HomeMy WebLinkAboutBack-Up Documents - Non Relocation AgreementUpdated Version 1/27/22
NON -RELOCATION AGREEMENT
This Non -Relocation Agreement (this "Agreement") is made and entered into as of this
[ ] day of [ ], 20 (the "Execution Date") by and between the (i) CITY OF MIAMI, a
municipal corporation of the State of Florida, having its principal office and place of business at
3500 Pan American Drive, Miami, Florida 33133 (the "City"), (ii) INTER MIAMI CF, LLC, a
Delaware limited liability company, having its principal office and place of business at [ ]
("IMCF"), and (iii) MIAMI FREEDOM PARK, LLC, a Delaware limited liability company
("MEP"), but only for purposes of Sections 5, 6, 8 through 10 and 12 through 18 of this Agreement.
The City and IMCF shall be referred to herein collectively as the "Parties" and each, individually,
as a "Party".
RECITALS
WHEREAS, IMCF holds the rights to operate the MLS (as defined below) team known as
Inter Miami CF ("Team") pursuant to the MLS Operating Agreement (the "Team Rights"); and
WHEREAS, the City is the owner of a certain parcel of real property commonly known as
the Melreese Country Club (the "Parent Tract"); and
WHEREAS, in an effort to seek greater public use of the Parent Tract, to derive additional
revenue from the existing commercial uses on the Parent Tract, to generate tax revenues from the
uses on the Parent Tract, and to stimulate economic activity in the City, the City has agreed to
permit MFP to re -develop portions of the Parent Tract, subject to and in accordance with the terms
of the Lease Agreements; and
WHEREAS, the redevelopment of the Parent Tract will consist of constructing a soccer
stadium, ancillary development thereto, commercial development and a public park, all as more
particularly described in the Lease Agreements, on separate portions of the Parent Tract; and
WHEREAS, in furtherance thereof and contemporaneously with the execution of this
Agreement, (i) MFP and the City have entered into that certain Ground Lease for Soccer Stadium
(the "Stadium Lease") pursuant to which the City shall lease that certain property as described
therein (the "Stadium Property") to MFP and MFP will construct, develop, operate, maintain,
and manage the soccer stadium built thereon (the "Stadium"), (ii) the City, MFP, and Inter Miami
Stadium, LLC, a Delaware limited liability company ("IMS") have entered into that certain
Construction Administration Agreement (the "Construction Administration Agreement"),
pursuant to which IMS shall design, develop and construct the Stadium and MFP shall design,
develop and construct the ancillary development portion of the Parent Tract (the "Commercial
Development"), and (iii) the City and MFP have entered into that certain Commercial
Development Ground Lease (the "Commercial Lease"), pursuant to which the City shall lease
that certain property as described therein to MFP (the "Commercial Property"); and
WHEREAS, MFP intends to sublease to IMS the Stadium Property pursuant to the
Sublease and thereby IMS will operate, maintain and manage the Stadium; and
WHEREAS, the Team desires to play its Home Matches at the Stadium; and
WHEREAS, on July 18, 2018, the City Commission passed Resolution R-18-0309,
authorizing the City Attorney to prepare an amendment to the Charter for consideration at the
election scheduled for November 6, 2018, proposing to amend the Charter to authorize the City
Commission to waive competitive bidding and by a four -fifths (4/5th) affirmative vote lease the
Parent Tract to MFP ("Charter Amendment"); and
WHEREAS, on November 6, 2018, the City's residents approved, by public referendum,
the Charter Amendment; and
WHEREAS, as a material inducement to the City to enter into the Lease Agreements, (x)
IMCF has agreed to enter into this Agreement to assure that the Team will play substantially all of
its Home Matches at the Stadium during the Non -Relocation Term on the terms and conditions set
forth herein and (y) MFP has agreed to enter into this Agreement in order to fulfill the obligation
of IMCF to pay the Liquidated Damages to the City if required pursuant to Section 5.3;
NOW, THEREFORE, for and in consideration of the mutual covenants and agreements
contained in this Agreement and other good and valuable consideration, including $100.00 paid
on the date hereof from IMCF to the City, the receipt and sufficiency of which are hereby
acknowledged, the Parties (and MFP, but only for purposes of the sections set forth above),
intending to be legally bound, hereby agree as follows:
1. Definitions.
"Affiliates" shall mean, for any Person, any other Person that such Person controls.
"Agreement" shall have the meaning set forth in the preamble.
"Alternate Site Condition" shall mean the existence of any one of the following
conditions:
i. an Untenantable Condition that exists or is reasonably expected to exist at the time
of any scheduled Home Match;
ii. Casualty; or
iii. a Governmental Authority determines the use or occupancy of any material
portion of the Stadium is (a) not permitted under any Applicable Law or (b) unsafe for customary
usage.
"Applicable Law(s)" shall mean all applicable laws, ordinance, rules, regulations,
authorizations, orders and requirements of all federal, state, City and municipal governments, the
departments, bureaus or commissions thereof, or any other body or bodies exercising similar
functions having or acquiring jurisdiction over all or any part of the Stadium Property.
"Bankruptcy Code" shall have the meaning set forth in Section 5.2.3.
"Casualty" means any material damage or destruction of the Stadium or of any material
part thereof caused by fire, hurricane, or other occurrence.
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"Charter Amendment" shall have the meaning set forth in the recitals.
"City" shall have the meaning set forth in the preamble.
