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HomeMy WebLinkAboutBack-Up DocumentationLEASE AGREEMENT between BAYSIDE CENTER LIMITED PARTNERSHIP and CITY OF MIAMI January 1985 BAYSIDE SPECIALTY CENTER PARKING GARAGE TABLE OF CONTENTS ARTICLE I - EXHIBITS AND DEFINITIONS Section 1.1. Section 1.2. PAGE 3 Exhibits 3 Defined Terms 3 ARTICLE II - GENERAL TERMS Of LEASE OF LEASED PROPERTY 15 Section 2.1. Lease of Leased Property to Developer 15 a. Premises 16 b. Original Term 16 c. Renewal Term 16 d. Possession of Leased Property 17 e. Conditions Precedent 18 f. Developer Obligations Prior to Possession. 20 Section 2.2. Restrictive Covenants 20 a. Use Prohibitions of the Leased Property. . 21 b. No Discrimination 21 c. Permitted Uses for Leased Property 21 d. Use Prohibitions of the Park Site 22 e. Enforceability 23 Section 2.3. Easements 23 a. Existing Easements 23 b. Easements Granted to Developer 23 c. Limitations on Easements Rights 25 d.. Duration of Easements 27 e. Confirmatory Instruments 27 Section 2.4. Title of Leased Property 28 Section 2.5. Rental 28 a. Rentals Payable 28 b. Continuous Operation 28 c. Refinancing Proceeds 29 d. Payment of Rental 30 e. Developer's Records 31 Section Section Section Section Section Section 2.6. Covenants for Payment of Public Charges by Developer 2.7. Approvals and Consents 2.8. Security and Police Protection 2.9. Condition of Leased Property 2.10. Roadways and Utilities 2.11. Parking Rates ARTICLE III - DESIGN AND CONSTRUCTION 33 34 35 35 36 36 36 Section 3.1. Improvements to be Designed by Developer 36 (t) TABLE OF CONTENTS ARTICLE III - Section Section Section Section Section Section Section Section Section Section Section Section Section Section 3.2. 3.3. 3.4. 3.5. 3.6. 3.7. 3.8. 3.9. 3.10. 3.11. 3.12. 3.13. 3.14. 3.15. PAGE • DESIGN AND CONSTRUCTION (can't.) Preliminary Plan Submission Dates 39 Construction Plans 40 Facilities to be Constructed 43 Maintenance of Park Site and Leased Property . . 43 Access 43 Construction Period 44 Progress of Construction 44 Certificate of Final Completion 45 Connection to Utilities 46 Permits and Approvals 46 Compliance with Law 48 Extension of Time Requirements 48 Alterations and Renovations 48 Art in Public Places 49 ARTICLE IV - LAND USES Section 4.1. Section Land Uses 4.2. Character and Operation of Improvements ARTICLE V - Section Section Section Section Section Section Section ANTI -SPECULATION; ASSIGNMENT 5.1. Definitions 5.2. Purposes of Restrictions on Transfer 5.3. Transfers 5.4. Notice of Transfer; Information as to Shareholders 5.5. Effectuation of Certain Permitted Transfers. 5.6. Transfers of the City's Interests 5.7. Minority Participation in Ownership ARTICLE VI Section Section - MORTGAGEE FINANCING; RIGHTS OF MORTGAGEE 6.1. Leasehold Mortgage 6.2. No Waiver of Developer's Obligations or City's Rights 67 49 49 49 49 49 51 52 54 55 56 57 57 57 TABLE OF CONTENTS PAGE ARTICLE Vii - REMEDIES 67 Section 7.1. Section 7.2. Section 7.3. Section 7.4. Section 7.5. Events of Default - Developer 67 a. Failure - Payment of Money 67 b. Failure - Performance of Other Covenants, Etc67 c. Bankruptcy, etc 68 Remedies for Developer's Default 69 Events of Default - City 69 a. Events of Default 69 b. Remedies for City's Default 70 Unavoidable Delay 70 Obligations, Rights and Remedies Cumulative. . . 71 ARTICLE VIII - PROTECTION AGAINST MECHANICS' LIENS AND OTHER CLAIMS, INDEMNIFICATION 72 Section 8.1. Mechanics' Liens and Payments of Obligations . . . 72 a. Developer to Discharge Mechanics' Liens. . . . 72 b. Payment of Materialmen and Suppliers 73 Section 8.2. Indemnity 73 ARTICLE IX - INSURANCE 74 Section 9.1. Insurance Coverage . . 74 a. Property Insurance 74 b. Business Interruption Insurance 75 c. Automobile Liability Insurance 75 d. Liability Insurance 76 e. Garage Liability 76 f. Garagekeepers Legal Liability 76 g. Theft Coverage 76 h. Workers' Compensation. 76 i. Flood Insurance 76 J. Design Defect Excess Coverage. 76 k. Worker's Compensation 77 1. Copies 77 Section 9.2. Responsible Companies - Blanket Insurance Permitted 77 Section 9.3. Named Insureds - Notice to City of Cancellation. 78 Section 9.4. City May Procure Insurance if Developer Fails To Do So 78 Section 9.5. Insurance Does Not Waive Developer's Obligations 78 Section 9.6. Loss or Damage Not to Terminate Rental or this Agreement 79 Section 9.7. Proof of Loss 79 TABLE OF CONTENTS ARTICLE IX - INSURANCE (con't.) Section Section Section Section PAGE 9.8. Property Insurance Proceeds 79 a. Authorized Payment 79 b. Disposition of Insurance Proceeds for Reconstruction 80 c. Lenders and Lender/Landlords May Have Benefit of Insurance Fund for Reconstruction . . . . 81 9.9. Covenant for Commencement and Completion of Reconstruction 81 9.10. Developer's Rights In the Event of Uninsured Major Casualty 82 9.11. Casualty to Bayside Specialty Center 84 ARTICLE X - CONDEMNATION Section Section Section Section Section Section 10.1. Entire Leased Property Taken by Condemnation . 10,2. Partial Taking of Leased Property by Condemnation. 10.3. Adjustment of Rent Upon Partial Taking 10.4. Taking for Temporary Use or of Leasehold Estate. 10.5. Arbitration 10.6. Bayside Specialty Center Taken by Condemnation ARTICLE XI - RIGHTS OF OCCUPANCY AND ACCESS; MAINTENANCE; OWNERSHIP OF IMPROVEMENTS Section Section Section Section Section Section 84 84 86 87 88 89 91 92 11.1. Quiet Enjoyment 92 11.2. Waste 92 11.3. Maintenance and Operation of Improvements 92 11.4. Ownership of Improvements During Lease 93 11.5. Surrender of Leased Property 93 11.6. City and Developer to Join in Certain Actions. 94 ARTICLE XII - Section Section Section Section 12.1. 12.2. 12.3. 12.4. Section 12.5. MISCELLANEOUS PROVISIONS 94 No Partnership or Joint Venture 94 Recording, Documentary Stamps 94 Florida and Local Laws Prevail 95 Conflicts of Interest; City Representatives Not Individually Liable 96 Notice 96 a. Developer 96 b. Developer's Records 96 c. City Manager 97 (iv) TABLE OF CONTENTS ARTICLE XII - Section 12.6. Section 12.7. Section 12.8. Section 12.9. Section 12.10 A-1 A-2 A-3 B c D E F G H 6O4F/22A 7420r MISCELLANEOUS PROVISIONS (con't.) Estoppel Certificates Provisions Not Merged with Deed Titles of Articles and Sections Counterparts . Successors and Assigns EXHIBITS - Survey - Plat of Bayfront Park - Site Plan - Legal Description of Garage Parcel - Legal Description of Area B - Construction Schedule - Form of Guaranty of The Rouse Company - List of Permitted Encumbrances - List of Drawings showing Easements and Utilities - List of Approved Concept Plans -v PAGE 97 98 98 98 98 1 LEASE AGREEMENT �t '�'�j January, 1985 THIS LEASE AGREEMENT, made this _�,4 11 day of i bei , -1.96*, by and between BAYSIDE CENTER LIMITED PARTNERSHIP, a Maryland limited partnership (hereinafter referred to as "Developer"), and THE CITY OF MIAMI, a municipal corporation of the State of Florida (hereinafter referred to as "the CITY"), acting by and through the CITY MANAGER (hereinafter referred to as "the City Manager"), and with the prior approval of the City Commission of Miami. STATEMENT OF BACKGROUND AND PURPOSE The City is owner, in fee simple, subject to certain rights of others, of all that certain land located between Port Boulevard, Biscayne Boulevard,. Chopin Plaza and Biscayne Bay in the City of Miami, County of Dade, State of Florida, which is collectively referred to herein as "Bayfront Park". Bayfront Park is shown on the Plat attached hereto as Exhibit A-2. The City desires to lease to Developer that portion of Bayfront Park more particularly shown and designated as "Garage Parcel" on Exhibit A-1 hereto to enable Developer to construct and operate a 1200 car parking garage on the Garage Parcel (the "Parking Garage") as shown on Exhibits A-1 and A-3. The City is also the owner, in fee simple, of all that certain land, located immediately north of Bayfront Park and underneath and contiguous to the Port Boulevard Bridge in the City of Miami, County of Dade, State of Florida shown as Area B on Exhibit A-1. The City intends to grant an easement on a portion of such land to Dade County for the construction of a new Port Boulevard Bridge. The area which remains available for use as the off-street parking for the purpose of this Agreement shall be known as "Area B". The City desires to lease Area B to Developer to enable Developer to construct an off-street parking surface lot ("Area B Surface Lot"). The Parking Garage and Area B Surface Lot are intended to accommodate parking needs for members of the general public visiting Bayfront Park, down- town Miami and the Bayside Specialty Center (hereinafter defined) thereby eliminating traffic congestion, improving access and egress and aiding in the redevelopment of downtown Miami. The City has on even date entered into a ground lease (the "Retail Area Ground Lease") with Developer with respect to a portion of the Bayfront Park adjacent to the Leased Property upon which Developer has agreed to construct the Bayside Specialty Center (as defined in the Retail Area Ground Lease). It is the mutual desire of the parties that the Garge Parcel and Area B be leased and demised by the City to Developer for the purposes set forth herein, subject to and upon the terms and conditions contained herein. The Statement of Background and Purpose is a description of the current intent of the parties with regard to development and construction of the Parking Garage and Area B Surface Lot and is intended to be an aid to the understanding of this Lease, but it is not intended to limit the rights or the obligations of the parties except to the extent that it contains definitions and terms which are used elsewhere in this Lease. The descriptions in this Statement of Background and Purpose are for illustrative purposes only, and as to such matters the approved Construction Plans prepared by the parties shall control. Certain terms defined in the Statement of Background and Purpose are more particularly defined in Section 1.2, to which reference is hereby made. 2 In consideration of the foregoing and of the rent, covenants, and agreements hereinafter set forth, the parties do hereby covenant and agree as follows: ARTICLE I EXHIBITS AND DEFINITIONS Section 1.1 Exhibits. Attached hereto and forming a part of this Agreement are the following Exhibits: Exhibit A-1 - Survey Exhibit A-2 - Plat of Bayfront Park Exhibit A-3 - Site Plan Exhibit B Legal Description of Garage Parcel Exhibit C - Legal Description of Area B Exhibit D Construction Schedule Exhibit E - Form of Guaranty of The Rouse Company Exhibit F List of Permitted Encumbrances Exhibit G List of Drawings showing Easements and Utilities Exhibit H - List of Approved Concept Plans Section 1.2 Defined Terms. As used herein the term: "Acceptable Operator" means an entity experienced in parking garage management possessing the qualifications, good reputation, financial resources and adequate personnel necessary for the proper performance of all of Devel- oper's obligations under this Lease in a manner consonant with the quality, reputation and economic viability of the Leased Property and Improvements. -3 "Acceptable Operator's Agreement" has the meaning ascribed to it in subclause (iv) of Section 6.1(c). "Acceptable Purchaser" has the meaning ascribed to it in Section 5.3(d). "Additional Design Costs" has the meaning ascribed to it in Section 3.1. "Additional initial Costs" has the meaning ascribed to it in Section 3.1. "Additional Rental" means any and all payments required of Developer to the City by the terms of this Lease other than Rental. "this Agreement" or this Lease", means this Lease Agreement, as the same may be modified or amended from time to time. "Annual Basic Rental" has the meaning ascribed to it in subclause (i) of Section 2.5(a). "Annual Additional Rental" has the meaning ascribed to it in subclause (i) of Section 2.5(a). "Annual Percentage Rental" has the meaning ascribed to it in subclause (i) of Section 2.5(a). "Arbitration Panel" has the meaning ascribed to it in Section 10.5 "Area B" has the meaning ascribed to it in the Statement of Background and Purpose. -"Area B Surface Lot" has the meaning ascribed to it in the Statement of Background and Purpose. "Audited Financial Statement" means a Financial Statement certified by the Auditor to have been prepared in accordance with Generally Accepted - 4 Accounting Principles and Generally Accepted Auditing Standards as promulgated by the American Institute of Certified Public Accountants. "Auditor" means Peat, Marwick, Mitchell & Co. or such other nationally recognized firm of certified public accountants as may be used from time to time by the Developer for the purpose of certifying the annual reports of its financial condition required by law. Such firm of accountants must be a member of the so-called "Big Eight" group of Accounting Firms. "Bayfront Park" has the meaning ascribed to it in the Statement of Background and Purpose. "Bayside Specialty Center" has the meaning ascribed to it in the Statement of Background and Purpose. "Capital Improvements" means (a) any addition to the Parking Garage or the construction of any additional portion of the Parking Garage or other construction in, upon or constituting part of the Garage Parcel (i) occurring subsequent to the date on which the Parking Garage is "open for business", (ii) the cost of which is reasonable and verifiable and may be capitalized and depreciated in accordance with .generally accepted accounting principles and (iii) the cost of which is not included in the construction and/or permanent financing of Development Cost and (b) any addition to or replacement of the Area B Surface Lot or other construction in, upon or constituting part of Area B (i) occurring subsequent to the date on which the Area B Surface Lot is "open for business," (if) the cost of which is reasonable and verifiable and may be capitalized and depreciated in accordance with generally accepted accounting principles and (iii) the cost of which is not included in the construction and/or permanent financing of Development Cost. -5 "Certificate of Final Completion" has the meaning ascribed to it in Section 3.9. "the City" has the meaning ascribed to it in the opening paragraph of this Agreement. "the City Manager" has the meaning ascribed to it in the opening paragraph of this Agreement. "City Storm Sewer Easement" has the meaning ascribed to it in Section 2.3(a). "Completion Date" means that date on which the City Manager is required to issue the Certificate of Final Completion pursuant to Section 3.9 hereof. "Construction Plans" has the meaning ascribed to it in Section 3.3. "County Easement" has the meaning ascribed to it in subclause (i) of Section 2.3(a). "Debt Service Payments" means all principal and interest, rental and other sums and amounts paid or payable for or during the applicable or pertinent period or in connection with any Leasehold Mortgage or any Sale-Subleaseback Transaction of the Developer's estate in the Leased Property and Improvements and on borrowing to finance Capital Improvements; provided, however, that in the event of a foreclosure of any Leasehold Mortgage or the conveyance of Developer's estate in the Leased Property and Improvements to the holder of any Leasehold Mortgage (or the nominee of any such holder) by deed in lieu of foreclosure, or in the event of the termination of any lease or sublease arising out of a Sale-Subleaseback Transaction of such estate, the term "Debt Service Payments" shall thereafter include all principal and interest, rental and other sums and amounts which would have become payable 6 pursuant to or in connection with such Leasehold Mortgage or Sale-Subleaseback Transaction but for such foreclosure, deed in lieu of foreclosure or lease termination. "Default Rate" has the meaning ascribed to it in subclause (d) of Section 2.5. "Developer" has the meaning ascribed to it In the opening paragraph of this Agreement. "Development Costs" means an amount, provided in reasonable detail to the City by an executive officer of the general partner of Developer satisfac- tory to Developer's Leasehold Mortgagees or Lender/Landlords, equal to the aggregate of all costs and expenses actually incurred by Developer for the purpose of and properly allocated to the initial development and construction of the Parking Garage and Area B Surface Lot including (without limitation or duplication): (1) Design, planning, architectural and engineering fees, costs and expenses (including, without limitation, Additional Design Costs); presentation costs and expenses; surveys and geotechnic tests; testing and inspections; and garage consulting costs; (2) The cost of labor, equipment, supplies, materials and services paid to contractors and subcontractors utilized in connection with construction of the Parking Garage and Area B Surface Lot; (3) Fees and expenses paid to contractors and subcontractors; (4) Legal and accounting costs, fees and expenses; (5) interest and other financing costs incurred with respect to the issuance and sale by the City of industrial development bonds pursuant to the Ch. 159, Florida Statutes, including all required reserve accounts and funds; interest, commitment fees, points and other financing costs 7 incurred in arm's length transactions; and interest on money borrowed by Developer from its parent, an affiliated entity or subsidiaries in connection with the development of the Parking Garage and Area B Surface Lot at a cost not greater than the borrowing cost incurred by such parent, affiliate or subsidiary; (6) The cost of property, liability, worker's compensation, title and other insurance; (7) The cost of obtaining permits and licenses, and all Public Charges hereinafter defined; (8) Utility relocation costs and expenses and tap —in fees or other fees for connection to utility systems and utility services during construction; (9) All reasonable and prudent costs and expenses incurred in connection with the negotiations and execution of this Agreement; (10) The cost of initially furnishing and equipping the management offices at the Parking Garage; (11) The allocable portion of the cost of providing, furnishing, equipping and operating a field office at or near the Leased Property during construction of the Parking Garage and Area B Surface Lot, including (without limitation) the costs of construction trailers or other temporary office structures, barges and other vessels, automobiles, office furniture, equipment, supplies, telephone, stationery, postage and duplication; (12) The allocable portion of the salaries, fringe benefits, payroll taxes, travel and other expenses, and costs of all field office personnel employed in connection with the Parking Garage and Area B Surface Lot; 8 (13) The allocable cost of pre -opening management, advertising and publicity and the allocable cost of any opening event or celebration including advertising and publicity of same; (14) The allocable portion of the central office overhead cost of The Rouse Company or any affiliate related thereto with respect to the development of the Parking Garage and Area B Surface Lot; (15) The cost of supervising and coordinating construction.of the Parking Garage and Area B Surface Lot ("Construction Management Fee"); (16) Additional Initial Costs; and (17) Other reasonable costs and expenses which are of a type usually and customarily incurred in connection with development of a Parking Garage and Area B Surface Lot. "Developer.Equity Investment" means the sum of (i) Development Cost, (11) an amount equal from time to time to any. unrecouped and unfinanced cost of Capital Improvements made and paid for by Developer after initial construc- tion of the Developer Improvements, and (lit) Operating Losses (except to the extent recouped under Section 2.5a(3)) less (iv) the net proceeds actually received by Developer from any and all Leasehold Mortgages or Sale -Leaseback Transactions of the Developer's estate . in the Leased Property and the Improvements. "Developer Utility Easement" has the meaning ascribed to it in the subclause (i) of Section 2.3(b). "Developer Vehicular Access Easement" has the meaning ascribed to it in subclause (ii) of Section 2.3(b). "Environmental Laws" has the meaning ascribed to it in Section 3.11. "Events of the City's Default" has the meaning ascribed to it in Section 7.3(a). 9 "Events of Developer's Default" has the meaning ascribed to it in Section 7.1. "Expansion Levels" has the meaning ascribed to it in Section 3.1. "Fair Market Value" means the price, as of the date in question, which a seller, willing but not obligated to sell, would accept for the City's reversionary interest in the Leased Property and the Improvements or the Developer's estate in the Leased Property and the Improvements (as the case may be), and which a buyer, willing but not obligated to buy, would pay therefore in an arm's length transaction. "Final Sub -Structure Plans" has the meaning ascribed to it in Section 3.3. "Financing Sublease" has the meaning ascribed to it in the definition of "Sale-Subieaseback Transaction". "Garage Parcel" has the meaning ascribed to it in the Statement of Background and Purpose.. "Grand Prix Agreement" has the meaning ascribed to it in Section 2.2(c). "Improvements" shall mean all existing and future structures at the Leased Property, including, but not limited to, the Parking Garage and Area B Surface Lot. "Institutional Investor" has the meaning ascribed to it in subclause (b) of Section 6.1. "Insurance Trustee" has the meaning ascribed to it in Section 9.8(a). "Leased Property" has the meaning ascribed to it in Section 2.1. "Leasehold Mortgage" has the meaning ascribed to it in Section 6.1. "Lender" shall have the meaning ascribed to it in subclause (b) of Section 6.1. w 10 - "Lender/Landlord" means a lender, and any successor, assignee, transferee or designee of such lender, to which, in connection with the providing of financing to the Developer under this Lease, Developer's leasehold interest in this Lease has been conveyed and which has thereafter - entered into a Financing Sublease with Developer. "Management Costs" means (without duplication) Developer's reasonable and prudent costs of performing management services. for the Leased Property, which services shall include the following: (i) supervision of the performance of all of Developer's obligation under this Lease and retention of a profes- sional management entity acceptable to the City for the operation and manage- ment of the Parking Garage and Area B Surface Lot; (ii) formulation of all budgets for operation of the Leased Property; (iii) keeping books of account, auditing such books at least annually, preparation of statements of account to be submitted to the City showing the performance and condition of the Leased Property, and supervision of the payment of all obligations related to the operation of the Leased Property; (iv) development of programs for the promo- tion of the Leased Property (including advertising and publicity programs); (v) management of the Leased Property, including all normal legal fees, accounting, auditing, transportation and travel salaries, home office expenses of the Developer, The Rouse Company and affiliates, and the salaries, benefits and expenses of all personnel related to the supervision and administration of management services, including all supplies and materials required in connection therewith; and (vi) all reasonable on -site costs and expenses relating to on -site managers, assistant managers, marketing directors and bookkeepers, incidental out-of-pocket costs (including but not limited to office supplies, telephone, stationery, postage and duplication), market research and analysis and consumer surveys, legal and other proceedings involving Public Charges, outside CPA audits relating to the Leased Property, plans for minor alteration of the Leased Property, proceedings relating to condemnation or eminent domain, and legal and other costs of extraordinary legal proceedings concerning the Leased Property, all whether performed by on -site personnel or independent third parties. "Negative Cash Flow" means the sum of Operating Losses for any given period plus Debt Service Payments for the same period. "Net Income Available for Distribution" means the Operating Income for the applicable or pertinent period, minus the sum of (1) Operating Expenses for the same period, (2) Debt Service Payments for the same period, and (3) an amount equal to ten percent (10%) of Developer's Equity Investment for the same period. Net Income Available for Distribution shall be determined on an accrual basis in accordance with generally accepted accounting principles. "Opening Date" means the earlier of (1) the date upon which the Parking Garage is open for business with the general public, or (2) the thirtieth day following issuance of the Certificate of Final Completion. "Operating_ Expenses" means (without duplication) (1) all reasonable and prudent expenditures for the Improvements according to the then current standards of the industry accounted for by the accrual method in accordance with generally accepted accounting principles made by the Developer or which the Developer is obligated to make in the operation, ownership or management of the Leased Property and the Improvements or any part of either, including (without limitation) payroll and payroll expenses, management fees, business taxes and Public Charges, supplies, license and permit fees, repair and maintenance expenses, costs and expenses of cleaning, maintaining and repairing the common area and Leased Property, utility charges, insurance - 12 - premiums, auditing and professional fees and'expenses, publicity costs and expenses, and (2) annual Rental. In no event shall depreciation constitute a portion of Operating Expenses. "Operating Income" means all moneys, paid or payable to Developer for parking related transactions made and for services rendered by Developer in the operation of the Improvements regardless of when or where the services are rendered, whether on a cash or preauthorized credit basis, including (without limitation) all parking rates and fees, all income derived from vending machines, telephones, pay toilets or other sources located on the Leased Property, however, any sales taxes imposed by law directly paid by Developer or the City to a taxing authority, and any discounts and allowances as provided' by procedures accepted and approved by the City and Developer, shall be ex- cluded therefrom. Moneys payable shall also include, but shall not be limited to, any and all cashier shortages, overages, and undercharges. Dishonored checks and uncollectible credit card charges shall not be included in Gross Revenues, provided that such check and credit card transactions were processed utilizing sound business procedures. If Developer shall receive insurance or condemnation proceeds or awards, the amount thereof which represents reim- bursement to Developer for items accounted for as Operating Expenses shall be deemed to be Operating Income. "Operating Losses" means the amount by which Operating Income for the applicable period is less than Operating Expenses plus Debt Service for the same period. "Original Term" has the meaning ascribed to it in clause (b) of Section 2.1. "Owner" has the meaning ascribed to it in Section 5.1. - 13 - "owner whose shares are publicly traded" has the meaning ascribed to it in Section 5.1. "Park Site" means the area comprising the Bayfront Park but excluding the Leased Property and the Retail Parcel, all as shown on Exhibit A-2. "Parking Garage" has the meaning ascribed to it in the Statement of Background and Purpose. "Parking Rates" means the fees and rates charged by Developer to users of the Improvements. "Possession Date" has the meaning ascribed to it in Section 2.1. "Public Charges" has the meaning ascribed to it in Section 2.6. "Reconstruction Work" has the meaning ascribed to it in clause (b) of Section 9.8. "Refinancing" means any financing, by way of a Leasehold Mortgage or by way of a Sale -Leaseback Transaction of Developer's estate in the Leased Property and Improvements, which results in Refinancing Proceeds being available to Developer. "Refinancing Proceeds" means the net proceeds available to Developer out of any Refinancing after deduction of (i) an amount equal to Developer's Equity Investment, (ii) all amounts required to repay the then existing debt secured by all Leasehold Mortgages being refinanced or to repurchase Devel- oper's estate in the Leased Property and Improvements if previously conveyed in a Sale -Leaseback Transaction, and (iii) all costs and expenses associated with the negotiation and closing or consummation of such Refinancing. "Renewal