death or property damage occurring on or about the Project. Such insurance shall afford protection to at least a combined single limit for bodily injury and property damage liability of $1,000,000 per occurrence for BV and $10,000,000 per occurrence for the GC; (C) Theft coverage insurance covering employer fidelity, inside or outside loss and burglary with a limit of not less than $250,000 per occurrence by the GC; (0) Worker's Compensation and Employer's Liability Insurance as required by Florida law. 2.15.1 GC shall procure and maintain, with the City, BV, the Architect and all subcontractors and suppliers of any tier named as additional insureds, the following: (a) Flood insurance in an amount satisfactory to the City; (b) Insurance on the Project against" All Risks" of physical loss or damage, including the expense of the removal of debris of such property as a result of damage by an insured peril, written on as broad an "All Risk" form as is commercially available. At the option of the City the aforementioned insurance may be provided in a Completed Value Builder's Risk Policy. Any deductibles, not to exceed $100,000 per occurrence, for wind or water REI 1293 7\0004\MDSKIGOS.26A 940601 20 023 damage included in such insurance shall be the responsibility of the City. All other deductibles shall be the responsibility of BV and the GC. 2.15.2 BV and GC shall require its Architect to maintain, for a period of two years following completion of the Project as evidenced by issuance of a permanent unconditional certificate of completion and/or occupancy, errors and omissions insurance on a claims made basis which shall be for limits of not less than $1,000,000. BV and GC shall require the Architect to indemnify GC, BVand the City to the same extent GC and BV are to indemnify the City as provided herein and shall require the Architect to insure such indemnity under the above errors and omissions insurance. Such insurance shall be the limit of GC' s and BV's liability for design errors and GC and BV shall assign their respective rights against the Architect's errors and omissions insurance to the City. 2.15.3 Prior to issuance of a foundation permit BV and the GC shall obtain all required insurance, the carriers shall be bound and certificates of insurance and original builders risk policy shall be delivered to the City. Such insurance shall remain in full force and effect until completion of the Project and until the Garage is completed as defined herein. All insurance provided for in this Section 2.15 shall be effected under valid and enforceable policies issued by insurers of recognized responsibility, which are licensed to do business in the State of Florida. All such companies must be rated at least "A" as to management and at least Class "VIII" as to financial strength in the latest edition of Best's Insurance Guide. The insurance required by this Section 2.15 may be part of another policy or policies of BV and the GC in which other properties and locations are also covered so long as the amount of insurance REI 1293710004\MDSKIGOS.26A 940601 21 024 o available to pay losses at the Project is at least the minimum required by this Section 2.15 and cannot be reduced in any manner by losses occurring at other properties or locations. As a condition precedent to the City being required to close on the purchase of the City Property or executing any documents related thereto, BV and the GC shall submit certificates evidencing the required insurance policies to the City together with all relevant coverage, policy terms and premium information along with satisfactory evidence of payment of the premiums thereof. 2.16 ACTION TO INSURE COMPLETION OF PROJECT. BVand GC covenant and agree that they will take such action and institute such proceedings as shall be necessary to timely and fully complete their obligations under this Agreement, including, but not limited to, the General Contractor's Agreement and any sub-contracts related thereto, diligently in accordance with the terms thereof, including, without limitation, the correcting of any defective work. BV and GC covenant and agree that they shall take such action as may be necessary or advisable to insure the timely and full performance and completion of the Project in accordance with the Schedule of Performance and the Construction Plans and Specifications and the installation of equipment, if any, in accordance with applicable contracts pertaining thereto, and to insure the performance by BV and GC of all their covenants and obligations under this Agreement and the General Contractor's Agreement. 2.17 COVENANT TO COMPLETE: PAYMENT. PERFORMANCE AND COMPLETION BOND. BV and the GC covenant and agree, jointly and severally, that, in the event the actual cost of constructing the Garage as defined by the Garage Construction Plans and Specifications should exceed the GMP Garage Construction Costs, the Garage shall nevertheless RE\ 1293710004\MDSKIGOS.26A 94060 1 22 025 be promptly completed by them and BV and the GC hereby agree, jointly and severally, to pay from their own funds the cost of such excess. Prior to commencement of construction, the GC shall deliver to City an acceptable Payment, Performance and Completion Bond issued in form and by such surety as approved by the City, for the full cost of the Garage under the General Contractor's Agreement. The City acknowledges that Chubb Insurance Group and AIG are acceptable sureties. 2.18 WARRANTIES EXTEND TO CITY. It is agreed that all vendors' warranties received in connection with all equipment purchased, if any, for the Garage, together with all warranties given by the GC, all sub-contractors, manufacturers or service organizations who perform construction work or install any equipment for the Garage, shall extend to and be written in favor of the City. If requested, BV and the GC shall execute and deliver appropriate instruments required by the City to accomplish the intent of this Section. 2.19 CONSTRUCTION AND DESIGN SCHEDULE. BV and the GC shall commence and complete all design, construction and development within the times specified in the Schedule of Performance attached hereto as Exhibit "J" or within any extension of such times as may be granted by the City in its sole discretion or otherwise as provided for in this Agreement, or in the General Contractor's Agreement. The Schedule of Performance is subject to revision from time to time only if mutually agreed upon in writing among BV, the GC and the City. Within ten (10) days after the City's approval of the Construction Plans and Specifications, BV and the GC shall prepare the Schedule of Performance specifying the dates when the major elements and components of the work to be performed pursuant to the REI 1293710004\MDSIC1GOS.26A 940601 23 Ol6 Construction Plans and Specifications are scheduled for completion, with such dates being consistent with completing the construction on or before the Completion Date. Monthly, during the period of construction, BV and the GC shall submit to the City a report summarizing in detail the progress of construction on the Garage, the status of all necessary governmental approvals required in connection with the construction work, the status and degree of the completion of the construction work, and any anticipated delays under the Schedule of Performance supplied under the preceding paragraph, foreseeable or known to either BV or the GC. Each report shall include a reasonable number of construction photographs taken since the last report submitted by BV and the GC. 2.20 NO ADDmONAL CONSTRUCTION. NO SUBSTITUTIONS OR ALTERNATES IN CONSTRUCTION. Neither BV nor the GC shall construct or permit the construction of any improvements on the Premises other than the Project unless approved in writing, in advance by the City. BV and GC shall not make any substitutions in construction of the Garage without the City's written consent. 2.21 ESTABLISHMENT OF COMPLETION DATE. Upon Completion of the Garage in accordance with this Agreement and the General Contractor's Agreement as defined by paragraph 4.3 of Part 2 thereof, BV and the GC shall furnish to the City a certificate of completion, duly executed by BV and the GC, stating that: (A) the Garage has been completed in accordance with the General Contractor's Agreement, the Construction Plans and Specifications and all labor, services, materials and supplies used in such construction have been fully paid exclusive of retainage; and R.E\1293710004\MDSKIGOS.26A 940601 24 027 (B) a certificate of occupancy and/or completion for the Garage has been issued by all applicable governmental authorities so that the City can occupy and use the Garage for its intended purpose; and (C) all equipment including, without limitation, the parking revenue control system, closed circuit television system, elevators, and other facilities in accordance with the Construction Plans and Specifications in connection with the Garage have been constructed, acquired and installed in accordance with the Construction Plans and Specifications and all costs and expenses incurred in connection therewith have been fully paid exclusive of retainage; and (D) the equipment, if any, so installed is in proper operating order and is suitable and sufficient for the efficient operation of the Garage for the purposes for which it is intended. Notwithstanding the foregoing, such certificate of completion shall state that it is given without prejudice to any rights against third parties which exist at the date of such certificate or which may subsequently come into being. Also, and notwithstanding the foregoing, the establishment of such Completion Date shall not be a waiver of any rights of the City hereunder, including, but not limited to, the right to ascertain to its own satisfaction the accuracy of any matters contained in the certificate of completion furnished by BV and the GC. Prior to the Completion Date, the City shall inspect and accept or reject the work and shall provide a written punchlist to BV and GC. The work shall not be deemed completed until the punchlist work necessary for occupancy and operation of the Garage is completed and accepted by the City in writing. The GC shall complete promptly thereafter any remaining punchlist items. RE\ 1293 710004\MDSKIGOS.26A 94060 1 25 028 ARTICLE m ENVIRONMENTAL "RRPORT AND INDEMNIFICATION 3.1 ENVIRONMENTAL REPORT. As a condition precedent to the City being obligated to close on the purchase of the City Property, BV shall deliver to the City a Phase I environmental audit (the "Environmental Report") addressed to the City, acceptable in form and content to the City and prepared by an environmental engineering and consulting firm acceptable to the City confirming that the BV Land and the City Land are free of "Hazardous Substances" or the scope of any Hazardous Substances within the City Land and the BV Land and any existing improvements thereon and such other reports as are needed for remediation and removal of the Hazardous Substances, if any. The City and BV shall each pay 50% of the cost of the environmental report with the total cost not to exceed $3,000.00. To the extent that the Environmental Report indicates the presence of Hazardous Substances BV shall be obligated, providing the cost does not exceed $50,000.00, to promptly take remediation measures to remove same and provide the City an updated environmental report and DERM closure letter confirming the City Property to be free of Hazardous Substances. If the cost exceeds $50,000.00, the City may elect, at its option, to pay the excess cost required to remove the Hazardous Substances or shall have the right to terminate this Agreement, the Purchase Agreement and the General Contractor's Agreement and be relieved of any further obligations or liability hereunder or thereunder. The term "Hazardous Substances" means and includes, without limitation, any toxic or hazardous substances or materials, petroleum or other pollutants and substances, whether or not naturally occurring, including, without limitation, asbestos, radon, and methane REl1293710004\MDSKIGOS.26A 940601 26 O~9 gas, generated, treated, stored or disposed of, or otherwise deposited in or located on or under the City Property or BV Land, including without limitation, the surface and subsurface waters of the City Property or BV Land. "Hazardous Substances" shall also include any activity undertaken on the City Property or BV Land which would cause (i) the City Property or BV Land to become a hazardous waste treatment, storage, or disposal facility within the meaning of, or otherwise bring the City Property or BV Land within the ambit of, the Resource Conservation and Recovery Act of 1976 ("RCRA "),42 D.S.C. 6901 et seq., or any similar state law or local ordinance, as amended; (ii) a release or threatened release of hazardous waste from the City Property or BV Land within the meaning, or otherwise bring the City Property or BV Land within the ambit of, the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended ("CERCLA "), 42 D.S.C. 9601-9657, the Superfund Amendments and Reauthorization Act of 1986 ("SARA"), or any similar state law or local ordinance or any other environmental law; (ill) the discharge of pollutants or effluent into any water source or system, or the discharge into the air of any emissions, which would require a permit under the Federal Water Pollution Control Act, 33 D.S.C. 1251 et seq., or the Clean Air Act, 42 D.S.C. 7401 et seq., the Toxic Substances Control Act, or any similar state law or local ordinance; or (iv) any substances or conditions in, on, or under the City Land or BV Land which may support a claim or cause of action under RCRA, CERCLA, SARA, or any other federal, state, or local environmental statutes, regulations, ordinances, orders, decrees, or other environmental regulatory requirements relating to health, safety, or the environment (collectively, the "Statutes"), including the presence of any underground storage tanks or underground deposits located on the City Property or BV Land. BV and the GC each REl1293710004\MDSKIGOS.26A 94060 1 27 030 individually assume all obligations of compliance with all environmental requirements and Statutes related to health, safety, or the environment imposed by federal, state, and local authorities that affect the City Property or BV Land and that were caused by their respective actions or the actions of their respective employees, agents or contractors during construction or any business or other activity conducted thereon or therewith by them through the completion of the Project. 