"City Attorney" shall mean Victoria Mendez or her successor as City Attorney of the City
of Miami, Florida.
"City Commission" shall mean the City Commission of the City of Miami, Florida.
"City Manager" shall mean Arthur Noriega or his successor as City Manager of the City
of Miami, Florida.
"Commencement Date" shall mean the date that the Stadium is granted a certificate of
occupancy.
"Commercial Development" shall have the meaning set forth in the recitals.
"Commercial Lease" shall have the meaning set forth in the recitals.
"Commercial Property" shall have the meaning set forth in the recitals.
"Construction Administration Agreement" shall have the meaning set forth in the
recitals.
"Execution Date" shall have the meaning set forth in the preamble.
"Final Notice" shall have the meaning set forth in Section 5.5.1.
"Final Order" shall mean when a court of competent jurisdiction determines, in a final
and non -appealable order, that IMCF has breached its covenants under Section 2 of this
Agreement.
"Governmental Authority" shall mean all federal, state, county and municipal
governments, the departments, instrumentalities, agencies, bureaus or commissions thereof, or
any other body or bodies exercising similar functions having or acquiring jurisdiction over all or
any part of the Stadium Property.
"Home Matches" shall mean MLS regular season and postseason games and Local
Matches, in each case, played by Team for which Team has been designated (under MLS Rules
and Regulations) as the "home team", but shall exclude (i) any game for which the Team is
designated under MLS Rules and Regulations as the "home team" and that occurs within a
tournament format hosted at a pre -determined site that is either (A) outside of the Team's home
territory or (B) if inside Team's home territory, has seating capacity that can accommodate more
than 50,000 patrons, provided, however, that there may be no more than one (1) such tournament
per Season under this clause (i)(B), provided that no such tournament in this clause (i) shall be an
MLS regular season or post -season game; (ii) any other MLS regular season or post -season games
which MLS directs be played at a neutral location, provided, however, that there may be no more
than two (2) such games per Season under this clause (ii), (iii) games which the MLS directs be
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played at a location other than the Stadium due to the existence of force majeure circumstances
which prevent games from being played at the Stadium, (iv) up to the greater of (x) five (5) or (y)
thirty-three percent (33%) of the Team's Local Matches in any Season which IMCF reasonably
determines are likely to draw an attendance of greater than 6,250 patrons, (v) up to the greater of
(x) four (4) or (y) seventy-five percent (75%) of the Team's Local Matches in any Season which
IMCF reasonably determines are likely to draw an attendance of 6,250 patrons or fewer, and (vi)
any MLS Cup match or other match that determines the MLS champion for any Season which
MLS directs be played at a neutral location. Any additional games of the type described in clause
(ii), (iv) or (v) beyond the limits prescribed under clause (ii), (iv) or (v), as applicable, may be
excluded from the definition of "Home Matches" by IMCF, subject to the City's reasonable
approval, not to be unreasonably withheld, conditioned or delayed.
"Government Indemnitees" shall have the meaning set forth in Section 11.
"IMCF" shall have the meaning set forth in the preamble.
"IMCF Transferee" shall have the meaning set forth in Section 9.1.
"IMS" shall have the meaning set forth in the recitals.
"Lease Agreements" shall mean, collectively, this Agreement, the Commercial Lease, the
Stadium Lease, the Sublease, the Construction Administration Agreement, and any other
agreements deemed necessary by the Parties and MFP to memorialize the terms and conditions set
forth in these agreements.
"Liquidated Damages" shall mean an amount equal to, (i) from the Commencement Date
until the fifth (5th) anniversary of the Commencement Date, $20,000,000, (ii) from the fifth (5th)
anniversary of the Commencement Date until the tenth (10th) anniversary of the Commencement
Date, $12,000,000, (iii) from the tenth (10th) anniversary of the Commencement Date until the
fifteenth (15t') anniversary of the Commencement Date, $10,000,000, (iv) from the fifteenth (15th)
anniversary of the Commencement Date until the twentieth (20th) anniversary of the
Commencement Date, $6,000,000, (v) from the twentieth (20th) anniversary of the
Commencement Date until the twenty-fifth (25th) anniversary of the Commencement Date,
$3,000,000, and (vi) from the twenty-fifth (25th) anniversary of the Commencement Date until the
end of the Non -Relocation Term, $3,000,000. The Parties acknowledge that they have negotiated
the amount of the Liquidated Damages in an attempt to make a good faith effort in quantifying the
amount of damages incurred by the City due to a Non -Relocation Default because the Parties
determined that such damages are not readily ascertainable and, therefore are stipulated. In
stipulating such amount, the Parties have considered numerous factors, including without
limitation, the following: (i) the substantial time and expense of the public in securing the Team's
commitment to play the Home Matches at the Stadium for the Non -Relocation Term; (ii) the
possible reduction in value and marketability of the Stadium and surrounding development arising
from the absence of the Team; (iii) the reputational and other detrimental effects of a Non -
Relocation Default on the City of Miami community; and (iv) the loss of alternative development
opportunities within the Stadium Property and Commercial Property.
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"Local Matches" shall mean soccer games played by Team in Team's home territory for
which Team markets and sells tickets to patrons and for which the Team has been designated as
the "home team," but excluding all MLS regular season and postseason games.
"Losses" shall have the meaning set forth in Section 11.
"MFP" shall have the meaning set forth in the preamble.
