8/15/2019 2003-25419 Reso

1/8

RESOLUTION

NO.

2 0 0 3 - 25419

A

E S O L U T I O N OF

HE

M A Y O R

AND

IT Y

C O M M I S S I O N

OFH E

CITY

OF

AM

BEACH

L O R I D A

A U T H O R I Z I N G

THE M A Y O R

AND

IT Y

CLERK

TO

EXECUTE T H E

LETTER

O

NTENT

E G O T I A T E D

B E T W E E N

T H E

CITYOF

M I A M I BEACH,

THE

MAM

EACH

R E D E V E L O P M E N T A G E N C Y

AND

RDPROYAL

PALM

HOTEL

L I M I T E D

P A R T N E R S H I P (

RDP)

AND

U R T H E R AUTHORIZING

TH E

P R E P A R A T I O NOF

THE

L O S I N G D O C U M E N T S

TO

REFLECTTHE

E R M S O U T L I N E D

IN

H E LETTER

OF

N T E N T . W H E R E A S ,

over the

pastyea

he

A d m i n i s t r a t i o n ,

and

he

o m m i s s i o n

Iiaison(

s

nitially

C o m m i s s i o n e r S i m o n

Cruz

and

r e s e n t l y C o m m i s s i o n e r Jose

Cruz),

as

a p p o i n t e d

l i a i s o nbyhe

MamBeach

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

A g e n c y (

RDA) ,the

ity Attorney

and

u t s i d e

counsel,

Joel M i n s k e r ,

have metwth

on

P e e b l e s

and

is r e p r e s e n t a t i v e s

to

address

the

u t s t a n d i n g issues

in

o n n e c t i o n

with

theRoya

Palm

Crowne

Plaza

Hote l (

RDP;

nd

WHEREAS,

on

N o v e m b e r13

2002

he

RDA

o a r d

d i s c u s s e d

the

rogress

o

h e

negotiations

w a s

p r o v i d e d

a

ummary of the

o u t s t a n d i n g

i s s u e s at

that

time

and

onApl

30

0 0 3 ,

th e RDA

B o a r d

c o n s i d e r e d

a p p r o v a l

o

Letter

o

ntent (

LO )

u b j e c t

to

e r t a i n

a m e n d m e n t s whch

w e r e

no

c c e p t e d

by

D o n P e e b l e s ;

andW H E R E A S ,

on

June

11

2003

he

RDA

B o a r d directed

the

Manager,

wth

o m m i s s i o n e r

J o s e Smith

as

l i a i s o n ,

too n t i n u e

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

subect

to

er ta in

gudance;

and

W H E R E A S ,

the

LO

addresses:1

ack

Ren

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

D e l a y Caim/

Saes

Taxes;

2u t u r e

R e n t a l ,

and

R e p a y m e n t

ohe

R e t u r n , C o n d i t i o n s

upon

Sale

o

the

oe

and

x t e n s i o n o

the

ixed

E x p i r a t i o nDe

nd

Mandato ry

P u r c h a s e ;3

onversion

o

h e

S h o r e c r e s t

H o t e l

to

c o n d o m i n i u m l h o t e l l t i m e s h a r e

upon payment

o

the

u r c h a s e Pce

in

fu, (

.e0,

000

000

pus

he

annual

return); 4

m e n d i n g

the

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

to

reduce

theRoom

Bock

requirement,

as

defined,

rom5 0 rooms

to

57

ooms

perday,as

the

Roya

Pam

conans

257

ooms;5)e f i n a n c i n g ;6

F E

R e s e r v e ;

7

m e n d m e n t

to

e a s e

A g r e e m e n t

r eg a rd ing

Town

a r k as

Hotel

Manager;

 8

u t s t a n d i n g Dsputes;

9

Restaurant

A g r e e m e n t ; 10) R e l e a s e

oal

Claims by

RDP,

D A

a n d

Cty

o

iami

Beach;

11

m e n d m e n t s

to

the

arage

E a s e m e n t

A g r e e m e n t

to

l im inate

thea y m e n t

o

Use

Fee

rom

R D P

to

g e n c y andaacility

Usage Paymen

from

Agency

to

RDP

annualy deeting

the

provision

that

requires

RDP

s

pproval

of the

garage

op era to r ,

and

d e f i n i n gthe

e lf Park R a t e ;

12)

