267-97 RDA Incomplete (1)

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8/15/2019 267-97 RDA Incomplete (1)

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R e d e v e l o p m e n t

and

Revif~

1 7 ; >

tion

Pian

and

wll

eliminate

slum

and

blight

in

he

City

enter

Hstoric

Convention

Village


and

Revitalization

Area;

and

WHREAS, the

acquisition

of

he

Leasehold

and

the

d e v e l o p m e n t

of

he

Hotel ae

necessary,

ae

public

purposes

and

will

benefit

the

public

by,

among

other

t h i ng s ,

nc r eas ing

the

number

of

convention

quality

hotel

roomsin

the

City,

assisting

the

City

in

attracting

conventions

and

i n c r e a s in g

the

utilization

of

the

Convention

Center,

i nc r eas ing

ourism.

and

i m p r o v i n g

the

economy;

and

WHEREAS,

the

acquisition

of

he

Leasehold

and

the

development

of

the

Hotel

e

authorized

by

Chapter

1 63o

the

lorida

Statutes.

NOW

H E R E F O R E , BE

ITU L

Y

E S O L V E D

BY

THE

l I A I R M A N

ANDE M B E R S

OF

THE

MAM

E CH

E D E V E L O P M E N T

A G E N C Y

as

follows:

1

u b j e c t

to

he

x e c U t i v e

Director

and

e n e r a l

C o u n s e l

o

he

gency

b e i n g

s a t i s f i e d

tha

ll

p r e c o n d i t i o n s

to

he

c l o s i n g

on

he

a c q u i s i t i o n

o

he

e a s e h o l d have

b e e n

met

by

the

seller:

a

h e

Agency

is

a u t h o r i z e d

to

acqure

th e

L e a s e h o l d . .

b

h e

Agency

is

authorized

to

x p e n d

up

o $

3

1

i l l i o n

for

the


o

the

e a s e h o l c L

c

he

A g e n c y

is

authorizedto

a ke

an

s s i g n m e n t

ofRDP'

s

greement

to

p u r c h a s e

the

e a s e h o l d .

d

he

Chairman

an d

Secretary

are

authorized

to

xecute

the

h o r e c r e s t

O p t i o n

Agreement

attached

her e to

and

ncorporated

h e r e i n .

2

he

x e c u t i v e

D i r e c t o r

and

e n e r a l

C o u ns e l

o

he

g e n c y ,

and

heir

respective

s t a f f s

and

c o n s u l t a n t s ,

ae

authorized

to

a k e

al

ther

i n c i d e n t a L

actons

in

onnection

with

ths

r e s o l u t i o n .

3

he

C h a i r m a n .

and

e m b e r s

h e r e b y

fnd

hat

the

acquisition

of

he

L e a s e h o l d

and

the

e v e l o p m e n t

o

the

o t e l

are

e c e s s a r y ,

ae

ublic

p u r p o s e s , ' \

Nll

b e n e f i t

the

publ ic,

and

re

parts

o

and

are

onsistent

wth

the

ity

C e n t e r

H i s t o r i c

C o n v e n t i o n

Village

8/15/2019 267-97 RDA Incomplete (1)

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4

The

h a i r m a n

and

M e m b e r s

h e r e b y find

that

the

c q u i s i t i o n

of

the

L e a s e h o l d

and

the

e v e l o p m e n to

the

otel

ae

a u t h o r i z e d

by

hapter

163

Florida

Statutes.

5

bis

r e s o l u t i o n

sbaI

ake

effect

immediately

upon

adopton

A S S E D

A N D

A D O P T E D

th is

19th

day

o

M a r c h ,

9 9 7 .

CHAIRMAN

ATTEST:

R o b d '

f O A ~

S E C R E T A R Y

APPROVED

ItS

TO

8/15/2019 267-97 RDA Incomplete (1)

4/28

Miami

Beach

Redevelopment

Agency

1700

onvent ion

Center

Drive

Miami

Beach,

Forida

33139

T e l epho ne : (

305)

673

7193

Fax

05

673

77 2

DATE

T O : R O M :

S U B J E C T :

R E D E V E L O P M E N T

A G E N C Y

M E M O R A N D U M NO

97-

9

arch

19

1997

har.

man

a n d

M e m b e r s

o

t h e

Boad

oh e

Mam

B e a c h


Agency

Jose

G~

Ca~

edrosa. ,.

J./;~

x e c u t ~

ve

D

rector .

E S O L U T I O N

OF

H A I R M A N

AND

E M B E R S

OF

HE

MIAMI

BEACH

R E D E V E L O P M E N T

AGENCY(

THE

AGENCY)

U T H O R I Z I N G

THE

G E N C Y

TO

ACQUIRE

THE

SHORE

CREST

HOTEL

E A S E H O L D INTEREST;

U T H O R I Z I N G

THE

A G E N C Y

TO

AY $ 3

1

ILLION

FOR

UCH

A C Q U I S I T I O N ;

A U T H O R I Z I N G

THE

HAIRMAN

AND

SECRETARY

TO

EXECUTE

T HE

SHORE

CREST

OPTON

A G R E E M E N T

A T T A C H E D

H E R E T O

AND I N C O R P O R A T E D

HEREN

N D

A U T H O R I Z I N G THE

TAKNG

OF ALL

INCIDENTAL

ACTONS

BUT

ALL

OF

HE

A B O V E

SUBJECT

TO

HE

PROR

P P R O V A LOF

THE

E X E C U T I V E

D I R E C T O R

AND

G E N E R A L

C O U N S E L

OF

HE

A G E N C Y .