3.2 Presence of H~7~Tclous Substances. (A) BV warrants and represents to the City that except as reflected in the initial Environmental Report delivered to the City prepared by Allied Environmental Consultants, Inc. dated April 21, 1994 (the" Allied Environmental Report"), BV has no actual knowledge of (i) the presence of any unlawful Hazardous Substances on the City Property or BV Land, or (ii) any spills, releases, discharges, or disposal of Hazardous Substances that have occurred or are presently occurring on or onto the City Property or BV Land or any adjacent properties, or (iii) any spills or disposal of Hazardous Substances that have occurred or are presently occurring off the City Property or BV Land as a result of any construction or operation and use of the City Property or BV Land. (B) In connection with the construction on or operation and use of the City Property or BV Land, BV represents as to itself, its contractors, subcontractors, and any other of its agents, that, as of the date hereof, except as may be reflected in the Allied Environmental Report, and without having conducted any other investigation, it has no actual knowledge of any failure to comply with all applicable local, state, and federal environmental laws, regulations, RE\ 1293710004\MDSKIGOS.26A 940601 28 031 ordinances, and administrative and judicial orders relating to the generation, recycling, reuse, sale, storage, handling, transport, and disposal of any Hazardous Substances. 3.3 Future Presence of "R~7~Tdous Substances. BV and the GC each agrees to immediately notify the City in writing if either becomes aware of (a) any Hazardous Substances or other environmental problem or liability with respect to the City Property or BV Land, or any adjacent property, or (b) any lien, action, or notice of the nature described in Sections 3.1 and 3.2 above. At their own cost, to the extent liability arises pursuant to the last sentence of Section 3.1 above, BV and the GC shall jointly and severally take all actions which are necessary or desirable to clean up any Hazardous Substances affecting the City Property or BV Land, including removal, containment, or any other remedial action required by applicable governmental or regulatory authorities. 3.4 Indemnification. To the extent liability respectively arises under Section 3.1, BV and the GC hereby each agree, individually, unconditionally, absolutely, and irrevocably, to indemnify, defend, and hold harmless the City, its successors, assigns, and the officials, officers, employees, and agents of the City, against and in respect of: (A) any loss, liability, cost, injury, expense, or damage of any and every kind whatsoever (including without limitation, court costs and reasonable attorneys' fees and expenses) which at any time or from time to time may be suffered or incurred in connection with any inquiry, charge, claim, cause of action, demand, or lien made or arising directly or indirectly or in connection with, with respect to, or as a direct or indirect result of the presence on or under, or the escape, seepage, leakage, spillage, discharge, injection, disposal, emission, or release from, the City Property or BV Land into or upon any land, the atmosphere, or any REI 1293710004\MDSKIGOS.26A 940601 29 032 watercourse, body of water, or wetland, of any Hazardous Substances including, without limitation, any losses, liabilities, damages, injuries, costs, expenses, or claims asserted or arising under the statutes, whether now known or unknown, including without limitation: (1) any costs, fees, or expenses incurred in connection with the removal, encapsulation, or other treatment of Hazardous Substances from or on the City Property or BV Land; (2) any attorneys' fees, engineer's fees, and/or charges of any contractor or expert retained or consulted in connection with any inquiry, claim, or demand, including without limitation any costs incurred in connection with compliance with such inquiry, claim, or demand; (B) any loss, liability, cost, expense, or damage (including without limitation, attorneys' fees) suffered or incurred as a result of or arising out of or in connection with any failure of the City Property or BV Land to comply with all applicable environmental protection laws, ordinances, rules, and regulations relating to health, safety, or the environment, and any litigation, proceeding, or governmental investigation relating to such compliance or non-compliance; and (C) any loss, liability, cost, expense, or damage directly or indirectly arising from any claim, action, demand, cause of action, or damage relating to or in connection with any personal injury concerning or relating to the presence of asbestos or other Hazardous Substances on the City Property or BV Land. 3.5 Survival. (A) The provisions of, and undertakings and indemnification set out in, this Article ill shall survive completion of the Project, satisfaction by BV and GC of all of their REl12937\0004\MDSKJGOS.26A 94060 1 30 033 respective other obligations under this Agreement, but shall not include any liability arising from actions of the City, its officials, officers, agents or employees occurring after completion of the . Garage and its acceptance by the City. (B) This indemnity shall be continuing, irrevocable, and binding on BV and the GC, jointly and severally, and their respective successors and assigns. The obligations of BV and the GC hereunder may not be assigned. 3.6 Indemnification Procedure. (A) BVand the GC, as applicable, shall notify the City in writing promptly upon receipt of any inquiry, notice, claim, charge, cause of action, or demand pertaining to the matters indemnified hereunder, including without limitation any notice of inspection, abatement, or noncompliance, stating the nature and basis of such inquiry or notification. BV and the GC shall promptly deliver to the City any and all documentation or records as the City may request in connection with such notice or inquiry and shall keep the City advised of any subsequent developments. (B) The City shall give written notice to BV and the GC of any claim against the City which might give rise to a claim by the City against BV, the GC or both under this Article ill stating the nature and basis of the claim. (C) If any action shall be brought against the City, then after the City notifies BV and/or the GC thereof as provided in subsection 3.6 (B), then BV and the GC, as applicable, shall be entitled to participate therein, and to assume the defense thereof at the expense of BV and the GC, as applicable, with counsel reasonably satisfactory to the City and to settle and compromise any such claim or action; provided, however, that the City may elect to be REI 1293 710004\MDSKIGOS.26A 940601 31 034 represented by separate counsel, at the City's expense, and if the City so elects, such settlement or compromise shall be effected only with the consent of the City (as evidenced by the approval of the City Commission or of the City Attorney and the City Manager, jointly) which consent shall not be unreasonably withheld. (0) BV and the GC, as applicable, shall make any payment required to be made under this Article ill promptly, and shall make such payment by cashier's check drawn on a bank located in Dade County, Florida in the amount thereof. If such payment is not made forthwith, the City, at its sole election and in its sole discretion, may proceed, at the City's option, to suit against or Arbitration with BV and the GC, as applicable. ARTICLE IV CONSTRUCTION COSTS AND DISBURSEMENT PROCEDIJRF...Ci; 4.1 DISBURSEMENTS. The City agrees that it will, from time to time, and so long as there shall exist no Default, but not more frequently than once a month, disburse portions of the Garage Construction Costs to the GC payable pursuant to the General Contractor's Agreement. Any other Garage Construction Costs shall be disbursed to BV or such other parties as are entitled to receipt thereof. The conditions set forth in this Article IV must be satisfied before the City has any obligations to make the first disbursement, and the conditions set forth in this Article IV must be and remain satisfied before the City has any obligations to make each subsequent disbursement. 4.2 DRAW REOUESTS. At least ten (10) days prior to each disbursement by the City, BV and the GC, jointly, must submit to the City a Draw Request signed by the Design Team, which shall include: REl1293710004IMDSKIGOS.26A 94060 1 32 035 (A) Request for Disbursement: Five duplicate originals of a completed request for disbursement in the form attached hereto as Exhibit "K" (or in such format as is otherwise acceptable to the City) ("Draw Request") setting forth the amount of the Garage Construction Costs requested, together with such certifications and additional information as the City may reasonably require, signed by Anthony Goldman for BV and by either Greg Montgomery or Mickey Morrison for the GC certified to the City in a writing signed by them for the purpose of submitting Draw Requests and certifying to the validity of the Draw Request and compliance with this Agreement. (B) A,pJ>lication for P~ment: If the Draw Request includes an application for payment for amounts to be paid to the GC, originals of AlA Document G702 and AlA Document G703 (or equivalents approved by the City), together with a certification that stored materials are in place both on-site and off-site and secured in a format acceptable to the City. The application for payment shall contain a breakdown by trade or other categories acceptable to the City, completed to the satisfaction of the City and executed by the GC and the Consultant. The application for payment as it relates to the GC shall be reduced by a 10% retainage on the work of all subcontractors of the GC until 50% of the work is completed, at which time no further retainage will be deducted and the balance shall remain unfunded until Completion of the work as defined herein. Upon Completion of the work in accordance with Section 4.8, the retainage shall be paid, subject to continued retainage of 150% of each subcontractor's punchlist amount as reasonably determined by the Consultant, which will be held until final disbursement as defined in Section 4.8. REI 1 293 7\0004\MDSKlGOS.26A 940601 33 036 (C) Invoices: If the Draw Request includes a request for amounts for non-construction items, invoices for such items. (0) Lien Waivers: Notarized construction lien waiver forms executed by the GC and by each appropriate subcontractor, supplier and materialman, which indicate that each of them has been paid in full for all work and materials performed or furnished through the date of the Draw Request as to the GC and through the date of the prior Draw Request as to the subcontractors. (E) Desi~ Team Affidavit: A notarized affidavit executed by BV and the Design Team shall be submitted which certifies that all funds disbursed to date by the City have been paid to the appropriate parties and certifies to the continued compliance of all provisions of this Agreement and the Exhibits hereto. (F) Consultant's Rqx>rt: A written report from the Consultant certifying the satisfactory completion of work through the date of the Draw Request complying with the Plans and Specifications and confirming that the undisbursed portion of the Garage Construction Costs and the undisbursed portion of the Retail Space Construction Costs are adequate to complete and fully pay for the construction of the Garage and Retail Space, respectively, in accordance with the Plans and Specifications. (G) Architect's Rqx>rt: A written report from the Architect certifying the satisfactory completion of work through the date of the Draw Request complying with the Plans and Specifications and confirming that the undisbursed portion of the Garage Construction Costs and the undisbursed portion of the Retail Space Construction Costs are adequate to complete and RE\ 1293 710004\MDSKIGOS.26A 94060 1 34 037 fully pay for the construction of the Garage and Retail Space, respectively, in accordance with the Plans and Specifications. (H) Auditor's Re,port: A written report from the Auditor certifying the accuracy of the amount requested under the Draw Request and making appropriate adjustments to reduce the unpaid balance which the City is obligated to pay for the Garage Construction Costs in the event the Auditor determines any savings have been achieved. Any delay by the Auditor in preparing this report upon submittal of information by GC and BV shall not delay the processing of the Draw Request. 4.3 Disbursement Amounts. Following receipt of a Draw Request and receipt and review of the report of the Consultant and all other items required for a disbursement to be made under this Agreement, the City shall determine the amount of the disbursement it will make in accordance with the Garage Construction Costs, provided no Default exists. 4.4 Requirements. If the City at any time determines, in its reasonable discretion, that the undisbursed portion of the Garage Construction Costs are not sufficient to fully complete the Garage in accordance with the applicable Construction Plans and Specifications, then the City shall have the option of requiring the GC to deposit with the City, within 10 days after written notice from the City, additional funds in amounts sufficient to cover the resulting deficit before the City is obligated to disburse any additional money. Funds deposited by the GC shall be advanced as construction progresses in accordance with this Agreement before any additional disbursements are made from the City's funds. 