"MLS" shall mean Major League Soccer, L.L.C., a Delaware limited liability company.
"MLS Governing Documents" shall mean (i) the limited liability company agreement of
MLS, (ii) the MLS Operating Agreement and (iii) the MLS constitution, in each case in clauses
(i)-(iii), as in effect from time to time and any amendments, supplements or other modifications
thereto and all replacement or successor documents thereto that may in the future be entered into.
"MLS Operating Agreement" shall mean the MLS Team Operating Agreement dated as
of August 21, 2018 between MLS and IMCF (as assignee of Miami Beckham United, LLC) as in
effect from time to time and any amendments, supplements or other modifications thereto and all
replacement or successor documents thereto that may in the future be entered into.
"MLS Rules and Regulations" shall mean (x) the MLS Governing Documents, (y) any
present or future agreements or arrangements entered into by, or on behalf of MLS, including,
without limitation, agreements or arrangements entered into pursuant to the MLS Governing
Documents, and (z) the present and future written and adopted or approved mandates, rules,
regulations, policies, practices, bulletins, by-laws, directives or guidelines issued or adopted by, or
behalf of, MLS as in effect from time to time, in each case in clauses (x)-(z), as in effect from time
to time and any amendments, supplements or other modifications thereto and all replacement or
successor documents thereto that may in the future be entered into.
"Non -Relocation Default" shall mean any breach by IMCF of any of the terms, covenants
or agreements of Section 2 of this Agreement.
"Non -Relocation Covenants" shall mean the collective covenants made by, and
obligations imposed on, IMCF pursuant to Section 2 of this Agreement.
"Non -Relocation Term" shall mean the term of this Agreement, which shall run for thirty
(30) years from the Commencement Date, subject to the termination of this Agreement pursuant
to Section 5.5 of this Agreement.
"Parent Tract" shall have the meaning set forth in the recitals.
"Party" shall have the meaning set forth in the preamble.
"Person" shall mean any individual, corporation, partnership, joint venture, limited
liability company, estate, trust, unincorporated association, any Governmental Authority, and any
fiduciary acting in such capacity on behalf of any of the foregoing.
"Personnel" shall have the meaning set forth in Section 13.
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"Proposed Date" shall have the meaning set forth in Section 4.2.
"Recitals" shall mean those terms which give relevant facts or information pertaining to
this Agreement and appear in the first two pages. The Recitals are deemed as being incorporated
by reference in this Agreement. Recitals has the same meaning as preamble for purposes of this
Agreement.
"Season" shall mean a period of time coextensive with the MLS season as established from
time -to -time under MLS Rules and Regulations.
"Stadium" shall have the meaning set forth in the recitals.
"Stadium Agreements" shall mean, collectively, this Agreement, the Stadium Lease, the
Sublease, and the Construction Administration Agreement.
"Stadium Lease" shall have the meaning set forth in the recitals.
"Stadium Property" shall have the meaning set forth in the recitals.
"Team" shall have the meaning set forth in the recitals.
"Team Rights" shall have the meaning set forth in the recitals.
"Untenantable Condition" means the existence of any one of the following conditions,
but only to the extent the same is not the result of the willful misconduct of IMCF:
(a) The condition of the Stadium or any material portion thereof is or may
be such that MLS determines that the playing of Home Match is not permitted at such location
under the MLS Rules and Regulations that are generally applicable to other similar MLS
facilities; or
(b) The condition of the Stadium or any material portion thereof does not
reasonably permit it to be used, occupied or exploited by IMCF in connection with Home
Matches; or
(c) The use or occupancy of the Stadium or any material portion thereof
for a Home Match is not permitted under Applicable Laws or is restricted in any material
respect under Applicable Laws or otherwise, including, but not limited to, denial of access.
Any capitalized term not otherwise defined herein shall have the meaning ascribed to it in
the Stadium Lease, unless such term is not defined therein, in which case it shall have the meaning
ascribed to it in the Commercial Lease.
2. Covenant to Play at the Stadium. Subject to Section 3 of this Agreement, IMCF
covenants and agrees that commencing on the Commencement Date and throughout the remainder
of the Non -Relocation Term, as applicable:
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2.1 IMCF shall maintain and use the Stadium as permitted in the Stadium Lease,
including for operations related to Stadium Events, Team ticket and sponsorship sales, and a Team
store;
2.2 the Team shall play all of its Home Matches at the Stadium (subject to the
exceptions set forth in the definition of Home Matches and in Section 3); and
2.3 Subject to the exceptions set forth in the definition of Home Matches and in
Section 3, IMCF (a) shall not enter into any contract or agreement, or make any request or
application to MLS, to (i) violate Section 2.1 or (ii) have the Team play any Home Match in any
location other than the Stadium in violation of Section 2.2; and (b) shall not (i) entertain any offer
or proposal to relocate the Team's Home Matches to a location other than the Stadium, (ii) solicit
an offer or proposal from any Person to enter into discussions regarding moving the Team's Home
Matches to a location other than the Stadium, (iii) enter into negotiations with third parties
concerning the relocation of the Team's Home Matches to a location other than the Stadium, or
(iv) otherwise attempt to cause or entertain any offer of proposal to facilitate the playing of Home
Matches at a location other than the Stadium, in each case in clauses (i)-(iv), in violation of Section
2.2. The prohibitions set forth in this Section 2 shall not apply to prospective applications,
agreements, or discussions, if any such proposed game, move or relocation would not occur or
take effect until after the Non -Relocation Term.
