HomeMy WebLinkAbout25873AGREEMENT INFORMATION
AGREEMENT NUMBER
25873
NAME/TYPE OF AGREEMENT
YAEGER PLAZA PARTNERS, LLC
DESCRIPTION
GROUND LEASE/1199 NW 62 ST/FILE ID: 17698/R-25-
0189/MATTER ID: 25-1486
EFFECTIVE DATE
ATTESTED BY
TODD B. HANNON
ATTESTED DATE
12/11/2025
DATE RECEIVED FROM ISSUING
DEPT.
12/17/2025
NOTE
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GROUND LEASE
(YAEGER PLAZA)
This Ground -Lease (this "Ground Lease") is made as of , 2025 (the
"Effective Date"), between CITY OF MIAMI, a Florida municipal corporation ("Landlord" or
"City", as applicable), and YAEGER PLAZA PARTNERS, LLC, a Florida limited liability
company ("Tenant").
PREAMBLE
A. City is the owner of certain real property located at 1199 Northwest 62 Street, City
of Miami, Miami -Dade County, Florida, and described on Exhibit "A" attached hereto and made
a part hereof (the "Premises"), which City desires to have developed with the use of private and/or
public funds.
B. Tenant has proposed to newly construct on the site approximately one hundred
thirty-five (135) affordable housing units, a portion of which shall be project -based Section 8 units,
to be known as "Yaeger Plaza" that will increase supply of rental housing units for low-income,
family, elderly, disabled, special needs or other population and uses acceptable to the City (the
"Project"), on the Premises.
C. On June 17, 2025, the Miami City Commission duly adopted its Resolution No. R-
25-0189 (the "Resolution"), approving the lease by the City, as Landlord, of the Premises to
Tenant in accordance with the terms set forth in this Ground Lease.
LEASE
In consideration of the foregoing preamble, mutual covenants and other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, Landlord and Tenant,
with the intent to be legally bound, hereby agree as follows:
ARTICLE I - GRANT OF LEASED PREMISES; TERM; TITLE
1.01 Grant of Leased Premises. Landlord hereby grants and demises the Premises to
Tenant to be effective as of the Closing Date and to have and to hold for a term commencing on
the Closing Date (as defined below) and expiring on the ninety-ninth (99th) anniversary thereof
(the "Lease Term"), unless sooner terminated as provided herein. Landlord shall deliver exclusive
possession of the Premises to the Tenant on the date on which Tenant closes on its construction
financing and equity syndication (the "Closing Date"), at which time Tenant shall take possession
of the Premises (the "Commencement Date").
1.02 Premises. The Premises consists of those certain tracts or parcels of land located
at 1199 Northwest 62 Street, City of Miami, Miami -Dade County, Florida, as more particularly
described in Exhibit A attached hereto and incorporated herein, together with all appurtenances,
easements and rights of way related thereto and the improvements, if any, thereon.
1.03 Title Matters. Tenant shall have the right to order a title insurance commitment on
the Premises, within the ninety (90) days following the Effective Date. In the event the title
insurance commitment shall reflect encumbrances or other conditions impairing marketable title
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("Defects"), or if any update or continuation of the title insurance commitment obtained by Tenant
before the Commencement Date in connection with its construction financing or equity
syndication reveals any new Defects, then, Landlord, upon notification of the Defects, shall
immediately and diligently proceed to cure same and shall have a reasonable time within which to
cure the Defects. If, after the exercise of all reasonable diligence, Landlord is unable to clear the
Defects, then Tenant may accept the Defects or Tenant may terminate the Lease and the parties
shall be released from further liability.
1.03 Construction of Improvements. The Project shall be constructed in accordance with
requirements of all laws, ordinances, codes, orders, rules and regulations (collectively "Applicable
Laws") of all governmental entities having jurisdiction over the Project (collectively
"Governmental Authorities"), including, but not limited to, the City, Miami -Dade County, the
State of Florida, and the United States Department of Housing and Urban Development ("HUD").
Tenant shall apply for and prosecute, with reasonable diligence, all necessary approvals, permits
and licenses required by applicable Governmental Authorities for the construction, development,
zoning, use and occupation of the Project. The City agrees to cooperate with and publicly support
Tenant's effort to obtain such approvals, permits and licenses, provided that such approvals,
permits and licenses shall be obtained at Tenant's sole cost and expense.
(a) Construction of the Project shall be performed in a good and workmanlike
manner and in conformity with all Applicable Laws.
(b) It is understood that a material inducement for the City entering into this
Lease is the expectation, agreement and requirement that the Premises, will include the to -be
constructed Improvements, during the entire Term, consisting of approximately one hundred
thirty-five (135) multifamily residential units as more fully described and/or depicted on the Site
Plan attached hereto as Exhibit "B" (collectively, the "Improvements").
(c) Landlord and Tenant agree that Tenant shall be accorded all benefits and
burdens of ownership of the Premises for as long as this Lease shall remain in effect. At all times
during the term of this Lease, the Improvements shall be owned by the Tenant and, during the
term, the Tenant alone shall be entitled to all of the tax attributes of ownership including, without
limitation, the right to claim depreciation or cost recovery deductions, the right to claim housing
tax credits described in Section 42 of the Internal Revenue Code of 1986, as amended (the "Code")
and the right to amortize capital costs and to claim any other federal tax benefits attributable to the
Improvements.
1.04 Low -Income Housing Tax Credits. The Project is, or will be, subjected to and
benefited by the terms and conditions of the low-income housing tax credit requirements as set
forth in the Code, and as required by HUD or the Florida Housing Finance Corporation during the
appropriate extended use period.
1.05 Closing on Construction Financing. Subject to Unavoidable Delays, in the event
Tenant shall not close on the construction financing, including syndication of the housing tax
credits, by December 18, 2025, either party shall have the right to terminate this Lease (and such
event shall not be deemed an Event of Default) and Landlord and Tenant shall have no further
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obligation to each other under this Lease, except as to such matters as expressly survive
termination, by delivering written notice to the other party.
1.06 Unavoidable Delays. Other than Tenant's obligation to pay any amounts due to
Landlord provided for in this Lease or to maintain all insurance required by this Lease, the party
obligated to perform under this Lease shall not be required to perform and shall be entitled to a
reasonable extension of time because of its inability to meet an obligation or a time frame or
deadline specified in this Lease, where such failure or inability to perform is caused by an
Unavoidable Delay. "Unavoidable Delays" shall mean delays beyond the control of a party
required to perform, such as delays due to strikes; a natural catastrophe, such as an earthquake,
hurricane, flood or tornado, that could not have been prevented; fires; enemy action; civil
disturbance; sabotage; restraint by court or public authority; litigation or formal administrative
challenges by third parties to the execution or performance of this Lease or the procedures leading
to; its execution or to the process of entitlement for the Premises; pandemic or epidemic or related
governmental shutdown or slowdown affecting the Tenant's ability to obtain entitlements, permits,
approvals or any required consents, or to assemble a capable workforce for the commencement or
completion of Construction or to obtain materials or services; or moratoriums. Notwithstanding
anything in this Lease to the contrary, if a party shall be delayed in the performance of any act
required under this Lease by reason of any Unavoidable Delay, and the party then provides notice
of the Unavoidable Delay to the other party within ten days after its occurrence, performance of
the act shall be excused for the period of the delay and the period for the performance of the act
shall be extended for a reasonable period, in no event to exceed the period equivalent to the period
of the delay.
ARTICLE II - REPRESENTATIONS AND WARRANTIES
2.01 Landlord's Representations and Warranties. Landlord hereby represents and
warrants to Tenant as follows:
(a) Title. Landlord owns fee simple, good and marketable title to the land
underlying the Premises and there are no mortgages or other encumbrances affecting Landlord's
fee simple title to the Premises. Landlord will not mortgage Landlord's fee simple title to the
Premises without the prior written consent of any Permitted Leasehold Mortgagee.
(b) Landlord and Approvals. (i) Landlord has full right, power, and authority
to -make, execute, deliver, and -perform its obligations under- this Ground Lease; (ii) Landlord has
obtained and received all required and necessary consents and approvals to enter into this Ground
Lease with Tenant, including the adoption of the Resolution by the Miami City Commission,
which Resolution remains in full force and effect and has not been rescinded or amended in any
manner adverse to Tenant; and (iii) the entry by Landlord into this Ground Lease with Tenant and
the performance of all of the terms, provisions, and conditions contained herein does not and will
not, violate or cause a breach or default under any agreement or obligation to which Landlord is a
party or by which it is bound.
(c) Assessments. There are no unpaid special assessments of which Landlord
has received notice for sewer, sidewalk, water, paving, gas, electrical, or utility improvements or
other capital expenditures, matured or unmatured, affecting the Premises.
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(d) Contractual Obligations. Landlord is not obligated under any contract, lease
or agreement, materially affecting the ownership, use, operation, management, maintenance, or
lease of the Premises.
(e) Full Disclosure. No representation, statement, or warranty by Landlord
contained in this Ground Lease or in any exhibit attached hereto contains or will contain any untrue
statement of a material fact or omits a material fact necessary to make the statement of fact therein
recited not misleading.
(f) Litigation. There is no action, suit, litigation, or proceeding pending or to
Landlord's knowledge, threatened against Landlord that could prevent or impair Landlord's entry
into this Ground Lease or performance of its obligations hereunder.
(g) Environmental. There are, to the actual knowledge of Landlord, no
Hazardous Substances located in, on or under the Premises except as previously disclosed in
writing by Landlord to Tenant. For the purposes hereof "Hazardous Substances" includes any
substances, chemicals, materials or elements that are prohibited, limited or regulated by any and
all federal, state or commonwealth, and local laws, regulations, statutes, codes, rules, resolutions,
directives, orders, executive orders, consent orders, guidance from regulatory agencies, policy
statements, judicial decrees, standards, permits, licenses and ordinances, or any judicial or
administrative interpretation of, any of the foregoing, pertaining to the protection of land, water,
air, health, safety or the environment whether now or in the future enacted, promulgated or issued
(the "Environmental Laws"), or any other substances, chemicals, materials or elements that are
defined as "hazardous" or "toxic," or otherwise regulated under the Environmental Laws, or that
are known or considered to be harmful to the health or safety of occupants or users of the Premises.
The term Hazardous Substances shall also include, without limitation, any substance, chemical,
material, or element (i) defined as a 'hazardous substance' under the Comprehensive
Environmental Response, Compensation and Liability Act of 1980 (42 USC §§ 9601, et seq.), as
amended by the Superfund Amendment and Reauthorization Act of 1986, and as further amended
from time to time and regulations promulgated thereunder; (ii) defined as a "regulated substance"
within the meaning of Subtitle I of the Resource Conservation and Recovery Act (42 USC §6991-
6991i), as amended from time to time and regulations promulgated thereunder; (iii) designated as
a "hazardous substance" pursuant to Section 311 of the Clean Water Act (33 USC § 1321), or listed
pursuant to Section 307 of the Clean Water Act (33 USC §1317); (iv) defined as "hazardous,"
"toxic," or otherwise regulated under any Environmental Laws adopted by the state in which the -
Premises are located, or its agencies or political subdivisions; (v) which-is•petroleum, petroleum
products or derivatives or constituents thereof, (vi) which is asbestos or asbestos -containing
materials; (vii) the presence of which requires notification, investigation or remediation under any
Environmental Laws or common laws; (viii) the presence of which on the Premises causes or
threatens to cause a nuisance upon the Premises or to adjacent properties or poses or threatens to
pose a hazard to the health or safety of persons on or about the Premises; (ix) the presence of which
on adjacent properties would constitute a trespass by the owner; (x) which is urea formaldehyde
foam insulation or urea formaldehyde foam insulation -containing materials; (xi) which is lead -
based paint or lead -based paint -containing materials; (xii) which are polychlorinated biphenyls or
polychlorinated biphenyl -containing materials; (xiii) which is radon or radon -containing or
producing materials; or (xiv) which by any laws of any governmental authority requires special
handling in its collection, storage, treatment or disposal. Notwithstanding any contrary provision
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of this paragraph (g), the term Hazardous Substances shall not apply to such substances that would
otherwise meet such definition as long as (i) the use of such substance in, on or under the Premises
is in compliance with all Environmental Laws and (ii) such substance is used in de minimis
quantities incidental to the operation of the Premises.
