03/30/1992 - Special
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.Ci+y COmMi5Si~n
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CITY COMMISSION SPECIAL MEETING
t,Iarch 30, 1992
The City Commission of the City of Clearwater met at City Hall with the following
members present.:
R ita Garvey
Sue Berfield
Lee Rcgulski
William Nunamaker
Richard Fitzgerald
Also present were:
Michael J. Wright
M, A. Galbraith, Jr.
Cynthia E. Goudeau.
i'layor/Comllli ss ioner .
Vi ce-~Iayor/Corl1lni 55 ioner
Commissioner
Commissioner
Counniss ioner
City Manager'
City ^ttorney
City Clerk.
The t.layor called the meeting to Ol~der at 9:01 a.m. for the purpose of
discussing the amendment to the lease agreement with the Chi Chi Rodriguez Youth
Foundation,(Foundation).
The 1985 lease agreement between the City and the Foundation provides the
City with the right of first refusal to assume up to $2 million in outstanding
, debt which the Foundation Mas obtained to construct the golf course located on
McMullen-Booth Road. I .
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With the balloon payment on the loan corning due in March, the Foundation
contacted the City and requested the guarantee b~ strengthened to incl~de a firm
guarantee in 1 ieu of a right of first refusa 1 as well as an increase in the
maximum guarantee to $2.5 million.
The City1s guarantee will apparently allow the Foundation to refinance at
more favorable interest rates and the additjonal $500,000 to be borrowed will be
used to purchase additional machinery and carts and to complete construction of
golf course facilities.
Upon investigating the request, City staff, in conjunction with the City
bond counsel, determined that the requested guarantee modifies the arrangements
enough to produce new City debt, actually contingent debt, which requires
comp 1 i ance \vith State law, and City Charter provi s ions. Further, such a guarantee
can not be made from ad valorem tax revenues and can not exceed $1 million unless
it is fir~t approved by the voters at referendum.
'I With these restrictions in mind, City bond counsel has drafted the lease
amendment and ordinance which provide for a $1 million guarantee and a right of
first refusal on the remaining. debt, not to exceed an additional $1.5 million.
An ordinance is required for all City debt under Section 41.11(a) of .the City,
Code of Ordinances.
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minccsp3.92
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3/30/92
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The golf course is currently opercllional and rcpol'ling operuling profits.
In the event the Foundati"ll defaulls on their debt, it is likely the City would
exercise tile existing right of first refusal (lnu clSSllIllC operation of lhe course,
City staff IhlS t'evicwed the Foundation' 5 request and the lease amendment
ilS draf ted by bond COll/lSC 1. The Foundu l ion has (\~,Jreed to re imburse the C i t.y for
bond counsel fees and to payoff the remaining balance of the $27,264 on u 1989
City lOiln used for trans'portatlon impucl fees out of the refinancing proceeds.
This item hilS been disC\lssed several times by the City Commission with
concerns regarding the term of the loan and the assignabi1 ity of the guarantee
being mentioned. These concerns have been addrqssed and Exhibit A to the
Ol'dinance, which, is the ilmendcd lease agreement, is now ready for approval.
In response to a question, the City Attorncy indicated he was comfortable
with the changes to the documents.
A question was raised regarding whether or not the provision which had
been in the documents ~aying that the loan could be increased and the guarantee
with itj was still a part of the document. The City Attorney indicated it had
been deleted and there is no longer any provision for future advancements on the.
loan. Essent ia lly the documents u 110\." the, Foundat ion to borrow $2.5 million 'and
no more. He indicated any changes \'/Ould ..require City Commission approval.
A question was raised regarding what related improvements would be included
in the loan as referenced on page 5. Tim Coop, representing HeNS, indicated this
;s a proposed middle school and the new entrance to the course.
Concerns were raised that due to cuts in the school system, the middle
school on the golf course may be affected. It was indicated it should not be as
this is a federally funded program.
In response to questions, the City Manager indicated that essentially the
documents 1 irnit the loan amount to $2.5 million with the Cityl s guarantee being
limited to $1 million.
A question was raised regarding the rate on the 10un nnd it was indicated
that it was 8.75%.
A concern was raised regarding the assignability of the guarantee and the.
City Manager ihdicated the clause which gives the City some control over this,
is found on page 6 of the guarantee documen t"
, A question was raised regarding the environmental indemnification and it.
was-) indicated that tbis was prepared as the bank did not wish to assuiil&) any
liabilities for any envifonmental problems that may exist on the property.
Commissioner Regulski moved to appro'Ve the anr0ndments to the lease
agr~ement vlith the Chi Chi Rodriguez Youth Foundation. The motion was duly
. seconded and carried unanimously,
m;nccsp3,92
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3/30/92
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The City Attorney presented Ordinance #5178-92 for second reading and read
it by tit 1 e on 1 y, He i nd i ca ted tlla t lhe prev iOlls 11I0 Lion approves the amended
Exhibit A tathe ard~nancc. Commissioner Rcguhki moved to adopt Ordinance
#5178-92 on second reading, Tho motion WilS duly seconded.and upon roll cal~1 the~,
v9te was: .
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"Ayeslt: Hegulski,. Nunamaker, Fitzgerald, Ucrficld .and GarveY.
. If Nays II: . None.
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.. ., The mecti.ng adjourned at 9: 16 a "rn, .
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AGENDA
SPECIAL MEETING
AMENDMENT ~ro 'LEASE AGREEMENT WITH
CHT CHI. RODRIGUEZYOU'l1n FOUND1\.TION
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March, 30, 1992, 9:00 a.m.
Commission Chambers
City Hall
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I, Call to Order.
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II. Amendment to Chi Chi Rodriguez Youth Foundation
Second Re.ading Ord, #5178-92. ..';'
III. Adjourn. . .
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. Agreement
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CJearwater' City Cmnmi'ssiou
Agenda Cover ~Jcl1HmlJJdum
Item /I
l-lollt;n(J Datil: ]/30/9'!.