A D M I N I S T R A T I O N

R E C O M M E N D A T I O N :

A p p r o v e

the

Resolu t ion . B A C K G R O U N D

On

M a r c h

5

997,

the

Miami

Beach


Agency (

the Agency ),

the

ty

o

Mam

Beach(

h e Cty ),

D P

Roya

Palm

Hote

L i m i t e d

C o m p a n y (

RDP)

nd

RDP

h o r e c r e s t

Hotel

Limited

C o m p a n y

executed

a

ete

o

Inen (

LO )

ertaining

o

he

e v e l o p m e n t

a n d

operation

o

theoyal

Pam

r o w n e

Plaza

Resort,

an

African-

A m e r i c a n owned

convention

cener

hote

in

Mam

B e a c h .

Unde

the

terms o

he

LO,

the

g e n c y '

s

otal

funding

obligation t o w a r d s

the

project

is$

10

illion,

o

hch$

5

illion

has

been

spent

to

cquire

the

ee

titleto

he

Roya

Palm

p r o p e r t y .

The

remaining $

4

M i l l i o n

wll

be

s e dto

acquire

the

S h o r e c r e s t

H o t e l

p r o p e r t y

and

he

e a s e h o l d

interest

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5/28

RESOLDnON

NO_

A

RESOLUlTON

OF

THE

C H A . .

&

AJ.

V

AND

ME

IBERs

OF

THE

MlA.

M

BEACH

R E D E V E L O P M E ~

iT

AGENCY (

THE "

AGENCY )

UTHORIZING

HE

AGENcY

TO

A C Q U l l .U

THE

SHORECREST

HOTEL

LEASEHOLD

NTEREST;

A U T R O R l Z l 1 'iG

THE

AGENCY

TO

PAY$

3

M I L L I O N

FOR

SUCH

C Q U I S l T I o N ;

A U T H O R I Z I N G

TI IE C H A I R .

i\:

N

A

l"

D

E R E T R Y

T O ,

E X E c l J

J

E

HE

SB

R E C R E S T

PTON

AG

EE\

1:N r

ATTACHED

HERETO'

M

D

N C O R P O R A T E D

l I E R E I N ;A N D

A D T f . .

f:

RZ:

N

G

TrE

TAKING

OF

L L I N C I D ~

TAL

A C I T O N S ;

BUT

LL

F

THE

B O V E

S U B J E c T T O '

THE

P R I O R A P P R O V

AL

F

T H E

E X E c t J T I V E

DIRECTOR

A N D

GEJ.'

fERAL

COUNSEL

OF

THE

A G E N c y .

W l IE R E A s .

on

Mach

5

997 ,

he

i a m i

B e a c h


A g e n c y (

the

g e n cY

J

the

City

o

i a m i

Beach (

the,~

ty.

D P R O Y a l

Palm

Hotel

Limited

C o m p a n y (

R

DP)

nd

DP

S h o r e c r e s t

Hote

Limited

C o m p a n y

entered

into

that

certain

Letter

ofID.

ten. (

he....

LO).

h i c h

ses

orth.

m o n g

other

thngs.

the

general.

e n u s

o

r o p o s e d

definitive

a g r e e m e n t s

c o n c e r n i n g

thee v e l o p m e n t

an d o p e r a t i o n

o

an

fric::

an-

A m e r i c :

an

w n e d

c o n v e n t i o n

hotel (

the

ote )on

he

Roya

P a l m

Hotel

property,

wh ich .

is.

owned

by

thegency.

n d

the

S h o r e c r e s r

Hote

p r o p e r t y .

which

is

o

be

w n e d

by

theA:.ency;

and

W H E R E A S ,

the

LO

o n t e m p l a t e s

tha

th e

Agency

wll

e c o m e

the

owner

oJ

m o n g o t h ~

p r o p e r t y .

the

l e a s e h o l d

interest

P e r t a i n i n g

to

he

Sho~

otel

p r o p e r t y

the~

ehold);

and

B'

E R E A s ,

the

OI :

u r t h e r

c o n t e m p l a t e s

that

the

A g e n c yVJ

1

acquire

the

e a s e h o l d

by

virtneof

the~

ro m

RD1

r

u

afliliamd

eatityto

the

Agency

of

a

purchase

a n d s a I e

a g r e e m e n t

P e r t a i n i n gto

he

e a s e h o l d

and

the

CODStIl:

l I nm :

ion

f

tha

g r e e m e n t '

b e t w e e n

the

g e n c y ,

asu r c h a s e r ; ,

and

the

e l l e r ;

and

B'

EREAs.

the

g r e e m e n t

to

p u r c h a s e

the

L e a s e h o l d

provides

for

a

losing.

on

or

befure

a r c l t

31 .

1997

and

there

re

no

egw ,-

Iy

s c h e d n l e d

Ageocy

Boar d

m e e t i n g s

in

a r c h

after

the

Mach

9

m e e t i n g ;

and

W

E R E A s ~

there

re

v a r i o u s

conditions

to

he

l o s i n g

on

th e

a c q u i s i t i o n .

o

he

L e a s e h o l d which

m u s t

be

et

by

the

seler;

nd

W

E R E A s ,

the

Agency

and

RDP

have

e got ia t e d

the

eDl lS

o

tha

e r t a i n

S h o r e c r e s t O p t i o ngreement.

t t a c h e d .

hereto

n d

m c o I p o r a t e d

heren

nd

VB:

ERE

s.

he


of

thee a s e h o l d

and

the


o

he

ho te l

ae

pats

o

and

a

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6/28

4

The

h a i r m a n

and

M e m b e r s

h e r e b y

find

that

the

c q u i s i t i o n

of

the

L e a s e h o l d

and

the

e v e l o p m e n t

of

the

otel

ar e a u t h o r . . .

z e d

by

hapter

163,l o r i d a

Stal:

ues

5

bis

r e s o l u t i o n

sha

ake

effect

i m m e d i a t e l y

upon

dopt ion. .

P

S E D

A N D

A D O P T E D

ths

day

o

M a r c h .

1997.

