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8/15/2019 03) Hotel Development Agreement
1/81
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8/15/2019 03) Hotel Development Agreement
2/81
TABLE
OF CONTENTS
Page
TERMS
OF
AGREEMENT ....................................................
2
ARTCLE
1
DEFINITIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2
RTICLE
2O N S T R U C T I O N . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
9
e c t i o n2
onditions
P r e c e d e n tto
D e v e l o p e r '
s
C o m m e n c e m e n t
o
o n s t r u c t i o n
o
he
PQect. . . . . . . . . . . . . . .
S~
ction
2
2
o m m e n c e m e n t
and
o m p l e t i o n
of
C o n s t r u c t i o n
o
the
rojec t. . . . . . .1
Section
23
C O l l l P l e t i o n o
onstruction
ohe
Poect. . . . .
11
A R T I C L E3
P L A N S
AND
P E C I F I C A T I O N S . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
12e c t i o n
3
1
p,
r o v a l
and
o d i f i c a t i o n
ofPrelimin~
lans a n d
S p e c i f i c a t i o n s . . . .
12
Section
3
Ap
rova
and
M o d i f ic a t i o n
o
l a n s and
S p e c i f ic a t i o n s . . . . . . . . . . . . .
3
Section
3
3
ipt
o
Develqper
to
r o c e e d w i t h
D~
e d
C h a n i e s . . . . . . . . . . .
5
S e c t i o n
3
C O l l l P l i a n c e
wth
R e q u i r e m e n t s :
Construction
Standards. ...........
15e c t i o n
3
Bud~eand
Chan~
e
r d e r s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
16
e c t i o n
3
6
e s i p and
Decor. ..........................................
1
econ
3
e v e l q p m e n t
D$
ute . .......................................
17
ection
3
8
e v e l o .pe
s
ee
and
E
es. ................................
7
ARTICLE
4
~
t P A R T I C I P A T I O N . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
18
e c t i o n
4.1wner'sih
tose
Fed
e r s o n n e l . . . . . . . . . . . . . . . . . . . . . . . . . . .
1 8
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TABLE
OF
CONTENTS
continued)
Page
ARTICLE
6
I N A N C I N G
OF
ROJECT
C O N S T R U C T I O N
AND
ISBURSEMENT
P R O C E D U R E S . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5
e c t i o n
6.1
Owner'
s
o n 1 r i b u t i o n s . . . . . . . . . .. . . . . . . . .. . . . . . . . .. . . . . . . . .. . 2 5 S e c t i o n
6
2
DevelQper'
s
C o n 1 r i b u t i o n s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
26
Section
6
3
E =. . . . . . .
ection6
E~
te d
P r o c e s s i n a . . . . . .. . . . . .. . . . .. . . . . .. . . . . .. . . . . .. . . .
26
R T I c L E
7
N S U R A N C E . . . . . . . . .. . . . . . . . . . . . . . . . . . . .. . . . . . . . .. . . . . . . . . . .. . . . . . . .7
R T I C L E
8
DAMAGE,
DESTRUCTION
AND
R E S T O R A T I O N . . . . . . . . . . . . . . . . . . . . . . . .
27
Section
8
1
a s u a l t y . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7
e ~
on
8
2
f f e c t
o
asuaty
on
ths
A~
en. . . . . . . . . . . . . . . . . . . . . . . . . . . .
7
A R T I C L E
9
O N D E M N ATION ............................................
27
S e c t i o n
9
Takna . . . . . . . . . . . . . . . . . . . . .
7
ection
9.2f f e c to f T a k i n i
on
this
A~
ent. ............................
8
A R T I C L E
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TABLE
OFCONTENTS
continued)
Page
Section
12
1
a i n t e q a n c e
ofPrQject
Ste ..................................9
S e c t i o n
12
2
aste
D~
sa1 ............................................
30
R T I C L E
13
R E Q U I R E M E N T S . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
0e c t i o n13
1
e q J I i r e m e n t s . . . .. . . . . . . . .. . . . . . . .. . . . . . . .. . . . . . . . .. . . . . . . .
0
A R T I C L E
14
I S C H A R G E
OF
I E N S . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .31e c t i o n
141
reation
o
Lie ns. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1
ection14
2ischarKeo
Lens. .........................................
3
Section
14
3
N
Authority
to
Contract
in
Name
o
w n e r . . . . . . . . . . . . . . . . . . .. . .
33
R T I C L E
15.
NO
LIABILITY
FO R
INJURY
ORAMAGE,
ETC .......................
3
ARTCLE
16
N D E M N m C A T I O N . . . . . . .. . . .. . . .. . . .. . . .. . . .. . . .. . . .. . . .. . . .. . . .. . .
3 Section
16
1
n d e m n i f i c a t i o n
Generally. ...................................
33
S e c t i o n
16.
2overns
Apement. ........................................
33
e c t i o n
163
urvival..................... . . . . . . . . . . . . . . . . .
3 A R T I C L E
17
C E R T I F I C A T E S
BY
WNER
A ND
DEVELOPER .........................
34
A R T I C L E18IGHT
TO
E R F O R M
THE
T H E R
P A R T Y '
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OF
CONTENTS
continued)
Page
ARTICLE
19
V E N T SOF
EFAULT
C O N D m O N A L
L~T l O N S ,
IUE~
EES ,
ETC ....................... .... ...........
5
Section
19
Deintion................................................
35
e c t i o n
19.
2
n f o r c e m e n t oe r f o r m a n c e . . . . . . .. . . . . .. . . . . .. . . . . .. . . . . .. . .
38
Section
19
3
Jj)
ira
tion
and
e n n i n a t i o n
o
a r e e m e n t . . . . . . . . . . . . . . . . . . . . . . . .
38
ection
19
4
Strict
Perfonnance. .........................................
38
ection
19
5
i a h t t o E q j o i n D e f a u l t s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
39e c t i o n
19
6~
medies
unde
Bankruptcy
and
n s o l v e n c y
Codes. . . . . . . . . . . . . . . . .
39
ection
19. ~
on..............................
39
RTICLE
20
NOTlCES,
C O N S E N T S
AND P P R O V A L S . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . .
40
ection
20
1
Servce
o
o t i c e s
andOhero m m u n i c a t i o n s . . . . . . . .. . . . . .. . . . . .
40
e c t i o n 2 0 .
2
Consents
and
A p p r o v a l s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . , . . . . . . . .
42
Secton
2
3
otice
o
D e t a i l e d P l a n s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4
ARTICLE
21 .
F I N A N C I A L
R E P O R T S AN DE C O R D S . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4
S e c t i o n21
1 B o o k s
and
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OF CONTENTS
continued)
Page
ARTICLE
25
AZARDOUS
M A T E R I A L S . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8
ection
25
1
General
Provson ..........................................
48Section
25
2
urvival............ . . . . . . . . . . . . . . . . . . . . . . . . . . .
8
ARTICLE
26
M I S C E L L A N E O U S . . . . . . . . .. . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . .. . . . .
48
Section
26.
1
ovemin~
a w and
xclusive
Venue. ..........................
48ecion
26
2
e f e r e n c e s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .48
S e c t i o n
26 .
3
ntire A a r e e m e n t .
etc. ...... . . . . . . . . . . . . . . . . . . 9
Section
264
n v a l i d i t y
o
e r t a i n P r o v i s i o n s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
50
Secon
26
5
e m e d i e s
Cumulative. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
0
S e c t i o n 2 6 .
6
e r f o r m a n c e atEach
Party
s
Sole
Cos
and
E J Q > D S e . . . . . . . . . . . . . . . .
50
Section
26
ecoiJUzed
Morti~
ee
C h a r l l e s
and
Fees. .......................
0
Section
268
I n t e n t i o n a l l y
D e l e t e d . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
0
SeC~
on
26
9uccessors
a n d Assp . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
51 Sect ion
26.10otice
ofD e f a u l t s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1
e c t i o n
26 .
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continued)
Page
EXHIBITS
Exhibit
A
LAND...............................................................
55
Exhb
2
100
C O M P L E T I O N
GUARANTEE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6xhibit
3
a _
P R E L I M I N A R Y
PLANS
AND
SPECIFICA
n O N S . . . . . . . . . . . . . . . . . .. . . . . . .
66
x h i b i t
3
soo
EV ELO PMENT
BUDGET ............................................
68
Exhibit
3
8
). -
EVELOPER'
S
FEE
D I S B U R S E M E N T
A N A L Y S I S . . . . . . . . . . . . . . . . . . . . . . .
69
x h i b i t3
00
M I L E S T O N E . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
0
x h i b i t
5
~
N S U R A N C E R E Q U I R E D
OF
O N T R A C T O R . . . . . . . . . . . . . . . . . . . . . . . . . . . .