Term" has the meaning ascribed to it in clause (c) of Section 2.1. "Rent Commencement Date" means the date described as "Rent Commencement Date" on Exhibit D attached hereto, subject to extensions or - 14 - adjustments thereto for a period equal to any delay in the occurrence in the Completion Date due to Unavoidable Delays, as defined in Section 7.4. "Rental" has the meaning ascribed to it in clause (a) of Section 2.5. "Rental Year" means a calendar year consisting of twelve (12) consecutive calendar months beginning on January 1 and ending on December 31 of each year of this Lease. The first Rental Year during the term of this Lease shall commence on the Opening Date and end on December 31st of the same calendar year in which the Opening Date occurs. and the Rental shall be apportioned therefor. Any portion of the term remaining after the end of the last full Rental Year shall constitute the final Rental Year, and Rental shall be apportioned therefor. "Retail Area Ground Lease" has the meaning ascribed to it in the Statement of Background and Purpose. "Retail Parcel" means that certain land demised by the City to Developer under the Retail Ground Lease. "Sale-Subleaseback Transaction" means Developer's sale to a Lender/ Landord of all or a substantial portion of Developer's interest in this Lease, and the subsequent execution of a sublease ("Financing Sublease") between Lender/Landord and Developer. "Section", "subsection", "paragraph", "subparagraph", "clause", or "subclause" followed by a number or letter means the section, subsection, paragraph, subparagraph, clause or subclause of this Agreement so designated. "Transfer" has the meaning ascribed to it in Section 5.1. ARTICLE II GENERAL TERMS OF LEASE OF LEASED PROPERTY Section 2.1 Lease of Leased Property to Developer. Subject to the conditions set forth in this Agreement, to the payment of rental provided - 15 - herein, and the performance of the parties hereto of the duties and obligations on the part of each to be performed hereunder: (a) Premises. The City demises and leases to Developer, and Developer takes and hires from the City, the Garage Parcel shown on Exhibit A-1 and more particularly described in the legal description attached hereto as Exhibit 8 and Area B shown on Exhibit A-1 and more particularly described in the legal description attached hereto as Exhibit C, together with the buildings, structures, improvements and equipment thereon and together with and subject to the restrictions, conditions, covenants and easements hereinafter mentioned, reserved or granted (the "Leased Property"). The City and Developer recognize that the boundaries of the Leased Property may require minor adjustments to accommodate the Improvements contemplated pursuant to the Construction Plans. Should the parties agree a modification is required, Exhibits B and C to this Lease shall be amended accordingly. (b) Original Term. To have and to hold the Leased Property for a term of forty-five (45) years, commencing on the first day of the month next following the Possession Date. Within thirty (30) days after the Possession Date, the City Manager and Developer, upon request of either party, shall execute one or more written memoranda in such form as will enable them to be recorded among the Land Records of Dade County setting forth the beginning and termination dates of the Original Term, determined in accordance with this Agreement. (c) Renewal Term. Developer is granted an option to renew this Lease from time to time upon the same terms and conditions, except as otherwise expressly provided, for up to two (2) additional terms (each called a "Renewal Term") of fifteen (15) years each, commencing at the expiration of the Original - 16 - Term or the previous Renewal Term, as the case may be, and terminating on the fifteenth (15th) anniversary of such expiration, by giving the City express written notice of a Renewal not less than six (6) months before the date on which such Renewal Term is to commence. At the City's option, such renewal request shall not be granted if at the expiration of the Original Term or the immediately preceding Renewal Term, as the case may be, an Event of Developer's Default shall have occurred and be continuing. Within thirty (30) days after commencement of a Renewal Term, the City Manager and Developer, upon request of either party shall execute one or more written memoranda in such form as will enable them to be recorded among the Land Records of Dade County setting forth the beginning and termination dates of the Renewal Term, determined in accordance with this Agreement. (d) Possession of Leased Property. The City shall deliver possession of Leased Property to Developer, and Developer shall take possession thereof within thirty (30) days after the following shall have occurred.: (i) The City Manager shall for the Improvements to be constructed (ii) The City Manager shall reasonably satisfactory to the City have approved the Preliminary Plans on the Leased Property; have received and approved evidence Manager that Developer shall have entered into final and binding arrangements for the financing of Development Costs with a Leasehold Mortgagee or Lender/Landlord; (iii) The City Manager shall have received a guarantee in form attached hereto as Exhibit E from The Rouse Company (a Maryland corpo- ration) of the prompt and faithful performance and observance by Developer of all of its obligations hereunder with respect to the construction and completion of the Improvements to be constructed in Leased Property; and - 17 - (iv) All governmental permits and approvals required to commence construction shall have been obtained by Developer. (v) The City and Developer shall have entered into a mutually acceptable agreement with respect to the Miamarina. The date that the City delivers possession of the Leased Property to Developer in accordance with this paragraph (d), by notice in writing, is herein called "Possession Date". (e) Conditions Precedent. Developer shall not be obligated to take possession of the Leased Property or to perform any other obligations under this Lease unless and until the following shall have occurred or have been obtained: (i) the City Manager has approved all of the Preliminary Plans for the Improvements; (ii) Developer has obtained all governmental approvals and permits necessary for construction of the Improvements; (iii) Developer shall have obtained a commitment or commitments, on terms and in form satisfactory to Developer, for the purchase of tax- exempt revenue bonds or notes for construction and long term financing of the Improvements; (iv) Developer shall obtain satisfactory evidence that the issuance of such tax exempt bonds or notes and the form of related docu- ments have been validated and all applicable appeal periods have expired; (v) The City Manager has approved all construction plans for improvements to be constructed pursuant to the Retail Area Ground Lease and the City Improvements (as the term is defined in the Retail Area Ground Lease) on the Retail Parcel shall be substantially completed; (vi) The City and Developer shall have entered into a mutually - 18 - acceptable agreement with respect to the Miamarina. (vii) The Developer has obtained ail governmental approvals and permits necessary for construction of the improvements to be constructed pursuant to the Retail Area Ground Lease; (viii) The Developer shall have obtained a firm commitment or commitments acceptable to Developer and the City for the construction and permanent financing of the improvements to be constructed pursuant to the Retail Area Ground Lease; and (ix) The City shall have provided Developer with evidence satisfactory to Developer that the development of the Parking Garage, the Area B Surface Lot and Bayside Specialty Center will not violate the Environmental Laws (hereinafter defined).. Developer and the City shall use good faith efforts to satisfy all of the aforesaid conditions precedent. It is recognized by the parties hereto that it is not the intention of either party to encumber the Leased Property with this Lease for an indefinite period of time during the period of satisfaction of the aforesaid conditions precedent and that therefore, either party shall have the right to terminate this Lease if all of the aforesaid conditions precedent are not satisfied or waived on or before January 1, 1988. Developer and the City shall use good faith efforts to satisfy all of the aforesaid conditions precedent. It is agreed that notwithstanding the City's agreement to use good faith efforts to satisfy the aforesaid conditions precedent, it is agreed that the City shall not be required to expend any funds in order to comply with any requirements of the statute or code set forth in (ix) above except as specifically set forth in Section 3.11 hereof. No waiver of any of the foregoing conditions precedent shall be implied by any conduct of Developer, including (without limitation) any election by Developer to proceed with any development activity prior to the - 19 - satisfaction of all of such conditions precedent, it being agreed that any waiver by Developer of any such condition precedent shall be effected only by Developer's express written statement to that -effect delivered to the City or the City Manager. (f) Developer Obligations Prior to Possession. Notwithstanding anything herein to the contrary, until possession of the Leased Property shall have been delivered to Developer pursuant to the provisions of clause (e) of this Section 2.1, Developer shall not be required to perform any of its obligations hereunder with respect to any portion of the Leased Property as to which possession shall not have been so delivered to the extent that such possession shall be reasonably required for the performance of such obligation. The City shall indemnify, hold harmless and defend Developer from and against any and all claims, actions, suits or demands of any nature whatsoever with respect to any portion of the Leased Property arising out of any act or omission of the City, its agents, servants, employees or contractors occurring prior to delivery of possession thereof to Developer as herein provided. Section 2.2 Restricti-ve Covenants. The restrictive covenants contained in paragraphs (a) through (d) of this Section 2.2 are intended and designed to bind the Developer and the City and their respective successors and assigns and bind upon and run with the Leased Property and the Park Site (as the case may be) throughout the entire term of this Lease, including any Renewal Term and any new lease executed pursuant to the provisions of Sections 6.1 and 6.2. The parties recognize, however, that the development and opera- tion of the Leased Property and the Improvements in a manner which is in the best interests of both parties may from time to time require the confirmation, clarification, amplification, or elaboration of this Agreement in order to deal adequately with circumstances which may not now be foreseen or anticipated -20- by the parties. The parties reserve unto themselves the right to enter into such interpretive, implementing or confirmatory agreements from time to time as they may deem necessary or desirable for any such purpose without obtaining the consent or approval of any person or entity not a party to this Agreement except as may be expressly otherwise provided in this Lease or by law. (a) Use Prohibitions of the Leased Property. The Leased Property hereby demised shall not be used for any unlawful or illegal business, use or purpose, or for any business, use or purpose which is immoral or disreputable or extra -hazardous, or in such manner as to constitute a nuisance of any kind (public or private), or for any purpose or in any way in violation of the certificates of occupancy (or other similar approvals of applicable governmental authorities). (b) No Discrimination. No covenant, agreement, lease, conveyance or other instrument shall be effected or executed by Developer, or any of its successors or assigns, whereby the Leased Property or any portion thereof is restricted by Developer, or any successor in interest, upon the basis of race, color, religion, sex or national origin in the sale, lease, use or occupancy thereof. Developer will comply with all applicable state and local laws, in effect from time to time, prohibiting discrimination or segregation by reason of race, color, religion, sex, or national origin in the sale, lease or occupancy of the Leased Property. (c) Permitted Uses for Leased Property. Except for the limited use by Miami Motorsports, Inc. which may be permitted by the Developer and City pursuant to the Grand Prix Agreement (as defined in the Retail Area Ground Lease), the only uses permitted on the Leased Property are parking open to the ,general public and office (provided that such office uses shall be limited to management offices).-co;'-4 - 21 - (d) Use Prohibitions of the Park Site. The parties acknowledge and agree that the Leased Property is adjacent to the Park Site and that, conse- quently, the manner in which the Park Site is or may be used from time to time will have a direct and material affect on the use and value of the Leased Property and the Improvements. In consideration of the foregoing and of the rentals reserved by it under this Lease, the City, as the owner of the Park Site, for itself, its successors and assigns, covenants and agrees with Developer, its successors and assigns that: (i) Except as may be otherwise permitted pursuant to the Management Agreement dated June 4, 1981 between the City and New World Marinas, Inc., with respect to the Miamarina, the City will not permit any use of the Miamarina, the baywaik or the docks on the Park Site which would detract from the use of the Leased Property; (ii) The City will not, without first obtaining the written consent of the Developer, (1) construct any fence or barrier between the Park Site and the Leased Property, (2) make or permit substantial alteration in the Park Site or permit any structure on the Park Site which will substantially adversely affect the access to and from the Leased Property, or (3) be inconsistent with the use of the Leased Property; (iii) The City will not sell the Park Site except to a party who shall agree to expressly assume the City's obligations under this Agreement and who shall have the authority to assume and perform the same as provided for under Section 5.6; (iv) Subject to certain rights of the City with respect to Area A-4 and A-5 set forth in §2.1(a) of the Retail Lease, and except for any temporary use permitted pursuant to the Grand Prix Agreement, the Park Site will, during the term of this Lease and any renewals hereof, be open to the general public and shall be devoted only to public park uses; and 22 - (v) The City will coordinate its ongoing planning and implementation efforts relating to the construction of improvements to and the use of the Park Site with Developer (including, without limitation, the staging of promotional events and entertainment activities and construction activities) so that the making of improvements to and the use of such area will not materially adversely effect the Developer's use and enjoyment of the Leased Property. (e) Enforceability. It is intended and agreed hereby that the restrictive covenants contained in this Section 2.2 shall be binding upon the City and the Developer, their successors and assigns, and are covenants running with the land and binding upon the successors in interest of the City and Developer respectively, as the case may be, and shall be for the benefit and in favor of, and enforceable by, the City and Developer respectively, as the case may be; provided, however, that such covenants shall be binding on Developer, and the City, and their respective successors in interest and assigns, only for such period as each respectively shall have title to the Leased Property, the Park Site or any part of either. Section 2.3 Easements. The following easements presently exist or are hereby granted: (a) Existing Easements. The following easements presently exist: (i) the easement for a 72 inch underground force main, more particularly shown and designated as the "County Easement" on Exhibit A-1 hereto; (ii) the 20 foot storm sewer easement more particularly shown and designated as the "City Storm Sewer Easement" on Exhibit A-1 hereto; (iii) such other easements as are described on Exhibit F. (b) Easements Granted to Developer. The City grants unto Developer, its successors and assigns the following: - 23 (i) the non-exclusive right and easement (the "Developer Utility Easement") to install, maintain, repair and replace utility facilities such as water, gas, electric, and telephone lines and storm and sanitary sewers underground within portions of the Park Site, and any other property owned by the City which is not a dedicated street, in the location shown therefore on the approved Construction Plans or in such other locations as may be approved by the City Manager from time to time; (ii) the non-exclusive right and easement (the "Developer Vehicular Access Easement") for the unobstructed access for users of the Improvements, and for service and emergency vehicles (A) to and from the Leased Property to Biscayne Boulevard, (8) over and across Port Boulevard to Biscayne Boulevard and over and (C) across the Park Site and the Retail Parcel to Biscayne Boulevard (as Port Boulevard and Biscayne Boulevard are now and hereafter constructed), in the locations shown therefore on Exhibit A-1 or such other locations as may be approved by the City Manager from time to time. Should Port Boulevard or Biscayne Boulevard not be immedi- ately adjacent to the Leased Property, Park Site, or the Retail Parcel the area of land and improvements permitted to be used as the Developer Access Easement Area shall include any strips of land separating Port Boulevard or Biscayne Boulevard from either the Leased Property, or Park Site, or Retail Parcel; (iii) the non-exclusive right to use portions of the Park Site in common with the public, subject to the City's right to restrict areas in the Park Site for reasonable periods during special events including (without limitation) events permitted pursuant to the Grand Prix Agreement, for the unobstructed pedestrian access to and from the Leased Property by Developer to all of the Park Site now and hereafter existing - 24- including, but not limited to the baywalks, sidewalks, playgrounds and other open spaces. (iv) the right and easement 'to install and maintain such footings and underground supports along the boundaries of the Leased Property extending not more than six (6) inches under and into the Park Site, as shall be necessary in connection with the construction of the Improvements and as shall be shown on the approved Construction Plans; and (v) the right and easement to enter onto those portions of the Park Site adjacent to the Leased Property for the purpose of performing maintenance and repairs to the Parking Garage and Area B S aeeLo It is the intent of this Agreement that all Improvements be confined to the limits of the Leased Property. (c) Limitations on Easement Rights. The rights and easements granted or reserved in paragraphs (a) and (b) of this Section 2.3 shall be limited as follows: (1) with respect to the County Easement and the Developer Utility Easement, except to the extent shown on the approved Construction Plans, no building or other structure shall be erected on the surface of same without the prior written consent of the Dade County Water and Sewer Authority, except that Developer may place or construct street furniture, kiosks, or other removable structures in any such area on the Leased Property, provided Developer shall promptly remove the same, at its expense, upon the City's or appropriate utility's request in order to permit the City or utility to perform maintenance services on the utility lines in the easement area, provided that in the design and construction of the Improvements, Developer will use its diligent efforts to cluster underground utility lines and to minimize other construction below the surface of the easement"area; -25- (2) With respect to the portion of the City Storm Sewer Easement area which may lie directly beneath the Parking Garage, the City and Developer agree, within a reasonable time period from the date hereof, to enter into an easement agreement governing the use, maintenance, repair and replacement of the utilities within such easement area in order to provide Developer with sufficient assurances of the use and enjoyment of that portion of the Leased Property affected thereby. (3) the party having the benefit of any such easements (A) shall carry on any construction, maintenance and repair activity with diligence and dispatch and shall use its diligent efforts to complete the same in the shortest time possible under the circumstances, and (B) shall" not carry on any construction, maintenance or repair activity in the easement area in such manner as to unreasonably interfere with the use and enjoyment of the servient tenement, and, except in the case of the County Easement, in carrying on such activities, will do so in such a manner as not to unreasonably interfere with business or businesses then being conducted in the Improvements or on the Leased Property by Developer. City shall use its diligent efforts to obtain approval of Dade County to the foregoing provision with respect to the County Easement; (4) except in the event of emergency, the party having the benefit of such easement shall not carry on any construction, replacement, maintenance or repair activity at any time in such easement area unless such party shall have given at least sixty (60) days advance notice to the other party of its intention to do so; provided, however, that in the event of an emergency affecting the County Easement, the City will use diligent efforts to obtain the consent of the Dade County Water and Sewer Authority to such notice requirements; -26- (5) promptly upon the completion of any such construction, repair or maintenance activity, the party having the benefit of such easement shall, at its expense, restore the surface of the easement area as nearly as possible to its former condition and appearance; (6) Developer and City agree to enter into an easement agreement governing the use, maintenance, repair and replacement of the City Storm Sewer Easement, and any other utility easement area which may be located under the Improvements within a reasonable time from the date of this Lease in order to provide the Developer with sufficient assurances with respect to the use and enjoyment of that portion of the Improvements affected thereby; and (7) with respect to the Developer Vehicular Access Easement, the City may from time to time, erect signs, temporary barriers or other reasonable traffic controls designed to limit the use of the easement areas to service and emergency vehicles. Annexed hereto as Exhibit G is a survey showing all easements and utilities affecting the Leased Property, which survey has been reviewed by the Director of Public Works of the City of Miami and found by him to be accurate. (d) Duration of Easements. Unless a shorter term is provided, each of the rights and easements granted or reserved in paragraphs (a) and (b) of this Section 2.3 shall be for the Original Term of this Lease and for each Renewal Term and the term of any new lease made pursuant to Sections 6.1 and 6.2 hereof. (e) Confirmatory Instruments. Each party covenants and agrees that from time to time at the request of the other party, it shall execute and deliver such additional documents or instruments confirming the rights and easements granted and reserved in this Section 2.3 or more precisely fixing -27- their location as such requesting party shall deem to be necessary or desirable. The City Manager is hereby authorized and empowered on behalf of the City to execute and deliver, from time to time, any such confirmatory documents or instruments. Section 2.4 Title of Leased Property. The City represents, covenants and warrants that it has good and merchantible fee simple title to the Leased Property and all of the improvements thereon, which title is free and clear from all covenants, easements, liens, clouds of title or other restrictions except for those listed in Exhibit F. Section 2.5 Rental. (a) Rentals Payable. During each Rental Year during the Original Term and each Renewal Term hereof, Developer covenants and agrees to pay the City annually as rental ("Rental") for the Leased Property, the following: (I) the annual sum of Ten Thousand Dollars ($10,000) ("Annual Basic Rental"), • (2) to the extent there is Net Income Available for Distri- bution, the annual sum of Eighty Thousand Dollars ($80,000) ("Annual Additional Rental"), and (3) Fifty percent (50%) of the remaining Net Income Available for Distribution, if any, after payment of the Annual Basic Rental, Annual Additional Rental, and after Developer has been reimbursed up to Ninety Thousand Dollars ($90,000) for Negative Cash Flow previously paid by Developer ("Annual Percentage Rental"). (b) Continuous Operation. Developer covenants and agrees, subject to the Grand Prix Agreement, to cause the Parking Garage and--Arena--B--Surfa-ce -Lot to be continuously operated consistent with prudent business practices and the standards of operation set forth in Section 4.2 hereof (considering twelve -28- 1 (12) month use) in order to achieve a reasonable level of profitability. In connection therewith, Developer covenants and agrees that from and after the Opening Date, Developer shall keep the Parking Garage a-nd-Area--B-Surface Lot open for business with the general public at least three -hundred sixty (360) days a year. Developer agrees that, at all times during the Original Term or any Renewal Term, Developer shall not operate the Parking Garage arm-tire—Area-B -Surface Lot: for its own account but shall retain an Acceptable Operator to operate the same. The City acknowledges that an Acceptable Operator would include any parking garage manager which operates a parking system of at least 10,000 parking spaces in Dade County on a not -for -profit basis, and Developer agrees to initially retain such Acceptable Operator; provided, however, if such Acceptable Operator is not available or if such Acceptable Operator is in default of its management agreement with Developer, Developer may retain another Acceptable Operator. The parties acknowledge that the Developer is not as of the date of this Agreement qualified as an Acceptable Operator, but nothing in the provisions of this Lease shall prohibit the Developer from qualifying as an Acceptable Operator. If this Lease should be transferred to an Acceptable Operator or an Acceptable Purchaser pursuant to Article VI hereof, the provisions of this Section 2.5(b) shall apply in equal force and affect as such parties after such transfer. (c) Refinancing Proceeds. In the event that Developer proposes to engage in any Refinancing with respect to the Leased Property or any portion thereof, Developer shall give notice thereof to the City Manager not later than forty-five (45) days prior to the consummation of the transaction or trans- actions by which such Refinancing is accomplished. Such notice shall show, in reasonable detail, Developer's base estimates of the amount of the Refinancing Proceeds and the expected affect of such Refinancing upon Rental and Net Income - 29 - Available for Distribution for three (3) full Rental Years next following consummation of such Refinancing. Within thirty (30) days after such notice is given, the City shall elect, by giving notice of such election to the Developer, either: (i) to participate in such Refinancing, in which case Developer shall pay or cause to be paid to the City. upon consummation of such Refinancing, an amount equal to fifty percent (50%) of the Refinancing Proceeds and thereafter Rental payments shall be determined by adjusting Debt Service Payments and Developer's Equity Investment to reflect such Refinancing; or (II) not to participate in such Refinancing, in which case (1) no portion of such Refinancing Proceeds shall be payable to the City and Rental with respect to such portion of the Leased Property that is refi- nanced shall thereafter be determined in the same manner as prior to such Refinancing (that is to say that in the determination of Rental with respect to such portion of the Leased Property that is refinanced, Debt Service Payments and Developer's Equity Investment with respect thereto shall not be adjusted so as to reflect such Refinancing, but shall continue on the same basis as prior to such