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99-23236 RESO ~ , . .. '. RESOLUTION NO. 99-23236 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING ON SECOND READING, THE DEVELOPMENT AGREEMENT, IN ACCORDANCE WITH THE REQUIREMENTS OF THE FLORIDA LOCAL GOVERNMENT DEVELOPMENT AGREEMENT ACT, BETWEEN THE CITY OF MIAMI BEACH AND LINCOLN PLAZA PARTNERS LLC, FOR DEVELOPMENT OF THE SITE LOCATED AT 17TH STREET AND LINCOLN LANE AND JEFFERSON AND MICHIGAN AVENUES, AND APPROVING THE LEASE AGREEMENT BETWEEN THE CITY OF MIAMI BEACH AND LINCOLN PLAZA PARTNERS LLC, TO LEASE SAID SITE FOLLOWING A PUBLIC HEARING HELD IN ACCORDANCE WITH THE PROVISIONS OF SECTIONS 82-36 THROUGH 82-40 OF THE CODE OF THE CITY AND PROVIDING AN EFFECTIVE DATE. WHEREAS, on January 5, 1998, pursuant to the authorization of the Mayor and City Commission, the Administration issued a Request for Proposals for the development of public- private parking facilities in the area south of Dade Boulevard (the "RFpII); and WHEREAS, the City issued the RFP in order to solicit qualified development teams to bid on certain publicly-owned sites identified in the RFP and/or to propose the development of parking on privately owned property; and WHEREAS, on April 6, 1998, the City received proposals from five (5) different development teams for various sites throughout the South Beach area; and WHEREAS, on June 30, 1998, an Evaluation Committee appointed by the City Manager and approved by the Mayor and City Commission, heard presentations from five teams; and WHEREAS, in accordance with the criteria identified in the RFP, the Evaluation Committee ranked the proposals and provided their recommendations to the City Manager; and WHEREAS, on July IS, 1998, the City Commission adopted Resolution No.98-22857, authorizing the Administration to negotiate with a joint venture composed of entities owned by Scott Robins and R. Donahue Peebles (now known as Lincoln Plaza Partnership LLC), with regard to the site located between 17th Street and Lincoln Lane and Jefferson and Michigan Avenues; and WHEREAS, on May 26, 1999, after a duly noticed public hearing held pursuant to the Florida Local Government Development Agreement Act, Section 163 .3220, ~. ~., Florida Statutes, the Mayor and City Commission approved the proposed development agreement by and between Lincoln Plaza Partners LLC (the "Developer") and the City (the "Development Agreement"), on first reading and set a second public hearing on the Development Agreement for July 7, 1999, and also set said date for a hearing pursuant to Sections 82-36 through 82-40 of the Code of the City with respect to the proposed agreement oflease by and between the Developer and the City (the "Lease"); and " ~ WHEREAS, pursuant to the requirements of Section 82-39 of the Code of the City, the City obtained an independent appraisal of the fair market or rental value of its property; and WHEREAS, on June 22, 1999, after a duly noticed public hearing held pursuant to Sections 142-421 through 142-425 of the Code of the City, the Planning Board reviewed the proposed private use of the land owned by the City and zoned GU government use district, and in connection with such review the Planning Department prepared an analysis using the criteria set forth in Section 82- 38 of the Code of the City; and WHEREAS, the aforesaid public hearings on the Development Agreement and the Lease have been duly noticed and held and the Mayor and City Commission hereby find and determine that it is in the best interest of the City to enter into the Development Agreement and the Lease. NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, as follows: 1. It is hereby determined and declared that the matters set forth in the recitals are true and correct and they are hereby incorporated as part of this Resolution. 2. The Mayor and City Commission hereby approve the Development Agreement on second reading and approve the Lease Agreement substantially in the form attached hereto, and authorize the Mayor and City Clerk to execute said documents. 3. This Resolution shall take effect immediately upon its adoption. PASSED and ADOPTED this 7th day ofJuly, 1999. n!YOR ATTEST: ftbr f AA~ CITY CLERK APPROVED AS 10 fORM & LANGUAGE & FOR EXECUTION SR/CMC/rar T:\AGENDA\I999\JUL0799\REGULAR\ROBINS.RES ~~ &/;0/91 ityA DeN CITY OF MIAMI BEACH CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139 http:\\ci.miami-beach.fl.us TO: FROM: SUBJECT: COMMISSION MEMORANDUM NO. 503 -9'7 Mayor Neisen O. Kasdin and Members of the City C mission DATE: July 7, 1999 Sergio Rodriguez City Manager A RESOL I OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING ON SECOND READING, THE DEVELOPMENT AGREEMENT, IN ACCORDANCE WITH THE REQUIREMENTS OF THE FLORIDA LOCAL GOVERNMENT DEVELOPMENT AGREEMENT ACT, BETWEEN THE CITY OF MIAMI BEACH AND LINCOLN PLAZA PARTNERS LLC, FOR DEVELOPMENT OF THE SITE LOCATED AT 17TH STREET AND LINCOLN LANE AND JEFFERSON AND MICHIGAN A VENUES AND