71
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HOTEL DEVELOP~
NT
AGREEMENT
THIS
HOTEL
DEVELOPMENT
AGREEMENT ("
Agreemenf')
s entered into
as
ofthe
d ay
of ,
1 9 9 8 (
he
o m m e n c e m e n t
D a t e " )
by
ande t w e e n
the
MIAMI
BEACH
E D E V E L O P M E N T
AGENCY ("
w n e r " )
and
RDP
OYAL
PALM
HOTEL
L I M I T E D
P
R 1 N E R S I D P , a
Florida
limited
pa rtnership ("
Developer").
RECITALS:
A.
In
February
1 9 9 3 ,
the
C i t y
C e n t e r /
Hsoric
o n v e n t i o n Vllage
e d e v e l o p m e n t
and
e v i t a l i z a t i o n
Area
was
officially
e s t a b l i s h e d
by
the
d o p t i o n
of
a
e d e v e l o p m e n t Plan.
The
e d e v e l o p m e n t
Panwas
the
e s u l t
of
the
o m b i n e d
e f f o r t sof
the
C i t yo
iami B e a c h (
the "
Cty"),
Owner,
e t r o p o l i t a n
Dade
C o u n t y
and the
t a t eo
l o r i d a .
The
e d e v e l o p m e n t
Pan
e p r e s e n t s
the
e f f o r t a n d c o m m i 1 m e n t
of
Owner
andthe
City
to
foster
the
deve lopment
ofconvention
qual i ty
hotels,
ancillary
improvements
and
facilities,
and
necessary l inkages
to
the
Miami
Beach
Convention
Center
the " Convention
Center'').
Pursuant
to
the
Redeve lopment
Plan,
Owner
has
acquired
the
propert ies
commonly
known
as
the
Roya l
Palm
Hotel
which
has
astreet
address of
1535
Collins
Avenue,
Miami
Beach,
l o r i d a andthe
h o r e c r e s t
Hotel w h i c h
h a s
a
treet
a d d r e s s o
1545
Collins
Avenue,
Miami
Beach,
l o r i d a ,
both
o
h i c h
Owner
h a s
agreed
to
ak e
a v a i l a b l efo
a
o n v e n t i o n
center
hotel
which
will
s e r v e
as
aa rt
o
he
R e d e v e l o p m e n t
Plan.
B .
heCty
and Owner
aso
a v e
d e t e r m i n e d
to
make
a
u b s t a n t i a l
c o m m i t m e n t
to
provide
he
frican-
m e r ic a n c o m m u n i t y
wth
n
o p p o r t u n i t y
in
he
o s p i t a l i t y
industry.
In
o n n e c t i o n w i t h t h a t
com
mi1ment,
w n e r
has
g r e e dto
ake
v a i l a b l e
the
oyal Palm
Hotel
and
the
h o r e c r e s t
Hoteland
dditional
financial
i n c e n t i v e s
for
an
rican
merican
owned
h o t e l . C.
In
u r t h e r a n c e
of
the
e d e v e l o p m e n t
Plan
and
the
o m m i t m e n t
to
the
Arican
American
community
r e f e r r e d
to
in
the
receding
p a r a g r a p h ,
the
gency
published
R e q u e s t
for
roposals
N u m b e r
45-
9596(
the "
RFP,
nitled "
Cty
CenterlHistoric
C o n v e n t i o n
V i l l a g e e e v e l o p m e n t
ande v i t a 1 i 7 a t i o n
Aea
Arican
m e r i c a n
Hoe
Development
O p p o r t u n i t y " ,
daed
D e c e m b e r
27
99 5
and
amended
onanuary
2
996,
January
39 9 6
and
March
5
1996
h e
R F P
sough
bds
for
the
d e v e l o p m e n t
and
operation
o
a
c o n v e n t i o n
center
hotel
o w n e d
by
frican-
American
Persons.
D
n
June
5
1996
fter
a
u b l i c
review p r o c e s s ,
Owne
selected
an
f f i l i a t e
of
D e v e l o p e r
from
among
the
r o u p s
tha
u b m i t t e d
proposals
p u r s u a n t
to
he
RFP
and
i r e c t e d
r e p r e s e n t a t i v e s
o
wner
to
egotiate
the
terms
u n d e r
whch
eveloper
o
its
f f i l i a t e
would
d e v e l o p ,
own
an d operate
the
o n v e n t i o n
c e n t e r
hoe
e f e r r e d
to
above(
he "
o t e l " ,
as
f u r t h e r
d e f i n e d below)
in
c c o r d a n c e with
he
r e q u i r e m e n t s
of
-
8/15/2019 03) Hotel Development Agreement
9/81
E.
Owner
and Affiliates
of
D ev e l ope r
entered
into
a
Letter
of
Intent (
the "
Letter
of
Intenf'),
ated
March
5
1997,
n d
a p p r o v e d
by
the
Cty,
hich,
among
other
t h i n g s ,
p r o v i d e s
fo
the
e v e l o p m e n t ,
o n s t r u c t i o n ,
furnishing
a n d
e q u i p p i n go
th e
Hotel.
F
wner
ande v e l o p e r
e n t e r e d
ino
tha
e r t a i n
A g r e e m e n t
of
Lease(
the"
Ground
L e a s e " )between
the
O w n e r
and
he
D e v e l o p e r
a n d
datedo
even
d a t e
herewith.
G
Owner
and
e v e l o p e r
desire
to
n t e rino
a
e f i n i t i v e
a g r e e m e n t
fo
the
e v e l o p m e n t ,
c o n s t r u c t i o n ,
furnishing
a n d e q u i p p i n g
o
h e Hoe
inc c o r d a n c e
wth
his
A g r e e m e n t
and
he
s t a n d a r d s
set
forth
in
he
pans
and
p e c i f i c a t i o n s
d e s c r i b e d
in
ths
g r e e m e n t .
TERMS
OF
GREEMENT:
N O W ,
T H E R E F O R E ,
it
s
ereby
u t u a l l y
c o v e n a n t e d
a n d
a g r e e dby
nd
b e t w e e n
th e p a r t i e s
h~
tha
h is
A g r e e m e n t
is
a d e
upon
the
erms,
covenants
and
o n d i t i o n s
h e r e i n a f t e r
se
foth
A R T I C L E
1
D E F I N I T I O N S
For al
purposes
ofths
g r e e m e n t
th e t e r m s
defined
inhis
A r t i c l e
1
hal
have
the
f o l lo w i n g
meanings
a n d
theoher
p r o v i s i o n s
o
ths
rticle
1
hall
a p p l y :
A c c o u n t i n g
Principles"
h a l l have
theeaning
provided
in
the
round
Lease.
AfIiliate
or "
A f f i l i a t e s "
means,
with
respect
to
ny
Person,
an y
oher
Person
that, i r e c t l yo
ndrectly,
hrough
one ormore
n t e r m e d i a r i e s ,
c o n t r o l s or
is
ontrolled
by
r
is
nder
c o m m o n
control
wth
u c h
Person. For
purposes
h e r e o f ,theterm"
c o n t r o l " (
i n c l u d i n g
the
terms "
ontrolled
by"
and "
under
c o m m o n
control
w i t h " )
h a l l
mean
the
p o s s e s s i o n
of
a
ontrolling
Interest.
U n l e s s
the
o n t e x t
otherwise
r e q u i r e s , any
reference
to"
f f i l i a t e "
in
his A g r e e m e n t
s h a l l
be deemed
to
reer
to
an
f f i l i a t eo
e v e l o p e r .
Agency"
eans
the
am
Beach
edeve lopment
A g e n c y .
A r c h i t e c t
means
A r q u i t e c t o n i c a
I n t e r n a t i o n a l
Corp,
a
l o r i d a
c o I p O r a t io n .
Building
E q u i p m e n t
has
the
eaning
provided
in
he
Ground
L e a s e .
Business
D a y "
or "
u s i n e s s
day"
means
a
ay o t h e r
than
S a t u r d a y ,
Sunday
o
a
a y on which
b a n k i n g
institutions
in
the
t a t e
o
l o r i d a
are
a u t h o r i z e d
o
o b l i g a t e d
by
lawo
e x e c u t i v e
order
to
be
closed.A\NM
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H T L D E V
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10/81
City"
means
City
ofMiami Beach,
a
municipal
corporation
of
the
State
ofFlorida.
Commence
Construction"
or " Commencement
of
Construction" means the
commencement
ofmajor
work (
such as
pil ings
orfoundations)
for
construction
of
the
Improvements
in
accordance
wththe
Plans
and
Specifications
to
be
performed
in
connectionwth
Construction
of
the
Project.
Promptly
after Commencement
of
Construction,
he Owner and
Deve loper
shall
enter
into an
agreement
acknowledging
the
date of Commencement
of
Construction.
Any
and
all
prel iminary
site
work (
including,
without
limitation,
any
environmental remediation
and
ancillary
demolition)
shall not
be
deemed
tobe
Commencement
of
Construction.
Commencement Date"
has
the
meaning
provided
inthe
preamble
ofthis
Agreement.
