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Res No 118-17-14919RESOLUTION NO.118-17-14919 A Resolution relating to Affordable Housing Mixed-Use Redevelopment; approving,in principal,the form of the Agreements between the South Miami Community Redevelopment Agency ("SMCRA")and Abreu Development LLC for the conveyance of the properties known as the Madison Square and Marshall Williamson parcels in exchange for construction of Low-Income and Workforce housing as well asa mixture of affordable commercial space and proprietary commercial space fora Family Dollar store and a 40 year land use restriction agreement for the rental operations of the mixed use development. WHEREAS,the SMCRA adopted redevelopment plan identifies the Madison Square Project asits cornerstone redevelopment project and asa means of providing a development anchor at this vital historic location;and WHEREAS,the plan directs the Agency to obtain land-use and zoning amendments required to implement the project;and WHEREAS,following City Commission approval of required land-use and zoning amendments,a request for letters of interest and qualifications was published on January 7,2013;and WHEREAS,a purchase and sale agreement was entered into with Strategic Green Mills,LLC which was contingent on the Developer obtaining tax credit financing and which was terminated when timely tax credit financing was not obtain;and WHEREAS,following direction from the City Commission and the SMCRA the City Manager contacted Abreu Development LLC (proprietary licenseeofFamily Dollar)in September,2015 and project negotiations subsequently commenced;and WHEREAS,a draft project Development and LandUse Restriction Agreement was provided to the SMCRA Boardfor review onMay30,2017;and WHEREAS,the City Commission desires to fulfill the goalsand objectives of the SMCRA redevelopment plan including the removal ofslum and blight by providing meaningful economic development and affordable housing opportunities in the SMCRA and surrounding area. NOW THEREFORE BEIT RESOLVED BY THE CITY COMMISSION OF THE CITY OF SOUTH MIAMI,FLORIDA THAT: Section 1.TheCity Commission approves,in principal,of the form of the Development Agreement,the LandUse Restriction Agreement and the Purchase and Res.No.118-17-14919 Sale Agreement between the SMCRA and Abreu Development LLC for construction of the Madison Square/Marshall Williamson mixed-use,affordable and workforce housing redevelopment project including the development of affordable commercial space and aFamily Dollar store.This preliminary approval isin anticipation of the prompt negotiations and completion of the agreements for final Commission approval and authorization to proceed with the required statutory notice process to solicit competitive proposals.The form of the documents that are preliminarily approved for the sale of the Property,construction of the Madison Square/Marshall Williamson mixed-use,affordable housing redevelopment project,including the development of affordable commercial space and a Family Dollar store,and the 40 year restrictive covenant for operations of the Development,are attached as Exhibit A Section 2.In the event that the SMCRA receives alternative or competing proposals,after advertising the notice required byFlorida Statue,Section 163.380,the SMCRA board may negotiate with the new Developer but it shall not execute any documents committing itself to the sale of the property to the new Developer without first obtaining final approval of the sale from the City Commission. Section 3.Severability.If any section clause,sentence,or phrase of this resolution is for any reason held invalid or unconstitutional bya court of competent jurisdiction,the holding shall not affect the validity of the remaining portions of this resolution. Section 4.Effective Date.This resolution shall become effective immediately upon adoption. PASSED ANDADOPTED this 6th day of June _,2017. ATTEST: READ AN 0. LANG] ROVED AS TO FORM, GALI/fY/AfSld\ THEREi ORNEY APPROVED i MAYOR COMMISSION VOTE:5-0 Mayor Stoddard:Yea Vice Mayor Welsh:Yea Commissioner Harris:Yea Commissioner Edmond:Yea Commissioner Liebman:Yea Page 2 of2 Sol ith'Miami office of the city manager THE CITY OF PLEASANT LIVING CITY OF SOUTH MIAMI CE OF THE CITY MANA< INTER-OFFICE MEMORANDUM To:The Honorable Mayor &Members of the City Commission From:Steven Alexander,City Manager a *k Date:June 6,2017 Agenda Item No.:Jj^S *^^ Subject:A Resolution relating to Affordable Housing Mixed-Use Redevelopment;approving,in principal,the form of the Agreements between the South Miami Community Redevelopment Agency ("SMCRA")and Abreu Development LLC for the conveyance of the properties known as the Madison Square and Marshall Williamson parcels in exchange for construction of Low-Income and Workforce housing as well as a mixture of affordable commercial space and proprietary commercial space foraFamilyDollar store and a 40 year land use restriction agreement for the rental operations of the mixed use development. Background: The redevelopment plan adopted by the SMCRA identifies the Madison Square Project as its cornerstone redevelopment project and as a means of providing a development anchor at thisvital historic location. A purchase and sale agreement was entered intowith Strategic Green Mills,LLC that was contingent on the Developer obtaining tax credit financing and which was terminated when timely tax credit financing was not obtained. TheCity Commission and the SMCRA directed the City Manager to contact the FamilyDollarto determine if they had any interest in developing a store at the Madison Square site.Abreu Development LLC (proprietary licensee of Family Dollar)was contacted in *September 2015 and project negotiations subsequently commenced. TheSMCRA and the City Commission have conceptually agreed upon approval of required land-use and zoning actions,which were approved by the Planning Board on May 30,2017 with a vote of 5-1. SoiJth'M13mi office OF THE CITY MANAGER THE CITY OF PLEASANT LIVING CITY OF SOUTH MIAMI CE OF THE CITY MANA< INTER-OFFICE MEMORANDUM A draft project Development and Land Use Restriction Agreement was provided to the SMCRA Board for review on May 30,2017 which has been generally agreed to by our outside counsel as well as the counsel for the Developer.A substantially similar set of documents is attached as Exhibit'A.The attachments include: Draft documents for the sale of the Property,construction of the Madison Square/Marshall Williamson mixed-use,affordable housing redevelopment project,including the development of affordable commercial space and a FamilyDollar store,and the 40-year restrictive covenant for operations of the Development. Once properly advertised the City Manager along with the Executive Director of the SMCRA will evaluate all qualified responsive proposals and make a recommendation along with negotiated business agreements and zoning actions as necessary.These documents will be provided to the appropriate Boards of the City for final action. Recommendation: It is recommended that the CityCommission approve this resolution,which authorizes the SMCRA to proceed with perfecting the business documents and advertise the project as required inFlorida Statute,Section 163.380. m X. AGREEMENT OF PURCHASE AND SALE THIS AGREEMENT OF PURCHASE ANDSALE ("Agreement")ismadethis day of ,2017 (the "Effective Date")byandbetweenSouthMiamiCommunity Redevelopment Agency ("Seller"),and ,and/oritsassigns("Buyer"). WITNESSETH: WHEREAS,Sellerownscertainrealpropertycomprisedofapproximately2.4acreslocatedinthe CityofSouthMiami,Miami-Dade County,Florida,asmoreparticularlydescribedinExhibit "A"attached heretoandmadeapart hereof ("Property"), WHEREAS,BuyerwishestopurchasethePropertyandanyandallimprovementslocatedthereon, fromSeller,forthepurposeofdevelopingandconstructingthereontheimprovementsdescribedinthat agreementforDevelopment(the"DevelopmentAgreement")attachedheretoinExhibit "B"(withsuch modificationsasmaybeagreedtobytheSellerandBuyerinwritingandhereinafterreferredtoasthe "Project")andSellerwishestosellthePropertyandanyandall improvements located thereonto Buyer, pursuant to the terms and conditions setforthherein. NOW,THEREFORE,in consideration ofthemutualpromiseshereinaftersetforth,SellerandBuyer agree as follows: L Purchase and Sale.Seller agrees toselland convey andBuyer agrees to purchase the Property,which shall include allof right,titleand interest of Seller inandto(i)all easements,rights ofway,privileges, licenses,appurtenances andany other rights,privileges and benefits belonging tothe owner of,running with titleto,orinanywayrelatedto,the Property;(ii)alllanduseorotherconsents,authorizations,variances, waivers,licenses,permits,approvals,development orders,oranyother entitlements issued or granted byor from any governmental authority with respect tothe Property;(iii)all percolation,soil,topographical,traffic, engineering and environmental reports or studies inthe possession or control ofthe Seller,andall riparian, littoral rights,titleto submerged landsandotherwater rights related toor benefiting the Property;(iv)all utility mains,service laterals,hydrants,connections,hook-ups andvalves located on,or adjacent to,and servicing or available to service the Property;and(v)anyandallother agreements,contracts,covenants,variances and rights,benefits and privileges related toor benefiting the Property. 2^Purchase Price.The purchase price forthe Property ("Purchase Price"),which Buyer agrees topayand Seller agrees to accept,isTenand No/100 Dollars ($10.00),and shall bepaidat Closing aswellas the promises ofthe Buyers as contained inthe attached Development Agreement andLandUse Restriction Agreement ("LURA").Thecash Purchase Priceshallbepayablebycheck 2L Title Insurance/Survey. (a)Withinthree(3)businessdaysfollowingtheEffectiveDate,Sellershalldeliverto Buyer a copy of Seller's title insurance policy insuring Seller's fee simple title tothe Property,if any,and a copy of Seller'sexisting boundary survey ofthe Property,if any.Within twenty (20)daysafterthe Effective Date, Buyer,atitssolecost and expense,shall obtain an owner's title insurance commitment ("Title Commitment") from a nationally recognized title insurance company acceptable to Buyer.Marketable title shall be determined accordingtotheTitleStandardsadoptedbyauthorityofTheFloridaBarandinaccordancewithFloridalaw. Following the Effective Date,Buyermay order an ALTA/ACSM survey oranupdateof Seller's existing survey, prepared bya Florida licensed surveyor and depicting the Property and all.of the plottable exceptions tothe Title Commitment ("Survey").Buyer shall have until the expiration ofthe Inspection Period within which to examine the condition ofSeller'stitletothe Property.IftheTitle Commitment orthe Survey reflectsthattitle tothe Property is subject toany exceptions orother survey matters unacceptable to Buyer,Buyer shall,priorto #5733607 vl PSA ver2 42746-0001 1 theexpiration of theInspectionPeriod,notifySellerinwritingofthespecifictitledefects("TitleObjections"). AnyexceptionslistedintheTitleCommitmenttowhichBuyerhasnottimelyobjectedshallbedeemedtobe "PermittedExceptions."Seller,atSeller'ssolecostandexpense,shalluse commercially reasonableeffortsto correctorremovesuchTitle Objections withinthirty(30)daysafterreceipt of noticefromBuyer.If Selleris notsuccessfulincorrectingor removing theTitleObjectionwithinsuch thirty (30)dayperiod,Buyer shall havetheoptionofeitheracceptingthetitleinitsexistingcondition,or of terminatingthisAgreementby sendingwrittennotice of termination toSeller.IntheeventthatBuyerelectstoterminatethis Agreement,then neitherBuyernorSellershallhaveanyfurtherliabilitiesorobligationshereunderexceptwithrespecttothose obligationswhichexpresslysurvivetermination. (b)Seller covenants andagrees that afterthe Effective Dateit shall notenterintoorrecordany documentorinstrument,orenterintoanyleaseorotheragreement,affectingorburdeningtheProperty,unless Buyerhasconsentedinwritingtotheexecutionorrecordationof such document,instrument,leaseor agreement.IfanyupdatedendorsementtotheTitleCommitmentoranyupdateoftheSurveyobtainedpriorto ClosingrevealsanyexceptionorsurveydefectnotreflectedontheTitleCommitmentortheSurveythatwasnot consentedtobyBuyer,Seller,atSeller'ssolecostandexpense,shallhavesuchexceptiondeletedfromtheTitle Commitment,orsuchsurveydefectremovedorcuredpriortoClosing.IfSellerisnotsuccessfulinremoving the same bytheClosingDate,Buyershallhavetheoption of eitherproceedingtoClosingorterminatingthis Agreementbysendingwrittennotice of terminationto Seller.IntheeventSellerfailstoremoveanexception revealedintheTitle Commitment,oranyupdatethereof(whetherornot objected tobyBuyer),intheformof: (1)amortgageorothersecurityinterestenteredintoby Seller;(2)alienorencumbranceofanykindornature voluntarilycreatedbySelleratanytimeonorafterthedateofthisAgreement;or(3)a mechanic's or materialman's lienorajudgmentdocketedagainstthe Property,inanycaseresultingfromthe non-payment by Seller of anysumsallegedtobedueandowingbySellertoacontractorormaterialmanorotherwisevoluntarily causedorcreatedbySeller,thenBuyershallbe entitled torecoverfromSellerallthirdpartycostsincurredby Buyer,including reasonable attorneys1 feesandcosts,in connection withthisAgreementandthePropertyand, inthecaseBuyer proceeds to Closing,anyandallsumstobe expended byBuyertocureanysuchtitle exception (whichrecoverymayincludeacredittothePurchasePrice). 4.Inspection Period. (a)Fortheperiod(the "Inspection Period"),beginning withthe Effective Dateand continuinguntil11:59PMEasternTimeonthedatethatisonehundredandtwentysixty (+2060)calendar daysaftertheEffectiveDate,SellerherebygrantstoBuyertherighttomakeorobtainanyandall investigations,tests,studies,evaluations,assessmentsandreportsBuyerdeemsnecessaryordesirablewith respect totheProperty. (b)DuringtheInspectionPeriod,SellerherebygrantstoBuyeranditsagents,employees, contractors and representatives,arightofentry upon every portionofthe Property,andarightto examine all records,documents,dataorinformationofanykindornaturerelatingtoorconcerningthePropertyinthe possession orunderthecontrolofSellerorother matters pertainingtotheProperty(andSellerherebyagrees tomakeanyandallrecords,documents,dataor information of anykindornaturerelatingtoorconcerningthe Property inthe possession orunderthe control of Seller available to Buyer)fromtimetotimeatall reasonable timesforthepurposeofmakingsurveys,engineering studies,drainagestudies,appraisals,zoningandlanduse studies,impact studies,surfaceand subsurface explorations,tests,excavations,borings andsuchother investigations,inspections,assessments orreportsas Buyer,initssoleand absolute discretion,mayelectto make.SellershalldelivertoBuyer,withinwithinareasonabletimeaftertheEffectiveDate,anduponwritten request identifying withspecificitysuch documents asareknowntoexistsuchas.grantsusedbySellerto acquirethePropertyandanyotherdocumentthatcontainsrestrictionsandrequirementsencumberingthe development,construction anduse of theProperty. (c)BuyerassumesliabilityforallactsofitsagentswhoenterontothePropertyandagreesto #5733607 vl PSA ver2 42746-0001 indemnify andhold harmless theSellerfromanyloss,damage,costorexpenseincurredby Seller asa result ofsuchactsofBuyeranditsagentsthatcauseinjurytopersonsordamagetothe Property. (d)A condition tothesaleisthatallutilities,including,without limitation,water,sewer, electricity,telephone,gasandcabletelevisionwhicharenecessaryordesirableandinthecapacitiesorsize requiredfordevelopment of thePropertyareavailableatorneartheboundariesofthePropertyattherates generallychargeabletodevelopersinMiami-DadeCounty,Florida; (e). (f)NotwithstandinganyprovisioninthisAgreementtothecontrary,atanytimeonorbeforethe end of theInspectionPeriod,Buyermay,withoutliabilitytoSellerandforanyreasonornoreason whatsoever,terminatethisAgreementbywrittennoticeto Seller.Uponsuch termination,bothpartiesshall bereleasedfromall further obligations or liability under this Agreement exceptforthose obligations which expressly survive termination. (g)IfBuyerhasnot terminated this Agreement,as provided herein,therightofentry and investigation granted hereinshall continue unabated through Closing. 5.Government Approvals. (a)Buyer's obligation to purchase the Property from Seller is contingent upon obtaining the final issuance,of:(i)all zoning and other governmental approvals from applicable governmental authorities having jurisdiction over the Property,to permit the construction,completion and operation ofthe Project;(ii) final site plan approval,for which all appeal periods have expired with no appeal having been filed,forthe Project from the applicable governmental and regulatory authority(ies);(iii)concurrency and utility approvals;(iv)storm water drainage permit issued by the relevant drainage district;(v).building permits issued by the relevant municipality or county;and (v)any other governmental and regulatory approvals and/or permits required in connection with the construction ofthe Project (collectively the "Government Approvals").Buyer shall directthe process of obtaining the Government Approvals and Seller agrees to cooperate with Buyer in performing itsdue diligence with respect tothe Property and in seeking any and all Government Approvals regarding the Property as Buyer may request,and Seller shall promptly cooperate with Buyer inall applications for Government Approvals and other permits or approvals,the granting ofor entry into which,by any governmental or quasi-governmental authority having jurisdiction overthe Property, is,in Buyer's reasonable opinion,necessary to permit the development,construction,use or occupancy ofthe Project.Buyer shall payall reasonable and documented costs incurred by Buyer,in obtaining the Government Approvals necessary to proceed to Closing. (b)Final issuance ofthe Government Approvals shall be deemed to occur only when allofthe Government Approvals have been issued or granted by the applicable governmental and quasi-governmental boards and agencies,all appeal periods have expired and any appeals filed have been finally and favorably determined.Ifthis condition precedent isnot satisfied onor before the Closing Date then Buyer shall be entitled to extend the Closing Date,forupto three (3)periods ofupto thirty (30)days each,in which to obtain the Government Approvals,orinthe alternative,Buyer may terminate this Agreement and upon such termination by Buyer,the parties shall be relieved of ail further liability under this Agreement,except for those obligations which expressly survive termination ofthis Agreement. 6.Intentionally Omitted 7.Equity andDebt Financing Approvals.Buyer's obligation to purchase the Property from Selleris contingent upon Buyer obtaining the final issuance ofa sufficient amount of debt and equity financing to finance the development,construction and operation ofthe Project on terms acceptable to Buyer ("Financing #5733607 vl PSA ver2 42746-0001 Approvals").Buyershall direct theprocess of obtainingtheFinancingApprovals.Selleragreestocooperate withBuyerandshalltakesuchactionsasBuyershallreasonablyrequestinmakingits application forthe Financing Approvals and closing thedebtandequity financing obtained in connection therewith.Ifthis conditionprecedentisnot satisfied onorbeforetheClosingDatethenBuyershallbeentitledtoextendthe ClosingDate,forupto three (3)periods of uptothirty(30)dayseach,inwhichto obtain theFinancing Approvals,orinthe alternative,Buyer may terminate this Agreement anduponsuch termination byBuyer, thepartiesshallberelieved of allfurtherliabilityunderthisAgreement,except forthose obligations which expressly survive termination of this Agreement. 