Subject: Amendment to Lease Agreement with Chi chi Rodriguez Youth
Foundation
Recommendation/Motion: ,\ppJ"tJVL~ tlw ,\ml'l1dllWIlU; 1.0 thl' Ll~;llW .\grL'el1\l'llt wLth
Ch i. Ch j Jin d d q \Ie:: Y 011 t h FDll11d,1 t inn :lIHI ..dnp t (] rd i !):lIll'l' '), 7 x-ln 1\ l-i III1W nd cd on
Sl'l~ ()lHI rt'lI d i l1g .
X nnd thnt the appropriate officials be nuthorlz~ to execute SDmQ.
BACKGROUND: The 1985 lease agreement between the City and the Chi chi
Rodriguez Youth Foundation provides the City with the right of first refusal
to assume up to $2,000,000 in outstanding debt which the foundation has
obtained to construct the golf course located on McMullen Booth Road. With
the balloon payment on the loan coming due in March, the foundation contacted
the City and requested that the city's guarantee be strengthened to include
a firm guarantee in lieu of a right of first refusal, as well as an increase
in the maximum guarantee to $2.5 million. The city's guarantee will
apparently allow the foundation to refinance at more favorable interest
rates, and the additional $500,000 to be borrowed will be used to purchase
additional machinery, carts, and to complete construction of golf course
facilities.
Upon investigating this request, city staff in conjunction with city bond
counsel determined that the requested guarantee modifies the arrangement
enough to produce new city debt (actually contingent debt) which requires
compliance with state law and city charter provisions. Further, such a
guarantee cannot be made from ad valorem tax revenues, and cannot exceed $1.0
million unless it is first approved by the voters at referendum.
With these restrictions in mind, city bond counsel has
accompanying lease amendment and ordinance, which provides for
guarantee and a right of first refusal on the remaining debt
an additional $1.5 million). An ordinance is required for
under Section 41.11(a) of the Clearwater Code of Ordinances.
drafted the.
a $1.0 'million
(not to exceed
all city debt
(continued on next page)
Revi ctoICd by:
Legal
Budget
purchasing
Risk Hgmt,
CIS
ACIl,
Other
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ec:-iss;on Action:
o Approved
o Approved w/conditions
o Denied
o Continued to:
originating Dept:
Admi nlst 1-.1 t i Oil
Costs:
Current Fiscal Yr.
User Dept:
-,\,
FLnling Source:
o Cl.lpi tal I~.
o Opcrllting
o Other
I Att~ts:
On!. 5178-92
^m~ndeJ ^~rcQment
gnv Ll~OnnlC'nta I. IndlHn-
n I fLen t10n Agn~('rnent
t;un rantet!
Advertised:
Dote:
Pnpcr:
tiJ Hot Required
Afh.-c.ted Purtics
o Hot I f i L-d
li1 Hot Requl red
Awroprilltion Code:
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The golf course is currently operational and reporting operating.profits. In
the event of foundation default on their debt, it is likely the.city would
exercise our existing right of first refusal and assume operation of the 'J
course ourselves. The language modification to guarantee the first million
may therefore only formalize a coromi ttment which already exists for all.
intents and purposes.
city staff has reviewed the foundation 'request and the lease amendment as
drafted by our bond counsel. The foundation has agreed to reimburse the city
for bond counsel fees and to payoff the remaining balance of $27,264 on a
1989 City loan used for transportation impact fees, out of the refinancing
proceeds. City staff endorses the request of the foundation and we recommend
your approval of the lease amendment as proposed.
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MOTION TO AMEND ORDINANCE 5178-92
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.pelete the ~roposed EXhib'itIA, and substitutT the. revised Exhibit
A. .1
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. NO'l'E: The revised Exhibit A incorporates
numerous changes. to the original exhibit.. The
changes are so numerous that formal motions to
amend would be too unwieldy. The changes will
be explained in detail during your meeting.
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M. A. Galbraith, Jr.
City Attorney
March 27, 1992
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OHIHIIAIICE 110. 51'lIj-~)2
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All ORlnllAUCI~ OF 'rilE Cl'l'Y OF CLgA1U1Nl'lm,"'
F'J,OHl DA Af1E1HJJtlG All AGHlmf.n:tt'j' \11.'1'11 CHI CIII
IWDH.I GUEZ YOU'l'lI FQUnDN1'IOIl, rNe. HNrr FYING
SAID AGHEEHEIl'l' AS ANEHtmn, 1\tl'l'IIOIUZING rj'HE
CI'l'Y '1'0 IUCUH COU'l'lllGElVJ' I.IABIIJl'I'Ilm 01;' AN
l~r'1Ol111'J' UO'!' '1'0 EXCI':ED $1, (100,000; l\PPHOVIUG
EXECU'I'IOI.l OF 'ritE ANElml.1EII'l' Arm PHOVIDING AN
EITEC'I'lVE DNl'E.