Completion
Deadline"
means
the date which
is
forty-
two (
42o n t h s
after
theonstruction
C o m m e n c e m e n t
Date,
u b j e c t
to
x t e n s i o n
d u e
to
n a v o i d a b l e
Delays.
Completion
G u a r a n t e e "
has
the
eaning
p r o v i d e d
in
e c t i o n
2 d.
o n n e c t i o n
Fees"
has
h e
m e a n i n g
provided
in
thee c t i o n
63(
b.
o n s e n t i n g
P a r t y "
has
th e
meanng
r o v i d e d
in
e c t i o n
20.
2
c.o n s t r u c t i o n "
oo n s t r u c t i o n
o
ther o j e c t "
m e a n s
the
construction
on
he
Land
o
he
Project.
Construction A g r e e m e n t (
s
means,o l l e c t i v e l y ,
any
eneral contractor'
s
a g r e e m e n t ,
a r c h i t e c t '
g r e e m e n t ,
e n g i n e e r s '
a g r e e m e n t s ,
or
any
other
g r e e m e n t s
for
ther o v i s i o n
o
labor,
a t e r i a l s
or
suppiesn t e r e d
into
wth
e s p e c t to
the
C o n s t r u c t i o n
of
the
r o j e c t ,
as
heame
may
be
a m e n d e d
otherwse
o d i f i e d from time
to
ime
o n s t r u c t i o n
C o m m e n c e m e n t
Dae
as
the
m e a n i n g
provided
in
Section
2
2
o n s t r u c t i o n
W o r k . "
e a n s
any
o n s t r u c t i o n
w o r k
p e r f o r m e d under
any
r o v i s i o n
o
his
A g r e e m e n t
and
r
the
C o n s t r u c t i o n
Agreements
wth
e s p e c t
to
he C o n s t r u c t i o n
o
ther o j e c t .
C o n t i n g e n c y "
meansthe
m o u n t
set
forth
as
ar d
and
soft c o n s t r u c t i o n c o s t s
in
the
D e v e l o p m e n t Budget
on
theae
h e r e o f
as
a
ine
item
a b e l e d " Contingency".
Contractor"
means an y
c o n t r a c t o r ,
s u b c o n t r a c t o r , supplier,
e n d o r or
materialman
s u p p l y i n g
s e r v i c e s
o
goods
inonnectionwith
the
o n s t r u c t i o n
o
he
P r o j e c t .
C o n t r o l l i n g
I n t e r e s t " m e a n s the
o w n e r s h i p
o
reater
t h a n
f i f t y
percent (
0 0 f c > > )
of
the
o t i n g
o w n e r s h i p
i n t e r e s t s
in
a
e r s o n
or
the
ownership
of
greater
t h a n
fifty
e r c e n t (
50%)
ohevotes
e c e s s a r y
to
eect
a
a j o r i t y
othe
B o a r d
o
D i r e c t o r sor
other o v e r n i n g
b o d y
of
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8/15/2019 03) Hotel Development Agreement
11/81
CPM"
as
the
meaning
prov ided
in
Semon
4.
2b.
PM S c h e d u l e "
bas
the
e a n i n g
provided
in
S e c t i o n
4.
2
b.
e f a u l t "
means
any condition
or
event,
oa i l u r e
o
n y
condition
o
even
to
occm,
hich
c o n s t i t u t e s ,
o
o u l d after
the
giving
ofnotice
an d
apseo
ime (
in
c c o r d a n c e
with
the
erms
ofthsg r e e m e n t )
constitute,
anvent
o
e f a u l t .
D e f a u l t
Date"
e a n s
the
ate
whichis
i n e t y -
sx(
96
months
ater
the C o m m e n c e m e n t
DaeDefault
N o t i c e " bas
th e
meaning
p r o v i d e d
in
Section19
b
e f i c i t
bas
the
e a n i n g p r o v id e d
in
ection
3.8
d).
Deficit
Increase"
bas the
meaning
provided
inSection
3.
8(
d.
etaled Plans"
bas
the
e a n i n g
provided
in
e c t i o n 42
a(
)(2
e v e l o p e r "
means
RDP
o y a l Palm
H o t e l
L i m i te d
P a r t n e r s h i p ,
a
l o r i d a
limited p a r t n e r s h i p ,
its
u c c e s s o r s
and
a s s i g n s .
Developer'
s
e e "
has
th e
meaning
provided
ine c t i o n
3
8
).e v e l o p m e n t
Budge"
as the
m e a n i n g
prov idedin
e c t i o n
(
a.e v e l o p m e n t Dispute"
has
the
meaning prov ided
inSection
3
7
evelopment
Fee"
bas
the
eaning
p r o v i d e d
in
e c t i o n
3
8
.v e n t
oefault"
a s
the
m e a n in g
p r o v i d e d
in
Section
19
Excess
W i t h h e l d
A m o u n t " b a s
the
m e a n i n g
prov ided
in
e m o n 3
8
d.
Existing
H o t e l s "
bas
the
meaning
prov ided
in S e c t i o n5
1
Fees"
bas
the m e a n i n g
prov ided
in
e m o n
6
.
FF &
E
asthe
eaning
p r o v i d e din
he
G r o u n d
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8/15/2019 03) Hotel Development Agreement
12/81
Garage
Easement
Agreement"
has
the
meaning
provided
inthe Ground
Lease.
Genera
Contractor"
means the
general
contractor
under
that
certain
guaranteed
maximum
price
contract
for
the Construction
of
the
Project
entered
into
by Developer
and such
general
contractor.
Governmenta
Authority
orAuthorities"
means
the
United States
of
America,
he
State
of
Florida,
he
City,
Metropol i tan
Dade
County,
the
Agency (
in its
governmental
as
opposed
to
propr ietary
capacity)
and
any agency,
depar tment ,
commission,
board,
bureau,
nstrumentality
or
political
subdivision (
including
any county
or
district)
of
any
of
the
foregoing,
now
existing
or
hereafter
created,
having
jurisdiction
over
Deve loper
or
any
owner,
enantorother
occupant
of,
or
over
or
under the
Project
Site
or
any
portion
thereof
or
any
street,
road,
avenue
or
sidewalk
comprising
a
part
of,
orinfront
of, he
Project
Site,
or
any
vault inor
under
the
Project
Site,
or
airspace
over
the
Project
Site.
Ground
Lease"
means,
that certain
Agreement
of
Lease
between
Owner and
Deve loper
dated
as of
the
date
hereof,
pursuant
to
which
D eveloper (
as tenant)
has
agreed
to lease
the Land.
Guarantor"
means
R.
Donahue
Peebles,
individually.
Hearing"
has
the
meaning
provided
inSection
22 .
1(b).
H o t e l "
neans
a
o n v e n t i o n
center
h o t e l (
includingthe
uilding
E q u i p m e n t )
d e s c r i b e dinhe
Pans
nd -
p e c i f i c a t i o n s
and
t h e r I m p r o v e m e n t s
to
e
o n s t r u c t e d on
h e
Land
in
c c o r d a n c e
wthhe t e rm s
o
his A g r e e m e n t
and
he t e r m s
ohe
Ground
Lease (
t o g e t h e r
with
any
and
al
ermitted
i m p r o v e m e n t s
thereo
and
r e p l a c e m e n t s thereo).
otel
Construction
C o s t s " means
al hard
and
ot
construction
c o s t s
incurred
in
o n n e c t i o n
wth
hedevelopment
a n d
C o n s t r u c t i o n
o
he
Project
Theprojected
Hotel
C o n s t r u c t i o n C o s t s
are
as
et for th
in
he
e v e l o p m e n t
Budget,
t t a c h e d
hereo
n d
incorporated
by
e f e r e n c e
herein
as
Exhibit
3
5
).
otel
Development
Agreement" (
o
his "g r e e m e n t " )
means
ollectively,
his H o t e l
D e v e l o p m e n t
A g r e e m e n t
and
l
x h i b i t s
and
a t t a c h m e n t s
h e r e t o ,
as
any
o
the
same
may
hereafter
be
upplemented,
amended,
restated, s e v e r e d ,
consolidated,
extended,
revised
and
o t h e r w i s e
m o d i f ie d ,
from
t im e
to
ime,
i t h e r
inc c o r d a n c e
with
the
e r m s
of
ths
Agreement
or
by
mutual
a g r e e m e n t
o
he
p a r t i e s .
H o t e l
Opening
Dae"
a s the meaning
provided
in
h e
Ground
L e a s e .
I m p r o v e m e n t (
seans
any
buldng(
ncluding
footings
and f o u n d a t i o n s ) ,
B u i l d i n g
E q u i p m e n t ,
FF&
and
t h e r
i m p r o v e m e n t s
and
a p p u r t e n a n c e s
o
very
knd
nd
description
now
existing
or
h e r e a f t e r
erected,
c o n s t r u c t e d ,
o
laced
upon
he
L a n d {
whethert e m p o r a r y
o
A\
NM
CMB\
H l l D E V
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8/15/2019 03) Hotel Development Agreement
13/81
permanent),
and
any
and all
alterations
and
replacements
thereof,
additions
thereto and
substitutions
therefor.