Beach

o n c e s s i o n

Agreement;

13)

Attorneys

Fees;

4) Sp ec ia l I n d e m n i f i c a t i o n ; 15

Te rm i nat i on ;

and

6)

prov id ing

thee c o g n i z e d

M o r t g a g e

c o n s e n t

letterto

be

provided

within

8/15/2019 2003-25419 Reso

2/8

WHEREAS,

based

upon

the

resolution ofall

outstanding

claims

and

issues,

pending

the

settlement

with Cark

Construction,

and

the

agreement

to allow

the

conversion

of

the

Shorecrest

Hotel

to a condominiumlhotel/

imeshare,

only

upon

payment

in full of

the

Purchase

Price,

it

is

recommended

the Chairman

and Members

of the Board

adopt

the

attached

resolution.

NOW,

THEREFORE,

BE

IT

DULYRESOLVED

BYTHE

MAYOR

ANDMEMBERS

OF

THEMIAMI

BEACH CITYCOMMISSION,

thatthe

Mayor

and

City

Commission

hereby

approve

and

authorize

the

Mayor

and

City

Clerk

to execute

the

Letter

of

Intent

negotiated

between the

City

of

Miami

Beach, the

Miami

Beach

Redevelopment Agency

and

RDP

R o y a l

Palm

Hotel

Limited

Partnership

and

further authorize

the

preparation

of

closing

documents

to reflect

theterms

outlined

in

the

Letter

of

Intent.

PASSEDand

ADOPTEDthis

2 5 t h

day.

ATTEST:

W w t

f~

Lk

CITY

CLERK

JMG/

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T:\

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FOR

EXECUTION

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8/15/2019 2003-25419 Reso

3/8

ClY

OF

MIAMI BEACH

COIVMISSION

ITEM

SUMMARY

m

Condensed

Title:

AResolution

authorizing

the

Mayor

and

Ci ty

Clerk

to

execute the Letter

of Intent

negotiated

between

the

City

of

Mami

Beach, the

Mami Beach

Redevelopment

Agency

and RDP

Royal

Palm

Hotel

Limited

Partnership (

RDP ) and further

authorizing

the

preparation

of

the

closing

documents

to

reflect

the

terms

outlined

in

the

Letter

of Intent.

Issue:

Shall the

City

Commission

approve

the execution

of

the

Letter

of

Intent

and authorize

the

preparation

of

closing

documents

to

reflect

the

terms

outlined

in the

Letter

of

Intent?

Item

Summa

IRecommendation:

Based

upon

the resolution of all

outstanding

claims

and

issues,

pending

the

settlement

with Cark

Construction,

and

the

agreement

to

allow

the conversion

of

the Shorecrest

Hotel

to

a

condominium/

hotel/timeshare,

only upon payment

in full

of

the

Purchase

Price,

it

is

recommended

the

Ma

oand Members

of

the Ci Commission

ado t theattached

resolution.

Advisory

Board Recommendation:

I N /

A

Financial

Information:

Source

of

Funds:

D

inance

Dept.

City

Cerk'

s

Office

Legislative

Tracking:

I

Christina

M.

Cuervo

Si

n

Offs:

OepartmerifOrector

T:\

AGENDA

003\

nov2503\

regular\

o y a I P a l m LO.

CITY.S U M .

docG E N D A

I T E M R 7 B

DATE

8/15/2019 2003-25419 Reso

4/8

CITY

OF MIAMI

BEACH

CITY

HALL 1700

O N V E N T I O N

C E N T E R DRIVE MIAMI BEACH,

F L O R I D A33139

w w .

miamibeachfl.

go

C O M M I S S I O N

M E M O R A N D U M

From:Mayor

David

Dermer

a n d

M e m b e r s

o

the

Cty

  o m m i s s i o n Jorge

M

o n z a le z ~

C i t y

M a n a g e r0.

Date:

N o v e m b e r

25

00 3

ToSubject:

A

E S O L U T I O N

O

H E

M A Y O R

AND

C I T Y C O M M I S S I O N

OFTHE

CTY

F

MIAMI

BEACH, F L O R I D A

A U T H O R I Z I N G

T H E MAYOR

AND CTY

L E R KTO

XECUTE

THE

L E T T E R OF

N T E N T N E G O T I A T E D

B E T W E E N

THE

CTYOF

MAM

BEACH,

THE

M I A M I BEACH

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

AGENCY

AND

RDP

R O Y A L

PALM

HOTEL

LIMTED

A R T N E R S H I PRDP)

ND

F U R T H E R

A U T H O R I Z I N G

THE

R E P A R A T I O NOF

HE CLOSING DOCUMENTS

T O

R E F L E C T

THE

E R M S

O U T L I N E D

IN

THE

L E T T E R

OF I N T E N T .