4.5 Qption to Disburse Funds to Contractors. If a Default exists, or upon notice to the City of non-payment of any obligations related to construction of the Garage by BV or GC RE\ 1293710004\MDSKIGOS.26A 94060 1 35 038 and failure of BV or GC to provide a reasonable explanation for non-payment, at its option, the City may make disbursements directly to any party performing the obligations of BV and the GC hereunder or any unpaid subcontractor, laborer or material supplier providing labor, services or materials in connection with the construction of the Garage and whose claim is set forth in writing and certified to the City. The execution of this Agreement by BV and the GC shall, and hereby does, constitute an irrevocable direction and authorization to the City to so disburse the funds. No further direction or authorization from either BV or the GC shall be necessary to warrant such direct disbursements and all such disbursements shall be deemed disbursed to, or on behalf of BV and the GC as fully as if made to BV or the GC, regardless of the disposition thereof by any subcontractor, laborer or material supplier so paid. 4.6 Conditions to Initial Disbursement: The City shall not be obligated to make the first disbursement until all of the following conditions have been satisfied by proper evidence, execution and/or delivery to the City of the following items, all in form and substance reasonably satisfactory to the City and the City Attorney: (A) Notice of Commencement. The GC shall prepare a Notice of Commencement which shall be properly completed, executed, recorded and posted in accordance with the Florida Construction Lien Law. (B) Insurance. Certificates of Insurance in accordance with the requirements of Article IT hereof shall have been delivered to the City. (C) Plans and Specifications. Ten sets of the applicable Construction Plans and Specifications which must have been approved in writing as provided in Section 2.4(a) hereof REI 12937\0004\MDSKIGOS.26A 94060 1 36 039 by the City, BV, the GC and the Consultant either by initialling same or by other written approval identifying all pages and dates, including revision dates. (D) Permits. A copy, certified by BV and the GC, of all applicable permits including, without limitation, the building permit and any other permits required for construction of the Garage. (E) Construction Documents. Four copies of the General Contractor's Agreement and of all construction contracts and subcontracts in excess of SlO,OOO and a list of all other construction contracts and subcontracts including dollar amounts issued as of that date. (F) Consents of GC. Architect. En~eer. and EQuipment Lessors. Consents from the GC, the Architect who prepared the Construction Plans and Specifications, equipment lessors and all other sub-contractors, to assignments to the City by BV and the GC of their interests in the contract with each of them, respectively, together with assignments thereof to the City executed by said parties enforceable upon notice from the City of a default by BV or the GC under this Agreement or under the General Contractor's Agreement. In addition, the Architect shall agree that the City may use and copy the Construction Plans and Specifications at no cost to the City. In furtherance of the assignment granted herein, BV and the GC shall cause all contract parties including, without limitation, equipment lessors, to acknowledge this assignment to the City and agree to continue such lease or contract on the same terms as presently exist if the City shall succeed to the interest of the GC thereunder and if so requested by the City. REl1293710004IMDSKIGOS.26A 94060 1 37 040 (G) ~. A payment, performance and completion bond in the amount of the General Contractor's Agreement naming the City as an obligee and issued in such form and by a surety acceptable to the City in its discretion. (H) Transfer of City PrQperty. The City shall have closed on the purchase of the City Property. (I) Title Endorsement. The City, at its expense, shall have received an endorsement to the title policy insuring the City with respect to the City Property. (1) No Defaults. Except as provided under the terms of Section 8.2.1, no Default shall exist under this Agreement, the General Contractor's Agreement, the Purchase Agreement or any related documents. (K) Other Documents. Such other documents as are required by this Agreement or reasonably required by the City. 4.7 Periodic Disbursements. City shall not be obligated to make any disbursements after the first disbursement until all of the following conditions have been satisfied and remain satisfied as of the date of each such disbursement: (A) All of the conditions set forth in Article IV hereof, including, without limitation, submission of a Draw Request. (B) A request for payment signed by BV and the GC and setting forth a detailed breakdown of the disbursement requested, including, without limitation, the requisition of the GC, together with copies of invoices and other documentation to substantiate any requests by BV and the GC for payment of Garage-related "soft costs" approved by the City and which are a part of the Garage Construction Costs. RE\ 1293710004\MDSKIGOS.26A 94060 1 38 041 (C) BV, the GC, the Design Team and the Consultant shall certify that construction of the Garage for which such Draw Request has been made has been performed substantially in accordance with the applicable Construction Plans and Specifications, the Garage Construction Costs, and all terms and conditions of this Agreement and the General Contractor's Agreement. (D) The title policy insurer shall have issued to the City at City's expense an owner's title insurance policy and an endorsement to the title policy updating the effective date of the title policy, listing any additional subordinate matters and certifying that no lien or other interest shall have attached to the Project, except taxes for the current year, not yet due and payable and other matters acceptable to the City. (E) If any of the foundations have been completed, a satisfactory foundation survey shall have been submitted to the City consistent with the requirements of Section 4.7 hereunder. (F) The City shall have received all required approvals to the Draw Request including approvals and certificates from the Consultant, BV and from BV's architect and engineer. (G) The City and the title insurer shall have received copies of all notarized partial release lien waiver forms executed by each appropriate subcontractor, supplier and/or materialman for disbursement made under the preceding Draw Request or any portions of the current Draw Request shown to have been paid. REl1293710004\MDSKIGOS.26A 94060 1 39 '-\4.0" "J. '.v (H) An Affidavit from BV and the GC, certifying that the funds disbursed to date to either of them by the City have been paid by them, respectively, to the appropriate parties. (I) A soils report as to the compaction and other soils test on the BV Land and the City Land by a soil testing firm satisfactory to the City, at such times and in such locations as recommended by such firm. BV and the GC shall promptly submit to the City copies of all such reports, together with any other physical tests made on the City Land and BV Land, the Project, or the materials to be incorporated into the Project. Additional testing requested by the City shall be at the City's expense. (1) BV and the GC shall have satisfied (i) all conditions precedent to the first disbursement as set forth in Article IV above, and (ii) all conditions precedent set forth elsewhere in this Agreement. (K) No litigation, Arbitration or other proceeding shall have been commenced against the GC, which, in the City Attorney's or City Manager's reasonable judgment, materially impairs or is likely to materially impair the GC's ability to complete the Garage. (L) As and when requested by City, at City's expense, a recertification of the Survey reflecting all changes in the physical conditions of the City Property, the BV Land and the Project subsequent to the date of the last certification of the Survey. Each such recertification shall show all construction and development work in place. (M) There shall not have been any destruction or casualty to the Project that is not anticipated to be covered by insurance. To the extent that there is any destruction or REI 1293710004\MDSKIGOS.26A 940601 40 043 casualty whether or not covered by insurance, BV and the GC shall notify the City of same in writing. (N) No Default shall exist by BV or the GC under this Agreement or under the General Contractor's Agreement and no event shall have occurred which, but for the giving of notice or passage of time, would constitute such a default under this Agreement or the General Contractor's Agreement, subject to the provisions of Section 8.2.1 of this Agreement. 4.8 Requirements for Final Disbursement. The City shall not be obligated to make the final construction disbursement until all of the following additional conditions have been satisfied: (A) The Garage has been Completed in accordance with the requirements of the General Contractor's Agreement and in accordance with the Construction Plans and Specifications, and certificates as to such completion have been issued in form reasonably satisfactory to the City by the Consultant and the GC, including, without limitation, Architect's Certificate of Completion together with AIA G704 Certificate of Substantial Completion, Contractor's Certificate of Completion together with the AlA G704 Certificate of Substantial Completion and, if applicable, an Engineer's Certificate of Completion. The Completion Date shall be subject to extensions as provided in Paragraph 4.5 of Part 2 of the General Contractor's Agreement. (B) City has received five (5) copies of an "as-built" survey, which shall be paid for by the City, prepared by a registered surveyor showing that the Garage is in place within the boundaries of the City Property, including striping of parking areas and a statement as to the number of parking spaces available. REI 1293710004\MDSKIGOS.26A 94060 1 41 044 (C) City has received five (5) sets of detailed as-built plans and specifications of the Garage, which shall be paid for by the GC approved and certified as such in writing by BV, the GC, and the Consultant. Each set must include plans and specifications for architectural, structural, mechanical, plumbing, electrical and site development (including without limitation, storm drainage, utility lines and landscaping) work. (D) City has received a contractor's final affidavit from the GC and final lien waivers and releases from the GC and all subcontractors, suppliers, laborers, and materialmen certifying that they and all parties in privity with them have been paid in full except for the retainage and, except therefor, waiving their lien rights against the Garage. (E) City has received an inspection report performed by the Consultant in substance satisfactory to the City which certifies, among other things, that the Garage is completed in accordance with the Construction Plans and Specifications and in compliance with this Agreement and Consultant's written approval of the final Draw Request. (F) A certificate of occupancy and/or completion for the Garage has been issued by all applicable governmental authorities. (G) Provided that the GC furnishes the items required under this Section 4.8, the City's auditor, within 10 days after Completion, has reviewed and certified the actual cost of the Garage allocated to the GMP Garage Construction Costs and as may be amended from time to time, if permitted, by this Agreement and the General Contractor's Agreement and, if below $9,800 per parking space, then all adjustments shall have been made such that the final payment will result in the City having received the benefit of 50% of the cost savings. If a cost savings resulting from such audit or otherwise is agreed upon by the parties, the retainage may REl12937\0004\MDSKIGOS.26A 940601 42 045 be applied to reimburse the City and, if the retainage is insufficient, BV and GC shall pay any excess to the City within 10 days of written request by the City. If there is an undisbursed balance under the General Contractor's Agreement representing cost savings, the City shall pay 50% of the remaining cost savings to the GC. ARTICLE V INSURANCE REOUIREMENTS AFTER CONSTRUCTION 5.1 PROPERTY COVERAGE AFfER CONSTRUCTION PERIOD. Upon completion of construction, BV and any subsequent owner of the BV Land and the Retail Space shall, at its expense, keep the Retail Space insured against loss or damage as a result of fire, windstorm, flood and those other hazards ordinarily insured against from time to time during the term hereof in the City of Miami Beach, Florida in policies providing for "All Risk Coverage" for physical damage or loss, through insurers of recognized responsibility authorized to do business in Florida. Such insurance shall be in an amount sufficient to prevent the owner from being a co-insurer and shall be based on not less than ninety percent (90%) of the replacement value of said buildings, property and equipment. To the extent that insurance proceeds are available, the owner shall be obligated to repair any damage or destruction to the Ret.ail Space at the earliest possible moment. Each insurance policy shall name the City as an additional insured, as its interest may appear, and for loss to be payable to the City and the owner. 5.2 COMPREHENSIVE GENERAL PUBLIC LIABILITY COVERAGE AFfER CONSTRUCTION PERIOD. After the construction of the Retail Space has been completed, BV shall secure and maintain, or cause to be secured and maintained, in full force and effect REl1293710004\MDSKIGOS.26A 94060 1 43 046 comprehensive general public liability insurance as will protect the owner of the Retail Space and the City, their agents and employees, from any and all claims for damages for personal injury or death, or for damage to any property of the City or the public which may arise out of BV's ownership and operation of the Retail Space. The amounts of such insurance shall not be less than a combined single limit of $1,000,000.00, personal injury, injury to persons or death or for property damage. Each policy shall name the City as an additional insured and each policy shall contain cross-liability endorsements. 5.3 WORKER'S COMPENSATION COVERAGE. BV shall secure and maintain, in full force and effect, such Worker's Compensation coverage as is required under the laws of the State of Florida. 