2.02 Tenant's Representations and Warranties. Tenant hereby warrants and represents
to Landlord as follows:
(a) Existence. Tenant is a limited liability company existing under the laws of
the State of Florida.
(b) Authority. Tenant (i) has the power and authority to own its properties and
assets, to conduct its business as presently conducted and to execute, deliver, and perform its
obligations under this Ground Lease and (ii) has obtained all company authorizations and
approvals which are necessary for it to execute, deliver, and perform its obligations under this
Ground Lease.
(c) Binding Obligation. This Ground Lease has been duly and validly executed
and delivered by Tenant and constitutes a legal, valid, and binding obligation of Tenant
enforceable in accordance with its terms.
(d) Litigation. There is no pending or, to the best of Tenant's knowledge,
threatened investigation, action, or proceeding by or before any court, any governmental entity or
arbitrator which (i) questions the validity of this Ground Lease or any action or act taken or to be
taken by Tenant pursuant to this Ground Lease or (ii) is likely to result in a material adverse change
in the authority, property, assets, liabilities or condition, financial or otherwise, of Tenant which
will materially impair its ability to perform its obligations hereunder.
(e) Full Disclosure. No representation, statement, or warranty by Tenant
contained in this Ground Lease or in any exhibit attached hereto contains any untrue statement of
a material fact or omits a material fact necessary to make such statement of fact therein not
misleading.
ARTICLE III — RENT
3.01 Ground Rent. Tenant shall pay to Landlord a one-time payment of base rent ("Base
Rent") for the Lease Term in the amount of [One Hundred Dollars ($100.00)] 1, to be delivered to
Landlord by Tenant on the Effective Date. Tenant acknowledges and agrees that the construction
of affordable housing on the Premises is a material inducement for Landlord to offer the Premises
on the terms set forth herein to Tenant, and but for Tenant's promise to provide such housing the
terms contained herein would not be offered.
3.02 Payments by Tenant. Other than as expressly set forth in this Ground Lease,
commencing on the Commencement Date, all costs, expenses, liabilities, charges or other
deductions whatsoever with respect to the Premises and the Improvements or with respect to any
1 NTD: Subject to Investor confirmation.
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interest of Landlord in the Premises, the Improvements, or this Ground Lease shall be the
responsibility of Tenant.
3.03 Control and Liabilities. Landlord acknowledges and agrees that Landlord is and
shall be, at all times prior to the Commencement Date, in use, control and occupancy of the
Premises and all improvements located thereon. In connection with the foregoing, Landlord further
acknowledges and agrees that Landlord is responsible for maintaining, repairing, securing,
supervising and managing the Premises, including with respect to any third parties (e.g., tenants)
located in the Premises. All debts, obligations and liabilities arising prior to the Commencement
Date in the course of business of the Premises or otherwise in connection with the use, occupancy
or operation thereof (including, but not limited to, all such liabilities for utilities, taxes and other
costs and expenses related to the Premises; all such liabilities under or with respect to
Environmental Laws or claims; all such liabilities under or with respect to any personal injury
claims; and any and all obligations related to the operation, maintenance, repair, security,
supervision and management of the Premises) are and shall be the obligation of Landlord, and
Tenant shall not be liable or otherwise responsible for any such debts, obligations or liabilities or
have any duties to the Landlord or any third parties with respect to the use, occupancy or operation
of the Premises.
ARTICLE IV - TAXES, OPERATING EXPENSES,
INSURANCE REQUIREMENTS, AND RESTORATION
4.01 Taxes. Tenant will pay any payments in lieu of real estate taxes, any real estate
taxes and personal property taxes and assessments assessed, levied, confirmed, or imposed on the
Premises or the Improvements during the Lease Term whether or not now customary or within the
contemplation of Landlord and Tenant. Tenant will pay all real estate transfer taxes that are
required in connection with this Ground Lease. Landlord shall pay all local, state, or federal net
income taxes assessed against Landlord, including but not limited to all sale and use taxes imposed
by the state of Florida on the payment due under this Ground Lease; local, state, or federal capital
levy of Landlord; or sales, excise, franchise, gift, estate, succession, inheritance, or transfer taxes
of Landlord. Landlord shall have the obligation to: (i) cause any tax bills related to the Premises
or Improvements to be sent directly to Tenant or (ii) provide copies of all bills directly to Tenant
promptly after receipt.
4.02 Operating Expenses.
(a) Tenant's Obligation. During the Lease Term, Tenant will pay or cause to
be paid directly to the providers of such services all costs and expenses attributable to or incurred
in connection with the ownership, use, leasing, occupancy, operation, maintenance, and repair of
the Premises and the Improvements including without limitation (i) all energy sources for the
Improvements, such as propane, butane, natural gas, steam, electricity, solar energy, and fuel oil;
(ii) all water, sewer and trash disposal services; (iii) all maintenance, repair, replacement and
rebuilding of the Improvements including, without limitation, all mechanical, electrical, HVAC,
telecommunications and security systems within the Improvements, and all structural and non-
structural components of the Improvements, both interior and exterior; (iv) all landscaping,
maintenance, repair and striping of all parking areas of the Improvements; (v) all insurance
premiums relating to the Premises, including fire and extended coverage, public liability insurance,
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rental insurance and all risk insurance; and (vi) the costs and expenses of all capital improvements
or repairs (whether structural or non-structural) required to maintain the Improvements in good
order and repair or required by any Governmental (or quasi -governmental) Authority having
jurisdiction over the Premises and the Improvements.
(b) Permits and Licenses. Tenant will also procure, or cause to be procured any
and all necessary permits, licenses, or other authorizations required for the installation and
maintenance of wires, pipes, conduits, equipment, and appliances for use in supplying any such
service to and upon the Premises and the Improvements. Landlord, upon request of Tenant, and
at the sole expense and liability of Tenant, will join with Tenant in any application required for
obtaining or continuing any such services.
4.03 Insurance. Beginning on the Effective Date and continuing until the expiration or
earlier termination of the Lease Term, Tenant shall maintain and keep in force insurance, as
applicable, naming Landlord as an additional insured in the type and for the amounts specified on
Exhibits Cl (Insurance Requirements — Vacant Land), C2 (Insurance Requirements — Construction
Phase), and C3 (Insurance Requirements — Completed Improvements), respectively. Specifically,
for so long as the Premises remain vacant land, Tenant shall maintain the insurance coverage
described in Exhibit Cl (Insurance Requirements — Vacant Land). During the period of
construction of the Improvements, Tenant shall maintain the insurance coverage described in
Exhibit C2 (Insurance Requirements — Construction Phase). Upon completion of the
Improvements, Tenant shall maintain the insurance coverage described in Exhibit C3 (Insurance
Requirements — Completed Improvements), which shall replace the Builder's Risk insurance
without any lapse in coverage.
All public liability or casualty policies maintained by Tenant will be written as primary
policies, not contributing with and not secondary to insurance coverage that Landlord may carry.
The City shall have the right, no more than once in any twelve (12)-month period, to revisit the
insurance requirements under this Ground Lease and may request reasonable changes to such
insurance requirements to the extent warranted by then -current market conditions and to the extent
such changes are customary and commonly available for properties similar in type, size, use, and
location to the Premises and Improvements, provided that the City delivers not less than ninety
(90) days' prior written notice to Tenant of any such requested changes. If Tenant fails to maintain
such insurance, at its election, and upon five (5) days' notice to Tenant, Landlord may, but shall
not be obligated to, .procure such insurance as may be necessary to comply with the insurance
requitements of this Section 4.03, and Tenant shall repay to Landlord as Additional Rent the cost
of such insurance. Tenant shall furnish to Landlord certificates of insurance which shall state that
a thirty (30)-day notice of prior cancellation or change will be provided to Landlord. Tenant
further agrees to require its contractors to list the Landlord on all applicable liability policies during
the construction period pursuant to Exhibit C2.
4.04 Restoration.
(a) If the Improvements shall be damaged or destroyed in whole or in part,
Tenant shall give prompt notice thereof to Landlord. The net amount of all insurance proceeds
received by Tenant with respect to such damage or destruction, after deduction of the reasonable
costs and expenses incurred by Landlord in collecting the same (the "Net Proceeds"), shall, subject
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to the terms of any Permitted Leasehold Mortgage, be disbursed by Landlord in accordance with
the terms and conditions set forth herein to pay for the costs and expenses of the Restoration
(defined below), provided that (i) no Event of Default (defined below) has occurred and remains
uncured under this Ground Lease, (ii) except as otherwise agreed to by Landlord and subject to
the terms of any Permitted Leasehold Mortgage, Tenant proceeds promptly after the insurance
claims are settled with the restoration, replacement, rebuilding or repair of the Improvements as
nearly as possible to the condition the Improvements were in immediately prior thereto (the
"Restoration"), (iii) the Restoration shall be done in compliance with all Applicable Laws, (iv) all
costs and expenses incurred by Landlord in connection with making the Net Proceeds available
for the Restoration, including, without limitation, reasonable counsel fees and inspecting engineer
fees incurred by Landlord, shall be paid out of the Net Proceeds, (v) Landlord, in its reasonable
discretion, shall have determined that the Restoration is in its best interest, provided that Landlord
hereby acknowledges and agrees that Restoration of the Project is in Landlord's best interest during
the initial fifteen (15) years of the tax credit compliance period pursuant to Section 42 of the Code,
and (vi) Tenant deposits sufficient additional funds which, when added to the Net Proceeds, will
pay for the costs and expenses of the Restoration. Tenant shall not be excused from repairing or
maintaining the Premises and/or Improvements as provided in this Section or restoring all damage
or destruction to the Premises and/or Improvements, regardless of whether or not there are
insurance proceeds available to Tenant or whether any such proceeds are sufficient in amount, and
the application or release by Landlord of any insurance proceeds shall not cure or waive any default
or notice of default under this Ground Lease or invalidate any act done pursuant to such default or
notice of default.
(b) Net Proceeds Held in Trust. Subject to the terms of any Permitted
Leasehold Mortgage as to the holding and disbursement of the Net Proceeds, the Net Proceeds
shall be held in trust by Landlord and shall be paid by Landlord to, or as directed by, Tenant from
time to time during the course of the Restoration upon the written request of Tenant if the work
for which payment is requested has been done in a good and workmanlike manner and substantially
in accordance with the plans and specifications thereof, if any, and (i) either no mechanics' or other
liens or encumbrances on the Premises arising out of the Restoration exist or any such liens or
encumbrances have been stayed, discharged or bonded, and (ii) the balance of the Net Proceeds
plus the balance of any deficiency deposits given by Tenant to Landlord pursuant to the provisions
of this paragraph hereinafter set forth shall be sufficient to pay in full the balance of the cost of the
Restoration.
(c) Disbursement of Net Proceeds. Subject to the terms of any Permitted
Leasehold Mortgage, notwithstanding anything to the contrary contained herein, if the Net
Proceeds shall be less than $500,000.00, the Net Proceeds shall be disbursed directly to Tenant for
payment of costs of Restoration, and the Landlord shall not be entitled to hold or disburse such
Net Proceeds.
(d) Discretion of Landlord. Landlord shall not be entitled to share in the
proceeds of any insurance policy except as specifically set forth herein and Landlord further
acknowledges that any and all excess insurance proceeds after all disbursements for the
Restoration have been completed shall belong to Tenant.
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(e) Permitted Leasehold Mortgage. Notwithstanding the foregoing, in the
event of an inconsistency between the terms and conditions of this Section 4.04 of the Ground
Lease and the terms and conditions of the loan documents for the then senior Permitted Leasehold
Mortgage, the terms and conditions of the loan documents for the then senior Permitted Leasehold
Mortgage shall control.
ARTICLE V - USE OF PREMISES; COVENANTS RUNNING WITH THE LAND
5.01 Permitted Use. During the Lease Term, or such lesser period as may be permitted
by law, Tenant will continuously set aside one hundred thirty-five (135) units located on the
Premises as new affordable rental housing units in compliance with Section 42 of the Code and
any requirements of HUD and the Florida Housing Finance Corporation, and Tenant shall
continuously use and operate all units in a manner which strictly satisfies the requirements of this
Ground Lease.
5.02 Compliance with Laws. Tenant shall not use, occupy, suffer or permit any portion
of the Premises to be used or occupied in violation of any Applicable Law, certificate of
occupancy, or other governmental requirement. Tenant will comply with all Applicable Laws and
all rules, orders, regulations, and requirements of the board of fire underwriters or insurance
service office, or any other similar body, having jurisdiction over the Premises and Improvements.