CHAJRJ.-

1AN

A

l E S T :

S E C R E T A R Y

APPROVED

AS

TO

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7/28

SHORECRESTOPTIONAGREEMENT

This

Shore

crest

Option

Agreement

is

made

and

entered

into

as

of

the _

day

of ,

1 9 9 7 ,

by

and

m o n g

RDP

ROYAL

PALM

HOTEL

LIMITED

C O M P A N Y

a

lorida

limited

liablity

c o m p a n y (

RP");

and

the

IAMI

BEACH

E D E V E L O P M E N T

A G E N C Y ,

a

F lo r i d a

publ ic

body

o r p o r a t e

and

politic ("

Agency )

B A C K G R O U N D

1

n

F e b r u a r y

1993

the

Cty

CenterlHistoric

C o n v e n t i o n

Vllage

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

in

iami

Beach,

Forida

w a s

o f f i c i a l l y

established

by

th e

adopton

o

a

Redevelopment

Plan (

the "


Plan").

The


Plan

r e p r e s e n t s

the

f f o r t

and

c o m m i t m e n t

of

the

g e n c y

to

o s t e r

the


o

convention

quaity

otels,

ancillary

i m p r o v e m e n t s

and

acilities,

a n d

n e c e s s a r y

l i nkag es

to

the

iami

Beach

C o n v e n t i o n

C e n t e r .

Pursuan

to

he


P l a n ,

the

g e n c y

has

acquired

the

o y a l

Palm

Hotel (

the

Royal

Pam

o t e l

Property )

ocated

a

545

Collins

A v e n u e ,

Miami

B e a c h ,

Florida.2

The

g e n c y

has

ecided

to

r o v i d e

the

Mrican

m e r i c a n

c o m m u n i t y

wth

an

p p o r t u n i t y

in

he

o s p i t a l i t y

industry

by

a k i n g

a v a i l a b l e

the

oya

Pam

o t e l

and

ad d i t i o na l

financial

incent ives

for

an

Mrican-

A m e r i c a n

owned

o t e l (

the "

Hote ).

3

n

f u r t h e r a n c e

o

he


Pan

he

A g e n c y

p u b l i s h e d

R e q u e s t

for

P r o p o s a l s

No.

45

5 9 6 (

he

R F P )

e e k i n g

bds

or

h e


and

o p e r a t i o n

o

a

c o n v e n t i o n

hotel

toe

o w n e d

by

African-

A m e r i c a n s .

4

n

u ne

5

1996

f te r

a

ublic

revew

process

h e

A g e n c y

s e l e c t e d

RP

from

8/15/2019 267-97 RDA Incomplete (1)

8/28

representatives

of

the

Agency

to

negotiate

the terms under

which

RP

would

d e v e l o p ,

ownand

operate

the convention hotel in accordance

with

the

requirements

of the RFP.

5

As

a r t of P '

s

e s p o n s e tothe

R F P ,RP

f f e r e dtoa u s e

the

p r o p e r t y

lying

m m e d i a t e l y to

the

o u t h

o

the

Royal

Palm

Hote

Property

c ommon l y

k n o w n

asthe

h o r e c r e s t

Hotel (

he

h o r e c r e s t

Hote Prope r ty )

a v i n gatree

a d d r e s s

o535

Collins

Avenue, Miami B e a c h , F l o r i d a ,

to

e

d e v e l o p e d

as

part

ohe

Hote.

An a f f i l i a t eoP

enerednt o

contracts

to

c q u i r e the

fee

title,

and

ther o u n d

lessor

andground

e s s e e

i n t e r e s t sin

he

hore

crest

H o t e l

P roper t y .

6he

Agency

has

f f e r e d

f i n a n c i a l

i n c e n t i v e sto

Pin

connection

w i t h

the d e v e l o p m e n t of

the

o t e l .A

portion

of

the

gency'

s

fundng

t o w a r d s

the


o

heo t e l

was

se d

toa c q u i r e th e fee

title

to

he

Royal

Palm

Hote

P r o p e r t y ,

w h i c h p r o p e r t y

is

o

e

l e a s e d

on

a

long

e rm b a s i s

p u r s u a n t

toa

round

lease ( t h e

G r o u n d Le a se )toP .

The

ost

o

c q u i r i n g the

Royal P a l m

Hotel

P roper t y

by

the

gency

was

p p r o x i m a t e l y $

55

i l l i on .

7

ince

June

59 9 6 ,

RP

and

h e Agency

have

been

n v o l v e d

inxtensive n e g o t i a t i o n s

to

t r u c t u r e

a g r e e m e n t s

w h e r e b y

the

Hoew o u l d

be

developed

b y

RP

Durng

he

c o u r s e

o

hose

n e g o t i a t i o n s it

b e c a m e

a p p a r e n t

to

al

a r t i e s

that

it

s

n

thebest

i n t e r e s t of

theA g e n c y

tha

the

g e n c y a c q u i r e the

eetitle

and

easehold

i n t e r e s t s

inhe

hore crest

Hote

Property,

ermina te

the e x i s t i n g

ground

lease (

the

x i s t i n g

Gound

ease )

on

a id

p r o p e r t y ,

and

l e a se

th e

S h o r e c r e s t

HotePr op e r ty

to

RPasa r t o

the

r o u n d

Lease

The

G e n e r a l

Counsel

of

the

Agency

h a s

d e t e r m i n e d

thathe

c q u i s i t i o n

o

he

i n t e r e s t s

in

8/15/2019 267-97 RDA Incomplete (1)

9/28

of

the

Shore

crest

Hotel

Property

to

RP

as

part

of

the

Ground

Lease is

not

a

material

modification of

RP'

s

bid

in

response

to

the

RFP.

8

i m u l t a n e o u s

with

the

x e c u t i o n

o

ths

g r e e m e n t ,

RP

has

a u s e d

to

be

s s i g n e d

to

the

g e n c y

all

of

its

ight,

title

and

n t e r e s t

in

the

greement

d e s c r i b e d

in

x h i b i t

t t a c h e d

h e r e t o

anda d e

a

at

h e r e o f (

he

easehold

Contract ) ,

whch

g r e e m e n t

is

the

u r c h a s e

and

sae

greement

r e l a t i n g

to

the

c q u i s i t i o n

o

the

easehold

i n t e r e s t (

he

e a s e h o l d

Interest )n d e r

the

xisting

G r o u n d

Lease,

and

the

g e n c y

has

l o s e d

on

the

transaction

c o n t e m p l a t e d

by

sad

easehold

C o n t r a c t

and

has

c q u i r e d

the

e a s e h o l d

Interest.