Institutional
Lender"
has the
meaning
prov ided
in
the
Ground Lease.
Land"
means
thereal
property
described
in
Exhibit
A
attachedhereto and
incorporated
by
reference
herein.
Late
Charge
Rate"
has the
meaning prov ided
inthe Ground
Lease.
Letter
ofIntent"
has
the
meaning
prov ided
inRecita
E
hereof.
Loan
Documents"
means,
collectively,
any
loan
agreement,
promissory
note,
mortgage,
guaranty
or
other
document
evidencing
or
securing
a loan secured
by,
among
other
collateral,
Develo~'
s
interest
in
the
Ground
Lease
or
the
Hotel.
Mortgage"
has
the
meaning
provided
in
Section
11.
2(b)o
he
Ground
Lease
o r t g a g e e "
means
the
h o l d e r
o
a
o r t g a g e .
N o t i c e "
has
the
e a n i n g
provided
in
ection
20.
1
perating Equipment"
a s
the
meaning provided
in
he
r o u n d
Lease.
O w n e r "
m e a n s
the
A g e n c y (
or
the
City
ifhe
City shal
u c c e e d
to
the
nterest
o
h e
A g e n c y
hereunder ) ,
acting
in
itsr o p r i e t a r y
c a p a c i t y ,
and
ny a s s i g n e e
o
t r a n s f e r e e
o
the
A g e n c yor
the
Cityif
he City
shal u c c e e d
to
the
nterest
of
the Agency
hereunder)
f
then t i r e O w n e r 's
n t e r e s t
in
he
r e m i s e s , from
a n d after
the
ate
o
the
s s i g n m e n t
o
r a n s f e r
p u r s u a n t
to
h i c h
the
n t i r e O w n e r '
s
nterest
in
he Premises
w a s a s s i g n e d
o
r a n s f e r r e d
to
such
s s i g n e eo
r a n s f e r e e .
O w n e r '
s
n t e r e s t
in
theremises"
a s
the
meaning provided
in
h e Gound
Lease
Owner'
s
o n s u l t a n t " means
such Person
as
Owner
m ay
designate
inriting to
D e v e l o p e r
from
ime
to
ime.
P a y m e n t and
P e r f o r m a n c e Bond"
a sthe
e a n i n g
provided
in
Section
2
1
e.
e r m i t s a n d
A p p r o v a l s "
shall
mean
any
n d all
permits
a n d
approvals
required
tobe
ssued byGovernmental
A u t h o r i t i e s
in
c o n n e c t i o n
wth
the
onstruction
of
the
P r o j e c t , including,
without
limitation,
the
ity
o
i a m i
B e a c h
b u i l d i n g
p e r m i ts ,
the
a p p r o v a l s
o
he
Cty
of
Miami
Beach Design
R e v i e w
Board
the
Dade
ounty
D e p a r t m e n to
nvironmental
R e s o u r c e s
Management
permits,
the
Forida
D e p a r t m e n t
o
E n v i r o n m e n t a l
P r o t e c t i o n
coasta
construction
pennit,
a n d
any
tility
access
a g r e e m e n t s wth alp p l i c a b l e
utilityo m p a n i e s .
A\
N M \
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8/15/2019 03) Hotel Development Agreement
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Person"
means
an
individual,
corporation, partnership,
joint
venture,
limited
liability
company,
limited
liability
partnership,
estate,
trust,
nincorporated
associationor
other
entity;
any
Federal,
state,
county
or
municipal
government
or
any
bureau,
department,
polit ical
subdivision
or
agency
thereof;
and
any
fiduciary
acting
insuch
capacity
on
behalf
of
any
of
the
foregoing.
Pans
and
Specifications"
means
the final
plans
and
specifications
for
the
Project,
he
finish schedule,
thehotel
program
and
the differentiation
schedule,
each
as established in
accordance
wth
Article
3sthe
same
m a ybe
o d i f i e d from t i m e to
im ein
c c o r d a n c e with
the
p r o v i s i o n so
ection
3
e r e o f .
Preliminary
Pans
nd
S p e c i f i c a t i o n s "
m e a n s
the
preliminary
p l a n s
and
s p e c i f i c a t i o n s
for
the
roject,
the
r e l i m i n a r y
finsh
c h e d u l e ,
the
r e l i m i n a r y
h o t e l
program
and
he
reliminary
d i f f e r e n t i a t i o n
schedule
d e s c r i b e d
on
xhibit
3
1
)
ttached
hereto
an d i n c o r p o r a t e d by
r e f e r e n c e
h e r e i n ,
ashe
ame
m ay
be
o d i f i e d
from
imeto
tme
n
accordance
w i t h
t h e p r o v i s i o n s
o
e c t i o n
31
b
~f.
Project"has
he
a m e m e a n i n g
as "
Hote."
roject
Agreements"
e a n s
al
o
he
a g r e e m e n t s
b e t w e e n
D e v e l o p e r and
Owner
a n d /
o
he
ity
listed
n
Exhibit
19(
h
ttached
h e r e t o
and
i n c o r p o r a t e d
by
eference
h e r e i n . Project
M a n a g e m e n t
Fee"
as
the
e a n i n g p r o v i d e d
in
e c t i o n
3
(
a).
Poect
S i t e "
e a n s
the
Land
and
al
p o r t i o n s
o
he
I m p r o v e m e n t s .
P r o p o s a l
means
th e
d e v e l o p m e n t
p r o p o s a l
dated
April1,
996,ubmitted
by
Developer
in
response
to
the
FP .
RFP"
hasthe
e a n i n g
provided
in
Recta
C
e r e o f .
RP
I m p r o v e m e n t s "has
h e meaning
p r o v i d e d
in
S e c t i o n
3
1
.
Recognized
Mortgage"
has
he meaning
p r o v i d e d
in
Section
ll.2
c
o
the
r o u n d L e a s e .
R e c o g n i z e d
Mortgagee"
e a n s
the
h o l d e r
of
ae c o g n i z e d
M o r t g a g e ;
p r o v i d e d ,
however,
tha,
except
to
he
e x t e n t
permitted
by
Section
11
2(
f
the
Ground
L e a s e ,
a
Recognized Mor tgagee
may
not
be
n
Affiliate
o
e v e l o p e r (
e x c e p t
if
e v e l o p e ris
an
f f i l i a t e
o
a
Recognized
M o r t g a g e e
that
has
aused
the G r o u n d
Lease
to
be
s s i g n e d
to
uch
Affiliate
in
ieu
of
foreclosure
o
the
Recognized
M o r t g a g e
o
such
e c o g n i z e d
Mortgagee).
edevelopment
Plan"
means
hat
certan
lan
addressing
the
e h a b i l i t a t i o n ,
c o n s e r v a t i o n
and
r e d e v e l o p m e n t
oh a t
c e r t a i n
City
C e n t e r l H i s t o r i c C o n v e n t i o n
Vi l lage
R e d e v e l o p m e n t
a n d
R e v i t a l i z a t i o n Area d e s c r i b e d
t h e r e i n ,
o
w h i c h
the
and
f o r m s
a
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8/15/2019 03) Hotel Development Agreement
15/81
ved
by
the Board of
County
Commissioners
on
March
31,2023.
A
used
herein,
except
Plan"shal
not
incude
any
extensions
or
F e b r u a r y
o1993
by
he
O w n e r
and
th e City
and
oa d e
County ,
F l o r i d a
in
M a r c h , 1993,
and
expo.
n
the
Rectas
references
to
the "
edevelopmen
a m e n d m e n t s
t h e r e o f .
Required
C o n t i n g e n c y "
h a sthe
e a n i n g
vded
in
ection
3
(
d.equi red
C o n t i n g e n c y Percentage"
h a s
e
e a n i n g
p r o v i d e d
in
xhibit
3
(
d.
e q u i r e m e n t s "
has
the
meaning
p r o v i d e d
S a l e of
the
otel"
has
the
e a n i n g p r o v i d
in
th e
Ground
L e a s e . Shorecrest
I m p r o v e m e n t s
has
he
.
g
rovided
in
Secion 3
1
.
S u b s t a n t i a l
C o m p l e t i o n or "
S u b s t a n t i a
C o m p l e t e " or " u b s t a n t i a l l y
C o m p l e t e d
m e a n s , wth
respectto
h e Poec,
that (1it
hall
ha
been
u b s t a n t i a l l y completed
in
c c o r d a n c e
wth
th e
P l a n s
andp e c i f i c a t i o n s , (
2
he
ertificate
fthe
A r c h i t e c t d e s c r i b e d
in
Section
2
3
b(
i)ereof
sha
have
e e n
obtained,
and (
3
ll
o
the
r o v e m e n t s
t h e r e i n
sha
ave
been
issued
temporary
certificates
o
o c c u p a n c y .