APPROVING THE LEASE AGREEMENT BETWEEN THE CITY OF MIAMI BEACH AND LINCOLN PLAZA PARTNERS LLC, TO LEASE SAID SITE FOLLOWING A PUBLIC HEARING HELD IN ACCORDANCE WITH THE PROVISIONS OF SECTION 82-36 THROUGH 82-40 OF THE CODE OF THE CITY AND PROVIDING AN EFFECTIVE DATE. RECOMMENDATION: Adopt the Resolution. BACKGROUND: On January 5, 1998, the City of Miami Beach issued RFP 20-97/98, seeking proposals for the development of Public-Private Parking facilities. On April 6, 1998, proposals from five (5) different development teams were submitted and evaluated by an Evaluation Committee. On July 15, 1998, the City Commission authorized negotiations commence with four (4) of the proposed development projects as follows: Site 1: Municipal Parking Systems Site 2: Municipal Parking Systems Site 3: Park One, Inc. Site 4: Lincoln Place -Michigan and 17th Street -Lenox Avenue and 17'. Street -Collins Avenue and 10th Street -Washington Avenue and 16'. Street AGENDAITEM~ DATE 7 -1 ~q'i' July 7, J 999 Commission Memorandum Page 2 On September 10, 1998, the City issued RFP 111-97/98, to evaluate the four (4) municipal surface parking lots proposed for the development of Public-Private Parking facilities. On September 23, 1998, the City Commission authorized the Administration to contract with HNTB to conduct such an evaluation of the proposed developments. On February 3, 1999, the City Commission referred Phase I ofHNTB's report and recommendations, regarding the proposed Public-Private Development Proposals, to the Finance and Citywide Projects Committee, which met on February 25, 1999. On March 3,1999, the City Commission accepted the Finance and Citywide Projects Committee's report to phase the development of the projects and directed the Administration to begin negotiations for Site I and Site 4 and to begin discussions with the developer for Site 3 to try to work out the differences and allow for possible agreement on terms that could be presented back to the Committee. To facilitate the negotiations, the City Attorney engaged the firm of Bloom & Minsker to assist and draft the attached Ground Lease Agreement and Development Agreement. On May 26, 1999, the City Commission held a public hearing and approved the Development Agreement on first reading for both Site I and Site 4. On June 22, 1999, the proposed project was favorably reviewed by the City's Planning Board. Pursuant to the provisions of City Ordinance 92-2783 (the "Shapiro Ordinance"), which is codified in Sections 82-36 through 82-40 of the Code ofthe City, the lease of any City-owned property for a period of five years or more, including option periods, is subject to the following conditions: . a Planning Department analysis . a public hearing to obtain citizen input . an advertised public bidding process . an independent appraisal to determine the fair market or rental value of the property Said Ordinance further provides that except for the public hearing and the Planning Department analysis, the above referenced conditions may be waived by a 5/7ths vote of the City Commission upon a fmding that the public interest would be served by waiving such conditions. A public hearing has been scheduled on this date and the Planning Department analysis of the proposed Lease Agreement is attached for City Commission consideration (see Exhibit I). As previously stated, this lease was negotiated based upon a publicly advertised RFP for which an appraisal has been procured; therefore no waivers are requested at this time. Development Regulations: In accordance with the Florida Local Government Development Agreement Act, the City of Miami Beach and Lincoln Plaza Partners LLC, are entering into a Development Agreement to address, among other things: . the proposed development at the site . the development regulations applicable to the site . the improvements to be constructed by the developer (tenant) . the timeframe by which the developer (tenant) shall obtain all building permitS and complete construction, subject to unavoidable delays. July 7, 1999 Commission Memorandum Page 3 The City Commission has held the first of two public hearings required to enter into a Development Agreement. This resolution will approve the Development Agreement on second and final public hearing. The subject City land is presently zoned Government Use (GU). The proposed public-private developments represent private or joint government/private uses in the GU district. Pursuant to Section 142-423 of the City Code, any such use requires review by the Planning Board prior to approval by the City Commission. On June 22,1999, Lincoln Plaza Partners LLC presented their proposed development project to the Planning Board, outlining the uses and setting forth the applicable development regulations. The Planning Board favorably reviewed the proposed project commenting on its favorable location and adequacy of parking for the public. Pursuant to Section 142-425 of the City Code, the City Commission