A N A L Y S I S :

O v e r the

pastyea

nd

a

ha,

hed m i n i s t r a t i o n

and

the

o m m i s s i o n l ia ison(

s (

initially

Commissioner

S i m o n

Cruz and

presently

C o m m i s s i o n e r

J o s e

S m i t h ) ,

a

ppo in ted

l i a i son

by

the

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

A g e n c y (

RDA),the

ty

Attomey,

andu t s i d e c o u n s e l ,

Joel

Mnsker,h a v e m e t

wth

o n

Peebles

and

hs

e p r e s e n t a t i v e s

to

address

the

u t s t a n d i n g

i s sue s

inonnec t i on

wththe

Royal

P a l m Crowne

P l a z a

Hotel (RDP).

O

o v e m b e r

13

0 0 2 ,

the

RDA

oard

d i s cus s e d

t h e

progress

of

the

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

was

r o v i d e dau m m a r y o

the

outstanding

i s s u e s

a

h at

time

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

to

ontinue.

O n

A p r i l30

0 0 3 ,

the

R D A

Board

c o n s i d e r e d

approvalo

etter

o

Inen

L O I )

u b j e c t

to

c e r t a i n

a m e n d m e n t s

w h i c h

were noaccepted

by

Don

e e b l e s .

O

une

11

2003, the

D A Board

i r e c t e d

theManager,

with

  o m m i s s i o n e r Jose

Smth

as

i a i s o n ,

to

execute

the

Tolling

A g r e e m e n t

and

to

o n t i n u e

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

subject

to

the

o l l o w i n g

guidance:1

xp lore

ex t en d i n g

the

term

o

he

c o n t r a c t

from

5

y e a r s

to

ome

o t h e r

perod,

e r h a p s

99

yeas.

e r i o d i c

p a y m e n t s

o

thee t u r nto

the

D A l C i t y should

be

a d d r e s s e d

in

thee g o t i a t i o n s . The

D A l C i t y

may

wan

to

e f i n e p e r i o d sohen t h e R D A l C i t y

wll

e c e i v e the

8

c c r u e d andn p a i d

i n t e r e s t .

2elative

to the

Rental,

here

is

o

s e n t i m e n t

on

h e

C o m m i s s i o n

to

e d u c e

the

ren,

bu

there

is

some

f l e x i b i l i t y

on r a m p i n g

up

n d m a k i n gitpl o n g

thewaye l a t i v e l y short

p e r i o d

o

ime,may

be

yearo

two).

Th e re

needs

to

e

d i s c u s s i o n

on

how

the

ren

for

the

period oim e

between

May15, 2 0 0 2

until

June

1

2 0 0 3wll

be paid.

3

The

40 L O I

wll

serve

as

the

a s i s fo

he

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

4

he ren (

1

2

o

he $9 0 , 000)

wll

8/15/2019 2003-25419 Reso

5/8

November

25

003

C o m m i s s i o n

M e m o r a n d u m

Royal

P a l m -

Letter

o

I n t e n t

Page

2

5

6

W h a t e v e r

r i g h t s the

ty

has

t o d a y

wll

c o n t i n u e (

r i g h t s

as

o

oday

will not

be

d v e r s e l y

affected)

and

s

such

a

o l l i n g

A g r e e m e n t

w a s

e x e c u t e d

by

he

parties

in

June

003.

7owance

forurning

th e S h o r e c r e s t Hote l

into

c o n d o m i n i u m

units

whch

is

inh e

Apr

30LOI w i l l

cont i nue

to

be

ae l e v a n t

term.

This

is

where

a

lo

o

the

equy

ould

be

e x t r a c t e d to

a k e u p the

v e r r u n .8

C om m iss ione r

Smith

wllactas

the

i a i s o nto

h e neg o t ia t ions .