Term"
eans
the
p e r i o d
c o m m e n c i n g
on
e
o m m e n c e m e n t
Dateand,
n l e s s
s o o n e r
terminated _
s
p r o v i d e d
h e r e u n d e r ,
e x p i r i n g
on
he
i
e
o
Fna
CO
and
the
o m p l e t i o n
o
l
e J l 1 s i n i n g punch
list
items
wth
espect
to
o m p l e t i oo
he
Hotel
inc c o r d a n c e
with
the
erms o
ths
A g r e e m e n t ,
subject,
o w e v e r ,to
u r v i v a l
o
ny
visions
of this A g r e e m e n t
tha
are
x p r e s s l y
staed
erein
to
survive
such
expiration
o
erminati
n(
s
the
case
ay
be).
n a v o i d a b l e
D e l a y s "
means
delays
due
t r i k e s ,
s l o w d o w n s ,
lockouts,
cts
o
God
inability
to
b t a i n labor
o
aterials,war,
n e m y a c t in
c i v i l
c o m m o t i o n ,
fire
a s u a l t y ,
c a t a s t r o p h i c
weather
c o n d i t i o n s ,
a
o u r t
order
which
c a u s e sa
e
y(n l e s s
resulting
from
isputes
between
o
m o n gthe
a r t y a l l e g i n g
ann a v o i d a b l e
D e l a y ,
ent
o
o r m e r
e m p l o y e e s ,
officers,
members, .
partners
o
h a r e h o l d e r s
o
u c h
a l l e g i n g
party
or (or
present
or
o r m e r
employees,
f f i c e r s ,
p a r t n e r s ,
members
or
s h a r e h o l d e r s
o
such
A f f i l i a t e s
o
such
l l e g i n g party),
h e
appl icat ion
ofany
R e q u i r e m e n t ,
or
n o t h e r
cause
b e y o n d
such
p a r t y ' conro
o
h i c h ,if
s u s c e p t i b l e
to
control
by
uchparty,
shall
be
eyond
the
r e a s o n a b l e
c o n t r o l
f
such
party.Such
party
shall
use
r e a s o n a b l e
good
fath
f f o r t s
to
nofy
he
o t h e r
party
no
laer
twenty (
20)
ays
after
s u c h
party
k n o w s
o
he
o c c u r r e n c e of
an
Unavoidable
D e l a y ;
r o v i d e d ,
wever,
tha
i t h e r party
s
ailure
to
otify
the
ther
o
the
c c u r r e n c eo
n
e v e n t constituting
an
a v o i d a b l e Delay
shall
n o t
alter,
d e t r a c t
f r o m
or
negate
its
c h a r a c t e r
as
n
U n a v o i d a b l e
Delay
or
0
r w i s e
resut
in
the
loss
o
n y
b e n e f i t
or
i g h t
granted
to
he
delayed
p a r t y under
this
A g r e e m e n .
In
o
even
shal (
i)
ny
arty'
s
i n a n c i a l
c o n d i t i o n
o
nability
to
fund
r obtain
funding
o
i n a n c i n g c o n s t i t u t e
an
n a v o i d a b l e
Deay"
except
for
n I n s t i t u t i o n a l
L e n d e r '
s
n a b i l i t y
to
und,
which
i n a b i l i t y
is
no
a u s e d by
D e v e l o p e r )
wth
e s p e c t
to
uch
p a r t y and (ii)
nyd e l a y
arising
froma
a r t y '
s (
-
8/15/2019 03) Hotel Development Agreement
16/81
this
Agreement
or
any
of
the
Project
Agreements
constitute
an"Unavoidable
Delay"
wth
respect
to
such
party'
s
obligations
hereunder.
The times
for
performance
set forth
inthis
Agreement (
other
than
for
monetary
obligations
of
a
party
and
wth
respect
to
completion
ofthe
Project by
the
Default
Date) shall
be
extended
to
the
extent
performance
is
de layed
by
Unavoidable
De lay ,
except
as
otherwise
expressly
set
forth
in
this
Agreement.
Withheld
Amount"
has
the
meaning
provided
in
Section
3.
8
d
RTICLE
2
O N S T R U c n O N S e c t i o n
2
Condtons
P r e c e d e n tto
e v e l o p e r '
s
C o m m e n c e m e n t
of
Construction
o
the
r Q j e c t .
a
e v e l o p e r
shall (
u b j e c t
to
n a v o i d a b l e
Delays)
b t a i n
al
Permits
and
A p p r o v a l s
by
nom o r e han
ne (
1
e ar
from
th e
C o m m e n c e m e n t
Date.
u b j e c tto
ection
2.
1(
c
e v e l o p e r
shallno C o m m e n c e
C o n s t r u c t i o n
o
the
Project
u n l e s s and
n t i l (
i)e v e l o p e r
s h a l l
have
o b t a i n e d
a n d
d e l i v e r e d
to
he
Owner'
s
o n s u l t a n t
copes
o
l
P e r m i t s
and
p p r o v a l s r e q u i r e d
to
o m m e n c e C o n s t r u c t i o n
and (
ii)
eveloper
s h a l l
h a v e
delivered
to
the
Owner
o r i g i n a l c e r t i f i c a t e s
o
the
o l i c i e s of
insurance
r e q u i r e dto
e
c a r r i e d
pursuant
to
the
provisions
o
r t i c l e
7
o
hi s
A g r e e m e n t . b
h e
O w n e r (
solely
in
ts
a p a c i t y
as
the
owner
o
he
ProjectSte
nd
no
n
its
o v e r n m e n t a l
capacity)
hall
reasonably
c o o p e r a t e
w i t h
Developer
in
o b t a i n i n g
the
Permits
and
Approvals
required
by
S e c t i o n
2
1
a
nd
a n y
necessary
utility
a c c e s s
a g r e e m e n t s ,
s h a l l
sign
a n y a p p l i c a t i o n
r e a s o n a b l y
made
by
Deve loper
w h i c h
is
equired
in
r d e r
to
obtain
such
e r m i ts
and
Approvas
andt i l i ty
access
g r e e m e n t s
and
hal
provide
D e v e l o p e r
wth
n y information
a n d /
or o c u m e n t a t i o n
no
o t h e r w i s e
reasonably
a v a i l a b l e
to
e v e l o p e r (
if
v a i l a b l e
to
he
Owner)
whch
is
e c e s s a r y
to
procure
u c h
Permits
and
A p p r o v a l s and
uility
c c e s s
a g r e e m e n t s . Any
such a c c o m m o d a t i o n
by
Owner
s h a l l
be
i t h o u t
p r e j u d i c e
to,
and
h a l lno
o n s t i t u t ea
aiver
of,
Owner
s
ighs
to
xercise
its
iscretion
in
o n n e c t i o n
with
its
o v e r n m e n t a l functions.
e v e l o p e r
shal
r e i m b u r s e
the
Owner
w i t h i n t e n (
10
ays a f t e r
the
wner'
se m a n d ,for
n y
reasonable
ou-
o-
ocket cost
o
x p e n s e
payable
to
the
w n e r '
s
e c h n i c a l
c o n s u l t a n t s (other
han
the
w n e r ' s
o n s u l t a n t
and
Owner'
s
employees),
suchas
r c h i t e c t s
and
n g i n e e r s ,
so
n c u r r e d
by
he
Owner
in
o n n e c t i o n
wth
Owne
s
s s i s t a n c e
in
b t a i n i n g
th e
Permits
and
A p p r o v a l s
and
tility
c c e s s a g r e e m e n t s
required
by
S e c t i o n2
1
a.
e v e l o p e r
shall
no
o m m e n c e
C o n s t r u c t i o n
o
he Project,
or
any
o r t i o n
t h e r e o f ,
unless
and
unil
the
w n e r
sha
have
p p r o v e d
the
lans
and
p e c i f i c a ti o n s (
to
the
x t e n t r e q u i r e d
herein).
However,
if
eveloper
c h o o s e sto
e r f o r m
any
o n s t r u c t i o n
of the
Project
on
a
ast-
track"
asis,
D e v e l o p e r
m a y
r e q u e s t
the
e c e s s a r y approval
of
the
Owner
in
tages
and
p e r f o r m
thaortion
o
he
o n s t r u c t i o nWorkhch
has
-
8/15/2019 03) Hotel Development Agreement
17/81
comply
wthall
other
requirements
wth
respect
tosuch
portion
of
the
Construction
Work),
even
if
progress
plans
and
specifications
forother
portions
of
the Construction
Work have not
yet
been
prepared.
d)
Prior
to
Commencement
of
Construction
of
the
Project,
Deve loper
shall
furnish
to
Owner
a
completion
guarantee (
the "
Completion
Guarantee"),
n the form
attached
hereto
and
incorporated
by
reference
herein
as
Exhibit
2.
1(
d
from
u a r a n t o r ,
pursuant
to
hich,among
oher
matters,
u a r a n t o r
guarantees
t i m e l y
c o m p l e t i o n
o
th e
P r o j e c t .
e
P~
en
nd
P e r f o n n a n c e
B o n d .