5.03 Special Provisions Relating to Compliance with Environmental Laws.
(a) Tenant's Environmental Covenants. Without limitation of any of Tenant's
other covenants, agreements and obligations under this Ground Lease, Tenant hereby specifically
covenants and agrees to fulfill the responsibilities set forth below with respect to environmental
matters:
(i) Tenant shall comply with all Environmental Laws applicable to
Tenant relative to the Premises and Improvements. Tenant shall identify, secure, and maintain all
required governmental permits and licenses as may be necessary for the Premises and
Improvements, or otherwise required by Tenant's activities. Tenant shall maintain such permits
and licenses in effect and shall renew them in a timely manner, and Tenant shall comply and use
reasonable efforts to cause all third parties to comply with the terms of such permits and licenses.
All Hazardous Substances present, handled, generated or used by Tenant on the Premises will be
managed, transported and disposed of in a lawful manner.
(ii) Tenant shall provide Landlord with copies of all forms and other
information concerning any releases, spills or other incidents relating to Hazardous Substances or
any violations of Environmental Laws promptly upon the discovery of such releases, spills, or
incidents.
(b) Landlord's Environmental Covenants. Without limitation of any of
Landlord's other covenants, agreements, and obligations under this Ground Lease, Landlord
hereby specifically covenants and agrees to provide Tenant with copies of all forms and other
information concerning any releases, spills, or other incidents relating to Hazardous Substances or
any violations of Environmental Laws with respect to the Premises of which Landlord has actual
knowledge.
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5.04 Tenant's Environmental Indemnity. Tenant covenants and agrees to indemnify,
defend, and hold Landlord free and harmless from and against any and all losses, liabilities,
penalties, claims, fines, litigation, demands, costs, judgments, suits, proceedings, damages,
disbursements, or expenses (including reasonable attorneys' fees) which may at any time be
imposed upon, reasonably incurred by, or asserted or awarded against Landlord in connection with
or arising from:
(a) the existence of any Hazardous Substances which are first placed on, in, or
under all or any portion of the Premises during the Lease Term except to the extent so placed by
Landlord; or
(b) any violation of any Environmental Laws by Tenant at or relating to the
Premises which does not arise out of conditions existing prior to the Commencement Date.
5.05 Responsibility of Landlord. Landlord shall not be responsible under this Ground
Lease for any claims, losses, damages, liabilities, fines, penalties, charges, administrative and
judicial proceedings and orders, judgments, remedial action requirements, enforcement actions of
any kind, and all costs and expenses incurred in connection therewith, arising out of (i) any activity
by Tenant or its agents or contractors carried on or undertaken on or off the Premises following
the Commencement Date in connection with the handling, treatment, removal, storage,
decontamination, cleanup, transport or disposal of any Hazardous Substances located or present
on or under the Premises (except to the extent of any activity carried on or undertaken solely by
or contracted for by Landlord or its agents and except to the extent that any Hazardous Materials
are located or present on or under the Premises prior to the Commencement Date); or (ii) the failure
of Tenant or its agents or contractors following the Commencement Date to comply with any
Environmental Laws relating to the handling, treatment, presence, removal, storage,
decontamination, cleanup, transportation or disposal of Hazardous Substances into, on, under or
from the Premises whether or not such failure to comply was known or knowable, discovered or
discoverable following the Commencement Date.
5.06 Restrictions Applicable to the Premises and the Improvements.
(a) The provisions of this Section 5.06 are intended to create a covenant running
with the land and shall be binding upon Landlord and Tenant and each of their respective
successors and assigns and all subsequent owners of the Premises and the Improvements,
including, without limitation, any entity which succeeds to Tenant's interest- in the Premises and
the Improvements.
(b) Tenant shall not execute any agreement, lease, conveyance or other
instrument whereby the Premises and Improvements or any part thereof is restricted upon the basis
of race, color, creed, religion, ancestry, national origin, handicap, age, sex, or marital status in the
sale, lease, rental, use, or occupancy of the Premises and the Improvements.
(c) Tenant shall not discriminate in the use, sale, lease, or occupancy of the
Premises and the Improvements against any person upon the basis of race, color, creed, religion,
ancestry, national origin, handicap, age, sex, or marital status.
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(d) Tenant shall comply with all State, Federal and local laws, rules, and
regulations in effect from time to time, prohibiting discrimination or segregation by reason of race,
color, creed, religion, ancestry, national origin, handicap, age, sex, or marital status in the sale,
lease, use, or occupancy of the Premises and the Improvements.
5.07 Indemnification. Tenant shall indemnify, defend, save and hold Landlord and its
officers, officials, agents and employees (collectively with Landlord, the "Landlord Parties")
harmless from and against any and all claims, actions, damages, losses, liabilities, costs and
expenses (including court costs, attorneys' fees, and cost of claim processing, investigation and
litigation) arising out of or in connection with (a) any breach of this Ground Lease by Tenant,
(b) any violation, or alleged violation by Tenant, its affiliates, joint venture partners, agents or
employees of any of them or anyone for whose acts they may be liable (collectively with Tenant,
the "Tenant Parties") of state, federal, or local law, rule or regulation; (c) any bodily injury,
sickness, disease or death, or injury to or destruction of tangible property including the loss of use
resulting therefrom, arising out of or related to the occupancy and/or use of the Premises by any
one or more of the Tenant Parties. Such indemnity shall apply to any such claim, action, damage,
loss, liability, cost or expense caused in whole or in part by any act or omission (negligent or
otherwise) by any one or more of the Tenant Parties, regardless of whether or not it is caused in
part by the Landlord Parties indemnified hereunder unless caused by the negligence or willful
misconduct of the Landlord Parties or a failure to act by the Landlord Parties when a duty to act is
present. It is the specific intention of the parties that the Landlord Parties shall, in all instances,
except for claims arising solely from the negligent or willful acts or omissions of the Landlord
Parties, be indemnified by Tenant from and against any and all claims described in this Section
5.07. It is agreed that Tenant will be responsible for primary loss investigation, defense and
judgment costs where this indemnification is applicable. In consideration for the use and
occupancy of the Premises, Tenant agrees to waive all rights of subrogation against the Landlord
Parties for losses arising from the use, occupancy or condition of the Premises.
5.05 Survival. This Article V shall survive the expiration or early termination of this
Ground Lease.
ARTICLE VI - CONVEYANCES, ASSIGNMENTS AND TRANSFERS
6.01 Consent. This Agreement shall be binding upon and inure to the benefit of the
successors and assigns of Landlord and Tenant, except that other than as specifically set forth
herein Tenant may not assign or sublet its interest in this Ground Lease without the prior written
consent of Landlord and, if required under the terms of any Permitted Leasehold Mortgage, any
Permitted Leasehold Mortgagee. Any attempted transfer without such consent shall be null and
void.
6.02 Prohibited Transfers. Tenant agrees for itself and its successors and assigns in
interest hereunder that it will not, other than in accordance with the granting of liens under
Permitted Leasehold Mortgages and leases to tenants of residential units and of the commercial
space: (1) assign this Ground Lease or any of its rights under this Ground Lease as to all or any
portion of the Premises, or (2) make or permit any voluntary or involuntary total or partial sale,
lease, assignment, conveyance, mortgage, pledge, encumbrance, or other transfer of any or all of
the Premises, or the occupancy or use thereof, other than in accordance with this Ground Lease
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(including but not limited to (i) any sale at foreclosure (other than by a Permitted Leasehold
Mortgagee) or by the execution of any judgment of any or all of Tenant's rights hereunder, or (ii)
any Transfer by operation of law, which shall each be permitted hereunder without the prior
consent of Landlord), without first obtaining Landlord's express written consent thereto; provided,
however, that Tenant may, upon reasonable prior notice to Landlord but without first obtaining
Landlord's consent, convey or dedicate land for use as streets, alleys, or other public rights -of -way,
and make grants and easements for the establishment, operation and maintenance of public
utilities.
6.03 Additional Restrictions on Transfers. In addition to the transfers described in
Section 6.02, no transfer, conveyance, or assignment shall be made, without the prior written
approval of Landlord, of: (1) any interest of a managing member (any such interest being referred
to as a "Controlling Interest") of Tenant; or (2) a Controlling Interest in any entity that has a
Controlling Interest in Tenant (each of such transfers, conveyances and assignments, together with
the transfers described in Section 6.02, is hereafter referred to as a "Transfer"). Landlord agrees
that it will not unreasonably withhold, delay, or condition a request by Tenant for consent to an
internal reorganization of the corporate structure of Tenant or any of the members of Tenant.
Notwithstanding the foregoing, any non -managing member of Tenant may transfer it's non -
managing member interest in Tenant without Landlord consent in accordance with the terms of
Tenant's First Amended and Restated Operating Agreement.
6.04 No Remedy for Unauthorized Transferee. Except as otherwise permitted in this
Ground Lease, any person to whom any Transfer is attempted without such consent shall have no
claim, right, or remedy whatsoever hereunder against Landlord, and Landlord shall have no duty
to recognize any person claiming under or through the same.
6.05 Permitted Transfers. Notwithstanding anything in this Ground Lease to the
contrary, by its execution of this Ground Lease, Landlord is deemed to have consented to any
sublease of residential units or commercial space to tenants and liens or assignments securing any
Permitted Leasehold Mortgages, any transfer of a non -managing member interest in Tenant in
accordance with the terns of Tenant's First Amended and Restated Operating Agreement.
6.06 Subsequent Assignment. Except with respect to Permitted Transfers, Landlord's
consent to one conveyance, assignment, or transfer will not waive the requirement of its consent
to any subsequent conveyance, assignment, or transfer.
6.07 Request for Consent. If Tenant requests Landlord's consent to a specific
conveyance, assignment, or Transfer, Tenant shall provide to Landlord (a) the name and address
of the proposed person or entity; (b) a copy of all proposed conveyance, assignment, or transfer
instruments and other legal agreements involved in effecting a transfer; (c) satisfactory information
about the nature, business, and business history of the proposed person or entity; (d) banking,
financial, or other credit information, and references about the proposed person or entity sufficient
to enable Landlord to determine the financial responsibility and qualifications of the proposed
person or entity; (e) an instrument in writing satisfactory to Landlord and in recordable form
wherein the proposed transferee expressly assumes all of the obligations of the transferor; and (f)
satisfactory evidence that the transferee will comply with such other conditions as Landlord may
determine are necessary to achieve and safeguard the purposes of this Ground Lease.
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6.08 Documentation of Assignment. Upon the granting of any consent by Landlord with
respect to a conveyance, assignment, or transfer by Tenant, this Ground Lease shall be binding
upon and inure to the benefit of Landlord, the assignee, and their respective successors and
permitted assigns.
6.09 Master Covenants. Notwithstanding anything to the contrary set forth in this
Ground Lease, Landlord hereby expressly consents to the recordation of a certain Declaration of
Covenants, Restrictions and Easements for Yaeger Plaza encumbering the Premises and other
adjacent parcels, to all modifications and amendments thereof and to its termination; provided,
however, that any such action is subject to Landlord's prior written consent.
6.10 Permitted Leasehold Mortgages. Neither Tenant nor any permitted successor in
interest to the Premises or any part thereof shall, without the prior written consent of Landlord in
each instance, engage in any financing or any other transaction creating any mortgage or other
encumbrance or lien upon the Premises, whether by express agreement or operation of law, or
suffer any encumbrance or lien to be made on or attach to the Premises, except for leasehold
mortgages securing construction, interim or permanent financing and refinancing of Tenant's
leasehold interest in the Premises (the "Permitted Leasehold Mortgages"). With respect to the
Permitted Leasehold Mortgages, the following provisions shall apply:
(a) When giving notice to Tenant with respect to any Event of Default, the
Landlord will also send a copy of such notice to (i) each equity investor holding an interest in
Tenant, and their respective successors and/or assigns (each, an "Investor ") and (ii) the holder of
each Permitted Leasehold Mortgage (each a "Permitted Leasehold Mortgagee"), provided that
each such Investor or Permitted Leasehold Mortgagee shall have delivered to Landlord in writing
a notice naming itself as an Investor or the holder of a Permitted Leasehold Mortgage and
registering the name and post office address to which all notices and other communications to it
may be addressed.