5.4 LIMITED RF.LEASE OF LIABILITY AND WANER OF SUBROGATION. The City and BV release each other, and their respective authorized representatives, from any claims for damage to any person or to the Premises that are caused by or result from risks insured against under any insurance policies carried by the City or BV with respect to the Garage and the Retail Space, respectively, and in force at the time of any such damage. The City and BV shall, cause each insurance policy obtained by either to provide that the insurance company waives all right of recovery by way of subrogation against any insured party in connection with any damage covered by any policy. If the release of the City or BV as set forth in the first sentence of this subsection shall contravene any law with respect to exculpatory agreements, the liability of the party in question shall be deemed not released but shall be secondary to the other's insurers. RE\ 1293710004\MDSKIGOS.26A 94060 1 44 04~; 5.5 NON-CANCELLATION CLAUSE. All insurance policies or agreements shall provide that they cannot be canceled or terminated until at least thirty (30) days prior notice has been given to the City or to BV, as applicable, to the effect that such insurance policies or agreements are to be canceled or terminated at a particular time. 5. 6 CERTIFICATES OF INSURANCE. BV and the City shall provide each other with such certificates of insurance or other acceptable proof of compliance with the insurance provisions of this Article V. 5.7 RIGHT OF CITY TO OBTAIN INSURANCE. In the event that either the City or BV, at any time refuses, neglects or fails to secure and maintain in full force and effect any or all of the insurance required pursuant to this Agreement, the City and BV, as applicable, at their option, may procure or renew such insurance and all amounts of money paid therefor shall be payable forthwith by the party that was obligated to purchase such insurance with interest thereon at the legal rate per annum from the date the same were paid to the date of payment thereof by the obligated party. The City or BV, as applicable, shall notify the other party in writing of the date, purposes and amounts of any such payments made by it. 5.8 MUTUALITY OF INSURANCE OBLIGATION. Except to the extent that the City is permitted to be a self-insurer, all insurance obligations of the City hereunder as they relate to its procurement of insurance on the Garage shall equally apply to BV in its procurement of insurance for the Retail Space, including, without limitation, the naming of the City as an additional insured. 5.9 REASONABLE DEDUCTIBLE. All types of insurance required by this Article V may contain a reasonable deductible provision provided the party to be named as REI 1293710004\MDSKIGOS.26A 940601 45 048 additional insured is given ten (10) days advance notice of said deductible provision and approves the same in writing. 5.10 INSURANCE CARRTF.RS: MANDATORY COVERAGE. The City and BV shall cause property, comprehensive general liability and comprehensive automobile liability coverage to be procured and with respect to the property coverage to carry the same on the basis of full insurable value based upon replacement cost from time to time as projected by such insurance carrier or carriers. Maintenance of insurance by BV is obligatory, and BV shall not be permitted to be a self-insurer, except with regard to reasonable deductible amount applicable to the Retail Space. The City shall be permitted to be a self-insurer. 5.11 FIRE OR OTHER CASUALTY AFI'ER CONSTRUCTION. (A) Any Loss or Damaee. If there is any loss or damage by fire or other casualty to the Retail Space, BV covenants and agrees to diligently commence and promptly complete the reconstruction or repair of such loss or damage, to the extent necessary to protect and preserve the Easements and permit the reconstruction and repair of any damage or destruction to the Garage. (B) Insurance Proceeds. Whenever the Retail Space, or any part thereof, shall have been damaged or destroyed, BV shall promptly make proof of loss and shall proceed to collect, or cause to be collected, all valid claims which may have arisen against insurers or others based upon such damage or destruction. The proceeds of any such claim and any other monies provided for construction, restoration, or repair of the Retail Space shall be utilized for payment of reconstruction of the Retail Space to the extent required in Section 5. 11 (A) above. In the event that the Retail Space is destroyed or damaged, in whole or in part, BV shall REl1293710004\MDSIOGOS.26A 940601 46 ~'49 t. promptly give the City written notice of such damage or destruction, stating the date on which such damage or destruction occurred. ARTICLE VI lNDE"MNIFICATION. LIMITATION OF I~I.4.'Rn.1TV AND ARBITRATION 6.1 INDEMNIFICATION. (A) Subsequent to the Completion Date, BV agrees to indemnify and hold harmless the City and its officers, employees and agents, from and against any and all actions, claims, liabilities, losses, and expenses, including, but not limited to, reasonable attorneys' fees and costs at all judicial levels and proceedings, for personal, economic or bodily injury, wrongful death, loss of or damage to property, in law or in equity, to the extent arising or alleged to have arisen from the negligent acts or omissions or other wrongful conduct of BV, its tenants, its employees, or agents in connection with performance by BV pursuant to this Agreement and, to that extent, BV shall pay all such claims and losses and shall pay all such costs and judgments which may issue from any lawsuit arising from such claims and losses, and shall pay all costs and attorneys fees and costs at all judicial levels and proceedings expended by the City in the defense of such claims and losses, including appeals. (B) Subsequent to the Completion Date, the GC agrees to indemnify and hold harmless the City and its officers, employees and agents, from and against any and all actions, claims, liabilities, losses, and expenses, including, but not limited to, reasonable attorneys' fees and costs at all judicial levels and proceedings, for personal, economic or bodily injury, wrongful death, loss of or damage to property, in law or in equity, to the extent arising or alleged to have arisen from the negligent acts or omissions or other wrongful conduct of the GC, REl1293710004\MDSKIGOS.26A 940601 47 050 its employees, or agents in connection with performance by the GC pursuant to this Agreement and, to that extent, the GC shall pay all such claims and losses and shall pay all such costs and judgments which may issue from any lawsuit arising from such claims and losses, and shall pay all costs and reasonable attorneys fees and costs at all judicial levels and proceedings expended by the City in the defense of such claims and losses, including appeals. The parties each agree to give the other party written notice within three (3) days of any claim coming to its knowledge that in any way directly or indirect affects the other party. 6.2 LIMITATION OF CITY'S LIABILITY The City agrees to enter into this Agreement only if in so doing the City can place a limit on the City's liability for any cause of action for money damages due to an alleged breach by the City of this Agreement, so that its liability for any such breach never exceeds the sum of One Hundred Thousand Dollars ($100,000). BV and the GC hereby express their willingness to enter into this Agreement with their combined recovery from the City for any damage action for breach of contract to be limited to a maximum amount of $100,000. Allowable damages ("Allowable Damages") shall be limited to actual, out of pocket cash damages and shall exclude all other damages, including, but not limited to punitive, consequential and future damages. Accordingly, and notwithstanding any other term or condition of this Agreement, BV and the GC hereby agree that the City shall not be liable to, or on behalf of them for any damages except Allowable Damages and in an amount not to exceed $100,000, in the aggregate, for any action or claim arising out of the performance or non-performance of any obligations imposed upon the City by this Agreement except that the City does not waive liability for its REI1293710004\MDSDGOS.26A 940601 48 051 obligations to make payments for the construction of the Garage under the terms and conditions contained in the General Contractor's Agreement and in this Agreement. Further notwithstanding anything to the contrary contained in this Section 6.2, the City does not waive its liability for actual damages, excluding from this waiver, however, any liability for punitive or consequential damages, which BV may incur in the event that the City willfully and in bad faith terminates the Parking Agreement in order to obtain higher revenues from users of parking spaces in the Garage other than BV. Nothing contained in this paragraph or elsewhere in this Agreement is in any way intended to be a waiver of the limitation placed upon City's liability as set forth in 1768.28, PIa.Stat. 6.3 ARBITRATION At the option of the City, any controversy or claim for money damages arising out of or relating to this Agreement, or the breach hereof, shall be settled by Arbitration in accordance with the Commercial Arbitration Rules of the American Arbitration Association, and the Arbitration award shall be final and binding upon the parties hereto and subject to no appeal, and shall deal with the question of the costs of Arbitration and all matters related thereto. In that regard, the parties shall mutually select one arbitrator, but to the extent the parties cannot agree upon the arbitrator, then the American Arbitration Association shall appoint one. Judgment upon the award rendered may be entered into any court having jurisdiction, or application may be made to such court for an order of enforcement. Any controversy or claim other than a controversy or claim for money damages arising out of or relating to this Agreement, or the breach hereof, including any controversy or claim relating to the right to specific performance shall be settled by litigation and not Arbitration. REI 12937\0004\MDSKIGOS.26A 940601 49 052 ARTICLE vn PUBUCCHARGES 7.1 Covenant for Payment of Public Cha(~es. BV covenants and agrees to pay and discharge, before any fine, penalty, interest or cost may be added, all taxes, service charges, water rents, and other public charges (hereinafter called "Public Charges") which, if not paid, would be a charge, claim or lien upon or against the BV Land, or any part thereof. BV shall not take any action which would result in any charge, claim or lien upon or against the City Property including any portion of the Garage. Notwithstanding the provisions of the preceding sentence, BV shall have the right to pay Public Charges in installments if permitted by law, and to contest the amount or validity, in whole or in part, of any Public Charges by appropriate proceedings, provided, however, that BV shall prosecute such proceedings with reasonable diligence, and either pay all disputed Public Charges or escrow an appropriate sum as reasonably required by the City or the taxing authority for the full payment of such Public Charges being contested after completion of such proceedings. In the event that the City pays any of the Public Charges after 10 days written notice to BV and BV's failure to pay same, as provided in this Section 7.1, the City shall have a lien on the BV Land and the improvements thereon and may evidence such lien by a notarized statement executed by any authorized City official which the City, at its option, may record in the Public Records of Dade County, Florida, confirming the date of payment by the City of the Public Charges, a description of the type of Public Charges paid by the City, and the amount of the Public Charges. If, within 30 days after filing of the notarized statement and written notice to BV of its filing, BV does not reimburse the City for payment of the Public Charges together with interest thereon at the highest lawful rate from date RE\ 12937\0004\MDSKIGOS.26A 94060 1 50 053 of payment thereof by the City, the City shall have the right to declare a Default by BV under this Agreement and a violation of the covenant of BV to pay Public Charges contained herein and in the Easements, in addition to all other remedies for a Default by BV, to foreclose the lien and sell the BV Land, as improved, to recover the amount paid to satisfy the Public Charges, plus interest at the highest lawful rate and reasonable attorneys' fees, costs and expenses incurred in enforcing its rights hereunder. The City, its assignee or designee may be purchaser of the BV Land at said sale and may bid the amount of its lien and any judgment it holds in lieu of cash. The City's lien rights hereunder shall be a covenant running with the land and contained in the instrument to be recorded against the BV Land containing the Easements. 