Refinancing), and (2) with respect to any subsequent Refinancing, Refinancing Proceeds shall be calculated as though such prior Refinancing shall not have occurred. If the City shall fail to make such election within said thirty (30) day period, the City shall be deemed to have elected to not participate in such Refinancing. (d) Payment of Rental. Rental shall commence to accrue on the Rent Commencement Date. Rental shall be payable in equal monthly installments in advance on the first day of each full calendar month following the Rent Com- mencement Date during the term of this Lease, the first such payment to include also any prorated Rental for the period from the Rent Commencement Date to the - 30 - first day of the full calendar month thereafter. Rental shall be payable without notice or demand therefor and shall be paid to the City at the Office of the Director of Finance, 3500 Pan American Drive, Miami, Florida 33133 or at such other place as the City Manager shall designate from time to time in a notice given pursuant to the provisions of Section 12.5. Any late payment shall automatically accrue interest at a rate equal to two (2) percent above that rate charged by the Citibank, N.A., of New York to its best commercial customers, generally referred to as its prime rate ("Default Rate") from the date that payment was due. Any overpayment of Rental at the end of each Rental Year shall be paid to Developer within thirty (30) days of receipt of such report or, at the option of Developer, the Developer shall credit such amount to the Rental due in the next Rental Year. If there is an underpayment of annual Rental, Developer shall pay the City the amount of the deficiency within thirty (30) days of the City's receipt of the report. (e) Developer's Records. For the purpose of permitting verification by the City of any amounts due on account of Rental, Developer will keep and preserve or cause the Acceptable operator to keep and preserve for at least three (3) years in Dade County, Florida, at the address specified in Section 12.5, auditable original or duplicate books and records for the Parking Garage and Area B Surface Lot which shall disclose all information required to determine Development Costs, Annual Basic Rental, Annual Additional Rental, Annual Percentage Rental, 0per- ating Income and Operating Expenses and other information necessary to comply with the terms of this Agreement. After five (5) days advance notice to Developer, the City through its City Manager or his designee, shall have the right during business hours to inspect such books and records and to make any examination or audit thereof which the City may 31 desire• If such audit shall disclose a liability for Rental in excess of the Rental theretofore paid by Developer for the period in question, Developer shall promptly pay such additional Rental and if such audit shall disclose an overpayment of the Rental theretofore paid, the City shall promptly return the excess to the Developer. Developer further covenants and agrees to deliver to the City com- mencing as of the Rent Commencement Date within forty-five (45) days after the close of each calendar quarter and after the termination of the Lease, a statement showing, in reasonable detail, the computation of the Annual Basic Rental, Annual Additional Rental, Annual Percentage Rental, Operating Income, Operating Expenses and Net Income Available for Distribution for the preceding' calendar quarter. The quarterly statement shall be signed and verified by an appropriate, authorized officer or General Partner of Developer or certified by the appropriate authorized officer of the Acceptable Operator stating specifically that such officer has examined the report, that such officer's examination included such tests of the books and records as such officer considered necessary under the circumstances, and that such report presents fairly the Rental due with respect to the preceding calendar quarter. If Developer shall fail to deliver the foregoing statement to the City within said period, or the City shall give written notice of its desire to audit the quarterly statements the City shall have the right to either conduct an audit itself or to employ an independent certified public accountant to examine such books and records as may be necessary to certify the amount of the Rentals due with respect to such calendar quarter. Developer shall promptly pay to the City, as Additional Rental, the cost of any audit performed by or for the City, _32- in the event the City's audit was in lieu of a quarterly report by Developer or if the City audits the quarterly report at its own initiative and demon- strates a discrepancy of more than three percent (3%). Developer shall provide the City with an annual Audited Financial Statement, certified by an independent Certified Public Accountant, within one hundred twenty (120) days after the close of each Rental Year which shall be subject to the audit provisions of the previous subparagraph. Notwithstanding anything to the contrary in this Lease for so long as the City of Miami Department of Off -Street Parking is acting in the capacity as Acceptable Operator, (i) Developer's obligations to perform under this Lease are limited to and conditioned upon the City of Miami's Department of Off -Street Parking's performance of those obligations on behalf of Developer pursuant to the parking garage management agreement, and (ii) if the City of Miami Department of Off - Street Parking is in default of its obligations under the parking garage management agreement and such failure results in a default under this Lease, such default shall not be deemed to be an Event of Developer's Default. Section 2.6 Covenants for Payment of Public Charges by Developer. Developer, in addition to the Rental, covenants and agrees to pay and discharge, before any fine, penalty, interest or cost may be added, all real and personal property taxes, all ad valorem real property taxes, all taxes on rentals payable hereunder and under subleases, public assessments and other public charges including but not limited to electric, water and sewer rents, rates and charges (all such taxes, public assessments and other public charges being hereinafter referred to as "Public Charges") levied, assessed or imposed by any public authority against the Leased Property, including all improvements -33- thereon in the same manner and to the same extent as if the same, together with all improvements thereon, were owned in fee simple by Developer; provided, that Developer's obligation to pay and discharge Public Charges levied, assessed or imposed against or with respect to Leased Property shall not commence until the Possession Date. Notwithstanding the provisions of this Section 2.6, Developer shall have the right to contest the amount or validity, in whole or in part, of any Public Charges by appropriate proceedings. The City agrees to consent to and/or formally join in any such proceedings to the extent it may be allowed by law, if such consent and/or joinder be required by law for the prosecution thereof. Developer shall pay all charges for metered water, sewer service charges and other fees or charges lawfully imposed by any public authority upon or in connection with the Leased Property. The City agrees that it will not impose any special assessment or other Public Charges (other than ad valorem real property taxes) against the Leased Property or the Improvements with respect to the construction, operation, repair and maintenance of any improvements the City is obligated to construct pursuant to the Retail Area Ground Lease. The City retains all its rights to impose special assessments or other public charges for all other purposes. Developer, upon written request, shall furnish or cause to be furnished, to the City Manager, official receipts of the appropriate taxing authority, or other proof satisfactory to the City Manager evidencing the payment of any Public Charges, which were delinquent or payable with penalty thirty (30) days or more prior to the date of such request. Section 2.7 Approvals and Consents. Wherever in this Lease the approval or consent of any party is required, it is understood and agreed that such approval or consent will not be unreasonably withheld or delayed. - 34 - Section 2.8 Security and Police Protection. Developer shall have the responsibility for providing all security and protection for the Improvements. Developer and City may enter into an agreement requiring the City to provide such security and protection with respect to same. If the City and Developer are unable to enter into such agreement, the Developer shall be responsible for providing security and protection throughout the Improvements. The City shall provide the same security and police protection for the Park Site as is afforded all other City open spaces with appropriate augmentation in the exclusive judgment of the City Manager during periods of high pedestrian activity including (without limitation) during special public events. Section 2.9 Condition of Leased Property. On the Possession Date the City shall deliver to the Developer possession of the Leased Property, free of any and all tenancies or other rights or claims of rights to its use and occupancy. Prior to the Possession Date, the Leased Property shall be maintained by the City and delivered to Developer in good serviceable condition, ordinary wear and tear excepted. The City agrees not to adversely or materially alter the Leased Property prior to the Possession Date without Developer's prior written approval. The obligations of Developer under this Lease (including, without limitation, the -obligations to pay Rental hereunder) are subject to the delivery in good and serviceable condition (ordinary wear and tear excepted) to the Developer on the Possession Date of the Leased Property and improvements located thereon as of the date of this Lease. -35- Section 2.10 Roadways and Utilities. The City shall without expense to Developer or public assessment against the Leased Property, provide for the abandonment of all public streets and rights of way within the Leased Property. The City shall cooperate with and assist the Developer in the termination or transfer to the Developer, of all existing easement rights with respect to water mains, sanitary sewers, storm drains, conduits, gas and electric or steam distribution lines and fire alarm, traffic and phone systems, if any, in the Leased Property, except for the County Easement and the City Storm Water Easement, and the transfer to Developer of all vacated City streets. The City shall also transfer to Developer all easements and rights of way at the Leased Property within its control. All termination, abandonment, transfer and relocation, as applicable, to be done shall be done or performed in accordance with provisions of this Section 2.10 with respect to the. Leased Property as rapidly as practicable and in a manner which will coordinate in a reasonable manner with construction of the Improvements, Section 2.11 Parking Rates. Parking Rates shall be established by Developer from time to time and shall be subject to the City Manager's prior imi tten appoval ARTICLE III DESIGN AND CONSTRUCTION Section 3.1 Improvements to be Designed by Developer. The Parking Garage -end -Orr -ea B-Su-r-Taee-ie4 and all improvements ancillary thereto shall be designed by Developer (hereinafter referred to as the "Design"), subject to the review and written approval of the City as hereinafter set forth. The City acknowledges that prior to the execution of this Agreement, Developer has - 36 - (52, submitted to the City and the City has approved the concept plans (hereinafter referred to as the "Concept Plans") for the construction of the Parking Garage ami---AFea---B---•tjrfaeee- Let. A copy of the Concept Plans is annexed hereto as Exhibit H. The City agrees to consult and coordinate with Developer with respect to the preparation of the Preliminary Plans and Construction Plans. Developer shall submit to the City at the times hereinafter set forth, four (4) sets of plans (hereinafter referred to as the "Preliminary Plans") for the Parking Garage an —Lots. For the purposes hereof, Preliminary Plans shall consist of site plans and structure elevations and sufficient detail to show site planning, architectural design and parking layout, materials, building construction, landscape design, access, streets and sidewalks. Preliminary Plans shall also include (i) a proposed system of revenue control capable of being integrated with the Department of Off -Street Parking's existing system which will permit computerized monitoring of vehicle counts, monthly card customers, transient customers and fee calculation and shall also provide for daily cashier reports capable of being audited by auditors for Developer, and the City, (ii) a proposed computer. controlled television security system with sufficient cameras to ensure the ability of security guard(s) to monitor the entire Parking Garage (including ingress, egress and transition areas to Bayside Specialty Center), including two-way voice communication for emergency situations, (iii) a proposed signage and graphic plan sufficient to ensure customer convenience; and (iv) a proposed plan for internal circulation areas and walkways between the Parking Garage, the balance of the Leased Property and the Bayside Specialty Center providing for maximum customer security and safety. The City acknowledges that in order to meet the schedule for construction, the Developer may submit Preliminary Plans in stages for written approval. The City shall not be required to issue -37- permits or other formal governmental approvals to Developer for a particular phase until the City has approved a site plan depicting all phases of the Parking Garage and Area B Surface Lot and have approved the Preliminary Plan for the particular phase for which a permit or other formal governmental approval is requested. The parties agree that the Design shall be completed by Developer in such a manner as to permit the expansion of the Parking Garage by the addition thereto of a fourth and fifth level (hereinafter called the, "Expansion Levels"), which Expansion Levels shall provide for approximately 750 additional parking spaces at the Parking Garage. The additional cost of the Design (hereinafter called the "Additional Design Costs") as a result of the adds-- tional Design work to be incurred with respect to the inclusion therein of the possible Expansion Levels shall in no event exceed $30,000 and shall be paid by the City after approval of the Final Structural Plans. At the time that Developer shall enter into a guaranteed maximum price construction contract, Developer shall cause that portion of the Preliminary Plans that shall reflect additional work to be performed in order to construct the Parking Garage in a manner sufficient to permit the construction of the Expansion Levels (hereinafter called the "Additional Initial Costs") to be priced separately and shall notify the City of the amount of the price for the Additional Initial Costs. Developer shall use diligent and reasonable efforts to cause its construction contractor to quote a reasonable and verifiable price with respect to the Additional Initial Costs. The City shall, within ten (10) days after it shall have received such notice, advise the Developer in writing if it desires to have the Parking Garage constructed in a manner to permit the future construction of the Expansion Levels thereon. If the City shall. notify Developer that it desires the Parking Garage to be constructed in such a - 38 - manner, the City and Developer shall thereupon promptly negotiate and enter into an agreement with respect to the manner and method of the payment of the Additional Initial Costs by the City as construction of the Parking Garage progresses. At any time after the completion of the Parking Garage, the City may notify Developer in writing that it is of the opinion that as a result of the occupancy level and use of the Parking Garage, it would be in the financial interests of both Developer and the City to construct the Expansion Levels. The City shall obtain an independent feasibility study to analyse, among other things, the marketability of the expansion and the financial impact of the expansion on Operating Income and Net Income Available for Distribution. The City shall submit the feasibility study to the Developer for its review. If the feasibility study should demonstrate that the expansion is economically feasible and marketable, the City and Developer agree to in good faith nego- tiate the necessary agreements related to the expansion, including (without limitation) repayment of Additional Initial Costs, reciprocal easement and use requirements, form of management, ownership, impact upon Rental, and design and construction responsibilities. The cost of the feasibility study shall be borne by the City unless the Expansion Levels are actually constructed, in which case the cost shall be included as part of the development costs of the Expansion Levels to be paid on accordance wih any agreements entered into between the City and Developer. Section 3.2 Preliminary Plan Submission Dates. Developer shall submit the Preliminary Plans to the City for written approval on or before the time set forth for same on Exhibit D hereto. Upon receipt of each set of Preliminary Plans representing a certain stage of construction, the City shall review same and shall promptly (but in any event within fifteen (15) days - 39 - after such receipt) give Developer written notice of its approval or dis- approval setting forth in detail its reasons for any disapproval. The City's right to disapprove the Preliminary Plans .submitted shall be limited to matters depicted in the Preliminary Plans which do not conform substantially to the Concept Plans or previously approved Preliminary Plans for other stages of the Parking Garage and Area 8 Surface Lot or new elements not presented in the Concept Plans or matters which are violations of applicable governmental statutes, ordinances, codes, plans, laws or regulations. If no written response is delivered to Developer within fifteen (15) days after submission of such Preliminary Plans, or any resubmission thereof as hereinafter provided, they shall be deemed approved, except that no violation of applicable governmental statutes, ordinances, codes, plans, laws, regulations, shall be deemed waived thereby. In the event of a disapproval, Developer shall, within fifteen (15) days of the date the Developer receives the notice of such disapproval resubmit such Preliminary Plans to the City, altered to satisfy the grounds for disapproval. Any resubmission shall be subject to review and approval by the City, in accordance with the procedure hereinabove provided for an original submission until same shall be approved by the City, provided that in any event Developer shall submit all Preliminary Plans for construction of the Parking Garage and Area B Surface Lot which satisfy all of the grounds for disapproval of which the City has given notice not later than six months from the date of this Agreement. The City and Developer shall in good faith attempt to resolve any disputes concerning the Preliminary Plans. Section 3.3 Construction Plans. For the purpose of this Agreement, "Construction Plans" shall consist of final working drawings and specifications including (without limitation) the following information: (a) definitive - 40 - architectural drawings; (b). definitive foundation and structural drawings (the "Final Substructure Plans"); (c) definitive electrical and mechanical drawings including (without limitation) plans for all lighting facilities affecting the exterior and interior appearance of the Parking Garage; (d) final specifica- tions; (e) landscaping; (f) graphics; and (g) plan for conduit and raceways necessary for revenue control systems and television control system. Not later than one hundred twenty (120) days after approval of Preliminary Plans for a particular stage of construction, Developer shall submit to the City two sets of Construction Plans for the same stage provided, however, that Developer shall not be required to submit the portions of the Construction Plans con- sisting of exterior lighting, landscaping and graphics until the date that Developer is required to submit the lighting, landscaping and graphics portion of the construction plans for the Bayside Specialty Center to the City pursuant to the Retail Area Ground Lease. Upon receipt thereof, the City shall review same and shall promptly (but in any event within fifteen (15) days after such receipt), give Developer notice of its written approval or disapproval, setting forth in detail its reasons for any disapproval. The City's right to dis- approve the Construction Plans submitted shall be limited to matters depicted in the Construction Plans which do not conform substantially to the approved Preliminary Plans or previously approved Construction Plans for other stages or are new elements not presented in the approved Preliminary Plans or are violations of governmental statutes, ordinances, codes, plans or regulations. If no response from the City is delivered to Developer within fifteen (15) days after the submission of such Construction Plans, or any resubmission thereof as hereinafter provided, they shall be deemed approved, except that no violations of applicable laws, statutes, ordinances, codes, or regulations shall be deemed waived thereby. In the event of a disapproval, Developer shall, within fifteen (15) days after the date Developer received the notice of such disapproval, resubmit the Construction Plans for that stage to the City, altered to satisfy the grounds of disapproval. Any resubmission shall be subject to review and approval by the City, in accordance with the procedure hereinabove provided for an original submission, until the same shall be approved by the City, provided, that in any event Developer shall submit all Construction Plans for the construction of the Parking Garage and Area B Surface Lot (which satisfy all of the grounds for disapproval of which the City has given written notice) not later than four (4) months after approval of all of the Preliminary Plans. The City and the Developer shall in good faith attempt to resolve any disputes regarding the Construction Plans. No approval by the City of any Construction Plans or Preliminary Plans pursuant to this Article shall relieve Developer of any obligation it may have at law to file such Construction Plans with any department of the City or any other governmental authority having jurisdiction over the issues or to obtain any building or other permit or approval required by law. Developer acknowledges that any approval given by the City pursuant to this Article III shall not constitute an opinion or agreement by the City that the plans are structurally sufficient or in compliance with any laws, codes or other applicable regulations, and no such approval shall impose any liability on or waive any rights of the City. Concept Plans, Preliminary Plans, Construction Plans and all work by Developer with respect to the Parking Garage and Area B Surface Lot shall be in conformity with this Agreement, the Miami Charter and Code, the South Florida Building Code and all other applicable state, county and local laws and regulations. - 42 - Section 3.4 Facilities to be Constructed. Developer agrees to construct the Parking Garage -etc-'B—Surface-Lot on the Leased Property, at its sole cost and expense, containing the facilities more particularly described in the Construction Plans which shall conform to the covenants contained in Section 2.2 and which are referred to throughout this Lease as "Improvements". Section 3.5 Maintenance of Park Site and Leased Property The City, without cost or expense to Developer or public assessments against the Leased Property or the Improvements, at all times during the term of this Lease, (including any Renewal Term and any new lease executed pursuant to the provisions of Sections 6.1 and 6.2) shall maintain and keep or cause to be maintained and kept in good order, repair and appearance, commensurate with the quality of maintenance found in the area shown and designated as "Developer Maintenance Area" on Exhibit K to the Retail Area Ground Lease, all of the property and improvements at the Park Site. The Developer, without cost or expense to the City, at all times during the term of this Lease, (including any Renewal Term and any new lease entered into pursuant to the provisions of 6.1 Section 6.2) shall maintain and keep or cause to be maintained and kept in good order, repair and appearance all of the property and improvements located in that portion of the Leased Property shown and designated as Developer Maintenance Area on Exhibit K to the Retail Area Ground Lease. Section 3.6 Access. Prior to delivery of possession of the Leased Property or any part thereof to Developer, the City shall permit Developer access thereto whenever and to the extent necessary to carry out the provisions of this Agreement. The City shall also permit, including (without limitation) the placement of construction trailers and staging area on or adjacent to the - 43 - Leased Property at no cost to the Developer, and the mooring of construction barges or other vessels at M1'amarina or the adjacent docks at locations reasonably acceptable to the City Manager and Developer, at reasonable fees or charges to the Developer. The provisions of this paragraph shall not take effect until Developer, at its sole cost and expense, shall have secured or caused to be secured comprehensive general public liability insurance as required in this Agreement. Section 3.7 Construction _Period. Developer shall commence con- struction of the Parking Garage a —S Surface ---bat not later than fifty-five (55) days after the Possession Date or as soon thereafter as weather permits (but not earlier than the approval of the Construction Plans) and' shall complete the same substantially in accordance with the Construction Plans pursuant to the Development Schedule attached hereto as Exhibit D. At the request of either party, the parties will .execute and deliver from time to time such certificates, documents or instruments as may be appropriate to confirm the dates of commencement or completion of construction as above provided, which certificates, documents or instruments may be recorded by the party requesting the same at its expense. Section 3.8 Progress of Construction. 