The execution and delivery to the City of this Agreement is a condition precedent to the
effectiveness of the City's obligations under the Lease Agreements.
3. Exceptions.
3.1 Notwithstanding the provisions of Section 2, the Team shall be permitted to
play, and to enter into arrangements to permit the Team to play, what would otherwise be a Horne
Match at a location other than the Stadium in the event of an Alternate Site Condition.
3.2 If a certificate of occupancy for the Stadium is not obtained until after the
date on which one-half of the Team's scheduled MLS regular season Home Matches have been
played in the then -current Season, the covenants in Section 2 shall not become effective until the
start of the succeeding Season.
3.3 IMCF may take any actions otherwise prohibited by Sections 2.1, 2.2 and
2.3, in connection with any games played at another location that are permitted by this Section 3.
3.4 Without limiting the generality of any other provision of this Agreement,
the covenants of IMCF provided in Section 2 shall not apply: (i) if IMCF obtains the City's written
consent, which consent shall be within the sole and absolute discretion of the City, prior to any
action(s) otherwise prohibited under such section; provided, however, any actions which would
allow the Team to permanently relocate from the City shall be subject to any MLS approvals that
may then be required under the MLS Rules and Regulations; and (ii) at any time after the
termination of this Agreement.
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4. Alternate Site Condition.
4.1 Notwithstanding the provisions of Section 2, if, at any time during the Non -
Relocation Term, an Alternate Site Condition shall exist, then (i) IMCF shall be entitled to make
arrangements to have the Team temporarily play Home Matches at alternate sites in Miami -Dade
County or Broward County and (ii) IMCF shall be temporarily relieved of its obligations under
Sections 2.2 and 2_3 hereunder and shall be entitled to allow the Team to play its Home Matches
at such alternate sites, but only during the period of time that any such Alternate Site Condition
shall exist; provided, however, that if the Alternate Site Condition shall be of such a nature that its
expected expiration cannot reasonably be ascertained by IMCF or the City, then IMCF shall be
entitled to honor any commitment it might reasonably have made for the Team to play its Home
Matches at an alternate site even if that commitment extends beyond the date such Alternate Site
Condition ends. IMCF shall not, however, make any commitment that extends beyond the end of
the Season in or prior to which such Alternate Site Condition occurs, provided, however, IMCF
shall use its reasonable best efforts to cause the Team to play its Home Matches at the Stadium as
soon as possible after the Alternate Site Condition has ended.
4.2 Within thirty (30) days of the commencement of an Alternate Site
Condition, IMCF shall give the City a written notice setting forth the date it reasonably believes
such Alternate Site Condition will terminate (the "Proposed Date"). If the City objects to the
Proposed Date, the City and IMCF shall use good faith efforts to resolve such dispute within the
next five (5) business days. In the event the Parties are unable to resolve such dispute by mutual
agreement within such five (5) business day period, such dispute shall be resolved in accordance
with Section 6. The City and IMCF shall consult, and reasonably cooperate, with one another
following any Alternate Site Condition so that IMCF can most effectively find and contract for an
alternate site during the duration of such Alternate Site Condition.
4.3 IMCF shall use reasonable best efforts to mitigate and overcome any
Alternate Site Condition that results in the Team's Home Matches not being played at the Stadium
to the extent such Alternate Site Condition is within the reasonable control of IMCF.
5. Remedies.
5.1 No Adequate Remedy. IMCF (a) acknowledges that the Non -Relocation
Covenants are an essential part of the bargain and consideration of the Lease Agreements and are
necessary to protect the business and goodwill of the City; (b) recognizes that the Stadium is being
constructed on City land that is being granted exclusively for the building of the Stadium for the
purpose of the Team playing its Home Matches thereon during the Non -Relocation Term to the
extent required by this Agreement; (c) recognizes that having the Team play its Home Matches in
the Stadium throughout the Non -Relocation Term to the extent required by this Agreement
provides a unique value to City, including generating new jobs, additional revenue sources and
economic development and increased tourism for the City; and (d) acknowledges and agree that
any breach by IMCF of the Non -Relocation Covenants shall cause irreparable and continual harm
to the City, and that damages for a default under such Non -Relocation Covenants cannot be
estimated with any degree of certainty and that monetary damages cannot fairly or adequately
compensate the City for a breach of such Non -Relocation Covenants. Further, the Parties
acknowledge that (i) IMCF's obligations under the Non -Relocation Covenants are unique, are the
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essence of the bargain and are essential consideration for this Agreement and the other agreements
being entered into by the Parties related to the Stadium, including, but not limited to the Lease
Agreements; and (ii) the determination of damages caused by a Non -Relocation Default, the
effects of which would be suffered by the City and the community would be difficult, if not
impossible, to ascertain. Therefore, the Parties acknowledge and agree that there exists no adequate
and complete remedy at law to enforce this Agreement against IMCF and that equitable relief by
way of specific performance or injunction is the only appropriate remedy for the enforcement of
this Agreement, notwithstanding the provisions for Liquidated Damages provided in Section 5.3.
5.1.1 For the avoidance of doubt, MFP hereby covenants that it will not
assert in any proceeding that the City has an adequate remedy at law for a breach of the Non -
Relocation Covenants.