7.2 Evidence of ~ment of Public Charees. BV shall, upon request by the City, furnish or cause to be furnished, to the City, prior to delinquency, official receipts of the appropriate taxing authorities or other proof satisfactory to the City, evidencing the payment of any Public Charges which were due and payable on the BV Land and shall furnish same at any time within ten (10) days after the date of any request by the City. 7.3 The City and BV shall cooperate to effect a separate ad valorem tax assessment and tax folio number for each of the BV Land, City Land and Air Space to enable the City Land and Air Space to be exempt from ad valorem taxes. REl1293710004\MDSKIGOS.26A 94060 1 51 054 ARTICLE vm EVENTS OF DEFAULT AND llFMlmTR'i; 8.1 EVENTS OF DEFAULT BY BV OR GC. The following shall be "Event(s) of Default" under this Agreement and the terms "Event of Default" or "Default" shall mean, whenever they are used in this Agreement, anyone or more of the following events: (A) Failure on the part of BV or the GC, respectively, to pay any of their contractors or suppliers on the Project on the date that payment is due in accordance with the contracts or agreements with said parties or in accordance with the terms of this Agreement or the General Contractor's Agreement. (B) Failure on the part of BV or the GC, respectively, to payor cause to be paid the insurance premiums, charges or taxes with respect to the Project which they are respectively required to pay for a period of ten (10) days after written notice specifying such failure and requesting tr"t it be remedied shall have been given to either of them by the City. For purposes of this Section taxes shall be deemed "due" upon any first date the same shall be payable without penalty or interest. (C) Failure on the part of BV or GC to make any payment required to be made by them, respectively, to City or any third party as applicable to them individually pursuant to this Agreement or the General Contractor's Agreement. (0) Failure on the part of BV or the GC as applicable to observe and perform any other covenant, condition or agreement which they have herein agreed to observe or perform, for a period of ten (10) days after written notice specifying such failure and requesting that it be remedied shall have been given by the City to BV or the GC, or both, as applicable. REl12937\0004\MDSICJGOS.26A 940601 52 055 However, such a default shall be deemed to be cured, ifpromptly and in good faith upon receipt of such notice BV and the GC, or either of them, as applicable, proceed diligently to correct such default and corrects it as soon as reasonably possible but not later than forty five (45) days thereafter. If such failure by BV or the GC, as applicable, to observe and perform any such covenant, condition or agreement (other than a failure described in (A), (B) or (C) above) shall result from a Force Majeure (as defined below), then they shall not be deemed to be in default during the continuance of such inability during such Force Majeure. The term "Force Majeure" shall mean an Act of God, an act of a public enemy, a strike or lockout or other industrial disturbance, insurrection, riot, epidemic, drought, civil or military restraints, or a failure of utilities, or other event beyond BV's or the GC' s control which results in a delay of performance and as to which written notice of the Force Majeure was delivered to the City within 2 working days after its occurrence. (The settlement of strikes, lockouts and other industrial disturbances shall not be deemed to be entirely within the discretion of BV or the GC, and BV and the GC shall be deemed to be in default within the meaning of this paragraph if they shall refuse to make settlement of strikes, lockouts and other industrial disturbances by acceding to the demands of the opposing party or parties when such course is unreasonable in the reasonable judgment of the City.) (E) Either BV or the GC shall file a petition In bankruptcy or for an arrangement pursuant to any present or future federal bankruptcy act or under any similar federal or state law, and shall be adjudicated a bankrupt or insolvent or shall make an assignment for the benefit of its creditors or shall admit in writing its inability to pay its debts generally as they become due, or if a petition or answer proposing the adjudication of either BV or the GC as a REI 1293710004\MDSKIGOS.26A 940601 53 056 bankrupt under any present or future federal bankruptcy act or any similar or state law shall be filed in any court and such petition or answer shall not be discharged or denied within sixty (60) days after the filing thereof, or a receiver, trustee or liquidator of either BV or the GC or of all or any portion of the Project shall be appointed in any proceeding brought against BV or the GC and shall not be discharged within sixty (60) days after such appointment or if the estate or interest of BV in the Retail Space or the BV Land or any part thereof shall be levied upon or attached in any proceedings and such process shall not be vacated or discharged within sixty (60) days after such levy or attachment, or either BV or the GC shall liquidate. (F) The occurrence of a Default by BV under the Purchase Agreement or the occurrence by BV or the GC, respectively, of a Default under any other document or agreement executed by either of them in connection with the Project. 8.2 RF.MRDTR~ ON DEFAULT BY BV OR GC. Whenever any Event of Default referred to in Section 8.1 hereof shall have occurred and be continuing, the City may, subject to the provisions of Section 8.2.1 below, take anyone or more of the following remedial steps: (A) Prom time to time take whatever action at law or in equity which may appear necessary or desirable to recover damages, enforce performance and observance of any obligation, agreement or covenant of either BV or the GC, or both, as applicable, under this Agreement, the Purchase Agreement or any other documents related thereto. (B) Complete the construction of the Garage by any reasonable means available, including, but not limited to, completing construction of the Garage by dealing directly with and making payments directly to any of the contractors or material suppliers of BV and the GC, contracting with other contractors and material suppliers selected by the City in its sole RE\ 12937\0004\MDSIC1GO.5.26A 940601 54 t)5~; discretion or such other measures as the City determines are necessary for it to complete the Garage. All costs and expenses incurred by the City in the event of a Default shall be included in the measure of damages sustained by the City in such event. (C) Termination of Parking Agreement, if the Garage is not constructed. (0) Set off current and future obligations of the City under the Purchase Agreement, this Agreement, the General Contractor's Agreement or any other document or agreement in connection with the Project. 8.2.1 So long as City and the GC agree that BV is in default and that neither the City nor the GC has sent a notice of default to the other that has not been cured, City and the GC shall proceed to perform under this Agreement and the General Contractor's Agreement notwithstanding an alleged default by BV or any event which but for the giving of notice or passage of time would constitute a default by BV, including the failure to execute or deliver any Draw Requests or other documents, then the City and GC shall proceed under this Agreement and General Contractor's Agreement without BV. 8.3 EVENTS OF DEFAULT BY CITY. The City shall be in default under this Agreement if it shall fail to pay any sums required of it hereunder or to perform any other covenant, condition or agreement which it may have agreed to perform, after expiration of any permitted grace or curative period and receipt of any required notice to which it may be entitled, but in no event without receipt of at least ten (10) days prior written notice specifying the default. If the default is other than a monetary default it shall be deemed cured if the City promptly and in good faith commences to correct such default upon receipt of such notice. In no event shall the City's liability exceed the limitations set forth in Section 6.2 hereof. REI 12937\0004\MDSIO'GOS.26A 94060 1 55 058 8.4 NO REMF:ny EXCLUSIVE. No remedy conferred upon or reserved to any party hereto, or existing at law or in equity, shall be exclusive of any other available remedy or remedies, but each and every such remedy shall be cumulative and shall be in addition to every other remedy given under this Agreement, the Purchase Agreement, the General Contractor's Agreement, the Parking Agreement or any other documents related thereto or now or hereafter existing at law or in equity or by statute. No delay or omission to exercise any right or power accruing upon any Default shall impair any such right or power or shall be construed to be a waiver thereof, but any such right and power may be exercised from time to time as often as may be deemed expedient. In order to entitle any party to exercise any remedy reserved to it in this Agreement, or existing in law or in equity, it shall not be necessary to give notice, other than such notice as may be herein expressly required. 8.5 NO ADDmONAL WAIVER IMPLIED BY ONE WAIVER. In the event any covenant contained in this Agreement should be breached by any party hereto and thereafter waived by the other party, such waiver shall be limited to the particular breach so waived and shall not be deemed to waive any other breach hereunder. No waiver shall be deemed to have been granted hereunder unless in writing and signed by the party granting the waiver. 8.6 REIMBURSEMENT OF EXPENSES UPON DEFAULT. In the event any party is in Default under any of the provisions of this Agreement and fails to cure such Default after any required notice and within a permitted cure period, the defaulting party shall, on demand therefor, reimburse the other party or parties for the reasonable fees and expenses of its attorneys actually incurred (whether or not suit shall have been brought) and such other expenses as may reasonably be incurred in the enforcement of performance or observance of any REl1293710004\MDSKIG05.26A 94060 1 56 C~5~~ obligation or agreement herein contained or in the collection of any sums due hereunder, together with interest thereon from the date such expense was incurred to the date of reimbursement at the highest lawful rate of interest. In the event of the City's Default, recovery hereunder shall be included in the Allowable Damages and limited by the provisions of Section 6.2. ARTICLE IX OPTION TO PURCHASE 9.1 OPTION TO PURCHASE. Provided BV is not in default under any of the terms, covenants or conditions of this Agreement, for a period of 30 days commencing on the date which is the later of 30 years after the date the City opens the Garage for service, or the date upon which City Financing Proceeds, including any bond financing utilized by the City to finance the purchase of the City Property and the construction of the Garage, have been repaid or retired, BV is hereby granted an option to purchase the Garage including the City Land, the Air Space and the Easements (the "Option"). The Option must be exercised pursuant to the terms of this Article IX. In no event shall the Option extend beyond the 30 day period set forth in this paragraph, anything to the contrary herein notwithstanding. BV shall deliver written notice of its interest in exercising the Option during said 30 day period (the "Option Notice") and closing shall occur within 180 days after the date of the Option Notice. The sales price shall be the fair market value of the City Property, based upon appraisals performed by appraisers acceptable to and selected by the City, and reasonably acceptable to BV plus any accumulated deficit arising from operating expenses and debt service exceeding gross revenues ("Accumulated Deficit") incurred by the City during its ownership of REl1293710004\MDSKIGOS.26A 940601 57 060 the City Property to the date on which BV closes on the purchase pursuant to this Article IX. City will advise BV annually in writing of the accumulated deficit for the preceding year. The method of evaluation utilized by the appraisers shall be to determine the value based upon highest and best use of the City Property according to the standards existing at the time the appraisals are made. Initially, there shall be two appraisals. If the values of the two appraisals are within 20 % of each other, then the value, exclusive of the portion of the sales price related to the City's Accumulated Deficit, shall be the average values of the two appraisals. If the difference exceeds 20 %, a third appraisal shall be obtained and the value, exclusive of the Accumulated Deficit, shall be the average of the three appraisals. In all events the sales price shall be the value determined by the appraisals as aforesaid plus the Accumulated Deficit. The purchase shall be on an all-cash basis and the property shall be free and clear of any liens, mortgages or encumbrances other than those created by BV. For a period of 40 days from receipt by the City of BV's Option Notice ("Inspection Period"), BV, its agents, employees and contractors shall be permitted to perform a complete inspection of the City Property. Unless BV gives the City written notice of its decision not to purchase prior to 5:00 p.m. on the date of expiration of the Inspection Period, BV shall be obligated to timely close on the purchase, time being of the essence. The City shall be fully indemnified and insured for property damage and personal injury to third parties and for damage to the City Property and the Garage to the extent caused by the inspections in such manner as it reasonably requires prior to any inspections being performed. Conveyance shall be" AS IS" without warranty or representation whatsoever. BV shall pay for the aforementioned appraisals and the City shall not be required to order any appraisals until payment therefor is delivered to the City by BV. BV's failure to pay for the REI 1293710004\MDSKlGOS.26A 94060 1 58 OGJt appraisals in advance in sufficient time to permit closing within the time required hereunder shall entitle the City to terminate this Option. The place of closing shall be in Dade County, Florida and designated by the City. At the time of closing, BV shall deliver to the City by wire transfer in cleared Federal funds the amount of the purchase price. If BV shall fail to timely exercise its option or shall fail to close, provided the City is ready, willing and able to close, BV shall no longer have any rights with respect to this Option. Upon termination of the Option, the City is authorized to record a notice terminating the Option and the Memorandum of Option. The purchase of the City Property shall comply with existing law as of the date of this Agreement as to sale of municipal real property unless a future law is retroactive and applicable to the date of this Agreement, in which case such future law shall apply. If BV elects, by giving timely written notice to the City before expiration of the Inspection Period, not to purchase, this Option shall terminate. If the Option is exercised, BV, at is sole expense, shall be responsible for performing its own title examination and obtaining and paying for title insurance with respect to the property to be acquired. The City shall convey title subject to easements, conditions, restrictions and limitations of record. The City, at the closing of title, shall furnish a Special Warranty Deed, a Mechanics Lien Affidavit, Bill of Sale, FIRPT A Affidavit, GAP Affidavit, such other instruments as are reasonably required by BV and such corrective instruments that may be required in connection with perfecting title. The City shall not be required to institute or defend any litigation in order to clear title. Closing costs, recording charges, documentary stamps, REI 1293710004\MDSKIGOS.26A 94060 1 59 06': surtax and other applicable charges and taxes shall be paid by BV. BV shall honor all parking agreements existing on date of closing for a period of three years after closing. In all events, this Option shall terminate and cease to exist upon the sale by BV of the Retail Space or the BV Land or the transfer of any interest in BV, the Retail Space, or the BV Land, whether voluntary or involuntary, resulting in Anthony Goldman or his heirs ("Anthony Goldman") not owning a majority interest in BV, the BV Land and the Retail Space. Provided that this Option has not terminated for the reasons set forth in the preceding paragraph and that the Parking Agreement has not been terminated, it may be exercised by BV in accordance with procedures and terms set forth above between the 25th and 30th years of the Parking Agreement in the event that the Garage is destroyed by fire or other casualty and the City elects not to reconstruct the Garage or if the City elects to terminate permanently the operation of the Garage during such period. In such event BV must deliver the Option Notice in writing to the City within 30 days after the City gives BV written notice of its election not to reconstruct the Garage or to terminate permanently the operation of the Garage. 