'Subsequent to the delivery of possession of the Leased Property to Developer, and until construction of the Improvements have been completed, Developer shall keep the City Manager apprised of the progress of Developer with respect to such development and construction. During such period the work of Developer shall be available for inspection by a full-time, on -site representative of the City Manager. The Developer shall provide suitable work space and utilities for the -44- representative at Developer's cost. Developer, by executing this Agreement, represents it has visited the site, is familiar with local conditions under which the construction and operation is to'be performed, will perform all test borings and subsurface engineering generally required at the site under sound and prudent engineering practices, and will correlate the results of its test borings and subsurface engineering and other available studies and its obser- vations with the requirements of the construction and operation of the Improvements. The Developer shall restore the site to its original condition after all testing, and shall provide the City with a copy of all results. The City makes no warranty as to subsoil conditions. Developer shall not be entitled to any adjustment of Rental or of any applicable time requirements in the event of any abnormal subsoil conditions unless the subsurface conditions are so unusual they could not have been reasonably anticipated. Section 3.9 Certificate of Final Completion. Promptly after completion of the Parking Garage and-Area--B--Sur f-ace--I e - i n accordance with the provisions of this Agreement, the City Manager will furnish Developer with an appropriate instrument so certifying (the "Certificate of Final Completion"). The Certificate of Final Completion shall be in such form as will enable it to be recorded among the Land Records of Dade County. If the City Manager shall refuse or fail to provide such certification in accordance herewith, the City Manager shall within thirty (30) days after written request by Developer, provide Developer with a written statement indicating in adequate detail in what respects Developer has failed to complete the Parking Garage and Area B Surface Lot in accordance with the provisions of the Agreement, or is otherwise in default, and what measures and acts, in the opinion of the City Manager, are necessary for Developer to take or perform in order to obtain such certification. -45- Section 3.10 Connection to Utilities. Developer will install or cause to be installed all necessary connections between the Parking Garage and Area B Surface Lot and the water, sanitary and storm sewer mains and mechanical and electrical cables and conduits whether or not owned by the City and/or the Dade Water and Sewer Authority Department. All costs and expenses in connection with same shall be borne by Developer. Section 3.11 Permits and Approvals. Except as otherwise provided in this Section 3.11, Developer shall secure and pay for any and all permits and approvals necessary for proper construction and completion of the Parking Garage and Area 8 Surface Lot and all costs and expenses in connection with same shall be borne by Developer. If the City Manager's office shall become vacant or if authority of the City Manager shall change such that the City Manager shall not have the full authority to perform the obligations imposed on that office envisioned under this Lease, then the City shall, upon request of Developer, designate such other officer or department as may be appropriate to perform the City Manager's obligation. Developer shall secure and pay for any and all permits and approvals necessary for proper construction and completion of the Improvements with the exception of the permits and approvals required pursuant to Section 380.06, Florida Statutes and/or Chapter 33A of the Dade County Code, if any (the "Environmental Laws"). Developer shall secure any and all permits and approvals, except for the Environmental Laws, required to perform any and all of the work or operations contemplated to be done or performed under any of the provisions of this Agreement including, but not limited to, any alterations and renovations made pursuant to Section 3.14 hereof, and shall pay any and all -46- fees and charges due to and collected by the City in connection with the issuance of any such permits and approvals. In connection with the satisfaction of any requirements imposed by the -Environmental Laws, the City agrees to pursue a Binding Letter of Determination pursuant to Section 380.06(4)(a), Florida Statutes and/or a Developers Agreement pursuant to Rule 98-16.18, Florida Administrative Code and/or a Development Order pursuant to Section 380.06, Florida Statutes and/or any other good faith means designated to the City to satisfy such requirements. Should the City pursue a letter of interpretation or other Dade County Development of County Impact process for any portion of the Leased Property, the City shall be financially responsible for filing and processing any necessary documentation submitted in connection therewith, provided, however, that nothing herein contained shall be construed to require the City or Developer to take any act or expend any funds in order to comply with any of the conditions contained within any Development Order, or other official action, issued as a result of these pursuits. Developer shall have the right to review and approve any such documentation prior to its submission to the relevant governmental agency, and shall be notified of all meetings with governmental staff or officials related to the processing of any of the aforesaid administrative proceedings so that Developer or its representative shall have the option of attending such meetings. Developer agrees to cooperate with the City to the maximum extent possible in these administrative proceedings, including, but not limited to, providing such technical assistance and information as Developer may have reasonably available to contribute to the City's efforts. - 47 - Section 3.12 Compliance with Law. Developer will comply in every respect with any and all federal, state, county and municipal laws, ordinances, rules, regulations and notices now or hereafter in force or Issued which may be applicable to any and all of the work or operations to be done, performed, or carried on by Developer hereunder. Nothing herein contained shall be deemed to limit the right of Developer to contest the validity or enforceability of any statute, law, ordinance, rule, regulations, order or notice with which Developer may be required to comply. Section 3.13 Extension of Time Requirements. The times within which Developer must submit Preliminary Plans, Construction Plans and evidence of financing, and the times within which Developer must commence and complete the development of the Leased Property and the construction of the Improvements thereon as specified in this Article may be extended in writing by the City Manager in its sole discretion, for such periods of time as it deems advisable, for good and sufficient cause shown by the Developer to the reasonable satisfaction of the City Manager. Any such extension of time shall be in writing and in such form as will enable it to be recorded among the Land Records of Dade County. Section 3.14 Alterations and Renovations. After the completion of construction of the Improvements, Developer from time to time may make such alterations or renovations thereof as it shall deem desirable, provided, however, that no -renovation or alteration which affects the exterior appearance of the Parking Garage and Area B Surface Lot or substantially affects the overall character and appearance of any public circulation area shall be made until such time as the City Manager shall have approved definitive construction plans and specifications therefore, which approval shall not be unreasonably withheld or delayed. Developer must secure and pay -48- for any and all permits and approvals required to perform any of the contemplated alterations or renovations. Section 3.15 Art in Public Places. The Developer shall utilize 1/2 of 1 percent of all Developer construction funds ("hard -cost" line items only) for art in the public areas on or near the Leased Property. ARTICLE IV LAND USES Section 4.1. Land Uses. Developer and the City agree, for themselves and their successors and assigns, to devote the Leased Property, and the Park Site to the uses specified in this Agreement and to be bound by and comply with all of the provisions and conditions of this Agreement. Section 4.2. Character and Operation of Improvements. The parties recognize and acknowledge that the manner in which the Leased Property and Improvements are developed, used and operated are matters of critical concern to the City by reason of (i) the prominence of the location in Bayfront Park to the Leased Property, and (ii) the impact which the development of the Leased Property is expected to have upon the surrounding Park Site and upon the eco- nomic development of the downtown area of the City. In order to give the City assurance as to the manner in which the Improvements will be used and operated, Developer agrees that at all times during the term of this Lease, Developer will use its diligent efforts to operate the Parking Garage and Area B Surface Lot as a first class public parking facility to at least the same level of quality as any publicly owned or publicly operated parking facilities in the City of Miami. ARTICLE V ANTI -SPECULATION; ASSIGNMENT Section 5.1 Definitions. As used herein, the term: - 49 - (a) "Transfer" means: (i) any total or partial sale, assignment or conveyance (other than by a Leasehold Mortgage or Financing Sublease) or any trust or power, or any transfer in any other mode or form of or with respect to this Lease or of the leasehold estate in the Leased Property or any part thereof or any interest therein, or any contract or agreement to do any of the same; (ii) . any transfer of the stock of the General Partner of Developer (excluding any shareholder of an Owner whose shares are publicly traded) or of any Owner, other than an Owner whose shares are publicly traded; or (iii) any merger, consolidation or sale or lease of all or' substantially all of the assets of Developer or of any Owner, other than an owner whose shares are publicly traded. (b) "Owner" means: (i) any person, firm, corporation or other entity which owns, directly or indirectly, legally or beneficially, one percent (1%) or more of the stock of the General Partner of Developer or other form of ownership interest of the Developer; and (ii) any person, firm, corporation or other entity which owns, directly or indirectly, legally or beneficially, more than fifty percent (5O%) of the stock of the General Partner of Developer or other form of ownership interest of any entity described in clause (i) or this clause (ii), but shall not include any shareholder of an Owner whose shares are publicly traded. (c) "Owner whose shares are publicly traded" means an Owner: (i) who has filed an effective registration statement with the Securities & Exchange Commission (or its successor) with respect to the -50- shares of any class of its voting stock or of all classes of any other form of ownership interest which includes voting rights; and (ii) whose voting stock and other form of ownership interest described in clause (i) is listed for trading purposes on a securities exchange subject to the regulatory jurisdiction of the Securities & Exchange Commission (or its successor) or is publicly traded over the counter. Section 5.2. Purposes of Restrictions on Transfer. This Lease is granted to Developer solely for the purpose of development of the Leased Property and its subsequent use in accordance with the terms hereof, and not for speculation in landholding. Developer recognizes that. in view of: (a) The importance of the development of the Leased Property to the general welfare of the community; (b) The substantial financing and other public aids that have been made available by the City for the purpose of making such development of the Bayfront Park possible; and (c) The fact that a transfer of the stock of the General Partner of Developer or a substantial part thereof, or any other act or transaction involving or resulting in a significant change in , the ownership or distribution of such stock or with respect to the identity of the parties in control of Developer or the degree thereof, is for practical purposes. a transfer or disposition of the leasehold interest in the Leased Property then owned by Developer; the qualifications and identity of Developer and any Owner are of particular concern to the community and the City. Developer further recognizes that it is because of such qualifications and identity that the City is entering into this Lease with Developer, and, in so doing, is further 51 willing to accept and rely on the obligations of Developer for the faithful performance of all undertaking and covenants by it to be performed. Section 5.3. Transfers. Developer, on behalf of itself and any and all Owners, represents and warrants that neither Developer nor any Owner has made, created or suffered any Transfers. Except as permitted pursuant to subparagraphs (a) through (1) hereof, no Transfer may be made, suffered or created by Developer or any Owner. The following Transfer shall be permitted hereunder: (a) Any Transfer by Leasehold Mortgage to an Institutional Investor or to an agent, designee or nominee of an Institutional Investor which is wholly owned or controlled by an Institutional Investor or pursuant to a Financing Sublease, pursuant to Article VI. (b) Any Transfer directly resulting from the foreclosure of a Leasehold Mortgage or the granting of a deed in lieu of foreclosure of a Leasehold Mortgage or any Transfer made by the purchaser at foreclosure of a Leasehold Mortgage or by the grantee of a deed in lieu of foreclosure of a Leasehold Mortgage, provided that such purchaser or grantee is an Institutional Investor or an agent, designee or nominee of an Institutional Investor which is wholly owned or controlled by an Institutional Investor, and that such purchaser or grantee within six (6) months after taking possession of the Project, shall have entered into an Acceptable Operator's Agreement as described in Subsection VI(c)(iv) of this Agreement. (c) Any Transfer directly resulting from a conveyance to a Lender/ Landlord of the Developer's interest provided that such Transferee, within thirty (30) days after taking possession of the Project, shall have entered into an Acceptable Operator's Agreement as described in Subsection VI(c)(iv) of this Agreement. -52- (d) Any Transfer to a purchaser having a good reputation and finan- cial resources in the opinion of the City Manager and the City Commission to own the Project (an "Acceptable Purchaser") that shall have entered into an Acceptable Operators Agreement. If Developer shall dispute a withholding of consent by the City pursuant to this subsection (d), Developer may submit such dispute to arbitration pursuant to the terms hereof. The basis for such arbi- tration shall be the reasonableness of the City Manager and City Commission's decision whether or not such purchaser met the criteria herein set forth to qualify as an Acceptable Purchaser or that the Acceptable Purchaser did not enter into an Acceptable Operator Agreement. (e) Any Transfer to a joint venture, general or limited partnership, joint stock association or Massachusetts business trust, a substantial interest in which is held by Developer and the other interests in which are held by a Leasehold Mortgagee or Lender/Landlord or by such other persons, firms, corporations, or other entities as to which the City Manager shall have given his approval in his sole discretion, provided that, within thirty (30) days after gaining possession of the Project, the Transferee shall have entered into an Acceptable Operator's Agreement. (f) Any Transfer by a limited partner who is an Owner who is a Black American or a Hispanic American to a Black American or an Hispanic American or to an entity which is not an Owner but is owned or controlled by a Black American or Hispanic American immediately after- such Transfer which is consented to by the City Manager and City Commission, which consent may not be unreasonably withheld. (g) Any Transfer by an Owner who is a limited partner of Developer and who also is a Black American or Hispanic American into a charitable trust, a blind trust or for estate planning purposes for the immediate family; pro- - 53 - vided, however, as to a Transfer by an Owner for estate planning purposes for the immediate family, the effective control of ownership is to remain in the transferor or another Black American or Hispanic American. (h) Any Transfer resulting from the death or dissolution of an Owner provided that same does not result in the dissolution or termination of Devel- oper or any general partner of Developer. (i) Any Transfer for tax syndication purposes, provided the General Partner of the Developer remains the managing general partner of the Developer after the syndication. (j) any transfer to an entity which is not an Owner, all of the stock or other form of ownership interest of which is owned by an Owner. Any consent to a Transfer shall not waive any of the City's rights to consent to a subsequent Transfer. Any Transfer made in violation of theterms hereof shall be null and void and of no force and effect. Section 5.4. Notice of Transfer; Information as to Shareholders. (a) With respect to any Transfer which must be approved by the City, Developer shall give or cause to be given to the City written notice (including all information necessary for the City to make an evaluation of the proposed Transfer according to the requirements of this Agreement) of any Transfer of which Developer or its officers shall have knowledge, not less than sixty (60) days prior to any such proposed Transfer and the City shall within thirty (30) days of its receipt of such information, advise Developer if it shall consent to same. If the City shall not consent to a Transfer, the City Manager shall state the reasons for such disapproval in his notice to Developer withholding his consent. If the City is not required to consent to a Transfer pursuant to the terms hereof, Developer shall notify the city in writing of same within thirty (30) days after the date of Transfer. - 54 - (b) Developer shall from time to time throughout the term of this Lease as the City shall reasonably request, furnish the City with a complete statement, subscribed and sworn to by the President or Vice -President and the Secretary or Assistant Secretary of the general partner of Developer, setting forth the full names and address of holders of partnership interests in Developer, or any general partners of Developer or the stock of any general partner of Developer and the extent of their holdings, and in the event any other parties have a beneficial interest in such stock, their full names and addresses and the extent of such interest as determined or indicated by the records of Developer, by inquiry which such officers shall make of all parties who on the basis of such records own one percent (l%) or more of the ownership interest of Developer or by such other knowledge or information as either of such officers shall have. Notwithstanding the foregoing, the information required by this subparagraph (b) shall not be required to be furnished with respect to the shareholders of any Owner whose shares are publicly traded. Section 5.5. Effectuation of Certain Permitted Transfers. No Transfer of the nature described in subsections (d), (e) and (i) of Section 5.3 shall be effective unless and until the entity to which such Transfer is made, by instrument in writing satisfactory to the City Manager and in form recordable among the land records, shall, for itself and its successors and assigns, and especially for the benefit of the City, expressly assume all of the obligations of Developer under this Lease and agree to be subject to all conditions and restrictions to which Developer is subject; provided, however, that any Lender, Leasehold Mortgagee, Lender/Landlord transferee shall not be .required to assume any personal liability under this Lease with respect to any matter arising prior or subsequent to the period of such transferee's actual ownership of the leasehold estate created by this Lease (it being understood, -55- nevertheless, that the absence of any such liability for such matters shall not impair, impede or prejudice any other right or remedy available to the City for default by Developer); and provided further, that the fact that any such transferee of, or any other successor in interest whatsoever to, the leasehold estate in the Leased Property or the Improvements, or any part thereof, shall whatever the reason, not assume such obligations or so agree, shall not (unless and only to the extent otherwise specifically provided in this Lease or agreed to in writing by the City) relieve or accept such trans- feree or successor of or from such obligations, conditions or restrictions, or deprive or limit the City of or with respect to any rights, remedies or controls with respect to the leasehold estate in the Leased Property or the construction of the construction of the Improvements. Section 5.6. Transfers of the City's Interests. The City represents and agrees for itself, Its successors and assigns, that the City has not made or created and that it will not, during the term of this Lease, make or create or suffer to be made or created any total or partial sale, assignment, conveyance, mortgage, trust or power, or other transfer in any mode or form of or with respect to the City's reversionary interest in the Leased Property or any part thereof or any interest therein or any contract or agreement to do any of the same, to any purchaser, assignee, mortgagee or trustee unless such purchaser, assignee, mortgagee or trustee shall have the authority and the ability, in the Developer's opinion, to assume the obligations of the City under this .Lease and the purchaser, assignee, mortgagee or trustee shall expressly agree to assume the obligations of the City under this Lease, in a form satisfactory to Developer and any Leasehold Mortgagee. -56- Notwithstanding any such transfer and assumption, the City shall not be released from its obligations pursuant to Sections 2.8 and 3,5, which obligations are personal to the City and shall remain in effect during the term of this Lease. Section 5.7. Minority Participation in Ownership. Developer agrees that no less than twenty percent (20%) of the ownership interest in Developer shall be held by persons who are Black Americans or Hispanic Americans or entities who would qualify as a Minority Business Enterprise controlled by Black Americans or Hispanic Americans as the term "Minority Business Enterprise" is defined in that certain Minority Participation Agree- ment attached as Exhibit H to the Retail Area Ground Lease. Notwithstanding any provision in this Lease to the contrary, any transfer by any limited partner of the Developer in violation of Article V shall be null and void but shall not be deemed to be an Event of Developer's Default. ARTICLE VI MORTGAGEE FINANCING; RIGHTS OF MORTGAGEE Section 6.1. Leasehold Mortgage. (a) Notwithstanding the provisions set forth in Article V hereof regarding any Assignment of this Lease, but subject to the provisions of this Article VI, provided that an Event of Default has not occurred and is not continuing, Developer shall have the right at any time and from time to time to encumber the leasehold estate created by this Lease and any improvements by Mortgage, Sale-Subleaseback transaction, deed of trust or other security instrument, including, without limitation, an assignment of the rents, issues and profits from the Leased Property and Improvements to secure repayment of a loan or loans (and associated obligations) made to Developer by an Institu- -57- tional Investor (as defined below) for the sole purpose of securing the financing of the construction of any Developer Improvements made pursuant to the terms of this Lease or for the long-term financing or refinancing of any such Improvements. In no event may the amount of such financing or refinancing exceed Development Costs. Developer shall deliver to City promptly after execution by Developer a true and verified copy of any Leasehold Mortgage (as defined below), or any Financing Sublease and any amendment, modification or extension thereof, together with the name and address of the owner and holder thereof. Developer may not encumber the leasehold estate created by this Lease as security for any indebtedness of Developer or The Rouse Company with respect to any other property now or hereinafter owned by Developer and/or The Rouse Company except that Developer may so encumber same as additional security for a loan or loans granted to Developer in connection with the Bayside Specialty Center. (b) For purposes of this Article VI; "Institutional Investor" shall mean any national bank organized under the laws of the United States or any commercial bank, or any savings and loan association, savings bank, trust company or insurance company organized under the laws of the United States or any state of the United States, or any pension, retirement or welfare trust or fund supervised by a government authority of any state or the United States or any such trust or fund administered by an entity which is supervised by a governmental authority; "Leasehold Mortgage" shall mean a mortgage, deed of trust or assignment of the rents, issues and profits from .the Leased Property and Improvements, which constitutes a lien on the leasehold estate created by this• Lease and on the fee interest of Developer in any Improvements during the term of this Lease; and "Lender" shall mean an Institutional Investor who is the owner and holder of a Leasehold Mortgage, provided, however, that the City -58- shall have no duty or obligation to determine independently the relative priorities of any Leasehold Mortgages, but shall be entitled to rely absolutely upon a preliminary title report current as of the time of any determination of the priorities of such Leasehold Mortgage and prepared by a generally -recognized title insurance company doing business in Miami, Florida. (c) During the continuance of any Leasehold Mortgage until such time as the lien of any Leasehold Mortgage has been extinguished, and if a true and verified copy of such Leasehold Mortgage shall have been delivered to the City Manager together with a written notice of the name and address of the owner and holder thereof as provided in Section 6.1(a) above: (i) The City shall not agree to any mutual termination nor accept any surrender of this Lease (except upon the expiration of the full term of this Lease) nor shall the City consent to any material amendment or modification of this Lease or waive any rights or consents it may be entitled to pursuant to the terms hereof, without the prior written consent of Lender. (ii) Notwithstanding any default by Developer in the performance or observance of any covenant, condition or agreement of this Lease on the part of Developer to be performed or observed, the City shall have no right to terminate this Lease even though an Event of Default under this Lease shall have occurred and be continuing, unless and until the City Manager shall have given Lender written notice of such Event of Default and Lender shall have failed to remedy such default or to acquire Developer's lease- hold estate created hereby or to commence foreclosure or other appropriate proceedings in the nature thereof, all as set forth in, and within the time specified by, this Article VI. -59- (iii) Subject to the provisions of subparagraph (iv) immediately below, Lender shall have the right, but not the obligation, at any time prior to termination of this Lease and without payment of any penalty, to pay all of the rents due hereunder, to provide any insurance, to pay any taxes and make any other payments, to make any repairs and improvements, to continue to construct and complete the Improvements, and do any other act or thing required of Developer hereunder, and to do any act or thing which may be necessary and proper to be done in the performance and observance of the covenants, conditions and agreements hereof to prevent the termination of this Lease. All payments so made and all things so done and performed by Lender shah be as effective to prevent a termination of this Lease as the same would have been if made, done and performed by Developer instead of by Lender. (iv) Should any Event of Default under this Lease occur, Lender shall have sixty (60) days after receipt of notice from the City Manager setting forth the nature of such Event of Default, to remedy same and, if the default is such that possession of the Leased Property and Improvements may be reasonably necessary to remedy the default, Lender shall, within such sixty (60) day period, commence and diligently prosecute a foreclosure action or suchother proceeding as may be necessary to enable Lender to obtain such possession, provided that (a) Lender shall have fully cured any default in the payment of any monetary obligations of Developer under this Lease within such sixty (60) day or longer period and shall continue to pay currently such monetary obligations as and when the same are due, (b) Lender shall within six (6) months of the date that it takes possession of the Leased Property enter into an agreement on terms and conditions reasonably acceptable to the City with an Acceptable Operator for the - 60 - continued operation of the Leased Property and Improvements (hereinafter called "Acceptable Operator's Agreement"), and (c) Lender shall have acquired Developer's leasehold estate created hereby or commenced foreclosure or other appropriate proceedings in the nature thereof within such sixty (60) day period or prior thereto, and shall be diligently and continuously prosecuting any such proceedings to completion. All rights of the City Manager to terminate this Lease as the result of the occurrence of any such Event of Default shall be subject to and conditioned upon the City Manager having first given Lender written notice of such Event of Default and Lender having failed to remedy such default or acquire Developer's leasehold estate created hereby or commence foreclosure or other appropriate proceedings in the nature thereof as set forth in and within the time period specified by this subparagraph (iv). (v) An Event of Default under this Lease which in the nature thereof cannot be remedied by Lender shall be deemed to be remedied if (a) within sixty (60) days after receiving