(b) Each Permitted Leasehold Mortgagee and the Investor shall be permitted,
but not obligated, to cure any Event of Default under this Ground Lease within the same period of
time specified for Tenant to cure such default plus an additional thirty (30) days, or such longer
time as is permitted in Section 6.10(d), below. No notice by Landlord to Tenant of an Event of
Default under this Ground Lease shall be effective unless Landlord has given written notice to
each Investor and each Permitted Leasehold Mortgagee whose notice infoiivation has been
provided to Landlord: Tenant authorizes the Investor and each Permitted Leasehold Mortgagee to
take any such action at such party's option and does hereby authorize entry upon the Premises for
such purpose. Additionally, Tenant may delegate irrevocably to any Permitted Leasehold
Mortgagee the authority to exercise any or all of Tenant's rights hereunder, including, but not
limited to the right of Permitted Leasehold Mortgagee to participate (in conjunction with or to the
exclusion of Tenant) in any proceeding, arbitration or settlement involving condemnation or
eminent domain affecting Tenant's leasehold interest in the Premises, but no such delegation shall
be binding upon Landlord unless and until either Tenant or the Permitted Leasehold Mortgagee in
question shall give to Landlord a true copy of a written instrument effecting such delegation, in
form required for recording. Any provision of this Ground Lease that gives Permitted Leasehold
Mortgagee the privilege of exercising a particular right of Tenant hereunder on condition that
Tenant shall have failed to exercise such right shall not be deemed to diminish any privilege that
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Permitted Leasehold Mortgagee may have, by virtue of a delegation of authority from Tenant, to
exercise such right without regard to whether or not Tenant shall have failed to exercise such right.
(c) Landlord agrees to accept payment or performance by any Permitted
Leasehold Mortgagee or the Investor as though the same had been done by Tenant.
(d) In the case of an Event of Default other than in the payment of money, and
provided that a Permitted Leasehold Mortgagee has commenced to cure the default and is
proceeding with due diligence to cure the default, Landlord will refrain from terminating this
Ground Lease for a reasonable period of time (not to exceed one hundred twenty (120) days from
the date of the notice of default) within which time the Permitted Leasehold Mortgagee may either
(i) obtain possession of the Premises (including possession by receiver); (ii) institute foreclosure
proceedings and complete such foreclosure; or (iii) otherwise acquire Tenant's interest under this
Ground Lease. The Permitted Leasehold Mortgagee shall not be required to continue such
possession or continue such foreclosure proceedings if the default which was the subject of the
notice shall have been cured. A Permitted Leasehold Mortgagee, and its subsequent assignees, that
forecloses or otherwise acquires Tenant's interest under this Lease will only be liable for acts or
omissions of Tenant taking place during the period in which the Permitted Leasehold Mortgagee
or assignee, as applicable, had record title to the leasehold estate in the Premises; provided,
however, that nothing herein shall relieve any Permitted Leasehold Mortgagee or assignee from
(i) the obligation to cure any pre-existing Event of Default to the extent and in the manner required
under this Ground Lease as a condition to preserving the Ground Lease, or (ii) liability for its own
gross negligence, willful misconduct, bad -faith failure to perform obligations expressly assumed,
or failure to maintain insurance required to be carried during its period of ownership. A Permitted
Leasehold Mortgagee and assignee will be automatically released from any and all liability under
this Lease at such time as it no longer possesses such record title to the leasehold estate in the
Premises; provided, that such release shall not waive or discharge (a) any liability for obligations
that accrued during its period of ownership, or (b) any indemnity, insurance, restoration, or
environmental obligations arising from conditions first occurring during its period of ownership.
The liability of the Permitted Leasehold Mortgagee or assignee, as applicable, to Landlord will be
limited to the fair market value of their respective interests in the leasehold estate in the Premises
and this Lease; provided, however, that such limitation shall not apply to losses resulting from the
gross negligence or willful misconduct of such party, and nothing in this paragraph shall limit or
impair Landlord's right to enforce (1) indemnification obligations, (2) environmental and
hazardous -materials obligations, (3) insurance obligations, or (4) restoration obligations, in each
case to the extent arising during the period of such parry's ownership.
(e) Any Permitted Leasehold Mortgagee or other acquirer of Tenant's leasehold
estate and interest in this Ground Lease pursuant to foreclosure, an assignment in lieu of
foreclosure or other proceedings, any of which are permitted without Landlord's consent, may,
upon acquiring Tenant's leasehold estate and interest in this Ground Lease, without further consent
of Landlord, sell and assign the leasehold estate and interest in this Ground Lease on such terms
and to such persons and organizations as are acceptable to such Permitted Leasehold Mortgagee
or acquirer and thereafter be relieved of all obligations under this Ground Lease, provided such
assignee has delivered to Landlord its written agreement to be bound by all of the provisions of
this Ground Lease.
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(f) In the event of a termination of this Ground Lease prior to its stated
expiration date, Landlord will enter into a new lease for the Premises with the Permitted Leasehold
Mortgagee (or its nominee) ("Replacement Tenant"), for the remainder of the Lease Term,
effective as of the date of such termination (the "New Lease"), at the same Base Rent and
Additional Rent and subject to the same covenants and agreements, terms, provisions, and
limitations herein contained, provided that:
(i) Landlord receives the Permitted Leasehold Mortgagee's written
request for such New Lease within thirty (30) days from the date of such termination and notice
thereof by Landlord to the Permitted Leasehold Mortgagee (including an itemization of amounts
then due and owing to Landlord under this Ground Lease), and such written request is accompanied
by payment to Landlord of all amounts then due and owing to Landlord under this Ground Lease
and, within ten (10) days after the delivery of an accounting therefor by Landlord, pays any and
all costs and expenses, including reasonable counsel fees, court costs, and disbursements made by
Landlord in connection with any such default and termination as well as in connection with the
execution and delivery of the New Lease, less the net income collected by Landlord from the
Premises subsequent to the date of termination of this Ground Lease and prior to the execution and
delivery of the New Lease, any excess of such net income over the aforesaid sums and expenses
to be applied in payment of the Base Rent and Additional Rent thereafter becoming due under the
New Lease; and
(ii) Upon the execution and delivery of the New Lease at the time
payment is made in (i) above, all subleases which thereafter may have been assigned and
transferred to Landlord shall thereupon be assigned and transferred without recourse by Landlord
to Replacement Tenant.
(iii) Notwithstanding the foregoing, the New Lease shall be subject to
the liens of the Permitted Leasehold Mortgages which existed immediately prior to the termination
of this Ground Lease (other than that of Replacement Tenant) and, further, shall not impact the
rights, priorities and interests of the Permitted Leasehold Mortgagees set forth therein.
Notwithstanding the foregoing and to the extent permitted by Section 42 of the Code, the deadline
to complete construction of the Improvements set forth in Section 1.07 shall be extended for such
period of time as may be reasonably required by the Permitted Leasehold Mortgagee or its nominee
to complete construction. If at the time of termination of this Ground Lease prior to its stated'
expiration date there exists more than one Permitted Leasehold Mortgagee, then references to the .-
"Permitted Leasehold Mortgagee" in this subsection (f) shall apply to the Permitted Leasehold
Mortgagee then holding the senior mortgage encumbering the Premises (the "Senior Mortgage").
(g) At no time shall Landlord's fee title in the Premises, or Landlord's interest
in the Ground Lease be subordinated in any manner to the interests of any Permitted Mortgagee
or any person claiming by or through Tenant. Landlord shall reasonably consider such
amendments to this Lease as may be reasonably requested by any Permitted Leasehold Mortgagee,
provided that such amendments do not increase, or in the sole opinion of the Landlord,
unreasonably alter the obligations of Landlord under this Lease.
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6.11 Tenant's Investor. On or about the Commencement Date, the Tenant's equity
Investor, Wincopin Circle LLLP, together with its successors and assigns. will be admitted as a
member of the Tenant
(a) Cure Rights. Notwithstanding anything to the contrary contained in this
Lease, Landlord shall not exercise any of its remedies hereunder without having given notice of
the Event of Default or other breach or default to the Investor (following the admission of the
Investor) simultaneously with the giving of notice to Tenant. The Investor shall have the same
cure period after the giving of a notice as provided to Tenant, plus an additional period of thirty
(30) days. If the Investor elects to cure the Event of Default or other breach or default, Landlord
agrees to accept such performance as though the same had been done or performed by Tenant.
(b) Investor. Notwithstanding anything to the contrary contained in this Lease,
following the admission of the Investor, the Investor shall be deemed a third -party beneficiary of
the provisions of this Section for the sole and exclusive purpose of entitling the Investor to exercise
its rights to notice and cure and to enforce the provisions of Section 6.10, as expressly stated herein.
The foregoing right of the Investor to be a third -party beneficiary under the Lease shall be the only
right of Investor (express or implied) to be a third -party beneficiary hereunder.
(c) New Managing Member. Notwithstanding anything to the contrary
contained in this Lease, Landlord agrees that it will take no action to effect a termination of the
Lease by reason of any Event of Default or any other breach or default without first giving to the
Investor reasonable time, not to exceed thirty (30) days, to replace Tenant's Managing Member
and cause the new Managing Member to cure the Event of Default or other breach or default if
such Event of Default, breach or default is capable of being cured; provided, however, that as a
condition of such forbearance, Landlord must receive notice from the Investor of the substitution
of a new Managing Member of Tenant within thirty (30) days following Landlord's notice to
Tenant and the Investor of the Event of Default or other breach or default, and Tenant, following
such substitution or admission of the new Managing Member, shall thereupon proceed with due
diligence to cure such Event of Default or other breach or default as soon as reasonably possible.
In no event, however, shall Landlord be required to engage in the forbearance described in this
Section for a period longer than three (3) months, regardless of the due diligence of the Investor
or the new Managing Member.
6.12 Estoppel Certificates. Each party hereto shall, at any time and from time to time
within ten (10) days after being requested to do so by the -other party and/or any -Permitted
Leasehold Mortgagee in writing, execute, acknowledge, and address and deliver to the requesting
party not more than twice per calendar year (or, at the latter's request, to any existing or prospective
Permitted Leasehold Mortgagee, transferee or other assignee of the requesting party's interest in
the Premises or under this Ground Lease which acquires such interest in accordance with this
Ground Lease) a certificate in recordable form:
(a) Certifying (i) that this Ground Lease is unmodified and in full force and
effect (or, if there has been any modification thereof, that it is in full force and effect as so modified,
stating therein the nature of such modification); (ii) that Tenant has accepted possession of the
Premises, and the date on which the Lease Term commenced; (iii) as to the dates to which any
Base Rent or Additional Rent and other charges arising hereunder have been paid; (iv) as to the
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amount of any prepaid Base Rent or Additional Rent or any credit due to Tenant hereunder; (v) as
to whether, to the best of such party's knowledge, information and belief, the requesting party is
then in default in performing any of its obligations hereunder (and, if so, specifying the nature of
each such default); and (vi) as to any other fact or condition reasonably requested by the requesting
party; and
(b) Acknowledging and agreeing that any statement contained in such
certificate may be relied upon by the requesting party and any such other addressee.
6.13 Permitted Corporate Transfers. Notwithstanding anything to the contrary set forth
elsewhere in this Ground Lease, Tenant may, subject to receipt of Landlord's prior written consent
(which consent shall not be unreasonably withheld, conditioned or delayed) and compliance with
any applicable restrictions, assign all or part of this Ground Lease, or sublease all or a part of the
Premises, to:
(a) any entity which has the power to direct Tenant's management and
operation, or any corporation whose management is controlled by Tenant; or
(b) any entity a majority of whose voting equity is owned by Tenant; or
(c) any entity in which or with which Tenant, its successors or assigns, is
merged or consolidated, in accordance with applicable statutory provisions for merger or
consolidation, so long as the liabilities of the entities participating in such merger or consolidation
are assumed by the entity surviving such merger or created by such consolidation.
ARTICLE VII - MAINTENANCE AND REPAIR
7.01 Tenant's Obligations. Tenant will, at its sole cost and expense, maintain the
Premises and the Improvements and make repairs, restorations, and replacements to the
Improvements, including without limitation the landscaping; heating, ventilating, air conditioning,
mechanical, electrical, elevator, and plumbing systems and other systems for the furnishing of
utilities or services to the Premises, structural roof, walls, and foundations; and the fixtures and
appurtenances as and when needed to preserve them in good working order and condition, and
regardless of whether the repairs, restorations, and replacements are ordinary or extraordinary,
foreseeable or unforeseeable, capital or non -capital, or the fault or not the fault of Tenant, its
agents, employees, invitees, visitors, and contractors. _ All such repairs, restorations, and
replacements will be in quality and class equal to or better than the original work or installations.