9.

Li t igat ion

is

e n d i n g

r e l a t i n g

to

he

a g r e e m e n t (

he

Fee

o n t r a c t )

d e s cr i be d

in

Exhibit "

B

t t a c h e d

hereto

a n d

m a d e

a

pat

e r e o f

concerning

th e


of

the

fee

title

andh e

lessor'

s

n t e r e s t

in

he

xisting

Ground

L e a s e

c o l l e c t i v e l y ,

he

F e e

I n t e r e s t s ) ,

10

n th e

even

o

avorable o u t c o m e

or

se t t le me n t

of

sad

i t i g a t i o n ,

RP

n t e n d s

to

cause

h e

F e e

Interests

to be

conveyed

to

the

g e n c y .

11.

The

A g e n c y

and

RP

as

o

he

date

hereof,

a v e n ot

yet

finalized

al

o

he

definitive

a g r e e m e n t s

w h i c h

are

o n t e m p l a t e d

by

the

parties

relative

to

the

w n e r s h i p , o p e r a t i o n

and


o

h e

H o t e l .

12

The

rincipals

o

RP

a ve

c o n s i s t e n t l y

e x p r e s s e d

an

n t e n t i o n

and

esire

to

e v e l o p

th e

Sh ore c re s t

H o t e l

Property

as

a

s e p a r a t e

a n d

d i s t i n c t

non

o n v e n t i o n

h o t e l

in

h e

event

RP

sn a b l e

to

each

g r e e m e n t

8/15/2019 267-97 RDA Incomplete (1)

10/28

ownership,

operation

and


of

the

Hotel to

be

constructed

on

both

the

R o y a l

Palm

Hotel

and

Shore

crest

Hotel

Properties.

13.

RP

ould

not

have

been

s s i g n e d

the

easehold

C o n t r a c t

to

the

A g e n c y

and

RP

will

not

g r e e

to

a u s e

the

Fee

n t e r e s t s

to

be

o n v e y e d

to

the

gency

w i t h o u t

the

gency

a g r e e i n g

to

nter

into

ths

g r e e m e n t

p r o v i d i n g

for,

nter

alia,

an

p t i o n

in

a v o r

of

RP

to

cquire

f rom

the

g e n c y

the

e a s e h o l d

I n t e r e s t

for

the

purposes

d e s c r i b e d

in

the

reced ing

S e c t i o n ,

on

erms

e r e i n a f t e r

set

f o r t h ,

in

the

v e n t

the

g e n c y

and

RP

are

n a b l e

to

reach

mutually

acceptable

a g r e e m e n t s

r e l a t i n g

to

the

wnership,

p e r a t i o n

and

e v e l o p m e n t

of

the

Hotel .

14

The

g e n c y

consistently

h a s

expressed

its

wil l ingness

to

institute

eminent

d o m a i n

litigation

a n d

p r o c e e d i n g s

to

acqure

the

Shorecrest

H o t e l

Poperty

in

o n n e c t i o n

wth

h e


o

o n v e n t i o n

h o t e l

if

t

e e m s

s u c h

to

be

ecessay.

O W ,

THEREFORE,

in

c o n s i d e r a t i o n

o

he

f o r e g o i n g

and

for

o t h e r

good

and

a l u a b l e

c o n s i d e r a t i o n ,

the

receipt

a n d

adequacy

o

which

ae

e r e b y

a c k n o w l e d g e d ,

the

a r t i e s

agree

as

o l l o w s :

1

ecitals.

The

f o r e g o i n g

r e c i t a l s

ae

rue

and

correct

and

n c o r p o r a t e d

h e r e i n .

2

cquisi t ion

o

he

e a s e h o l d

Interest.

S i m u l t a n e o u s

wth

h e

e x e c u t i o n

and

e l i v e r y

of

ths

g r e e m e n t

and

h e

e x e c u t i o n

and

e l i v e r y

of

the

ss ign m e n t

of

the

L e a s e h o l d

C o n t r a c t

to

he

Agency,

the

Agency

has

a c q u i r e d

the

easehold

I n t e r e s t .

The

A g e n c y

expended

the

sum

of $

00,

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Leasehold

Interest

at

closing (

Agency'

s

Funding )

and

RP

expended

the

sum

of

approx. $

956,

5 0 0 ] (

RP

so n t r i b u t io n ) .

3

o t i o n

to

urchase

th e

Leasehold

I n t e r e s t .

In

c o n s i d e r a t i o n

of

the

p a y m e n t

P'

s

o n t r i b u t i o n

and

for

othergood

nd

valuable

c o n s i d e r a t i o n ,

the

g e n c y

h e r e b y

g r a n t s

to

P

the

p t i o n (

he

p t i o n )

to

purchase

the

L e a s e h o l d

Interest

on

the

e r m s

ando n d i t i o n s

set

forth

in

the

e r m s

of

Purchase

and

Sale

attached h e r e t o

and

made

a

part

e r e o f

as

Exhbt

C(

h e

P u r c h a s e

Terms ).