written notice from the City Manager setting forth the nature of such Event of Default, Lender shall have acquired Developer's leasehold estate created hereby or commenced foreclosure or other appropriate proceedings in the nature thereof, (b) Lender shall diligently and continuously prosecute any such proceedings to completion, (c) Lender shall have fully cured any default in the payment of any monetary obligations of Developer under this Lease which do not require possession of the Leased Property and Improvements within such sixty (60) days period and shall thereafter continue to faithfully perform all such monetary obligations which do not require possession of the Proj- ect, and (d) within six (6) months after Lender shall have gained posses- sion of the Leased Property and Improvements, Lender shall have entered - 61 - into an Acceptable Operator's Agreement. Upon the taking of possession of the Leased Property and Improvements by Lender, Lender shall perform all of the obligations of the Developer hereunder as and when the same are due except that a Lender shall not be bound by the provisions of subsection 5.7 hereof. Notwithstanding the foregoing, the City agrees that Lender shall not be obligated to complete construction of the Improvements if Lender shall succeed to Developers estate under this Lease. Any assignee or successor in interest to a Lender that has taken possession of the Leased Property must, however, assume all of Developer's obligations (except as set forth in subsection 5.7 hereof) hereunder, including, but not limited to, the construction obligation. (vi) If the Lender is prohibited by any process or injunction issued by any court or by reason of any action by any court having jurisdiction of any bankruptcy, debtor rehabilitation or insolvency proceedings involving Developer from commencing or prosecuting foreclosure or other appropriate proceedings in the nature thereof, the times specified in subparagraphs (iv) and (v) above for commencing or prosecuting such foreclosure or other proceedings shall be extended for the period of such prohibition; provided that Lender shall have fully cured any default in the payment of any monetary obligations of Developer under this Lease and shall continue to pay currently such monetary obligations as and when the same fall due, and provided that Lender shall diligently attempt to remove any such prohibition. (vii) The City Manager shall mail to Lender a duplicate copy by certified mail of any and all notices which the City may from time to time give to or serve upon Developer pursuant to the provisions of this Lease; - 62 - and no notice by the City Manager to Developer hereunder shall be deemed to have been given unless and until a copy thereof has been mailed to Lender. (viii) Foreclosure of a Leasehold Mortgage or any sale thereunder, whether by judicial proceedings or by virtue of any power of sale contained in the Leasehold Mortgage, or any conveyance of the leasehold estate created hereby from Developer to Lender by virtue or in lieu of the foreclosure or other appropriate proceedings in the nature thereof, shall not require the consent of the City or constitute a breach of any provision of or a default under this Lease. Upon such foreclosure, sale or conveyance, the City shall recognize Lender, or any other foreclosure sale purchaser, as tenant hereunder except that all obligations on Developer herein contained shall be binding on the Lender only from and after the date that it shall take title to the Developer's leasehold estate unless otherwise in this Article VI provided; provided, that Lender or any such foreclosure sale purchaser must enter into an Acceptable Operator's Agreement, within six (6) months of the date of such foreclosure, sale or conveyance, and further, provided, that in the event there are two or more Leasehold Mortgages or foreclosure sale purchasers (whether the same or different Leasehold Mortgages), the City shall have no duty or obligation whatsoever to determine the relative priorities of such Leasehold Mortgages or the rights of the different holders thereof and/or foreclosure sale purchasers. In the event Lender subsequently assigns or transfers its interest under this Lease after acquiring the same by foreclosure or by an acceptance of a deed in lieu of foreclosure or subsequently assigns or transfers its interest under any such new - 63 - lease, and in connection with any such assignment or transfer Lender takes back a mortgage or deed of trust encumbering such leasehold interest to secure a portion of the purchase price given Leasehold Mortgage as contemplated under this Section 6.1, Lender shall be entitled to receive the benefit of this Article VI and any other provisions of this Lease intended for the benefit of the holder of a Leasehold Mortgage. Any person or entity to whom this Lease or any such new lease is assigned must either enter into or assume Lender's obligations under an Acceptable Operator's Agreement. (ix) Should the City terminate this Lease by reason of any default by Developer hereunder, the City Manager shall give notice thereof to all Leasehold Mortgagees and the City Manager shall, upon written request by Lender to the City Manager received within sixty (60) days after such termination, execute and deliver a new lease of the Leased Property and Improvements to Lender for the remainder of the term of this Lease with the same covenants, conditions and agreements (except for any requirements which have been satisfied by Developer prior to termination) as are contained herein, provided, however, that the City's execution and delivery of such new lease of the Leased Property and Improvements shall be made without representation or warranty of any kind or nature whatso- ever, either express or implied, including without limitation, any repre- sentation or warranty regarding title to the Leased Property and Improve- ments or any Improvements or the priority of such new lease (except as to actions taken by the City during the period commencing on the date of termination of this Lease and terminating on the date of such new Lease). The City's delivery of any Improvements to Lender pursuant to such new lease shall be made without representation or warranty of any kind or - 64 - nature whatsoever, either express or implied; and Lender shall take any Improvements "as -is" in their then current condition (except as to any actions taken or improvements made by the City duringsuch time as the Leased Property were not the subject of a Lease). Upon execution and delivery of such new lease, Lender at its sole cost and expense, shall be responsible for taking such action as shall be necessary to cancel and discharge this Lease and to remove Developer named herein and any other occupant (other than as allowed by the City) from the Leased Property and Improvements. The City's obligation to enter into such new lease of the Leased Property and Improvements within the Lender shall be conditioned upon Lender having remedied and cured all monetary defaults hereunder and having remedied and cured or has commenced and is diligently completing the cure of all non- monetary defaults of Developer susceptible to cure by any party other than by Developer. If the City receives written requests in accordance with the provisions of this Section 6.1(ix) from more than one Leasehold Mortgagee, the City shall only be required to deliver the new lease to the Leasehold Mortgagee who is, among those Leasehold Mortgagees requesting a new lease, the holder of the most junior Leasehold Mortgage, provided that such Leasehold Mortgagee shall, not later than the execution of such new lease, either (x) pay in full the sums secured by any or all Leasehold Mortgages which are prior in lien to the Leasehold Mortgage held by such Leasehold Mortgagee, or (xx) agree to reinstate the liens of any or all Leasehold Mortgages which are prior in lien to the Leasehold Mortgage held by such Leasehold Mortgagee with the same relative priority as existed prior to the termination of this Lease. If any Leasehold Mortgagee having the right to a new lease pursuant to this Section 6.1(ix) shall elect to enter into a new lease but shall fail to do -65- so or shall fail to take the action required above, the City shall so notify all other Leasehold Mortgagees (if any) and shall afford such other Leasehold Mortgagee a period of sixty (60) days from such notice within which to elect to obtain a new lease in accordance with the provisions of this Section. Except for any liens reinstated pursuant to this Section, the new lease shall be prior to any mortgage or other lien, charge or encumbrance on the fee of the Leased Property or the improvements and shall have the same relative priority in time and in right as this Lease and shall have the benefit of all of the right, title, powers and privileges of Developer hereunder in and to the Leased Property and the Improvements. At Developer's request, the City will enter into an agreement with any Leasehold Mortgagee granting to the Leasehold Mortgagee the rights set forth in this Article. If such new lease is entered into pursuant hereto, the Lender shall be entitled to offset from the previous rentals due the City under this Lease, the net operating profit, if any, made by the City during the period that the City shall have operated the Improvements. (x) City and Developer shall cooperate in including in this Lease by suitable amendment from time to time any provision which may be requested by any proposed Lender, or may otherwise be reasonably necessary, to implement the provisions of this Article VI; provided, however, that any such amendment shall not in any way affect the term hereby demised nor affect adversely in any material respect any rights of the City under this Lease. (xi) All rights and benefits afforded to a Leasehold Mortgagee hereunder shall also be afforded to a party providing financing to Developer pursuant to a Financing Sublease. - 66 - Section 6.2. No Waiver of Developer's Obligations or City's Rights. Nothing contained herein or in any Leasehold Mortgage shall be deemed or construed to relieve Developer from the full and faithful observance and performance of its covenants, conditions and agreements contained herein, or from any liability for the non -observance or non-performance thereof, or to require or provide for the subordination to the lien of such Leasehold Mortgage of any estate, right, title or interest of the City in or to the Improvements or this Lease. ARTICLE VII REMEDIES Section 7.1. Events of Default - Developer. The following events are hereby defined as "Events of Developer's Default": (a) Failure - Payment of Money. Failure of Developer to pay any Rental, Additional Rental or Public Charges or any other payments of money as herein provided or required, when due and the continuance of such failure for a period of ten (10) days after notice thereof in writing. In the event that any payment or installment of Rental is not paid to the City on the date the same becomes due and payable, Developer covenants and agrees to pay to the City interest on the amount thereof from the date such payment or installment became due and payable to the date of payment thereof, at the Default Rate. All other payments of money required to be paid to the City by the Developer under this Lease, including interest, penalties and contributions, shall be treated as Additional Rental. (b) Failure - Performance of Other Covenants, Etc. Failure of Developer to perform any of the other covenants, conditions and agreements which are to be performed by Developer in this Lease and the continuance of - 6 7 - such failure or default for a period of sixty (60) days after notice thereof in writing from the City to Developer (which notice shall specify the respects in which the City contends that Developer has failed to perform any such covenants, conditions and agreements), unless such default was not caused or created by the Developer and cannot be cured within sixty (60) days and the Developer within said sixty (60) day period shall have commenced and thereafter shall have continued diligently to prosecute all actions necessary to cure such default, said failure shall constitute an Event of the Developer's Default. (c) Bankruptcy, etc. 1. if an order or relief shall be entered upon any petition filed by or against Developer, as debtor, seeking relief (or instituting a case) under Chapters 7, 9, 11 or 13 of the Bankruptcy Code of 1978, 11 U.S.C. (Sec. 10 et seq.) or any successor thereto; or 2. if Developer admits its inability to pay its debts, or if a receiver, trustee or other court appointee is appointed for all or a substantial part of Developer's property; or 3. if the leasehold interest of Developer is levied upon or attached by process of law; or 4. if Developer makes an assignment for the benefit of creditors or takes the benefit of any insolvency act, or if any proceedings are filed by or against Developer to declare Developer insolvent or unable to meet its debts; or 5. if a receiver or similar type of appointment or court appointee or nominee of any name or character is made for Developer or its property; or 6. if Developer shall abandon the Leased Property during the term of this Lease or any renewals or extensions thereof; or -68- 7. if Developer shall assign this Lease or sublet any portion of the Leased Property, except as permitted herein. Section 7.2. Remedies for Developer's Default. If any of the Events of Developer's Default shall occur, the City may, at its option, institute such proceedings as in its opinion are necessary to cure such defaults or to compensate the City for damages resulting from such defaults, including but not limited to the right to give to the Developer a notice of termination of this Lease. If such notice is given, except as otherwise provided in Article VI hereof, the term of this Lease shall terminate, upon the date specified in such notice from the City to Developer, as fully and completely as if that date were the date herein originally fixed for the expiration of the term of this Lease, and on the date so specified, Developer shall then quit and surrender the Leased Property to the City in accordance with Section 11.S. Upon the termination of this Lease, as provided in this Section 7.2, all rights and interest of the Developer in and to the Leased Property and every part thereof shall cease and terminate and the City may, in addition to any other rights and remedies it may have, retain all sums paid to it by the Developer under this Lease. Section 7.3. Events of Default - City. (a) Events of Default. The failure of the City to perform any of the covenants, conditions and agreements of this Lease which are to be per- formed by the City and the continuance of such failure for a period of sixty (60) days after notice thereof in writing from Developer to the City (which notice shall specify the respects in which Developer contends that the City has failed to perform any of such covenants, conditions and agreements) and unless such default be one which cannot be cured within sixty (60) days and - 69 - the City within such sixty (60) day period shall have commenced and thereafter shall continue diligently to prosecute all actions necessary to cure such defaults, such failure shall constitute an "Event of the City's Default". (b) Remedies for City's Default. If an Event of the City's Default shall occur, Developer, to the fullest extent permitted by law, shall have the right to pursue any or all of the following remedies: (i) the right and option to terminate this Lease and all of its obligations hereunder by giving notice of such election to the City, whereupon this Lease shall terminate as of the date of such notice; (ii) the right to a writ of mandamus, injunction or other similar relief, available to it under Florida law against the City (including any or all of the members of its governing body, and its officers, agents or representative) provided, however, that in no event shall any member of such governing body or any of its officers, agents or representatives be personally liable for any of the City's obligations hereunder; (iii) the right to.maintain any and all actions at law or suits in equity or other proper proceedings to obtain damages resulting from such default. Section 7.4. Unavoidable Delay. For the purpose of any of the provisions of this Agreement, neither the City (including the City Manager) nor Developer, as the case may be, nor any successor in interest, shall be considered in breach of or in default in any of its obligations, including but not limited to the preparation of the Leased Property for development, or the beginning and completion of construction of the Improvements, or progress in respect thereto, in the event of unavoidable delay in the performance of such obligations due to strikes, lockouts, acts of God, inability to obtain labor -70- or materials due to governmental restrictions, enemy action, civil commotion, fire, unavoidable casualty or other similar causes beyond the reasonable control of a party (not including such party's insolvency of financial condition), it being the purpose and intent of this paragraph that in the event of the occurrence of any such unavoidable delays the time or times for the performance of the covenants, provisions and agreements of this Lease, including but not limited to the obligations of the Developer with respect to construction of Improvements, shall be extended for the period of unavoidable delay; provided, however, that the party seeking the benefit of the provisions of this Section shall, within thirty (30) days after such party shall have become aware of such unavoidable delay, give notice to the other party thereof in writing of the cause or causes thereof and the time delayed. The parties hereto agree that if any delay in the occurrence of any event -shown on Exhibit G hereto shall be caused by an act of unavoidable delay, the Rent Commencement Date shall be postponed to a date extended by the period of such delay or the Opening Date, whichever is earlier. Notwithstanding the foregoing, Developer agrees to use reasonable and diligent efforts to cause the Parking Garage to be opened for business with the general public by October 31, 1986. Section 7.5. Obligations, Rights and Remedies Cumulative. The rights and remedies of the parties to this Agreement, whether provided by law or by this Agreement, shall be cumulative, and the exercise by either party of any one or more of such remedies shall not preclude the exercise by it, at the same or different times, of any other such remedies for the same default or breach or of any of its remedies for any other default or breach by the other party. No waiver made by either party with respect to performance, or manner or time thereof, of any obligation of the other party or any condition to its - 71 own obligation under this Agreement shall be considered a waiver of any rights of the party making the waiver with respect to the particular obligations of the other party or condition to its own obligation beyond those expressly waived and to the extent thereof, or a waiver in any respect in regard to any other rights of the party making the waiver or in regard to any obligation of the other party. ARTICLE VIII PROTECTION AGAINST MECHANICS' LIENS AND OTHER CLAIMS, INDEMNIFICATION Section 8.1. Mechanics' Liens and Payments of Obligations. (a) Developer to Discharge Mechanics' Liens. Developer shall not be given possession of the Leased Property or authorized to begin construction thereon prior to the recording of this Lease and prior to Possession Date so as not to subject the fee interest of the City to mechanics' liens. If any such mechanics' liens shall at any time be filed against the Leased Property, Developer shall promptly take and diligently prosecute appropriate action to have the same discharged or to contest in good faith the amount or validity thereof and if unsuccessful in such contest, to have the same discharged. Upon Developer's failure so to do, the City, in addition to any other right or remedy that it may have, may take such action as may be reasonably necessary to protect its interest, and Developer shall pay any amount paid by the City in connection with such action, and all reasonable legal and other costs and expenses incurred by the City in connection therewith (including reasonable counsel fees, court costs and other necessary disbursements). Any such amounts paid by the City and the amount of any such expenses or costs incurred by the City, if not paid by Developer to the City within thirty (30) days after the date Developer receives written notice from the City of the amount thereof and - 72 - demand for payment of the same, shall, together with interest thereon at the Default Rate from the date of the receipt by Developer of the aforesaid written notice and demand to the date of payment thereof by Developer, be treated as Additional Rental, and shall be payable by Developer to the City not later th n the n�e1xt mont ly i s llm nt of the Annual Basic. Repta,l, ; CL`�`ti, fop �O%i•� i, �;.•0.~t,? t��rpfi i' "[:i;,1 .•_...�_. ..�.....:. �D .. , , bpcomin due. 1t9 _ a a; cN.,w- ()Ned(4eKI41. p ig Jae Materialmen and Suppliers. Developer shall make, or cause to be made, prompt payment of all money due and legally owing to all persons doing any work or to subcontractors in connection with the development, construction, equipment, repair or reconstruction of any of the Improvements required by this Agreement to be constructed by Developer on the Leased Property. Nothing in this subparagraph (b) shall limit the right of Developer to contest, in good faith, by legal proceedings or otherwise, whether any amount claimed or alleged to be due and owing to any such person is legally due and owing and to withhold payment of such amounts pending resolution of such dispute. Section 8.2. Indemnity. Notwithstanding any policy or policies of insurance required of Developer, Developer shall indemnify and save harmless the City from and against any and all actions, claims or demands, suits at law, In equity or before administrative tribunals, due to the negligence of Developer, its agents, servants, employees or contractors arising out of the use or occupancy of the Leased Property by such persons. Developer shall defend any and all such actions, claims, demands or suits on behalf of the City at Developer's sole cost and expense The City shall indemnify and save harmless Developer from and against any and all claims or demands, suits at law, in equity or before administrative tribunals, due to the negligence of the City, its agents, servants, employees, or contractors arising out of the - 73 - use or occupancy of the Leased Property by such persons. The City shall defend any and all such action, claims, demands or suits on behalf of Developer at the City's sole cost and expense. ARTICLE IX INSURANCE Section 9.1. Insurance Coverage. Beginning on the Possession Date and during the term of this Lease, Developer at its sole cost and expense shall maintain or cause to be maintained: (a) Property Insurance. Insurance on the Improvements against All Risks of physical loss or damage, including the expense of the removal of debris of such property as a result of damage by an insured peril. Coverage shall be written on as broad an All Risk form as is commercially available. The insurance shall be written on a replacement cost basis. If the policy or policies of insurance contain a co-insurance requirement, the policy or policies shall contain an agreed amount endorsement. During the construction period. property insurance may be provided on a Completed Value Builder's Risk form. The City and Developer shall be designated as named insureds on such Builder's Risk Policy. The term "Improvements", as used in this paragraph, shall be deemed to include all personal property furnished or installed on the premises and owned by the Developer, and the insurance herein provided shall cover the same. The adequacy of all insurance coverage may be reviewed periodically by the City Manager at his discretion. Any review by the City Manager shall not constitute an approval or acceptance of the amount of insurance coverage. In the event that insurance, proceeds are inadequate to rebuild and restore the damaged Improvements to substantially their previous condition before an -74_ insurable loss occurred, and the cause of the deficiency in ,insurance proceeds is the failure of the Developer to adequately insure the Improvements as required by this Agreement, Developer must nevertheless rebuild and restore such Improvements pursuant to the terms hereof and must pay the entire'cost of same notwithstanding the fact that such insurance proceeds are inadequate. (b) Business Interruption Insurance. Business interruption insur- ance, so that Developer will be insured against loss of business income from the Improvements occasioned by any of the insured against perils included in the Property Insurance policy during the period required to rebuild, repair or replace the property damaged, which policy or policies of insurance shall expressly provide by endorsement thereon that the interest of the City as lessor under this lease shall be covered to the extent earned, in an amount equal to the total of Rental payable during said period of business interrup- tion; provided, however, that Developer shall not be required to carry such rental value insurance as aforesaid until such time as the Improvements shall be opened for business with the general public. The adequacy of the Business interruption insurance may be reviewed by the City Manager every five years. Any review by the City Manager shall not constitute an approval or acceptance of the amount of insurance coverage. (c) Automobile Liability Insurance. Automobile liability insurance and equivalent policy forms covering all owned, non -owned, and hired vehicles used in connection with any work arising out of this Agreement. Such insurance shall afford protection to at least a combined single limit for bodily injury and property damage liability of $1,000,000 per occurrence. The adequacy of the automobile liability insurance coverage may be reviewed every five years by the City Manager. Any review by the City Manager shall not constitute an approval or acceptance of the amount of insurance coverage. -75- (d) Liability Insurance. Comprehensive general liability, including contractual liability, or an equivalent policy form providing liability insurance against claims for personal injury or death or property damage, occurring on or about the Leased Property, the Improvements, or any elevator, escalator, or hoist thereon. Such insurance shall afford protection to at least a combined single limit for bodily injury and property damage liability of $10,000,000 per occurrence. The adequacy of the liability insurance cover- age shall be reviewed every five years by the City Manager. Any review by the City Manager shall not constitute an approval or acceptance of the amount of insurance coverage. Such liability and property damage insurance shall also be placed in effect during the period of permitted access provided in Section 3.8 herein. (e) Garage Liability in the same limits as (d) above, including Automobile Insurance Hazard I; (f) Garagekeepers Legal Liability with limits not less than $5,000,000 per occurrence plus an excess coverage policy in an amount of not less than $10,000,000. This policy shall be endorsed to name the City and DOSP as additional insureds. (g) Theft Coverage covering employee fidelity, inside or outside loss and burglary with a limit of not less than $100,000 per occurrence. (h) Worker's Compensation as required by Florida Statutes, Chapter 440. (i) Flood Insurance in an amount satisfactory to the City and Developer. (j) Design Defect Excess Coverage. Developer agrees to name the City as an addition insured on any blanket excess coverage policy with respect to design defects in the Parking Garage which may be carried by The Rouse Company. - 76 - (k) Worker's Compensation. Worker's Compensation and Employer's Liability Insurance in compliance with Florida Statute 440. For work that is subcontracted, the Developer shall require the subcontractor to provide Worker's Compensation insurance for all of the subcontractor's employees. (1) Copies,. Developer shall furnish Certificates of Insurance with the City named as additional insured for the coverages specified hereunder which shall clearly indicate that Developer has obtained insurance in the type, amount and classification as herein required. Copies of all policies of insurance and renewals thereof shall be furnished upon