The repairs replacements, restorations and/or alterations undertaken by Tenant under this Ground
Lease shall not require the prior consent of Landlord. For the avoidance of doubt, the repairs
replacements, restorations and/or alterations undertaken by Tenant to the Premises and the
Improvements described in this Article VII shall be performed in a good and workmanlike manner
that shall not give rise to a lien in violation of Article VIII.
7.02 No Obligation of Landlord. Landlord shall not be required to perform or to pay for
any maintenance, or make or pay for any repairs, replacements or improvements of any kind
whatsoever to the Premises or the Improvements or any part thereof during the Lease Term,
regardless of the cause necessitating any such maintenance, repairs, replacements, or
improvements, in recognition that this Ground Lease shall be net in all respects to Landlord.
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Tenant expressly waives the right to make repairs at the expense of Landlord as may be provided
in any statute, law, or ordinance in effect as of the Possession Date.
ARTICLE VIII - LIENS
8.01 No Liens. Except for Permitted Leasehold Mortgages, Tenant shall not have any
right, authority, or power to bind Landlord, the Premises or any other interest of Landlord in the
Premises and will pay or cause to be paid all costs and charges for work done by it or caused to be
done by it, in or to the Premises, for any claim for labor or material or for any other charge or
expense, lien or security interest incurred in connection with the development, construction or
operation of the Improvements or any change, alteration or addition thereto. Tenant shall not
permit to remain any encumbrances of the Improvements, except the Permitted Leasehold
Mortgages. Tenant shall comply with all laws which provide for the waiver of liens which may
arise under any contract for labor or materials for the Improvements and Tenant shall comply with
the requirements of Chapter 713, Florida Statutes, regarding the filing of a Notice of
Commencement prior to the commencement of any work at the Premises to construct the
Improvements or otherwise improve the Premises. Landlord agrees to execute, or join in the
execution of, any such Notice of Commencement and any amendment or termination thereof.
Tenant will comply in all respects with the requirements of Chapter 713, Florida Statutes regarding
proper payments to and obtaining partial and final releases from all contractors, subcontractors,
material suppliers and other parties who have given notices to owner or may be otherwise entitled
to file liens against the Premises. NOTICE IS HEREBY GIVEN THAT LANDLORD SHALL
NOT BE LIABLE FOR ANY LABOR, SERVICES, OR MATERIALS FURNISHED OR TO BE
FURNISHED TO TENANT OR TO ANYONE HOLDING ANY OF THE PREMISES
THROUGH OR UNDER TENANT, AND THAT NO MECHANICS' OR OTHER LIENS FOR
ANY SUCH LABOR, SERVICES, OR MATERIALS SHALL ATTACH TO OR AFFECT THE
INTEREST OF LANDLORD IN AND TO ANY OF THE PREMISES. PURSUANT TO
FLORIDA STATUTES SECTION 713.10(2) (a), TENANT HEREBY ACKNOWLEDGES
RECEIPT OF NOTICE THAT THE INTEREST OF LANDLORD IN THE PREMISES SHALL
NOT BE SUBJECT TO LIENS FOR IMPROVEMENTS MADE BY TENANT. TENANT
FURTHER ACKNOWLEDGES AND AGREES THAT THE PROVISIONS OF FLORIDA
STATUTES SECTION 713.10(2)(a) STATE THAT TENANT SHALL NOTIFY ANY
CONTRACTOR MAKING ANY SUCH IMPROVEMENTS, AND THAT THE KNOWING OR
WILLFUL FAILURE OF TENANT TO PROVIDE SUCH NOTICE TO ITS CONTRACTOR
SHALL RENDER THE CONTRACT BETWEEN TENANT AND ITS CONTRACTOR
VOIDABLE AT THE OPTION OF THE CONTRACTOR. LANDLORD SHALL BE
PERMITTED TO POST ANY NOTICES ON THE PREMISES REGARDING SUCH NON -
LIABILITY OF LANDLORD.
ARTICLE IX — SURRENDER
9.01 Expiration of Lease Term. Upon the expiration of the Lease Term or sooner
termination of this Ground Lease, Tenant will surrender the Premises and the Improvements in the
condition set forth in Section 8.01. Tenant may not remove from the Premises any fixtures,
equipment, or furniture without the approval of Landlord except in the ordinary course of business
and for replacements or repair. Tenant expressly waives to Landlord the benefit of any law now
in force or hereafter adopted requiring notice to vacate the Premises at the end of the Lease Term,
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and Tenant covenants and agrees to give up quiet and peaceful possession and to surrender the
Premises together with all the Improvements thereon and appurtenances upon expiration of the
Lease Term or earlier termination of this Ground Lease without further notice from Landlord.
Tenant acknowledges and agrees that upon the expiration of the Lease Term or sooner termination
of this Ground Lease any and all rights and interests it may have either at law or in equity to the
Premises and Improvements shall immediately cease.
ARTICLE X - CASUALTY; CONDEMNATION
10.01 Damage or Destruction. Tenant shall give prompt written notice to Landlord after
the occurrence of any fire, earthquake, act of God, or other casualty to or in connection with the
Premises or the Improvements or any portion thereof (each a "Casualty"). Except as otherwise
agreed to by Landlord and subject to the provisions of the Permitted Leasehold Mortgages, if
during the Lease Term, the Premises or the Improvements shall be damaged or destroyed by
Casualty, and Landlord and all Permitted Leasehold Mortgagees shall have consented to release
the Net Proceeds to Tenant (if consent of a Permitted Leasehold Mortgagee is required under its
Permitted Leasehold Mortgage), Tenant shall repair or restore the Premises or the Improvements
as nearly as possible to the condition the Premises or the Improvements were in immediately prior
thereto. Notwithstanding the foregoing, Landlord consent shall not be required for the release of
the Net Proceeds to Tenant provided the requirements for Restoration as set forth in Section 4.04
are satisfied. Upon the occurrence of any such Casualty, Tenant, promptly and with all due
diligence, shall apply for and collect all applicable insurance proceeds recoverable with respect to
such Casualty. After payment of the Net Proceeds for the repair or restoration of the Premises and
the Improvements, any excess sums remaining shall be paid to or retained by Tenant.
10.02 Condemnation.
(a) Taking. If, by exercise of the right of eminent domain or by conveyance
made in response to the threat of the exercise of such right (in either case a "Taking"), all of the
Premises are taken, or if so much of the Premises are taken that Tenant believes the Premises
cannot be used by Tenant for the purposes for which they were used immediately before the
Taking, then this Ground Lease shall terminate on the earlier of the vesting of title to the Premises
in the condemning authority, or the taking of possession of the Premises by the condemning
authority.
(b) Condemnation Award. Subject to .the -terms of the Permitted- Leasehold
Mortgages, Landlord and Tenant agree that, in the event of a Taking that does not result in the
termination of this Ground Lease pursuant to subsection (a) above, this Ground Lease shall
continue in effect as to the remainder of the Premises, and the net amounts owed or paid to
Landlord or pursuant to any agreement with any condemning authority which has been made in
settlement of any proceeding relating to a Taking, less any costs and expenses incurred by Landlord
in collecting such award or payment (the "Net Condemnation Award") will be disbursed in
accordance with subsection (d) below to Landlord and/or Tenant. Tenant shall have the right to
participate in negotiations of and to approve any such settlement with a condemning authority
(which approval shall not be unreasonably withheld).
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(c) Temporary Taking. If there shall be a temporary Taking with respect to all
or any part of the Premises or of Tenant's interest in this Ground Lease, then the Lease Term shall
not be reduced and Tenant shall continue to pay in full all rents, impositions and other charges
required herein, without reduction or abatement thereof at the times herein specified.
(d) Subject to the terms of the Permitted Leasehold Mortgages, if there is a
complete or partial Taking which affects only the use of the Premises during the Lease Term,
Tenant shall be entitled to receive and retain the Net Condemnation Award. Subject to the terms
of the Permitted Leasehold Mortgages, if there is a complete or partial Taking which affects the
use of the Premises after the Lease Term, the Net Condemnation Award shall be apportioned
between Tenant and Landlord based on the ratio of the remaining term hereof and the remaining
expected useful life of the Premises following the expiration of the Lease Term.
(e) Subject to the terms of the Permitted Leasehold Mortgages, notwithstanding
any provision herein to the contrary, Landlord shall be entitled to receive and retain any portion of
the Net Condemnation Award apportioned to the land upon which the Improvements are located.
ARTICLE XI - QUIET ENJOYMENT
11.01 Quiet Enjoyment. So long as there is no ongoing Event of Default (beyond any
applicable notice and/or cure period), Tenant's possession of the Premises will not be disturbed by
Landlord, its successors and assigns.
11.02 Landlord's Right of Inspection. Notwithstanding Section 11.01 above, Landlord,
in person or through its agents, upon reasonable prior notice to Tenant, shall have the right to enter
upon the Premises for purposes of reasonable inspections performed during reasonable business
hours in order to assure compliance by Tenant with its obligations under this Ground Lease.
ARTICLE XII - DEFAULT; REMEDIES
12.01 Landlord's Right to Perform.
(a) Landlord's Option. If Tenant fails to pay when due amounts payable under
this Ground Lease or to perform any of its other obligations under this Ground Lease within the
time permitted for its performance, then Landlord, after ten (10) days' prior written notice to Tenant
without waiving any of its rights under this Ground Lease, may (but will not be required to) pay
such amount or perform such obligation. All amounts so paid by Landlord and all costs and
expenses incurred by Landlord in connection with the performance of any such obligations will be
payable by Tenant to Landlord on demand and shall constitute Additional Rent (as defined in
Section 12.01(b)).
(b) Additional Rent. Any and all payments that Tenant is required to make
hereunder to or for the benefit of Landlord including expenditures to operate, repair and maintain
the Premises and the Improvements shall be deemed to be "Additional Rent". All such
Additional Rent shall be payable in accordance with the provisions of the Sections of this Ground
Lease specifying the payment of such Additional Rent and shall be subject to the notice and cure
rights provided in Section 12.02(a). The Base Rent and the Additional Rent payable hereunder
shall be deemed "Rents" reserved by Landlord, and any remedies now or hereafter given to
20
Landlord under the laws of the State of Florida for collection of the Rents shall exist in favor of
Landlord, in addition to any and all other remedies specified in this Ground Lease.
12.02 Events of Default. The occurrence of any of the following events shall constitute
an "Event of Default" by Tenant:
(a) Tenant defaults in the due and punctual payment of Base Rent and/or
Additional Rent, and such default continues for thirty (30) days after written notice from Landlord;
(b) Tenant vacates or abandons the Premises (except by reason of Casualty or
Taking, as more particularly set forth in Article 10 above) or any substantial part thereof for a
period of more than thirty (30) consecutive days;
(c) This Ground Lease, the Premises or the Improvements or any part thereof
are taken upon execution or by other process of law directed against Tenant, or are taken upon or
subjected to any attachment by any creditor of Tenant or claimant against Tenant, and such
attachment is not discharged or stayed within ninety (90) days after its levy. Tenant shall notify
Landlord in writing of its action to either satisfy or contest the levy and, if contested, of the matter's
status on a monthly basis until concluded. If Tenant shall fail to cause such levy to be discharged
within the period aforesaid, then, in addition to any other right or remedy, Landlord may, but shall
not be obligated to, discharge the same either by paying the amount claimed to be due or by
procuring the discharge of such lien by deposit or by bonding. Any amount so paid by Landlord
and the costs and expenses incurred by Landlord in connection therewith, shall be payable by
Tenant and shall be paid by Tenant to Landlord on demand as Additional Rent hereunder;
(d) Tenant makes any sale, conveyance, assignment or transfer in violation of
this Ground Lease, which transfer is not cured or approved by Landlord within thirty (30) days
after receipt of written notice by Landlord of such default;
(e) Tenant violates, breaches or fails to comply with any of the other material
agreements, terms, covenants, or conditions which this Ground Lease requires Tenant to perform
(and where such failure to comply is not otherwise specifically addressed in this Section 12.02),
and such violation, breach or failure continues for a period of thirty (30) days after notice by
Landlord to Tenant; provided that if the nature of the breach is such that it cannot be cured by
Tenant within the period of thirty (30) days, Tenant shall not be deemed in default of this Ground
Lease if Tenant commences the .curing. of such default within such period of thirty (30) days and
prosecutes in good faith the curing of same continuously thereafter until the same is, in fact, cured,
but in no event shall the cure period be extended later than one hundred twenty (120) days after
the notice from Landlord to Tenant;
(f) Tenant shall file a voluntary petition in bankruptcy or a voluntary petition
seeking reorganization or to effect a plan or an arrangement with or for the benefit of Tenant's
creditors, and such petition is not dismissed, stayed or withdrawn within thirty (30) days thereafter;
or
(g) Tenant shall apply for or consent to the appointment of a receiver, trustee,
or conservator for any portion of Tenant's property or such appointment shall be made without
Tenant's consent and shall not be removed within ninety (90) days.