8.Covenants of Seller;Operation oftheProperty.Sellerherebycovenantsandagrees that from and after the Effective Date: (a)Sellerwillnot,withouttheBuyer'spriorwrittenconsent,createbyitsconsentany encumbrancesontheProperty.Forpurposesofthisprovisiontheterm"encumbrances"shallinclude,butnot belimitedto,anyliens,claims,options,orotherencumbrances,encroachments,rights-of-way,easements, covenants,conditions or restrictions. (b)Sellershallpayallassessmentsandtaxespriortobecomingdelinquent. (c)Sellerwillnotcreateorconsenttothecreationofanyspecialtaxingdistrictsorassociations withthe authority to impose taxes,liensor assessments onthe Property.Sellerwillnotremoveanyfillor causeanychangetobemadetotheconditionofthe Property withoutthepriorwrittenconsentofthe Buyer. (d)SellershalltakenoactionwithrespecttothePropertythatwouldalteroraffectanyofthe representations or warranties ofSellerunderthis Agreement orwhichwouldinanymanneraffect Buyer's futureuseand development of theProperty. 9.Closing Conditions. (a)Buyer'sobligationtoclosethistransactionshallbesubjecttothesatisfaction of eachofthe following conditions onor before the Closing Date: (i)Sellershallnotbeindefaultunderanyterm,covenantorconditions of thisAgreement orshallhavecuredsuchdefaultwithin30daysofpriorwrittennoticefromBuyer. (ii)Eachofthe representations and warranties ofSellersetforthinthisAgreementshallbe true,completeandcorrectatthedateoftheClosingasifmadeatthattime,andtheSellershallhave delivered its certificate to such effect. (iii)BuyershallhavereceivedallnecessaryGovernmentApprovals,FHFCApprovaland Financing Approvals. (iv)Thereshallnotbeasewer,water,buildingorothermoratoriumineffectwhichwould interferewiththeimmediate construction andoccupancy of the Project ("Moratorium"). (v)AttheClosing,theTitleInsuranceCompanyshallirrevocablycommittoissueto BuyeranALTAOwner'sPolicyoftitle insurance,datedasofthedateandtime of therecording of thedeed,inthe amount of the Purchase Price,insuring Buyer as owner of good,marketable and indefeasiblefeesimpletitletotheProperty,freeandclearofliensandencumbrances,andsubject onlytothePermitted Exceptions ("Title Policy")includingeasements,restriction and limitations of record. #5733607 vl PSA ver2 42746-0001 (vi)SoleandexclusivepossessionofthePropertyshallbedeliveredtoBuyeratClosing. IntheeventthatanyoftheforegoingconditionsprecedenttoClosinghave not beensatisfiedas of the ClosingDate,Buyershallhavetherighttowaiveanyorall of theforegoingconditionsandclosethistransaction orBuyershallhavetherighttoterminatetheAgreement,andinsucheventneitherpartyshallhaveanyfurther rightsorobligationshereunder,exceptthoseobligationswhichsurviveterminationoftheAgreement.Ifatthe timeofClosing,thereisaMoratoriumineffectwithrespecttothePropertyasdescribedherein,thenatBuyer's option(bywrittennoticetoSeller):(i)thisAgreementshallbeterminatedandneitherpartyshallhaveany furtherrightsorobligationshereunder,exceptthoseobligationswhichsurvive termination oftheAgreement;or (ii)theClosingDatemaybeextendedtotheearlieroftwenty(20)daysafterthedatetheMoratoriumisliftedor six(6)months from thescheduled Closing.If theClosingDateisextendedandifthe Moratorium isstillineffect six(6)monthsfromthescheduled Closing,thenunlessBuyerwaivestheexistenceofsuchMoratoriumasa Closingconditionandelectstoclosethis transaction,this Agreement shallbeterminatedandneitherpartyshall haveanyfurtherrightsor obligations hereunder,exceptthose obligations whichsurviveterminationofthe Agreement.If Buyerwaivessuch condition,theClosingshalltakeplacewithintwenty(20)daysafter expiration of suchsix(6)monthperiod. (b)Seller'sobligationtoclosethistransactionshallbesubjecttothe satisfaction of eachofthefollowingconditionsonorbeforetheClosingDate: (i)Buyershallnotbeindefaultunderanyterm,covenantor conditions ofthisAgreement orshallhave cured suchdefaultwithin 30 days ofprior written noticefrom Seller. (ii)Buyershallhavemetallofthe conditions precedentsetforthinthe Development Agreement ("0 (iv)Buyershallhave acknowledged andagreedtoassumeandbeboundbytherestrictions imposedontheowneroftheProperty pursuant tothegrant agreements described inthe Development Agreement. (v)Buyer's financing shall(A)allow the construction ofaprojectwhichdoesnot materiallydeviatefromtheProject(B)allowforapaymentandperformancebondorletterofcredit supportingcompletionof construction oftheProject(C)allowinsurance requirements meetingthe conditions setforthinthe Development Agreement,ata minimum (D)allowthe Developer/Owner to committo completion of construction nolaterthan 15 months afterthedateof Closing,subjectto such extensions asthe lender or equity provider may agree tofor matters outside the control ofthe Buyer(E)allow for compliance with applicable building codes and(F)allow applicable affordable housing restrictions (G)allow theSellerto enforce the rights and remedies provided totheSellerin theLURA. (vi)Eachofthe representations and warranties ofBuyersetforthinthisAgreementshallbe true,complete andcorrectatthedateofthe Closing asifmadeatthattime,andtheBuyershallhave delivereditscertificatetosucheffect.These representations andwarrantiesshallsurvivetheclosing. Intheeventthatanyofthe foregoing conditions precedent toClosinghavenotbeen satisfied asofthe ClosingDate,Sellershallhavetherighttowaiveanyoralloftheforegoingconditionsandclosethis transactionorSellershallhavetherighttoterminatethe Agreement,andinsucheventneitherpartyshallhave anyfurtherrightsorobligationshereunder,exceptthose obligations whichsurviveterminationofthe Agreement. 10.ClosingDocuments.TheClosingdocumentsshallbeprovidedbythepartiesassetforth #5733607 vl PSA ver2 42746-0001 below,informacceptabletoBuyer: (a)AtClosing,Seller shall execute and/ordelivertoBuyer: (i)SpecialWarrantyDeed.Aspecial warranty deedin recordable form,duly executed by theSeller,conveyingtotheBuyergood,marketableandinsurablefeesimpletitle,assetforth,limited anddescribedintheDevelopmentAgreement,tothePropertysubjecttothePermittedExceptions, withthelegaldescriptionprovidedintheCommitment. (ii)Affidavit.An owner's and contractor's affidavit adequate fortitle insurance tobeissued bytheTitle Company without exception forpartiesin possession,mechanics'or materialmens'liens, taxesandassessmentswhicharenotshownasexistingliensinthepublicrecordsandtopermitthe TitleCompanytodeletethe"gap"intheTitleCommitment. (iii)FIRPTAAffidavit.InordertocomplywiththerequirementsoftheForeignInvestment RealPropertyTaxAct of 1980("FIRPTA"),SellerwilldelivertoBuyeratClosingSeller'saffidavit underpenaltyofperjurystatingtheSellerisnota"foreignperson,"asdefinedinSection1445ofthe InternalRevenueCode of 1986andtheU.S.TreasuryRegulationsthereunder,settingforthSeller's taxpayeridentificationnumber,andthatSellerintendstofileaUnitedStatesincometaxreturnwith respecttothetransfer,ifrequired. SellerrepresentsandwarrantstoBuyerthatithasnotmadenordoesSellerhaveany knowledgeofanytransfer of thePropertyoranypartthereofthatissubjecttoanyprovisions of FIRPTAthathasnotbeenfullycompliedwithbyeithertransferorortransferee. (iv)Adulyexecutedcertificationthateveryrepresentationandwarranty of Sellerunderthis Agreement istrueandcorrectasoftheClosingasifmadebySelleratsuchtime; ""(v)Anyandalldocuments reasonably requestedbyBuyerorthetitlecompanyin connectionwithSeller'sauthoritytoexecutethisAgreement,thedeedandallotherdocuments contemplated under this Agreement; (vi)AclosingstatementpreparedbytheBuyer'sclosingagentsettingforthallamounts paid,creditedandotherwisedue,payableandpaidhereunder("Closing Statement");and (vii)Such additional documents or instruments asmaybe required to effectuate theterms, conditionsandprovisions hereof andtocarryouttheintentofthepartieshereto,orasmaybe reasonablyrequiredbythetitleinsurance company,soastobeabletodeleteatClosingallofthe requirements ofSchedule B-Section 1oftheTitle Commitment andallofthestandardprinted exceptions (other thanthe exception for taxes and assessments forthe current yearnotyetdueand payable,andthesurveyexception,whichshallbelimitedtothespecificmattersaffectingtheProperty reflectedontheSurvey)fromScheduleB-Section2oftheTitleCommitment,andtoinsurethegap between theeffectivedate of theTitleCommitmentandtherecordingofthedeed conveying titleto the Property from Seller toBuyer. (b)At Closing,Buyer shall deliver toSeller: (i)ClosingStatementexecutedincounterpartsettingforthallamountspaid,creditedand otherwise due,payableandpaidhereunder("ClosingStatement"); (ii)The Purchase Price(asadjustedforallcredits,adjustments and prorations setforthin this Agreement); #5733607 vl PSA ver2 42746-0001 (iii)Fully executed Development Agreement (iv)Suchadditionaldocumentsor instruments asmaybe reasonably requiredorrequested bySellertoeffectuatetheterms,conditionsandprovisionsofthisAgreement; (v)Adulyexecuted certification thatevery representation andwarrantyofBuyerunder thisAgreementistrueandcorrectasoftheClosingasifmadebyBuyeratsuchtime;and (vi)AnAgencyLandUse Restriction AgreementintheformattachedtotheDevelopment Agreementattachedhereto,whichshallberecordedimmediatelyfollowingtherecording of thedeed andbeforethe recording of any encumbrance. 11.Closing/Closing Expenses.Exceptas otherwise providedherein,the consummation ofthetransaction describedinthis Agreement ("Closing")shalltakeplaceattheofficesof Buyer's counselin Miami-Dade County,Floridaorbymailnolaterthanone hundred eighty (180)daysafterthe Effective Date ("Closing Date").At Closing,Buyer shall payall closing costs.including thecostofstate documentary stamps and surtaxonthewarrantydeed,alltitlesearchfeesandothercostspertainingtotheTitleCommitmentandfor thetitle insurance premium onthe owner's title insurance policy tobeissuedto Buyer pursuanttotheTitle Commitment inanamountequaltothe Purchase Price (orsuch other amountasBuyer requires),thefeefor recording the warranty deed,andthe costs ofthe Survey.Each party shallpayitsown attorneys'fees.If Closingdoesnotoccurbythe Closing Date,thenanypartynot in1 material defaulthereundermayterminate this Agreement,subject to provisions which survive termination.Provided however,if closing doesnotoccur asaresultofBuyer's inability to obtain the Government Approvals orthe Financing Approvals,Buyer shall beentitledto extend the Closing Date,forupto three (3)periods ofuptothirty (30)days each,inwhichto obtain the Government Approvals and/or Financing Approvals orinthe alternative,ifBuyer does not request an extension,eitherpartymay terminate this Agreement and upon such termination byBuyeror Seller,the partiesshallbe relieved ofallfurther liability under this Agreement,exceptforthose obligations which expresslysurvivetermination of thisAgreement. 12.Prorations.The following items shallbe adjusted,apportioned,and allowed asofthe ClosingDate: (a)Special Assessment Liens.If,onthe Closing Date,the Property or any part thereof,shall beor shall havebeen affected byany certified,confirmed,and ratified special assessment liens,the same shallbe paidand discharged by Seller.Pending liens shall be assumed by Buyer;provided,however,thatoncethe amount ofa pending special assessment lien has been finally determined,the amount ofthe special assessment lien shall be prorated andSellershall reimburse Buyer forany amounts paidbyBuyerwhichare allocable tothe period oftime Seller owned the Property within thirty (30)days of Buyer's delivery toSeller ofthe proration statement. {b}Real Estate Taxes.Ifthe Closing shall occur before the tax rate is fixed,the apportionment of taxes shall be based upon the real estate taxes for the previous year.Ifthetax rate isnot fixed at Closing,the parties agree to make an appropriate adjustment upon the issuance ofthe actual statement forthe taxable year. Thus,ifatthetimeof Closing,thetaxesforthe current year have not been finally determined,Seller or Buyer,asthe case may be,agree to pay any balance later found tobedueonthe reproration ofthe actual taxes fortheyearin which the Closing occurred,within thirty (30)days ofthe determination thereof. (c)The provisions ofthis section shall survive the Closing. 13.Representations and Warranties. (a)Seller represents andwarrantstoBuyerand covenants andagreeswithBuyeras follows: #5733607 vl PSA ver2 42746-0001 (i)ExceptasdisclosedinwritingtoBuyer,Sellerhasnotenteredintoanycontracts, subcontracts,arrangements,leases,licenses,concessions,easements,orotheragreements,either recordedor unrecorded,written or oral,affecting all,oranyportionof,oranyinterestinthe Property, whichwillnothavebeen terminated orexpiredpriortoClosing; (ii)ExceptasdisclosedinwritingtoBuyer,thereareno:(1)existingorpending improvement orspecial assessment liens affecting the Property;(2)violations of building,codesand/or zoningordinancesorothergovernmentalorregulatorylaws,ordinances,regulations,ordersor requirements affectingthe Property;(3)existing,pending or threatened lawsuits,orappealsofprior lawsuits,affecting the Property;(4)existing,pendingorthreatened condemnation proceedings affectingtheProperty;(5)existing,pendingorthreatenedzoning,buildingorothermoratoria, downzoning petitions,proceedings,restrictive allocationsorsimilarmattersthatcouldadverselyaffect the development of theProject;or(6)unrecorded easements,restrictions or encumbrances affectingall oranypartoftheProperty;Sellerhasnotused,manufactured,stored,orreleasedany "Hazardous Materials"(ashereinafterdefined)on,inoraroundthe Property,and,tothebestofSeller's knowledge, nootherpersonorentityhaseverused,manufactured,storedorreleasedanyHazardousMaterialson, inoraroundtheProperty,and,tothebestofSeller'sknowledge,noHazardousMaterialsarepresent in,on,underoraroundtheProperty.Asusedherein,"HazardousMaterials"shallmean(i)any hazardous,toxic,ordangerouswaste,substanceormaterial,asdefinedforpurposes of theComprehensive Environmental ResponseCompensationand Liability Actof1980,asamended,theResource Conservation and RecoveryActof1976,asamended,oranyotherfederal,stateorlocallaw,ordinance,ruleorregulation applicable tothePropertyand establishing liability,standards,orrequiringactionasto discharge,spillage, storage,uncontrolledloss,seepage,filtration,disposal,removal,useorexistenceofahazardous,toxic,or dangerouswaste,substanceormaterial (collectively,"Environmental Laws")and(ii)anywaste,substanceor materialwhich,evenifnotsoregulated,isknowntoposeahazardtothehealthandsafety of theoccupantsor future occupants ofthe Property,orofthe property adjacent tothe Property.Sellerfurtherrepresentsand warrantsthat,tothebestofSeller's knowledge,noportionofthePropertyhaseverbeenusedasa landfilloradump; (iii)Exceptasdisclosedinwritingto Buyer,therearenoagreementscurrentlyineffectwhich prohibitorrestrictthesale of theProperty; (iv)Sellerhastheright,powerand authority to execute anddeliverthis Agreement,to perform each andeveryobligationofSellerhereunder,andtoconsummatethetransactionscontemplatedbyit;noconsentis requiredforthe execution ofthis Agreement orthe consummation ofthe transactions setforthhereinotherthan thatwhichhasalreadybeengiven;neithertheexecutionanddelivery of thisAgreement,and,tothebest of Seller'sknowledge,neithertheperformanceor consummation oftheobligationsandtransactionscontemplated byit,northe fulfillment of,northecompliancewith,theterms,conditionsand provisions ofthis Agreement Ml conflictwith,or resultin aviolationorbreachof,anyrelevantlaw,oranyotherinstrumentoragreementof anynaturetowhichSellerisapartyorbywhichitisboundormaybeaffected,orconstitute(withorwithout thegivingofnoticeorthepassageoftime)adefaultundersuchaninstrumentoragreement;noconsent, approval,authorization ororderofanypersonis required withrespecttothe execution or delivery ofthis Agreementorthe performance and consummation ofthe transactions contemplated bythis Agreement other thantheCity of South Miami andtheSMCRA; (v)ExceptasdisclosedinwritingtotheBuyer,nocommitmentsoragreementshavebeenorwill bemadebySellertoanygovernmentalauthority,utilitycompany,schoolboard,churchorother religious body,anyhomeownersorhomeowners'association,oranyotherorganization,grouporindividual,relating tothePropertywhichwouldimposeanobligationuponBuyertomakeanycontributionsordedicationsof money,land,oranyinterestinland,toconstruct,installormaintainanyimprovements of apublicorprivate natureonor off theProperty,orotherwiseimposeany obligations orliabilityonBuyerortheProperty; #5733607 vl PSA ver2 42746-0001 (vi)The Property knownas Madison Square,undertheapplicablezoning ordinance affecting the Property,is currently zoned formixeduseandallowsfor riiultifamily other thanonelot under folio number 09-4025-010-0050 thatiscurrentlyzoned RS-4 andthepropertyknownastheMarshallWilliamsonparcelis zonedRT-9andallowsfortheconstructionofamaximumof8.7duplexeunitsperarceoramaximum of 6 townhouses per acre.; (vii)Sellerhasreceivednonoticeofandtoitsknowledgethereisnoviolation of anylaw, regulation,ordinance,orderorjudgmentaffectingtheProperty; (viii)SellerownsthePropertyinfeesimple,subjectonlytothosemattersdisclosed in the Title Commitment. Atalltimesduringtheterm of thisAgreementandas of theClosingDate,all of Seller's representations,warrantiesandcovenantsinthisAgreementshallbetrueandcorrect,tothebestofSeller's knowledge;norepresentationorwarrantybySellercontainedinthisAgreementandnostatementdeliveredor informationsuppliedtoBuyerpursuanttothisAgreementcontainsanyuntruestatement of amaterialfactor omitsto state a material fact necessary in order tomake the statements or information contained in them orin thisAgreement,tothe best of Seller's knowledge.Intheeventthatanyofthe foregoing representations or warrantiesbecomesuntrueasaresultofanactofathirdpartywhichisunrelatedto and unaffiliatedwith SellerthensuchinaccuracyshallnotbedeemedtobeabreachbytheSeller,butsuchmaterialinaccuracy shallpermitBuyertoterminatethisAgreement.The provisions ofthissectionshallsurvivetheClosing. (b)BuyerrepresentsandwarrantstoSellerandcovenantsandagreeswithSellerasfollows: (i)thatBuyerhastheright,powerandauthoritytoexecuteanddeliverthisAgreement,to performeachandeveryobligation of Buyerhereunder,andtoconsummatethetransactions contemplatedbyit;noconsentisrequiredfortheexecutionofthisAgreementortheconsummationof thetransactionssetforthherein;neithertheexecutionanddelivery of thisAgreement,and,tothebest of Buyer'sknowledge,neitherthe performance or consummation oftheobligationsandtransactions contemplatedbyit,northefulfillmentof,northecompliancewith,theterms,conditionsand provisionsofthisAgreementwillconflictwith,orresultinaviolationorbreachof,anyrelevantlaw, oranyotherinstrumentoragreementofanynaturetowhichBuyerisapartyorbywhichitisboundor maybe affected,orconstitute(withorwithoutthegivingofnoticeorthepassageoftime)adefault undersuchaninstrumentor agreement;no consent,approval,authorization ororderofanypersonis requiredwithrespecttotheexecutionordelivery of thisAgreementbyBuyerortheperformanceand consummation ofthetransactionscontemplatedbythisAgreementbyBuyer; (ii)thatBuyershall diligently pursueall matters requiredinthedebtandequityfinancing commitments,preliminaryplans,preliminary construction quotes and.certain Governmental Approvals; (iii)thatBuyer acknowledges the restrictions and requirements imposedbytheGrant Agreements,Miami-DadeCountyDirectivesandSMCRArequirements,totheextentdisclosedtothe Buyerand/orsetforthinAgreementfor Development,thedocumentsattachedtotheAgreementand intheLandUseRestrictionAgreement;thatBuyershallmakesuchreportstoSellerfromtimetotime asSellershallreasonablyrequestinamannersufficienttoinformSellerofBuyer'scompliancewith the terms hereof. (iv)TheBuyershallnot discriminate uponthebasis of race,color,religion,creed,ethnicity, sex,sexual orientation,age,familialstatus,disability or national originintheperformanceofitsduties hereunder;andthiscovenantshallbebindingtothefullestextentpermittedbylawandequity,forthe benefit andinfavorof,andenforceablebytheSeller. #5733607 vl PSA ver2 42746-0001 Atalltimesduringtheterm of this Agreement andas of theClosingDate,all of Buyer's representations,warranties and covenants inthis Agreement shallbetrueand correct.The provisions ofthis section shall survive the Closing. 