\'1lJERE1\S, the ci ty of Cl earwa ter , Flori da (the "ei ty ") has
entered into a.n Agreement with the Chi Chi Rodriguez Youth
Foulldation, Inc. (the "Founda.tion"), dated 1I0vernber 12, 1985, as
amended on f.1arch 5, 1987 (collectively, the "Agreement"), pursuant
to \'I11ich the ci ty leased certu i 11 undeveloped land to the Foundation
und the Foundation constructed thereon a public golf course and
driving range and related facili.ties; and
\'lIIEREAS, in order t~ fulfill its obligations under the Agree-
Inent the Foundation incurred indebtedness in an amount not to
exceed $2,000,000; and
\'lIIEHEJ\S, the cIty, by the 1987 Amendment to the Agreement,
consented to such indebtedness by the Founda ti 011 and agreed to
accept a right of first refusal to pay SUCll indebtedness and take
over the facilities ill the event of a clefault by the Foundation;
and
\'lJIEREAS, the Founc1a tiol1 has requested the ci ty to approve an
increase in the Founda tion I s j nclcbtedncss to an amount not to
exceed $2,500,000 and to guaranty not to exceed $1,00.0,000 of such
indebtedness jn the event of a default by the Foundation; and
\mElml~S, the ci ty has dcterm1.ned t:lmt the city I s consent to
th i s request \oJoul d serve a pat"amount publ1.c purpose by enabl ing the
Foundation to complete the Project as'described in the Agreement
and to maximize the cash flo\'15 from the Project by lowering the
financing costs, making available more revenues for tIle operation,
maintenance and improvements to the Project ilnd the Glen Oaks Golf
Center,
nOH, 'I'flF:lH~rOHE, BE 1'1' OHDAIllED DY 'l'IlE CI'l'Y OF CLEARHNrER,
fLOIU Dl\ I as [01] O\'IS :
SEC'I'IOn 1.. 'rho Socond Amendmcl')\: to 11.9 rool11cnt with Chi. ch i
Hoc1r Jguez Foundn t ion, T nc. j s hereby approved in subs tant in 11 y the
form attilched'\hel.cto CIS Exhibtt fl..
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SEC'1'lOlJ 2. '1'he r'1ilyor or Vi.co Hayor and the Cler}c or Deputy
C lor}: a re hereby author i zed a ncl directed to execu te .,I.ncl del i ver the
Amendment in substantially the form attached hereto as E}{hibit A
\,' i th such changes I insert ionn and omissions as nlilY be approved by
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the 'f.1a~'or or Vi.ce Hayor "lll1 the Cl.er}c Ol~ Deputy Cler.k, the execu-
t.t on t:hcl~oo f be i ng cOl1clus i va aV.i donce o[ sllch approvnl.
SEc'rlon 3. '1'ho Nayar or V lee Mayol' and the Clerk or Deputy
Cler~~ or any. other appropriate offi.ccrs of the city are hereby
authorized and directed to execute aily and all certifications or
other instruments or documents required by this ordinance, . the
Amendment or any other document required to carry 'out the purposes
of this Ordinance. 11'ho Agreement and all action taken to date by
the officers of the city in furtherance of the Agreement and the
Amendment is hereby approved, confirmed and ratified.
SEC'l'IOH 4. '1'h is Ordinance sha 11 take effect immedia tely upon
its enactment.
PASSED AND I\PPIWVED by tho ci.ty Commission of the city of
Clean...ater, Florida at a meeting held on the. day o~
, 1992.
Cl'l'Y COHHISSION OF 'l'IlE CI'l''l OF
CLEARWATER, FLORIDA
( SEAL)
By:
A T'l' EST:
PASS ED on FIRS'l' READING
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FCJruary 6, 1992
PASSED on SECOND AND FINAL
READIlIG AIID ADOPTED
Mayor-commissioner
Attest:
city C]erk
Approved an to form,& correctnes~:
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L.j
City Attorney
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FIFTH AMENDMENT TO AGREEMENT WITH
CH r CH r RODR I GUEZ YOUTlI FOUNDATION, I NC.
TUIS FIFTH AMENOHENT TO AGREEMENT (the IlAmendment") is made and entered
into on this
day of
, 1992, by and between the
;.
City of Clearwater, Florida, a municipal corporation, hereafter referred to as
"City," and the Chi Chi Rodriguez Youth Foundation, Inc., a Florida nonprofit
corporation, whose address is Post Office Box 1521, Largo, Florida, hereafter
referred to as "Foundationtll amending the Agreement between the parties dated
.November 12, 1985, as amended on March 5, 1987 (the IIAgreementll).
In consideration of the premises and of the faithful performance by each
of the parties of the covenants and agreements between each other made, it is
mutua lly agreed that the Agreement is hereby amended as follows:
1. Paragraph 11 is amended by deleting the language added in that
certain Amendment to Agreement (the "First Amendment") dated Harch 5, 1987, and
replacing it with the underlined language as set forth below:
11. The Foundation shall not assign this lease or any of its
rights under this agreement, sublease any part of the leased
premises except as authorized above, or mortgage, transfer,
hypothecate, pledge or dispose of the leased property in any form or
'I manner whatsoever. This paragraph shall not be deemed to prohibit
a construction' loan or loans to the Foundation secured by the
leasehold interest of the Foundation arising under this agreement.
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as amended, in a principal amount not to exceed" $2,500,000,00
$2,000,000.00 in the aggregate, plus interest, costs fees, and any
sums advanced to protect the co 11 atera 1, -te---Bc matched ltJith
-additiona-~ fund~ of the foundation in In amount not less than
$200,000 in cash, together with J minimum of an additional
$500,000.00 in pledges which arc unrestricted or rcstr.icted to
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EXH I 13 1'1' A
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construction of the-itolf eOllPse or olubheuse, or both (here;n, t4te-
Pledges), Wll;ch loan proceeds and matching funds are to be used for
improvements and equipment related to development. upkeep and
maintenance of the property -tHe-design ..lAd construction of a golf
cour:;c and clubhouse or pr-eperty, and repayment to the City of
527,264 previously advanced to the Foundation. nor shall this
paragraph be deemed to prohibit an assignment py a secured creditor
of the Foundation of its interests in the leasehold.
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2. Paragraph 35 is amended by deleting the language contained in
Paragraph 2 of the First Amendment (adding Paragraph 35) and replacing it with
the underlined language as set forth below:
35, In the event of a default by the Foundation upon any
loan secured by the leasehold interest of the Foundation arising
under this Agreement, such default shall also constitute a default
under this agreement.