21
Notwithstanding anything to the contrary in this Ground Lease, if Tenant defaults
as mortgagor under a leasehold mortgage, such default shall not constitute an Event of Default
hereunder except to the extent that Tenant's acts or omissions, in and of themselves, constitute an
Event of Default under the express terms of this Ground Lease.
12.03 Remedy.
(a) If any one or more Events of Default set forth in Section 12.02 occurs, then
Landlord may, after delivery of a second notice of default containing the heading NOTICE OF
DEFAULT WITH TERMINATION RIGHT and a failure by Tenant to cure such default within
thirty (30) days thereafter, terminate this Ground Lease by written notice to Tenant of its intention
to terminate this Ground Lease on the date of such notice or on any later date specified in such
notice, and, on the date specified in such notice, Tenant's right to possession of the Premises and
the Improvements will cease and the estate conveyed by this Ground Lease shall revest in
Landlord; provided that such revesting of the estate and the reentry by Landlord shall be subject
to and limited by, and shall not defeat, render invalid or limit in any way the lien of any Permitted
Leasehold Mortgage.
(b) Notwithstanding anything in this Lease to the contrary, the Landlord shall
not terminate this Ground Lease so long as the Investor remains a member of the Tenant or any
Permitted Leasehold Mortgage remains outstanding. So long as the Investor, and any of its
successors or assigns, remains a member of the Tenant or any Permitted Leasehold Mortgage
remains outstanding, Landlord shall standstill and not exercise any of its rights or remedies under
this Ground Lease, other than to specifically enforce the Tenant's obligations hereunder, and this
Ground Lease shall not be terminated without the prior written consent of the Investor and any
holder of a Permitted Leasehold Mortgage. So long as the Investor, and any of its successors or
assigns, remains the investor member of the Tenant or any Permitted Leasehold Mortgage remains
outstanding, Landlord shall not be permitted to exercise any right or remedy against Tenant, where
the circumstance giving rise to each right or remedy resulted from an act or omission of Landlord
or where the same would cause a default under any of the loan documents to which Tenant or the
Premises is subject or the Tenant's Operating Agreement without the prior written consent of
Investor and the holder of any Permitted Leasehold Mortgage.
(c) Notwithstanding any provision in this Ground Lease to the contrary (except as
specifically provided for in the immediately preceding Section 12.03 (b)), the City retains the
absolute right, at .its solediscretion, to initiate legal proceedings= to -specifically- enforce the
performance of the terms and conditions of this Ground Lease. This right is preserved irrespective
of whether the Investor, or any of its successors or assigns, continues to be a member of the Tenant,
or whether any Permitted Leasehold Mortgage remains in effect.
ARTICLE XIII
UTILITIES; REPAIR AND RELOCATION OF UTILITIES
13.01 Tenant agrees that any and all utility accounts with respect to the Premises shall be
in the name of Tenant. From and after the Commencement Date, under no circumstance
22
whatsoever, shall City be responsible for any utilities on the Premises, including, but not limited
to, the installation, maintenance, initial cost or fee or any on -going charges or fees. Tenant agrees
to pay any and all such utilities relating to the Premises in a timely manner, so as to avoid any
encumbrance on the Premises. Tenant, at its sole cost and expense and with the prior written
approval of the appropriate utility, agrees to maintain and repair, replace and relocate as necessary,
utility facilities within the Premises required for the operation of the Premises and all existing and
future Improvements, subject to the following conditions:
(a) Such activity does not materially or adversely interfere with City's
operations on any property outside the boundaries of the Premises; and
(b) Tenant complies with the provisions of all permits which have been issued
and are affected by such repair and relocation.
13.02 Tenant agrees to grant to City and any public utility company, pursuant to separate
instruments, non-exclusive perpetual easements for the installation, operation, maintenance,
repair, replacement, relocation, and removal of utility lines and facilities (together with access
incidental to such activities) such as water lines, fire lines, gas mains, electrical power lines,
telephone lines, cable and internet services, storm and sanitary sewers and other utility lines and
facilities (collectively, "Utility Facilities"), and such other easements as City or such public utility
companies may reasonably require from time to time, and shall provide notice to City, as described
in this Lease, prior to making such grants. All such easements shall be over, under and across: (i)
those portions of the Premises shown on the approved plans and specifications for the Project; or
(ii) such other locations on the Premises as may be requested by City or such public utility
companies from time to time, so long as such locations are reasonably acceptable to Tenant,
considering, among other things, whether such locations cause unreasonable interference with the
construction, use and operation of the Project or undue expense to Tenant. The instruments
granting such easements shall provide, among other things, that the grantee(s) shall not exercise
their rights in such a manner as would cause unreasonable interference with the construction, use
and operation of the Project.
ARTICLE XIV
SIGNAGE
Tenant shall have the exclusive right to construct, operate, and display onsite and offsite
premise signage on the interior, exterior or other portions of the Premises as Tenant deems
necessary and desirable so long as such signage complies with Applicable Laws and is approved
by the City in advance, which approval will not be unreasonably withheld, conditioned or delayed.
ARTICLE XV
MISCELLANEOUS
15.01 No Brokers. Neither Landlord nor Tenant has dealt with any broker or finder with
regard to the Premises or this Ground Lease. Both Landlord and Tenant will indemnify; defend,
and hold the other harmless from and against any loss, liability and expense (including reasonable
attorneys' fees and court costs) arising out of claims for fees or commissions in connection with
this Ground Lease.
23
15.02 Access. Tenant agrees to grant a right of access to Landlord, HUD, the Comptroller
General of the United States, or any of their duly authorized representatives, with respect to any
books, documents, papers, or other records related to this Ground Lease in order to make audits,
examinations, excerpts, and transcripts.
15.03 Recordation. Landlord and Tenant shall record a Memorandum of Ground Lease
in the appropriate office of public record of Miami -Dade County, Florida. At the expiration of the
Lease Term or earlier termination of this Ground Lease, Tenant shall execute a quit claim or other
document reasonably requested by Landlord to confirm the termination of its interest in this
Ground Lease. If Tenant refuses to do so within ten (10) days after receipt of a request from
Landlord, Landlord may unilaterally record a notice of termination of this Ground Lease.
15.04 Time of Essence. Time is of the essence of each and every provision of this Ground
Lease.
15.05 No Waiver. No waiver of any condition or agreement in this Ground Lease by
either Landlord or Tenant will imply or constitute a further waiver by such party of the same or
any other condition or agreement. No act or thing done by Landlord or Landlord's agents during
the Lease Term will be deemed an acceptance of a surrender of the Premises, and no agreement to
accept such surrender will be valid unless in writing signed by Landlord. No payment by Tenant,
nor receipt from Landlord, of a lesser amount than the Rent or other charges stipulated in this
Ground Lease will be deemed to be anything other than a payment on account of the earliest
stipulated Rent. No endorsement or statement on any check, or any letter accompanying any check
or payment as Rent, will be deemed an accord and satisfaction. Landlord will accept such check
for payment without prejudice to Landlord's right to recover the balance of such Rent or to pursue
any other remedy available to Landlord. If this Ground Lease is assigned, or if the Premises or
any part of the Premises are sublet or occupied by anyone other than Tenant, Landlord may collect
rent from the assignee, subtenant, or occupant and apply the net amount collected to the Rent
reserved in this Ground Lease. No such collection will be deemed a waiver of the covenant in this
Ground Lease against assignment and subletting, or the acceptance of the assignee, subtenant, or
occupant as Tenant, or a release of Tenant from the complete performance by Tenant of its
covenants in this Ground Lease.
15.06 Joint and Several Liability. If Tenant is composed of more than one signatory to
this Ground Lease, each signatory will be jointly and severally liable with each other signatory for
payment and performance according to this Ground Lease.
15.07 Captions, Exhibits, Gender, Etc. The captions inserted in this Ground Lease are
only for convenience of reference and do not define, limit, or describe the scope or intent of any
provisions of this Ground Lease. The Exhibits to this Ground Lease are incorporated into the
Ground Lease. Unless the context clearly requires otherwise, the singular includes the plural, and
vice versa, and the masculine, feminine, and neuter adjectives include one another.
15.08 Entire Agreement. This Ground Lease and Exhibits hereto contain the entire
agreement between Landlord and Tenant with respect to its subject matter and may be amended
only by subsequent written agreement between them. Except for those that are specifically set
24
forth in this Ground Lease, Landlord or Tenant has made no representations, warranties, or
agreements to one another with respect to this Ground Lease.
15.09 Amendment. This Ground Lease may be modified, amended or surrendered only
by a written document signed by Landlord and Tenant, with the written consent of the managing
member of Tenant, each Permitted Leasehold Mortgagee, and Investor for so long as Investor is a
member of Tenant. No amendment shall impair the obligations of Tenant to develop and operate
the project in accordance with all applicable requirements.
15.10 Severability. If any provision of this Ground Lease is found by a court of competent
jurisdiction to be illegal, invalid, or unenforceable, the remainder of this Ground Lease will not be
affected, and in lieu of each provision which is found to be illegal, invalid, or unenforceable, there
will be added as a part of this Ground Lease a provision as similar to such illegal, invalid, or
unenforceable provision as may be possible and be legal, valid, and enforceable.
15.11 Notices. Any notice, request, demand, consent, approval, or other communication
required or permitted under this Ground Lease shall be in writing and shall be given by either (a)
hand -delivery, (b) first class, certified or registered mail return receipt requested (postage prepaid),
(c) reliable overnight commercial courier, or (d) electronic mail, telecopy or other means of
electronic transmission, if confirmed promptly by any of the methods specified in clauses (a), (b)
and (c) of this sentence to the other party at its address set forth below. Notice by telecopy or other
means of electronic transmission shall be deemed to have been given and received when sent.
Notice by overnight courier service shall be deemed to have been given and received upon
delivery. A party may change its address by giving written notice to the other parties as specified
herein.
If to Landlord: If to Tenant:
City of Miami
Depailiuent of Community Development
444 S.W. 2nd Avenue, 2nd Floor
Miami, Florida 33130-1910
Attn: Victor Turner, Director
Email: vturner@miamigov.com
Phone: (305) 416-1978
25
Yaeger Plaza Partners, LLC
690 Lincoln Road, Suite 203
Miami Beach, Florida 33139
Attention: Kareem Brantley and Marvin
Wilmoth, Jr.
Email: kbrantley@integral-online.com and
mwilmoth@integral-online.com
With a copy to:
Office of the City Attorney
444 S.W. 2nd Avenue, 9th Floor
Miami, Florida 33130
Attn: George K. Wysong
E-mail: gwysong@miamigov.com
Phone: (305) 416-1832
Senior Permitted Leasehold Mortgagee:
Bank OZK
1001 Morehead Square Dr., Suite 150
Charlotte, North Carolina 28203
Attention: Anthony Swainey
Re: Yaeger Plaza
With a copy to:
Tiber Hudson LLC
1340 Smith Avenue, Suite 200
Baltimore, Maryland 21209
Attention: Matthew M. Grant, Esq.
With a copy to:
Greenberg Traurig, LLP
333 SW 2nd Ave, Suite 4400
Miami, Florida 33131
Attn: Ryan Bailine, Esq.
Email: Ryan.Bailine@gtlaw.com
and, so long as Investor is a member of Tenant,
a copy to :
Wincopin Circle LLLP
c/o Enterprise Community Asset Management,
Inc.