S i n c e

thadate,

he p a r t i e s

have

continued

to

d d r e s s

the

a l i e n t

issues

and

he

p r o p o s e d

n e g o t i a t e d

terms,

in

addton

to

hose

r e s e n t e d on

Apr 3 0 ,

20 0 3 (

seet tached

A p r i l

30

2 0 0 3

m e m o r a n d u m ) ae

u m m a r i z e d

b e l o w

ande f l e c t e d

in

he

a t t a c h e d

Letter

ontent

LO)

1

he

L e a s e

wll

be

m e n d e d

to

p r o v i d e

t h a t

the

Base R e n t and

d d i t i o n a l

Ren

due

ro m

Hotel

O p e n i n g

Dae

f May15

2002

to

ay

15

0 0 3

wll

be

d e f e r r e d and

a y a b l e

o v e r a

0

year

er iod

c o m m e n c i n gin

ease Y e a r 5 t h r o u g h Lease

Year

14e f e rto

t t a c h e d

E x h i b i t )

2he

Lease

will

be

m e nd e d

to

p r o v i d e

that

the

d d i t i o n a l Ren

and

Incent ive

Ren

due

ine a s e Yea

2

3

and

5

ll

bee f e r r e d

an d p a y a b l e over

a

0

yea

e r i o d

c o m m e n c i n gin

ease

Year

6

h r o u g h

L e a s e

Yea5. (

Refer

tot t a c h e d Exhibit)

3

e g i n n i n g

in

e a s e

Y e a r

2

ase Rent

sha

be

due

and

p a y a b l e

inc c o r d a n c e w i t h

the

Lease

terms.

4

hee a s ewll

be a m e n d e d torovide that th e

outside

d a t e

for p a y m e n t

o

he P u r c h a s e

Price (

h i c h

i n c l u d e s

the

8%

r e t u rn )

wllbe e x t e n d e d

from

25

to

99

ears.5

The

R e f i n a n c i n g T i m e s

stated

in

e c t i o n

11

3(

ao

the

Lease

sha

bec h a n g e d

to

n

or

prior

o the b e g i n n i n g

o

he

ifth(

th) e ar

after

the

H o t e l

O p e n i n g

Dae(

irst

Ref inancing ) ;

on

r

prior

toen(

0) ears after

the

c l o s i n g

o

he

F i r s t R e f i n a n c i n g

Second R e f in a n c i n g )

and

then

very

t e n t h (

1 0 t h )

a n n i v e r s a r y

o

the

S e c o n d

R e f i n a n c i n g t h e r e a f t e r

p r o v i d e d

tha

the

aturity

daeo

any

efinancingtha

x t e n d s

beyond

th e

n e x t

r e q u i r e d

R e f i n a n c i n g

will

no

ave

o

bee p a i d prior

t o

its

m a t u r i t y

p r o v i d e d

said

m a t u r i t y

date

s noaterthanw e n t y ( 20)

years

rom

th e l as t

r e f i n a n c i n g ;

p r o v i d e d

f u r t h e r

h o w e v e r ,

tha

when

Tenan

r e f i n a n c e s the

B a l a n c e

o

its D e b t ,thee t

R e f i n a n c i n g

P r o c e e d s ,

as

defined

in

S e c t i o n

11.13(b

thee a s e

shall

b e applied to the extent a v a i l a b l e

in

he

o l l o w i n g

order

A

o O w n e rto

pay t h e

d e fe r red R e n t a l described

in items

1

an d

2b o v e ;

B

0%

tow n e r

to

pay

the

%

r e t u r n

a p p l i c a b l e as

patothe

u r c h a s e

Price

a c c r u e d and

8/15/2019 2003-25419 Reso

6/8

November

25

003

C o m m i s s i o n

M e m o r a n d u m

Royal

P a l m -

Letter

o

I n t e n t

P a g e

3

o

D

0%

tow n e r

toay

he

Purchase

P r i c e (

which

i n c l u d e s

the%

e t u r n )

fow n e r '

s

nterest in

the

r e m i s e s ;

and

0%

o

Tenant

fo

e n a n t

Cos

O v e r r u n s

paidby

e n a n t (

e s t i m a t e d

at $

2

i l l i o n ) ;

E

Tow n e r

toay

he

b a l a n c e

otheu r c h a s e

Price (h i c h i n c l u d e s

the

8% r e t u r n )

fo

w n e r

s

n t e r e s t

inhe

P r e m i s e s ;

F.