Pio
oCommencement
of
C o n s t r u c t i o n
o
the
roject, Developer
s h a l l cause
the
e n e r a l
Contractor to
furnish
to
Owner
a
payment
and p e r f o r m a n c e
bond (
he "Paymen
and
P e r f o r m a n c e B o n d " ) ,in
a
orm
e a s o n a b l y
a c c e p t a b l eto
w n e r ,
i s s u e d
by
a
m e t y
l i s t e d
in
hemost
recent
Unted
t a t e s
D e p a r t m e n t
o
r e a s u r y
listing
o
pproved
s u r e t i e s ,
guaranteeing
the p e r f o r m a n c e
othe
eneral
C o n t r a c t o r
under
tha
certan
g u a r a n t e e d
maximum
p r i c e
c o n t r a c t
fo
he
C o n s t r u c t i o n
o
he
roject. Owner
m a y
a c c e p t ,
in
ts
soe
and
b s o l u t e
d i s c r e t i o n ,
fo
ny
r e a s o n
and
fo
no
e a s o n
whatsoever,
a
c o m p l e t i o n
g u a r a n t e e from
the
e n e r a l
Contractor
inu b s t i t u t i o n
fo
uch
Paymen
and
P e r f o r m a n c e
Bond.
O w n e r sha
be
n a m e d
as
a
ual o b l i g e e
under
the
Payment
and
P e r f o r m a n c e
Bond;
rov ided ,
o w e v e r ,
Owner'
s
i g h t s
under
the
Payment
ande r f o r m a n c e
B o n d
sha
be s u b o r d i n a t e
to
he
e c o g n i z e d
M o r t g a g e e 's
s
d e f i n e d
in
the
ease)i g h t s
under
the
Payment
and
e r f o r m a n c e
Bondand
Owner
s h a l l
agree
inriting
wth
such
e c o g n i z e d M o r t g a g e e
that
O w n e r
shall o n l y seek
to
e n f o r c e
its
i g h t s
under
the
Paymen
and
e r f o r m a n c e
B o n d
if
her o u n d
Lease
ise r m i n a t e d
and
such
R e c o g n i z e d M o r t g a g e e fals
o
e x e r c i s e
itsights
u n d e r
S e c t i o n11
6
theGround
L e a s e
for
the
x e c u t i o n
o
e w
Tenant'
s
o c u m e n t s (
as
efined
in
the
r o u n d
Lease).
e c t i o n2
o m m e n c e m e n t
and
COIllPletion
o
o n s t r u c t i o n
ofthe
rQject.
D e v e l o p e r
s h a l l ,
subject
to Unavoidable
Deays,
aits
expense (
a
o m m e n c e
C o n s t r u c t i o n
ono
e f o r e
sxy (
60
a y s
after
al
e r m i t s
and
p p r o v a l s n e c e s s a r y
for
the
ommencement
oo n s t r u c t i o n
a r e
ssued (
he
o n s t r u c t i o n
C o m m e n c e m e n t
Dae)
n d (
b)
h e r e a f t e r
c o n t i n u e
to
r o s e c u t e
C o n s t r u c t i o n
of
the
r o j e c t wth
diligence
and
continuity
to
ompletion.
If,f t e r
Developerhas
ommenced
C o n s t r u c t i o n ,
D e v e l o p e r
fals
to
i l i g e n t l y
prosecute
C o n s t r u c t i o n
othe
Project (
subject
to
n a v o i d a b l e
Deays),
and
u c h
failure
continues (
s u b j e c t
to
U n a v o i d a b l e
D e l a y s )
for
h i r t y
c o n s e c u t i v e (
30)days
ater
D e v e l o p e r '
s
receipt
of
notice
of s u c h
f a i l u r e ,
th e
Owner
shal,
ind d i t i o n
to
lof
its
ther
r e m e d i e s
u n d e r
this
A g r e e m e n t
and
the
Ground
Lease,
have
the
ight
to
e e k
such
q u i t a b l e
relief (
i t h e r
mandatory
or
injunctive
in
a t u r e )
as
may
e
necessary
to
c a u s e
dil igent
and
o n t i n u o u s
prosecution
o
o n s t r u c t i o no
h e
P r o j e c t (
subec
tonavoidable
D e l a y s )
by
D e v e l o p e r ,
it
e i n g understood
tha
C o n s t r u c t i o n of
the
r o j e c t
is
a
a t e r i a l
i n d u c e m e n t
to
he
Owner
to
nter
into
the
r o u n d
Lease
nd
monetary
d a m a g e s
shal
be
n a d e q u a t e
to
o m p e n s a t e
the
wner
for
h a r m
resulting
from
uch
f a i l u r e .
N o t w i t h s t a n d i n g
a n y t h i n g
to
the
ontrary
contained
h e r e i n ,
if
e v e l o p e r
f a i l s
tou b s t a n t i a l l y
C o m p l e t e
C o n s t r u c t i o n
ofthe
r o j e c t
by
he Default D a t e ,
then
the
ame
sha
o n s t i t u t e
an
v e n to
efault
u n d e r this
A g r e e m e n t
and
u n d e r
the
r o u n d
L e a s e a n d the
Owner
sha
be
e n t i t l e d
to
lo
its
e m e d i e s h e r e u n d e r
a n d
-
8/15/2019 03) Hotel Development Agreement
18/81
theretmder,
including,
without
limitation,
he
termination
of
this
Agreemen t
and the Ground
Lease.
Notwithstanding
anything
to
the
c o n 1 r a r y
c o n t a i n e d
in
h is
A g r e e m e n t ,
the
e f a u l t Dae
hall no
be
e x t e n d e d
by
r e a s o n
o
n a v o i d a b l eDeay
e c t i o n
2
O I r \
P l e t i o n
o
o n s t r u c t i o nof
the
P r Q j e c t .
a
ubstantial
C o m p l e t i o n
of
the
r o j e c t
s h a l l
be
c c o m p l i s h e d in
a
dligen
m a n n e r ,
an d
in
any
e v e n t
by
the
ompletion
D e a d l i n e , and
fina
o m p l e t i o nof
the
o n s t r u c t i o n
of
the
Project,
n c l u d i n g
but
no
i m i t e d
to
o m p l e t i o n
of
al
u n c h -
list
items,
h a l l
be
a c c o m p l i s h e d
in
a
ligen
manner
t h e r e a f t e r ,inach
c a s e
in
a
oodand
orkerlike
m a n n e r ,in
substantial
a c c o r d a n c e
with the
l a n s
and
p e c i f i c a t i o n s ,
in
c c o r d a n c e w i th
al
pplicable
R e q u i r e m e n t s
and,
x c e p t
as
r o v i d e din
r t i c l e
6
t D e v e l o p e r 's
ole
cost
a n d
e x p e n s e .
b
pon
u b s t a n t i a l
Completion
of o n s t r u c t i o n
o
the
r o j e c t ,
Developer
s h a l l
furnish
the
O w n e r
wth
th e
f o l l o w i n g :
i
e r t i f i c a t i o n
o
he
r c h i t e c t ( c e r t i f i e dto
he
O w n e r
on
the
standard
AlA c e r t i f i c a t i o n
f o r m ) thatit
as
e x a m i n e d
the
Pans
nd
S p e c i f i c a t i o n s
a nd
t h a t ,
in
ts
r o f e s s i o n a l
judgment,after
dligen
n q u i r y ,
C o n s t r u c t i o n
o
he
Project
has
een
u b s t a n t i a l l y
Completed
inc c o r d a n c e
wth
the
Pans
and
p e c i f i c a t i o n s
a p p l i c a b l e
t h e r e t o
and
s
constructed,
the
m p r o v e m e n t s c o m p l y
wth
al
a p p l i c a b l e
R e q u i r e m e n t s ;
ii)
f
e q u i r e m e n t s
require
th e
same,
a
copy
or
c o p i e s
o
the
e m p o r a r y
certificates
o
c c u p a n c y for
he
Hotel (
o
o r t i o n
thereof,
as
p p l i c a b l e )
i s s u e d
by
heCty
o
iami
Beach
B u i l d i n g
D e p a r t m e n t ;
iii)
ie n w a iv e r s
inform
and
ubstance
r e a s o n a b l y
s a t i s f a c t o r y
to
w n e r
from
each
o n t r a c t o r ,
u b c o n t r a c t o r , suppier
o
a t e r i a l m a n
r e t a i n e d
by
or
on
behalf
of
Developer
in
o n n e c t i o n
wth
he
C o n s t r u c t i o n
o
the
r o j e c t ,
e v i d e n c i n g
thasuch
P e r s o n s
have
b e e n
pa id.
in
ull for
al
o rk
performed
o
a t e r i a l s
supplied
in
o n n e c t i o n
wth
he
C o n s t r u c t i o n
o
th e P r o j e c t ;
iv
o m p l e t e
seto
as
bullt"
p l a n s
and
a
u r v e y
showing
he
I m p r o v e m e n t (
s(
x c l u d i n g
p e r s o n a l t y )
for
whch
he
C o n s t r u c t i o n
o
he
Project
has
een
c o m p l e te d .