11000 Broken Land Parkway, Suite 700
Columbia, Maryland 21044
Tel: (410) 964-0552; Fax: (410) 772-2630
Attention: Asset Management
Email: legal@enterprisecommunity.org
Attention: Chief Legal Officer
and:
Bocarsly Emden Cowan Esmail & Arndt LLP
633 W Fifth St. Suite 5880
Los Angeles, California
Tel: 213-239-8000
Email: mhopkins@bocarsly.com
Attention: Michael Hopkins
15.12 Attorneys' Fees. If Landlord and Tenant litigate any provision of this Ground Lease
or the subject matter of this Ground Lease, each party shall bear their own respective attorney's
fees and court costs incurred by it in connection with such litigation.
15.13 Waiver of Jury Trial. Landlord and Tenant may waive trial by jury in any action,
proceeding, or counterclaim brought by either of them against the other on all matters arising out
of this Ground Lease or the use and occupancy of the Premises.
15.14 Governing Law. This Ground Lease shall be governed by the law and construed in
accordance with the laws of the State of Florida, without regard to principles of conflict of laws
and with respect to any dispute hereunder, jurisdiction and venue shall lie exclusively with the
courts of Miami -Dade County, Florida.
15.15 Binding Effect. This Ground Lease will inure to the benefit of, and will be binding
upon, Landlord's successors and assigns except as otherwise provided in this Ground Lease. This
26
Ground Lease will inure to the benefit of, and will be binding upon, Tenant's successors and
assigns so long as the succession or assignment is permitted pursuant to the terms of this Ground
Lease.
15.16 Effect of Exhibits. Each and every exhibit referred to or otherwise mentioned in
this Ground Lease is attached to this Ground Lease is and shall be construed to be made a part of
this Ground Lease by such reference or other mention at each point at which such reference or
other mention occurs, in the same manner and with the same effect as if each exhibit were set forth
in full at length every time it is referred to and otherwise mentioned.
15.17 Cumulative Rights. Except as expressly limited by the terms of this Ground Lease,
all rights, powers, and privileges conferred hereunder shall be cumulative and not restrictive of
those provided at law or in equity.
15.18 Relationship of Parties, Limited Third Party Beneficiary. The parties hereto
expressly declare that, in connection with the activities and operations contemplated by this
Ground Lease, they are neither partners nor joint venturers, nor does a principal -agent relationship
exist between them. Notwithstanding anything to the contrary set forth elsewhere in this Ground
Lease, the managing member of Tenant and the Permitted Leasehold Mortgagees shall be deemed
a third -party beneficiary with respect to all notice, cure, default, modification, amendment,
casualty, and condemnation provisions herein to the extent such provisions expressly apply to such
parties.
15.19 Non -Merger. Except upon expiration of the Lease Tenn or upon termination of
this Ground Lease pursuant to an express right of termination set forth herein, there shall be no
merger of either this Ground Lease or Tenant's estate created hereunder with the fee estate of the
Premises or any part thereof by reason of the fact that the same person may acquire, own or hold,
directly or indirectly, (a) this Ground Lease, Tenant's estate created hereunder or any interest in
this Ground Lease or Tenant's estate (including the Improvements), and (b) the fee estate in the
Premises or any part thereof or any interest in such fee estate (including the Improvements), unless
and until all persons, including any assignee of Landlord, having an interest in (i) this Ground
Lease or Tenant's estate created hereunder, and (ii) the fee estate in the Premises or any part
thereof, shall join in a written instrument effecting such merger and shall duly record the same.
15.20 Counterparts. This Agreement may be executed in counterparts and all such
counterparts shall be deemed to be originals and together shall constitute but one and the same
instrument.
15.21 Recognition of Unified Development; Cooperation.
(a) Landlord acknowledges as follows:
(i) that Tenant has also acquired leasehold interests in adjacent parcels
("Adjacent Parcels") pursuant to three separate ground leases (collectively, the "Other Ground
Leases") between Tenant and Yaeger Plaza Partners, LLC, a Florida limited liability company,
Alfred Thomas, and Carl E. Yaeger Jr. Trust (collectively, with the "Other Lessors" and
hereinafter referred to collectively with the Landlord as the "Ground Lessors");
27
(ii) that Tenant intends to utilize its leasehold interest under the Ground
Lease and the Other Ground Leases to develop a single low income housing project (the
"Building") on the Premises and the Adjacent Parcels, as depicted on Exhibit B (collectively, the
"Development Site");
(iii) that (i) the construction and operation of the Building would not be
possible but for the continued effectiveness of this Ground Lease and the Other Ground Leases
and (ii) that Tenant intends to execute one or more Permitted Leasehold Mortgages each of which
will encumber all of Borrower's right, title and interest in the Building and the entire Development
Site; provided, however, that no mortgage, lien, encumbrance, or security interest affecting any
Adjacent Parcels or any leasehold interest held under any Other Ground Lease shall constitute or
be deemed a lien, encumbrance, or interest on the Premises or on Tenant's leasehold estate under
this Ground Lease, except to the limited extent expressly permitted under this Ground Lease; and
(iv) that the continued use and operation of a single integrated
development on the Development Site is material to Tenant's beneficial use and quiet enjoyment
of the Premises.
(v) Notwithstanding anything to the contrary in this Section 15.21,
nothing in this Section shall impose any liability or duty upon the City beyond those expressly set
forth in this Ground Lease, including this Section 15.21. The provisions of this Section shall not
diminish, qualify, or impair any governmental rights, police powers, or regulatory authority of the
City that would exist regardless of whether the City were a party to this Ground Lease.
(b) In furtherance of Tenant's development, use and operation of the
Development Site as a single integrated development, during the continuance of an Event of
Default under the Lease, Landlord agrees to cooperate and work diligently and in good faith with
Tenant, Permitted Leasehold Mortgagee and the Other Lessors to negotiate a mutually acceptable
resolution that allows for the Event of Default to be cured in accordance with the terms of the
Ground Lease. Further, Landlord hereby agrees that whenever the Ground Lease gives Landlord
approval or consent rights with respect to any matter, including whether an Event of Default has
been cured, and a right of approval or consent for the same or substantially the same matter is also
granted to Other Lessors pursuant to one or more Other Ground Leases or otherwise (each, a "Joint
Consent Matter"), Landlord agrees (i) to provide its response promptly and in no event later than
60 days followingreceipt of the request, (ii) that its consent will not be unreasonably withheld,
conditioned or delayed, and (iii) to cooperate and work diligently and in good -faith -with Tenant
and the Other Lessors to negotiate a mutually acceptable course of action that facilitates the
continued use and operation of the Development Site as a single integrated development. If less
than all Ground Lessors approve a Joint Consent Matter, the Tenant, or one or more of the Ground
Lessors which have approved the Joint Consent Matter (each an "Approving Ground Lessor"),
may, within ten (10) business days of such decision demand arbitration under and in accordance
in accordance with the rules of either the American Arbitration Association or JAMS, or another
provider of arbitration services as agreed to among a majority of the Ground Lessors, to determine
if the Joint Consent Matter has a material and adverse impact on those Ground Lessors who voted
against the Joint Consent Matter (the "Dissenting Ground Lessor"). Each Ground Lessor shall
appoint one (1) arbitrator to a panel of arbitrators who will make such decision, and the decision
of the panel shall be final. If the number of Ground Lessors results in an even number of arbitrators,
28
the Ground Lessors collectively shall jointly appoint an additional arbitrator so that the panel
consists of an odd number. If the Ground Lessors cannot agree on the additional arbitrator within
ten (10) business days, the appointed arbitrators shall jointly appoint the additional arbitrator. All
Ground Lessors shall share equally in the costs and fees of such additional arbitrator. Each Ground
Lessor shall take reasonable and prudent actions so that any arbitration under this paragraph is
completed promptly and, in any event, within [90] days of the arbitration demand.
(c) Each Permitted Leasehold Mortgagee shall be deemed a third -party
beneficiary of the provisions of this Section 6 for the sole and exclusive purpose of entitling the
Permitted Leasehold Mortgagee to exercise its rights to enforce the provisions of this Section.
[SIGNATURE PAGE FOLLOWS]
29
SIGNATURE PAGE
TO GROUND LEASE
(Yaeger Plaza)
IN WITNESS WHEREOF, the parties have executed this Ground Lease as of the date first
written above.
ATTEST:
Date:
APPROVED AS
REQUI
By:
David Ru
Interim
LANDLORD:
CITY OF MIAMI, . srida municipal
corporation
By:
Arthur NorieV, City Manager
CE AND APPROVED AS TO FORM CORRECTNESS:
ec . r of Risk Management
APPROVED AS TO DEPARTMENTAL
REQUIREMENTS:
By:
Victor Turner
Director of the Department of Housing
and Community Development
By
K.Ui)
George K. Wys g
City Attorney
TENANT:
YAEGER PLAZA PARTNERS, LLC,
a Florida limited liability company
By: Yaeger Plaza Partners Manager, LLC
a Florida ' , ed liability co • any
By:
Nam
Title
EXHIBIT A
LEGAL DESCRIPTION OF PREMISES
Property Address: 1199 Northwest 62 Street, Miami, FL 33150
Property Folio No.: 01-3114-021-0950
Legal Description: Lots 1, 2, 3 and 4 and the West 15 feet of Lot 5 Block 5, WOODMERE,
according to the Plat thereof, as recorded in Plat Book 14, Page l lof the Public Records of Dade
County, Florida.
EXHIBIT "A"
ACTIVE 711782429v2
ACTIVE 716904713v2
EXHIBIT B
IMPROVEMENTS
EXHIBIT `B"
ACTIVE 711782429v2
ACTIVE 716904713v2
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TOTAL
11
IIIATIOIOFYIY
PROPERTY 1.1112
I STORY NIXED USE MATFAMRY BUILDING
1351NU5
NW 62NO STREET 116'2e1V1"E
(DR MARTIN LUTHER KING JR BOULEVARD)
SITE PLAN
SCALE: 1Est• 1'4
SITE NOTES
WOW, 101.202.2.1.05
.201.611.112 POP. MOP 2.0.166
aM m.214 Nw:WEw1n1MM
AT All 20/11a0 61.2.6.0122121200VAOMMG6
1.2122
6 W. MAX 0011962.00/6/0220620210,221,
L.W W 0.0290012 eW22010111612p14.111
•. Mt. 00211111.11A1120011
ROOF NOTES
• Da. QL 1* '" 0202
MEOW __ rlua6OMAM.
mu. 3 done502c0 WL 212.1.20
Err MO C000001 MOULT,
HARDSCAPE NOTES
Win`.. ON.
SUSTAINABILITY
STANDARD
101.0•11301.02064112211100.220012=0100
nNW.%.00n10w.,110W0 >erm
ZONING ANALYSIS
FOUR•01-l1HYi1.lII0,91-311Ki1-111D,01-111AR1L550,91-11]A011aff9. W.]11K11i9T9.O1.5ll4.21-0 0.01-111a-02.1d150,M-111K31d150,01.1114011.ID>, 61411M11-1910. and 12142.244621-1120
NET LOTAREADRN: 451513 F(12I7NIAa)
MIA 113111 Si faall NM Aa)
LOT AREA AND IF 11.813 NAIAIW)
COrSC
PLR NET LOT
T14011R
MASER LONE: TMO. TM
TH.
ALLOWED
PROPOSED
TM
AUDWED
PRCOOSED
comemED
PROPOSED
DEFRAY:
150 UMW Ave• 1D2]Ices • 153Ur
13EUEI
36Urals/Sae • 0E73=10 URN
134E
115 Units
BULM11050*147:
21e6$ues
ISues
3Sues
3Sbea
311 vanes
INp1E5D
PROFOSED
REQUIRED
MOIOIED
EROro5E0
NM. LOTCOVPAOE
Mhio%•M,562 SF.]$MI SF
32163 OF(72% d44.561 OF)
1110.60%• 11E11 OF• 1.H1 SF
2. 7 SF(20%0111.911 SF)
31,550 SF (61%0156A93
Ofl
MR. OPEN SPACE:
MA 105.,44.562 Of • 0565F
1E420 OF (10%DIM,SR SF)
MA 15%101E11 OF • 1,717 OF
9S2I SF I65% N 11,9115F)
1G314 SFI]9%M58491
FLOOR LOT RA110 IFLR)
YriX I0Mi0rIN P10N BwI0R (16'SQ Si •S•
222.910 SF MA%)
193, ND OF
WA
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WA
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PRIMARY FRONTAGE AT MO ST
aOm]15.N0
7O%•])I'-11'•165'
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NM
WA
WA
.EON SETBACKS
2110111.2
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A 10'ML 20' MN ABOVE "TM STORY
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1ST AWEIGH Tt
78'NIFROM3ROT05ThND SM SSTORY
46' MN MOVE 5TN STORY
6 ' PROW 1ST TOME/STORY
26' FRON 3RD TO 5M STORY
M'PBOJESM STORY
5'MN.