must confirm the development regulations that apply as a result of such proposed private or joint government/private use to be the average of the requirements in the surrounding districts, as determined by the Planning and Zoning Director. The Planning and Zoning Director has determined that the development regulations for CD-3 will apply to this site and said development regulations are confirmed in the Development Agreement. CONSULTANT'S RECOMMENDATION: HNTB evaluated the proposals and recommended that the City should not sell its property to the developers at any of the sites but should instead negotiate leases wherein: . the guaranteed lease payments should be in the neighborhood of 10% of the market value of the City owned land based on the ultimate zoning of the property. . the term of the land leases should be in the average of 40 to 45 years in order to allow the developer to achieve a reasonable profit and the City retain control of its property. . the City should also obtain additional monthly payments based on gross revenues (profit sharing) generated by the overall development. . require the developer at each site to pay the City a lump sum amount for the estimated or actual losses in parking revenue during the time the site is inoperable for parking. APPRAISALS: The appraisals of the Public-Private Parking projects were completed on March 19,1999, by J. B. Alhale & Associates Inc., and are based on the highest and best use of the property as of March 15, 1999. July 7, 1999 Commission Memorandum Page 4 Site 1: Michigan Site 2: Site 3: Site 4: Washington & 17" Sl. Lenox & 17" St. Collins & 10" St. & 16" St. Appraised Value: $5,070,000 $2,800,000 $2,600,000 $3,900,000 Highest & Best Use @ 3/15/99 Proposed Less than highest TBD Less than highest Site has limitations Development: and best use and best use affecting ability to develop the highest and best use without additional land. As reported on April 28, 1999, staff prepared a projected project cashflow analysis in order to reconcile the fair market value and the annual rent payable to the City, based upon the proposed value in use. ANALYSIS: Based on the consultant recommendations and based on the appraisals submitted, the Administration has conducted negotiations for three (3) of the four (4) projects, as prioritized by the City Commission. (Negotiations for Site 2 will commence upon completion of negotiations with the proposers on Site 1, Site 3, and Site 4, ifso directed by the City Commission.) The recommended negotiated terms of the proposed project are delineated below. Additional tenns negotiated since the first public hearing held on May 26, are in bold for your easy reference. TERMS: Lincoln Plaza Partners. Michigan/Jefferson & 17th St. Owner: City of Miami Beach Developer/Tenant: Lincoln Plaza Partners LLC Principals: 49% - Scott Robins 49% - R. Donahue Peebles 2% - Michael Milberg Project Description: 711 space garage 34,510 sfretail 106,000 sf office Project Cost: $30,644,340 Funded Equity: $7,661,085 July 7, 1999 Commission Memorandum Page 5 Lease Term: Commencement Date: Fee upon Execution: Construction/Permitting: Preliminary Plans and Spees: DRBIHP Application: Building Permit: Construction Completion: Possession Date: Security Deposit: Rent during Possession Date thru Construction Period: Base Rent at Delay Date: Delay Date: CO Date: Base Rent Adjustments: 50 years with 2, 20-year extension options Agreement execution date. $50,000 (This fee re-coups the City's out of pocket costs and represents the up-front fee while the developer obtains permits and approvals prior to possession date. City continues to operate surface parking lots during this period.) Subject to unavoidable delays. No later than 24 weeks from commencement date. No later than 8 weeks from approval of preliminary plans and spees approvals. No later than 32 weeks from DRBIHP approval No later than 2 years from Possession date One year from commencement date. Private land is deeded to City at this time with a reverter in the event construction does not commence. Upon possession, one year of base rent will be provided as security deposit until CO date. $175,OOO/annua1ly (This fee represents the City's projected loss ofrevenue on the site. We are requiring developers to compensate City for this loss during construction, estimated to last 2 years from possession date.) $250,000 for lease years 1-5 increasing to $300,000 for lease years 6-10. Earlier of CO Date or 2 years from possession date, not subject to unavoidable delays. (On this date, Base Rent commences whether or not construction is completed.) Earlier of date upon which TCO/CO is obtained or 2 years from possession date, subject to unavoidable delays. Base rent will be adjusted at the end of the 10th lease year and every 5th lease year thereafter, based upon the lesser of 12% or the cumulative CPI over the previous 5 year period. July 7. /999 Commission Memorandum Page 6 Percentage Rent: (as a percentage