9.2 Memorandum of Qption. The City and BV agree that a memorandum of the existence of BV's Option to purchase under this Agreement shall be executed by the parties in the form attached hereto as Exhibit "L" and shall be recorded in the Public Records of Dade County, Florida, upon execution of this Agreement. ARTICLE X RIGHT OF FIRST REFUSAL 10.1 RIGHT OF FIRST REFUSAL. The City is hereby granted the right of first refusal to purchase the BV Land and the Retail Space, provided such right is exercised pursuant REl1293710004\MDSKIGOS.26A 94060 1 60 06] to the terms of this section and the City gives BV written notice of its election to exercise the right of first refusal within 30 days after receipt of written notice of BV's intention to convey the BV Land or the Retail Space or any interest therein to a third party together with a copy of all proposed contracts, agreements and documents relating to the proposed sale. Copies of any such contracts and agreements must be delivered to City within 3 days of their receipt by BV. If the City elects to exercise its right of first refusal, closing shall occur under the terms of the proposed contract provided, however, that provisions reasonably required by the City which do not result in any material delay or any materially adverse economic change or cost to BV may be added to the contract to be signed by the City and BV and the City shall not be obligated to close for at least 120 days after exercise of the right of first refusal. To the extent the City's closing occurs after the last required date of closing in the proposed contract, BV shall be entitled to receive the value of its cost of funds for the extended period. If the City does not exercise its right of first refusal at anyone time, the City shall continue to have the right of first refusal under this Article X as to any future transactions involving the BV Land or the Retail Space and the prospective buyer shall be advised of this right in any contract of sale. The date and place of closing of title shall be designated by the City in its notice of election to exercise its right of first refusal, provided, however, that such date shall be not more than one hundred eighty (180) days and not less than thirty (30) days after the date of the notice from BV to the City. The place of closing shall be in Dade County, Florida. If the City does not exercise its right of first refusal, the third party contract must be signed in the form and on the same terms presented to the City, and the closing thereunder must occur without modification; otherwise, the right of first refusal shall be reinstated. If the third party shall fail to timely execute the REI 12937\0004\MDSKIGOS.26A 940601 61 '-tC4.. Cu contract or shall fail to close for the purchase price and under the terms and conditions contained in the contract presented to the City, then the right of first refusal to the City shall be reinstated. The closing of title shall take place in accordance with the proposed contract subject to any documents or conditions required by law as a result of the City being the party acquiring title. In addition, at the option of City, simultaneously with the closing or at any time requested by the City thereafter, BV will execute and deliver documentation terminating the Parking Agreement. 10.2 Memorandum of Rieht of First Refusal. The City and BV agree that a Memorandum of the existence of the right of first refusal under this Agreement shall be executed by the parties in the form attached hereto as Exhibit "M" and shall be recorded in the Public Records of Dade County, Florida, upon execution of this Agreement. ARTICLE XI SPECIAL COVENANTS 11.1 RIGHT OF ACCESS TO PROJECT. BV and the GC agree that the City and its duly authorized agents shall have the right at all reasonable times to enter upon the Project as may be necessary to carry out or determine compliance with this Agreement, but such entry will be subject to the giving of reasonable notice, to the execution of reasonable release of liability agreements and compliance with reasonable safety requirements of BV and GC. 11.2 MAINTENANCE OF EXISTENCE. Both BV and the GC agree that during the term of this Agreement they will each maintain their existence as a limited partnership or corporation, as applicable, will not dissolve or otherwise dispose of all or substantially all of their respective assets and will not consolidate with or merge into other corporations or REI I 293710004\MDSKIGOS.26A 940601 62 065 partnerships, or permit one or more other corporations or partnerships to consolidate with or merge into theirs, unless such change shall be approved in writing by the City Attorney or the City Manager. 11.3 NO SALE OR LEASE OF REI'AIL SF ACE. Until completion of the Project and acceptance by the City of the Garage, BV covenants that it will not sell, lease, convey, encumber, lien, pledge or otherwise dispose of any of the BV Land or the Retail Space or any interest therein or any beneficial interest in BV, except for leases to tenants for uses permitted hereunder who will occupy portions of the Retail Space in the ordinary course of business. 11.4 BV hereby grants to the City the right, in the reasonable exercise of its discretion, to prohibit any sale or lease of the Retail Space, or any portion thereof, to anyone with a criminal record, having outstanding unsatisfied judgments or liens held by the City or any of its agencies or departments or whose intent it is to use the Retail Space or any portion thereof for unlawful uses or uses detrimental to the area serviced by the Garage. Uses detrimental to the area serviced by the Garage are deemed to be: (1) Gun range or gun shop or other establishment selling firearms and/or ammunition; (2) adult X-rated book store (or tapes, CD ROM and the like); (3) peep show store; (4) head shop store; or (5) any store where the inventory includes sexual devices, sexually obscene or licentious magazines, videos, tapes or objects depicting genitalia and other similar items consisting of more than 30% of such store's inventory. All leases for the Retail Space must contain provisions notifying tenants of the terms of this Agreement and making said leases subject to and subordinate to the relevant terms hereof, and acknowledgement by tenant that the City has no obligation to provide alternative spaces if the Garage must be partially or fully closed for repairs, renovations or rebuilding and that City REl1293710004\MDSKIGOS.26A 940601 63 066 has the right to interrupt the business operations of the tenant to the extent reasonably necessary to gain access to the Easements and for maintenance, repairs, renovation and rebuilding of the Garage. BV acknowledges that the City has an interest in insuring that no portion of the Retail Space be leased to tenants whose occupancy would have a negative impact on the Garage and the area served by the Garage. 11.5 LEASE OF RAMP SPACE. The City agrees to lease to BV the land and improvements under the ramp of the Garage, as more particularly described on Exhibit "0" attached hereto and made a part hereof ("Ramp Space"), under the following terms and conditions: (A) Initial rental will be $5.00 per square foot, per year, plus all applicable taxes, including sales taxes and ad valorem taxes, net to the City, payable monthly in advance, subject to annual increases based upon the CPI computed against the initial $5.00 per square foot rental rate, but not to exceed 3% in anyone year. (B) BV is to maintain the Ramp Space at its sole cost and expense. (C) Any area utilized for parking in the Ramp Space shall be solely for loading and unloading purposes and all other parking is prohibited. (0) The electrical room in the Ramp Space shall be available to the City with rights of access, at no cost to the City, to house the City's telephone, CCTV, electrical and other equipment relating to the Garage, jointly with the telephone, electrical and other equipment of the Retail Space. REI 1293710004\MDSKIGOS.26A 940601 64 06~7 (E) The term of the lease of Ramp Space shall run concurrently with the term of the Parking Agreement, but the Ramp Space lease shall be assigned by BV to any subsequent owner of the Retail Space. 11.6 BV TO FURNISH CERTAIN FINANCIAL AND DISCLOSURE INFORMATION. BVand the GC covenant and each agree to furnish to City prior to execution of this Agreement, certified copies of financial statements, or, in the case of BV, financial statements may be signed by Anthony Goldman and notarized under oath, together with any supporting schedules or documentation which City may reasonably require in order to establish to the City's satisfaction that both BV and the GC are financially able to discharge their obligations under this Agreement and that BV has adequate funds to pay in full, on a timely basis, the Retail Space Construction Costs. The City may require updated financial statements to be furnished to it at any time thereafter from BV and the GC, or either of them so long as either BV or the GC has any remaining obligations under this Agreement or the General Contractor's Agreement. Further, BV and GC shall furnish a disclosure affidavit in form required by the City setting forth the names, addresses and percentage ownership of all persons having any interest in BV or the GC in such form as required by the City to satisfy the requirements of Section 286.23, Florida Statutes. 11.7 COVENANT REGARDING AUTHORIZED REPRESENTATIVES. The City, BV and the GC covenant to furnish to each other written certificates containing the names of the persons at the time designated to act on behalf of the City, BV or the GC pursuant to Section 4.2(A) hereof. REI 1293 7\0004\MDSKIGOS.26A 94060 1 65 068 11.8 REPRRC;:ENTATIONS AND WARRANTIF....c;: OF BV AND THE GC. BVand the GC each individually represents and warrants to City as to each of them as follows (all of which shall survive the expiration or other termination of this Agreement): (A) that there are no actions, suits or proceedings pending to the knowledge of BV or the GC, as applicable, threatened against or affecting BV or the GC, as applicable, at law or in equity or before any federal, state, municipal or governmental department, commission, board, bureau or agency or instrumentality which would impair BV or the GC's, as applicable, ability to perform its obligations under this Agreement; (B) that this Agreement has been duly authorized, executed and delivered by BV and the GC and constitutes the legal and valid binding obligation of BV and the GC, as applicable; (C) that the consummation of the transactions hereby contemplated in the performance of this Agreement will not result in a breach or violation of or constitute a default under any lease, bank loan or credit agreement to which either BV or the GC, as applicable, is a party; and (D) to the best of their knowledge, but without having made any investigation, neither BV or the GC, nor any other property owned or leased by BV or the GC, as applicable (I) is subject to any private or governmental lien or judicial or administrative notice, order or action relating to Hazardous Substances or environmental problems, impairments or liabilities with respect to the City Property or the BV Land which could affect either BV's or the GC's, as applicable, ability to perform under this Agreement, or REI 1293710004\MDSKIGOS.26A 94060 1 66 069 (2) is in, or with any applicable notice and/or lapse of time, and/or failure to take certain curative or remedial actions, will be in, either direct or indirect violation of any Environmental Laws. 11.9 PARKING AGRF.F.MF.NT. BV and the City shall enter into a Parking Agreement in the form required by the City, no later than the date the City acquires title to the City Property, and as a condition precedent to the City's obligation to close on said purchase and containing the following terms and conditions: (A) The location of the parking spaces which are the subject of the Parking Agreement, and the rules and regulations pertaining to such spaces, shall be as determined by the City. Initially, the rate per parking space licensed to BV shall be $75.00 per month ("Base License Rate"), fixed for two (2) years, payable monthly in advance, plus applicable taxes. Thereafter the Base License Rate shall be subject to annual adjustment based upon the consumer Price Index for Wage Earners and Clerical Workers, Miami, Florida (1982 - 1984 = 1(0) published by the Bureau of Labor Statistics of the United States Department of Labor ("CPI"). The "Base Number" shall be the index for that month and year which is two (2) months prior to the commencement date of the Parking Agreement (the "Base Month"). The "Current Number" shall mean the latest index published for the Base Month of each calendar year during the term of the Parking Agreement by the Bureau of Labor Statistics or other governmental agency then publishing the CPI (or if the CPI is no longer published, a similar index for Miami, Florida most closely comparable to the CPI) after making such adjustments as may be prescribed by the agency or entity publishing the same, or as otherwise may be required, to compensate for changes subsequent to the Base Number in the base, items included or method of compilation RE\ 12937\0004IMDSKIGOS.26A 940601 67 070 thereof. If the Current Number exceeds the Base Number, then