In

he

event,

on

or

before

O c t o b e r

31,

1997,

the

g e n c y

and

P

are

unabe

o

n w i l l i n g

for

any

r e a s o n

whatsoever

in

h e

sole

a n d a b s o l u t e

discretion

o

e a c h

o

he

parties

hereto

to

xecute

and

eliver

m u t u a l l y

a c c e p t a b l e

written

a g r e e m e n t s

r e l a t i n g

to

h e

o w n e r s h i p ,

o p e r a t i o n

and

e v e l o p m e n t

o

the

oyal

Palm

Hote

and S h o r e

crest

Hote

r o p e r t i e s

as

snge

o n v e n t i o n

ho t e l

c o m p l e x

as

c o n t e m p l a t e d

by

he

RFP

i n c l u d i n g ,

w i t h o u t

l imitat ion,

th e

gound

e a s e ,

the

erms

o

u b o r d i n a t i o n

of

ground

r e n t

p a y m e n t s

d u e

the

A g e n c y

in

favor

o

P '

s

irs

m o r t g a g e

holder,

a

a r a g e

agreement,

a


a g r e e m e n t

and

c o n v e n t i o n

c e n t e r

a g r e e m e n t ,

RP

sha

a ve

the

ight

to

x e r c i s e

th e

Option.

T h e

O p t i o n s h a l l

be

e x e r c i s e d

by

RP

if

at

al,

by

r i t t e n

notice

to

he

Agency,

in

ccordance

w i t h

the

notice

provisions

c o n t a i n e d

in

he

Purchase

T e r m s

n o t

later

t h a n

N o v e m b e r

30

9 9 7

a

5

0

p

m (

he

O p t i o n

Period).

If

he

p t i o n

is

ot

exercised

in

the

m a n n e r

described

ab ove,

th e

A g e n c y

s h a l l

repay

toRP

an

moun

equa

to

RP

s

o n t r i b u t i o n

on

o

b e f o r e

D e c e m b e r

7

997

h e r e u p o n

the

a r t i e s

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Shore

crest

Hotel

Property,

including

any

amendments,

modfications

or

a

termination

of

the

Existing

Ground

Lease,

wthout

the

prior

written

consent

of

RP,

which

consent

may

be

wthheld

by

RP

in

its

sole

and

absolute

dscretion.

6

e s e r v a t i o n

o

il '

hs

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 ,

the

gency

e s e r v e s

the

r i g h t , in

its

sole

and

bsolute

d i s c r e t i o n ,

to

nitiate

eminent

domain

l i t i g a t i o n

and

r o c e e d i n g s ,

a

any

time

and

g a i n s t any

e r s o n s

o

entities

i n c l u d i n g ,

but

noti m i t e d

to,

RP

wth

e g a r d

to

the

e a s e h o l d

and/

or

the

fee

interests

c o n c e r n i n g

the

h o r e c r e s t

Hote

Property;

provided,

h o w e v e r ,

RP

e s e r v e s

the

r i g h t

to

o n t e s t

the

g e n c y '

s

i g h t

to

r e v a i l

in

sad

r o c e e d i n g s

based

upon,

nter

alia,

ths

Agreement.

7

Miscellaneous.

7

1

Ths

g r e e m e n t

has

e e n

neg o t ia ted

a n d

e x e c u t e d

in

Forida

it

sha

be

construed

and

g o v e r n e d

inc c o r d a n c e

with

the

a w s

o

the

Stae

of

Florida,

w i t h o u t

a p p l i c a t i o n

o

c o n f l i c t s

of

aws

p r i n c i p l e s .

7

In

h e

event

any

e r m

o

p r o v i s i o n

o

hs

g r e e m e n t

is

d e t e r m i n e d

by

p p r o p r i a t e

judcaauthority

to

be

llegal

or

o t h e r w i s e

i n v a l i d ,

such

p r o v i s i o n

sha

be

g i v e n

its

e a r e s t

lega

m e a n i n g

or

be

construed

as

e l e t e d

as

u c h

a u t h o r i t y

determines,

and

h e

remainder

of

this

A g r e e m e n t

s h a l l

be

c o n s t r u e d

to

be

in

full

o r c e

and

effect.

7

In

he

vent

o

ny

litigation

b e t w e e n

the

a r t i e s

under

this

Agreement,

the

r e v a i l i n g

party

sha

e

e n t i t l e d

to

r e a s o n a b l e

attorneys'

ees .

Wherever

p r o v i s i o n

is

ade

in

h is

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70

All

o

h e

t e r ms

o

hs

g r e e m e n t ,

sha

be

i n d i n g

upon

and

h a l l

inure

toh e

b e n e f i t

o

h e

p a r t i e s

to

his A g r e e m e n t

and

he

e s p e c t i v e

s u c c e s s o r s

and

s s i g n s .

7

1

y p e w r i t t e n

or

handwrit ten

p r o v i s i o n s

w h i c h

ae

n s e r t e d

in

o

t t a c h e d

to

his

A g r e e m e n t

as

d d e n d a or

i d e r s

and

h i c h

b e a r

the

ignature

o

the

a r t y

a g a i n s t

whom

n f o r c e m e n t

o

hat

provision

is

sought

shall

control

al

r i n t e d

or

pretyped

p r o v i s i o n s

o

this

A g r e e m e n t

w i t h

w h i c h

they

may

be

n

o n f l i c t .

7

2

Ths

A g r e e m e n t

m a y

be

e x e c u t e d

in

o u n t e r p a r t s .

7

13

T i m e

is

o

he

essence

in

hs

g r e e m e n t .

IN

I T N E S S

W H E R E O F ,

the

p a r t i e s

have

executed

ths

A g r e e m e n t

the

ay

and

y e a r

first

written

b o v e .