5.2 Declaratory or Injunctive Relief.
5.2.1 Upon the occurrence of a Non -Relocation Default, the City shall be
entitled to seek injunctive relief and supplemental remedies prohibiting or mandating action by
IMCF in accordance with, or declaratory relief with respect to, the Non -Relocation Covenants.
5.2.2 IMCF agrees that, in the event of any of the actual or threatened (in
the reasonable opinion of the City) breach by IMCF of any one of the Non -Relocation Covenants
(i) the City shall be entitled to seek and obtain, a temporary restraining order, together with
temporary, preliminary and permanent injunctive or other equitable relief, from any court of
competent jurisdiction, to restrain or enjoin any actual or threatened breach by IMCF of any Non -
Relocation Covenant without the necessity of posting a bond or other security and without any
further showing of irreparable harm, balance of harms, consideration of the public interest or the
inadequacy of monetary damages as a remedy, (ii) the administration of an order for injunctive
relief would not be impractical and, in the event of any breach of any Non -Relocation Covenant
by IMCF, the balance of hardships would weigh in favor of entry of injunctive relief, and (iii) the
City may enforce any Non -Relocation Covenant contained in this Agreement through specific
performance and supplemental remedies.
5.2.3 Subject to Applicable Laws, the Parties and MFP hereby agree and
irrevocably stipulate that (a) the rights of the City to injunctive relief pursuant to this Non -
Relocation Agreement shall not constitute a "claim" pursuant to Section 101(5) of the United
States Bankruptcy Code (the "Bankruptcy Code") and shall not be subject to discharge or
restraint of any nature in any bankruptcy proceeding involving IMCF, (b) this Agreement is not
an "executory contract" as contemplated by Section 365 of the Bankruptcy Code, and (c) action(s)
taken by the City pursuant to this Section 5.2 shall not in any way prejudice any other rights or
remedies that the City may have under Section 5.3 or Section 5.5 of this Agreement if a court of
competent jurisdiction fails to provide injunctive or other equitable relief prohibiting IMCF's
violation of the Non -Relocation Covenants or, in the case of the remedies set forth in Section 5.5,
fails to award Liquidated Damages under Section 5.3.
5.3 Liquidated Damages; Lease Rights and Revenues. IMCF and MFP
acknowledge and agree that, in the event equitable relief is not granted by a court of competent
jurisdiction for any reason or is otherwise unavailable following the occurrence of a Non-
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Relocation Default, the remedies described in this Section 5.3 are the next most appropriate
remedy. The Parties stipulate that the losses associated with a breach of the Non -Relocation
Default are hard to fix and not readily ascertainable, involving losses that are hard to calculate and
costs that are not readily apparent, thereby causing the Parties to agree on stipulated damages.
Therefore, the City's sole remedy in the event of a Non -Relocation Default during the Non -
Relocation Term, and the failure of any court to grant the equitable relief described in Section 5.2,
is that IMCF shall pay the Liquidated Damages to the City. If IMCF fails to pay the Liquidated
Damages within seven (7) business days after written notice from the City to IMCF demanding
payment thereof, the City shall have the right to demand payment of the Liquidated Damages from
MFP and MFP hereby agrees to absolutely, unconditionally (subject only to such defenses, if any,
held by IMCF with respect to payment) and irrevocably pay to the City the Liquidated Damages
within seven (7) business days of MFP receiving written notice from the City demanding payment
thereof. For avoidance of doubt, (i) nothing herein (including but not limited to the payment of the
Liquidated Damages) shall grant MFP the right to fail to make any and all payments in full of the
Rent (as defined in the Stadium Lease) when due nor the right to terminate the Stadium Lease, and
(ii) except as expressly set forth herein, neither IMCF nor MFP shall have the right to offset any
amount of Liquidated Damages for any reason whatsoever. Notwithstanding anything to the
contrary herein, the Parties and MFP acknowledge that a failure by IMCF and MFP to pay the
Liquidated Damages when due shall constitute a default under this Agreement and the Stadium
Lease that is separate and distinct from the Non -Relocation Default, and therefore, upon a failure
by MFP to pay Liquidated Damages, the City shall be entitled to seek such relief as permitted
under the Stadium Lease for a Monetary Default thereof.
5.4 Other Breach; Actual Damages. In the event of any breach of this
Agreement by IMCF (other than a Non -Relocation Default subject to the remedies set forth in
Section 5.2 or, if applicable, Section 5.3), or in the event of a Non -Relocation Default for which,
notwithstanding the intent of the Parties, the City is unable to obtain the relief set forth in Section
5.2 or, if applicable, Section 5.3, the City shall have the right (i) to institute any and all proceedings,
actions, or claims permitted by law or equity to recover any and all amounts necessary to
compensate the City for all damages proximately caused by IMCF's breach under this Agreement,
and (ii) to institute any and all proceedings, actions, or claims permitted by law or equity to compel
specific performance with respect to IMCF's obligations under this Agreement and one or more
actions to seek to obtain a temporary restraining order, together with such other temporary,
preliminary and permanent injunctive or other equitable relief, from any court of competent
jurisdiction capable of issuing or granting such relief, to compel IMCF to comply with or refrain
or cease from breaching or violating the terms, covenants and conditions, in addition to any other
remedies available, if any, against MFP for failure to pay the Liquidated Damages as set forth in
the Stadium Lease. In addition to the foregoing, if MFP fails to make payment of the Liquidated
Damages as and when required under Section 5.3, then such amount shall be deemed additional
rent under the Stadium Lease and the City shall be entitled to the remedies set forth in the Stadium
Lease with respect thereto.