request of the City Manager by the Developer prior to the effective date thereof. Copies of new or renewal policies replacing any policies expiring during the term of this Lease shall be delivered to City Manager at least thirty (30) days prior to the date of expiration of any policy, together with proof satisfactory to the City that all premiums have been paid. Section 9.2. Responsible Companies - Blanket Insurance Permitted. All insurance provided for in this Article IX shall be effected under valid and enforceable policies issued by insurers of recognized responsibility, which are licensed to do business in the State of Florida. All such companies must be rated at least "A" as to management, and at least "Class X" as to financial strength in the latest edition of Best's Insurance Guide, published by Alfred M. Best Co., Inc., 75 Fulton Street, New York, NY. The insurance required by this Article may be part of another policy or policies of the Developer in which other properties and locations are also covered so long as the amount of insurance available to pay losses at this location is at least the minimum required by this Section, and it cannot be reduced in any manner by losses occurring at other properties or locations. - 77 - Section 9.3. Named Insureds - Notice to City of Cancellation. All policies of insurance described herein shall name Developer and the City as insureds as their respective interests may appear. The policies shall also name as insured, if required by either party or required pursuant to the terms of any Leasehold Mortgage or Financing Sublease, any Leasehold Mortgagee as the interest of such Leasehold Mortgagee may appear. Notwithstanding any such inclusion, the parties hereto agree that any losses under such policy shall be payable, and all insurance proceeds recovered thereunder shall be applied and disbursed in accordance with the provisions of this Lease. All insurance policies shall provide that no material change, cancellation or termination shall be effective until at least thirty (30) days after receipt of written notice thereof has been received by the City. Each policy shall contain an endorsement to the effect that no act or omission of the Developer shall affect the obligation of the insurer to pay the full amount of any loss sustained. Section 9.4. City May Procure Insurance if Developer Fails to Do So. In the event Developer at any time refuses, neglects or fails to secure and maintain in full force and effect any or all of the insurance required pursuant to this Agreement, the City, at its option, may procure or renew such insurance, and all amounts of money paid therefore by the City shall be treated as Additional Rental payable by Developer to the City together with interest thereon at the Default Rate from the date the same were paid by the City to the date of payment thereof by Developer. The City shall notify Developer in writing of the date, purposes and amounts of any such payments made by it, which shall be payable by Developer to the City within ten (10) days of such notification. Section 9.5. Insurance Does Not Waive Developer's Obligations. No acceptance or approval of any insurance agreement or agreements by the City or - 78 - the City Manager shall relieve or release or be construed to relieve or release Developer from any liability, duty or obligation assumed by, or imposed upon it by the provisions of this Agreement. Section 9.6. Loss or Damage Not To Terminate Rental or this Agreement. Any loss or damage by fire or other casualty, of or to any of the Improvements on the Leased Property at any time, shall not operate to terminate this Agreement or to relieve or discharge Developer from the payment of Rental, or from the payment of any money to be treated as Additional Rental in respect thereto, pursuant to this Agreement, as the same may become due and payable, as provided in this Agreement, or from the performance and fulfillment of any of Developer's obligations pursuant to this Agreement. Section 9.7. Proof of Loss. Whenever any Improvements, or any part thereof, constructed on the Leased Property (including any personal property furnished or installed in the premises) shall -have been damaged, or destroyed, Developer shall promptly make proof of loss in accordance with the terms of the insurance policies and shall proceed promptly to collect or cause to be collected, all valid claims which may have arisen against insurers or others based upon any such damage or destruction. Developer shall promptly give City written notice of such damage or destruction. Section 9.8. Property Insurance Proceeds. (a) Authorized Payment. Except as otherwise provided in subsection (c) of this Section 9.8, all sums payable for loss and damage arising out of the casualties covered by the property insurance policies shall be payable: (1) Directly to Developer for purposes of rebuilding, replacing and repair if the total recovery is $500,000.00 or less which amount shall be adjusted periodically every five (5) years commencing with the Rent Commencement Date by the percentage change in the Consumer Price Index -79- (all urban consumers) as published by the Bureau of Labor Statistics of the Department of Labor (the "CPI") for such 5 year period, or in the event the CPI has changed or Is no longer published, such other appropriate measure of changes in the relative purchasing power of the dollar agreed upon by the parties, except that if Developer is then in default under this Lease, such proceeds shall be paid over to City who shall apply the proceeds first to the rebuilding., replacing and repairing of the Leased Property and then to the curing of such default. Any remaining proceeds shall be paid over to Developer. (ii) To the Insurance Trustee, if the total recovery is in excess of $500,000.00, which amount shall be adjusted periodically every five (5) years commencing with the Rent Commencement Date by the percentage change in the CPI for such 5 year period as above set forth, to be held by such Insurance Trustee pending establishment of reconstruction, repair or replacement costs and shall be disbursed to Developer pursuant to the provisions of subparagraph (b) of this Section 9.8. The Insurance Trustee shall be a commercial bank .or trust company designated by Developer and approved by the City Manager, which approval shall not be unreasonably withheld or delayed. (b) Disposition of Insurance Proceeds for Reconstruction. All amounts received upon such policies shall be used, to the extent required, for the reconstruction, repair or replacement of the Improvements and the personal property of Developer contained therein, so that the Improvements or such personal property shall be restored to a condition comparable to the condition prior to the loss or damage (hereinafter referred to as "Reconstruction .Work"). From the Insurance proceeds received by the Insurance Trustee, there shall be disbursed to Developer such amounts as are required for the 80 Reconstruction Work. Developer shall submit invoices or proof of payment to the Trustee for payment or reimbursement in accordance with an agreed schedule of values approved in advance by the City Manager. Any amount remaining in the hands of the Insurance Trustee after the completion of the Reconstruction Work shall be paid to Developer. (c) Lenders and Lender/Landlords May Have Benefit of Insurance Fund for Reconstruction. In the event Developer, pursuant to Leasehold Mortgage or Financing Sublease, shall at any time authorize a Lender or Lender/Landlord on his behalf or in his stead to enter upon the Leased Property and undertake or prosecute the reconstruction or repair of any building on the Leased Property damaged or destroyed by fire, or other insured -against hazard or peril and to have and receive for Developer or Leasehold Mortgagee's use for such purpose such insurance proceeds, then in that case said insurance proceeds shall be equally available to Leasehold Mortgagee as to Developer as provided in sub- section (b) of this Section 9.8, and it shall in like manner and to like extent at the request of any such Leasehold Mortgagee, be applied to the reconstruc- tion or repair of any such building so damaged or destroyed. Section 9.9. Covenant for Commencement and Completion of Recon- struction. Subject to the provisions of Section 9.1(b) and Section 9.10, Developer covenants and agrees to commence the Reconstruction Work as soon as practicable but in any event within six (6) months after the insurance proceeds in respect of the destroyed or damaged Improvements or personalty have been received, and to fully complete such Reconstruction Work as expeditiously as possible consistent with the nature of the damage, but in any event within eighteen (18) months from the start thereof; provided, that if it is not practicable to commence such Reconstruction Work within such six (6) month period, or to complete such Reconstruction Work within such eighteen (18) - 81 - month period, then such Reconstruction Work may be commenced and completed within a longer period, provided that such period shall be approved in writing by the City Manager after written request from Developer. As used in the preceding sentence, the term "available net insurance proceeds" means the sum actually paid by the insurer or insurers in respect of the claim in question, less all costs and expenses incurred by Developer or the Insurance Trustee in the collection, holding and disbursement of same, including (without limita- tion) reasonable attorneys' fees. The City agrees that if the seawall, riprap and/or marina shown on Exhibit A-1 or Exhibit A-2 shall be damaged or destroyed, the City shall repair and restore same to at least the condition same was in immediately prior to such damage or destruction or to a condition mutually acceptable to the parties hereto. Section 9.10. Developer's Rights In the Event of Uninsured Major Casualty. In the event any part of the Improvements or the Leased Property is damaged or destroyed by reason of any casualty which is not required to be insured against pursuant to Section 9.1 and is not in fact insured against, then at Developer's option, in lieu of rebuilding, replacing or repairing the portion of the Improvements or the Leased Property so damaged or destroyed, Developer may give notice to the City, within sixty (60) days after the occurrence of such damage or destruction, of Developer's election to terminate this Lease as to the portion of the Improvements or the Leased Property so damaged or destroyed and this Lease shall thereupon terminate as to such portion of the Leased Property and Developer shall have no further obligation hereunder with respect thereto, except that, if the City shall so request within thirty (30) days after such notice is given, Developer shall, at its -82- expense, promptly demolish any buildings or other improvements situated on the portion of the Leased Property as to which this Lease shall have been terminated and shall clear and grade such portion of the Leased Property. The City and Developer shall, at the request of either, execute such instruments or documents as may be reasonably necessary or desirable in order to amend this Lease to delete such portion of the Leased Property from the description of the property demised hereby. If the Improvements or the Leased Property which were uninsured, or for which there were no insurance proceeds, shall be substantially damaged or destroyed in any single casualty so that the Improvements or the Leased Property shall be unsuitable for restoration for Developer's continued use and occupancy in Developer's business, then at Developer's option, in lieu of rebuilding, replacing or repairing the Improvements or the Leased Property as provided in this Lease, Developer may give notice to the City, within sixty (60) days after the occurrence of such damage or destruction, of Developer's intention to terminate this Lease on any business day specified in such notice which occurs not less than sixty (60) nor more than one hundred twenty (120) days after the date of such damage or destruction, provided that such notice shall be accompanied by a certificate of the Developer, signed by the appropriate officer or general partner, stating that in the reasonable judgment of Developer, the Improvements and the Leased Property are economically unsuitable for Developer's continued use and occupancy by reason of such damage or destruction. This Lease shall thereupon terminate on such termination date, except with respect to obligations and liabilities of Developer under this Lease, actual or.contingent, which have arisen on or prior to such date. Upon giving any such notice of termination -83- of this Lease Developer shall, at Developer's expense but at the option of the City, promptly demolish any building or other remaining improvement and shall clear and grade the Leased Property. Section 9.11. Casualty to Bayside Specialty Center. In the event that all or any portion of the Bayside Specialty Center damaged or destroyed by reason of fire or any other casualty and not restored such that, in the good faith opinion of Developer, it shall be economically unfeasible to use and enjoy the Improvements on the Leased Property, then Developer shall have the right, provided Developer pays off any tax exempt revenue bonds used to construct the Parking Garage and Area B Surface Lot, to terminate this Lease upon giving the City written notice of the exercise of such option and this Lease shall terminate and be null and void as of the date of termination specified in such notice, and Rental and any money treated as Additional Rental and Public Charges shall be prorated and paid by Developer as of the date of such termination. If Developer shall so terminate this Lease, Developer shall pay to the City, if the City shall actually demolish the Parking Garage, fifty percent (50y.) of the City's costs incurred in connection with the demolition of the Parking Garage. ARTICLE X CONDEMNATION Section 10.1. Entire Leased Property Taken by Condemnation. In the event that the whole of the Leased Property and Improvements (or such portion thereof as shall, in the good faith opinion of Developer, render it economically unfeasible to effect restoration thereof) shall be taken for any public use or purpose by the exercise of the power of eminent domain, or shall be conveyed by the City and Developer acting jointly to avoid proceedings of - 84 - such taking, the Rental and money to be treated as Additional Rental pursuant to this Agreement and the Public Charges shall be prorated and paid by the Developer to the date of such taking or conveyance, and this Lease shall terminate and become null and void as of the date of such taking or conveyance. The award or awards of damages allowed to the City or Developer shall be paid as follows: First: There shall be paid all expenses, if any, in- cluding reasonable attorneys' fees, incurred by the City and Developer in such condemnation suit or conveyance (except that nothing contained in this Article shall require payment to the City of costs and expenses it may incur as the condemning authority); Second: City and Developer shall be paid portions of the balance of said award or awards which are allocable to and represented by the value of their respective interest in the Leased Property as'found by the court or jury in its condemnation award, or if no such separate awards are obtained, such balance shall be paid to Developer and the City in the same proportion as the then Fair Market Value of each party's respective interest or estate in the Leased Property and the Improvements bears to the total Fair Market Value of the interests and estates of both parties in the Leased Property and Improvements within thirty (30) days of the time of the taking, such value shall be determined by the Arbitration Panel, selected in the manner and acting with the authority provided in this Article. - 85 - Section 10.2. Partial Taking of Leased Property by Condemnation. (a) In the event that less than all of the Leased Property or Improvements shall be taken for any public use or purpose by the exercise of the power of eminent domain, or shall be conveyed by the City and Developer acting jointly to avoid proceedings of such taking, and Developer shall be of the good faith opinion that it is economically feasible to effect restoration thereof, then this Lease and all the covenants, conditions and provisions hereunder shall be and remain in full force and effect as to all of the Leased Property not so taken or conveyed (except as provided in subsection (b) of this Section 10.2 and in Section 10.3). Developer shall to the extent condemnation proceeds are made available to it pursuant to the terms hereof, remodel, repair and restore the Improvements so that they will be comparable to the Improvements prior to the condemnation, taking into consideration the fact of the condemnation; provided, however, that in so doing, Developer shall not be required to expend more than the amount of any such award actually received by Developer, less all costs and expenses, (,including reasonabl attorneys' fees) incurred in the collection of same.\(-)Aksvver (b) The award or awards of damages allowed to City and tev toper shall be paid to and received by the parties as follows: First: There shall be paid all expenses, if any, including any reasonable attorneys' fees, incurred by City and Developer in such condemnation suit or conveyance; Second: There shall be paid to the City the value of the portion of the Land so taken, which land shall be valued as if unimproved and unencumbered; -86- Third: There shall be paid to the Developer the amount required to complete the remodeling and repairs to the Improvements pursuant to (a) above; Fourth: City and Developer shall be paid portions of the balance of said award or awards, if any, which are allocable to and represented by the value of their respective interest in the Leased Property as found by the court or jury in its condemnation award, or if no such separate awards are obtained, such balance shall be paid to Developer and the City in the same proportion as the then Fair Market Value of each party's respective interest or estate in the Leased Property and the Improvements bears to the total Fair Market Value of the interests and estates of both parties in the Leased Property and Improvements. In the event that the parties cannot agree upon the Fair Market Value of their respective interests and estates in the Leased Property and Improvements within thirty (30) days of the time of the taking, such value shall be determined by the Arbitration Panel, selected in the manner and acting with the authority provided in Section 10.5 of this Article. Section 10.3. Adjustment of Rent Upon Partial Taking. In the event a part of the Leased Property and the Improvements thereon, if any, shall be taken for any public use or purpose by the exercise of the power of eminent domain, or shall be conveyed by City and Developer acting jointly to avoid proceedings of such taking, then Rental, and money to be treated as Additional _87_ Rental pursuant to this Agreement and the Public Charges in respect of such part of the Leased Property shall be paid by Developer to the date of such taking or conveyance, and after such date the Rent for the remainder of the Leased Property shall be reduced by such an amount as may be agreed upon in writing by the parties hereto, provided, however, if City and Developer shall be unable to agree upon the amount of such reduction within thirty (30) days of the date of such taking, then, and in such event, the amount of such reduction shall be determined by the Arbitration Panel selected in the manner and acting with the authority provided in Section 10.5. Section 10.4. Taking for Temporary Use or of Leasehold Estate. If, by the exercise of the power of eminent domain, or under threat thereof, the whole or any part of the Leased Property or the Improvements shall be taken for temporary use or the whole or any part of.the leasehold estate created by this Lease shall be taken, all awards or other payments shall be paid to Developer alone, except that, (1) if any portion of any such award or payment on account of a taking for temporary use is made by reason of any damage to or destruction of any portion of the Improvements, such portion shall be applied to pay the cost of restoration, (ii) if any portion of an award or payment on account of a taking for temporary use relates to a period beyond the date of expiration of the term of this Lease, such portion shall be paid to the City, and (iii) All payments of Rental by the Developer shall continue as if no condemnation had taken place. Rentals payable shall be the Annual Basic Rental, Annual Additional Rental and Annual Percentage Rental. -88- Rentals payable shall, for the purposes of this Section 10.4, be the Average Rentals paid in the immediate 3 year period prior to the notice of taking by condemnation or the period of time since the Opening Date,• whichever period is lesser. In the event the taking for temporary use'. continues for over 1 year, the Annual Basic Rental due for each consecutive year shall be increased by the percentage increase in the Consumer Price Index, or, if not available, such equivalent index. Section 10.5. Arbitration. A panel of arbitrators ("Arbitration Panel") shall be established when required by this Agreement. (i) The appointments to the panel shall be made in the following manner: (a) The City shall name one member; (b) Developer shall name one member; and (c) The aforesaid members shall promptly name a third member. (ii) Every member of the Arbitration Panel must be a member of the American Institute of Real Estate Appraisers. (iii) If either party shall fail to designate a member within fifteen (15) days after a written request so to do by the other party, then such other party may request the President of the Florida Chapter of the American Arbitration Association to designate a member, who when so designated shall act in the same manner as if he had been the member designated by the party so failing to designate an arbitrator. If the two members are unable to agree upon a third member within ten (10) days from the last date of designation, such third member shall be designated by the President of the Florida Chapter of the American Arbitration Association, upon the request of either of the two members. - 89 - (iv) All actions, hearings and decisions of the Arbitration Panel shall be conducted, based upon and in accordance with the Commercial Arbitration Rules of the American Arbitration Association. In all controversies, disputes or claims with respect to the evaluation of real estate referred to Arbitration under the provisions of this Agreement, the Arbitration shall be conducted in accordance with the Real Estate Valuation Rules of the American Arbitration Association. In determining any matter before them, the Arbitration Panel shall apply the terms of this Agreement, and shall not have the power to vary, modify or reform any terms or provisions of the Agreement in any respect. The Arbitration Panel shall afford a hearing to the City and to the Developer and the right to submit evidence with the privilege of cross-examination on the question at issue. All arbitration hearings shall be held at a place designated by the Arbitration Panel in Dade County, Florida. (v) A hearing shall be commenced within sixty (60) days following the selection of the last of the three arbitrators. A court reporter shall make a transcript of the hearing. The parties and the Arbitration Panel shall use their best efforts to conclude the hearing within ten days. The parties shall be entitled to such pretrial discovery as they may agree, or as determined by the Arbitration Panel. The Arbitration Panel shall have the right to question witnesses at the hearing, but not to call witnesses. The Arbitration Panel may grant continuances for good cause or with the agreement of both parties. The Arbitration Panel may render a decision at the close of the hearing, or may request briefs on any or all issues. Any and all such briefs, including reply briefs, shall be filed with the terms and on the schedule set by the Arbitration Panel, but in any event no later than forty-five - 90- (45) days following the commencement of the hearing. The Arbitration Panel shall render a determination within sixty (60) days from the conclusion of the hearing. If no determination is rendered within such time, unless the parties agree otherwise, a new Arbitration Panel shall be selected as described above, but the new Arbitration Panel shall render a determination solely upon review of the record of the hearing without a further hearing. (vi) The Arbitration Panel selected hereunder shall agree to observe the Code of Ethics for Arbitrators in Commercial Disputes promulgated by the American Arbitration Association and the American Bar Association, or any successor code. The decision of a majority with respect to any matter referred to it under this Lease shall be final, binding and conclusive on the City and Developer and enforceable in any court of competent jurisdiction. Together with the determination, the Arbitration Panel shall provide a written explanation of the basis for the determination. Each party shall pay the fees and expenses of the member of the Arbitration Panel designated by such party, such party's counsel and witness fees, and one-half (1/2) of all expenses of the third member of the Arbitration Panel. Section 10.6. Bayside Specialty Center Taken By Condemnation. In the event that all or any portion of the Bayside Specialty Center or the Retail Parcel is taken by a power of eminent domain or shall be conveyed to avoid such proceedings such that, in the good faith opinion of Developer, it shall be economically unfeasible to use and enjoy the Improvements on the Leased Property, then the Developer shall have the right, provided Developer pays to the City the amount then outstanding under any bonds used to finance the construction of the Parking Garage and Area 8 Surface Lot, to terminate - 91 - this Lease upon giving the City written notice of the exercise of such option and this Lease shall terminate and become null and void as of the date of the termination specified in the option, and Rental and any money treated as additional Rental and Public Charges shall be prorated and paid by Developer as of the date of such termination. Should the City desire that the Parking Garage be demolished upon termination of the Lease, Developer shall share the cost of such demolition with the City. If Developer shall so terminate this Lease, Developer shall pay to the City, if the City shall actually demolish the Parking Garage, fifty percent (50%) of the City's costs incurred in connection with the demolition of the Parking Garage. ARTICLE XI RIGHTS OF OCCUPANCY AND ACCESS; MAINTENANCE; OWNERSHIP OF IMPROVEMENTS Section 11.1. Quiet Enjoyment. The City represents and warrants that Developer, upon paying the Rental pursuant to this Agreement and observing and keeping the covenants and agreements of this Agreement on its part to be kept and performed, shall lawfully and quietly hold, occupy and enjoy the Leased Property without hindrance or molestation by the City during the term of this Agreement or by any person or persons claiming under the City. Section 11.2. Waste. Developer shall not permit, commit or suffer waste or impairment of the Leased Property, or the Improvements thereon, or any part thereof. Section 11.3. Maintenance and Operation of Improvements. Developer shall at all times keep the Improvements constructed on the Leased Property and all furnishings located therein in good and safe condition and repair as other first class projects in similar usage are kept (reasonable wear and tear expected), and in the occupancy, maintenance and operation of such Improve- -g2— meats, and of the Leased Property, shall comply with all laws, ordinances, codes and regulations applicable thereto. Section 11.4. Ownership of Improvements During Lease. Prior to the expiration or termination of this Lease, title to the Improvements shall not vest in the City by reason of its ownership of fee simple title to the Leased Property, but title to such Improvements shall remain in Developer. If this Lease shall terminate prior to the expiration of the term hereof and if, at that time, any Lender shall exercise its option to obtain a new lease for the remainder of the term of this Lease pursuant to Article VI, then title to the Improvements shall automatically pass to, vest in and belong to such Lender or any designee or nominee• of such Lender permitted hereunder, until