To

T e n a n t

if

n y f u n d s

r e m a i n

after

p a y i n g

in

ful

hea m o u n t sin

A-6E

above.

Any

Cos

Overruns

will

b e

calculated

ne

o (

1

ny

C l a r k

s e t t l e m e n t p r o c e e d s

pad

oenant

drectly

or

i n d i r e c t l y but (

aeto

t t o r n e y s andt h e r p r o f e s s i o n a l

ees

and

ourt costs

no

r e f l e c t e d

in

enant 's

o s t o v e r r u n c a l c u l a t i o n and

o t

a d v a n c e dby

o w n

P a r k

and(

b

the

Clark

Credt

to

theexten

paidtow n e r ,

and (

2

ny

prior

o v e r r u n

o

equ i ty repayments

f rom th e

two(

)

r i o r

f u t u r e

advances

paid

to

T e n a n t .

Cost

O v e r r u n s

will be

subject

to

ful

a c c o u n t i n g an d

review

by

he

O w n e r ,

wth

th e exact a m o u n t s

in

58and

50

o

e

a g r e e d

upon

by

the

a r t i e s .

6

n

e a s e Y e a r

25nd

every

1 0

y e a r s

t h e r e a f t e r ,

T e n a n t

shallpay

w n e r

any

accrued

and

n p a i d portion

o

the

8%eturn

as

o l l o w s :

A

Any

n d

al

npaid

p o r t i o n s

o

he

8%

return

accrued

in

L e a s e

Years

1

5

wll

be

a m o r t i z e d

and

a id o v e r

10ears

in

Lease

Y e a r s 26-35

B

ny

and

al

n p a i d p o r t i o n s

o

he8%

eturn

accrued

in

u s q u n t

10 Lease

Year

i n c r e m e n t s (

 

ease

Y e a r s

26-35

6-

45, 46-

556

6 5 ,

66

5768586-

95,

and95

x p i r a t i o n

wll

e a m o r t i z e d

and

aid

o v e r

10ears

in

he

e s p e c t i v e

s u c c e e d i n g10

ear L e a s e

Term

eriods (

i.e

ease

Years

3 6 -45,

46-

55,

56

5.

665,76

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86-

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and

will

be

referred

to

s (the

A m o r t i z e d

R e t u r n ) .

C

Commencing

on Lease

Year

35nd fo

each

LeaseYear

t h e r e a f t e r , tothe

xtent

that

the

ase

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A d d i t i o n a l

Ren

and

he

m o r t i z e d

R e t u r n ,

in

g g r e g a t e ,

payable

in

ach   e a s e Yearisess

than$00, 0 0 0 ,

as

d j u s t e d

fo

n f l a t io n (

the

e n t a l Cap ),hen

in

uch

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shal

p a y

th e

d i f f e rence

b e t w e e n the

e n t a l

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e s s

the

aggregate

o

Base

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  d d i t i o n a l

Ren

and

the

Amortized

Return fora id

Lease

e a r , as

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R e n t (

the

M a n d a t o r y

Incent ive Rent ).

If

in

ny

such

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e a r , on

o

f ter

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Yea

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pa ya b l e ,

such

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shall

be

due

and

ayable

evenifuch

p a y m e n t results

in

p a y m e n t

thaYeainxcess

o

th e Rena

Cap

ental

Cap ise f i n e dashe

00,

000

a m o u n t

which

shal

be

8/15/2019 2003-25419 Reso

7/8

November

25

003

C o m m i s s i o n

M e m o r a n d u m Royal

P a l m -

Letter

o

I n t e n t

P a g e

4

5

8

h e

Lease

will b e a m e n d e d

to

r o v i d e

that

in

he even

o

ny

Sae,al

d e f e r r e d andlor

unpaid

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and

the

8e t u r n

shall

be

duen d

payable.

Any

ale

wll

ause al Rental,

n c l u d i n g

any deferrals

thereof,

as

t a t e din

he G r o u n d

Lease

A m e n d m e n t

to

rever t

to

he

r i g i n a l

Rental

w i t h o u t any

deferrals

thereof,

as

provided

inhe

oigna

L e a s e .9

l

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

a n d

cond i t i ons

o

he

Apr

30

0 0 3

LO,

no

in

onflict

with

the

term

r o v i d e d

fo

erein,

s h a l l

r e m a i n u n c h a n g e d

a n d are

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

by

r e f e r e n c e

herein.