5.5 Termination.
5.5.1 The entry of a Final Order finding that IMCF breached the Non -
Relocation Covenant set forth in Section 2.2 as a result of a permanent relocation of the Team (a
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"Final Notice") shall terminate this Agreement, subject to IMCF's continuing obligation to abide
by the remedies set forth in such Final Order.
5.5.2 This Agreement, and all obligations of the Parties and MFP under
this Agreement, shall terminate without further action by, or liability to, any Party upon the
expiration or termination of the Stadium Lease for any reason. Except for the provisions of this
Agreement that are expressly to survive termination, in the event of a termination of this
Agreement under Section 5.5, all obligations of the Parties and MFP under this Agreement shall
also automatically terminate, except for those obligations which by their express terms survive the
termination or expiration of this Agreement, as discussed herein.
5.5.3 Termination of this Agreement, shall not alter any existing claim of
any Party for breaches of such agreement(s) occurring prior to such termination and the obligations
of the Parties and MFP thereto with respect to such existing claims occurring prior to such
termination shall survive termination.
6. Governing Law; Interpretation. This Agreement shall be construed and enforced
in accordance with the laws of the State of Florida. The Parties and MFP hereby agree that venue
and jurisdiction for all legal proceedings arising out of or relating to this Agreement shall be
exclusively in Miami, Florida. The headings of sections and paragraphs in this Agreement are for
convenience only and shall not be construed in any way to limit or define the content, scope or
intent of the provisions hereof. As used in this Agreement, the singular shall include the plural,
and masculine, feminine and neuter pronouns shall be fully interchangeable where the context so
requires. Time is of the essence of this Agreement.
7. Entire Agreement. This Agreement constitutes the sole and entire agreement
among the Parties and MFP with respect to this Agreement and supersedes all prior written or oral
agreements among them relating to that subject matter. Waiver by any Party of any breach of any
provision of this Agreement shall not be considered as or constitute a continuing waiver or a waiver
of any other breach of the same or other provision of this Agreement.
8. Representations and Warranties.
8.1 Subject to the assumption that this Agreement is in compliance with the
Charter Amendment and the Referendum, as of the Execution Date, each of IMCF and MFP hereby
represent and warrant to the City, each solely for itself, as follows:
8.1.1 Each of IMCF and MFP have obtained all requisite authorizations
and consents to enter into this Agreement with the City of Miami and to consummate the
transactions contemplated hereby, and the execution, delivery and performance of this Agreement
and other agreements and instruments referred to herein and the consummation of the transaction
contemplated herein by IMCF and MFP will not contravene, conflict with, violate, nor constitute
a default under (i) the certificate of existence, bylaws, or operating agreements of IMCF or MFP,
(ii) any provision of MLS Rules and Regulations, (iii) any law, order, rule, regulation, writ,
injunction or decree now in effect of any government, governmental instrumentality or court
having jurisdiction over IMCF or MFP, or (iv) any loan agreement or other contractual restriction
binding on or affecting IMCF or MFP or any of their respective property or assets, except where
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any of the foregoing could not reasonably be expected to have a material adverse effect on IMCF
or MFP;
8.1.2 IMCF and MFP are not aware of, and have not received any notice
of any actual, pending or threatened violation, proceeding or investigation, by any organization,
person, individual, or governmental agency, affecting IMCF or MFP, which may adversely affect
the ability of IMCF or MFP to fulfill and perform their respective obligations and their respective
other undertakings under this Agreement. IMCF and MFP are not in default with respect to any
judgment, order, injunction or decree of any Governmental Authority which is in any respect
material to the respective transactions contemplated in and by this Agreement, and, to the best of
IMCF's and MFP's respective knowledge, there is no current threat of any litigation or other legal
action being filed against IMCF or MFP which would affect their respective ability to perform
their obligations hereunder;
8.1.3 IMCF and MFP are limited liability companies duly organized,
validly existing, and in good standing under the laws of the State of Delaware, and qualified to do
business in the State of Florida;
8.1.4 IMCF is a member in good standing of MLS and is in compliance
in all material respects with all applicable MLS Rules and Regulations which are relevant to the
transactions contemplated herein;
8.1.5 IMCF and MFP and the individuals executing this Agreement on
behalf of IMCF and MFP and the other documents and instruments referenced herein or otherwise
executed and delivered in connection herewith on behalf of IMCF and MFP have the legal power,
right and authority to bind IMCF and MFP under the terms and conditions stated herein.
8.2 Subject to the assumption that this Agreement is in compliance with the
Charter Amendment and the Referendum, the City makes the following representations, covenants
and warranties:
8.2.1 The City is a municipal corporation of the State of Florida and has
the governmental power and authority to enter into this Agreement and, to the City's knowledge,
perform its obligations under this Agreement, and the parties signing or joining in this Agreement
on behalf of the City have the governmental authority to bind the City and to enter into this
transaction.
8.2.2 This Agreement has been duly authorized by all necessary
governmental action on the part of the City and does not require notice to or the consent or approval
of any trustee or holder of any indebtedness or any other Person known to the City.
8.2.3 Neither the execution, delivery or performance of this Agreement
by the City, nor, to the City's knowledge, the consummation by the City of the transactions
contemplated hereby, nor compliance by the City with the provisions hereof conflicts or will
conflict with, nor results in or will result in the breach of any provisions of, the organizational
documents of the City, or any indenture, mortgage, contract, lease or other instrument to which
the City is a party.