WOE T-I REAR 37'- 6.
5/A
PFRIONO CALCULATION
15S(MV DWR3
1.5 PS• 134 DAMN USN• 201 PS.
1.5• 1 Oman" UNI•2 P.S.
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WA
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APPROVAL MMRSTFD
CODE MFGENCE
REQUIRED
RANT TO Nikkei PARRINDIN ME SECOND LAYER
5m,. 3.15450)
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1141012.010 ID.11212i TW6E r0ONNES ILI• WWI
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11. 412110,416. MIN b ..hind Ia be Wand urr Mara the 2. Steno IaN6 a Mawr M Me mNw a.• weawlC lnwrwl:
4 Warrant to 15 wlPn Mock .5. aa epasswe be ...Maul.
S Warrant pursuant to t5a10b You
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lSSOL Me Prager, a a rite b me ...mum lot wvrnw Mae les Opw 64 m e.ss 40.000 q.Me MO.
7. Warrant nm..a s• 2. S.15 Nob Mow an...a 1516My r.Mrbn
NOTICE
P2-24-18166 y,^
CORWIL
PH91EL:
YAEGER PLAZA
1177 NW 62 5T
Miami, fL33150
BAIL
EXEMPTION SET
REVISIONS
Rewsion
Deta9fo^
Dee
xe¢
0Wr1411 OF ad Mamma MI OWN./ OD
AS 40.0 m n 1N.4062I0/1IMFOS
04/23/Z024
pgyy 2024.44
f2M13211L AMV/DA/GF
yp�Jy AMC
PEIMQ2 12121025 1:42:33IN
SNEETNUlER M:
A100
EXHIBIT Cl
INSURANCE REQUIREMENTS — VACANT LAND
CERTIFICATE OF INSURANCE
YAEGER PLAZA PARTNERS, LLC
Tenant shall obtain and keep in force during the Lease Term insurance policies (or binders)
evidencing the insurance coverages that meet the following requirements:
I. Commercial General Liability insuring Landlord and Tenant against any liability arising
out of the ownership, use, occupancy or maintenance of the Premises. Such insurance shall
be in the amount of not less than:
A. Limits of Liability
Bodily Injury and Property Damage Liability
Each Occurrence
General Aggregate Limit
Products/Completed Operations
Personal and Advertising Injury
B. Endorsements Required
$ 1,000,000
$ 2,000,000
$ 1,000,000
$ 1,000,000
City of Miami, its officials, employees and agents listed as an additional insured
Contingent and Contractual Liability
Premises and Operations Liability
Primary Insurance Clause Endorsement
Hired and Non Owned Auto Endorsement
II. Worker's Compensation as required by Chapter 440, Florida Statutes.
A. Limits of Liability
Statutory -State of Florida
Waiver of subrogation
III. Employer's Liability
A. Limits of Liability
$1,000,000 for bodily injury caused by an accident, each accident.
$1,000,000 for bodily injury caused by disease, each employee
$1,000,000 for bodily injury caused by disease, policy limit
Letter may be provided, if less than (4) employees
IV. Umbrella Liability
Each Occurrence
Policy Aggregate
$1,000,000
$1,000,000
ACTIVE 711782429v2
ACTIVE 716904713v2
EXHIBIT "C"
City of Miami, its officials, employees and agents listed as additional insured.
Coverage is excess follow form over the general liability and auto policies.
The above policies shall provide the City of Miami with written notice of cancellation or
material change from the insurer not less than (30) days prior to any such cancellation or
material change, or in accordance to policy provisions.
Companies authorized to do business in the State of Florida, with the following qualifications,
shall issue all insurance policies required above:
The company must be rated no less than "A-" as to management, and no less than "Class V"
as to Financial Strength, by the latest edition of Best's Insurance Guide, published by A.M.
Best Company, Oldwick, New Jersey, or its equivalent. All policies and /or certificates of
insurance are subject to review and verification by Risk Management prior to insurance
approval.
All insurance policies shall be submitted to the Landlord for approval, which approval shall
not be unreasonably denied.
#12034523 v1
30364-1153
ACTIVE 711782429v2
ACTIVE 716904713v2
EXHIBIT C2
INSURANCE REQUIREMENTS — CONSTRUCTION PHASE
CERTIFICATE OF INSURANCE
YAEGER PLAZA PARTNERS, LLC
Tenant shall obtain and keep in force during the Lease Term the insurance policies (or
binders) evidencing the insurance coverages that meet the following requirements:
I. Commercial General Liability insuring Landlord and Tenant against any liability arising
out of the ownership, use, occupancy or maintenance of the Premises. Such insurance shall
be in the amount of not less than:
A. Limits of Liability
Bodily Injury and Property Damage Liability
Each Occurrence
General Aggregate Limit
Products/Completed Operations
Personal and Advertising Injury
B. Endorsements Required
$ 1,000,000
$ 2,000,000
$ 1,000,000
$ 1,000,000
City of Miami, its officials, employees and agents listed as an additional insured
Contingent and Contractual Liability
Explosion, Collapse and Underground Hazard
Primary Insurance Clause Endorsement
Extended Completed Operations Endorsement proving 7 years coverage
extension following project completion, including City as additional insured
Including Crane and Rigging Liability, as applicable
II. Business Automobile Liability
A. Limits of Liability
Bodily Injury and Property Damage Liability
Combined Single Limit
Any Auto.
Including Hired, Borrowed or Non -Owned Autos
Any One Accident $1,000,000
B. Endorsements Required
City of Miami included as an additional insured
III. Worker's Compensation as required by Chapter 440, Florida Statutes.
EXHIBIT "C"
ACTIVE 711782429v2
ACTIVE 716904713v2
A. Limits of Liability
Statutory -State of Florida
Waiver of subrogation
IV. Employer's Liability
A. Limits of Liability
$1,000,000 for bodily injury caused by an accident, each accident.
$1,000,000 for bodily injury caused by disease, each employee
$1,000,000 for bodily injury caused by disease, policy limit
V. Umbrella Liability
A. Limits of Liability
Bodily Injury and Property Damage Liability
Each Occurrence $10,000,000
Policy Aggregate $10,000,000
City of Miami, its officials, employees and agents listed as additional insured.
Coverage is excess follow form over all liability policies contained herein.
VI. Payment and Performance Bond $TBD
City of Miami Listed as Obligee
VII. Completed Value Builder's Risk Insurance
A. Causes of Loss: All Risk -Specific Coverage Project Location
Valuation: Replacement Cost
Deductible: $50,000 All other Perils
$50,000Water Damage
5% maximum on Wind/Hail, Earth Movement and Flood
City of Miami listed as loss payee
Coverage Extensions: As provided by carrier
This coverage must be provided prior to the date any construction is commenced upon the
Premises.
#12034523 vl
30364-1153
ACTIVE 711782429v2
ACTIVE 716904713v2
The above policies shall provide the City of Miami with written notice of cancellation or
material change from the insurer not less than (30) days prior to any such cancellation or
material change, or in accordance to policy provisions.
Companies authorized to do business in the State of Florida, with the following qualifications,
shall issue all insurance policies required above:
The company must be rated no less than "A-" as to management, and no less than "Class V"
as to Financial Strength, by the latest edition of Best's Insurance Guide, published by A.M.
Best Company, Oldwick, New Jersey, or its equivalent. All policies and /or certificates of
insurance are subject to review and verification by Risk Management prior to insurance
approval.
• All insurance policies shall be submitted to the Landlord for approval, which approval shall
not be unreasonably denied.
#12034523 vl
30364-1153
ACTIVE 711782429v2
ACTIVE 716904713v2
EXHIBIT C3
INSURANCE REQUIREMENTS — COMPLETED IMPROVEMENTS
CERTIFICATE OF INSURANCE
YAEGER PLAZA PARTNERS, LLC
Tenant shall obtain and keep in force during the Lease Term the insurance policies (or
binders) evidencing the insurance coverages that meet the following requirements:
I. Commercial General Liability insuring Landlord and Tenant against any liability arising
out of the ownership, use, occupancy or maintenance of the Premises. Such insurance shall
be in the amount of not less than:
A. Limits of Liability
Bodily Injury and Property Damage Liability
Each Occurrence
General Aggregate Limit
Products/Completed Operations
Personal and Advertising Injury
B. Endorsements Required
$ 1,000,000
$ 2,000,000
$ 1,000,000
$ 1,000,000
City of Miami, its officials, employees and agents listed as an additional insured
Contingent and Contractual Liability
Premises and Operations Liability
Primary Insurance Clause Endorsement
Hired and Non Owned Auto Endorsement
II. Worker's Compensation as required by Chapter 440, Florida Statutes.
A. Limits of Liability
Statutory -State of Florida
Waiver of subrogation
III. Employer's Liability
A. Limits of Liability
$1,000,000 for bodily injury caused by an accident, each accident.
$1,000,000 for bodily injury caused by disease, each employee
$1,000,000 for bodily injury caused by disease, policy limit
Letter may be provided, if less than (4) employees
IV. Property
A. Commercial Property Insurance covering the Building and Business Personal
Property owned by YAEGER PLAZA PARTNERS, LLC. Commercial property
insurance shall, at a minimum, cover the perils insured under the ISO Special
EXHIBIT "C"
ACTIVE 711782429v2
ACTIVE 716904713v2
Causes of Loss Special Form (CP 10 30), or a substitute form providing equivalent
coverages written on an All Risk or Direct Physical Loss or Damage basis with no
coinsurance, including wind and named storm coverage and hail not to exceed 5%
deductible depending on market conditions, along with earth movement and flood.
Coverage should be included for debris removal, and demolition and increased cost
of construction that are caused by legal requirements regulating the construction or
repair of damaged facilities or subject property, including an ordinance and law
endorsement, in an amount of not less than the replacement cost of the property
insured and leasehold improvements (exclusive of foundation and excavation
costs), trade fixtures and floor coverings. In addition, the policy should afford
coverage for sprinkler leakage, extended coverage including vandalism and
malicious mischief, as well as coverage for time element relative to loss of rents,
along with boiler and machinery coverage, if applicable. The amount of insurance
shall equal the total estimated replacement cost of all real and business personal
property owned by YAEGER PLAZA PARTNERS, LLC.
The City of Miami shall be listed as loss payees under this policy.
V. Umbrella Liability
Each Occurrence
Policy Aggregate
$10,000,000
$10,000,000
City of Miami, its officials, employees and agents listed as additional insured.
Coverage is excess follow form over the general liability and auto policies.
VI. Directors and Officers Liability
A. Each Claim $1,000,000
Policy Aggregate $1,000,000
Retroactive date coverage included
VII. Flood Insurance, to the extent that the Premises are founded to be within a flood
hazard zone, in an amount not less than the full replacement value of the completed
development, or the maximum amount of coverage available through the National Flood
Insurance Program, whichever is greater. This policy must be provided at such time as the
buildings' walls and roof exists.
The above policies shall provide the City of Miami with written notice of cancellation or
material change from the insurer not less than (30) days prior to any such cancellation or
material change, or in accordance to policy provisions.
Companies authorized to do business in the State of Florida, with the following qualifications,
shall issue all insurance policies required above:
#12034523 vl
30364-1153
ACTIVE 711782429v2
ACTIVE 716904713v2
The company must be rated no less than "A-" as to management, and no less than "Class V"
as to Financial Strength, by the latest edition of Best's Insurance Guide, published by A.M.
Best Company, Oldwick, New Jersey, or its equivalent. All policies and /or certificates of
insurance are subject to review and verification by Risk Management prior to insurance
approval.
All insurance policies shall be submitted to the Landlord for approval, which approval shall
not be unreasonably denied.
#12034523 vl
30364-1153
ACTIVE 711782429v2
ACTIVE 716904713v2
ACTIVE 716904713v2