14.Broker.SellerandBuyerrepresentandwarranteachtotheotherthattheyhavenotdealtwithanyreal estatebroker,salespersonorfinderinconnectionwiththis transaction.EachofSellerandBuyershallpay, throughseparate agreement,theirownbroker,ifany.Intheeventofanyclaimfora broker's orafinder'sfeeor commissioninconnectionwiththenegotiation,executionorconsummation of thisAgreementorthe transactionscontemplatedhereby,eachpartyshalldefend,indemnifyandhold haimless theotherpartyfrom andagainstanysuchclaimbaseduponanystatement,representation oragreementofsuchparty.Themutual indemnitiesandrepresentationsandwarrantiesofeachofSellerandBuyerinthis section shallsurvivethe Closing. 15.Condemnation. (a)IftheProperty,oranypartthereof,oranyinteresttherein,shallbetakenbyeminentdomain 'orcondemnedpriortotheClosingDate,orifSellershallreceiveanynoticeorknowledgethatanyagencyor entityhavingthepower of eminentdomainiscontemplatingorisseekingthetakingorcondemnation of the Property,oranypartthereof,oranyinteresttherein,SellershallpromptlynotifyBuyerthereof ("Condemnation Notice"). (b)Subjecttotheprovisionsofsubsections(c)and(d)ofthissection,ifBuyerpaysthefairvalue oftheproperty,Buyershallbeentitledtothe proceeds ofany condemnation proceeding relatingtoanytaking after the Closing Date. (c)Ifacondemnation,eminentdomainorothertakingproceedingshallhavebeenovertly threatenedorcommencedagainsttheProperty,oraportionthereof,oraninteresttherein,theninanysuch event,Buyershallhavetheoptionwithinthirty(30)daysafterreceivingeach Condemnation Notice,eitherto: (i)notifySellerofBuyer'selectiontoterminatethisAgreementinwhichcasethepartiesshallthereafterbe relieved of anyfurtherobligationorliabilityhereunder;or(ii)completethesalewithoutanyadjustmentsto the Purchase Price., (d)Notwithstanding anythinginthisAgreementtothe contrary,unless Buyer haselectedto terminatethisAgreement,asprovidedinsubsection(c)above,theClosingDateshallbethirty(30)days after receiving any Condemnation Notice,orthedatesetforthin Section 9,whichever islater. (e)TheprovisionsofthissectionshallsurvivetheClosing. 16.Default.In the event that Buyer shallfailtoperformits obligations or otherwise default hereunder and continue tofailto perform its obligations orfailtocuresuchdefault hereunder after30daysnotice of such failure,unlesssuch default is of a nature thatit cannot be remedied in thirty daysand Buyer is diligently workingtowardscuringsuchdefaultfromSellerandsuchfailureor default isthroughnofaultorfailureof Sellertocomplywithitsobligationshereunderandafterthetimetocurehasexpiredandifthedefault continues,Seller may,asitssole,exclusive andabsolute remedy,terminate this Agreement orseekany other remedy available atlaworequity..IfSellershallrefusetoclose,despiteitsobligation to closehereunder,orif any of the representations,warranties andcovenantsofSellershallatany time onor before Closingbefound tobefalseormisleadinginanymaterialrespect,orifSellerisotherwiseindefaultinanymaterial respect under the terms and provisions of this Agreement and Seller shallfailto cure anysuch default after30days notice of such default from Buyer,unless such default is of a nature that it cannot be remedied in thirty days and Buyer isdiligently working towards curingsuchdefault,and if suchfailureor default isthroughnofault orfailure of Buyerto comply withitsobligationshereunderandafterthe time tocurehasexpiredand if the defaultcontinues,:Buyermay(i)terminatethis Agreement,or(ii)Buyermayseekspecificperformanceof #5733607 vl PSA ver2 42746-0001 10 Seller's obligations hereunder,unlessspecific performance isnotavailabletoBuyer,inwhichcaseBuyermay seekanyotherremedyavailableatlaworequity. 17.Limitation of Liability. (a)Notwithstandinganythingtothecontraryherein,the Seller desirestoenterintothis AgreementonlyifinsodoingtheSellercanplacealimitontheSeller'sliabilityforanycauseofaction arising outofthis Agreement,sothatits liability never exceeds its maximum potential monetary contribution ofthecurrenttax assessor's valuation ofthe Property.TheBuyer expresses its willingness toenterintothis AgreementwithrecoveryfromtheSellerforanyactionarisingout of thisAgreementtobelimitedtothe value of thePropertyprovidedbytheSeller.Accordingly,theBuyeragreesthattheSellershallnotbeliable forany claim or damage in connection withtheProjectin excess oftheSeller's maximum potentialmonetary contribution asprovidedunderthis Agreement,foranyactionorclaimarisingoutofthis Agreement.The Sellerdoesnotwaive sovereign immunity and nothing contained inthis paragraph or elsewhere inthis AgreementisinanywayintendedtobeawaiverofthelimitationplacedontheSeller'sliabilityassetforth in Chapter 768,Florida Statutes. (b)Neitherpartyshallholdtheother responsible for damages orfor delays in performance caused byforce majeure,actsofGod,orotheractsor circumstances beyond the control ofapartyorthatcouldnot havebeen reasonably foreseen,preventedor avoided.Forthispurpose,suchactsorcircumstancesshall include,butnotbelimitedto,weather conditions affecting performance,floods,epidemics,war,riots,strikes, lockouts,orother industrial disturbances,orprotest demonstrations.Shouldsuchactsor circumstances occur, the parties shallusetheirbest efforts to overcome the obstacles at hand andto resume performance hereunder withdatesandtimesadjustedaccordingly. 18.Notice.Allnotices,consents,approvals,waiversand elections whichanypartyshallbe requiredorshalldesiretomakeorgiveunderthisAgreementshallbeinwritingandshallbesufficiently madeorgivenonlywhendeliveredinperson,orsentbyfacsimileoremail,asprovidedbelow: IftotheSELLER:Director,StephenDavid SouthMiamiCommunity Redevelopment Agency 6130 Sunset Drive Miami,Florida 33143 Fax:305-668-7356 E-mail:SDavid@southmiamifl.gov Withacopy to:CityManager City of South Miami 6130 Sunset Drive Miami,Florida 33143 Fax:305-668-7356 E-mail:salexander@southmiamifl.gov If to the BUYER:Daniel Abreu CandelaDevelopers,Inc. 9828 NW135th Street Hialeah,FL 33018 Phone:305-345-7475 #5733607 vl PSA ver2 42746-0001 11 E-mail:DG@CANDELADEV.COM Withcopyto:StearnsWeaverMillerWeisslerAlhadeff &Sitterson,P.A. 150 West Flagler Street,Suite 2200 Miami,FL 33130 Attn:BrianJ.McDonough Phone:305-789-3200 Email:bmcdonough@stearnsweaver.com Notices,consents,approvals,waivers and elections given or made as aforesaid shall be deemed tohave been dated,given and received:(i)onthe date of actual receipt if transmitted by overnight courier,hand delivery, or U.S.Mail,return receipt requested,ifa signed receipt is obtained;(ii)onthedateof transmission,if transmitted by telecopier/facsimile transmission and confirmation of successful transmission is provided by such telecopier/facsimile transmission orby email,provided the recipient mails acknowledgement of receipt, in the absence of which a copy shall also be sent via overnight courier,effective asofthe date of delivery to the overnight courier.All notices and other documents,sent tothe addresses listed above thatare retuned by the postal service,or delivery service,as undeliverable,orif sent by facsimile transmission or email,and the transmission failsduetoachangeintherecipient's address or facsimile transmission number,shallbe considereddelivered,forallpurposesofthisAgreement,asofthedatesent. 19.Assignment.Itis acknowledged andagreedthatasaresultofthe anticipated financing:(1) anaffiliateoftheBuyerwillserveasthe actual ownerofthe Property andtheProject;(2)anaffiliateofthe Buyer will serve asa manager or developing member ofthe owner (the "Manager Affiliate");and(3)an affiliateoftheBuyerwillserveasa manager ofthe actual developeroftheProject(the"Developer Affiliate").Accordingly,ifthis Agreement is assigned by Buyer toan affiliate of Buyer,the Buyer willbe responsible for compliance byits affiliates with the terms ofthe Development Agreement and the LURA. The Buyer's affiliates aswellasthe City of South Miami shall bethird party beneficiaries of this PSA.Upon termination oftheSeller's authority toactasa Redevelopment Agencyallrightsthatthe Seller hasto enforce this Agreement,the Development Agreement,the LURA and the conditions,covenants and restrictions contained inthewarrantydeedshall automatically be assigned totheCityof South Miami.TheCityof South Miami ("City")shall be named asan intended third party beneficiary toall agreements signed bythe Seller concerning this sale,including the conditions,covenants and restrictions contained inthe warranty deed. Nothing contained inthis Agreement shall be construed to benefit anyotherthird parties not named herein. EachandeveryaffiliateoftheBuyerwho shall serveastheownerofthe property,the manager ofthe owner and the manager ofthe actual developer ofthe Project,asa condition precedent tothesaleofthe property shall signthis Agreement Development Agreement andthe LURA.The actual owner,the Manager Affiliate and the Developer Affiliate,shall be jointly and severally liable tothe Seller and the City,forthe faithful performance ofallofthe terms and conditions of this Agreement,aswellastothe duties owed bythe developer ofthe property to comply with the terms and conditions ofthe Development Agreement,the LURA andofthedutiesoftheactual owner to comply withthe conditions,covenants and restrictions containedinthewarrantydeed.TheCityofSouthMiamiandtheSellershallbean additional obligeeonall construction bonds 20.RadonGas Notice.Pursuant toFloridaStatutesSection 404.056(5),Sellerherebymakes,andBuyer hereby acknowledges,thefollowingnotification: RADONGAS:Radon isanaturallyoccurringradioactivegasthat,whenithasaccumulatedina building insufficient quantities,maypresent health risks to persons whoare exposed toitover time. Levels of radonthatexceedfederalandstateguidelineshavebeenfoundinbuildingsinFlorida.. #5733607 vl PSA ver2 42746-0001 12 Additionalinformationregardingradonandradontestingmaybeobtainedfromyourcountypublic health unit. 21.General Provisions.The following general termsand conditions applytothis Agreement: (a)Singular/Plural-Masculine/Feminine.Wordsusedhereininthesingularshallincludethe plural,andwordsinthe masculine/feminine/neuter gendershallincludewordsinthe masculine/feminine/neuter wherethetextofthis Agreement requires. (b)Titles.HeadingsinthisAgreementareforconvenienceonlyandshallnotbeusedorrelied uponintheinterpretationofthisAgreement. (c)Successors.Theterms,covenants,and conditions ofthis Agreement shallbebindinguponand inuretothebenefitofthe parties heretoandtheir respective heirs,successors,andassigns,exceptasherein limited. (d)ChoiceofLaw.This Agreement shallbe interpreted according tothelawsoftheStateof Florida. (e)Time.Timeisofthe essence inthe performance ofeachandeveryoneoftheobligationof thepartiestothis Agreement.Unless otherwise specified,in computing anyperiodoftimedescribedherein, thedayoftheactoreventforwhichthe designated periodoftimebeginstorunisnottobeincludedandthe lastdayoftheperiodsocomputedistobe included,unlesssuchlastdayisaSaturday,Sundayorlegal holiday,inwhicheventtheperiodshallrununtiltheendofthenextdaywhichisneitheraSaturday,Sunday orlegalholiday.Theword"day"or"days"shallmeancalendardays. (f)Intentionally Omitted (g)JuryTrial Waiver..In theeventthatit becomes necessaryforeitherpartytobringsuitto enforcethetermsofthis Agreement,theneachpartyherebyirrevocablyand unconditionally waivesany rightitmayhavetoatrialbyjury. (h)LiabilityJointand Several.IfmorethanonepartyisnamedhereinasSellerorBuyer,then suchpartiesherebyagreethattheliabilityofeachhereundershallbejointand several. (i)Entire Agreement;Construction;Severability.This Agreement integrates andsupersedesall other agreements and understandings ofeverycharacterofthepartiesand comprises theentireagreement between them.This Agreement maynotbe changed,exceptinwriting signed bytheduly authorized representative of thepartiesand,astoSeller,itshallnotbechangedwithoutawrittenresolution of Seller andtheCityapprovingthechange.Nowaiverofanyrightsorobligationshereundershallbedeemedto haveoccurredunlessinwritingsignedbythepartyagainstwhomsuchwaiverisassertedinthesame mannerasrequiredinthissectionforachangeintheAgreementandnowaivershallbedeemedawaiverof anyotherorsubsequentrightor obligations.Theparties acknowledge thatthepartiesandtheir respective counselhavereviewedandrevisedthisAgreementand,therefore,thenormalrule of constructionof contractsthatanyambiguitiesaretoberesolvedagainstthedraftingpartyshallnotbeemployedinthe interpretation of thisAgreementandanyexhibitsoramendmentsthereto.If anyportion of this Agreement is heldtobeinvalidor inoperative,the remainder ofitshallbedeemedvalidandoperative.However,the portionheldinvalidorinoperativemaybeusedtoprovetheintentofthoseportionsoftheAgreementheld tobevalidandenforceable,totheextent possible. #5733607 vl PSA ver2 42746-0001 13 22.Option to Become Partner and Other Protections for the Agency. (a)Intentionally Omitted (b)Allequityanddebtfinancing ("Financing")documents shallbedeliveredtotheSellerbefore theclosingonsaidFinancing.AllFinancing documents,including the mortgage,andanyamendmentstothe FinancingdocumentsshallbedeliveredtotheSellerbeforetheyarerecorded.TheSellershallbemadea party tothe applicable Financing distribution lists sothatthe Seller is copied on communications to Buyer includingthe communication regardingtheclosingofthe Financing andregardinganydefaultorpotential default. AnyoftheBuyer,the Owner,the Developer andtheir affiliates whoprovide guarantees toanylender or equity providers (the "Syndicate")shall deliver tothe Seller,priortothe closing onany financing ofany kind,andyearlythereafter(foraslongasthe applicable guarantees arein effect),financial statements,which shallbe,ifallowedbylaw,confidentialandnotpartofthePublicRecord.Allfinancialassurancesand protection provided byanyofthe Syndicate toanypersonor entity,that provides financing forthe Property shall alsobe provided,in alike manner and contemporaneously,totheSellerforits assurance and protection. Buyershall provide Sellerwith Buyer's certified pro forma within 30daysofthe signing ofthis Agreement, yearlythereafteruntilclosingandquarterlythereafter.' AllFinancing documents,includingall construction loan documents,aswellasthe general contractfor theconstructionoftheProperty,shallincludeaprovisionthatrequiresthelender/investor,orcontractor,to provide the Seller with contemporaneous copies of written communicationfs]regarding allegations of default undersuchdocumentsaswellasallwrittencommunicationfs]regardingthreatenedand/oractual litigation/arbitration.Buyershalluse commercially reasonable effortstocausealllendersandequity partners to acknowledge thatSellermaypurchase from thelenderany defaulted debtandtherebystepintheshoesof suchlenderastothedebt purchased.Such purchase shallbeontermsastheSellerandLendermayagree.As betweentheSellerandtheBuyer,iftheSeller,oritssuccessorsand/orassigns,purchasefromthelenderany defaulted debt,the purchaser shall thereby stepinthe shoes ofsuchlenderforthe purpose of enforcing the samerightsthattheLenderhasagainsttheBuyerundersimilarconditions. (c)Theprovisions hereof whichrelatetotheperiodafterClosingshallsurviveClosingas hereinabove stated andshallbe amended inthe same manner as other amendments tothis Agreement. (signatures continue onto the next page) #5733607 vl PSA ver2 42746-0001 14 IN WITNESS WHEREOF,eachofthepartieshasexecutedthisAgreementonthedatessetforth below. BUYER: By:. Print Name: Title: Date: SELLER: SOUTH MIAMI COMMUNITY REDEVELOPMENT AGENCY By:___ PrintName: Title: Date: 15 EXHIBIT "A" Legal.DescriptionoftheProperty 16 EXHIBIT "B" AgreementforDevelopment 17 Title :pdfDocs compareDocs Comparison Results Date&Time !5/18/2017 4:25:35 PM Comparison Time 0.77 seconds compareDocs version v4.2.400.34 Original Document ![ACTIVE][#5730272][vl]PSA.docx Modified Document [ACTIVE][#5733607][vl]PSAver2.doc Insertions 65 Deletions 23 Changes 37 Moves TOTAL CHANGES 125 Open Comparison Report after Saving Report Type Character Level Include Headers /Footers Include Footnotes /Endnotes Include List Numbers Include Tables Include Field Codes Include Moves Show Track Changes Toolbar Show Reviewing Pane Update Automatic Links at Open Summary Report Include Change Detail Report Document View Remove Personal Information Flatten Field Codes Insertions Deletions Moves/Moves Inserted cells Deleted cells Merged cells Formatting Changed lines Comments color Balloons General Word Word Word Word Word Word Word Word Word Word Word Word Word Word .Word Word Color only. Mark left border. By Author. False Always Track Changes False True True False True True False True True False End Separate Print False False AGREEMENT BETWEEN DEVELOPER AND THE CITY OF SOUTH MIAMI COMMUNITY REDEVELOPMENT AGENCY This AGREEMENT BETWEEN ("DEVELOPER") AND THE CITY OF SOUTH MIAMI COMMUNITY DEVELOPMENT AGENCY ("AGENCY"or "SMCRA")("Agreement")ismadeonthis_day of 52017. WHEREAS,pursuant tothe DEVELOPER'S submittal of its letter of interest andqualificationsforthedevelopment of Madison Squarethe AGENCY and the DEVELOPER desire forthe DEVELOPER todevelop Madison Square in accordance with the terms hereof; WHEREAS,the AGENCY and the DEVELOPER desire for a mixed use development tobe undertaken atthesite whose address is ,South Miami,Florida and is legally described on Exhibit A,attached heretoandmadea part hereof ("Property"); WHEREAS,the AGENCY isthecurrent owner of the Property having acquiredsameforthepurpose of providingaffordablehousingandaffordable commercial spacefor rent andtoeliminatetheblight within the AGENCY boundaries ("SMCRA Area"); WHEREAS,the AGENCY has elected to enter intothis Agreement with the DEVELOPER toprovideaffordablehousingandcommercialspaceto residents of the SMCRA area;and WHEREAS,the DEVELOPER proposestoconstructamixedaffordable residentialand affordable commercial useproject ("Project")ontheeastern MadisonSquareparcelinBuildingNo.2 consisting of approximately 3,566 squarefeetofgroundfloor affordable commercial spaceandtoconstructforty (40)residential rentalunitsontheeasternandwestern Madison Squareparcelin BuildingNo.1&2,,as designated inthesiteplans,witheach residential unit having approximately 850 square feet of livable space,,and maximum number of townhouses orduplexesallowedbycurrentzoning,(approximately8.7duplex unitsand6 townhouses)ontheparcelknownasthe Marshal Williamson property, aswell as allresidentialappurtenances,fixtures,andimprovements ("Improvements")andasfurthersetforthintheProjectSchematicsthatis attachedtothisAgreementas Exhibit ,as maybeamendedbywritten agreement of the AGENCY and DEVELOPER;and WHEREAS,the DEVELOPER proposestoconstruct400squarefeet of #5717694 v3 42746-0001 C:\Users\ocabrera\Documents\Redline