of gross revenues): Re-appraisals: Real Estate Taxes: Parking Rates: Subordination: Prohibited Uses: Condominium: At the earlier of (i) a sale of the project or (ii) beginning in Year 9, and every Lease Year thereafter, percentage rent of 2.5% of gross revenues will be calculated in addition to base rent. Only in Lease Year 9, percentage rent will be payable, in equal installments over ten years, in Lease Years II through Lease Year 20. Beginning in Lease Year 10, and every year thereafter, percentage rent will be due and payable at the end of each year, i.e. 2.5% of gross revenues, payable in the first sixty (60) days of II.h Lease Year and every year thereafter. If developer exercises extension options, the land will be re- appraised, based upon the terms set forth in the Lease Agreement, to determine the new base rent based upon the value in use in the 49th year and 69th year. The Base Rent will never be less than the prior year's base rent. Included and defined as Additional Rent in the event taxes are abated, waived or exempted. If taxes are reduced as a result of decline in property values in the area, this provision will not apply. Garage parking rates shall not be less than the City/Agency rates or more than comparable garage parking rates charged in Miami-Dade County. Standard rates will apply during special events and may not be increased. City agrees to subordinate percentage rent to debt service payments on first mortgage, but not base rent. If a foreclosure occurs, to the extent cashftow is not available, percentage rent will cease until transferee has five years to stabilize operations. . unlawful/illegal businesses or any use which is public nuisance tatoo parlors, psychics, palm and tarot card readers, body piercing shops or gambling casino for any use involving ownership structure such as time share, cooperative, etc. . . Developer may create a condominium with a maximum of 3 units, consisting of an office unit, a retail unit and garage unit, subject to the City's review and approval of the Condominium Declaration and subject to there being no legal or economic consequence to the City. July 7, J 999 Commission Memorandum Page 7 Sale/Refinancing: Developer has the right to sell project, subject to certain criteria (i.e. purchaser must have a minimum of $20 million in equity, track record, no litigation with City, etc.), Right of First Refusal: CitylDeveloper has the right of first refusal to purchase other's interest in the Premises. Environmental Matters: Property is leased "as is" and developer is responsible for remediation Financial Return to the City: The financial return to the City consists of rent (base rent, percentage rent and additional rent), real estate taxes (the property is currently tax exempt) and additional private land that will revert to the City at the termination of the lease. Additionally, the project will provide approximately 449 net new parking spaces in the area and will provide new Class "A" office space, for which there is a demand, that will attract private corporations to anchor and revitalize the city center. Such investment serves as a catalyst and perpetuates a strong economic impact for our community. &n1; The negotiated terms represent a fair market return on the appraised value of the land in the form of base rent and percentage rent. In addition, to the $50,000 fee upon execution of the Agreement and the rent of $ 1 75,000/year during construction, base rent in the amount of $250,000/year will be due and payable two years after possession. The base rent escalates to $300,000/year at the end of the 5th lease year, thereafter, escalations to base rent occur every 5 years. The total base rent payments over the first 25 years, total $8.4 million. Percentage Rent commences at the earlier of a sale of the project or during the 9th lease year and is estimated to total $2.6 million over the 25 year term. The terms provide a return to the City that would enable the Developer to stabilize the project and allow the City to begin to participate in a percentage (2.5%) of gross revenues, during the 9th Lease Year. Based upon a 25 year operating proforma for the project, the aggregate City return over the first 25 year period totals $11.4 million. The Developer's aggregate return during this same period, totals $50 million. (Note: This return is calculated over 25 years and not over the 90 year lease term.) The Lease Agreement further provides that any abatement or waiver of real estate taxes will be paid as "Additional Rent" to the City in the event that tax exemptions are granted for the land and improvements. The land is currently tax exempt but non-public uses on municipal land are subject to ad valorem taxes pursuant to State Statute. This Agreement provides that any change in law would require the Developer to pay an amount equal to the City and County taxes in the form of Additional Rent. Real Estate Taxes Additionally, the City will benefit from