(a) In the event of such a default, the City shall have the
right.to reoccupy the land and improvements thereto immediately upon
not'; ce to the' Foundat ion, and without ""the necess ity of formal
eviction proceedings. The City hereby Quarantees that in ~ such
event the City shall pay the secured creditor of the Foundation or
the successors or assigns of the secured creditor (herein, the
uLender") the outstanding balance of the loan, in a pr'incipal amount
not to exceed $1,000.000 $2,000,000 in the aggregate, includinq
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interest, costs, fees, and any sums advanced to protect the
-~\ co l1atera 1 (unless the City ~Qrees to ~av a Qreater amount). The
. I City covenants and agrees to"aooroor i ate in its annual budaet, bv
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amendment. if required, and to pay to the Lender when due under this
Agreement as promptly as money becomes available. amounts of no-ad
valorem revenues of the City or othei~ leQallv available funds
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sufficient to satisfy the loan repayment as provided under this
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AQreement, Such covenant and aareernent on the part of the City to
budQet and appropriate such amounts of non-ad valorem revenues or
other leQally available funds shall be cumulative. and shall
continue until such non-ad valorem revenues or other 1eaal1v
available funds in amounts sufficient to make all reQuired.loan
repayments. shall h~ve been budaeted, appropriated and actually paid
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to the Lender. As to any remaininQ outstandinq balance of the loan
in excess of $1,000.000, but not to exceed $2.500,000, plus
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interest, costs, fees and any sums advanced to protect collateral.
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the City shall have the option of pavina the Lender the full amount
owned, in exchanae for which the Lender shall release its leasehold
mortqaael;and the security interest in the related inventory.
furnishinas. fixtures and equipment related to the project. In the.
event the City does not exercise said option within thirty (30) days
of written n6tice from the Lender, the Lender shall have the rights
described in Subparaaraph (b) below. I or exercise the altcrriative
descFibcd lA SubparJgraph (b); providcd, however, that the procecds
of any such lOJA or loans, together ",dth matching funds of the
Foundation iA .:In amount not less than $200,000.00 cash plus all
amount:; c()l-lccted upG-H--t.ne P1edgcs as dcscribed in Paragraph 11
above, in an-iHOOl:.IRt not less than $500 I 000.00 I shJ 11 h.:lvc been
expended for or irrcvG€-a-lrly committed fo~ewt; of the cost-s-&f.
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4e.s-+gn and construction of a ge.+f-eeurse and clubhouse on t~e real
(,
~el't.Y leascd to the Foundation under this agreement, or arc
availablc as uneneumbered cash for paymeAt to the lcnderl and
provi ded I furthcr, t.hat the COA$tr-Uct ion of thc go 1f course and
c lubhousc sha 11 ha'/c been camp leted by thc Foundat ion or BY the
heflecr prior to such paymcnt by the City,
Any -s-ttffi payment by the City sha 11 be from funds ava i1 ab le to the
City from any source or financing method not requiring the exercise
of the ad valorem taxing powers of the City. This paragraph shall
not be deemed a pledge of all 1eaallv available non-ad valorem
revenues of the City and no secured creditor or other person may
compel the City to exercise the ad val?rem taxing power of the City
pursuant to this paragraph. NotwithstandinQ any provision of this
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aQreement to the contrary. this agreement and the obliQations of the
City hereunder shall not be construed as a limitation on the ability
of the City to pledqe or covenant to pledQe said revenues for other
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legally permissible purposes. Notwithstandina any provisions hereof
to the contrary. the City shall not be obliqated to exerclse its ad
valorem taxina power to maintain or continue any of the activities
of the City includina those activities which Qenerate user service
charaes, reQulatory fees or any non-ad valorem revenues. This
paragraph shall be. deemed to authorize a lien as described herein
upon the leasehold interest of the Foundation arising under this
agreement, toqether with inventory. furnishinqs, fixtures, and
equ i pment re 1 ated' to the project I but not upon the real property
leased to the Foundation by this agreement.
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(b) If the City does not exercise its option to nay the
Lender in full within thirty (3D) days of notice. as set forth in
subparaQraph (a) above, the Lender shall be permitted by the City to
III the alternative, the Git)' llIay clec-t to allm~ the bender tO,assume
the rights and obligations of the Foundation under this agreement,
and to construct and operate the golf course, clubhouse, and related~
improvements for the unexpired term of this agreement. In that
event, the Lender:
1. Shall comply with that part of Par-agraph 3 of this-
agreement rcquiring the devclopmcnt and construction of an cighteen
hole PGA. regl.'lJtiol1 size golf Go~rsc on the wc~t side of MEMulleA
Booth Road, and thc devclopment and constr-tlctio" of J family golf
center on the cast side of McMullen Booth Road, but not necessJrily
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a uPGA tour" family golf center; otherwise, the reRlaining pr-ovisions
of P3rag~Jph 3 shall be inapplicable to the Lender;
i #, Shall not be obligated to comply with the terms of
Paragraphs 9, ~ 20, ~ 26, 28, 30 or 34 of this agreement;
ii.:i-4. Shall not be required to operate the golf course or
clubhouse as an educational and rehabilitative facility as provided
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10 Paragraphs 3 and 14 of this agreement;
iii w. Shall not be subject to the financial records review
provisions of Paragraph 27 of this agreement; and
, iY~. Shall ~ be entitled to the rental or other revenues
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from the family golf course until the loan has been repaid.
be payab'lc direGtly to the City.
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(c) In the event that the Lender should obtain title to the
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leasehold interest of the Foundation arising under this agreement, either
by deed in lieu of foreclosure or as the successful bidder at a clerk's
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sale pursuant to a judgment of foreclosure, or any other way permitted by
law (includinq. but not limited to. an assiqnment of lease by the
Foundation to tHe lender), then the City shall have the right of first
refusal to purchase the lender1s title to said leasehold interest upon the
terms and condit ions contained in any bonafide contract to sell said
leasehold interest to a third party. In such event, the City shall have
thirty (30) days after receipt of notice of the proposed sale within which
to notify the lender of its desire to purchase the leasehold interest on
the same terms and condition~ as the proposed sale, In the event that the
City does not notify the lender within said thirty-day period, the lender
m~y proceed to consummate the proposed sale, At any time during which the
lender should own said leasehold interestj except during the
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aforementioned thirty-day notice periodj. the City may at its option
purchase the lender' s leasehold interest by paying to the Lender all
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unpaid principal plus accrued interest, cos~s, fees and sums expended for
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the preservation and protection of the collateral. In the event that the
lender or any third party purchaser at judicial sale should become the.
owner of said leasehold interest, then the provisions of Subparagraph (b)
above shall apply to said owner or its successors and assigns.