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8.2.4 There is no action, suit, investigation or proceeding pending or, to
the City's knowledge, threatened against the City before any court, arbitrator or administrative
body or Governmental Agency and which, if decided adversely to the City's interest, would have
an adverse effect upon the ability of the City to perform its obligations under this Agreement.
9. Successors and Assigns: Third Party Beneficiaries.
9.1 This Agreement shall bind IMCF and MFP (as with respect solely to
Sections 5, 6, 8 through 10 and 12 through 18) and their assigns and successors; provided that
IMCF and MFP shall not be entitled to transfer or assign their respective obligations hereunder
without the prior written consent of the City, which consent shall be in its sole discretion and may
be conditioned upon IMCF or MFP, as the case may be, remaining liable under this Agreement
with respect to their respective obligations if the City is not reasonably satisfied with the
creditworthiness of the transferee; provided, however, that if MLS approves the transfer or
assignment, whether via merger, asset acquisition or otherwise, of the Team Rights to any other
entity (an "IMCF Transferee"), then such IMCF Transferee shall automatically, without the need
for any prior written consent of or any other action by the City, be assigned IMCF's interest in this
Agreement, such IMCF Transferee shall assume, in a writing reasonably satisfactory to the City,
all of the obligations of IMCF under this Agreement and IMCF shall be relieved of all obligations
under this Agreement. IMCF shall provide the City written evidence of MLS approval of an IMCF
Transferee within five (5) business days after IMCF's receipt thereof.
9.2 This Agreement shall bind the City and its respective assigns and
successors; provided that the City may not transfer or assign this Agreement or any of its respective
rights and obligations hereunder without the prior written consent of IMCF and MFP, which
consents shall not be unreasonably withheld, conditioned, refused, or delayed.
9.3 Nothing in this Agreement, express or implied, is intended to (a) confer
upon any Person other than MLS, the Parties and their permitted successors and assigns any rights
or remedies under or by reason of this Agreement as a third -party beneficiary or otherwise; or (b)
authorize anyone not a party to this Agreement (other than MLS) to bring or maintain an action
pursuant to or based upon this Agreement. MLS is an intended third party beneficiary of this
Agreement, provided that, for the avoidance of doubt, in no event shall MLS have any liability or
obligations hereunder.
10. Amendments; Waivers. No modification, amendment or waiver of this
Agreement or of any of its conditions or provisions shall be binding unless such modification,
amendment or waiver is in writing and signed by the Parties and MFP, and that all necessary MLS
approvals have been obtained in advance thereof. No failure by either Party to insist upon the strict
performance of any of the terms of this Agreement or to exercise any right or remedy consequent
upon a breach thereof shall constitute a waiver of any such breach or of any of the terms of this
Agreement. None of the terms of this Agreement to be kept, observed or performed by IMCF or
MFP, and no breach thereof, shall be waived, altered or modified except by a written instrument
executed by the non -breaching Party. No waiver of any breach shall affect or alter this Agreement,
but each of the terms of this Agreement shall continue in full force and effect with respect to any
other then existing or subsequent breach thereof. No waiver of any default of any Party or MFP
hereunder shall be implied from any omission by the other Party to take any action on account of
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such default, and no express waiver shall affect any default other than the default specified in the
express waiver and then only for the time and to the extent therein stated. One or more waivers by
any Party shall not be construed as a waiver of a subsequent breach of the same covenant, term or
condition.
11. Indemnification by IMCF. IMCF shall indemnify, defend (at their sole cost and
expense) and hold harmless the City and each and all of its respective directors, officers,
employees, agents, licensees, volunteers, independent contractors and consultants or any of them
as their interests may appear (collectively, "Government Indemnitees"), of, from and against all
claims, actions, fines, claim costs, charges and expenses, liabilities, suits, obligations, demands,
actions, settlements, and judgments recovered from any of them, including attorneys' fees incurred
to defend such claims in administrative, trial, appellate and all other proceedings asserted by third
parties against the City (collectively, "Losses"), to the extent such Losses arise from any breach
of this Agreement by IMCF. To the extent applicable, any such indemnification shall be provided
in accordance with the indemnification procedures set forth in Section 8.2 of the Stadium Lease.
IMCF expressly understand and agree that any insurance protection required by this Agreement or
otherwise provided by IMCF shall in no way limit the responsibility to indemnify, keep and save
harmless and defend the Government Indemnitees as herein provided.
12. Sovereign Immunity. Notwithstanding any other provision of this Agreement,
nothing herein shall be construed as a waiver by the City of any limitations of liability applicable
to the City as set forth in Section 768.28, Florida Statutes or other applicable law.
13. Nonrecourse Liability of IMCF and MFP Personnel. Notwithstanding and
prevailing over any contrary provision or implication in this Agreement and except for their
criminal acts with respect to this Agreement (i.e., acts which would constitute crimes were they
prosecuted for and convicted of such acts), the individual officers, directors, partners, shareholders,
members, employees and agents of IMCF and MFP and their respective Affiliates (the
"Personnel") shall not in any way be liable under or with respect to this Agreement; no deficiency
or other monetary or personal judgment of any kind shall be sought or entered against any of the
Personnel with respect to liability under or with respect to this Agreement; no judgment with
respect to liability under or with respect to this Agreement shall give rise to any right of execution
or levy against the assets of any of the Personnel; and the liability of IMCF and MFP under this
Agreement shall be limited to the assets of IMCF and MFP.