Signed,

sealed

and

delivered

in

the

r e s e n c e

o:

DP

R O Y A L

PALM

H O T E L

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EXHIBIT "

A"

Purchase and

Sale

Agreement

dated

February

2

9 9 6 ,bynd

beween

A C O B

1535

P R O P E R T I E S ,

I N C . (

Seler )

and

R

O N A H U E

P E E B L E S ,

INC.,

andr assigns

P u r c h a s e r ) ,

asm e n d e dbym e n d m e n t

to

Purchase

and

Sae

A g r e e m e n t

datedMarch7

1996

by

S e c o n d

A m e n d m e n t

to

u r c h a s e

and

S a l e

A g r e e m e n t

daedu n e17

9 9 6 and

by

hird Amendment

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EXHIBIT "

B"

Purchase and Sale

Agreement

dated

February 28,

1 9 9 6 ,

by

and

etween

Ignacio

A n d r e s C a r d o n a andGsea L i z a m a

Cardona,Co-

rustees

under

Trust

Agreement

dated D e c e m b e r

29,

9 7 6 (

Seler ),

and

The

R

o n a h u e

P e e b l e s

C o m p a n i e s ,

In

nd/o

a s s i g n s (

Purchaser"),

s

amended

by

A m e n d m e n t

to

P u r c h a s e and

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EXHIBIT "

C"

TERMS

OF

PURCHASE

AND

SALE

1

U R C H A S E

AND

SALE.

u b j e c t

tothee r m s

o

ths

n s t r u m e n t ,

Seller

a g r e e s

toe ll

to

u r c h a s e r

and

Purc h a s e r

a g r e e s

to

u r c h a s e

from

S e l l e r

the

following

property (

o l l e c t i v e l y ,

the

P r o p e r t y ) :

1

1

T h e

Leas eho l d

Inerest;

1

2

Al

uildings,

t r u c t u r e s

and

other

m p r o v e m e n t s

situated

on

the

Shorecrest

Hotel

P r o p e r t y

to

the

extent

ownedby

eller;

1

3

Al

e p o s i t s ,

licenses,

e r m i t s ,

and

contract

r i g h t s

p e r t a i n i n g

to

w n e r s h i p

and

o

p e r a t i o n

o

the

I m p r o v e m e n t s ,

o

easehold

Interest,

if

n y ;

1

4

l

strips,

gores,

e a s e m e n t s ,

p r i v i l e g e s ,

r i g h t s -

o-

way,

i p a r i a n

and

ther

w a t e r

rights,

r ights

to

ands

underyng

any

adacen

s t r e e t s

or

roads,

n d other

t enements,

e r e d i t a m e n t s

and

a p p u r t e n a n c e s ,

if

any,

pertaining

to

or

accruing

to

the

enefit

o

h e

owner

o

h e

L e a s e h o l d

Inerest.

2.

CLOSING

D A T E .

Subect

to

the r

p r o v i s i o n s

o

hs

n s t r u m e n t

for

extension

or

t e r m i n a t i o n ,

closing on

the

r a n s a c t i o n

d e s c r i b e d

in

hi s

i n s t ru m e n t (

the

l o s i n g )

sha

be

hed

a

he

ffices

o

he

a t t o r n e y s

fo

urchaser,

H o l la n d &

n i g h t ,

701

B r i c k e l l

A v e n u e ,

Mam,

F l o r i d a

33131,

on

or

e f o r e

D e c e m b e r

31,

1 9 9 7 ,

on

a

ae

to

be

e t e r m i n e d

by

u r c h a s e r

u p o n

not

less

h a n

ten(

0)

days'

prior

writ ten

n o t i c e

to

S e l le r (

the

losing

Dae),

In

he

even

a

portion

of

the

Purchase

Pices

o

be

erived

f r o m

i n s t i t u t i o n a l

f i n a n c i n g

o

e f i n a n c i n g ,

the

e q u i r e m e n t s

of

the

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20/28

of

mortgage proceeds,

shall

control,

provided

that

disbursement

shall

occur

on

the

d a y

of

Closing.

3

U R C H A S E

P R I C E .

3

1

he

to ta l

purchase

prIce (

the

P u r c h a s e

Price )

to

be

a id

by

u r c h a s e r

to

Seller

for

the

roperty

is

hree

Mllion

One

H u n d r e d

T h o u s a n d

a n d

No/

0 0

Dollars ($3

00 ,

000,

n

cash

a

Closing,

subject

to

p r o r a t i o n s

and

a d j u s t m e n t s

as

r o v i d e d

herein,

to

be

paid

by

cashier'

s

heck

o

y

wrer a n s f e r .

4

ITLE.

u r c h a s e r

sha

o b t a i n

its

w n

title

v i d e n c e .

Seller

sha

o n v e y

to

u r c h a s e r

at

c l o s i n g ,

good

and

a r k e t a b l e

and

n s u r a b l e

title

to

h e

Leasehold

Interest,

w i t h

w a r r a n t y

o

itlei m i t e d

to

a w f u l

claims

o

al

e r s o n s

c l a i m i n g

by, t h r o u g h

or

unde

eller,

free

and

lear

o

al

i e n s ,

e n c u m b r a n c e s ,

easese n a n c i e s ,

c o v e n a n t s ,

conditions,

restrictions,

r ights-

o-

ay ,

eas em ent s

and

other

matters

a f f e c t i n g

title,

x c e p t the

ollowing (

the

e r m i t t e d

E x c e p t i o n s ) :

4.

1

Ad

valorem

rea

esae

a x e s

fo

the

ear o

closing;

4.

2

ll

a p p l i c a b l e

zoning

o r d i n a n c e s

and

e g u l a t i o n s ;

4

3

R i g h t s ,

tte

i n t e r e s t ,

if

n y ,

of

the

ubl ic

to

se

as

public

b e a c h

o

e c r e a t i o n a l

area

any

art

of

the

ro p e r t y

l y i n g

b e t w e e n

th e w a t e r

abutting

th e

S h o r e

crest

H ote l

P r o p e r t y

and

h e

most

inland

o

any

o

heo l l o w i n g : (

a

he

a t u r a l

line

of

v e g e t a t i o n ; (

b

he

most

e x t r e m e

high

w a t e r

mark; (

c

the

u l k h e a d

line;

o

any

t h e r

line

which

has

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upon

such

payment,

both

parties

shall

be

released

from

all

further

obligations

under

this

Agreement;

or

7

1

3

e e k

speci f ic p e r f o r m a n c e

o

eler'

s

b l i g a t i o n s

h e r e u n d e r .