(d) In the event of a default by the lender which,shall remain
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uncured after thirty (30) days \~ritten notice of such default fr'om the
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City to the Lender, the leasehold interest shall termlnate and title to
the property shall be free and clear of any and all claims or liens by the
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lender; provided, however. that the period within which the Lender is
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., required to cure a default shall be extended in the event that the default
cannot be cured within thirty (30) days and the Lender is active1v and
reasonably makinQ efforts to cure the default.
3. A 11 of the terms and condit ions of the Agreement which are not
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express 1y amended herein shall continue in fu 11 force and effect, and are
incorporated herein by reference as if set forth in full.
4. The Foundation hereby agrees to pay all costs, fees and expenses of
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the City and its counsel incurred in connection with the preparation and adoption
of this Amendment.
5. The City and the Foundation agree that the requirements of Paragraph
12 of the Agreement have been fully satisfied.
6, In the event that the City furnishes the Foundation written notice
of default, the City simultaneously shall provide a copy of said notice to the
Lender.
7. In the event that the City terminates the Lease for the reasons
specified in Paragraph 32 of the Agreement, th,e City shall pay ~o the Lender all
unpaid principal, accrued interest, costs, fees, and additional sums expended for
the preservation and protection of the Lender's collateral.
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IN WITNESS WHEREOF, the undersigned parties have set their hands and seals
the day land year first above written.
Countersigned:
CITY OF CLEARWATER, FLORIDA
Rita Garvey
Mayor-Co~nissioner
By:
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Approved as to form and correctness:
Michael J. Wright
City Man(f,ger
Attest:
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M. A. Galbraith, Jr.
City Attorney
Cynthia E. Goudeau.
City Clerk
ATTEST:
CHI CHI RODRIGUEZ YOUTH
FOUNDATION, INC.
By:
President
Secretary
Witnesses:
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By:
Vice President
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ENXJIWt:iMt:N.l6'<JNJ)I1>~NII:I~^TI~!N ,M) H I'J~Mrm'
TllIsrr>:\'lllONMFNlAI. INlll.~INlrIC/\T10N t\(;ltl:I.MENT !lhl~ "Altrl!el1wm"l
Is mi\dl~ umll!t1lcft'd Intll a~ or , l!ln, II) elll CIIl HOllHIGlIlCZ YOUTll
rOllNO,\Tl0N, ISC.. n r10rltln non-profit CIlrporlltlulI lIlt'rl'lnMlI'r rI'h!rrl!lI III M "CIlI
CII1"lllull tlm CITY or CI.I~AJ{WAlnt, Fl.OlUlJA. a Il1uol<:lpul cllqlClrnlloll hhl! "cln'''l
IClll CIlI oml thl' CITY belli/: collt!ctl\'l!l)' rdetfl'd 10 M the "Ind!!lllnttor"), )olnlly tlull
&~vcrul1)', to lIut! ror lllll bel1l'rIt or /'.:CNJI NATIONAl. IIAN!>: OF FLOIUOA ["Lender"),
I( Eel T ^ l. s:
A. Concutfeotl)' IIl~rl;'wllh l.ender hilS Illode a huUl [t';;\! "loon"llo CIII CIlI, '
hllreln somllllmC5 rerctfed to nbo n~ "Ilorrower," In the amount or $o2,!:i00,OOO,OO, which
loon h s~,cured by, among olhcr thllllt$, that certain J.cllsehold Morll;nge Dnd Security
Agreement Dnd other security Instruments hhe "Morlgnlle") nr even dute herlJwlth, In favor
or Lender encumbering CIII ClIl's lensehold Interest In certain Improved and unimproved
real propert)' located In the Count)' or I'lnella$, Stnll! or F1orhJn, liS lnore Imrllculorly
described In ExhIbit ~A" IIttach['d herl'lo and by thIs rdt:rellce madl! a pllrt hereor (the
"Real Property"),. .
U, Thl! CITY IIlIS gunrnnteed the rella)'ment Dr 0 portion Dr the Loan.
C, Lender has reqUIred the eAecutloll and delivery of this Agreement os 0
condition precedent to Lender's makln!: of the Loon anti l.ender would not be willing to
moke the Loan In the ab$cncc of the CAccutlon and deliver). by Indemnitor of this
Agreemcnt. '.
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NOW, THEREfORE, Indemnitor ns an Inducemmlt to Lender to make the Loon
hereb)' co\'cnanU and agrec.s to llnd for the bencflt of l.ender as rollows:
I. B.l:.l:..W!.l.1. The recItals set forth above nre true and correct atld are b)'
this rer ere nee lllcorpora ted here In, .