the projected annual real estate taxes that will be paid to the City. It is projected that of an estimated total project hard cost of$19,628,850, the estimated total initial tax bill will be $531,549. Of this amount, $147,196 will represent the City's aIinual tax share ." July 7, 1999 Commission Memorandum Page 8 and $112,213 will represent the County's annual increment payable to the Redevelopment Trust Fund, as a result of the property's location in the City Center Redevelopment District. In FY 2023 the City will no longer benefit from the County increment due to the expiration of the term of the Redevelopment District. Tax payments to the City over the first 25 year period are estimated to total $7 million, inclusive of the County increment. Land Contribution The Developer is also contributing approximately 14,000 sf of additional land to the aggregate project. This land will be deeded to the City upon possession date and will become part of the premises that revert to the City upon termination of the Lease Agreement. (See Exhibit 2) Sale. Assignment. Transfer & Subletting The Lease Agreement provides that City consent will be required in the event of a sale, assignment, transfer or sublease to a "Permitted Buyer," if the Permitted Buyer does not meet certain criteria. The Permitted Buyer is a real estate investor, pension fund or developer and the criteria set forth in the Lease Agreement consists of the following: . Must meet minimum equity requirement of$20 million . Must not be owned by a foreign instrumentality . Has not been in litigation with the City over the past 7 years . Cannot be owned by an individual who has been convicted or is under indictment for felonies . Has not filed for bankruptcy during the past 7 years . Must have a minimum of 5 years operating history . Must not be an advocate or have as its stated purpose: resistance against the U. S. Government; or genocide, violence, hatred or animosity toward persons based on race, religion, creed, sexual orientation or national origin. RECOMMENDATION: Please note that the attached Development Agreement and Lease have been "redIined" to show changes from the documents presented at the May 26th meeting of the City Commission in order to expedite your review. Deleted material is indicated by a strike-through, and inserted text is indicated by double underlining. A "clean" copy of the documents has been provided to the City Clerk for inclusion in the official records of the City. It is recommended that the Mayor and City Commission approve the Development Agreement and Lease Agreement and adopt the resolution attached hereto. SR/~rrar T:\AGENDA \1999\JUL0799\REGUl.AR\R08[NS.CM .. Semirldle Form UCC-l UNIf=ORM COMMERCIAL CODE STATE OF FLORIDA FINANCING STATEMENT 1. EI# Street tor or ra e me at Beach, 1<1. Ip e 33139 c. Ity, tate d. Ip e Beach, Florida c. p 33139 Ingress 4c. P e See Exhibit "A" attached hereto and made a part hereof. See Schedule to Financing Statement attached hereto and made a part hereof. . " , 6. Check only K Appllceble: !Xl _ucts of conslerslare also covered. ~ Proceeds of conatarslare also covered. a Debtor is trsn!lllll1llng utility. 7. Check appropriate box: a An documentary stamp taxes due and payable or 10 become due and payable pursuant 10 s. 201.22 F.S., have been paid. (One box musl be marked) m Florida Documenta Stam Tax Is not ulred. 8. In accordance with s. 671l.402(2), F.S., this stalementis flied wnhout the Debto(s signature 9. Number of additional sheets prasented: 2 to perfecta security Intarestln conatersl: o alreedy subject to a security Interest In another Jurisdiction when It was brought Into this This Space for Use of Filing Officer state or debtor'slocetlon changed to this state. a which Is proceeds of the original collatorsl described above In which a security Interest was perfected. a as to which tha filing has lapsed. Dele flied end previous UCc-1 ftle number . o acquired after e change of name, identity, or corporste structure of the debtor. em er Mayor Name I 700 Address Address City,State,Zip L ~ !:;TANDARD FORM. FORM UCC.1 Approved by Secretary of State. State of Florida SCHEDULE TO FINANCING STATEMENT 1. Building Equipment described as follows: all installations incorporated in, located at or attached to and used or usable in the operation of, or in cOIUlection with, the Premises and shall include, but shall not be limited to, machinery, apparatus, devices, motors, engines, dynamos, compressors, pumps, boilers and burners, heating, lighting, plumbing, ventilating, air cooling and air conditioning equipment; chutes, ducts, pipes, tanks, fittings, conduits and wiring; incinerating equipment; elevators, escalators and hoists; washroom, toilet and lavatory plumbing equipment; window washing hoists and equipment; and all additions or replacements thereof, excluding, however, any property which is owned by subtenants, licensees, concessionaires or contractors (except to the extent any of the foregoing are Affiliates of Debtor) and excluding furniture, fixtures and equipment used in the operation, management and maintenance of the Premises. -, , 2. Reserve Account described as follows: that specific account designated as the "Reserve Account" as more fully described in that certain Agreement of Lease described hereinbelow. 