7

n

the

v e n t

Purchaser

fals

o

purchase

the

e a s e h o l d

Interest

in

c c o r d a n c e

with

the

t e r m s

hereof,

eller

sha

pay

to

P u r c h a s e r

a n

amoun

equa

to

RP

s o n t r i b u t i o n ,

together

wth

ny

a m o u n t s

due

P u r c h a s e r

p u r s u a n t

to

he

L e t t e r

of

Intent

d a t e d

Mach

5

997,

as

it

may

be

m e n d e d ,

b e t w e e n

the

art ies;

w h e r e u p o n

both

paties

shall

be

released

from

l

further

o b l i g a t i o n s

under

this

A g r e e m e n t .

8

R O R A T I O N S .

All

pr o r a t ab l e

i t e m s ,

i n c l u d i n g

real

estate

taxes,

sh

be

rorated

as

of

the

osng

D ate .

9

MPROVEMENT

L I E N S .

C e r t i f i e d

l iens

for

o v e r n m e n t a l

i m p r o v e m e n t s

or

special

a s s e s s m e n t s

as

f

the

Clos in g

D a t e ,

if

n y ,

are

th e

r e s p o n s i b i l i t y

o

he

e l l e r

and

shall

be

aid

a

l o s i n g .

10

C L OSI N G

C O S T S .

A

h e

C l o s i n g ,

P u r c h a s e r

shall

pay

the

o c u m e n t a r y

stamps

and

surtax,

if

any,

due

on

the

s s i g n m e n t

of

L e a s e h o l d

Inerest.

Each

p a r t y

shall

bear

the

e c o r d i n g

costs

o

any

i n s t r u m e n t s

received

by

hat

party,

except

that

Seller

shall

pay

the

r e c o r d i n g

c o s t s

on

d o c u m e n t s

n e c e s s a r y

to

clear

title.

Pur c h a se r

sha

pay

for

its

wn title

i n s u r a n c e

policy

and

urvey .

11

CLOSING.

11.

1

e l l e r

sha

o n v e y

title

to

the

L e a s e h o l d

Interest,

wth

i m i t e d

w a r r a n t y

8/15/2019 267-97 RDA Incomplete (1)

24/28

subject

only

to

the Permitted

Exceptions.

Seller

shall

also

deliver

to

Purchaser at

the

Closing:

1 1 .

1

a

echanic'

s

ien a f f i d a v i t ,

to

he

title

n s u r e r

and

Purchaser,

in

fom

c c e p t a b l e

to

u r c h a s e r '

s

title

n s u r e r

to

deletethe

t a n d a r d

e x c e p t i o n

relat ing to

suchi e n sin

u r c h a s e r '

s

l e a s e h o l d

title

insurance p o l i c y ;

11.1

2

n

affidavit,to

th e

Ttlen s u r e r

and

u r c h a s e r , that,to

Seler

s

n o w l e d g e , there

ae

no

u n r e c o r d e d

e a s e m e n t s

a n d

tha

S e l l e r

has

d o n e

noth ing

to

h a n g e

the

state

of facts

shown

n

theu r v e y ,

in

ormc c e p t a b l e

to

u r c h a s e r '

s

Ttlensurer

to

de l e te

thet a n d a r d

exceptions r e l a t i n g

to

uch

maters

in

P u r c h a s e r '

s

easehold

title nsurance

policy;

11

3

aap

affidavit

a n d

i n d e m n i f i c a t io n

a g r e e m e n t

a c c e p t a b l e

to

Tten s u r e r for

purposes

o

d e l e t i n g

he

gap

ro m

P u r c h a s e r '

si t l e

c o m m i t m e n t

and

policy;

11

1

i n s t r u m e n t s

n e c e s s a r y

to

lea

ttle

if

ny,

n c l u d i n g

those

required

under

this

Ag reemen t

to

remove

s t a n d a r d

e x c e p t i o n s

from

the

title

policy;11

15

app ro p r ia te

a s s i g n m e n t s

o

eposits,

i c e n s e s ,

e a s e m e n t s ,

righs

o-

wayo n t r a c t rights,

n t a n g i b l e

righs

and

t h e r

propertyand r i g h t s

i n c l u d e d

inhi s

t r a n s a c t i o n ;

8/15/2019 267-97 RDA Incomplete (1)

25/28

11 .

1

7

a

on-

foreign

certificae

nd

other

d o c u m e n t a t i o n

as

ay

be

p p r o p r i a t e

anda t i s f a c t o r y

to

u r c h a s e r

to

mee

the

on

i t hho ld ing

r e q u i r e m e n t s

u nd er

FI RPT A

andany

t h e r

federa

s t a t u t e

o

egulat ions;

11

1.

8

an

p p r o p r i a t e

r e p o r t i n g

form to

be

u b m i t t e d

wth

the

e e d

a

ime

oe c o r d a t i o n ;

11.

1

9

rovided

th e A g e n c y

then

olds

title

to

he

feen t e r e s t

in

the

hore

crest

H o t e l

P r o p e r t y ,

an

m e n d m e n t

to

the

x i s t i n g

G r o u n d

Lease

in

orm

reasonably

a c c e p t a b l e

to

u r c h a s e r

and

S e l l e r ,

c o n t a i n i n g

p r o v i s i o n s

customarily

contained

in

r o u n d l e a s e s

so

so

p e r m i t

i n s t i t u t i o n a l

l e a s e h o l d

f i n a n c i n g ,

on

a

n o n s u b o r d i n a t e d

basis,

o

a

o t e l

onhe

Shorecrest

Hote

Property;

n d

11

1

0

an

n s t rum e n t ,

in

o rm

a n d

c o n t e n t

r e a s o n a b l y

a c c e p t a b l e

to

u r c h a s e r ,

reinstating

the

xist ing

G r o u n d

L e a s e

if,

he

t ime

of

l o s i n g ,

sa id

Exist ing

G r o u n d

Lease

has

een

merged

i n t o

the

fee

title

in

the

hore

crest

Hote

P r o p e r t y

then

owned

by

the

Seler.