10)As

t

e l a t e s

to

he

Town

P a r k

1%quity

nterest, h e

Lease

il l beamended

as

o l l o w s :

A

h e

a m e n d m e n t s

p r o p o s e d

by

Developer

in

the a t t a c h e d A m e n d m e n t

to

g r e e m e n t

o

Lease

willbe

i n c l u d e d

inhe

O I

and final

c l o s i n g d o c u m e n t s a n d

wll

e r m i n a t e

upon the

Sae

o

he

otel

or

earlier o (

1

termination

o

the

otel

M a n a g e m e n t

Agreement

b e t w e e n

R D P

and

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P a r k

Hote l

C o r p o r a t i o n

o (2

15

e a r s f r o m

Hotel

O p e n i n g

Date.

B

e c t i o n 16

7(

e

the Lease

wllbe

e l e t e d

in

ts

e n t i r e t y

C

n y

payments

or costs

ino n n e c t i o n w i t h he

Noe

ando

oan ,as

e f i n e d

inhe

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to

greement

o

e a s e ,

will no

be

o n s i d e r e d O p e r a t i n g

E x p e n s e s

ase f i n e d

in

the

e a s e .

The

mos

u b s t a n t i v e

changes

f r o m

the

tems p r e s e n t e d

to

the

ity C o m m i s s i o n

on

Apr30

0 0 3 , relateto

the

i t y l R D A ' s

a g r e e m e n t

to:

1x t e n dthe

erm

o

99

ears

andelete

the

m a n d a t o r y

p u r c h a s e

in

Lease

Year

25

2)

Deferral o

a

o r t i o n o

e n t a l an d

amortized

over

a

0

ear p e r i o d ,

primari ly

durng

e a se

years

5-

15

The

OI p r o v i d e stha

pon

its e x e c u t i o n ,

the

deferral

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ent

wll

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i m m e d i a t e l y

r a t h e r

than

when

the

cosng

d o c u m e n t s

ae

i g n e d .

Ifl o s i n g

d o c u m e n t s

ae

ot e x e c u t e d

w i t h i n

sx(

)

months,

any a m o u n t s

deferred

and

u n p a i d

sha

be

a id noa t e r

than30

days,

h e r e a f t e r .

3

eriodic

p a y m e n t s

o

c c r u e d

and unpad e tu r n w i l l be

p a i d

c o m m e n c i n g

in

Lease

Y e a r26n d

a n n u a l l y

thereafter.

4

s

r e v io us ly

n e g o t i a t e d ,

the

e l e a s e

o

the

h o r e c r e s t

P r o p e r t y for

c o n d o m i n i u m l h o t e l l t i m e s h a r e ,

upon

ful

a y m e n t

o

he

Purchase

Pce

in

fu,

i.

 10

i l l i o n . A d d i t i o n a l l y ,

th e

elimination

o

the

excess

F a c i l i t y

Usage

P a y m e n t

wll

r e p r e s e n t

an

n n u a l r e c u r r i n g savings

to

he

A n c h o r

S h o p s

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RDA

5)

Resolution

o

e r t a i n o u t s t a n d i n g tem

r e v i o u s l y

listed onExhibit

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ist

oisputed

items.

Oneptember

1

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00 3 a

tatus

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provided

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he

RDA

Board

r e q u e s t e d that

prior

to

inal

approval

o

8/15/2019 2003-25419 Reso

8/8

November

25

003

C o m m i s s i o n

M e m o r a n d u m Royal P a l m -Letter

o

I n t e n t

Page

o

5

A t t a c h e d ,

I

have

also

providedanupdated

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r e s e n t

Value

calculation

reflect ing

th e

new

e g o t i a t e d

t e r m s

in

o m p a r i s o n

tohe E x i s t i n g

L e a s e

T e r m s

and

the

April

30

2003

O I

T e r m s .

Based

upon

the

resolution

o

l

outstanding

claims andissues,

e n d i n g

the

settlement

w i t h Clark

C o n s t r u c t i o n ,

andhe

a g r e e m e n ttollow

the c o n v e r s i o n

 

he S h o r e c r e s t Hoe

toa

o n d o m i n i u m l h o t e l l t i m e s h a r e

o n l y

upona y m e n t

in

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o

he

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