ofDevelopmentAgreement 051817 1521 docx ground floorspaceonthe western Madison Square parcel in Building No.1,as designatedinthesiteplans,tobeusedexclusivelyas management officeforthe housing and affordable commercial component of theProject;and WHEREAS,the consideration being provided tothe DEVELOPER includes the right of the DEVELOPER to construct approximately 8,868 square feet of ground floor commercial space onthe western Madison Square parcel in Building No.1,as designated inthesiteplansasanintegral part of the Project, and tobe used exclusively and solely asa Family Dollar store. NOW,THEREFORE,in consideration of the covenants,mutual promises stated herein and other good and valuable consideration,the receipt and sufficiency of which are hereby acknowledged by the parties,the parties agree as follows: Section 1.Recitals.Each of the above stated recitals are true and correct and are hereby incorporated by reference intothis Agreement.The following list of documents shallcomprisethe Agreement between the parties and shall constitute,collectively,the "Contract Documents": This Agreement; Legal description in the form as found in Exhibit A; Bonds,Performance and Payment in the formas found in Exhibit B (whichshallbe subject to modification as approved by AGENCY staff and DEVELOPER); Special Warranty Deed,Land Use Restriction Agreement ("LURA"^and Purchase and Sale Agreement (the "PSA")found in .Exhibit C;[Note:thespecialwarrantydeedshallsolelywarrantthetitleto the extent of that the AGENCY and DEVELOPER'S title insurance insure thetitleandliabilityislimitedtothatcoverage.Also,thewarrantyisonly goodforoneyear following closing.] Project Schematics described in Exhibit D,as may be amended; Insurance Requirements found in Exhibit E (which shall be subject to modification asapprovedbyAgency staff and DEVELOPER); HUD Guidelines Affordable Income Guidelines as found in Exhibit F; Grants and Miami-Dade County Directives -Exhibit G; Solicitation for Letters of Interest ("LOI")isattachedas Exhibit H. Section 2.Title and Certain Property Matters.The AGENCY shall provide the DEVELOPER withtitletothe Property intheform herein described in exchange forthe DEVELOPER'S express commitment,as evidenced bythis #5717694 v3 42746-0001 C-\Users\ocabrera\Documents\Redline ofDevelopmentAgreement 051817 1521.docx Agreement,toundertaketheactivitiessetforthinthis Agreement and performing thecovenantsanddutiessetforthinthisAgreement.The AGENCY shall transferthe Property totheDEVELOPERbySpecialWarrantyDeedin the form asfoundin Exhibit C andinaccordancewiththePurchaseandSaleAgreement (the "PSA")also found in Exhibit C The Property is conveyed AS IS,WHEREIS with NO REPRESENTATIONS AND WARRANTIES other than those set forth in the SpecialWarrantyDeed.Itisunderstoodand acknowledged thattheProperty surroundsalotownedbyaseparate,private andunrelated person or entity and thatneithertheCity,.SMCRAnoranyotherpartyrelatedtotheCityorthe SMCRA shallhaveany duty,obligationorrighttoacquirethe surrounded parcel, undertakeany action^toaidtheDEVELOPERinanywaywithrespecttothe surroundedparcel,orundertakeanyeffortatallwithrespecttothesurrounded parcel; Section 3.Definitions. (a)"City"means theCity of South Miami,Florida. (b)"DEVELOPER"meanstheentityexecutingthis Agreement,its officers,directors,managers,agents,representatives,subsidiaries,successors, and/orsuccessorsandassignsandanyotherpartythatownsthePropertyorwho letsany portion of the Property toa commercial or residential tenant,including, without limitation,anyrealestateagentworkingon behalf of theDEVELOPER orany of itsofficers,directors,managers,agents,representatives,subsidiaries, successors,and/orassigns.McDonough:Thisdefinitionisfartoobroad.Why? OC:Becausetheconcept of Developermightmeanabunchofthngshere. Section 4.Conditions Precedent to the AGENCY conveying the Property to the DEVELOPER or any other party,(a)Regardless of the terms setforthinthePSA,SMCRAshallnotconveythePropertytothe DEVELOPER andthe DEVELOPER shallhavenorightsunderthis Agreement or otherwise whatsoever until: (i)the DEVELOPER provides evidence acceptable to SMCRA that each and everyone of the DEVELOPER'S Representations setforth hereinbelow in Section of this Agreement made by the DEVELOPER are true and correct; #5717694 v3 42746-0001 C:\Users\ocabrera\Documents\Redline ofDevelopmentAgreement 051817 1521.docx (ii)the DEVELOPER has prepared a full,final,unamended or unchanged,and complete set of construction plans that have been approved bythe City's Planning and Zoning Department and Building Department as well asbythe Miami-Dade County Building and Zoning Departments before any permit isissued permitting any commencement of construction,including site preparation and grading; (iii)the DEVELOPER first provides the AGENCY with evidence acceptable tothe SMCRA,inits reasonable discretion,of commerically reasonable and adequate financingthatwill allow the development and construction of the Project;and (iv)the closing of the conveyance of the Property pursuant to the PSA,including the terms of this Agreement,after or contemporaneously with the execution of this Agreement. (b)Neither the City nor SMCRA shall have any duty whatsoever toact reasonably with respect toany request toextendthetimebywhichthe DEVELOPER'S shall undertake performance of the conditions precedent,any DEVELOPER request to amend the conditions precedent,orany other request relating to the Conditions Precedent.McDonough:Why so harsh?OC:Do you have any suggestion that will givethe SMCRA assurances that extensions of time will not be abuses (c)No closing of the PSA shall occur until such time as the DEVELOPER provides evidence tothe CITY and/the AGENCY,in such form asis satisfactory to the CITY andthe AGENCY,that the DEVELOPER has met all conditions precedent in this Section 4. Section 5.Project Scope.The DEVELOPER,after meeting the conditions precedent setforthin section 4,shall professionally and diligently construct (bythe DEVELOPER itself or,atthe DEVELOPER'S option,through the engagement of third party contractors)and provide (orcausetobe provided)construction services to complete the Improvements entire Project,including the commercial space and residential housing in accordance with this Agreeement and the building plans approved by the City including,without limitation,a finished grade and landscaping as set forthinany landscaping plans approved by the City.The Improvements Project shall be constructed in substantial accordance with the Project Schematics as set forth in Exhibit D,or as may be amended by #5717694 v3 42746-0001 C:\Users\ocabrera\Docurrients\Redline ofDevelopmentAgreement 051817 1521.docx agreement of the parties tothis Agreement.The DEVELOPER'S obligation to constructthe Improvements Projectsubstantiallyinaccordancewiththe Project Schematicsassetforthaboveshallbesecured,inadditiontoa payment and performancebond,byaguaranty of completionbytheDEVELOPER(orsuch otherpersonorentitythatprovidesasimilarguarantytothe first mortgage lender) Section 6.Termination;Survival of this Agreement's Provisions.This Agreement shall automatically terminate if the DEVELOPER failsto close onthe purchase of thePropertyunderthetermssetforthhereinandinthePSAonor by ,2017.TheDEVELOPERwaivesanyandallrights of actionuponsuch termination andshallhavenorightoflegal action ofany kind,whetheratlaworin equity,againsttheCityorSMCRA whatsoever.ThisAgreementshallterminate priortoclosingunderthePSA if theDEVELOPERbreachesany of theterms, conditions and provision hereofand fails tocuresuch noncompliance withinthirty (30)daysaftertheAGENCYprovidesDEVELOPERwithwrittennotice of default and demand tocureandprovidedthecureis accomplished priorto closing.The failureofthe DEVELOPER tocuresuch default priortoclosingshallresultina termination of thisAgreement.TheAGENCYmay,initssoleandabsolute discretion,providesuchlongerperiodoftimetocloseandbywhichthe DEVELOPERmustcureadefault of this Agreement iftheDEVELOPER demonstrates to the AGENCY'S sole and exclusive satisfaction that the DEVELOPERisdiligentlypursuingeffortsto ,cure allsuchdefaultsinatimely mannerandingood faith.If theAGENCYgrantsanyextension of timetocurea defaultbeyondthe initial thirty (3.0)daycureperiod,thentheDEVELOPERshall report weeklyinwritingtotheSMCRAAgencyChairmanandtheSMCRA Directordetailingalleffortsthatweretakenduringthat week.Thecontents of such reportmustbereasonablysatisfactorytotheSMCRAChairmanandDirector. Failuretoprovideareportasset forth inthis Section 6inanygivenweekorfailure totimelyreportsuchactionsshall,in SMCRA's soleandexclusivediscretion,be deemedanuncureablebreach of thisAgreement.ThisAgreementshallsurvivethe completionofthe construction solely forthepurpose of enforcing any breaches of the agreement including any breaches ofany represenations and warranties as provided elsewhere inthisAgreement. Section 7.Limitation of Liability.The AGENCY shall not be liable foranyclaimordamageinconnectionwiththeProjectinexcess of the AGENCY'S maximumpotentialcontributionasprovidedunderthisAgreement, #5717694 v3 42746-0001 C:\Users\ocsbrera\Documents\RedlineofDevelopmentAgreement 05:817 1521 docx forany action or claim arising out of this Agreement.The AGENCY does not waive sovereign immunity and nothing contained inthis Agreement isinany way intended tobea waiver ofthe limitation placed ontheAGENCY'S liability assetforthin Chapter 768,Florida Statutes. Section 8,Right to Enforce and Project Financing Documents.In additiontoanyother provision inthis Agreementagreement,allfinancing agreementswiththirdparties,including(asmaybeapplicable)allinsurance policies andsuretybonds,shallincludea provision thatgivesthe AGENCY,at itssoleand exclusive discretion,therighttoenforcethe Land Use Restriction Agreement ("LURA"),attached as Exhibit C,including theright,atthe AGENCY'Soption,tocureanydefaultoftheDEVELOPERuponnoticeand withinareasonableperiod of time.Further,theSpecialWarranty Deed will containa provision that specificallyprovidesfora reverter of titletothe propertyintheeventthattheDEVELOPERdoesnotcompletethe Project as contemplated bythisAgreement.Uponsatisfactory completion of the Project, theAgencyshall record anotice of completionwhichshallalso provide that any right of reverterthattheAgencymayhaverelatingto completion of the Project hasbeenterminated.DEVELOPERagreesthatanyandallfinancing agreements and/or mortgages shallcontaina provision that grants the AGENCY sucha right and acknowledges the restrictions set forthintheLURA. The Agency willgive institutional lenderstherighttocureany defaults of the Developer to complete the Project. Section 9.Risk of Loss.Subsequenttotheconveyance of theproperty bytheAgencytotheDeveloper,risk of lossfromanycasualty,whetherbefore orafterconstructionuponthePropertyiscommenced,shallbeentirelyupon the DEVELOPER andthe DEVELOPER shall maintain adequate limitsforall insurance,including builders5 risk,general liability,construction,workers compensation,property andcasualty,andall other applicable linesforasum notlessthanthe fiill replacement value of theProjecttobeconstructed.The DEVELOPER shall not commence work under this Agreement untilithas obtained and submitted proof,tothe satisfaction of theAgency,that all insurance required by the AGENCY,including the insurance requirements set forth in Exhibit E has been obtained and is in full force and effect. Section 10.Independent Contractor.The AGENCY,the City and the DEVELOPER arenot partners inanywayandhaveno business affiliation whatsoever.The DEVELOPER is not an agent of the City or SMCRA.The DEVELOPER,its officers,shareholders,principals,owners,directors,partners, #5717694 v3 42746-0001 C:\Users\ocabrera\Documents\Redline of Development Agreement 051817 1521.docx employees,agents,licensees,invitees or affiliates havenorightswhatsoeveras employees,agents,contractors,partners,licensees,invitees,affiliates or any otherkindofrole whatsoever because ofthe existence ofthis Agreement. Section 11.AGENCY'S Duties.The AGENCY shall: (i)use reasonable efforts to assist DEVELOPER in the DEVELOPER'S application for permitting andin obtaining thepermits necessary to develop the Project. (ii)assignanyinterestitmayhaveinthepermits to DEVELOPER atclosing. (iii)atclosingunderthePSA,atitsexpense,deliverany improved portions of the Property vacant of tenants and without any claimbyanyformertenant;and, (iv)priorto closing under thePSAand upon request bythe DEVELOPER,the AGENCY,atits expense will apply for and/or supporta specialexceptionorspecialuseapprovalfortheconstruction of an improvement ofnotlessthanthree(3)stories along 64thStreetbetween 60th Avenue and59thCourtinthe City,a parking space variance,an impervious coverage variance and such other necessary approvals tobe granted,withoutfurther condition,bythe'CitytopermittheDEVELOPER tobuildthe Project. Section 12.DEVELOPER'S Duties.The DEVELOPER shall: (i)Preparedafull,final,unamendedor unchanged,and complete setof construction plans thathavebeen'approvedbythe City's Planning and Zoning Department and Building Department as wellasbythe Miami-Dade County BuildingandZoning Departments beforeanypermitisissuedpermittinganycommencementof construction,includingsitepreparationandgrading; (ii)otherthaninconnectionwithProject financing,notpermit anylienstoberecordedagainstthePropertyregardingthe Project If a #5717694 v3 42746-0001 C:\Users\0cabrer3\D0cuments\Redline ofDevelopmentAgreement 051817 152i.docx construction,materialmen,labor or other construction-related lien is placed against the Property,the DEVELOPER shall have the right to remove such lien to surety bond as allowed by Florida law within thirty (30)days of recording of thelienprovidedthat (i)theCityandAgency areadditional obligees,and(ii)the amount of the bond shallbe not less thanone hundred andfifty percent (150%)of the amount claimed under the recorded and asserted lien. (iii)make timely payment(s)to subcontractors or suppliers for materials or labor regarding the Project unless the DEVELOPER has reasonable grounds to withhold payment. (iv)maintain the construction sources of financing in balance in accordancewiththeapplicableprojectfinancingdocuments. (v)timelystartconstructionandcompletetheProjectandobtain allapplicablecertificates of occupancyandapplicablecertificates of use in accordance with the terms hereof. (vi)obtain all construction financing;to design the ProjectMadison Squareprojecttothereasonable satisfaction of the AGENCYand construct the project in accordance withtheplans approvedbythe AGENCY;to prepare all of the construction documents,including butnotlimitedtotheplans,working drawings, specifications andall necessary as-built drawings;to obtain all necessary permits forthe construction of the approved design onthe properties identified in Exhibit A(the"Property");todoallthings necessarytocompleteconstruction;toobtainpermanentfinancing;to lease the residential and affordable commercial properties that are part of the Projectproject;tocomplywiththetermsand conditions of the Purchase andSale Agreement aswellasall grants,whose fundswere usedbythe AGENCY to purchase and/ordeveloptheproperty,andall Miami-Dade County mandates,copies of whichare attached as Exhibit G;toprovideaffordable housing and affordable commercial space to tenants who meet the guidelinesas set forth inthe LURA. (vii)leaseonlytoSMCRAQualifiedTenants(ashereindefined) providedtheselectiondoesnotviolateanywillbeselectedin .accordance with applicable Federal,State,Countyandlocallawsand guidelines. (viii)construct the affordable housing rental project withthe #5717694 v3 42746-0001 C-\User5\ocabrera\Oocuments\Redline of Development Agreement 051817 1521.docx designated residential rent for each residential unit not to exceed applicablerentalrestrictionstogetherwithapproximatelyThree thousand five hundred(3,500)squarefeet of affordablecommercialspace.The commercialspaceshallbedividedintofour(4)separateunits.The parties desire is to lease each of the affordable commercial units to South Miami community-basedtenants("LocalTenants")thatwillbenefitfromthe reduced rent being charged bythe DEVELOPER orOwnerforsuchunits. Tothatend,the DEVELOPER andAgencywilluseallreasonableefforts tolocatesuchLocalTenantstooccupythecommercialspace.However, ifthepartiesareunableto find suitableLocalTenantsforany of the affordable commercialunits,theDEVELOPERmaylease such commercialunitstoothertenantsreasonablyacceptabletotheAgencyfor aperiodnottoexceed five (5)years,andwhichinitial five (5)yearterm maynotbeextended without the City's priorwrittenconsent.The affordable rent restrictions otherwise imposedonthe DEVELOPER for leasingtoLocalTenantswillnotapplytotheleasing of suchcommercial unitstoother,non-Local Tenants.Therentthatthe DEVELOPER may chargeLocalTenantsseekingthecommercialunitsshallnotexceed$14 persquarefootunlessadjustedupwardbyvote of theSMCRAatthe request of DEVELOPER.Therentforthecommercialunitsmay otherwise be adjusted based onthe yearly change inthe consumer price index applicable totheCity,butwhenbasedonthe Consumer Price Index (AllUrban ConsumersGities)therentshallnever increase atagreaterrate than2%per annum Eachrentalagreementshallreceiveanannualadjustmentbasedonthe Consumer PriceIndex-All Urban Consumers 12-Month Percent Change forthe Miami-Ft Lauderdale FLareaas establish and/or publishedbythe United States Department of Labor,Bureau of Labor Statistics (CPI)that shallhavetheeffect of increasing ordecreasingthe annual rentalamount foreachtenantto maintain appropriate rental amounts,taking inflation into account;and (ix)perform the covenants set forth inthe the Land Use Restriction Agreement,theform of which is attached hereto as Exhibit C (the "LURA").The DEVELOPER andany tenant shallbe obligated to comply with and acknowledge the restrictions set forth in such LURA.The restrictions shall include a level of income for tenants of residentialspace.Itshallrequirethat80%of theresidentialunitsinthe Projectshallberentedtotenantswhoseannualhouseholdearningsare no greater than 60%of the Area Median Income and 20%of the #5717694 v3 42746-0001 C:\Users\ocabrera\Documents\Redline of Development Agreement 051817 1521.docx residential units shall be rented to tenants whose annual household earnings are greater than 60%but no greater than 80%of the Area Median Income as established byHUDand applicable to Miami-Dade County the Miami Fort Lauderdale West Palm Beach Metropolitan Statistical Area (as set forthinthe LURA andasmaybe adjusted from timeto time)andas adjusted forthesize of the tenant's family, (hereinafter referred toas "AMI").The initial rents tobe charged to such residential tenants shall be set forth as an exhibit to the LURA which will be entered into between the Agency and the DEVELOPER (orits affiliate)contemporaneously with the transfer of the Property pursuant to the terms of the PSA and will be based on rents established by HUD for tenants that are restricted to income no greater than either 60%or80%of AMI,as applicable.All such tenantsrenters shall hereinafter be referred toas "SMCRA Qualified Tenants".In addition, the Property shallbe subject totheabove rental restrictions fora40 year period fromthedatea certificate of occupancy is issued forthe Project (the "Compliance Period").The Project may not be sold or resold by DEVELOPER orits affiliates,or any of their grantees, successors or assigns,during such period without the buyer's written assumption of the preferences,affordability anduse restrictions setforth herein andassetforthinthe LURA.The assumption document shallbe inaform and substance reasonably satisfactory tothe AGENCY or, once the Agency is dissolved,the City. (x)maintain allaudits,books,records,documents and other evidence pertaining toallcostsandexpenses incurred and revenues acquiredunderthisAgreementtotheextentandinsuchdetailas reasonablyrequiredbytheAGENCYandmakesuchaudits,books, records,documents and other evidence immediately available tothe AGENCY within 72 hours after DEVELOPER receives written demandtoinspecttherecordsorforcopiesbytheAGENCY.All costs of copyingsuchrecordsincurredbythe DEVELOPER shallbe paidbytheAgency.Agencyshallhavetherighttomakeitsown copies of these records without costto DEVELOPER. Section 13.DEVELOPER REPRESENTATIONS AND WARRANTIES: (a)TheDEVELOPER represents andwarrantsthat: (i)the DEVELOPER isa limited liability company #5717694 v3 42746-0001 1-0 C:\Users\ocabrera\Documents\Redline of Development Agreement 051817 1521.docx organized under the laws of the State of Florida in good standing and shall remain ingoodstanding throughout the term of this Agreement; (ii)this Agreement issignedby persons who have been duly authorized tosignonthe DEVELOPER'S behalf; (iii)it will perform each of the duties set forthin Section 12 using best efforts and commercial diligence; (iv)the DEVELOPER'S rights,duties and obligations may notbe assigned (other thanasexpressly permitted hereinsuchasto an affiliate),sold,leased,optioned,conveyed,giftedor otherwise alienated from the DEVELOPER ("Transfer")andanysuch Transfer shallbe void abinitio without the prior written consent of the SMCRA; (vi)therearenoproceedingsoractionspending,threatenedor contemplated against the DEVELOPER including but not limited toanyactionfortheliquidation,termination or dissolution of DEVELOPER; (vii)DEVELOPERshallapplyforconstructionpermits within sixty(60)days of thedate of this Agreement; (viii)DEVELOPER shallcausethePropertytobe developedinsubstantial accordance withtheProjectSchematics andthebuildingplansthataretocomplywiththeCity'sCode andaretobeapprovedbytheSouthMiami Planning and ZoningDepartment,itsBuilding Department andthe Miami- DadeCounty Building andZoning Department andanyother agencyhaving jurisdiction overtheapproval of building plans andthedevelopmentoftheProperty; (ix)DEVELOPER shall complete construction withinthetime allowedbythe construction schedulesetforthintheProject financingdocumentsbutnolaterthanassetforthinSection of this Agreement; (x)allresidential leases ofthePropertyshallbetoa SMCRA Qualified Tenant,andthattheleases issued by DEVELOPER #5717694 v3 42746-0001 11 C:\Users\ocabrera\Documents\RedlineofDevelopmentAgreement 051817 1521.docx shall contain language that prevents a sublease to anyone whois not a SMCRA Qualified Tenant and all subleases shall contain similar prohibitions; (xi)the construction of the Project and compliance with this Agreement shall bein accordance with all applicable codes, ordinances,statutes,regulations of the federal government,the State of Florida,the City and Miami-Dade County;and (xii)theuse of the Property shallbein compliance withthis Agreement shall bein accordance with all applicable codes, ordinances,statutes,regulations of the federal government,the State of Florida,the City and Miami-Dade County. (b)All of theRepresentationsandWarrantiessetforthin the Section 13 shall survive this Agreement. (c)Warranty:The Developer shallrepairorreplace(or causedtohaverepairedorreplaced)allworkthatwasnot performed ina workmanlike fashion or not furnished in accordance with the terms,condition andprovision of theContractandContractDocuments.The Developer shall repairorreplace(orcausetohaverepairedorreplaced)alldefectivematerials andequipmentfurnished.TheDevelopershallrepairorreplace(orcauseto haverepairedorreplaced)allpatentdefectsthathavebecomeapparentbefore the expiration of one(1)yearfollowingthedate of Final Acceptance as indicated inthe CONSULTANT Letter of Recommendation of Acceptance,if issued,,theCertificate of Occupancy,ifissued,ortheCertificate of Completion,ifissuedbytheCity,whicheverisapplicableandifmorethanone isapplicable,theonethatisissuedlastandcorrectanyandalllatentdefects thatarediscoveredbeforetheexpiration of thethird(3rd)yearfollowingthe date of FinalAcceptanceasindicatedintheCONSULTANTLetter of Recommendation of Acceptance,if issued,theCertificate of Occupancy,if issued,orthe Certificate of Completion,if issuedbytheCity,whicheveris applicableand if morethanoneisapplicable,theonethatisissuedlast.The Developershallhaveareasonableamountoftimetoproceedagainstthird parties,suchasthecontractor,tocureanysuchdefects.The Developer agrees todiligently pursue allrightsandremediesagainst third partiesforpatentand latent defects.The changes to this section is under review by my construction partner. #5717694 v3 42746-0001 12 C:\Users\ocabrera\Documents\Redline ofDevelopment Agreement 051817 1521.docx Section 14,Force Majeure,Neither party shallholdthe other responsiblefordamagesorfordelaysinperformancecausedbyActs of God, war,terrorist actions in the Cityorin Miami-Dade County,riots,violent civil disturbancesorstrikesdeclaredbyanyunionpursuanttoexistingandexecuted collectivebargainingagreementbutexcludinganystrike,workstoppageor work slowdown undertaken byanyindividualunionhallregardless of trade. For this purpose,Acts of God include tornados,hurricanes named by the the National Weather Service,tropicalstorms identified by the National Weather Service,floods that have been declared Part AandB disaster bythe President of the United States of America under the Stafford Act,and epidemics declared by the Untied States Center for Disease Control.Should suchactsorcircumstancesoccur,thepartiesshallusetheircommercially reasonable best efforts to overcome the difficulties and to resume the work as soon as reasonably possible andthe construction schedule shall be adjusted accordingly. Section 15,Default,(a)The DEVELOPER shallbein default of this Agreement if the DEVELOPER: (i)failstostartconstructionwithin90daysfollowingthe issuance of constructionpermits. (ii)abandonsorsubstantiallysuspendsconstructionforaperiod of morethan 30 days.Adelaycausedbyforce majeure orbya subcontractor or supplier shallnotbeincludedinthecalculation of the 30-dayperiod,providedthedelayofthesubcontractororsupplierisnot due,inanyway,tothefaultornegligenceofthe DEVELOPER. (iii)failstocureanybreachofthisAgreement.DEVELOPER shallhavethirty (30)days,afterreceiptofwrittennotice of anybreach tocureanynotice of defaultsentbythe AGENCY.Suchperiodmaybe extended bythe AGENCY,atits reasonable discreation,providedthat the DEVELOPER demonstrates to the AGENCY'S reasonable satisfaction thatitisdiligentlypursuingacuretosuchbreach.If the timeis extended beyond30 days,thenthe DEVELOPER shallreport weeklyinwritingtotheCRAAgencyChairmanandtheCRADirector astoalleffortsthatweretakenduringthatweek.Failuretotakeaction inanygivenweekorfailuretotimelyreportsuchactionshallbea substantialandmaterialbreach of thisAgreement. (iv)failstoapplyforanybuildingpermitnecessaryforthe #5717694 v3 42746-0001 C:\Users\ocabrera\Documents\Redline of Development Agreement 051817 1521.docx 13 commencement of construction,withinsixty(60)days of thedate of the delivery of the deed tothe Property^ (v)failstocompleteconstruction within three hundred andsixty five (365)daysfromthedate of thedelivery of theSpecialWarrantyDeed tothePropertyotherthanduetoforcemajeure.Intheevent of force majeure,suchdelayshallextendthenumber of daysforcompletion of constructionaccordingly.Notwithstanding theforegoing,Agencyshall provideDEVELOPERareasonableperiod of additionaltimetocomplete theProjectprovidedthat DEVELOPER is reasonablyanddiligently pursuing completion ofsamewithalldue haste.Insuchevent,the DEVELOPER shallreportweeklyin writing totheCRA Agency Chairman and the CRA Director astoall efforts that were taken during thatweek.Failuretotimelyreportsuchactionshallbea substantial and material breach of this Agreement. (vi)breachesanywarrantymadeunderthisAgreement,including without limitation those made under Section 13. (vii)partiallyorentirelyassigns,leases,sells,options,conveys, giftsorotherwisealienatesitsinterestinthisAgreementwithoutthe expresspriorwrittenconsentof AGENCY otherthanasexpressly permitted hereunder. (b)All notices ofdefaultmaybe made byU.S.Mailorhand delivered by courier orotherpartyandbe deemed received onthedatesuchnoticeis posted ormade,asmaybeapplicable. Section 16,Venue,Law and Attorney's Fees and Costs.All legal and/orequitable actions concerning or arising outofthis Agreement shallhave originaljurisdictionsolely in courtsoftheStateofFloridalocatedinMiami- DadeCounty,Florida.Inanyactionbroughtbyeitherparty,theprevailing partyshallbeentitledtorecoverallcostsofsuchactionsthroughallappellate levelsandall appeals,tothe fullest extent allowed bythelawsoftheStateof Floridahowever,eachpartyshallbeartheirownattorneyfeesinanysuch action.ThisAgreementandalllegalcausesofactionhereunder,ifasserted, shallbegovernedandconstruedinaccordancewiththelaws of Floridawithout regard totheState of Florida's conflicts of law provisions. #5717694 v3 42746-0001 14 C:\Users\ocabrera\Docurnents\Rediine of Development Agreement 051817 1521.docx Section 17.Best Efforts on Construction Timetable.DEVELOPER agreestouseitscommercially.reasonablebesteffortstocompletethe constructiononorbeforethescheduleprovidedbythisAgreement. Section 18.Notices.All notices,demands,correspondence and communications between the AGENCY and DEVELOPER shall be deemedsufficientlygivenundertheterms of thisAgreementifsentby facsimile transmission,e-mail,or dispatched byregisteredorcertified mail,postageprepaid,returnreceipt requested,andaddressedas follows: If to the AGENCY: If to DEVELOPER: #5717694 v3 42746-0001 C:\Users\ocabrera\Documents\Redline of Development Agreement 051817 1521.docx Director,Stephen David South Miami Community Redevelopment Agency 6130 Sunset Drive Miami,Florida 33143 Fax:305-668-7356 E-mail:SDavid@southmiamifl.gov With acopyto: CityManager City of South Miami 6130 Sunset Drive Miami,Florida 33143 Fax:305-668-7356 David Abreu CandelaDevelopers,Inc. 9828 NW135th Street Hialeah,FL 33018 Phone:305-345-7475 Email:DG@CANDELADEV.COM with copy to me. Stearns Weaver Miller Weissler Alhadeff &Sitterson,P.A. 150 West Flagler Street,Suite 2200 Miami,FL 33130 15 Attn:Brian J.McDonough Phone:305-789-3200 Email:bmcdonough@steamsweaver.com Section 19.Records and Costs.The books and accounts,files and other records of the DEVELOPER,which are applicable to this Agreement, shall be available for inspection,review and audit by the AGENCY and its representatives,at all reasonable times.DEVELOPER and all of its subcontractors are required to comply with the public records law (s.119.0701)while providing goods and/or services on behalf of the CITY and the DEVELOPER,under such conditions,shall incorporate this paragraph inall of its subcontracts for this Project and shall: (a)Keep and maintain public records required by the public agency to perform the service;' (b)Upon request fromthe public agency's custodian of public records, provide the public agency with a copy of the requested records or allow the records tobe inspected or copied within a reasonable time atacostthat does not exceed the cost provided inthis chapter oras otherwise provided by law; (c)Ensure that public records thatare exempt or confidential and exempt from public records disclosure requirements arenot disclosed except as authorized bylawfor the duration of the Contract term and following completion of the Contract if DEVELOPER does not transfer the records to the public agency;and (d)Upon completion of the Contract,transfer,atnocost,tothe public agency all public records in possession of DEVELOPER orkeepand maintain public records required bythe public agency to perform the service.If DEVELOPER transfers all public records tothe public agency upon completion of the Contract,DEVELOPER shall destroy any duplicate public records that are exempt or confidential and exempt from public records disclosure requirements.If DEVELOPER keepsand maintains public records upon completion of the Contract,DEVELOPER shall meet all applicable requirements for retaining public records.All records stored electronically must be provided tothe public agency,upon request from the public agency's custodian of public records,in a format that is compatible with the information technology systems of the public agency. IF DEVELOPER HAS QUESTIONS REGARDING THE #5717694 v3 42746-0001 16 C:\Users\0cabrer3\D0cumerts\Redline of Development Agreement 051817 1521.docx APPLICATION OF CHAPTER 119,FLORIDA STATUTES,TO THE DEVELOPER S DUTY TO PROVIDE PUBLIC RECORDS RELATING TO THIS CONTRACT,CONTACT THE CUSTODIAN OF PUBLIC RECORDS AT 305-663-6340;E-mail: mmenendez@southmiamifl.gov;6130 Sunset Drive,South Miami,FL .33143. Section 20.Indemnification.OCto provide a more robust indemnification.Thepartiesagreethat 1%of thetotalvalueofthe property' deededtotheDEVELOPERshallrepresentthe specific consideration for the DEVELOPER'S agreement to indemnify the AGENCY.Tothefullest extent allowed by law,DEVELOPER shall indemnify,defend,save and hold harmless theAGENCY,itsofficers,agentsand employees,fromoron account of allthirdpartyclaimsandanyandallactualout of pocket damages,losses,liabilities andexpenses incurred bytheAGENCYand arising;out of this Agreement including,butnot limited to,feesandcharges of purchasers,engineers,architects,attorneys,consultants and other professionals andcourtcostsatalltrialandappellatelevels. Indemnification shallspecificallyinclude,butnotbelimitedtothirdparty claims andanyandallactualout of pocketdamages,losses,liabilities and expenses incurredbytheAGENCYarisingout of orfrom: (a)the negligent or defective work of the DEVELOPER; (b)any negligent actor omission of the DEVELOPER,its subcontractors,agents,invitees,servantsoremployees; (c)anydamages,liabilities,orlossesreceivedorsustainedbyany person orpersonsduringoronaccountofany negligent operations under the care custody or control of DEVELOPER connected with the construction of this Project; (d)failuretotimelycompletethework; (e)the violation of anyfederal,state,or county or city laws,ordinances #5717694 v3 42746-0001 17 C:\Users\ocabrera\Documents\Redtine ofDevelopmentAgreement 051817 1521.docx or regulations by DEVELOPER,its subcontractors,agents,servants, independent contractors or employees;. f)thebreachorallegedbreachbyDEVELOPER of anyterm of this Agreement; (g)thefailuretocomplywithanyrequirement of anygrantusedto financethe purchase of thePropertybytheSMCRAorforthedesign,plans, drawings ,construction and/orcompletion of theProject.Asa condition to thisindemnity,the Agency agreesthatitshallgivethe DEVELOPER notice of anyobigationsorrequirementsimposedontheProjectorPropertyby virtue of anygrantsreceivedinconnectionthePropertyandwiththis agreementtoindemnifytheAGENCYforfailuretocomplywithsuch requirementsandprovidetheDEVELOPERwithareasonabletimetocure the default InanyandallclaimsagainsttheAGENCY,orany of itsagentsoremployees byany employee of the DEVELOPER,any subcontractor,any person or organizationdirectlyorindirectlyemployedbyany of themtoperformor furnishanyoftheworkoranyoneforwhoseactsany of themmaybeliable, theindemnificationobligationunderthissectionshallnotbelimitedinany waybyanylimitationontheamountortype of damages,compensationor benefitspayablebyorforDEVELOPERoranysuchsubcontractororother personor organization underworkersor workman's compensationacts, disability benefit actsor other employee benefit acts. Itisthespecificintentofthepartiesheretothattheforegoing indemnificationcomplieswith Florida Statute725.06(Chapter725),if applicable.Itisfurtherthespecificintentandagreementofthepartiesthat all of the Contract Documents onthis Project shall include the foregoing indemnification andthe specific consideration therefore inthesame percentage asprovidedinthis section asbetweenthe AGENCY and DEVELOPER.McDonough:??This indemnity isfartoo broad.There is a section on warranties that covers a lot of the subject matter of this indemnity.Thus,I have removed several of the sections. Section 21.Assignment.DEVELOPER shall not partially or entirely assign(otherthantoanaffiliateinwhichthe principals ofthe Developer holdacontrollinginterest),sell,lease,option,convey,gift,orotherwise alienate its.interest,inwholeorinpart,inthis Agreement without the #5717694 v3 42746-0001 u C:\Users\ocabrera\Documents\Redline of Development Agreement 0518171521 docx express prior written consent of AGENCY.AGENCY shall have the right to assignall of itsrightsandobligationsundertheprovisions of thisAgreement totheCity.TheDEVELOPER'Sright,if any,toassignthis Agreement to anaffiliateissubjecttotheaffiliateagreeinginwritingtoabidebyall of the terms,conditionsandprovision of thisAgreement.Anyassignment authorizedbythisAgreementshallbefirstbeexecutedbytheassignee, acknowledgedbeforeanotarypublicandshallincludethefollowing statement: "This assignment issubjecttothe terms,conditions andprovisionofthe Development Agreement dated entered into byand between the SouthMiami Community Redevelopment Agency,the Land Use Restriction Agreement dated ,andthe PurchaseandSale Agreement dated ,totheextentapplicabletotheassignee,andtheassignee,by acceptingthis assignment,agreestocomplywithallapplicableterms, conditionsandprovisionofthose agreements.Thisassignmentshallnot become effective until(a)itis accepted bythe assignee,(b)the acceptance is acknowledged beforeanotarypublicbyapersonwithauthoritytoexecutethe acceptance of theassignmentand(c)aduplicateoriginalofthefullyexecuted and notarized assignment,aswellasa duplicate original ofan appropriate resolutionoftheentityin question,acknowledging theauthorityoftheperson signingtheacceptance of theassignment,isdeliveredtotheAGENCY." If SMCRA consents tothe assignment ofthis Agreement in writing,the DEVELOPER shallnotbereleased from performing alloftheobligations hereunder and will remain responsible for compliance byits affiliates withthe termsofthis Agreement unlesstheCityor SMCRA specificallyreleasethe DEVELOPER from its obligations hereunder.Upontermination of the AGENCY'S authority toactasthe South Miami Redevelopment Agency,all rightsthatthe AGENCY hasto enforce the Purchase andSale Agreement,this Agreementfor development,theLandUseRestrictionAgreementandthe conditions,covenants and restrictions contained inthe warranty deedshall automaticallybeassignedtotheCitybyoperation of thisAgreement withoutthepriororotherconsent of anyparty.TheCityshallbenamedas anintendedthirdpartybeneficiarytoallagreementssignedbythe AGENCYconcerningthesale,developmentandoperations of theProperty, including this Agreement,theLandUse Restriction Agreement andthe conditions,covenantsand restrictions containedintheWarrantyDeed. OtherthantheCitywhichisathirdpartybeneficiary of thisAgreement, nothing contained inthis Agreement shallbe construed to benefit any other third parties notnamedherein..TheCityshallbean additional obligee on #5717694 v3 42746-0001 C:\Users\ocabrera\Documents\Redlir.e of Development Agreement 051817 JS21.docx all construction surety bonds. Section 22.Taxes,Mortga2e and Obligations.The DEVELOPER (or successor in interest),shall pay the real estate taxes or assessments onthe Property orany part thereof when due.DEVELOPER shall not suffer any levy or attachment tobe made,orany lien,orany unauthorized encumbrance that is not transferred toa bond within thirty (30)days of the recording with the exception of the following: (i)Any mortgage(s)infavor of any institutional lenderforthe purposeoffinancinganyhardcostsorsoftcostsrelatingtotheconstruction of the Improvements inanamount(s)nottoexceedthevalue of the Improvementsasdeterminedbyanappraiserchosenbythelender;and (ii)Anymortgage(s)infavor of anyinstitutionallenderrefinancing orconvertingtopermanent financing anymortgageofthecharacter describedinclause(a)hereof,inanamount(s)nottoexceedthevalue of the Improvementsasdeterminedbyanappraiserchosen by the AGENCYinstitutional lender;and Section 23.Severability.If anyprovisionorprovisions of this Agreement shall,toanyextent,beinvalidorunenforceable,the remainder of this Agreement shallnotbeaffectedtherebyandtheremainingprovisionsshallbevalidand enforceable tothe fullest extent allowed bylaw. Section 24.Miscellaneous Provision.In the event a court must interpret anywordorprovisionofthis Agreement,thewordorprovisionshallnotbe construed against eitherpartybyreasonoftheir involvement inthe drafting or negotiating of this Agreement. Section 25.Inspection.AGENCYmaymakeorcausetobemade reasonable entries uponand inspections ofthe Property.The AGENCY will indemnify andholdthe DEVELOPER andits affiliates harmless from anyandall damages relatingtosuch inspection.However,nothing containedhereinshallbe construedtobeawaiverofthe AGENCY'S righttoimmunityasprovidedby Florida Statutes. Section 26.Nondiscrimination.The DEVELOPER agrees for itself,its subcontractors,itssuccessorsandassigns,toor of the Property oranypartthereof, that the DEVELOPER and such subcontractors,successors or assigns shall #5717694 v3 42746-0001 20 C:\Users\ocabrera\Documents\Rediine of Development Agreement j 051817 1521.docx j I comply with the Americans with Disabilities Act and,in addition,shall not discriminate upon the basis of race,creed,color,ethnicity,religion,sex,sexual orientation,age,familial status,or national origin inthe sale,lease or rental orin theuseor occupancy of the Property orinanyactor omission arising out of the construction of anyimprovementserectedortobeerectedinoronanypart thereof;andthis covenant shallbebindingtothe fullest extent permitted bylaw andequity,forthe benefit andinfavorof,and enforceable by the AGENCY,its successors and assigns,andany successor in interest to the Property,or any part thereof.The AGENCY shall have theright,inthe event of any breach of any such covenants,to exercise all the rightsand remedies andto maintain any actionsorsuitsatlaworinequityorother proper proceedingsto enforce the curing of suchbreach of covenant,towhichitoranyother beneficiaries of such covenant may be entitled. Section 27.Authorized Agent.The AGENCY and the DEVELOPER shalleachdesignateonepersonwhoshallbetheirauthorizedrepresentative withrespecttothisAgreement.The representative of theAGENCYshallbethe CityManager;therepresentative of theDEVELOPERshallbeprovidedatthe time of the joint executionofthisAgreement.However,theCityManagershall nothavetheauthorityto amend,modifyorwaiveany of theprovisions of this Agreement withouttheapproval of the AGENCY'S boardbywritten resolution of the board. Section 28.Waiver.Thepassing,approvaland/oracceptance of anypart oftheworkormaterialbythe AGENCY,itsArchitectorEngineer,ifany,orby anyagentor representative of theAGENCYshallnotoperateasa waiver of the AGENCY'S righttodemandstrictcompliancewiththetermsandconditionsof this Agreement.Noactor omission or verbal representation or statement shall be treated asan express or implied waiver andall waivers shall bein writing signedbythepartywhoisallegedtohave waived anyofthetermsand/or conditions ofthis Agreement and,asto AGENCY,bya resolution passedbythe SMCRA and as tothe City,bya resolution passedbytheCity Commission. This Agreement contains the entire Agreement ofthe parties andno modification oramendment of anytermsorprovisions of thisAgreementshallbevalidor bindingunlessit complies withthis paragraph.This Agreement ingeneraland this paragraph in particular,shall notbe modified,amended or waived exceptin writingsignedbyboth parties afterbeing approved byresolutionofthe appropriate party.The waiver of anybreachordefault of any of theterms of this Agreementshallnotactasawaiverofanysubsequentbreachordefault.This Agreementshallbebindingupontheheirs,guardians,personal representatives andassigns of bothoftheparties. #5717694 v3 42746-0001 21 C:\Users\ocabrera\Documents\Redlinc of Development Agreement 051817 lS21.docx Section 29.Waiver of Jury Trial.AGENCY and DEVELOPER knowingly,irrevocably voluntarily andintentionallywaiveanyright either may havetoatrialby jury inStateorFederal Court proceedings in respect toany action,proceeding,lawsuit or counterclaim arising out of this Agreement andthe Contract Documents orthe performance of theWork thereunder. Section 30.Termination of SMCRA.In the event of the termination orexpiration of the AGENCYs authority,the City shallhavethe right to enforce this Agreement. Section 31.Grants,Directives and SMCRA Requirements.The DEVELOPER shall,afterdelivery of thedeed,complywithallgrantandMiami- DadeCountyDirectives,includingtherequirements of anygrantsthatwereused topurchasethePropertybytheAGENCYwhichremainineffect.Allapplicable grants,directivesandrequirementsarefoundintheattached Exhibit G. DEVELOPERshalltimelyprovidetheAGENCYwithallinformationreasonably requiredbytheAGENCYforittotimely file allreportsrequiredbytheterms of thegrant,directives,andSMCRArequirements.Inallrespectsthatthe DEVELOPER fulfills the terms of the grants,directives and requirements,such as inthehiring of Section3residentsforconstructionandinthecommercial businesslocatedonthedevelopedProject,theDEVELOPERshallreportsuch effortstotheAGENCYas frequently asrequiredbythegrants,directivesand SMRCRA requirements,butnotless frequently than quarterly.In addition,the DEVELOPERshallestablishapaidconstructionapprenticeprogramforSMCRA residentsandshallcomplywiththe requirements oftheFirstSourceJobRegistry andHiringReferralProgram("Referral Program")establishedbytheSMCRAby resolution.ForthepurposesoftheReferralProgramandtherequirements establishedforthatprogrambythe SMCRA,the Project andthisAgreementshall betreatedas if itinvolved "tax generated revenue"andthoseguidelinesshall apply whether ornotthe Referral Program is funded orin operation atthe time the project is being constructed and during its operations.Notwithstanding the provisions ofthe Referral Program,the DEVELOPER will useall reasonable effortstohire residents locatedintheSMCRAor the Cityto fill atleastfifty (50%)ofall construction jobs and fifty (50%)ofall permanent jobs. Notwithstanding the foregoing,the DEVELOPER willnotbeobligatedtohire individuals thatitreasonablybelievesarenotqualifiedtohandlesuchjob responsibilitiesbutitshallcomplywiththerequirements of theGrantagreements in question concerning job creation.Notwithstanding anything tothe contrary in this Agreement,neitherDEVELOPERnoritsaffiliatesshallberesponsiblefor anydefaultsorbreachesunderthetermsoftheGrantAgreementscausedbythe fault of the AGENCY.Dan—please review and confirm that you can conform to the above hiring requirements. #5717694 v3 42746-0001 22 C:\Users\ocabrera\Documents\Redline of Development Agreement 051817 1521 docx Section 32.Land Use.TheAGENCYshallapplyfora modification asis appropriate toallowthe development of mixeduse commercial residential land use andSRzoning(4 stories)toallowfor development of uptoatleasta height of three (3)stories in areas 1.and 2. Section 33.Design.The DEVELOPER shall submit the conceptual site plan andrenderingstotheAGENCYforthe AGENCY'S approvalatleast thirty (30) dayspriortothedatethatthe DEVELOPER submits its firstpermit application. No permit application shallbe submitted until the AGENCY approves the conceptual site plan andrenderings.Suchapprovalshallnotbe withheld if the conceptual site plan is materially similar tothe Project Schematic. Section 34.Recording.This Agreement maybe recorded by either party. Section 35.Specific Performance.Thepartiesheretoshallhavetheright toenforcethisAgreementbyspecificperformance. Section 36.Remedies.Allremediesprovidedbythis Agreement or allowed inlaworequitytotheAGENCYshallbe exercisable bythe AGENCY. Allremediesshallbecumulativeandthe enforcement of oneremedyshallnot prevent the enforcement of any other of the AGENCY'S remedies. IN.WITNESS WHEREOF,the AGENCY and DEVELOPER have caused thisAgreementtotakeeffectonthedayandyearfirstabovewritten. DEVELOPER: #5717694 v3 42746-0001 23 C:\Users\ocabrera\Docurnents\Redline ofDevelopmentAgreement C51817 1S2i.cocx W694v3 42.746-0001 \Users\ocabrera\Documents\Redline of Development Agreement 18171521.docx AGENCY: SOUTH MIAMI COMMUNITY REDEVELOPMENT AGENCY By: Name:The Honorable Philip K.Stoddard Title:Chairperson LAND USE RESTRICTION AGREEMENT TfflS LAND USE RESTRICTION AGREEMENT (this "Agreement")ismadeandentered intobytheSOUTHMIAMI COMMUNITY REDEVELOPMENT AGENCY(the "Agency"),and,aFlorida (the"Owner"). PREAMBLE WHEREAS,theAgencyhasbeencreatedand organized pursuanttoandinaccordance withthe provisions ofsection 163.330 et seq.,Florida Statutes,withlegal authority tosellLandto the DEVELOPER andenterintothis Agreement assetforthin sections 163.345,163.370(2)(e)7, 163.380(3)(a)(requiring30daysofpublic notice),Florida Statutes;and WHEREAS,theAgencyhasagreed,undercertainconditions,toselltotheOwnerthe land described on Exhibit "A"attached hereto(the "Land");and WHEREAS,the Owner has entered into that certain Agreement Between Developer and theCityof South Miami Community Redevelopment Agency (the "Development Agreement5'); and WHEREAS,the Owner shall develop the Development (as herein defined)substantially as described in Exhibit "D"tothe Development Agreement;and WHEREAS,the Agency andthe Owner desire to memorialize asa covenant running with the Land,certain Agency requirements relating to the improvements that Owner must develop and construct onthe Land andthe use of such improvements for affordable housing purposes. NOW,THEREFORE,in consideration ofthe mutual covenants and undertakings set forth herein,and other good and valuable consideration,the receipt and sufficiency of which is hereby acknowledged,the Agency and the Owner do hereby contract and agree as follows: AGREEMENT ' Section 1.Definitions and Interpretation. (a)Unless otherwise expressly provided herein or unless the context clearly requires otherwise,the following terms shall have the respective meanings set forth below for all purposes of this Agreement. "Agency"shall meanthe South Miami Community Redevelopment Agency until such time asit ceases toexist and thereafter the word "Agency"shall mean theCityof South Miami. "Code"shall meanthe Internal Revenue Code of 1986 as amended,andany successor statute as it applies tothe Tax Credits described herein,together with all applicable final,temporary or proposed Treasury Regulations and Revenue Rulings thereunder.Reference in this Agreement to any specific provision of the Code shall be deemed to include any applicable successor provision of such provision oftheCodethatmayapplytotheTax Credits described herein. #5550296 v4 42746-0001 "Commercial Space"meansthatportionofthe Development tobe leased orusedfor commercial (non-residential)purposes,consistingofaminimumof4,000groundfloorsquarefeet. "CompliancePeriod"shall mean,with respect toanybuildingthatis included inthe Development,a period of40 years beginning onthedatethe Development is placed in service for lease to Low-Income and Workforce Tenants and ending on the 40th anniversary thereof. "County"shall mean Miami-Dade County,Florida. "Development"means the Land,the Commercial Space and the Residential Space andall improvements ancillary thereto. "GrossRent"shall mean any amount paidbyatenantin connection with the occupancy ofa residential rental unit,plusthe cost ofany services thatare required tobepaidbya tenant asa condition for occupancy,plus the cost of any utilities,other than telephone,for such unit.If any utilities (other than telephone,cable or internet)are paid directly bythe tenant,"gross rent,"also includes a utility allowance determined asset forth inthis paragraph."Gross Rent"does not include any payment under Section 8ofthe United States Housing Act of 1937 or any comparable federally funded tenant or project based rental assistance program with respect tosuchunitortothe occupants thereof,orany fee for supportive service thatis paid tothe owner oftheunitonthe basis ofthelow incomestatusofthetenantofsuchunitbyany governmental programofassistanceorbyanytax- exempt organization if such program or organization provides assistance for rent and the amount of assistance provided forrentisnot separable from the amount of assistance provided for supportive services within the meaning of Section 42(g)(2)(13)of the Code.For purposes ofthe foregoing,the allowable utility allowance is:(i)the United States Department ofHousingand Urban Development ("HUD")-published utility allowances (except as provided in clause (iv)hereof)inthe case ofa building whose rents and utility allowances are reviewed by HUD onan annual basis;(ii)the applicable Public Housing Agency ("PHA")utility allowances established for the Section 8 Housing Choice Voucher Program (except as provided in clause (iv)hereof)inthe case ofa building occupied by one or more tenants receiving HUD rental assistance payments ("HUD Tenant Assistance"):(iii)in the case ofa building for which there is neither HUD Tenant Assistance,noran applicable HUD or RD utility allowance,the applicable PHA utility allowance;however,utility allowances based on estimates from local utility providers certifying the estimated costs of all covered utilities for units of comparable size and construction inthe county where the building is located,determined in accordance withInternal Revenue Service Notice 89-6,maybe obtained,in which casethose estimates shall apply toall units of similar size and construction in the building;or (iv)the applicable RD utility allowance inthe case of any unit in a building where either the building receives RD housing assistance (including a building thatis HUD-regulated)or any tenant receives RD housing assistance (including any Low-Income Tenant receiving HUD Tenant Assistance who resides ina building where the building or any other tenant receives RD housing assistance). "Low-Income Tenants"shallmeanindividualswhoseincomeisnogreaterthansixty (60%)ofthe area median gross income (adjusted for family size)as established by HUD applicable to Miami-Dade County andas published from time to time.Inno event,however,shall occupants ofaunitbe considered tobeoflow income ifallthe occupants are students,but excluding from such definition the following:(x)single parents who are students withall children also being students andthe household receives Aidto Families with Dependent Children ("AFDC")payments, orifthestudentsareenrolledincertain federal,stateorlocaljobtrainingprogramsandare considered lower income,or(z)for developments receiving credit allocations afterJune 30,1992,a housing unit occupied exclusively by full-time students may qualify as lower income ifthe students area single parent and his/her minor children and none ofthe tenants area dependent ofa third party.) #5550296 v4 42746-0001 "Low-Income Unit"shallmeananyunitinabuildingif:(i)the unitisaRent-RestrictedUnit satisfyingtherequirementsofSection2hereof,and(ii)theindividualsoccupyingtheunitareLow- Income Tenants(ortheunitisheldavailableforrentaltoLow-IncomeTenantsifpreviouslyrentedto andoccupiedbyLow-IncomeTenants)assetforthinSection3(a)hereof.However,Low-Income Unitsmaybe exchanged forWorkforceUnitsandviceversa,provided thetotalWorkforceUnitsdo notexceed20percent of all of theUnitsavailableforresidentialtenantsandthetotal of theavailable Low-IncomeUnitsisneverlessthan80percentofalloftheUnitsavailableforresidentialtenants. Furthermore,thetypeofunits,suchasaone,twoorthreebedroomapartment,atownhouseunitand aduplexunits,shallbe proportionally distributedsothatatleast80%of eachtypeisavailabletoLow- IncomeTenantsandtheremainderofeachtypeisavailabletoWorkforceTenants. "Owner"shallmeantheOwnerandthe Owner's grantees,successorsand/orassignsandall futuregrantees,successors and/or assignswhoseright,titleand/orintereststemsfromtheOwner. "Proprietary Commercial Space"shallmeanthatportionofthePropertyanticipatedtobe occupiedby Family DollarStoreandtoconsistofoneunit totaling approximately 8500squarefeet. "RelatedPerson"shallmean,toa person,a relationship suchthatthe "related person"bearsa relationshiptosuchpersonspecifiedinSection 267(b)orSection707(b)(1)oftheCode,ortherelated personandsuchpersonare engaged intradesor businesses under common control withinthe meaning of Section 52(a)-(b)ofthe Code,except thatfor purposes hereof,the phrase "10 percent"shall be substituted forthe phrase "50 percent"in applying Section 267(b)and Section 707(b)(1). "Rent-Restricted Unit"shall mean a Residential Rental Unit where the Gross Rent with respecttosuchunitdoesnotexceedthirtypercent (30%o)oftheimputedincomelimitation applicable to such unit.For purposes ofthe foregoing,the imputed income limitation applicable to a Residential Rental Unit is the income limitation set forth for Low-Income Tenants and Workforce Tenants occupying theunitifthenumberof individuals occupyingtheunitare(x)one(1) individual,inthecaseofaunitthatdoesnot have a separate bedroom,and(y)oneand one-half (1.5)individuals foreach separate bedroom,inthecaseofaunitthathasoneormore separate bedrooms.The Owner andanytenantshallbe obligated to comply withthe restriction set forth in this Agreement.Thelevel of income forresidentialtenantsshallbebasedonthe Area Median Income(AMI)asdeterminedbytheMiamiDadePublicHousingAgency,asmodifiedfromtimeto time.TheOwnershallrequirethatthe residential unitsshallberentedtotenantswhoseannual household earnings,as defined bythe Miami Dade Public Housing Agency,areatorlessthanthe following levels,oras required to qualify forthe current revitalization grant,thelatterof which shall take precedence,unless revised by amendment to this Agreement and approved by resolution of theAgencyoritssuccessor. •80%o of residential units shallbe rented to households whose annual household earnings are atorbelow60%oftheAdjustedAreaMedianIncome. •20%ofthe residential unitsshallbe rented to households whose annual household earnings areatorbelow 80%o of theAdjustedAreaMedianIncome. "Residential Rental Units"shallmeandwellingunitsmadeavailableforrental,andnot ownership,byLow-IncomeTenantsandWorkforceTenants,each of whichunitsshallcontain complete living facilities thataretobeused other thanonatransientbasis together with facilities thatare functionally relatedor subordinate totheliving facilities.Theunits shall atall times be constructedand maintained in substantial accordance withthe applicable building code standards of theCounty.Forpurposesofthe foregoing,aunitthat contains sleeping accommodations and #5550296 v4 42746-0001 kitchenandbathroomfacilitiesandthatislocatedinabuildingusedexclusivelytofacilitatethe transition of homelessindividualstoindependentlivingandin which agovernmentalentityor qualified nonprofit organization providessuchindividualswith temporary housingandsupportive services designedtoassistsuchindividualsinlocatingandretaining permanent housingshallnotbe deemed tobeaunitoccupiedona transient basiswithinthemeaninghereof. "Residential Space"shallmeanresidentialapartmentunitstownhome and/orduplexunits (b)ThetermsandphrasesusedintheRecitalsofthisAgreementhavebeen includedforconvenienceofreferenceonly,inthemeaning,constructionandinterpretation of all suchtermsandphrasesshallbedeterminedbyreferencetothisSection 1.Thetitlesandheadings in this Agreement have been inserted for convenience of reference onlyandshallnotbe deemed to modify andrestrictanyotherprovisions of thisAgreement. (c)Unlessthecontextclearlyrequiresotherwise,wordsofmasculine,feminineor neutergender,asthecasemaybe,shallbeconstruedasincludingtheothergenders,andwordsof thesingularnumbershallbeconstruedtoincludethepluralnumber,andviceversa.This Agreement andall of thetermsandprovisions hereof shallbeconstruedtoeffectuatethepurposes set forthinthis Agreement andto sustain the validity hereof. "Student"shallmeananindividualwhoisattendinganeducationalinstitutionasafull-timestudent forsomepartofeachof five calendarmonths during theyear.Thephrase"attendingan educational institutionasafull-time student"includesanypartofamonththattheindividualisregisteredinschoolfor thenumberofhoursconsideredbytheschooltobefull-timeattendance,regardlessofwhetherclassesare actually attended in that month. "Workforce Tenants"shallmeanindividualswhoseincomeisnogreater than eight (80%>) of theareamediangrossincome(adjustedforfamilysize)asestablishedbyHUD. "Workforce Units"shallmeananyunitinabuildingif:(i)theunitisa Rent-Restricted Unit forindividualswhoseincomeisnogreaterthaneight (80%>)oftheareamediangrossincome (adjusted forfamilysize)as established byHUD. Section 2.Low-Income and Workforce Housing Development. The Agency and the Owner hereby declare their understanding and intent that,during the Compliance Period,the Residential Space istobe owned,managed,and operated asa low income and Workforce housing development.Tothat end,the Owner hereby represents,covenants and agrees as follows: (a)The Residential Space is being constructed for purposes of providing for80 percent ofitsunitsfor Low-Income Tenantsandfor20percentofitsunitsfor Workforce andLow- IncomeTenants,andtheOwnershallown,manageandoperatetheResidentialSpace accordingly;and (b)Thatthere shall be40 apartment type Residential Rental Units and 8 townhouses and/or duplex type Residential Rental Units andthatallofthe Residential Rental Units ofthe same type shallbe similarly constructed,otherthan for number of bedrooms inthe apartment Residential Rental Units,andeachandevery Residential Rental Unitshall contain complete facilities for living,sleeping,eating,cooking and sanitation forat least a single individual ora family;provided, however,thataunitthat contains sleeping accommodations and kitchen and bathroom facilities and thatis located ina building,used exclusively to facilitate the transition of homeless individuals to independent living and in which a governmental entity ora qualified nonprofit organization provides such individuals with temporary housing and supportive services designed to assist such #5550296 v4 42746-0001 4 individualsinlocatingandretainingpermanenthousing,shallnotbedeemedtobeaunitoccupied ona transient basis within the meaning of thisSection2(c);and (c)Thatall of theResidentialRentalUnitsshallbecontructedandmaintainedin accordancewiththedesignoriginallyapprovedintheDevelopmentAgreementunlessthedesignis modifiedinwritingandapprovedbywrittenresolutionoftheAgencyandtheCity of SouthMiami. (d)That,during the Compliance Period,noneofthe Residential RentalUnitsinthe Development shallatanytimebeutilizedona transient basis;exceptasprovided in thisSection 2(d),noneoftheResidentialRentalUnitsintheDevelopmentshalleverbeleasedorrentedforan initialperiod of lessthanone hundred eighty (180)days;and neither the Residential Spacenor any portion thereof shalleverbeused as ahotel,motel,dormitory,fraternityhouse,sorority house,roominghouse,hospital,sanitarium,nursinghome,resthome,trailercourtortrailer park, or health clubor recreational facility (otherthan recreational facilitiesthatare available onlyto tenants andtheir guests;and (e)That,duringtheCompliancePeriod,theOwnershallnotconverttheDevelopment tocondominiumownership;and (f)....reservcdand (g)That,duringtheCompliancePeriod,theResidentialRentalUnitsinthe Development shallbeleasedandrented,ormadeavailablefor rental ona continuous basis,to membersofthegeneralpublicwhomeettheincomerequirementsofthis Agreement. Notwithstandingtheforegoing,totheextentpermissibleunderfederalandstatefairhousinglaws, theOwner shall use reasonable efforts initstenant application processand selection process to rentunitsintheProjectas follows:(i)firsttocurrentandformer SMCRA residents,(ii)social workerswhoprovidea minimum of 40hoursperweek working withchildrenwhoresidewithin theCRA boundaries;(iii)existingSouthMiami residents (iv)professional "Role-Model"as definedinthe SMCRA Homeowner Assistant Program (v)non-resident working inSouth Miami; and(vi)then,to non-residents of South Miami.The Owner shall not give preference in renting Residential Rental Units inthe Development to any other particular class or group of persons, otherthan Low-Income and Workforce Tenants as provided inthis Agreement;and (h)That the Residential.Space shall consist ofand shall provide,ata minimum,the features,amenities and programs described in Exhibit"D"tothe Development Agreement. (i)That,during the Compliance Period,the Development shall not include a unitina building whereall Residential Rental Units in such building arenot also included inthe Development;and 0)That,during the Compliance Period,nopartofthe Development shall at anytimebe owned orusedbya cooperative housing corporation;and (k)That,duringtheCompliancePeriod,Ownershallnotrefusetoleaseaunit toaholderofavoucheror certificate of eligibility under Section 8oftheUnitedStates Housing Actof 1937 becauseofthestatusofthe prospective tenantassucha holder;and (1)ThattheOwner shall not discriminate onthe basis ofage,race,creed, religion,color,sex,marital status,family status,handicap,disability,sexual orientation or national origin inthe lease,useor occupancy ofthe Residential Spaceorin connection withthe #5550296 v4 42746-0001 5 employment orapplicationforemploymentofpersonsfortheoperationandmanagement of the Development;provided,however,thatnothing herein shallbe deemed to preclude the Owner from discrimination basedonincomeinrentingResidentialRentalUnitssetasideforLow- Income and Workforce Tenants;and (1)That theOwnershallsubmittotheAgencyallreportsrequiredtobesubmittedto the Florida Housing FinanceCorporationpursuanttotheGrantsandMiami-DadeCounty Directives madeapart of Exhibit G of the Development Agreement;and (m)That,duringtheCompliancePeriod,theOwnershallcomplywiththefollowing commitments that werethebasis of theAgency'sawardofthe project totheOwner: (i)80%of the residential unitsshallbe rented tofamilieswhoseannual household earningsareatorlessthan60%of theArea Median Incomeasestablishedby UnitedStatesDepartment of HousingandUrbanDevelopment("HUD")forMiami-Dade Countyandasadjustedforthesizeofthetenant'sfamily(hereinafterreferredtoas "AMI"),and20%of the residential unitsshallbe rented tofamilies whose annual householdearningsareatorlessthan80%oftheAMI.Inaddition,the Development shallnotbesoldorresoldbytheOwneroverthenext40yearswithoutthebuyer's purchaseoftheentireDevelopmentandwritten assumption ofallofthe commitments, includingthe commitment of theaffordabilityanduse restrictions,setforthherein.The assumptiondocumentshallbeinaformandsubstancereasonablysatisfactorytotheCity of South Miami and AGENCY if itisin exisitence at said time. (ii)(ii)For purposes of complying with the requirements in Section 2(m)(i)above,a tenantshallbeallowedtomaintainthetenant'sstatusasaqualified Low-Income Tenant,or,asthecase maybe,aqualifiedWorkforceTenantandmaycontinueto occupy thedesignatedrentalunituntilsuchtime asthe tenant's incomeverificationshowsthatthe tenant's householdannualincome(adjustedforfamily size)exceeds 140percentoftheincome limits forthatrental unit.However,ifthetenantdoes exceed the income limit andshouldanyunitwithahigherincomelimitbeavailableforrent,thetenantmayremainin thesameunitprovidedhisorherhousehold annual income (adjusted for family size)doesnot exceed 140 percent ofthe income limitforthe available unit with the higher income limit.Inthat case,the Owner shall adjustthe accounting of available unitssoonemoreunitis available atthelower income limitandone fewerunitis available atthe higher income limit. (iii)TheOwnershallobtainfromalltenants,andmaintainon file,anIncome Certification pursuanttothe requirements and procedures reasonably required bythe Agency.TheOwnershallthereafteralsoobtain,90to120daysbeforethe anniversary dateof each lease and maintain on file anIncome Certification from each Tenant (to determine whether thethencurrentincomeofsuch tenants residingin the Development exceed the applicable income limits,adjusted for family size.In addition,the Owner shall requireeachtenanttonotifytheOwnerofany material changeof information inhis,her ortheir,asthecasemaybe,mostrecent Income Certification. (iv)TheOwnershall maintain complete andaccurate records pertaining tothe Residential RentalUnitsandaffordablecommercialspaceforatleastsix(6)years,or withintheretentionperiodsetforthinthestateofFloridapublicrecordsretentionrules,. whicheverisagreaterretentionperiod,followingthe indicated dateofeachsuchrecord andshallpermitanydulyauthorizedrepresentativeoftheAgencytoinspectthebooksand records of theOwner pertaining toalltenantsresidingin the Development upon reasonablenoticeandatreasonabletimes.Agencyshall have therighttomakeitsown copies of these records using itsown copier and without cost to Owner. #5550296 v4 42746-0001 (v)Public Records:OWNER andall of its subcontractors are required to comply with the public records law (s.l 19.0701)while providing goods and/or services on behalf of the SMCRA and the OWNER,under such conditions,shall incorporate this paragraph inall of its subcontracts for this Project andshall:(a)Keep and maintain public records requiredbythepublicagencytoperformthe service;(b) Upon request fromthe public agency's custodian ofpublicrecords,provide the public agency with acopyofthe requested records orallowthe records tobe inspected or copiedwithinareasonabletimeatacostthatdoesnotexceedthecost provided inthis chapteroras otherwise provided bylaw;(c)Ensurethatpublicrecords that are exempt or confidential and exempt from public records disclosure requirements arenot disclosed except as authorized bylawfor the duration of the Contract term and following completion oftheContract if OWNERdoesnot transfer the records tothe publicagency;and(d)Uponcompletion of theContract,transfer,atnocost,tothe publicagencyallpublicrecordsin possession ofOWNERorkeepandmaintainpublic records required bythe public agencytoperformtheservice.If OWNER transfers all publicrecordstothepublicagencyuponcompletionoftheContract,OWNER shall destroyany duplicate publicrecords that areexemptor confidential and exempt from publicrecordsdisclosurerequirements.If OWNER keepsandmaintainspublicrecords upon completion oftheContract,OWNERshallmeetallapplicable requirements for retainingpublicrecords.Allrecordsstoredelectronicallymustbeprovidedtothe public agency,uponrequestfromthe public agency's custodian ofpublicrecords,ina format that is compatible withthe information technologysystemsofthe public agency. IF OWNER HAS QUESTIONS REGARDING THE APPLICATION OF CHAPTER 119,FLORIDA STATUTES,TO THE OWNER'S DUTY TO PROVIDE PUBLIC RECORDS RELATING TO THIS CONTRACT,CONTACT THE CUSTODIAN OF PUBLIC RECORDS AT 305-663-6340;E-mail: mmenendez@southmiamifl.gov;6130 Sunset Drive,South Miami,FL .33143. (vi)Background Screening.Allpersonnelandvolunteersthatwillprovide any service with vulnerable persons,as defined inSection435.02,Fla.Stat.,mustbe incompliancewithLevelIIBackgroundScreeningand fingerprinting requirementsas per,FloridaStatuteCh.435priortothescheduledstartofanyemployeeorvolunteer. OWNER shallpreventanyandallofits personnel,including volunteers,from engaginginanysuchrelatedactivitieswithouthavingpassedabackground screening tothesatisfactionoftheAgency.Aviolationofthisrequirementshallconstitutea substantial breach of this Contract. (vii) (viii)The Owner shall immediately notifythe Agency ifatanytimethe Residential Rental Unitsinthe Development arenot occupied or available for occupancy as provided in Section2(m)(i)above. (n)TheResidentialSpaceshallbeLEEDcertified(ortheequivalentthereof). (q)That,duringtheCompliancePeriod,theOwnershallobtainandmaintainall insuranceset forth in Exhibit E,attached tothe Development Agreement,aswellas fire, windstormandgeneralhazardinsuranceconsistentwithlocalindustrystandardsforsimilar properties.Subjecttotheprovisionsofapplicableloandocumentsevidencingaloansecuredby the Development,casualty insurance proceeds shallbeusedtorepairthedamagedonebythe insuredeventtotheconditionexisting immediately priortosuchevent. #5550296 v4 42746-0001 7 Section 3.Community Commercial Space. (a)OwnershalldividetheCommunityCommercialSpaceintofour(4)separateunitsto beleasedtofour(4)separateanddistinctlesseesasapprovedinitiallybytheAgency,whoshallnot unreasonably denysuchleases.Thetype of commercialtenant that theAgencydesiresto occupy thecommercialspaceisa community basedtenantasfurtherdescribedinthe Development Agreement ("Agency Approved Commercial Tenant"or"AACT").Notwithstanding theforegoing, intheeventthattheOwnerisunableto find aseparateAACTtoleaseeachofthefourseparate unitsafterreasonableeffortstodoso,theOwnermaybepermittedtoleasesuchvacantunitor unitstoaseparate tenant of the Owner's choosing ("Owner's Tenant")foreach of such vacant units.Each of the Owner's Tenants shallonlybe allowed tolease one of the vacant unitsata time (unless otherwise permitted bythe Agency initssolebutreaonsblediscretion)and if thereismore than onevacantunit avalilable to Owner's Tenants,noneofthe Owner's Tenantsmaybe affiliated with eachotherandeachmustbefinanciallyandorganizationallyseparateandindependent of the other. (b)\The AACT rent(onatriplenetbasis)shallinitiallybe SI4.00 persquarefoot,which amountshallbeadjustedupwardbytheyearlychangeinthe CPI applicabletotheCity of South Miami.Eachrental agreement shallreceiveanannualadjustmentbasedontheConsumerPrice Index -AllUrban Consumers 12-Month PercentChangeforthe Miami-Ft.Lauderdale FLareaas establishand/orpublishedbytheUnitedStatesDepartmentofLabor,BureauofLaborStatistics (CPI)thatshall have theeffect of increasing ordecreasingtheannualrental amount foreach tenant to maintain appropriate rental amounts,taking inflation into account. (c)..Further,thisbelow market rentisintendedtoattractcommunitybasedtenantsthat willbenefitfromsuchbelowmarketrentandprovidethemwithqualitycommercialspaceinthe SouthMiamineighborhoodfortheiruseinprovidingaffordableservicestotheresidentsofsuch neighborhood.IntheeventthattheOwnerisunable,afterusingcommerciallyreasonableefforts, toattractanAACTtenantforsuchCommercialSpaceitmayleasesuchCommercialSpacetoother tenantsforatermnottoexceed5yearsandwithouttherent restrictions hereinsetforth.Ifitdoes so,itmustmarketsuchspacetocommunitybasedtenantsduringthelastyear of suchleasefora period of nolessthan6monthsasaconditiontoanyrenewaloftheleasetosuchnon-AACT.The affordablerentalrateshallbeadjustedupwardordownwardbasedontheapplicableCPI adjustmentTom—I don't understand this downward adjustment language.TFP:Ithas been my experience that when rent is tied to the CPI that rent inceases beyond the fair market rate unless the downward adjustment is made. (d)TheCommunityCommercialSpaceshallbeLEEDcertified(ortheequivalent thereof). Section 4.Proprietary Commercial Space. (e)OwnershallprovidetheProprietaryCommercialSpaceasasingleunit of approximately8,500squarefeettobeoccupiedinitiallybyaFamilyDollarretailstore. Section 5.Sale,Lease or Transfer of the Development or any Building.The Owner shallnotenterintoasale,exchange,assignment,conveyance,transfer or other disposition (collectively,a"Disposition of theDevelopment,oranysale,transfer,assignment,encumbranceof, oradditionofpartnershipormembershipinterestsin,theOwneriftheDispositionofthe Development or the Disposition of the Owner lessens the Owner's,orthe successor owner's, #5550296 v4 42746-0001 financial ability toperformtheOwner's duties underthetermsofthisCovenantduringthe Compliance Period,without theprior written consent ofthe Agency.Notice ofsuch Disposition shallbe given tothe Agency 60 days prior thereto forthe purpose of investigating theworthofthe personto whom the Disposition istobemadeand provided thatthecurrentowner,theproposed successorownerandtheprincipalpersonorpartiesinvolvedinthe Disposition of theOwneer cooperate withtheAgencyandprovidetheAgencywiththe financial information necessaryto establish thatthe successor owner's financial ability is equal toor greater than thecurrent owner or, inthecaseofa Disposition ofthe Owner,thatthe Disposition willnot lessen the fianancial ability of the current owner,and further provided thatthe parties involved inthe Disposition agreetoand assumes the covenants hereofbyan instrument recorded concurrent withthe Disposition Ifanyof these conditions arenot met,then the Disposition shall notbevalid unless approved by written resolution ofthe Agency.It is hereby expressly stipulated and agreed that any Disposition ofthe Development orofany building inthe Development bythe Owner in violation ofthisSection5shall benull,voidandwithout effect,shallcausea reversion oftitletothe transferor Owner,andshallbe ineffective to relieve the Owner ofits obligations underthis Agreement.TheOwnershall include, verbatim orby incorporation by reference,all requirements and restrictions containedinthis Agreement in any deedor other documents transferring any interest in the Development orinany buildinginthe Development toanyother person or entity.Ifthe Owner hasreceiveda written notice of default hereunder from Agency,and such default has not been materially cured,then Owner shall notbe entitled to refinance any existing mortgage debt without the prior consent of Agency,which consent shall notbe unreasonably withheld provided the debt does not exceed the amount of the initial indebtedness. The restrictions contained above shall notbe applicable toanyofthe following: (1)any transfer pursuant toor in lieu ofa foreclosure or any exercise of remedies (including, without limitation,foreclosure)under any mortgage on the Development;provided,however,that neither the Owner nor any Related Person to the Owner shall acquire any interest inthe Development during the remainder ofthe Compliance Period and provided that the Agency shall have been given an opportunity to cure a mortgage default and step into the shoes of Owner,or its grantees,successors or assigns andtheir grantees,successors or assigns witha concomitant transfer ofallof their rights,title and interest in the Property from the Owner to the Agency.The Agency acknowledges that such cure may include the repayment of any debt owed bythe Owner toa lender * seeking foreclosure of its mortgage.The Agency shall have a right to enforce this provision by specificperformanceand/orbyinjunctive relief; (2)(3)grants of utility-related easements and governmental easements,shown on the title policy approved by the Agency and any other easement and use agreements which may be consented toby the Agency and service-related leases or easements,such as laundry service leases or television cable easements,over portions ofthe Development;provided,however,the same are granted inthe ordinary course of business in connection with the operation of the Development as contemplated by this Agreement; (4)leases of affordable commercial space and apartment units to tenants,including Low-Income Tenants,in accordance with this Agreement;provided that no apartment units may be subleased to anyone. (5)any sale or conveyance toa condemning governmental authority asa direct result ofa condemnation ora governmental takingora threat thereof; (6)the placing ofa subordinate mortgage lien,assignment of leases and rents or security interests on or pertaining tothe Development if made expressly subject and subordinate tothis Agreement and provided the total debtthat encumbers or liens the property does not exceed thetax assessed value of the property;or (7)any change in allocations or preferred return of capital,depreciation or losses or any final adjustment in capital accounts (all of which may be freely transferred or adjusted by Owner pursuant toOwner'spartnershipagreement). #5550296 v4 42746-0001 However,notwithstanding anything contained hereintothecontrary,theAgencyshallhavetheright, attheAgency'soption,tocureanydefaultoftheOwner(forareasonableperiod of time)underany financing agreements enteredintobytheOwnerinconnectionwith theDevelopment in order to avoidadefaultthatcouldresultinforeclosureofanysecurityinterestandthatsuchrightsofthe Agencymaybeenforcedbyspecificperformanceorotherwise.IntheeventthattheAgencycuresa default,theOwnerorany of Ownersgrantee,successor orassigns,ortheirgrantees,successors and/or assignsshallassignall of their rights,titleandinterestinandtothe Development tothe Agency.TheAgencyshallhavearighttoenforcethisprovisionbyspecificperformanceand/orby injunctive relief.Moreover,in the event that the Owner's interest isforeclosed upon,and if the Development,or any part thereof,issoldasaconsequenceof the foreclosure,allproceedsof thesaleinexcess of theforeclosure judgment shallbethe property of andpaidtothe SMCRA or its sussessor and/or assigns.The Agency shall have the right to intervene in any foreclosure proceeding to protect the Agency's interest andto enforce the terms of this LURA[Steve /Tom -openitem)Owneragreesthatanyandall financing agreements and/ormortgagesshallcontaina provisionthatgrantstheAgencysuchrights.Inaddition,alldeeds,mortgagesandother documents conveyinganyinterestin,orlienon,theProperty,shallcontainareferencetothisAgreement.. Section 6.Development within Agency's Jurisdiction.The Owner herebyrepresentsand warrantsthateachbuildinginthe Development shallbe located entirelywithinthelimitsofthe County at location described in Exhibit "A". Section 7.Term of this Agreement. (a)ThisAgreementshallbecomeeffectiveuponthedatetheOwnerandtheAgency executesthis Agreement,andshallremaininfullforceandeffectuntilthe expiration ofthe Compliance Period oras otherwise provided inthis Section 7.Upon the termination ofthis Agreement,uponrequestofanypartyhereto,theAgencyandtheOwneroranysuccessorparty heretoshallexecutea recordable document prepared bytheAgencyoritsCounselfurther evidencing such termination. (b)The restrictions contained in Section 2and Section 3ofthis Agreement regarding the useand operation ofthe Development andof each building inthe Development shall automatically terminate temporarily pending repair or reconstruction intheeventof involuntary noncompliance causedby fire,orpermanentlydueto:(i)achangeina federal laworanactionofa federal authority afterthedatehereofpreventscompliancewiththe covenants expressed hereinbutonlytotheextent necessarytocomplywith federal laworactionofa federal authority (as determined bytheAgency uponthe advice of Counsel);(ii)condemnation oran event similar toa condemnation;or(iii) foreclosureortransferoftitlebydeedinlieuofforeclosuretoanentityotherthantheOwnerora Related Person ofthe Owner,provided Agency does not exercises itsrightto step intothe shoes of theOwnerwhenaforeclosureisthreatenedorcommenced.Insuchevent,upontherequestandat the expense ofthe Owner,the parties hereto shall execute an appropriate document in recordable form prepared bythe Agency orits Counsel to evidence such termination,if any.This Section 7(b) shallnotapply(andthe restrictions containedinSections2and3shallthereafterapply)tothe Developmentintheeventthat,subsequenttoany involuntary noncompliance asdescribedinthis Section7(b)butpriortotheexpirationofthe Compliance Period,(x)aRelatedPersontotheOwner obtainsanownershipinterestintheDevelopmentfortax purposes,or(y)theSecretaryoftheUnited StatesTreasury,oracourt of competentjurisdictiondeterminesthatsuchaneventthatattemptstoor doescauseatransfer of titleispart of anarrangementtoterminatethisAgreement. (c)Notwithstandingthe termination ofthe restrictions containedinSection2and Section 3,ifallowed,priortotheexpiration of theCompliancePeriod,theOwner(includinganysuccessoror #5550296 v4 42746-0001 10 assigneeoftheOwner)shallnot,priortotheendofthethree(3)yearperiodfollowingsuch termination:(i)evictor terminate thetenancyofanyexistingtenant(includinganytenant whose incomeistreatedascontinuingnottoexceedtheapplicableincomelimitasprovidedinSection3(a) above)ofanyLow-IncomeUnit,otherthanforgoodcause,or(ii)increasetheGrossRentwith respect tosuchLow-IncomeUnitsinexcessoftheamountsallowableasRent-RestrictedUnits. (d)Notwithstanding anyotherprovisionsofthisAgreement,thisentireAgreement,or any of theprovisionsorsectionshereof,maybeterminateduponagreementbytheAgencyandthe Owner. Section 8.Indemnification.[TO BE MODIFIED BY ORLANDO CABRERA1 TheOwnerherebycovenantsandagreestoindemnifyandholdtheAgency,andtheirrespective members,directors,officers,employees,attorneys,agentsand representatives (anyorallofthe foregoing collectively referredtoasthe "Indemnified Persons")harmlessfromandagainstanyandall losses,damages,judgments (including specifically punitive damage awards),arbitration awards, amountspaidinsettlements,costsand expenses and liabilities ofwhatsoevernatureorkind (including,butnotlimitedto,reasonable attorneys'fees,whetherornotsuitisbroughtandwhether incurredin connection with settlement negotiations,investigations of claims,attrial,on appeal,in bankruptcyorothercreditors'proceedings or otherwise,expertwitnessfeesand expenses andcourt costs)directlyorindirectlyresultingfrom,arising outoforin connection withanyactoromissionto actbythe Owner oranyofits partners,directors,officers,employees,attorneys or agents orother personsunderdirectcontracttotheOwneroractingonits behalf,resulting from,arisingout of or relatingtothe interpretation or enforcement ofany provision ofthis Agreement (including butnot limited toany action byanytenantto enforce the provisions hereof)orthe design,construction, installation,operation,use,occupancy,maintenance or ownership ofthe Development.Each indemnified Person will promptly,andafternoticeto such Indemnified Person(noticetothe Indemnified Persons being serviced with.respect tothe filing ofan illegal action,receipt ofany claimin writing orsimilar form of actual notice)ofany claim asto which he asserts-a rightto indemnification,notify the Owner of such claim.Each Indemnified Person will provide notice tothe Owner promptly,butinnoeventlaterthan thirty (30)days following its receipt ofa filing relating to alegalactionorsixty(60)daysfollowinghisreceiptofanysuchotherclaim. If anyclaimfor indemnification byoneormoreIndemnifiedPersonsarisesoutofaclaimfor monetary damagesbya person otherthantheIndemnifiedPersons,theOwnershallundertaketo conductany proceedings or negotiations in connection therewith whichare necessary to defend the Indemnified Persons andshalltakeallsuch steps or proceedings asthe Owner ingoodfaith deems necessarytosettleordefeatanysuch claims,andto employ counselto contest anysuch claims; provided,however,thattheOwnershall reasonably considertheadviceofthe Indemnified Persons astothe defense of such claims,andthe Indemnified Persons shall have the right to participate,at theirown expense,insuch defense,but control ofsuch litigation and settlement shallremainwith the Owner.The Indemnified Persons shall provide all reasonable cooperation in connection with anysuch defense bythe Owner.Counsel (except as provided above)and auditor fees,filingfeesand courtfeesofall proceedings,contests or lawsuits withrespecttoanysuchclaimorasserted liability shallbebornebytheOwner.IfanysuchclaimismadehereunderandtheOwnerdoesnotundertake thedefense thereof,the Indemnified Persons shallbe entitled to control such litigation and settlementandshallbeentitledtoindemnityforallcostsandexpensesincurredin connection therewith pursuant to the terms of thisSection7.Totheextentthatthe Owner undertakes the defenseofsuchclaim,theIndemnifiedPersonsshallbe entitled toindemnityhereunderonlytothe extentthatsuchdefenseis unsuccessful as determined bya final judgmentofacourtof competent jurisdiction,orbywritten acknowledgment ofthe parties.TheOwner reserves therightto appeal anyjudgmentrendered.Notwithstandingtheabove,theOwnershallnotprovideany indemnity to theIndemnifiedPersonsarisingoutoftheirownnegligenceor misconduct. #5550296 v4 42746-0001 11 Section 9.Reliance. Inperformingtheirdutiesandobligationshereunder,theAgencymayrelyuponstatements and certificates of the Owner and Low-Income Tenants believed in good faithtobe genuine and to havebeenexecutedbytheproperpersonorpersons,anduponauditsofthebooksandrecordsof theOwnerpertainingtooccupancy of theDevelopment.Nointerlineationsormanualalterationto thetypedversionofthisAgreementshallbepermittedunlessinitialedbyallpartiestothe Agreement.Inaddition,theAgencymayconsultwithcounsel,andtheopinionofsuchcounselshall befullandcompleteauthorizationandprotectionwithrespecttoanyactiontakenorsufferedbythe Agencyhereunderingoodfaithandinconformitywiththeopinion of suchcounsel.TheOwner shallreimbursetheAgencyforreasonableattorneys'feesandexpensesincurredinobtainingthe opinionofsuchcounsel.Inperformingitsdutiesandobligationshereunder,theOwnermayrely upon certificates of Low-Income Tenantsreasonablybelievedtobe genuine andtohavebeen executedbytheproperpersonorpersons,provided the Owner takes reasonable stepstoverify income. Section 10.Enforcement by the Agency and by Tenants. IftheOwnerdefaultsintheperformanceofitsobligationsunderthisAgreementorbreachesany covenant,agreement orwarrantyoftheOwnersetforthinthisAgreement,andifsuchdefaultor breachremainsuncuredforaperiod of sixty(60)days(orninety(90)daysforanydefaultnotcaused byaviolationofSection2or3hereof)afterwrittennoticethereofshallhavebeengivenbythe AgencytotheOwner(orforan extended period approved in writing byAgency'sGeneral Counsel (x) ifsuchdefaultor breach statedinsuchnoticecanbecorrected,but not withinsuch sixty (60)day(or ninety(90)day)period,and(y)iftheOwner commences suchcorrectionwithinsuchsixty(60)day(or ninety(90)day)period and thereafter diligently pursues the same to completion within such extended period),thenthe Agency mayterminateallrightsoftheOwnerunderthis Agreement andstepintothe shoesofOwner,withaconcomitanttransferofallofitsrights,titleandinterestintheDevelopment fromittothe Agency.TheAgency maytake whatever other action atlaworinequityor otherwise, whetherfor specific performance ofany covenant inthis Agreement orsuchotherremedyasmaybe deemedmosteffectualbytheAgencytoenforcetheobligationsoftheOwnerunderthisAgreement. Notwithstanding anyofthe foregoing,theAgencyshallhavetherighttoseekspecific performance ofanyofthe covenants,agreements and requirements ofthis Agreement concerning the construction andoperationofthe Development andanypersonwho satisfies theincome limitations applicabletoLow-IncomeandWorkforceTenantshereunder(whetherprospective,presentor formeroccupants of anyResidentialRentalUnitinanybuildingincludedintheDevelopment, includinganytenantwhoseincomeistreatedascontinuingnottoexceedtheapplicableincomelimit as provided in Section 3(a)above)shall separately havethe right toseek specific performance and otherwiseenforcethe requirements ofSection2or3withrespecttosuch building thatispartofthe Development.Adefaultthatdoesnotresultinthetransferofallright,titleandinterestinthe Development totheAgencyshallresultinan increase inthenumberofdaysofthe Compliance PeriodbythesamenumberofdaysduringwhichtheOwnerwasindefault,includingthenumber of daysduringwhichtheOwnerisprocedingtocurethedefault. TheOwnermustobtaintheAgency'sapprovalofthemanagementcompanyselectedto managetheDevelopment.TheAgencymustbeadvised of anychangeintheOwner'sselectionofa managementcompany,andthecompanymustbeapprovedbytheAgencypriortothefirmassuming responsibilityfortheDevelopment.Suchapprovalshallnotbeunreasonablywithheldordelayed. Agencymaymakeorcausetobemadereasonableentriesuponand inspections ofthe Propertyuponreasonablepriornotice.TheAgencywillindemnifyandholdtheDeveloperandits affiliatesharmlessfromanyandalldamagesrelatingtosuchinspection.However,nothing #5550296 v4 42746-0001 12 contained herein shall be construed tobeawaiver of the Agency's right to immunity as provided by Florida Statutes. Section 11.Recording and Filing;Covenants to Run with the Land. (a)Uponexecutionanddeliverybythepartieshereto,theOwnershallcausethis Agreement andall amendments andsupplementsheretotobe recorded andfiledintheofficial publicrecordsoftheCountyinsuchmannerandinsuchotherplacesastheAgencymayreasonably request andshallpayallfeesandchargesincurredin connection therewith. (b)This Agreement andthe covenants herein shallrun with thelandandshallbind,and thebenefitsshallinuretotheOwnerandtheAgencyandtheirrespectivesuccessorsandassigns during theterm of this Agreement. (e)Upon reasonable notice,if therehasbeennoevent of default underthis Agreement,the AgencyshallfurnishtotheOwnerastatementinwritingcertifyingthattheAgreementisnotin default. Section 12.Amendments. ThisAgreementconstitutestheentireagreementofthepartiesastotherecordedLandUse Restrictionsonthepropertyandsupersedesanyprior agreements,understandings,representationor negotiation,writtenororalconcerningLandUseRestrictions.ThisAgreementmaynotbemodified oramendedexceptinwriting,signedbybothpartieshereto.ThisAgreementshallbebindingupon andinureto the benefitoftheAgency,theOwnerandtotheirrespectiveheirs,successorsand assigns.Nothingcontainedhereinshallmodifythedutiesandobligationsofthepartiestothe DevelopmentAgreementconcerningthepropertyinquestion.The term "party"asusedinthis agreementshallincludetheCityCommissionandtheAgencyBoard. Section 13.Governing Law and Venue. This Agreement shallbegovernedbyand construed in accordance withthelaws of theState ofFloridaandvenueshallbeinacourtofcompetentjurisdictionlocatedinMiami-DadeCounty, Florida. Section 14.Notice. Anynoticerequiredtobegivenhereundershallbegivenbypersonaldelivery,byregistered orcertifiedU.S.Mailorbyexpediteddeliveryserviceattheaddressasspecifiedbeloworatsuch otheraddressesasmaybespecifiedbynoticetotheotherpartieshereto,andanysuchnoticeshallbe deemedreceivedonthedateofdelivery,ifbypersonaldeliveryorexpediteddeliveryservice,or upon actual receipt if sent by registered orcertifiedU.S.Mailtothe following addresses: If tothe Agency:Chairman of the SouthMiamiCommunityRedevelopmentAgency 6130 Sunset Drive,Miami FL 33143 Fax:305-668-7356 Email:mmenendez@southmiamifl.gov #5550296 v4 42746-0001 13 City Manager City of South Miami 6130 Sunset Drive Miami FL 33143 Fax:305-668-7356 IftotheOwner:Attn:Hi—put information inhere.Thanks. Fax: Phone:305- Email: Witha copy to:Attn: Telephone: Facsimile: Email: Delivery totheaddresssetforthhereinabove,oraschangedinaccordancewiththissection,thatis returnedbytheUnitedStatespostalserviceasundeliverable,unclaimedorasaddresseeunknown shallbeconsidereddelivered,asofthedateofsuchpostalservicednotice,forallpurposedrequired bythisAgreementprovideddeliveryisalsoattemptedbyfacsimiletransmissionandemailtothe addressprovidedhereinaboveortotheaddressaschangedinaccordancewiththissection.Either partymaychangeitsaddressbygivingnoticeasprovidedinthis section. Section 15.Severability. IfanyprovisionofthisAgreementshallbeheldbyanycourtofcompetentjurisdictiontobe invalid,illegalor unenforceable,suchprovisionshallbedeemedomittedfromthisAgreementandthe validity,legality and enforceability ofthe remaining,portions ofthis Agreement shallremaininfull forceand effect,butsuchholdingshallnotaffectthevalidity,legalityor enforceability ofsuchprovision under other,dissimilar facts or circumstances. Section 16.Multiple Counterparts. ThisAgreementmaybeexecutedinmultiplecounterparts,allofwhichshallconstituteone and the same instrument andeach of which shallbe deemed tobean original. Section 17.Binding Effect. ThisAgreementshallbebindinguponandinuretothebenefitofeachofthepartiesandtheir successorsandassigns,butthisprovisionshallnotbeconstruedtopermitassignmentbytheOwner without the written consent of the Agency.All obligations of Owner shallapplytoany person or entity thatreceivesanyright,titleorinterestinthe property whether by conveyance,assignment or otherwise andtheyshalleachhavethesameobligationstothe Agency anditssuccessorsandassigns as does the Owner. Section 18.Non-Waiver. Agency and Owner agree that nofailureto exercise andnodelayin exercising anyright, powerorprivilege under this Agreement onthepartofeitherpartyshalloperateasawaiverofany right,power,or privilege under this Agreement.No waiver of this Agreement,in whole orpart, includingtheprovisions of thisparagraph,maybeimpliedbyanyactoromissionandwillonlybe validandenforceableifinwritinganddulyexecutedbyeachofthepartiestothisagreement.Any waiverofanyterm,conditionorprovisionofthisAgreementwillnotconstituteawaiver of anyother #5550296 v4 42746-0001 14 term,conditionor provision hereof,norwilla waiver of anybreach of anyterm,conditionor provisionconstituteawaiverofanysubsequentorsucceedingbreach. Section 19.Rules of Interpretation. ThroughoutthisAgreementthemalepronounmaybesubstitutedforfemaleandneuterand thesingularwords substituted forpluralandpluralwordssubstitutedforsingularwherever applicable. Section 20.Cumulative Remedies. ThedutiesandobligationsimposedbythisAgreementandtherightsandremediesavailable hereunder,and,inparticularbutwithout limitation,thewarranties,guaranteesandobligations imposed upon Owner by this Agreement and the rights and remedies available tothe Agency hereunder,shallbein addition to,andshallnotbe construed inanywayasalimitationof,any rightsandremediesavailablebylaw,inequity,byspecial guarantee orbyotherprovisionsofthis Agreement.Inordertoentitleanypartytoexerciseanyremedyreservedtoitinthis Agreement,or existinginlaworinequity,itshallnotbe necessary togive notice,otherthansuchnoticeasmaybe herein expresslyrequired. Section 21.Waiver of Jury Trial. AgencyandOwner knowingly,irrevocably voluntarily and intentionally waiveanyright eithermayhavetoatrialbyjuryinStateor Federal Court proceedings inrespecttoany action, proceeding,lawsuitorcounterclaimarisingoutofthis Agreement. IN WITNESS WHEREOF,eachofthepartieshas executed this Agreement onthedates set forth below. AGENCY: SOUTH MIAMI COMMUNITY REDEVELOPMENT AGENCY By: Print Name:Title: Date: Notary section OWNER: By: Print Name:Title: #5550296 v4 42746-0001 15 Date: Notary section #5550296 v4 42746-0001 16