3. All Products and Proceeds from items 1 and 2. Any reference to the Premises means the Land described on Exhibit A attached hereto and made a part hereof and the Improvements thereon which include a Garage, office building and retail space to be constructed on the Land in accordance with that certain Agreement of Lease between the City of Miami Beach, Florida and Lincoln Plaza Partners LLC and any buildings (including footings and foundations) and other improvements, appurtenances of every kind and description now existing or hereafter erected, constructed, or placed upon the Land (whether temporary or permanent), and any and all alterations and replacements thereof, additions thereto and substitutions therefor. F:\MINSKER\C.M.B\Michipn-UtICl)ln P1aza\Sehtdule to UCC-I Finance.wpd -, , EXlUBIT "A" LEGAL DESCRIPTION PARCEL 1 Lots 7 through 10, and Lots 16 through 20, Block 37, PALM VIEW SUBDIVISION, as recorded in Plat Book 6, Page 29 of the Public Records of Miami-Dade County, Florida. ::.ellllIl01e l"onn UCC-I UNIFORM COMMERCIAL CODE STATE OF' FLORIDA FINANCING STATEMENT " 1. II 1. Beach, Florida . ateo rt or Beach, Florida 4a. ng .... rlpUon 0 real property on whlc ocat a owner 0 reco n See Exhibit "A" attached hereto and made a part hereof. See Schedule to Financing Statement attached hereto and made a part hereof. 6. Check only If Applicable: lEI Products of collateral are also covered. ~ Proceeds of collsteralara also covered. 0 Debtor Is transmmlng utility. 7. Check appropriate box: 0 All documentary stamp taxes due and payable or to become due and payable pursuant to s. 201.22 F.S., have been paid. (One box mull be marlted) III Rorlda Documenta Stam Tax Is not ulred. B. In accordance with s. 679.402(2), F.S., this statement Is flied without the Debtor's signature 9. Number of additional sheets presented: 2 to par1ect a security In_In collateral: o alreedy subject to a security Interest In another Jurisdiction when II was brought Into this This Space for Use of Filing Officer state or debto(s location changed to this state. o whlcflls proceeds of the original collateral described above In which a security Interest was par1ected. o ..to which the flllng has lapsed. Date flied and previous UCC-1 flle number . o acquired _ a chenge of name,ldentlty, or corporate structure of the debtor. er Mayor Name I 700 Address Address City,State,Zip L -.J FILING OFFICER COpy STANDARD FORM - FORM UCC-1 Approved by SecteIary 01 State. State 01 florlc ., SCHEDULE TO FINANCING STATEMENT 1. Building Equipment described as follows: all installations incorporated in, located at or attached to and used or usable in the operation of, or in connection with, the Premises and shall include, but shall not be limited to, machinery, apparatus, devices, motors, engines, dynamos, compressors, pwnps, boilers and burners, heating, lighting, plwnbing, ventilating, air cooling and air conditioning equipment; chutes, ducts, pipes, tanks, fittings, conduits and wiring; incinerating equipment; elevators, escalators and hoists; washroom, toilet and lavatory plwnbing equipment; window washing hoists and equipment; and all additions or replacements thereof, excluding, however, any property which is owned by subtenants, licensees, concessionaires or contractors (except to the extent any of the foregoing are Affiliates of Debtor) and excluding furniture, fixtures and equipment used in the operation, management and maintenance of the Premises. 2. Resen'e Account described as follows: , that specific account designated as the "Reserve Account" as more fully described in that certain Agreement of Lease described hereinbelow. 3. All Products and Proceeds from items 1 and 2. Any reference to the Premises means the Land described on Exhibit A attached hereto and made a . part hereof and the Improvements thereon which include a Garage, office building and retail space to be constructed on the Land in accordance with that certain Agreement of Lease between the City of Miami Beach, Florida and Lincoln Plaza Partners LLC and any buildings (including footings and foundations) and other improvements, appurtenances of every kind and description now existing or hereafter erected, constructed, or placed upon the Land (whether temporary or permanent), and any and all alterations and replacements thereof, additions thereto and substitutions therefor. F:\MINSKER\C.M,B\MichiSIn.Linoolll Plaza\Sclledule to UCC.l FiIllrlCe.wpd <. EXHIBIT "A" LEGAL DESCRIPTION PARCEL 1 Lots 7 through 10, and Lots 16 through 20, Block 37, PALM VIEW SUBDIVISION, as recorded in Plat Book 6, Page 29 of the Public Records of Miami-Dade County, Florida.