2, Illltnrdou~ 5uh~tlln("t'~. As used In this Agreemelll, the term "'lnznrdous
Substancc.s" means on)' hazardous Dr toxic substanccs, lIIoterlnls or \lo'llStL:S, Including, but
not Ilmlletl to those substances, mlltcrllll~, and \lo'llSt\.!5 listed In the United States
Department or Transportatlon Tabll! (49 CFR 172.101) or b)' the Environmental Protection
Agenc)' liS hazardous 5ubSlonces (40 CFH Part 302) llnd amendments thereto, or such
substances, materlnls and wastes which arc or become regulllted under any appllcllble local,
Slate Dr [edcrilllll\lo' Including, \lo'lthout IImltatloll, an)' material, waste or substance .whlch
Is (I) petroleum, IIllnsbestos, lJill polychlorlnated bIphenyls, (Iv) dC$l!:nated as II ~hazllrdous
substance" pursuant to Section 311 or the Clean Water Act, 33 U.S,C. Section 1251 et seQ,
(33 U.S. C, Section 13211 Dr listed pursuant to Sl!ctlon 307 of the Clean WoWr Act (33
U,S,C. Section 1317), (v) dertncd as n "holDrdou~ wDste" pursuant to Section 1004 Dr the
Rc.source Conset\'atlon Dnd Recovery oct, .12 U.S,C. Sectlon 6901 et seQ, 142 U,S,C, Section
69031 or h'll dcrlned as a "hDlllrdolls substance" pursuant to Section 101 of the
Comprehensive Em'lronmentallh~iponse, Compensation and LIability A.:t, 42 U.S.C, Sectlnn
9601 et seq. [42 U,S,C, Section 91i0l), ..
3. Comr.llance wIth I.n"'5 Mil Rt..l:Y.!.ill.l.9m. Indenmltor herehy represents,
warrants, co\.cnants and Dgre~ to and with Lender thlll all operntlons Dr act.l\'JlIes upon,
Dr an)' use or occupancy of the Heal Prol.etly. or au)' purtlon thereof, b)' Borrower, any
tennnt Dr other occupnnt Dr the Heal Property, or an)' Ilortion thereof, Is presently Bnd
shall.throughout the t~rm or the Loan lie In compllunce with 1111 state, fedcral and local
la)lo.s and regulations go\'crnln~ or In an). \lo.ny relating to tllll generation, hantlllng,
manuracturln&, treatment, storage, use, transport11llon, splllulle, leakage, duml'lng,
discharge or disposol (whether: leGul or illegal. accidental or IlIlenllonull of any lIazardous
SubSlnnCCSj and that Uorro...er hns ootllt DOY time engaged In or permitted, nor to the beu
of Indemnitor's knowletlge aft!!r duc Inquiry has Bny wnant ur occupant of the Real
Property, or uny portion thereof, engaged III or plmnltlL'd nny malerlal dumping, discharge,
disposal, splllage Dr leakage lwhether legal (lr Illegal, accldelllal or Intentional) Dr such
1f0lBrdous SubstancC$, nt, on, In or about the Real Prollerly, or uny porllon thereof.
4. Indemnlflcatloll, Indemnitor agrees to lrillemnlry, ;JtotcCt, derend (with
counsel reasonably nppro\'ed by Lender) and huld Lender, and the dlrtlctors, orrlcets,
shareholders, employees and agenLS or Lllnder harmless from allY c1ullns Oncludlng, without
limitation, third party claims for personal Injury or rcal or"~ersonol property damo!:cl,
actions, admlnlstratlvc proceedln!:s (Including InrOrJl1111 procee~lngsl, Judgments, damagC5,
punitive damagcs, penaltlcs, (JIICS, COSLS, liabilities lincludlnllliUJl1S paid in settlements or
c1almsl, Inlercst or los5cslncludlng reDsonable attorne)'s' and pllrlllcgals' fees und eXpel15C3
Uncludlng any bueh rees and cxpensll5 Incurred Incnforclng this AgrL~elncnt or collecting
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IHI\' .ulU~ lilli' IINt'lImlt,tl, !:U115Ultllllt h'l's nlld ".l'Iwrt h'cs, Illl!l.Hher \I.'lih 1111 otller custs 111111
('.",>m'>~ lIf IHlr kInd Ilr tlRlUrt' kll'h,cllv/,Iy, Ih,.' "emu") 111/l1 IIrlse dltl'Clly Ilr JmJlrcclJy
frum Ilr In CUllllt'\:tlon willi tlm prt~Mmcc, MISIll'Cled 11r1~ence, relellse or suspected reh~1I5C
of 1111." 1I1ltnrdUU5 SuhslnllCl' In or Imo the IIlr, soli, surfnce wnler, groundwoter or soil
\'llflor nt, on, OhOlll, undl!r Ilr within thl! Henl Prup!'rt)', ur nny purllon thercof. The
Inlh'mnlflrntlllnpTUvhlt'd lnthlslHItIl!:rRllh Shllll sp/!clflcnlly Ilpply 10 luullnclude clnltll~ or
IIC/I(I1I5 btnu!:lll h)' elr 011 behnlr of l~Ulph)~'.'es of Indemnllnr IIr Borruwcr, IInd Indemnitor
hctl'hy (!~prf'!'5ry \I,'[Ih'e.~ AllY Immunlly W \4.hlcll'ndcmnllnr mil)' orhcrv.'Jae ht! entltled under
nny Inllll~Vhll or wnrl.f'r's cDlllpensntlon ln\los, In the evr.ntl.e!lder shnll SUffl'r or tncur nny
buch CUSI.\, IUlltlOUllll1r slmllj1n)' 10 Lemler the totnl (If nil slIch cosL~ sllfferl:1J or Incurred'
. by l.1'llder UIIOU dellullId lhcrcrur tJy Lend!.!r, Wllhout IImllln!: the !lencrnllty or the
fllTt:/itllln~, thl' Imlcmnlflcollon Iltl1vhlcd by this porai:rtIph .1 sholl sl'cclflcnlly COVer CIISts,
lnchuHni: cnl'ltlll. ol'erlltlnll nnd mlllntennnce costs, Incurred In conncCllon wllh uny
InveMI!:nllon or monltorln!: of slw cC1ndttfllos, UllY c1elln-up, conwlnrn/!nt, remedllll,
tOlIloval or rct;vlroth.lll work required or pcrformed by nny federnl, 1I1ote or loco!.