The
Owner
shallhave
an
n r e s t r i c t e d
licenseto
se
such "
as
uilt"
plans
and
s u r v e y
fo
ny
u r p o s e
r e l a t e d
to
he
Project
Site
w i t h o u t
payng
any
a d d i t i o n a l
cos
o
c o m p e n s a t i o n
t h e r e f o r ,
subject
to
opyright
and
s i m i l a r
r i g h t s
o
he
Architect
to
r o h i b i t
use
o
designs
fo
u r p o s e s
u n r e l a t e d
to
he
P r o j e c t
Site,
as
uch
r i g h t s
exist
in
lawo
a y a p p e a r
in
he
Architect'
s
ontract,
a n d
subject
to
pplicable
public
r e c o r d s
laws.The
o r e g o i n g
r e q u i r e m e n t
w i t h
r e s p e c t
to
as
built"
p l a n s
shal
be
satisfied
by
e v e l o p e r
f u r n i s h i n g
to
he
Owner,
t
Deve loper '
s
expense,
a
o m p l e t e
se
o
Pans
and
S p e c i f i c a t i o n s , wth
al
d d e n d a
t h e r e t o
andA\
NM \CMB \Hl1.
JV
A
X2 (
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-
8/15/2019 03) Hotel Development Agreement
19/81
change
orders in
respect
thereof,
marked to show
al
changes,
additions,
deletions
and selections
made
during
the
course
of
the
Construction
of
the
Project;
v)
a
Contractor's
Final
Affidavit
in
form
and
substance
reasonably
satisfactory
to
Owner executed
by
the
General
Contractor (
i)
evidencing
that
al
contractors,
subcontractors,
suppl iers
and
materialmen retained
by
or
on
behalf
of
Deve lope r
in
connection
wth
the Construction ofthe
Project
have
been
pa id
in
full
for
al
work
performed
or
materials
suppl ied
in
connection wththe Construction of
the
Project;
and (
ii)
otherwise
comply ing
wth al of
the
requirements
under
the
Florida Construction
LienLaw
Chapter
713
orida S t a t u t e s ,as
m e n d e d ;
a nd
v)v i d e n c e
that
all F F &
E
e c e s s a r y
to
se
and
p e r a t e
the
o t e l
inc c o r d a n c e with
the
Ground
Lease anagement
A g r e e m e n t ,
P l a n s
and
p e c i f i c a t i o n s
and
the
e v e l o p m e n t
B u d g e t has
beenn s t a l l e d inthe
Hoe
ARTICLE3
PLANS
AND
S P E C I F I C A T I O N S
S e c t i o n
3
1
A p p r o v a l
nd
Modification
o f P r e l i m i n ~
Pan ;
nd
S p e c i f i c a t i o n s .
a
e v e l o p e r
has
previously
s u b m i t t e d
to
the
w n e r ,
and
he
Owner
has
p p r o v e d ,
the
reliminary
P l a n s and
S p e c i f i c a t i o n s
describedonx h i b i t
3
(
attached
h e r e t o
an d
i n c o r p o r a t e d
by
e f e r e n c e
herein.
b)
If
e v e l o p e r
d e s i r e s
to
o d i f y
the
P r e l i m i n a r y
Plans
and
S p e c i fi c a ti o n s (asuch
ay
h a v e
been p r e v i o u s l y
a p p r o v e d
pursuant
to
the
termso
this
S e c t i o n
3
1
b,
e v e l o p e r
shal l
submt
n y such
p r o p o s e d
modified
Preliminary
Plans
and
Specifications
to
wner.
Such
m o d i f i e d
Preliminary
Pans
and
p e c i f i c a t i o n s
shal
l e a r l y
indicate,
by "ballooning",
i g h l i g h t i n g , b l a c k l i n i n g
or describing
in
riting
in
ufficient
detail in
a
e m o r a n d u m
a c c o m p a n y i n g
such
modfiedr e l i m i n a r y
P l a n s
and
S p e c i f i c a t i o n s ,
aU
such
roposed m o d i f i c a t i o n s
to
he
P r e l i m i n a r y
P l a n s
and
p e c i f i c a t i o n s . Within
ten(
10
business
dayso
its
e c e i p t
o
uch
p r o p o s e d
modified
P r e l i m i n a r y
Plans
and
p e c i f i c a t i o n s ,
the
w n e r shal
n o t i f y
D e v e l o p e r ,
in
r i t i n g ,
d e s c r i b i n g ,
wthpecificity,
he
bass
fo
s u c h
d i s a p p r o v a l of
any
material
m o d i f ic a t i o n s
or
material
i n c o n s i s t e n c i e s
o
whch
he Owner
d i s a p p r o v e s
b e t w e e n
the
r e l im i n a r y P l a n s
andp e c i f i c a t i o n sas
o d i f i e d
and the
r e l i m i n a r y
Plans
and
S p e c i f i c a t i o n s p r e v i o u s l y
a p p r o v e d
byh e
Owner,
it
e i n g
agreed
however,
h a t the
Owne
s
ailure
to
so
notify
D e v e l o p e r
o
ts
disapproval
d u r i n g
such
im e
period
shal
be d e e m e dto
o n s t i t u t e
the
Owner'
so n c l u s i v e
a p p r o v a l
ouch
m o d i f i c a t i o n s
o
n c o n s i s t e n c i e s ; p r o v i d e d , however,
that
if
w n e r
shall
notify
D e v e l o p e r
w i t h i n
ten (
10
usness
a y s
f o l l o w i n g
its
eceip t
that
any
the
proposed
m o d i f i c a t i o n s
to
he
P r e l i m i n a r y
Plans
a n d
S p e c i f i c a t i o n s
are
not
indicated
as
r e q u i r e d
by
hs
ecion
3 )orhat
the
o m p l e x i t y
o
her o p o s e d
m o d i f i c a t i o n s
n e c e s s i t a t e s
an
x t e n s i o n
ofsuchim e
p e r i o d
to
omplete
O w n e r '
s
e v i e w ,
such period
s h a l l
be
x t e n d e d
to
th e
dae
w h i c his
hrty (
30ayster
O w n e r '
-
8/15/2019 03) Hotel Development Agreement
20/81
proposed
modifications;
provided,
further,
however,
that Owner
shall
not be
responsible
for,
and
shall
not be
deemed
to have
approved,
any
such
proposed
modification
that is
not indicated
as
required
by
this
Section
3.
1
.
o t w i t h s t a n d i n g a n y t h i n g
to
he
ontrary
contained
herein, O w n e r
shall
not
o b j e c t
to
n y m o d i f i c a t i o n s
to
he
r e l i m i n a r y
Pans
and
p e c i f i c a t i o n s
whch
r e
necessitated
by
R e q u i r e m e n t s
or
as
a
e s u l t
o
a
rating
o o r d i n a t i o n , mechanical
o
t e c h n i c a l
error
in
he
r e l i m i n a r y
Pans
a n d
S p e c i f i c a t i o n s .c
If
w n e r
disapproves
any
a t e r i a l m o d i f i c a t i o n s
to
o
a t e r i a l
i n c o n s i s t e n c i e s
in
he
r e l i m i n a r y
Pans
and
p e c i f i c a t i o n s
pursuant
to
Section
3
1
,
b o v e ,
t h e n
Developer
shall,
at
its
lection,
i t h e r (
u b m i t
Owner'
s
disapproval
to
expedited
a r b i t r a t i o n
pursuant
toe c t i o n3
and
e c t i o n
22.
1
sto
the(i)a t e r i a l i t y
ofthe
n c o n s i s t e n c y
or
modification
and/
or (
ii)
h e
r e a s o n a b l e n e s s
o
he
d i s a p p r o v a l ,
o(
u b m i t
a
e v i s e d
m o d i f ic a t i o n
toh e
Preliminary
Pans
andpecifications
to
m e e t Owner
s
bjections,
h i c h
revised
m o d i f i c a t i o n shal
be
s u b m i t t e d
and
e v i e w e d as
provided in
ection
3
1
).
d)
escription
o f
the
Hotel.
h e
H o t e l
wll
consist
o
he f o l l o w i n g : (
i)
estored
p o r t i o n s
of
the
o y a l
P a l m
Hotel,
a n d
a
new
towerto
e
d e v e l o p e d
to
the
east
o
he
o y a l
P a l m
Hotel,
as
perhe
pans
and
p e c i f i c a t i o n s
a p p r o v e d
by
he
joint
D e s i g n
R e v i e w
and
i s t o r i c
P r e s e r v a t i o n
Boards
on
December
3
996
as
aid
pans
and
s p e c i f i c a t i o n s
may
be
amended
and
pproved,
o g e t h e r c o m p r i s i n g
a p p r o x i m a t e l y two
hundred
fifty-
s e v e n (
257
hotel
r o o m s ( h e r e i n a f t e r collectively
reerred
to
s
t h e "RPm p r o v e m e n t s '' )
a n d (
)estored
portions
o
he
h o r e c r e s t I m p r o v e m e n t s
which
hasat r e e t
address
of 1 5 3 5 C o l li n s
A v e n u e , M i a m i Beach
Forida
nd
a
ew
tower
to
be
developed
to
the
east
o
he
h o r e c r e s t I m p r o v e m e n t s ,as
er
he
pans
an d
s p e c i f i c a t i o n s
a p p r o v e d
by.
the
oint
D e s i g n
Review
and
Historic
P r e s e r v a t i o n
Boards
on
e c e m b e r
3
996,
as
said
plans
and
pecifications
may
e
a m e n d e d
and approved,
togeher
c o m p r i s i n g
approximately
one
u n d r e d s i x t y -
five(
6 5 )
hoe
suites ( e r e i n a f t e r
c o l l e c t i v e l y
reerred
to
as
the"
h o r e c r e s t
I m p r o v e m e n t s ' ' ) .