the Base License Rate shall be multiplied by a fraction, the numerator of which is the Current Number and the denominator of which is the Base Number and the product shall thereupon be deemed to be the Base License Rate for the forthcoming year. In no event shall the Base License Rate be less than $75.00 per parking space per month during the entire term of the Parking Agreement. In the event that the Current Number shall be unavailable at the time of commencement of an adjustment year, BV shall pay to City on the basis of the existing Base License Rate until such time as the required adjustment is determined, at which time an accounting will be made retroactive to the commencement of the adjustment year. Anything herein to the contrary notwithstanding, it is agreed that the Base License Rate shall not increase more than 3 % in anyone year. It is further agreed that when the Base License Rate is re-adjusted every 5 years to the greater of the then existing Bulk Rate or $75.00 per month, the Base Month shall be the month and year which is two (2) months prior to the commencement of the five year re-adjustment period. The Base License Rate shall be re-adjusted on each fifth anniversary of the Parking Agreement to equal the greater of $75.00 per month or the then existing Bulk Rate, as defined below, and shall thereafter be subject to the annual CPI adjustment as above provided on an annual basis. BV shall obtain and pay for not less than 150 spaces, and, at its option, up to a maximum of 25 % of the total spaces in the Garage each year. BV shall notify the City in writing annually, not less than 30 days prior to each anniversary of the Parking Agreement as to the number of parking spaces, subject to the aforesaid minimum and maximum criteria, it will contract for in the forthcoming year. The parking spaces licensed to BV shall not be specifically designated or assigned and shall be accessed on the same conditions as other licensees of parking spaces REl1293710004\MDSKIGOS.26A 94060 1 68 071 in the Garage, except as to the rate charged and term of the license. The City shall have no obligation to leave empty at all times the total number of spaces licensed to BV, but shall be permitted to oversell spaces based upon computer utilization guidelines. The initial term of the Parking Agreement shall be for 30 years.BV shall have the option to renew the Parking Agreement for two successive 30 year terms on the same terms, subject to adjustment in the Base License Rate, and subject to annual adjustments based upon the CPI, both as above provided, at the lowest Commercial Bulk Rate, if any, which the City offers to other non- governmental parties in the area bounded on the east by the alley east of Collins Avenue, the west by the alley west of Washington Avenue, the south by either side of 5th Street and the north by either side of 14th Street ("Bulk Rate"). The City shall have the right to terminate the Parking Agreement upon the expiration of its initial thirty year term if the City determines that the Garage will no longer be operated, or at any time commencing with the 25th anniversary of the Parking Agreement if it elects not to rebuild the Garage following its damage or destruction by casualty or otherwise, in the City's sole discretion. In such event, provided it is not otherwise precluded from doing so under the provisions of Article IX of this Agreement, BV may exercise the Option in accordance with the terms and conditions of said Article IX. Prior to the 25th anniversary of the Parking Agreement, the City shall rebuild or repair the Garage within a reasonable time after a casualty causing its damage or destruction. The City shall have complete discretion in any rebuilding, renovation or redesign of the Garage including elimination or addition of spaces. The parking spaces may only be utilized for tenants, guests and customers of properties owned by Anthony Goldman or his heirs ("Goldman") or entities in which Goldman is the majority (i.e. 50% or more in beneficial and voting interest) owner and which REl12937\0004\MDSKIGOS.26A 940601 69 072 is controlled by Goldman ("Goldman Properties"). The right to use of the parking spaces which are the subject of the Parking Agreement shall not be transferable upon sale of any of the Goldman Properties or any interest therein which reduces Goldman's ownership interest to less than 50%. (B) BV has represented to the City that in order for BV to reach agreement with the owner of the Resnick Land ("Resnick") to acquire the Resnick Air Space and the Easements on the Resnick Land, Resnick has required BV to permit it to use six (6) of the parking spaces to be licensed to BV under the Parking Agreement upon payment by Resnick to BV of the same amount per parking space which BV is required to pay to the City from time to time. The City hereby consents to such agreement on the conditions that Resnick's rights shall be subordinate and inferior to the City's rights under the Parking Agreement, shall terminate upon termination of the Parking Agreement and that Resnick acknowledges in writing to the City these conditions of the City's consent. (C) In the event that 100% of the Retail Space is not leased and occupied by no later than six (6) months after the Completion of the Garage then BV shall license from the City additional parking spaces in the Garage at double the monthly amount then being paid by BV to the City for the spaces licensed to BV. The number of additional spaces shall be 25 if 100% of the Retail Space is vacant or a proportionately lower number based upon the ratio that the percentage of vacant space bears to 25 (e.g. a 20% vacancy in the Retail Space requires the licensing of 5 spaces). Once the Retail Space is fully leased and occupied the obligations of BV to license additional parking spaces shall terminate and shall not be reimposed even though a portion of the Retail Space is subsequently vacated. REI 1293710004\MDSJCJGOS.26A 94060 1 70 073 (D) In the event that it is ever determined by any taxing authority or other governmental agency that the Garage is subject to ad valorem property taxes by virtue of the existence of the Parking Agreement, BV shall pay said tax in full promptly when due, in addition to all other payments required of it pursuant to this Parking Agreement. (E) In the event that BV fails to timely pay the obligations under the Parking Agreement, the City may temporarily terminate all rights of BV under the Parking Agreement forthwith until all required payments are brought current. Failure of BV to bring such payments current within 90 days shall entitle the City to temporarily terminate the Parking Agreement without BV having any right to reinstate same and, in such event, the Option granted to BV pursuant to Article IX hereof to purchase the City Property shall immediately terminate. The City shall further have the right to permanently terminate the Parking Agreement and the Option to Purchase granted under Article IX in the event that the Parking Agreement temporarily terminates five times during the term thereof. The City shall give BV written notice of its Default in payment in order to commence the running of the 90 day period for permanent termination of the Parking Agreement and the Option to Purchase. 11.10 MANAGEMENT AND OPERA nON OF PROJECT. The City and BV expressly recognize that in the fulfillment of their respective obligations to maintain and repair the Garage and the Retail Space, certain functions and responsibilities will overlap by virtue of the contiguity of said structures and the support systems of the Garage running through the Retail Space and attaching to the BV Land. Accordingly, it is agreed that a detailed agreement of maintenance responsibility shall be entered into between the City and BV on or before September 30, 1994, which agreement shall provide for the City to make the determination of disputed REI 1293710004\MDSKIGOS.26A 94060 1 71 074 areas of responsibility, with BV retaining the right to contest such determination and to seek reimbursement from the City for the cost of performing disputed work but only after such repair or maintenance is completed. The existence of a dispute between the City and BV over maintenance or repair responsibility shall not relieve either party of performing the same in accordance with the determination made by the City until and unless changed by court order or agreement of the parties. This maintenance agreement shall include provisions for cleaning, annual inspections, painting, maintenance of landscape areas, maintenance of walls and other building portions common to the Garage and Retail Space and such other matters reasonable or customary in similar facilities. BV acknowledges that the Garage is owned by the City and if, for aesthetic, economic or other reasons deemed by the City to be in its best interests the City has the sole right to change the design, structure or appearance of the Garage at anytime after it is constructed. 11.11 REPRESENTATIONS AND WARRANTIES OF THE CITY. The City represents and warrants to BV and the GC: (a) that this Agreement has been duly authorized, executed and delivered by the City and constitutes a legal and binding obligation of the City; (b) that, based upon information received by the City from its bond counsel, the proceeds of the Gulf Breeze Bond Pool may be utilized by the City for the purchase of the City Property and for the construction of the Garage; and (c) the City is not aware of any actions, suits or proceedings, pending or threatened, at law or in equity before any Federal, state, municipal or governmental department, commission, board, bureau or agency or instrumentality which would impair the ability of the City to perform its obligations under this Agreement. REI 12937\0004\MDSKIGOS.26A 94060 1 72 O~75 11.12 ANTI-DISCRIMINATION DURING CONSTRUCTION AND EOUAL EMPLOYMENT OPPORTUNITY. (A) Non-Discrimination. BV and the GC each agrees it will not discriminate upon the basis of race, color, creed, national origin, religion, age, sex or sexual preference in the construction of the Garage and Retail Space, and that each contract or agreement with respect thereto shall specifically contain this provision. (B) EQual OJ),portunity Provision. (1) In the construction of the Garage and Retail Space neither BV, the GC nor any contractor, agent or employee of BV or the GC shall discriminate against any employee or applicant for employment because of race, color, creed, national origin, religion, age, sex or sexual preference and they shall take affirmative action to ensure that applicants are employed, and that employees are treated during employment, without regard to their race, color, religion, age, sex, or national origin. Such action shall include, but not be limited to, the following: Employment, upgrading, demotion, or transfer; recruitment or recruitment advertising, layoff or termination; rates of payor other forms of compensation, and selection for training, including apprenticeship. BV and the GC each agrees to post in conspicuous places, available to employees and applicants for employment, notices to be provided by the City setting forth the provisions of this Equal Opportunity Clause, and to cause any contractor, sub-contractor or agent to do likewise. (2) BV, the GC and any contractor, sub-contractor or agent shall, in all solicitations or advertisements for employees placed by them or on their behalf, state that all qualified applicants will receive consideration or employment without regard to race, color, REl1293710004IMDSKIGOS.26A 94060 1 73 O~76 creed, national origin, religion, age, sex or sexual preference. They shall send to each labor union, if any, or representative of workers with which they, or any of them, have a collective bargaining agreement or other contract or understanding, a notice, to be provided by the City, advising the labor union or workers representative of their commitments under this Equal Opportunity Clause, and shall post copies of the notice in conspicuous places available to employees and applicants for employment. (C) Certification of Nonse&ree:ated Facilities. BVand the GC each certifies that it does not maintain or provide for its employees any segregated facilities at any of its establishments, and that it does not permit its employees to perform their services at any location, under its control, where segregated facilities are maintained. Each certifies further that it will not maintain or provide for its employees any segregated facilities at any of its establishments, and that it will not permit its employees to perform their services at any location, under its control, where segregated facilities are maintained. BV and the GC each agrees that a breach of this certification is violation of this Article XI of this Agreement. As used in this certification, the terms "segregated facilities" means any waiting roms, work areas, rest rooms and wash rooms, restaurants, and other eating areas, time clocks, locker rooms and other storage or dressing areas, parking lots, drinking fountains, recreation or entertainment areas, transportation, and housing facilities provided for employees which are segregated by explicit directive or are in fact segregated on the basis of race, color, religion, or national origin, because of habit, local custom or otherwise. BV and the GC each further agrees, as applicable, that it will obtain identical certifications from proposed contractors, sub-contractors and managers prior to the award of any contracts and that it will retain such certifications in its files. REl12937\0004IMDSKIGOS.26A 940601 74 Of";'? 11.13 OTHER DOCUMENTS. BV, the GC and the other members of the Design Team shall deliver or cause to be delivered such other documents which the City reasonably requests in connection with the subject matter of this Agreement. 11.14 RRT,ATED PARTY VIOLATIONS AND PAST DUE CHARGES INVOLVING CITY BUSINESS. BV hereby grants to the City a right of set off and deduction against any amounts owed or to be paid by the City to BV under this Agreement, the Purchase Agreement or any related documents for any amounts, including, but not limited to, taxes, liens and assessments, due and payable by any entity or entities in which Anthony Goldman is an owner, regardless of the amount of his ownership, to the City or any of its agencies or departments. Said set off shall occur at closing on the purchase by the City of the City Land and Air Space. ARTICLE xn MISCELLANEOUS 12.1 SURVIVAL. Unless otherwise specifically stated to the contrary in this Agreement, the provisions of this Agreement and the applicable payment, performance and completion obligations of the parties set forth in this Agreement shall survive the execution of this Agreement and any closing contemplated herein and shall survive termination of this Agreement, as applicable. 