IlDvr.rnnwlllolllllcnC)' or pollllclll subdivision or Ilerrnrmed by lIny nongllvernmentnll!nllt)>
or pl!t5on \Iecnusc or lhe \lrl'.!elll:e;susl'ectcd pr~ence, relensl! or suspected releosll of any
IInnrdolls Substance III or InlO the IIlr, soil, groundwuwr, surfllcl! wllter or 5011 vnpor 01,
on, IIbollt, under or within lhl! Henl PrOpCrl)' lor ony portlun lhercun, nnd ony claIms of
thfrd parties ror loss or dOlll11lle due 10 sllch Hnnrdous SuhstAnce, III nddltlort, Hie
lrulcrnnlficntlo11 provldl'd by lhls jlllrll/itroph 4 shull Include. wllhout IImilllllon, nil loss or
dnmalle aUUlIlned by Lender or uny third pnny due to nn)' Jlnzllrdol1~ SubslUnce (I) lhot Is
prC$ent or 5uslleclcd to IIC present In lhe olr, soli, groundwater, ,urfllce wllter or soil vllpor
at, on, about, under or wllhllllhe Real Prolleny (or nn)' ponloo lhert!on on or before the
dati! of lhl~ AgreelT1enl, or Ull thnt mlgnllcs, rlow~, percolntcs, dlrruse~ or In nny way
mov~ onto. Into or under lhl! aIr, soU. ground....'lIlcr. surfoce WIIlcr or soli vapor 01, on,
nboul, ullder or within the Real Property (or nny portion lhereof) after the dole of lhls
Agrecment, Irr~lleCll\'e or whether such IInznrdous SU\JSUlI1CI! shall be Ilresent or suspected
to be prc.sent In the nlr, soli, groum.lwotcr, surface willer or soil vllpor al, On, o\Jout, under
or within the Reo] ProperlY (Dr an}' portion thereon os a tll$Ull of all)' releose, discharge,
dlspo,al, dumping, spilling, or Icnklnlllocch.h.:nlol or otherwlsel onto the Real Prollert)' (or
on)' portion thereon occurring before, on or nher the illite or lhis Agreement or cnused by
llny JI\!tslll1 or entll}',
5. RemedIal Work. In the event lln)' Investigollon or monItorIng of site
conditions or nn)' clllan-up, C011lnlnmcnt, reslorotlon, remlJvnl or other remedlol work
IcolleCII1;el)', the ~'Relnedlal Work") Is required under on)' oppllcable fcdernl, stille or local
law or regulallon. b)' an)' JUdicial order, or by ony go\'ernmcntal cnllly, or In order to
comply with an)' agreements orrecUng lhe Relll Propert)' becausl! or, or In connect Inn with,
on)' occurrence or !lVent described In pnrograph 4 above, Indemnllor shull perfnrm or cnllS\!
to be pl!rformed the Remedial Work In compl1nnce Wllh such Inw, reglllnllon, order It.l
agreement; provided, that Indemnllor mny wllhhold such complloncc pursuant to 0 good
folth dispute regordlllg the appllcallon, interj1rctOllon or vulldlt)' of the law, regulation,
order, I)r agreement, subJecllo lhc requirements of parngrnph 6 below. All Rcmedlr.1 Work
sholl be perronned by one or more conlraclors, seh:Cled h}' IndemnllOr and appro\'cd In
Ildvllncc In writing by lender, All costs and expenses of such Remedial Work shllll be paid
by Indemnitor Including, wlthoutllmllatlon, lhe charges of such Gontroctor(s) andlor lhe
consulting cnglneer, and lender-If! fensonoble ottllrney~' nnd pilrolcgal~1 fees nnd costs
Incurred In connection with monitoring or rc\.le..... or such Remedinl Work. In lhe eVent
Indemnllor sholl COlllO timely commence, or CllUSC to be cornmellced, or fnllto tll1lg111ll1y
prosecute to coml'letlon, such Remedlol Worl<, lender moy. but shall not be required to,
cause such Remediul Worl< to be performed, Dnd all co~ts and expenses thereof, or Incurred
In connection thereWith, ~holl be Cosu wJthln the meaning of Illlragroph 4 ahove, All such
Costs shnll be due ilnd poyable upon tlemnnd thereror by Lender,
6, rf!nn1l1ed Con~e~t5, NOlwllhstondlng an)' provision of lhls Agreement
to the contror)', Indemnitor will be permllted to contesl Ot Cllu:.e lO be comesled, subject
10 compliance .....Ith lhe requlremellls of this paragroph, by IIpproprlllte lIellon nny Rernedlnl
Work requirement, arid Lender shall not perfoml such requirement on Its behalf, so long os
no "Evllnt of DefaultH has occurred IInd is continuing unde~ lhe Mortgnge or uther
Inslruments evIdencing andlor securJnl; the Loan (till': "LOllll DUClJmCllt.s") nnd Indcmnltor
hilS given Lender wrluen nollce that Indemnllor Is contesting .or shall comest or COUSe to
be conlested the some ond Indemnllor oClually COlllCSU or causes to be conlcstcd the
oppllcatlon, Inlcrprelllt!on or VlllldJt)' Dr thl! Remedial Work by 1I1'proprlnte proceedings
conducted In good fallh Wllh due diligence; provided, such contest shnll :lIJt subject lender
or IIn)' 05slgnee of Its Interesl Uncludlng uny person hllvlng 0 beneflclnl Illlercstlln lhe
I.olln or lhe Loun Documents to clvllllablllty i1nll docs nol JtWIUlrdJze IlIl)' sl/ch party's Jlen
upon Dr Intcrest In the Real Property or nflecl In ony WilY thr. payment or on)' sums to be
patd under the Loan, lndemnllul shnll give such security or aS5urnnccs 115 mo)' be
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7, Suhroullon of Indl'mn!1\' ltlJiliU, .H lrllh:nUlitor fnlls to perfonn ILS
abll!;atlons under paragraph 4 /llmve, lmukr 1>11II1I be suhrognled to :1Jl)' rlght.& Indemnllllr
moy hnve unr)(!r nn}' Inc!elllOlfll;:/ltlnns from nn}' present, luture nr former owner's, tennnts
or other occupants or Users of till! I{(mll'ropcrty (or nny portion thereoFl, rellltlng to tht!