the expiration or sooner termination of the term of such new lease. The City and Developer covenant that to confirm the automatic vesting of title as provided in this paragraph, each will execute and deliver such further assurances and instruments of assignment and conveyance as may be required by the other for that purpose. During the term of this Lease, Developer shall be entitled to claim depreciation on the Improvements and all equipment, fixtures and machinery therein contained, for all taxation purposes. Section 11.5. Surrender of Leased Propert'. Upon the expiration of the Lease term, or upon termination of this Agreement and the Lease term hereunder in respect to the Leased Property, title to the Improvements shall vest in the City and it shall be lawful for the City to re-enter and repossess the Leased Property and the Improvements thereon, without process of law, and Developer, in such event, does hereby waive any demand for possession thereof, agrees to surrender and deliver the Leased Property and the Improvements thereon, without process of law, peaceably to the City immediately upon such expiration or termination. - 93 - Section 11.6. City and Developer to Join in Certain Actions. Within ten (10) days after receipt of written request from Developer, the City shall, (a) Join Developer when required by law in any and all applications for permits, licenses or other authorizations required by any governmental or public authority which has jurisdiction in connection with any work as may be reasonably necessary or appropriate for the construction of the Improvements to be constructed by Developer on the Leased Property; and (b) Join Developer in any grants of, or grant such, access easements or easements or rights with respect to electric, telephone, gas, water, sewer, steam and such other public utilities and facilities as may be reasonably necessary or appropriate for the construction, operation or use of the Leased Property or any Improvements to be erected by Developer thereon. Developer shall pay all fees and charges for all such applications and grants. ARTICLE XII MISCELLANEOUS PROVISIONS Section 12.1. No Partnership or Joint Venture. It is mutually understood and agreed that nothing contained in this Agreement is intended or shall be construed in any manner or under any circumstances whatsoever as creating or establishing the relationship of co-partners, or creating or establishing the relationship of a joint venture between the City and Developer, or as constituting Developer as the agent or representative of the City for any purpose or in any manner whatsoever. Section 12.2. Recording, Documentary Stamps. This Agreement, or a memorandum hereof in form mutually satisfactory to the parties, shall be recorded among the Land Records of Dade County, State of Florida, and either party may cause any modification or addition to this Lease or any ancillary -94- document relevant to this transaction to be so recorded, and the cost of any such recordation, cost of any State of Florida documentary stamps which legally must be attached to any or all of said papers, and the cost of the applicable Dade County and State transfer tax shall be paid in full by Developer. Section 12.3. Florida and Local Laws Prevail. This Agreement shall be taken and deemed to be governed by the laws of the State of Florida. This Agreement is subject to and shall be interpreted to effectuate its compliance with the Charter of the City of Miami, the City of Miami Code and the Dade County Charter and Code. Furthermore, the terms of this Agreement allow reasonable public access to the water, reasonable public use of such property, • and comply with other charter waterfront setbacks and view corridor require- ments. Any conflicts between this Agreement and the aforementioned Codes and Charters shall be resolved in favor of the latter. If any term, covenant, or condition of this Lease or the application thereof to any person or circum- stances shall, to any extent, be illegal, invalid, or unenforceable because of present or. future laws or any rule or regulation of any. governmental body or entity or becomes unenforceable because of judicial construction the remaining terms, covenants and conditions of this Lease, or the application of such term, covenant or condition to persons or circumstances other than those as to which it is held invalid or unenforceable, shall not be affected thereby and each term, covenant, or condition of this Lease shall be valid and be enforced to the fullest extent permitted by law. Contemporaneously with the execution of the Agreement, the City Attorney has delivered an opinion to Developer opining that the execution and delivery hereof by the City is in compliance with the Charter of the City of Miami, the City of Miami Code and the Dade County Charter and Code. -95- Section 12.4. Conflicts of Interest; City Representatives Not Individually Liable. No member, official, representative, or employee of the City or the City Manager shall have any personal interest, direct or indirect, in this Agreement, nor shall any such member, official, representative or employee participate in any decision relating to this Agreement which affects his or her personal Interest or the interest of any corporation, partnership or association in which he or she is, directly or indirectly, interested. No member, official, representative or employee of the City or the City Manager shall be personally liable to Developer or any successor in interest in the event of any default or breach by the City or the City Manager or for any amount which may become due to Developer or successor or on any obligations under the terms of the Agreement. Section 12.5. Notice. A notice of communication under this Agreement by either the City or the City Manager, on the one hand, to Developer, or, on the other, by Developer to the City or the City Manager shall be sufficiently given or delivered if dispatched by registered or certified mail, postage prepaid, return receipt requested; and (a) Developer. In the case of a notice or communication to Developer, if addressed as follows: General Counsel Bayside Center Limited Partnership c/o The Rouse Company 10275 Little Patuxent Parkway Columbia, Maryland 21044 (b) Developer's Records, Developer's original duplicate books and records in auditable form as required in Section 2.5(d) shall be kept and be available to the City during normal business hours at its principal place of business in the City of Miami. 96 - (c) City Manager. In the case of a notice or communication to the City or the City Manager, if addressed as follows: City Manager 3500 Pan American Drive Miami, Florida 33133 or if such notice is addressed in such other way in respect to any of the foregoing parties as that party may, from time to time, designate in writing, dispatched as provided in this Section 12.5. Section 12.6. Estoppel Certificates. The City and Developer shall at any time and from time to time, within thirty (30) days after written request by the other, execute, acknowledge and deliver to the party which has requested the same or to any prospective Lender designated by Developer a certificate stating that (1) the Lease is in full force and effect and has not been modified, supplemented or amended in any way, or, if there have been modifications, the Lease is in full force and effect as modified, identifying such modification agreement, and if the Lease is not in force and effect, the certificate shall so state; (ii) the Lease as modified represents the entire agreement between the parties as to this leasing, or, if it does not, the certificate shall so state; (iii) the dates on which the term of this Lease commenced and will terminate; (iv) all conditions under the Lease to be performed by the City or Developer, as the case may be, have been satisfied and, as of the date of such certificate, there are no existing defenses or offsets which the City or Developer, as the case may be, has against the enforcement of the Lease by the other party, or, if such conditions have not been satisfied or if there are any defenses or offsets, the certificate shall so state; and (v) the rental due and payable for the year in which such certificate is delivered has been paid in full, or, if it has not been paid, - 97 - the certificate shall so state. The party to whom any such certificate shall be issued may rely on the matters therein set forth and thereafter the party issuing the same shall be estopped from denying the veracity or accuracy of the same. Any certificate required to be made by the City pursuant to this paragraph may be made on its behalf by the City Manager. Section 12.7. Provisions Not Merged with Deed. None of the provisions of this Agreement are intended to or shall be merged by reason of any deed (i) transferring Developer's leasehold estate in the Leased Property and Improvements or any part thereof from the Developer (or its successors or assigns) to the City (or its successors or assigns), or (ii) transferring title to the Leased Property or any part thereof from the City to Developer, its successors or assigns, and any such deed shall not be deemed to affect or impair the provisions and covenants of this Agreement. Section 12.8. Titles of Articles and Sections. Any titles of the several parts, Articles and Sections of this Agreement are inserted for convenience of reference only and shall be disregarded in construing or interpreting any of its provisions. Section 12.9. Counterparts. This Agreement is executed in six (6) counterparts, each of which shall be deemed an original, and such counterparts shall constitute one and the same instrument, This Agreement shall become effective only upon execution by delivery of the parties hereto and execution and delivery of all Exhibits referred to in Section 1.1. Section 12.10. Successors and Assigns. Except to the extent limited elsewhere in this Lease, all of the covenants, conditions and obligations 11 1, (�yn a.. ��,� ������ �Crrl� (l•?•1�.1...k_�'`�h>.{P )-. \� •{.l:') F)`: 't '�11f1\�, `'�.Q/( }i ;'l,, -96- r contained in this Lease shall be binding upon and inure to the benefit of the respective successors and assigns of the City and the Developer.. IN WITNESS WHEREOF, ROUSE-MIAMI, INC., the sole general. partner of BAYSIDE CENTER LIMITED PARTNERSHIP, has caused this Lease Agreement to be signed in its name by its Vice President, duly attested to by its Assistant Secretary and its corporate seal to be hereunto affixed, and the CITY COMMISSION OF MIAMI has caused this Lease Agreement to be signed in its name by' Randolph Rosencrantz, the City Manager, and duly attested to by Ralph G. Ongie, the City Clerk, on the day and year first hereinabove written. ATTEST: it Secretary [Corporate Seal] ATTEST:- Ral►h !. Ongie, City Jerk APPROV CORR LUCIA ALLEN DOUGH CITY ATTORNEY 602F/22A BAYSIDE CENTER LIMITED PARTNERSHIP By: ROUSE-MIAMI, INC., general partner By ice -President THE CITY OF MIAMI, A MUNI PAL CORPORA- TION OF THE STATE OF F OR By: -99- 4,tict.rtt lati\ STATE OF -F6OR A ) COUNTY OF 4? ) I, an officer authorized to take acknowledgments, HEREBY CERTIFY that on this 2,0'" day of December, 1984, personally appeared before me.jgme . and )c,c ia1 • S c ,TIT. , known to me to be the tkare504.,t- and Assistant Secretary, respectively, of ROUSE-MIAMI, INC., a Florida corporation, known to me to be the general partner of Bayside Center Limited Partnership, a Maryland limited partnership, and known to me to be the persons who executed the foregoing instrument, and they severally acknowledged the execution thereof as the free and formal act of the aforesaid corporation as- the sole general partner of such partnership. WITNESS my hand and official seal in said County and State the day and year last aforesaid. otarylPublic, State of 1,qe I-1OfLt lex,,41 My Commission Expires: ;j i , (ci () ig314 STATE OF FLORIDA ) COUNTY OF DADE ) January, 1985 I, an officer authorized to/take acknowledgments, HEREBY CERTIFY that on this day of Beeembef,-4984, personally appeared before me RANDOLPH ROSENCRANTZ and RALPH G. ONGIE, known to me to be the City Manager and the City Clerk, respectively, of THE CITY OF MIAMI, a municipal corporation in and under the laws of the State of Florida, and known to me to be the persons who executed the foregoing instrument, and they severally acknowledged the execution thereof as the free and formal act of the said municipal corporation. WITNESS my hand and of f icier.) in s • ' d my and ate the day and year last aforesaid. 602F / 22A Notary Public, State oft Flor ` T at Large My Commission Expi.�x. "f e!i sr Ic ST4 u .L J'gt;�'r :ct r�Fe 1nv �Rfbq° 1987 - 100 - STATE OF FLORIDA COUNTY OF DADE CITY OF MIAMI I, RALPH G. ONGIE,•G1erk of the City of Miami, Florida, and keeper of the records thereof, do hereby certify that the attached and foregoing pages numbered i through v and 1 through 100, inclusive, contain a true and correct copy of the "Lease Agreement" between Bayside Center Limited Partnership and City of Miami,concerning Parking Garage and dated January 14, 1985, which incorporates the hereinbelow described Exhibits: 1. Exhibit G, List of events. 2. Exhibit A-1, Survey. 3. Exhibit A-3, Site Plan. 4. Exhibit B-1, Legal Description of Garage parcel, pages numbered 1 through 2. 5. Exhibit B-2, Legal Description of Area A-4. 6. Exhibit B-3, Legal Description of Area A-5. 7. Exhibit B-4, Legla Description of Area B. 8. Exhibit D, Agreement of Guaranty, pages numbered 1 through 2. 9. Exhibit F, List of Approved Concept Plans, pages numbered 1 through 10, inclusive. 10. Exhibit H, Minority Participation Agreement, pages numbered 1 through 19, inclusive. 11. Exhibit I, The Design Development Plan for Restaurant in Area 4. 12. Exhibit J, Survey Showing All Easements and Utilities Located at the Leased Property. 13, Exhibit K, Maintenance Responsibility Plan. IN WITNESS WHEREOF, I herunto set my hand and impress the official seal of the City of Miami, Florida, this 19th day of April, 1985. ( S E A L ) RALPH G. ONGIE CITY CLERK CITY OF MIAMI, FLORIDA Syria M. Mendoza Deputy City Clerk EXHIBIT G Days Event 0 Fully negotiated executed documen- tation 30 Complete refinement of conceptual design with City 90 Financing commitments obtained 120 Approval of Financing, and Pre- liminary plans to City for approval including City departments review and approval 135 City Approval including City departments of preliminary plans 225 Complete review of final plans with City 240 250 City approval including City departments approval of final plans and Issuance of Building Permits Corps of Engineers landfill on Retail Parcel complete, Demolition of' Auditorium complete, and Possession Date 305 Rouse and City commence construction 730 790 Infrastructure substantially complete Bayfront Park improvements substantially complete 850 Parking Garage open to public and Rent Commencement Date 1544F/452A 7420r FIRST AMENDMENT OF AGREEMENT OF LEASE THIS FIRST AMENDMENT DF AGREEMENT DF LEASE (here- inafter referred to as "this Amendment"), made this l°Mt& day of -October, 1985, b and between BAYSIDE CENTER LIMITED PARTNERSHIP, a Ma, land limited partnership (here- inafter referred to as "ieveloper"), and THE CITY OF , MIAMI, a municipal corporation of the State of Florida (hereinafter referre+ to as "the CITY"), acting by and through the CITY MA AGER (hereinafter referred to as "the City Manager"), an, with the prior approval of the City Commission of Miami. WITNE`ETH, THAT WHEREAS by an Agreement of Lease dated January14, 1985, by and between the Landlord and the Tenant (hereinafter referred to as "the Lease"), the Landlord has leased to the Tenant a-1-1 of that real prop- erty, situate and lying in the City of Miami, Dade County, Florida, which is described therein for the development of a certain parking facilities; and WHEREAS the parties hereto desire by this Amend- ment to amend the provisions of the Lease, NOW, THEREFORE, FOR AND IN CONSIDERATION of the mutual entry into this Amendment by the parties hereto, and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged by each party hereto, the parties hereto hereby agree as follows: Section 1. Amendment of Lease. The provisions of the Lease are hereby amended fn 'the following manner: 1.1. Under Section 1.2. of the Lease, delete the Defined Term "Lender" in its entirety and insert the following in lieu thereof: ""Lender" and "Leasehold Mortgagee" shall have the meaning ascribed to these terms in the subclause (b) of Section 6.1 and shall be used interchangeably." 1.2. Under Section 1.2 of the Lease, add the following sentence at the end of the definition for "Refinancing": "Refinancing shall not include the initial long term financing of the Project or any equipment leasing or the refinancing of any interim or any construction financing obtained by Developer to finance its development and construction obligations hereunder." 1.3. Under Section 2.2(c) of the Lease, add the following sentence to the end of this subsection: "Developer agrees to cause the Parking Garage located on the Garage Parcel to be operated as a public parking garage in accordance with this subsection (c)." 1.4. Under Section 2.3 of the Lease, delete the semi -colon at the end of subparagraph (v) of Section 2.3(b) and add the following new subparagraph (vi) to Section 2.3(b): "and (vi) non-exclusive right and easement between the Retail Parcel and the Leased Property for the construction, installation use and maintenance of pedestrian bridges at locations shown on the Construction Plans or at such other locations as the City Manager may approve from time to time, the cost of maintenance, care and replacement of which to be split equally between the Developer and the lessee under the Retail Ground Lease." 1.5. Under subparagraph (1) of Section 2.3(c) of the Lease, delete the phrase "consent of Dade County Water and Sewer Authority" in the fourth and fifth lines and insert in lieu thereof "consent of the City". 1.6. Under Section 2.5 of the Lease, delete the first two sentences of clause (d) in their entirety and insert the following in lieu thereof: "Rental shall commence to accrue on the Rent Commencement Date. Annual Basic Rental shall be payable in equal monthly installments in advance on the first day of each full calendar month following the Rent Commence- ment Date, during the term of this Lease, the first such payment to include also any prorated Annual Basic Rental for the period from the Rent Commencement Date to the first day of the full calendar month thereafter. Annual Additional Rental and Annual Percentage Rental shall be determined each calendar quarter and annually pursuant to the reports required under Section 2.5(e) with adjustment to occur based upon each Rental Year one hundred twenty (120) days after each Rental Year." 1. 7, Under Section 2.6 of the Lease, delete the phrase "in the same manner and to the same extent as if the same, together with the improvements thereon, were owned in fee simple by Developer" appearing the the ninth and tenth lines. 1.8. Under Section 5.3 of the Lease, delete the phrase "subparagraphs (a) through (j)" in the introductory paragraph and insert in lieu thereof "subparagraphs (a) through (k)" and insert the following new paragraph (k) under Section 5.3: "(k) Any Transfer of any limited part- ner's interest in Developer as security for capital contribution loans made by another partner and any Transfer of such limited partner's interest to a new entity or person which is consented to by the City Manager or the City Commission pursuant to subparagraph (f) above or to another partner of Developer as a result of default in repayment of a capital contribution loan." 1.9. Add the following new sentence to Section 5.8 of the Lease: "Notwithstanding the foregoing, in the case of a permitted Transfer of a limited part- ner's interest under subparagraph (k) of Section 5.3., the Developer agrees that its partnership agreement shall obligate the purchasing partner to resell the defaulting limited partner's interest to another Black American or Hispanic American or entity owned or controlled by a Black American or Hispanic American within two (2) years of the initial transfer of the defaulting limited partner's interest if the transfer is necessary to maintain the twenty percent (20%) ownership by Black Americans or Hispanic Americans." 1,10. Under clause (b) of Section 6.1, add the following phrases: (a) Add the phrase "or any holder or of industrial development revenue bonds" in the eighth line at the end of the definition for "Institutional Investor", (b) Add the phrase ", security agreement or financing agreement in the case of issuance of industrial development revenue bonds," after the words "deed of trust" in the definition for "Leasehold Mortgage" in the ninth line and 3 (c) add the phrase "or creates a security interest in the Improvements in the case of the issuance and sale of industrial development revenue bonds" at the end of the definition for "Leasehold Mortgage" in the twelfth line, and (d) Add the words "and "Leasehold Mortgagee"" after the word "Lender" in the twelfth line. 1.11 Exhibits A-1, A-2, A-3, B, C, D, E, F, G and H to the Original Lease are deleted in their entirety and the attached new Exhibits A-1, A-2, A-3, B, C, D, E, F, G and H are substituted in lieu thereof for each respective exhibit. Section 2. Effect of this Amendment. Except as is hereinabove set forth, the provisions of the Lease shall hereafter remain in full force and effect, as if this Amendment had not been entered into. IN WITNESS WHEREOF, ROUSE-MIAMI, INC., the sole general partner of BAYSIDE CENTER LIMITED PARTNERSHIP, has caused this Lease Agreement to be signet{ in its name by its Vice President and its corporate seal to be hereunto affixed and duly attested by its Assistant Secretary, and the CITY COMMISSION OF MIAMI has caused this Lease Agree- ment to be signed in its name by Sergio Pereira, the CITY MANAGER, and duly attested to by Matty Hirai, the CITY CLERK, on the day and year first hereinabove written. ATTEST: Ass sta t Secrete [Corporate Seal] ATTEST: Matty Hirai, City Clerk BAYSIDE CENTER LIMITED PARTNER- SHIP, A MARYLAND LIMITED PARTNERSHIP By: ROUSE-MIAMI, INC., A MARYLAND CORPORATION, GENERAL PARTNER B Vice President THE CITY OF MIAMI, A MUNICIPAL CORPORATION OF THE STATE OF FLORIDA By. Sergio Pereira, City ana er APPROVED AS TO FORM AND CORRECTS: LUCIA ALL 1 DOUGHERTY CITY ATTORNEY STATE OF COUNTY OF I, an officer authorized to take acknowledgments, HEREBY CERTIFY that on this day of , 1985, personally appeared before me and known to me to be the Vice President and Assistant Secretary, respectively, of ROUSE-MIAMI, INC., a Maryland corporation, known to me to be the general partner of Bayside Center Limited Partnership, a Maryland limited partnership, and known to me to be the persons who executed the foregoing instrument, and they severally acknowledged the execution thereof as the free and formal act of the said corporation as the sole general partner of such Partnership. WITNESS my hand and official seal in said County and State the day and year last aforesaid. My Commission Expires: 375A Notary Public, State of Maryland 5 4 4 1 STATE OF FLORIDA ) COUNTY OF DADE ) I, an officer authorized to take acknowledgments, HEREBY CERTIFY that an this /7 day of art��. 1985 personally appeared before me Sergio Pereira �arid Matty Hirai, respectively, known to me to be the City Manager and the City Clerk, respectively, of THE CITY OF MIAMI, a municipal corporation in and under the laws of the State of Florida, and known to me to be the persons who executed the foregoing instrument, and they severally acknowledged the execution thereof as the free and formal act of the said municipal corporation. WITNESS my hand and official seal in said County and State the day and year last aforesaid. Notary Public, S ate of Floirai—` NDTARY PUBLIC STATE fl rge NY CORMISSION W. AUG 27,14N{ My Commission Expires: BONDED THRU GENERAL IRS. UND. t 375A 6 fw; 1985 q0Y -4 Fri 47 8 5 R 3 It 4 5 9 . 1O . 159 MEMORANDUM OF LEASE (PARKING GARAGE PARCEL "LEASB ) • TS SHORT -FORM LEASE AGR (the "Lea • 0") is made and entered - into this 17ttday of Hi WW L 1985, by and between THE CLu'OF`••MIAMI, a 'municipal corporation of the State'of Florida 1.0! • "Lessor").. and BAYSIDE CENTER LIMITED PARTNERSHIP, a Maryland limited partnership (the "Lessee"). W ITNESSETH: • ,That tor .and in consideration of the covenants herein'con- •:ta hed:..o i the.part of the parties hereto .observed and performed, *nd,,;paiticOXer:ly' the Covenants on the part of the. Leasee to pay :tt.41nta 'here:in . reserved and specified, the parties hereto do her. L y enter into this Lease, and the Lessor does hereby rent, Set .:ease and demise to the Lessee all those' certain tracts or perceis of land lying and being in the County of Dade, State of •F1orida, more particularly described as follows (the "Land"): See Schedule "A" attached hereto and by this reference made a parts hereof, together with the buildings and all other improvements presently Iodated on the Land (the "Demised Premises"); To have and to hold the Demised Premises during the initial term and the extension periods hereinafter described; Together with all and singular of the appurtenances, rights, interests, easements, and privileges in anywise appertaining thereto; TERM AND DURATION A. This Lease shall be for a term of forty-five (45) years, commencing on the first day of the month next following the Possession Date (as said term is defined in the full Amended and Restated Lease Agreement between Lessor and Lessee described below). B. Lessee is hereby given the option to extend the term of this Lease for up to two. (2) additional terms (each called a "Renewal Term") of fifteen (15) years each by giving written 'notification_ to Lessor not less than six (6) months before the ,date en' which such Renewal Term is tb commence. 1k1.ZS INSTRUMENT IS A SHORT -FORM OF THAT CERTAIN LEASE AGREE- 1 ',ED';4AWAA'Y 14,'•1985 AS AMENDED BY FIRST AMENDMENT TO ryy �'(itEj: , : DATED ' OL"1'O9ER r 1985 BETWEEN LESSOR AND ���=(E�`,$.�.,�[��,EB7l IN�R11, . Y �`REFERENCE AS IF roux SET TN?THE EVEND OF ANY • CONFLICT BETWEEN SAID FULL e:}�TNE:.BALANCE OFv TUTS MEMORANDUM, SAID FULL LEASE. SHALL R ERf,,!f.C.E SHOULD OE MADE TO THE• FULI. LEASE WHICH FURTHER *IGHTS• AND .OBLIGATIONS OF THE PARTIES. .,� E,E'': ,f+`.L:y.447 •1`0m IN THE LEASE, r.,LA4tTAI;N EASEMENTS• OVER THE PROPERTY 4p HE Ei'Q' ;AND MADE A PART HEREOF. ,001;wor :THE LEASE, TITLE LESSOR HAS GRANTED TO DESCRIBED IN SCHEDULE PRIOR TO THE EXPIRA- TO THE BUILDING'S AND •;bye Steven E. Coldman, Esq. of :.'6'.Qt..yaM; ortyre, rwspN • n„ . . *.,. •b*3$131 • ee4RrK.GNk {3dl1 sis.asao • a �s. EI2690Pc 160 IMPROVEMENTS CONSTRUCTED UPON THE LAND BY LESSEE SHALL NOT VEST IN LESSOR BY REASON OF ITS OWNERSHIP OF FEE SIMPLE TITLE TO THE UIW, RUT TITLE TO SAID BUILDINGS AND IMPROVEMENTS SHALL REMAIN It .'`rig5rS,'.sN, IN ADDITION,. IF THE LEASE SHALL TERMINATE PRIOR TO ,.:'-�IRATION. OF THE TERM THEREOF, AND IF, aT THAT TIME, ANY ',!MORTGAGEE {AS DEFINED IN THE LEASE), .HALL EXERCISE fTS 40TAIN' A NEW LEASE FOR TUE REMAINDER OF THE TERM OF rat TO SAIDBUILDINGS AND IMPROVEMENTS SMALL, AUTO- t ASS •:TU, VEST IN AND BELONG TO SUCR LEASEHOLD, NQRTGAGEE ,S GNRE •OR NOMINEE OF 1UC8 LEASEHOLD MORTGAGEE PERMITTED VW: UNa!II,.'HE EXPIRATION OR SOONER DETERMINATION OF e'ir •cvsuca NEW 'LEASE. • . ' A i :.arsons are put on notice that no person furnishing' :•!o services or materials in connection with repairs or :ijia t0001.h s to the property demised by the Lease shall be *it'Ltaed `to .any lien or other claim agaiinst Lessor's interest in '.the property demised by the Lease unless such person has a direct contract •with..Lessor. IN WITNESS WHEREOF, the parties hereto have executed this instrument the day and year first above written. Signed, sealed and delivered in the presence of: azrz,LL, LESSOR: THE CITY OF MIAMI, a municipal corporation of the State of Florid By: 5 0 'EREIRA. C ty nager [SEAL] LESSEE: • BAYSIDE CENTER LIMITED PARTNER- SHIP, a Maryland limited partnership By: ROUSE-MIAMI, INC„ a Maryland corporation, General Partner FORM AND CORRECTNESS: s4iW344.0PPPAN• WPOPP. 1K9$RM t OutPTRL. w A 414!LoRiaA.aMat rc4e04014: (aas) 37040100 12690PG 161 STATE OF FLORIDA ) • ) SS: COUNTY OF DADE ' ) The fo going, instrument was acknowledge'1 before me this y22 day of"' 1985 by SERGIO PRE/RA, as .ty Manager of T CITY OF M/AMIi a municipal corporation of the state of Florida. My Commission expires: WAIT PUBLIC $IMI AP flANIOA AY COMAISSION pm. ABB tutu ' MAO NIB BEICNAL JAS. 410. 