11

See

nd

Purchaser

sha

each

execute

such

other

o c u m e n t s

as

re

r e a s o n a b l y

n e c e s s a r y

to

o n s u m m a t e

this

t r a n s a c t i o n .

12

ROKERS.

The

parties

each

represent

a n d

w a r r a n t

to

h e o t h e r

tha

no

rea

s t a t e

broker,

a l e s m a n

or

finder

was

i n v o l v e d

in

h is

t r a n s a c t i o n .

If

a

laim

fo

r o k e r a g e

o

similar

f e e s

in

o n n e c t i o n

wth

his

t r a n s a c t i o n

isa d e

by

n y

b r o k e r ,

salesman

o

inder

c l a i m i n g

to

ave

deat

through

or

on

e h a l f

o

one

o

he

p a r t i e s

hereo,

then

tha

party

shall

i n d e m n i f y ,

defend

and

hold

8/15/2019 267-97 RDA Incomplete (1)

26/28

reasonable

attorneys'

fees

and

court

costs,

including

those for

appellate

matters

and

post judgment

p r o c e e d i n g s )

wth

respect

to

said

claim

for

brokerage.

The

provisions

of this

section

shall

survive

the

Closing

or

the

termination or

cancellation

of

the

Option.

13

SSIG

N A B I L I T Y .

The

r i g h t

to

c q u i r e

the

e a s e h o l d

Interest

m a y

be

s s i g n e d

by

u r c h a s e r

to

an

n t i t y

in

h i c h

R

onahue

P e e b l e s

has

an

ineres.

14 .

N S P E C T I O N S .

Purchaser, n d

P u r c h a s e r '

s

gens

nd

c o n t r a c t o r s ,

shal l

have

the

igh t

during

thee r m

hereof

to

nter

upon

h e

P r o p e r t y

a

al

e a s o n a b l e

times

or

purposes

o

inspection

and

a k i n g

tests

and

studies.

u r c h a s e r

h e r e b y

a g r e e s

to

and

does

n d e m n i f y ,

defend

and

hold

eller

h a r m l e s s

from

al

l iabil i t ies,

d a m a g e s ,

c l a i m s ,

coss

o

expenses

whatsoever (

including

r e a s o n a b l e

a t t o r n e y s '

fees

and

c o u r t

costs)

for

bodily i n j u r y ,

deah

o

roperty

d a m a g e

r e s u l t i n g

from

any

such

i n s p e c t i o n ,

test

or

study.

h e

p r o v i s i o n s

o

hs

Section

shal l

survive

the

C l o s i n g .

15

N O T I C E S .

Any

notices

r e q u i r e d

or

p e r m i t t e d

to

e

g i v e n

hereunder

s h a l l

be

e l ivered

by

hand

a i l e d

by

e r t i f i e d

o

r e g i s t e r e d

mal,

r e t u r n

r e c e i p t

requested,

in

a

o s t a g e

prepaid

e n v e l o p e ,

or

delivered

by

a

ationally

recogn ized

o v e r n i g h t

devery

e r v i c e ,

and

d d r e s s e d

as

e s c r i b e d

b e l o w ;

notices

sha

be

e e m e d

effective

o n l y

upon

e c e i p t

o

refusal

of

delivery.

Notices

to

u r c h a s e r :

RDP

Roya

Pam

Hote

Limited

C o m p a n y

701

r i c k e l l

8/15/2019 267-97 RDA Incomplete (1)

27/28

With

a

copy

to:

Holland &

Knight

701rickell

Avenue, #3000

Miami,

Florida

3 3 1 3 1

Atn

S t u a r t

Ko f f m a n ,

Esq.

Notices

to

Seler:Miami

Beach


A g e n c y

1700

o n v e n t i o n

C e n t e r

Drive M i a m i Beach,

FL

3139

Atn

Jose G a r c i a -

P e d r o s a ,

E x e c u t i v e

Director

Wth a

opy

to

u r r a y

Dubbin,

General

CounseCty

oiami

B e a c h

1700

C o n v e n t i o n Center

M i a m i

Beach,

FL3 1 3 9

16

IS KOFO S S . 16.1

h e

Property

shall

be

o n v e y e d

to

P u r c h a s e r

in

ts

s

is

ondition.

S e l l e r shall

n ot

r e m o v e

any

m p r o v e m e n t s

from

the

Property

b e t w e e n th e

daeof

ths

A g r e e m e n t

and

l o s i n g u n l e s s

a gre e d to

in

riting by

Purchaser.

16

2

Upon

e c e i p t

o

an

ffer

o

n y not ice

o

o m m u n i c a t i o n

from

n y

g o v e r n m e n t a l

o

uasi-

g o v e r n m e n t a l

body

se e k i n g

to

take

nder

its

o w e r

of

e m i n e n t

d o m a i n

the

e a s e h o l d

Interest,

Seller

shall

promply

o t i f y P u r c h a s e r

o

h e r e c e i p t of

same

and

shall

s e n d

such

c o m m u n i c a t i o n ,

o

a

opy

of

it,

o

P u r c h a s e r . Upon recept

of

suc h

notice,

u r c h a s e r

sha

h a v e

the

igh

to

r e sc in d

the

exe rc ise

o

h e Option

y

del ivery

of w r i t t e n

noce

o

eller

within

t w e n t y (

20

ays of Purchaser'

s

recept

of

the

com m un ica t ion

from

Seller,

and

th e

c l o s i n g

sha

bextended,

if

n e c e s s a r y ,

to

alow

u r c h a s e r

sad

w e n t y (

20

a y s .

In

he

evenu r c h a s e r electsto

escind,

then

P u r c h a s e r

s h a l l

receive

a

e f u n d

o

the

RPo n t r i b u t i o n ,

in

hich

case

oth

p a r t i e s

8/15/2019 267-97 RDA Incomplete (1)

28/28

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267-97 RDA Incomplete (1)