14. Nonrecourse Liability of City Personnel. Notwithstanding and prevailing over
any contrary provision or implication in this Agreement, no member, elected or appointed official,
officer, employee, agent, independent contractor or consultant of the City shall be liable to IMCF
or MFP, or any successor in interest to IMCF or MFP, in the event of any default or breach by the
City for any amount which may become due to IMCF or MFP or any successor in interest to IMCF
or MFP under this Agreement, or on any other obligation under the terms of this Agreement, except
for their criminal acts with respect to this Agreement (i.e., acts which would constitute crimes were
they prosecuted for and convicted of such acts).
15. Notices. Any notice, consent or other communication under this Agreement shall
be in writing and shall be considered given when delivered in person or sent by electronic mail
(provided that any notice sent by electronic mail shall simultaneously be sent personal delivery,
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overnight courier or certified mail as provided herein), one (1) business day after being sent by
reputable overnight carrier, or three (3) business days after being mailed by certified mail, return
receipt requested, to the Parties and MFP at the addresses set forth below (or at such other address
as a Party or MFP may specify by notice given pursuant to this Section 15 to the other Parties and
MFP):
To IMCF and/or MFP:
With a copy to:
To the City:
With a copy to:
Inter Miami CF, LLC
800 Douglas Road
7t' Floor
Coral Gables, Florida 33134
Attn: Pablo A. Alvarez.
Miami Freedom Park, LLC
800 Douglas Road
12th Floor
Coral Gables, Florida 33134
Attn: Pablo A. Alvarez
Holland & Knight, LLP
701 Brickell Avenue, Suite 3300
Miami, Florida 33131
Attn: Richard Perez
City Manager
444 SW 2nd Avenue, loth Floor
Miami, Florida 33130
City Attorney
444 SW 2nd Avenue, 9th Floor
Miami, Florida 33130
O'Melveny & Myers LLP
Times Square Tower
7 Times Square
New York, NY 10036
Attention: Irwin Raij, Esq.
E-mail: iraij@omm.com
17. Severability. Whenever possible, each provision of this Agreement shall be
interpreted in such a manner as to be effective and valid under any applicable Law, but if any
provision of this Agreement is held to be prohibited by or invalid under any applicable Law, the
Parties and MFP shall, to the extent possible, negotiate a revised provision which (a) complies
with Applicable Law, (b) does not alter any of the substantive rights, obligations or liabilities of
any party under this Agreement, and (c) confers upon the Parties the benefits intended to be
conferred by the invalid provision; and the remaining provisions of this Agreement, if capable of
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substantial performance, shall be enforced as if this Agreement was entered into without the invalid
provision.
18. Counterparts. If this Agreement is executed in several counterparts, each of those
counterparts shall be deemed an original, and all of them together shall constitute one and the same
instrument.
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IN WITNESS WHEREOF, this Agreement has been executed by duly authorized officers of
IMCF and MFP, and duly authorized officials of the City, each of whom hereby represents and
warrants that he has the full power and authority to execute this Agreement in such capacity, all
as of this [ ] day of [ ], 20.
INTER MIAMI CF, LLC, a Delaware limited liability
company
By:
Name:
Title:
STATE OF FLORIDA )
) ss:
COUNTY OF MIAMI-DADE )
The foregoing instrument was acknowledged before me by means of ❑ physical presence
or ❑ online notarization this day of , 20 by
as , of Inter Miami CF, LLC, a Delaware limited liability company, on
behalf of the company, ❑ who is personally known to me or ❑ who has produced
as identification.
[NOTARIAL SEAL]
Print Name:
Notary Public,
Commission #:
My Commission Expires:
[SIGNATURES CONTINUED ON NEXT PAGE]
4297/49021-074 CURRENT/126343891v2
STATE OF FLORIDA
COUNTY OF MIAMI-DADE
The foregoing instrument
or ❑ online notarization this
as , of Miami
on behalf of the company, ❑
MIAMI FREEDOM PARK, LLC, a Delaware limited
liability company, but only with respect to Sections 5, 6, 8
through 10, and 12 through 18 of this Agreement
By:
Name:
Title:
) ss:
)
was acknowledged before me by means of ❑ physical presence
day of , 20 by
Freedom Park, LLC, a Delaware limited liability company,
who is personally known to me or ❑ who has produced
as identification.
[NOTARIAL SEAL]
Print Name:
Notary Public,
Commission #:
My Commission Expires:
[SIGNATURES CONTINUED ON NEXT PAGE]
CITY OF MIAMI, a municipal corporation of the State
of Florida
By:
Name:
Title:
ATTEST:
By:
Todd B. Hannon
City Clerk
APPROVED AS TO LEGAL FORM &
CORRECTNESS:
By:
Victoria Mendez
City Attorney
STATE OF FLORIDA
COUNTY OF MIAMI-DADE
The foregoing instrument was acknowledged before me by means of n physical presence
or n online notarization, this day of , by Arthur Noriega, as the City
Manager of the City of Miami, a municipal corporation of the State of Florida, on behalf of the
municipal corporation, who is personally known to me or who has produced
as identification.
[NOTARIAL SEAL]
Print Name:
Notary Public,
Commission #:
My Commission Expires: