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HomeMy WebLinkAboutR-2021-191 Westrec Harbour Towne Marina Lease Assignment and Assumption to Harbour Towne SMI Westrec, LLCRESOLUTION NO.2021-191 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF DANIA BEACH, FLORIDA, RELATING TO THE ASSIGNMENT AND ASSUMPTION OF THE WESTREC LEASE AND CONSENT TO ASSUMPTION TO HARBOUR TOWNE SMI WESTREC, LLC, A DELAWARE LIMITED LIABILITY COMPANY, THAT IS A WHOLLY -OWNED SUBSIDIARY OF SUNTEX MARINA INVESTORS, LLC.; AUTHORIZING THE PROPER CITY OFFICIALS TO EXECUTE THE ASSIGNMENT AGREEMENT AND ESTOPPEL LETTER; PROVIDING FOR CONFLICTS; FURTHER, PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, on October 21, 2004, the City of Dania Beach, and Harbour Towne Associates, a California General Partnership, which converted to Harbour Towne Marina, LLC, a Delaware limited liability company ("Tenant"), entered into an Amended and Restated Lease Agreement ("Lease Agreement"), for the City's premises known as the Harbour Towne Marina (the "Property"); and WHEREAS, pursuant to paragraph 18 of the Lease Agreement, provided the Tenant is not in default under the Lease Agreement, the Tenant may sell, convey, transfer or assign its interest in the leasehold, after providing the City with 30-day prior written notice of the assignment request; and WHEREAS, paragraph 18 of the Lease Agreement provides that the City cannot unreasonably withhold consent to the assignment; and WHEREAS, Tenant provided the City with written notice of the assignment ("Assignment") request by letter dated November 12, 2021; and WHEREAS, the City has completed its due diligence and confirms that Tenant is not in default under the Lease Agreement; and WHEREAS, the proposed assignee ("Assignee") has provided to the City all relevant corporate information, a copy of the company's latest audit information, and corporate structure information which has been reviewed by the Finance Department; and WHEREAS, the Tenant is being absorbed into the new company, and the officers of Tenant shall become officers within the new company seeking the Assignment; and WHEREAS, the administration has no objection to the Assignment request for the Lease Agreement to be assigned to Harbour Towne SMI Westrec, LLC, a Delaware limited liability company, an indirectly wholly owned subsidiary of Suntex Marina Investors LLC.; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF DANIA BEACH, FLORIDA: Section 1. That the above "Whereas" clauses are ratified and confirmed as being true and correct, and they are made a part of and incorporated into this Resolution by this reference. Section 2. That the City Commission approves the request to assign the Amended and Restated Lease Agreement between the City and Harbour Towne Marina, LLC, a Delaware limited liability company, to Harbour Towne SMI Westrec, LLC, a Delaware limited liability company, an indirectly wholly owned subsidiary of Suntex Marina Investors LLC, and further authorizes the proper City officials to negotiate final terms and execute a Consent to the Assignment and Assumption of Lease between Tenant and Assignee (the "Agreement"), and to execute a Ground Lease Estoppel Letter; a copy of the documents are incorporated by reference into this Resolution as Composite Exhibit "A", provided, however that no Agreement will be effective unless and until City officials complete the execution of the Agreement. Section 3. That the City Manager and City Attorney are authorized to make minor revisions to the Agreement and Ground Lease Estoppel Letter as are deemed necessary and proper for the best interests of the City. Section 4. That all resolutions or parts of resolutions in conflict with this Resolution are repealed to the extent of such conflict. Section 5. That this Resolution shall be in force and take effect immediately upon its passage and adoption. PASSED AND ADOPTED on December 14, 2021. ATTEST: { Q ✓ L- THOMAS SCHNEIDER, CMC TAMARA JAMES CITY CLERK MAYOR APPROVED AS TO F RM)AND CORRECTNESS: THOMAS J. A B O CITY ATT RN Y 2 RESOLUTION #2021-191 This instrument was prepared by and after record return to: Jon Chassen, Esq. Bilzin Sumberg Baena Price & Axelrod LLP 1450 Brickell Avenue Suite 2300 Miami, FL 33131 Parcel Identification Numbers: 504235-16-0010 504235-16-0020 [Space Above This Line For Recording Data] ASSIGNMENT AND ASSUMPTION OF LEASE and CONSENT [Harbour Towne Marina] THIS ASSIGNMENT AND ASSUMPTION OF LEASE (this "Assignment"), is made as of the day of , 202 ("Effective Date"), by and between Harbour Towne Marina, LLC, a Delaware limited liability company ("Assignor"), whose address is c/o Westrec Marina Management, Inc., 16633 Ventura Blvd., Suite 600, Encino, California 91436; and Harbour Towne SMI Westrec, LLC, a Delaware limited liability company ("Assignee"), a subsidiary of Suntex Marina Investors LLC, a Delaware limited liability company, whose address is 17330 Preston Road, Suite 220A, Dallas, Texas 75252. It is joined by the City of Dania Beach, a Florida municipal corporation, for the purposes herein expressed. A. Assignor is the lessee under that certain Amended and Restated Lease Agreement, dated October 21, 2004, by and between Assignor, as successor by conversion from Harbour Towne Associates, a California General Partnership ("Original Tenant"), as lessee and the City of Dania Beach, a Florida municipal corporation ("Lessor") as lessor (as modified and renewed, the "Lease"), which Lease is the subject of that certain Memorandum of Amended and Restated Lease Agreement by and between the City of Dania Beach, a Florida municipal corporation and Harbour Towne Associates, a California general partnership dated October 21, 2004 and recorded October 21, 2004 in Official Records Book 38401, Page 780, all of the Public Records of Broward County, Florida (as amended, the "Memorandum of Lease"). B. Assignor desires to assign, transfer and convey to Assignee all of Assignor's right, title and interest in and to the Lease, and Assignee desires to assume all of the duties and obligations of Assignor in and to the Lease, subject to the terms and conditions set forth in this Assignment. C. Lessor joins in this Assignment to signify Lessor's consent to same. MIAMI 8958131.4 100255/300762 NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Assignor and Assignee hereby agree as follows: 1. The parties agree that the foregoing Recitals are true and correct and incorporated herein by this reference. 2. Assignor hereby assigns, transfers and conveys to Assignee all of Assignor's rights, title and interest in and to the Lease, together with all rights, privileges, and benefits under the Lease after the Effective Date. 3. Assignee hereby assumes all of the rights, title, duties and obligations of Assignor in and to the Lease accruing from and after the date of this Assignment. 4. This Assignment shall be governed by, interpreted under and construed in accordance with the laws of the State of Florida. Venue for any lawsuit or action related to this Assignment, including a dispute over any deposits, shall be in Broward County, Florida. 5. The provisions of this Assignment shall be binding upon and inure to the benefit of Assignor and Assignee and their respective successors and assigns. 6. This Assignment may be executed in counterparts, all of which shall constitute the same Assignment, notwithstanding that all parties to this Assignment are not signatories to the same or original counterpart. [SIGNATURE PAGES FOLLOW] 2 MIAMI 8958131.4 100255/300762 Assignor and Assignee have executed this Assignment as of the Effective Date. ASSIGNOR: Signed, sealed and delivered Harbour Towne Marina, LLC, in the presence of: a Delaware limited liability company Print Name: Print Name: STATE OF SS: COUNTY OF By: Harbour Towne Holdings, LLC, a Delaware limited liability company, its Manager By: Name: Jeffrey K. Ellis Title: Vice President The foregoing instrument was acknowledged before me by means of ( ) physical presence or ( ) online notarization this day of , 202, by Jeffrey K. Ellis, as Vice President of Harbour Towne Holdings, LLC, in its capacity as Manager of Harbour Towne Marina, LLC. He ( ) is personally known to me or ( ) has produced a driver's license as identification. Signature of Notary Public State of [ Print, Type or Stamp Commissioned Name of Notary Public My Commission Expires: Signature Page to Assignment and Assumption of Lease and Consent — Harbour Towne Marina Signed, sealed and delivered in the presence of: Print Name: Print Name: ASSIGNEE: Harbour Towne SMI Westrec, LLC, a Delaware limited liability company By:_ Name: Title: STATE OF ) SS: COUNTY OF ) The foregoing instrument was acknowledged before me by means of ( ) physical presence or ( ) online notarization this day of , 202_, by , as of Harbour Towne SMI Westrec, LLC. He/She ( ) is personally known to me or ( ) has produced a driver's license as identification. Signature of Notary Public State of [ Print, Type or Stamp Commissioned Name of Notary Public My Commission Expires: Signature Page to Assignment and Assumption of Lease and Consent — Harbour Towne Marina CONSENT OF LESSOR The foregoing Assignment and Assumption of Lease is approved by the City of Dania Beach this day of , 202. Such approval is conditioned on Assignee owning both the assigned leasehold interest and the fee simple interest in the portion of Harbour Towne Marina located adjacent to the Premises which are the subject of the Lease at and following the Assignment and Assumption of Lease; provided, that Assignee shall have the right to transfer or encumber the adjacent fee simple interest in a substantially similar manner as permitted with respect to the Premises as expressly set forth in the Lease. Signed, sealed and delivered in the presence of: Print Name: Print Name: STATE OF SS: COUNTY OF LESSOR: City of Dania Beach, a Florida municipal corporation By: Name: Title: The foregoing instrument was acknowledged before me by means of or ( ) online notarization this day of , 202_, by He/She ( ) is personally known to me or ( ) has produced a license as identification. ) physical presence Signature of Notary Public State of [ 1 driver's Print, Type or Stamp Commissioned Name of Notary Public My Commission Expires: Signature Page to Assignment and Assumption of Lease and Consent — Harbour Towne Marina GROUND LEASE ESTOPPEL CITY OF DANIA BEACH December , 2021 Harbour Towne Marina, LLC c/o Westrec Marina Management, Inc. 16633 Ventura Blvd., Suite 600 Encino, CA 91436 Re: Amended and Restated Lease Agreement, dated October 21, 2004, between the City of Dania Beach, a Florida municipal corporation ("Lessor") and Harbour Towne Associates, a California General Partnership, which converted to Harbour Towne Marina, LLC, a Delaware limited liability company ("Lessee"), as the same may be amended and assigned from time to time (collectively, the "Lease"), of premises known as the Harbour Towne Marina (the "Property"). Ladies and Gentlemen: The undersigned Lessor understands and acknowledges that Lessee currently intends to assign its interest in the Lease to Harbour Towne SMI Westrec, LLC, a Delaware limited liability company ("Buyer"), an indirectly wholly owned subsidiary of Suntex Marina Investors LLC, and, in contemplation of such assignment, Buyer is relying upon Lessor's certification herein. Lessor hereby certifies that: 1. The Lease. Lessor is the owner of the fee simple estate in the Property and is the lessor (or landlord) under the Lease. The Lease represents the entire agreement between Lessor and Lessee with respect to the leasing and occupancy of the Property; except as set forth on Exhibit A attached hereto (the "Exceptions List") if any, there are no other promises, agreements, understandings, or commitments of any kind, oral or written, between Lessor and Lessee with respect thereto. [X] There are no amendments to the Lease; OR [ ] The Lease was amended on [and 2. Lease Status. The Lease has not been cancelled, terminated, amended, modified, assigned, or extended (except as set forth above), and is in full force and effect and enforceable against Lessor in accordance with its terms. As of the date hereof, except as set forth on the Exceptions List: (i) all conditions and obligations under the Lease to be satisfied or performed by Lessee and Lessor have been satisfied or performed by the respective party; (ii) there are no uncured breaches or defaults on the part of Lessor or Lessee, whether monetary or otherwise, under the Lease; (iii) to Lessee's knowledge, no condition exists which, with the passage of time or giving notice or both, would constitute a default under MIAMI 8993898.2 100255/300762 the Lease; and (iv) Lessor has not sent to or received from Lessee any notice of default or breach under the Lease. 3. Lease Term; Extension Options. The term of the Lease expires on August 31, 2040, unless sooner terminated in accordance with the terms of the Lease. [X] There are no remaining options to extend or renew the Lease term; OR [ ] Tenant has the option to extend or renew the Lease term for () additional period(s) of (_) years (each). 4. Rent [and Percentage Rent]. The fixed, minimum or basic rent payable under the Lease is $16,668.09 per month and has been paid through December 31, 2021 No fixed, minimum or basic rent ("Base Rent") has been paid in advance for any period after said date, except as follows: Percentage rent [ ] is not / [ X] is payable under the Lease, and has been paid through October 31, 2021. Lessee has paid all other charges due under the Lease. No Base Rent under the Lease has been paid by Lessee more than one month in advance. 5. Security Deposit. Lessor [ ] is / [ X] is not holding a security deposit under the Lease [and the security deposit, if any, is: $N/A ] 6. Consent. Lessor hereby consents to the assignment of the Lease from Lessee to Buyer and Buyer's assumption of the Lease. [Signature page follows] MIAMI 8993898.2 100255/300762 LESSOR: CITY OF DANIA BEACH, a Florida municipal corporation By: _ Name: Title: MIAMI 8993898.2 100255/300762 EXHIBIT A EXCEPTIONS LIST