12.2 AITORNEYS FEES. Subject to the limits of liability set forth in this Agreement, if any party obtains a judgment against any other party by reason of any litigation arising out of this Agreement, reasonable attorneys' fees and costs may be recovered and may be included in such judgment. REI 12937\0004IMDSIC1GOS.26A 940601 75 nt)~ ~... . "---- 12.3 Ap,proval by Mayor and CiU' Commission. This Agreement shall be binding upon the City only after it has been approved at a public meeting by the Mayor and City Commission of the City of Miami Beach and signed by the Mayor or Vice Mayor for the City or another duly authorized person. 12.4 NOTICES. All notices, certificates or other communications hereunder shall be written and shall be deemed given when mailed by first class mail, postage prepaid, except where certified mail has been expressly required, addressed as follows: (A) If to BV, to: Mr. Anthony Goldman Goldman Properties c/o Park Central Hotel 640 Ocean Drive Miami Beach, Florida 33139 and at: 103 Greene Street New York, New York 10012 (B) If to City, to: City of Miami Beach 1700 Convention Center Drive 4th Floor Miami Beach, Florida 33139 Attn: Mr. Roger Carlton, City Manager and to: City of Miami Beach 1700 Convention Center Drive 4th Floor Miami Beach, Florida 33139 Attn: Laurence Feingold, Esq. City Attorney (C) If to the GC, to: James A. Staskiel, Esq. Vice President & General Counsel McCarthy 1341 North Rock Hill Road St. Louis, Missouri 63124 REI 12937\0004\MDSKlGOS.26A 940601 76 fY79 The City, BV and the GC may, by written notice given hereunder, designate any further or different addresses, which subsequent notice of change of address shall be effective only when received by each other party hereto. 12.5 AGRHHMF.NT BINDING UPON PARTIF...4:; AND SUCCESSORS. This Agreement shall inure to the benefit of and shall be binding upon the City, BV and the GC and their respective successors and assigns, subject, however, to the limitations contained herein. 12.6 PROHIBmON OF LIENS. Neither BV nor the GC shall create or suffer to be created by any other person any lien or charge, whether for taxes, assessments, materials, supplies, labor or otherwise, upon the BV Land, the City Property or the Retail Space or any part thereof or upon the rents, contributions or charges or receipts or revenues therefrom for work for which GC has been paid as provided herein. BV and the GC, jointly and severally, further agree to payor cause to be discharged or make adequate provision to satisfy and discharge, within thirty (30) days after the same shall become due, any such lien or charge and also all lawful claims or demands for labor, materials, supplies or other charges which, if unpaid, might be or become a lien upon the Garage or the Project or any part thereof or the revenues or income therefrom for which GC has been paid as provided herein. 12.7 MODIFICATION OR AMENDMENT. No modification or amendment of this Agreement or of any agreement supplemental hereto may be made except by written agreement only, executed by all of the parties hereto. 12.8 REASONABLENESS OF APPROVALS. Pursuant to this Agreement, the City, BV and the GC are required to give approvals to various matters affecting the rights of each REI 12937\0004\MDSKIGOS.26A 940601 77 080 other. In considering whether to give such approval the City, BV and the GC shall each be reasonable in making such determination. 12.9 COUNTERPARTS. This Agreement may be executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument. 12.10 APPLICABLE LAW. This Agreement shall be construed and enforced according to the laws of Florida. Any litigation arising herefrom shall be filed in Dade County, Florida. 12.11 SEVERABILITY OF PROVISIONS. If anyone or more of the covenants, agreements or provisions herein contained shall be held contrary to any express provisions of law or contrary to the policy of express law, though not expressly prohibited, or against public policy, or shall for any reason whatsoever be invalid, then such covenants, agreements or provisions shall be null and void and shall be deemed separable from the remaining covenants, agreements or provisions and shall in no way affect the validity of any of the other provisions hereof. 12.12 PROVISIONS OF LAW DF.F.MRD INCLUDED. Each and every provision of State and Federal law required to be included in municipal agreements shall be deemed to be included herein, and this Agreement shall be read, construed and enforced as though the same were included herein. If, through mistake, inadvertence or otherwise, any such provision or clause is not included herein or is incorrectly included herein, then, upon application of either party hereto, this Agreement shall forthwith be amended to include the same or to correct the inclusions of the same. REI 12937\0004\MDSKIGOS.26A 94060 1 78 "8'~ c __:) 12.13 INV A T.m PROVISIONS. If any provision of this Agreement is held invalid, the remainder of this Agreement shall not be affected thereby if such remainder would then continue to conform to the requirements of applicable laws. 12.14 APPLICABLE LAW AND CONSTRUCTION. The laws of the State of Florida shall govern the validity, performance and enforcement of this Agreement. This Agreement shall become effective only after it has been approved as contemplated by Section 12.3 and thereafter only upon execution and delivery thereof by the City, BV and the GC. The headings of the several sections contained herein are for convenience only and do not define, limit or construe the contents of such sections. This Agreement has been negotiated by the City, BV and the GC and the Agreement, together with all of the terms and provisions hereof, shall not be deemed to have been prepared by anyone of the parties hereto. 12.15 GENDER AND NUMBER. Words of any gender used in this Agreement shall be held to include any other gender, and words in the singular shall be held to include the plural (and vice-versa), when the sense requires. 12.16 AWARD OF CONTRACT. BV warrants that it has not employed or retained any company or persons to solicit this Agreement and that BV has not paid or agreed to pay any company or persons any fee, commission, percentage, brokerage fee, gifts or any other considerations contingent upon or resulting from the transactions which are the subject of this Agreement. 79 The next page will be 79A REI12937\0004\MDSK1GOS.26A 940601 08;~ 12.17 CONFLICTS WITH LEITER OF INTENT. This Agreement supersedes any prior written agreement in conflict herewith and supersedes, replaces and incorporates, as applicable, any provisions of any memorandum or letter of understanding previously approved by the parties. BV also warrants that to the best of its knowledge and belief no commissioner, mayor or other officer or employee of the City is interested directly or indirectly in the profits or benefits of this Agreement or the job, work, or services for the City in connection with the Agreement or the Project. BV and the GC are aware of the conflict of interest laws of The City of Miami Beach, Dade County, and the State of Florida and each agrees that it shall fully comply in all respects with the terms of said laws. 12.18 INCONSISTENCY WITH OTHER DOCUMENTS. In the event of any inconsistency between the terms and provisions of this Agreement and those of the General Contractor's Agreement or any other document executed pursuant hereto, the terms and provisions of this Agreement shall prevail. 79A REI 1293710004\MDSKIGOS.26A 940601 083 EXHIBIT "B" Lower Elevation of Air Space REl12937\0004\MDSICIGOS.26A 94060 1 081 EXHIBIT "C" BV Land REI 12937\0004IMDSKIGOS.26A 94060 1 085 EXHIBIT "D" city T ..and REl12937\0004\MDSKIGOS.26A 940601 086 EXHIBIT "E" Draw Request REl12937\0004\MDSKIGOS.26A 940601 t'8l7 RYJlTRIT "F" General Contractor's A~ent REI1293710004IMDSKlGOS.26A 94060 1 088 REI 1293710004IMDSDGOS.26A 940601 RXHTRIT "G" Narrative and Schedule of GMP lRsismIBuild Costs of Garaee US9 REl12937\0004\MDSKIGOS.26A 940601 Exhibit "H" GMP Deshm DeveloDment Drawin~" and Outline Specifications 090 Exhibit "I" Retail Snace Constroction Costs RE\12937\0004\MDSKIGOS.26A 94060 1 091 Exhibit "1" Schedule of Perfonnance RE\12937\0004\MDSKIGOS.26A 940601 092 Exhibit "K" Reauest for Disbursement RE\ 12937\0004\MDSKIGOS.26A 940601 093 Exhibit "L" Memorandum of Option RE\12937\0004\MDSKIGOS.26A 940601 094 Exhibit "M" Memorandum of Rb!bt of FlI'St Refusal RE\12937\0004\MDSKIGOS.26A 940601 095 Exhibit "N" F.avments (A) the right of the City, its successors, assigns, patrons, tenants, invitees and all other persons designated by or having business with the City to access and use alone or in conjunction with BV, and all others of all public sidewalks, streets, avenues, curbs and roadways fronting on and abutting the Premises; (B) the right of the City to have ingress, egress and passageway in, over, through and across the Premises which shall be necessary or desirable for entrance, exit and passageway within, to or from the Garage for the use in common of the City and BV, their respective successors, assigns, patrons, tenants, invitees and all other persons having business with any of them; (C) the right of support and right of use in respect of, and to maintain and access within the BV Land and the Retail Space, all as reasonably determined by the City, all essential structural support elements, all pump systems for flood water control, all fire stand pipes, public fire exits and fire control systems, all gas, electric, telephone, water, sewer, waste water, storm water drainage and other utility lines, pipes, conduits and systems, all elevator apparatus and elevator banks, all gas, electric, mechanical, elevator machinery, water, electrical and other utility rooms, including meters and meter rooms, all heating, ventilating and air-conditioning systems, all machinery and equipment, all electrical, plumbing and mechanical systems and any pertaining to and needed now and in the future to support, use and operate the Garage; RE\12937\0004\MDSKIGOS.26A 94060 1 096 Exhibit "0" RamD Snace Description RE\ 1293 7\0004IMDSKIGOS.26A 940601 1)97 (0) the right to access, use, inspect, maintain, repair, renew, replace and relocate such columns, supports, foundations, drains, utility lines, elevator shafts and pits and other improvements and facilities in the Premises; and (E) the right to reasonably close, disturb and interrupt the business, use and operations within the Premises or any part thereof, including any business and use being conducted by BV or any successor, assign, tenant or licensee of BV, during any period of maintenance, work or use by the City of any of the Premises pursuant to the Easements. The Easements shall be continuing and shall be a covenant running with the BV Land and shall apply to the original construction of the Garage and to any replacements and relocation of the Garage and of any of the improvements within the Easements and within the BV Land. RE\12937\0004\MDSKIGOS.26A 94060 1 '._'9~ EXHIBIT "A" Air Space All air space bounded as follows: (A) lower boundary - the horizontal plane at elevation _' as shown in Exhibit "B" attached hereto and made a part hereof or the lowest portion of the roof of the Retail Space or the lowest portion of the Garage including any ramps serving the Garage when actually built, whichever of any of them is lower; and (B) upper boundary - all air space above the lower boundary is part of the Air Space. (C) peri metrical boundaries - the perimetrical boundaries as shall conform to the exterior boundaries of the BV Land less the City Land projected vertically to intersect the upper and lower boundaries, within which space the Garage shall be constructed as delineated below: RE\12937\0004\MDSKIGOS.26A 94060 1 ('99 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by its duly authorized officers all as of the date first above written, but actually executed and delivered this ~ ~ t. , 1994. CITY : ATTEST: CITY OE MIAMI BEACH, a Florida orporation \G~ C.~ City Clerk v By: .~~ ~,~~ . {L/nl~ MVYl i (Q. ~l~'- y\1(1110 ~ By: GV1 ~~ , President ~ full(.T vale. Cor-r., ~ Flori do. cot'fOltAndh ~c::. 90\ertt.1 po.r1'r\er GC: MCCARTHY BROTHERS COMPANY, a Missouri corporation By:J1.~ ~r-i~. \4 . ^,^-ct~() I Gr-.". Res. ATTEST: REI 1293 7\0004\MDSKIGOS .26A 940526 80 l~.O Notice of Change of Address See Following Page o 4 Y {¢ l o w. l G O L D M A N P R O P E R T I E S p. t July 7, 2022 Via Certified U.S. Mail Return Receipt Requested City of Miami Beach 1 700 Convention Center Drive 4 Floor Miami Beach, FL 33139 Attn: City Manager & City Attorney Re: NOTICE OF CHANGE OF ADDRESS n Dear City Manager & City Attorney: I write to you on behalf of The Ballet Valet Parking Company, Ltd. with respect to the following agreements (collectively, the "Agreements"): l. Maintenance Agreement by and between the City of Miami Beach and The Ballet Valet Parking Company Ltd. Dated August 11, 1997; 2. Lease Agreement by and between the City of Miami Beach and The Ballet Valet Parking Company, Ltd. Dated August 11, 1997; 3. Parking Agreement by and between the City of Miami Beach and The Ballet Valet Parking Company, Ltd. Dated August 11, 1997; and 4. Acquisition, Construction and Development Agreement for the Parking Garage Project at SW Comer of Collins Avenue and 7th Street among the City of Miami Beach, The Ballet Valet Parking Company, Ltd., and McCarthy Brothers Company dated June 6, 1995. Please be advised that The Ballet Valet Parking Company, Ltd.'s address for all purposes of notice under each of the Agreements is updated as follows: The Ballet Valet Parking Company, Ltd. c/o Goldman Properties 310 NW 26" Street Suite B Miami, FL 33127 Attn: Daniel T. Whyte, Esq. Should you have any questions, please contact me at (305) 804-2602 or danielw@goldmanproperties.com Sincerely, Daniel T. Whyte, Esq. On behalf of The Ballet Valet Parking Company, Ltd