The S h o r e c r e s t
I m p r o v e m e n t s wll
be
operated
in
o n j u n c t i o n wth
the
RP
m p r o v e m e n t s
as
he
otel.
The
Hote
wll
be
a
irst
c l a s s ,
upscale
property
wth
suitable
c o n v e n t i o n , c o n f e r e n c e
and
e e t i n g
space
a n d a p p r o p r i a t e amenities
meeting
the
standards
othe
r o w n e Plaza
Hotel
chan
a n d
those s t a n d a r d sse
o r t hin
he
G r o u n d
Lease.
Section
3
2
p p r o v a l
and
o d i f i c a t i o n
ofPans
and
S p e c i f i c a t i o n s .a
Pror
to
o m m e n c e m e n t
o
Construction
o
th e Project,
D e v e l o p e r
shall
p r e p a r e
and
ubmit
to
h e
Owner
the
lans
and
Specif ications,
which
Pans
and
p e c i f i c a t i o n s
shall
besed
to
b t a i n the
required
building
p e r m i t s .
If
u ch
s u b m i t te d
Plans
and
S p e c i f i c a t i o n s
ae
aterially
inconsistent
w i t h ,
orcontain
m a t e r i a l m o d i f i c a t io n s
to
he
r e l im i n a r y
P l a n s
and
p e c i f ic a t i o n s (
as
such
m a y
have
been
reviously
a p p r o v e d
pursuant
to
the
e r m so
ection
3.
1),
hen
uch
lans
and
p e c i f i c a t i o n s
sha
l e a r l y
i n d i c a t e ,
by"
a l l o o n i n g , h i g h l i g h t i n g ,
blacklining
o
e s c r i b i n g
in
riting
in
sufficient
detail
in
a
m e m o r a n d u m
a c c o m p a n y i n g
such
Plans
and
Specifications,
al
uch
m o d i f i c a t i o n s
to
h e
P r e l i m i n a r y
Pans
and
S p e c i f i c a t i o n s .
W i th i n ten(
0)
u s i n e s s
days
f
its
receipt
o
s u c h Pans and p e c i f i c a t i o n s ,
wner
shal
notifyeveloper,
in
riting,
-
8/15/2019 03) Hotel Development Agreement
21/81
or
material
modifications of
which the Owner
disapproves
between
the
proposed
Plans
and
Specif ications
and
the
Preliminary
Plans
and
Specifications,
it
being agreed
however,
that
the
Owner'
s
falure
to so
notify
D ev e l ope r
ofits
disapproval
wthin
such
time
period
shall be
deemed
toconstitute
the
Owner'
s
conclusive
approval
ofsuch Plans
and
Specifications;
provided,
however,
that
ifOwner
shall
notify
D ev e l ope r
wthin
ten ( 10
u s i n e s s
days
o l l o w i n g
its
e c e i p t
that
any
o
such
n c o n s i s t e n c i e s
o
o d i f i c a t i o n s to
the
r e l i m i n a r y P l a n s
and
p e c i f i c a t i o n s
are
no
i n d i c a t e d
as
e q u i r e d
by
ths
S e c t i o n3
(
8
rthat
the
o m p l e x it y
o
such
h a n g e s
from
the
reliminary
P l a n s
andp e c i f i c a t i o n s n e c e s s i t a t e s
an
e x t e n s i o n
of
such
time
e r i o d
too m p l e t e
Owner'
se v i e w ,
such
e r i o d shall be
xtended to
the
date
which
is
h i r t y (
30
a y s
after
Owner'
s
e c e i p to
he
roposed i n c o n s i s t e n c i e s
or
o d i f i c a t i o n s ;
p r o v i d e d , f u r t h e r ,
o w e v e r ,
tha
w n e r
shall no
bee s p o n s i b l efo,
n d
shall
no
be
e e m e d
to
ave
p p r o v e d ,
any
uch
m a t e r i a l
i n c o n s i s t e n c y
o
o d i f i c a t i o n
tha
is
not indicated
as
required
by
ths
Section
3
2
),
except
that
when
D e v e l o p e r
a d v i s e s
Owner
in
writing,
and O w n e r
agrees
with
Developer
in
writing,
that
the
Plans
and
p e c i f i c a t i o n s ,
as
p p r o v e das
e r e i n provided
a b o v e ,
ae
omplete and
s u f f i c i e n t
and
suitable
to
construct,
urnish
and
equp
he
e n t i r e J l o t e l
in
c c o r d a n c e
wth
the
r o v i s i o n s
of
ths
g r e e m e n t ,
such
r i t t e n
a g r e e m e n t
s h a l l
be
eemed
to
c o n s t i t u t e
the
w n e r '
s
onclusive
a p p r o v a l o
all modifications
and
i n c o n s i s t e n c i e s ,
w h e t h e r
or
not
the
modifications
are
highlighted,
inuch
Plans
and
p e c i f i c a t i o n s ;
p r o v i d e d ,
however, h a t
the
foregoing
e x c e p t i o n r e l a t i n g
to
w n e r '
s
c o n c l u s i v e
a p p r o v a l
d o e s no
p p l y
to
h o s e
changes
which,
in
O w n e r '
s
p i n i o n , (
i)
i m i n i s h anyo
h e
levels
o
uaity
oth e H o t e l , (
ii)
a t e r i a l l y
d i m i n i s h , i n d i v i d u a l l y
o
in
he
a g g r e g a t e ,
any
o
th e p h y s i c a l
c o m p o n e n t so
he
otel, or ( iii)
a v e
a
a t e r i a l
adverse
e f f e c t (
a
on
he
a b i l i t y
o
e v e l o p e r
to
c o m p l e t e
C o n s t r u c t i o no
the
r o j e c t
or (
b
on
he
i n a n c i a l f e a s i b i l i t y
o
the
otel.
N o t w i t h s t a n d i n g
a n y t h i n g
to
the
o n t r a r y
c o n t a i n e d
heren
wner
s h a l lno
b j e c t
to
any
n c o n s i s t e n c i e s with
o
o d i f i c a t i o n s tothe
r e l i m i n a I y .
Pans
nd
S p e c i f i c a t i o n s w h i c h
are
e c e s s i t a t e d by
R e q u i r e m e n t s
o
as
resut
o
r a f t i n g ,
coordination,
e c h a n i c a l or
technical
e r r o r
in
the
r e l i m i n a r y
P l a n s
and
p e c i f i c a t i o n s .
b
f
e v e l o p e r
desres
tomodify
p r e v i o u s l y
a p p r o v e d Plans
and
p e c i f i c a t i o n s
as
uchmay
have
been
o d i f i e d
by
p p r o v e d
Plans
and
p e c i f i c a t i o n s ) ,
D e v e l o p e r
sha
u b m i t
any
u c h
modified
P l a n s
and
p e c i f i c a t i o n s
to
wner
for
Owner
s
p p r o v a l .
Such
m o d i f i e d
Pans
and
p e c i f i c a t i o n s
s h a l l
clearly
i n d i c a t e ,
by "
a l l o o n i n g , highlighting,
l a c k l i n i n g
or d e s c r i b i n g
in
iting
in
ufficient
detail
in
a
m e m o r a n d u m a c c o m p a n y i n g
such
modfied
l a n s and S p e c i f i c a t i o n s ,
al
such
roposed
m o d i f i c a t i o n s
to
the
P l a n s
a n d
S p e c i f i c a t i o n s .
W i th i n
ten (
10
usness
days
o
its
eceipt
of
the
r o p o s e d
m o d i f ic a t io n s ,
O w n e r
shal l
noify
Deveoper
in
writing,
wth
p e c i f i c i t y
o
ny material
i n c o n s i s t e n c i e s
o
m a t e r i a l
m o d i f i c a t i o n s
o
whch
he
Owner
d i s a p p r o v e s
b e t w e e n the
lans
and
p e c i f i c a t i o n s
as
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