411 STATE OF • 4 Pihre& . COUNTY or DAM- ) SS: The foregoing instrume day of SMUMMUtit, 1985, by October as I I was 1,42- Maryland corporation, on be half Partner on behalf of BAYSIDE Maryland limited partnership. My Commission expires: (NOTARIAL acknowledged before me this 4t,4LIelbUSE-MIAMI, INC., a of said corporation, as General CENTER LIMITED.PARTNERSHIP, (NOTARIAL SEAL) • 3 1.0,*00*-044400, ..orrodArc UOP. Acme*. es laucArci... A .16440.1,4Mtiow• r"P"A 33131 ° TILE"ONIt (30M 570.0600 Ltf a::12269` Opc 162 SCHEDULE A LEGAL DESCRIPitcN eA1 GE kAttLt:J. COWlance,•at .the ;Northeast cornea of .Block• 61. North of e `f'•'"KN LTA' MAP $P MIAMI, as recorded in. Plat Nook "B" ' `'' ge:'4je 1' the PRblic Roccirds of Dade' County, Florida; ot;Oe"run North• 99 50'18" East along the Easterly is. =:Na{rt'Iid.if1.y line of Block . 61 North of said A. Lr4M�TON _ , 07. $1410,I:QC'or a"distance of 703.43 feet to a J ,°�� .ints ut;l "40'98 1 West for a distance of 1.00.00afeet toe ace ''' bfe lnte.rsect:ion with the South line. of Port Boulevard .• +as'e:Rec rd'•ed: in -Official. Records Book 6811 at Page . 240 of the Pu4,l4c- Rct.00 dii of Dade County, Florida; said paint 'biting the -Point of. BegAnneng of. the parcel hereinafter described; thence wileSouth 00 08'11" West fps a distance of 181.09 feet to a F -nt; thence run South 89 51'49" Ea8t for a distance of 23.8 3' .ieat.to'a point; thence run South 00 08'11" Went for a d#stance of 41:50 feet to a point; 89.51'49" west for a distance of 23.83 feet tohphence run North .run:South 00°08'11° West f$r a distance of 174.50 feetttohanee t .pojht; thence run South 89 51'49" East for a distance of 23.83' fexet:.to a Point; thence run South 00 08'11" West for a distance .of 4 50 feet to a point; thence run North 89 51'49" West for a distance of 179$8 feet to a point: run South 00°08'`il" West fnr a distance of 25.00 feet to thence point; a distance of 1 Tthence run North 89°51'49" West for ion with a 210 feet Easto ly off and parallelo 4nt with the of oCity tMonument linene of Biscayne Boulevard (North); thence run North 16 51•29" West along said ling parallel with the City Monument line for a dWest for a istance of 338.56 feet to a point; thence run North 12t'57'37" distance wish the Southlino of said Port opoint of intersection Boulevard; o run 39 01'79" East along the South line of said Port cBouleva�rdtfor a dista.hee of 65.42 feet to a point of curvature of a curve coneavo to tho South having a red iva of 218 fact; thence :lorthoastorAy and cantcriy along said curve threug h a central AanS:io of 50 56'59" for an arc distance of 193.8.; feet to a taoFi t of tangency; thence continue. alongt1so South lino: of naid T�i±arti doulev,ard North 49 58•'10" Haut for a dietaeee of 203. 50' 01` 0 •the, Pofcit of Beginnlee; containing 17772 Acrt;u mere • -1- RH ?RN 163 LEGAL DESCRIPTION AREA "B" ....COMMenee at the Northeast corner of Block 61 North of the • )1. L. RNOWLTON MAP OF MIAMI, as recorded in Plat Book "B" At Page 41 of the Public Records of Dade Cpunty, Florida; thenpe run•Worth 89n8,1.8" East along the Easterly'prOlongation Northerly line of -Block 61 North of said A. L. KNOWLTON NWOMIAMI'for a distance of 184.07 feet to the Point of A006611a2..0fthe parcel hereinafter described; thence run A-0,14W4-/r2V29-.4 East for a distance of 254.19 feet to a point. . 04htersection with the -South line of Port Boulevard as recOrded in Official Records'Book 6811 at Page 24.0 of the -Publie Record a of Dada County, Florida; thence run North 39#0.1,t9° East along the South line of said Port Boulevard for a distance.of 65.42 feet to a point of .curvature of a -curve • concave to the South having a radius of 218 feet; thence run Northeasterly and Easterly along said curve through a central angle of 50'56'59.5* for an arc distance of 193.85 feet to a point of tangency; thenge continue along the'South line of said Port Boulevard North 89-5818" East for a distance of 835.90 feet, more or less, to a point of intersection with the U.-S. •Harbor Line of 1930 as shown on the plat of METROPOLITAN DADE COUNTY BULKHEAD LINE as recorded in Plat Book 74 at Page 3 of tha Public Records of Dade County, Florida; thence run North 00`15153* East along the said U. S. Harbor Line for a distance of 270,00 feet to a point of intersection with a line 170 feet North of and parallel with the Easterly prolongation of the Northerly line of Block 6/,North of said A. L. KNOWLTON MAP OF MIAMI; thence run South 89n818" West along said parallel line for a distance of 1230.02 feet to a point of intersection with a line 130 feet Easterly of and parallel with the City Monument Line of Biscayne Boulevard between N. E. 6th Street and N. E. 7th Street; thence xun South 24 26'29" East for a distance of 186.69 feet to the Point of Beginning, containing 7.526 acres, more or less. BAYFBON? PARK LEGAL DESCRXPTION' A subdivision of the James Kagan donation (Section 37) township 54 South, range 42 East being more particularly described as .Follows: commence at the intersection of the City monument line of Biscayne Boulevard (North), and S.E. 2nd Street, said point being approximately 99 feet easterly of the southeast corner of bleak 127 N of A.L. Knowlton's map of Miami, as shown on the plat of "Block 127 N and portion of 120 N" as recorded in plat book 25 at page 75 of the public reoords of Dade County, Florida; thence run S 89159'56" E along the said city monument line of S.E. 2nd street and its easterly prolongation thereof for a distance of 30 feet to a point; said point being the P.O.B. of the hereinafter described tract of land; thence in a northerly direction meandering along a line 30 feet easterly of and parallel with the City monument line of Biscayne Boulevard, said line being the easterly right-of-way line of said Biscayne Drive as shown on the A.L. Knowlton crap of Miami as recorded in plat book "B" at page 41 of the public record, of Dade County, Florida, a distance of 2715 feet more or less to the intersection with the easterly prolongation of the northerly line of block 61 north of said A.L. Knowlton map of Miami; thence N 89"58'8" E. along the easterly extension of said northerly line of block 61 north for a distance of 1284.84 feet more or leas to a point of intersection with the U.S. harbor line of 1939 as shown on the plat of Metropolitan Dade County bulkhead line as recorded in Plat Book 74 at page 3 u• of the public records of Dade County; thence run as O'15'53"•w along said U.S. Harbor line for a distance of 85.00 feet to a point; thence run S 67' 54'07" E along the : Je County bulkhead line as recorded in plat book 74 at page 18 of the publip records for a distance of 747.04 feet to a point; of intersection with a line which is the northeasterly' prolongation of the existing easterlj bulkhead of the Miaaarina, said bulkhead being 65.00 feet northwesterly of said Dade County bulkhead line (74- 18).; thence S 27'17'27" W along skid bulkhead and its southwesterly prolongation thereof tor a distance of 1519.85 feet to a point of curvature of a curve concave to the east having a radius of 100 feet; thence southwesterly and southerly along said curve through a central angle of 27°01'34" for en arc distance of 47.17feet to a point of tangency with the existing steel bulkhead along Biscayne Bay; thence 3 0'15'53" W along said steel bulkhead for a distance of 363.73 feet to a point of curvature with a curve concave to the west having a radius of 200 feet; thence southerly and southwesterly along said aurve through a center angle of 33'07'23" for an arc dfstance of 115.62 feet to a point of reverse curvature with a curve concave to the east having a radius of 200 feet; thence Southwesterly, southerly .and southeasterly along said curve through a central angle of 66't4'46" for an arc distance of 231.24 feet to a point of reverse curvature with a curve concave to the west having a radius of 200 feet; thence southeasterly and southerly along said curve through a central angle of 33'07'23" for an arc distance of 115.62 feet to a point of tangency; thence continue along acid 2 f 2590PG .156 existing steel bulkhead 5 O'15'53" W tor a distance of 120.35 feet to a point of intersection with the south property line of S.E. 2nd.street (Chopin Plaza), said line also being the northerly property line of tract "a" of Dupont. Plaza as recorded In plat book 50.at' page '11 of the public record' of Dade County, Florida. thence N 59"59'56" W along said northerly line of Dupont Plate and its westerly prolongation thereof for a distance 9f 804.JI feet to a point of intersection With a line that is 30 .feet easterly of and parallel with the City•monument line of Biscayne Boulevard (north): thence It 0°05'48" E for a distance of 25.00 feet to the P.O. Less and except therefrom the property described in Schedule 040. 3 NfIOM. M OMMYy, *NMI allip MN OOVOr.. KN0/04. IIOOM r.OMOI RICsARD 1'. R MC GU UII GEM caur yw�' .SK/nrw (12) 7(14/8e LL1437/DAA SECOND AMENDMENT TO BAYSIDE PARKING GARAGE LEASE AGREEMENT:.; THIS SECOND AMENDMENT TO BAYSIDE PARKING GARAGE LEASE AGREEMENT ("Second Amendment") made as of this /.23 '" day of —' +�'�".��s 1988, by and between BAYSIDE CENTER LIMITED PARTNERSHIP, a Maryland limited partnership (hereinafter referred to as "Developer"), and the CITY OF MIAMI, a municipal corpora- tion of the State of Florida (hereinafter referred to as the "City"), acting by and through the CITY MANAGER (hereinafter referred to as the "City Manager"), and with the prior approval of the City Commission of Miami. r _ W ITNESSET H: On January 14, 1985 the parties hereto entered into that certain Lease Agreement with respect to the Bayside Specialty Center Parking Garage, which the parties hereto amended by execution of that certain First Amendment dated October 17, 1985 (the Lease Agreement as amended by the First Amendment hereinafter collectively referred to as "the Lease"). On July 21, 1987 Dade County, Florida, (hereinafter referred to as "County")- and the City entered into an Agreement for the conveyance of a portion of Area B shown on Exhibit A-1 and described in Exhibit I attached hereto and made a part hereof (hereinafter called "New Port Boulevard Bridge Parcel") from the City to the County.i‘t`kial On , 1988, the County, City and Developer entereao an Agreement ("Tri-Party Agreement") whereby Developer agreed to release any leasehold interest as applicable in the New Port Boulevard Bridge Road under certain circumstances which include, wthout limitation, the recording of certain development restrictions governing future development of the New Port Boulevard Bridge Parcel. Pursuant to the Tri-Party Agreement, the parties desire and Developer affirms that Developer releases any leasehold interest as applicable in the New Port Boulevard Bridge Parcel that the Lease be revised to delete all obligations of Developer and City related to the Area B Surface Lot, and to further clarify certain terms and conditions of the Lease and to incorporate certain additions. In consideration of ten dollars ($10.00) paid by Developer to City and for other good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, the parties agree as follows: 1. Amendment to Lease. The Lease is hereby amended in the following respects: Paragraph 1.1. Insert the following new defined terms to Section 1.2. (Defined Terms): "County" means Dade County, Florida. "Grand Prix Easement" means that certain Easement Agreement dated 6)0; 6 , 1988 by the County to the City over portions of Area B for the purpose of conducting grand prix races or similar events, which easement is recorded in the public records of Dade County, Florida. "New Port Boulevard Bridge Parcel" means that certain portion of Area B conveyed by the New Port Boulevard Bridge Right -of -Way shown on Exhibit A-1 and described in Exhibit I. "New Port Boulevard Bridge Deed" means that certain Revised Quitclaim Deed from the City to the County dated Oc-fihei S" , 1988 and recorded in Clerk's File No. in the public records of Dade County, Florida, fee interest in a portion of Area B shown on Exhibit A-1 and described in Exhibit I. "Tri-Party Agreement" means that certain Agreeme between the County, the City and Developer dated 1988 recorded in the public records of Dade Count rids governing, among other things, the future development of the New Port Boulevard Bridge Parcel. "1961 Port Boulevard Bridge Easement" means that certain easement dated March 24, 1961 from the City to Dade County, Florida and recorded on April 12, 1970 in Clerk's File No. 70-R-59580 in the public records of Dade County, Florida shown on Exhibit A-1." Paragraph 1.2. Section 2.2(c) (Permitted Use for Leased Property) of the Lease is hereby amended by deleting the period at the end and adding the following: "and for public open space on Area B." /Paragraph 1.3. Section 2.3(b) (Easements Granted to Developer) of the Lease is amended by deleting the words "Surface -2- Lot" in the third line of clause (v). Paragraph 1.4. Section 2.5(b) (Continuous Operation) of the Lease is amended by deleting the phrase "and Area B Surface Lot" appearing in the first and second sentences and delete the phrase "or Area B Surface Lot" in the third sentence. Paragraph 1.5. Section 3.1 (Improvements to be Designed by Developer) of the Lease is herby amended by deleting the phrase "and Area B Surface Lot" in the first sentence, in the fifth sentence and the last sentence of the first paragraph. VParagraph 1.6. Section 3.4 (Facilities to be Constructed) of the Lease is hereby amended by deleting the phrase "and Area B Surface Lot" appearing in the second line. /Paragraph 1.7. Section 3.7 (Construction Period) of the Lease is hereby amended by deleting the phrase "and Area B Surface Lot" appearing in the second line. ,jParagraph 1.8. Section 3.9 (Certificate of Final Completion) of the Lease is hereby amended by deleting the phrase "and Area B Surface Lot" appearing in the second line. /Paragraph 1.9. Section 8.1(a) (Developer to Discharge Mechanic's Liens) of the Lease is hereby amended by adding the following Section at the end of subsection (a): "Notwithstanding anything to the contrary in this Section 8.1., the Developer's obligations under this Section 8.1 as to Area B shall apply if and only to the extent the mechanic's liens are filed as a result of construction work related to the Improvements constructed by Developer." /Paragraph 1.10. Section 10.2 (Partial Taking of Leased Property by Conremnation) of the Lease is amended by adding the following sentence at the end of clause (a): "Notwithstanding the foregoing, Developer hereby waives its rights to proceeds received by the City under the New Port Boulevard Bridge Right - of -Way." /Paragraph 1.11. The Lease is hereby amended by adding the following new Section 12.11: "Section 12.11. Port Boulevard Bridge and Elimination of Area B Surface Lot. Notwithstanding anything to the contrary in this Agreement, upon conveyance to the County of the New Port Boulevard Bridge Parcel pursuant to the New Port Boulevard Bridge Deed, Developer is released of any and all of its obligations related to the Area B Surface Lot, including without limitation; the construction, operation and maintenance of the Area B Surface Lot, except as otherwise provided in this Lease or in the Tri- -3- Party Agreement. Developer's acknowledgment of a consent to the Grand Prix Easement or the 1961 Port Boulevard Bridge Easement shall not be deemed to be a consent by Developer to any amendments or modifications thereto.,� City agrees not to terminate or modify the restrictions cth se set forth in the Deed. Paragraph 1.12. The Survey attached as Sheet 2 of Exhibit A-1 is hereby deleted and the attached Sheet 2 of 2 of Exhibit A is inserted in lieu thereof to effectuate the release of Developer's leasehold interest in the New Port Boulevard Bridge Parcel. Paragraph 1.13. The legal description of Area B attached as Exhibit C is hereby deleted and the attached Exhibit C is inserted in lieu thereof to effectuate the release of Developer's leasehold interest in the New Port Boulevard Bridge Parcel. Paragraph 1.14. The legal description of the New Port Boulevard Bridge Parcel is attached hereto as Exhibit I and made a part of this Lease. 2. Effect of this Amendment. Except as is hereinabove set forth, the provisions of the Lease shall hereafter remain in full force and effect, as if this Second Amendment had not been entered into. IN WITNESS WHEREOF, ROUSE-MIAMI, INC., the sole general partner of BAYSIDE CENTER LIMITED PARTNERSHIP, has caused this Second Amendment to Lease Agreement to be signed in its name by its Vice President and its corporate seal to be hereunto affixed and duly attested by its Assistant Secretary, and the CITY COMMISSION OF MIAMI has caused this Second Amendment to Lease Agreement to be signed in its name by Cesar Odio, the CITY MANAGER, and duly attested to by Matty Hirai, the CITY CLERK, on the day and year first hereinabove written. ATTEST: BAYSIDE CENTER LIMITED PARTNERSHIP, A Maryland Limited Partnership By: ROUSE-MIAMI, INC., A Maryland Corporation, General Eartner �; ,�-By: Suzanne irby, Assistant Secretary \ -4- es F. Dausch, ce-President [CORPORATE SEAL] ATTEST: MAT IRAI City Clerk APPROVED AS TO FORM AND CORRECTNESS: JO GE L I RNANDEZ, Ci y Attorne THE CITY OF MIAMI, A Municipal Corporation the State of Florida By: Cesar Odio, Odio, City Manager STATE OF '7')/(0. COUNTY OF (7,5 ,e, e- I, an officer authorized to take acknowledgments, HEREBY CERTIFY that on this , c/,') day of C 4� , 1988, personally appeared before me JAMES F. ' =YoH and SUZANNE KIRBY, known to me to be the Vice President and Assistant Secretary, respectively, of ROUSE-MIAMI, INC., a Maryland corporation, known to me to be the general partner of Bayside Center Limited Partnership, a Maryland limited partnership, and known to me to be the persons who executed the foregoing instrument, and they severally acknowledged the execution thereof as the free and formal act of the said corporation as the sole general partner of such Partnership. WITNESS my hand and official seal in said County and State the day and year last aforesaid. Notary Public, State of Maryland My Commission Expires:1-/- 9 CONSENT SUN BANK (N.A.), Trustee under that certain Trust Indenture dated as of October 1, 1985 and does hereby consent to the foregoing Second Amendment to Lease Agreement and agrees to be bound thereby. SUN BANK (N.A.) By: Camille H. Moore, Trustee I, an officer authorized to take acknowledgments, HEREBY CERTIFY that on this.,] 9 rA day of � tit- , 1988, personally appeared be,,� ore me, 6d.E 'met-)x,. , known to me to be the,.41 n_ttU- fug, . c ct°L: o SUN BANK (N.A.) and known to me to be the person who ecuted the above consent to the foregoing instrument, and he/she acknowledged the execution thereof as the free and formal act of the said corporation. WITNESS my hand and official seal in said County and State the day and year last aforesaid. Notary'Plublic State of 'L L Notary puhl;c, f tate of Florida My Commission Expires March 15, 1991 My Commission Expires: Bonded Hint Noy Nat 'mutants sae. CONSENT CONNECTICUT GENERAL LIFE INSURANCE COMPANY, Mortgagee under that certain Mortgage Consolidation, Modification and Extension Agreement dated December 3, 1987 and recorded under Clerk's File No. 87R-457717 in the public records of Dade County, Florida and does hereby consent to the foregoing Second Amendment to Lease Agreement and agrees to be bound thereby. CONNECTICUT GENERAL LIFE INSURANCE COMPANY By: CIGNA Investments, Inc. BY: , 6e /R.. ‘. 7.fii .--- Name: Robert E. Peterson Its: Vice President I, an officer authorized to take acknowledgments, HEREBY CERTIFY that on this l5th day of July , 1988, personally appeared before me Robert E. Peterson , knowd to me to be the vice Prgsident of CIGNA INVESTMENTS, INC., an authorized agent for CONNECTICUT GENERAL LIFE INSURANCE COMPANY known to me to be the person who executed the above consent to the foregoing instrument, and he/she acknowledged the execution thereof as the free and formal act of the said corporation. WITNESS my hand and official seal in said County and State the day and year last aforesaid. Notary Pubic Gayle A. Brown State of Connecticut My Commission Expires: 3/31/89 StS IS ST 41=111111Pm=1 an.• hAb• +A 10.0, .1 """ r*. " • ' ' 18.. 1.000, • ''''' 0am.. ••• :::70r1:04 P1.1 A 0.11, Sus LA.1./(1 ..•. •1 0.4000.044 vit0 •1•• si.• 3111,44.11,1* an. Mon .math •S tab.. I ca . ...... 1.10, Al lir, 1,0 t••• as.. 1.s. tLEUHLJ 5.1.1RVE1 sci I% 40' 4 SA1,16 c St 000•I, 00.0,000,1•0 —84,51De MARK(' P.c.pc1-_. -.21maarcktnet " .. . " :"" • ...a At. ,.. .1 ' 01••110111 . .7. • • - •-• *:::;;;; : .".' :.:-. • AREA 4:7 THIRD AMENDMENT TO BAYSIDE PARKING GARAGE LEASE AGREEMENT, THIS THIRD AMENDMENT TO BAYSIDE PARKING GARAGE LEASE AGREEMENT (this "Amendment") made 15th ade as of this day of April , 1993, by and between BAYSIDE CENTER LIMITED PARTNERSHIP, •a Maryland limited partnership (hereinafter referred to as "Developer"), and the CITY OF MIAMI, a municipal corpora- tion of the State of Florida (hereinafter referred to as the "City"), acting by and through the CITY MANAGER (hereinafter referred to as the "City Manager"), and with the prior approval of the City Commission of Miami. WITEESSET H: On January 14, 1985 the parties hereto entered into that certain Lease Agreement with respect to the Bayside Specialty Center Parking Garage, which the parties hereto amended by execution of that certain First Amendment dated October 17, 1985 and the Second Amendment dated September 13, 1988 (the Lease Agreement as_amended by the First Amendment and the Second Amendment hereinafter collectively referred to as "the Lease"). The City and Developer desire to make certain changes to the Lease so that the Lease will be consistent with the Retail Lease (as such term is defined in the Lease) and certain other changes related to transfer of partnership interests in Developer. In consideration of ten dollars ($10.00) paid by Developer to City and for other good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, the parties agree as follows: 1. Amendment to Lease. The Lease is hereby amended in the following respects: Paragraph 1.1. Clause (h.) of Section 5.3 (Transfers) of the Restated. Lease is amended by adding the words "orany Transfer by will or by operation of law as a result of a death of a limited partner of Developer" at the end of the clause. Paragraph 1.2. Clause (k) of Section 5.3 (Transfers) of the Restated Lease is amended by inserting the phrase "or lending institution" after the phrase "made by another partner" appearing in the third and fourth line. Paragraph 1.3. Section 5.8 (Minority Participation in Ownership) is hereby amended by deleting the last sentence in its entirety and inserting the following in lieu thereof: "Notwithstanding the foregoing, in the case of a permitted Transfer of a limited partner's interest -under subparagraph (k) of Section 5.3. and a subsequent transfer back to a partner of Developer either as a result of a default by the transferring limited partner or the exercise of an option by the transferring limited partner requiring another partner of Developer to purchase its interest, then neither the Developer nor the purchasing partner shall be obligated to resell the transferring limited partner's interest to another Black. American or Hispanic American or entity owned or controlled by a Black American or Hispanic American and the percentage set forth in the first sentence of this Section shall be automatically reduced by the percentage interest of the minority limited partner so transferred." Paragraph 1.4. Section 9.1(d). (Liabil.ity Insurance) of the Lease is amended by deleting the second sentence and inserting the following in lieu thereof: "Such insurance shall afford protection to at least the combined single limit for bodily injury and property damage liability of $5,000,000 per occurrence but no lessthan the minimum amount required by any Leasehold Mortgage . " 2. Effect of this Amendment. Except as is hereinabove set forth, the provisions of the Lease shall hereafter remain in full force and effect, as if this Amendment had not been entered into. IN WITNESS WHEREOF, ROUSE-MIAMI, INC.., the sole general partner of BAYSIDE CENTER LIMITED PARTNERSHIP, has caused this Third Amendment to Lease Agreement to be signed in its name by its Vice President and its corporate seal to be hereunto affixed and duly attested by its Assistant Secretary, and the CITY COMMISSION OF MIAMI hascaused this Third Amendment to Lease Agreement to be signed in its name by Cesar H. Odio, the CITY -2- MANAGER, and duly attested to by Matty Hirai, the CITY CLERK, on the day and year first hereinabove written. ATTEST: RICHARD E. GALEN Assistant Secretary [CORPORATE SEAL] ATTEST: MA 'IRAI, Cl'y Clerk BAYSIDE CENTER LIMITED PARTNERSHIP, a Maryland Limited Partnership By: ROUSE-MIAMI, INC., a Maryland Corporation, General Partner By: . LA TA, J. . ^� Vice -President THE CITY OF MIAMI, a Municipal Corporation of the State of Florida • By: CESAR H. ODIO, City Manager APPROVED AS TO FORM AND CORRECTNESS: A QU JOB•, III, City Attor STATE OF 777 )ss. COUNTY OF 1, an an officer authorized to take acknowledgments, HEREBY CERTIFY that on this 5,44 dq of 1993, erson lly ap eared before me 0 -r4,. and , known to me to be the ice President and Assistant Secretary, respectively, of ROUSE-MIAMI, INC., a Maryland corporation, known to me to be the general partner -of Bayside Center Limited Partnership, a Maryland limited partnership, and known to me to be the persons who executed the foregoing instrument, and they .severally acknowledged the execution thereof as the free and formal act of the said corporation as the sole general partner of such Partnership. WITNESS .my hand and official seal in said County and State the day and. year last aforesaid. My Commission Expires: STATE OF 4-7011-2---/ ) ) ss. ) COUNTY NotaYy Public, State of Maryland I, an officer aulboriz CERTIFY that on thisP/-gleay of person 1 appeared_before me and thcTtC1erk, respectively, of THE CITY OF MIAMI, a municipal corporation in and under the laws of the State of Florida, and known to me to be the persons who executed. the foregoing instrument, and they severally acknowledged the execution thereof as the free and formal act of the municipal corporation. to known to to WITNESS my hand and offi State the day and year aforesai My Commission Expires: MOTOY PUBLIC STATE OP PLORIDA NY COMMISSION EXP. APR.4.4624 BONDED THEU GENERAL INS. UND. acknowledgments, HEREBY , 1993, 2S /7 and e to be the City Manager said 1 in sa Couty and Notary Public, State of Florida ac 7 ) "e"-2- ,; • CONSENT SUN BANK (N.A.), Trustee under that certain Trust Indenture dated as of October 1, 1985 and does hereby consent to the foregoing Third Amendment to Lease Agreement and agrees to be bound thereby. SUN By: Name: Davld A. Rimpo Title: Assistant/ ice President I, an officer authorized to take acknowledgments, HEREBY CERTIFY that on this 21st day of May , 1993, personally appeared before me David A. Rimpo , known to me to be the Assistant Vice President of SUN BANK (N.A.) and known to me to be the person who executed the above consent to the foregoing instrument, and he/she acknowledged the execution thereof as the free and formal act of the said corporation. WITNESS my hand and official seal in said County and State the day and year last aforesaid. My Commission Expires: Notary Public State of 'Florida County of Orange RIA M. all. WELL Notary Public, State of Florida My comm. expltes Apr. 3, 1995 Comm, No. CC 095714 CONSENT CONNECTICUT GENERAL LIFE INSURANCE. COMPANY, Mortgagee under that certain Mortgage Consolidation, Modification and Extension Agreement dated December 3, 1987 and recorded in the Official Record Book 134.98- at page 670 in the. .Land Records •of Dade County, Florida and does hereby consent to the foregoing Third Amendment to Lease Agreement and agrees to be bound thereby. CONNECTICUT GENERAL LIFE INSURANCE COMPANY By: CIGNA Investments, Inc. By: I, an officer authorized to take acknowledgments, HEREBY CERTIFY that on this \..t4 day og. ,.L.11"\00 c, , 1993, personally appeared before me 1--" , known to me to be the of CIGNA INVESTMENTS, INC., an authorized agent for CONNECTICUT GENERAL LIFE INSURANCE COMPANY known to me to be the person who. executed the above consent to the foregoing instrument, and he/she acknowledged the execution thereof as the free and formal act of the said corporation. WITNESS my hand and official seal in said County and State the day and year last aforesaid. Notary Public /i State of ( nnneCTI County of 14-r-A My Commission Expires: JE>ors:, r-Mr- M, WHITCOMB PUBLI MY 004,14‘0,4,,, ' S SO, 1997 JEANNENS M. WHITCOMB NOTARY PUBLIC PAY COMMISSION EXPIRES SEPT. SO, 1997 -6-