IIllltters covered hy this Agreement,
B. ^ssllmmcnt II\' Lendcr. Exr.ept /IS otherwIse rcstrlcted by thllt cerlllln
Contlnulng one! UncondItional GmmHlt)' 01 e\'cn dOle hercwlth, no Cll/ISMt by Indemnitor
ahnll be reqlllred lor /lny /lsslgnmcnt or rellsslgrmllmt of the rlght.~ 01 Lendcr hereundcr to
one or more purchnser~ ,of tlm LOlm, the Loon DocunmnL\ or thc Relll Prollcrty, or ony
portion thereor,
9. Men:!!r. Consolldotlon Dr 5111c of Assets, In the evcnt Dr a disposition
Involving IndemnItor 01 all or subsunllnlly ol! the llS!cLS of JndemnJlOr to one or more.
persons or other entities or the merger or consol!dlltlon of Indemnitor with onother enllty,
the survh'lng entlt)' or transleree of IIssets, 115 thll cllse lUay he, shnll III hn formed IInd
existing unller the 11lWS of 0 Slat!!, district or commrmw!!lllth of the United Stlltr.f> of
America, and (Ill dellv!::r to Ll!Odcr on ncknowledged Instrum!!nt In recordllble foml
assuming 011 obllgBtlollll, covenllOts anll.responslbllltles of Indemnitor under this Agrecment.
10. Indr[l!!ndcnt Obll~lltlon~: Survival. Notvdthstllndlng lln)'thlng to till!
controry contlllned In nn)' of the Lonn Documenu, Including, Wlthnut limitation, the note
evidencing the Loan or the Mortgage, the obllgotlons of Indemnitor under this Agreement
sholl survive the consummotlon 01 the Loan transllct!on dC$crlhed Illlovc, the tepnyment of
the Loon Dnd Dny IIssumptlon 01 the Loan b}' II successor to Indcrnnltor (whether or not the
assumption hos been approved or d tsapproved or whcther or not IndemnItor WIlS released
from lIablllty on the loanl ond reconvey..nce or foreclosure of the Mongage, The
obligations of Indemnitor under this Agreement are separate and dIstinct Irom the
obl!gllllons 01 Ind!!mnltor under the Loan Documents. This Agreement ma)' be enlorced b)'
Lender without regard to IIn)' other rlghLS IInd remedies L!!nder mil)' hllve against
Indemnitor under the LOlln Documents ond without rcgord to 'any llmltlltlons on Lender's
recourse as 1n1lY be provided In thc LOan Documents. Enforcement of this tI.greemcnt shnl!
not be deemed to constitute on .octlon for reco\'ery of the Loon Indebtedness nnr for
recovery of 0 deflclenc)' ludgment nglllnst Indemnitor following foreclosure of the.
Mortgage. IndemnItor QxprCMIY./lnd specifically ngrees thllta sepllrate nctlon or actions
mllY be brought Bnd pros!!cuted against Indcmnltor hl!reunder ....hether or not Dctlon Is
brought against Indemnitor under the LOlln Documents,
11, [)cfaultlntcTl.'st, Any Costs ond o~her pa)'ments rcqulrcd to be paid by
Indemnitor to Lender under this Agreement which are not pllld on demllnd therefor shill!
accrue Interest ot B rate equolto the greater of eh;hteen percent (18%) per allnum or threll
percent (3%1 per annum obove the Interest rate paYllble under the Loan, but not In any
event greater thon the mollimum rate of Interest permlned to be contractl!d for by low.
12. Mlscellancous. Ir any Wrm of this ;\grel!ment or ony applicMlon thereof
shnllbe lnvolld, Illegal or unenforcenble. the remainder 01 this Agreement \llld an)' other
nppllcatlon of such term sholl not be arrected thereby. t>:o delay or omission. In exercising
ony right hereundcr Shllll operatc as a .....alver tll such rlnht or any other right. This
Agreement spall be binding upon, Inure to the benellt of aud be enforceoble by Indl!mnltor
Bud Lender, nnd their respective successors and a!'sl~ns, Including [wlthoutllmltiltlonlnny
osslgnee or purchaser of nil or nn)' portion 01 the Lender's Interest In the Lonn, tlm Loall
Documenu or the Helll Property, This Agreement shall be governed /lOll construed In
accordance with lIm IIlws 01 Florida,
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rl'lI~onl1hly n~Qulred by Ll'ndcr w lnsurl' cn1l11'IlnncI.' with till' h~I:!l1 relJuln~lIIcnts JIl~rt nlnJrll:
to the Hemedlnl Wor k [nnd jlll)'m!'lll 01 oil CllSU, I~Xlll~nSI'.\, Illll'rl'st !Iud pennltles In
connectll\O thereWith} nIld to I,revcut allY sole, furfelture or loss hy renson or such
non[lll)'nmnt or noncompliance.
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J3. )Jom! Olsclalmcr. Notwlthstllndlng pllrngraphs .1 nnd 5 obove, thl!
obllgotlons Dr the City hereunder shall not constltulc a f;l!ucrnl obliGation or II pll!dge or
thl! full lalth ond credit or the taxing pOVJl!r 01 the City 01 Clear.....awr, or a lien upon IIny
propl!rt)' OI'mcd by the Clt)'. An)' obligation Dr the CIty hereunder ~hDJlbe a limited special
obligation pllYllble solely Irllm fUllds of the Clly, e>;cJudlng lid valorelll tax rlIVenul:$,
avoilable for such pllyment under the 1I1l1luDI operlltlng budget Dr the Clt)' In the flscnl year
In whIch rll/ytnenc Is to be mude. No peNDn shall JJD\'c tile right to requIre or conipel the
lcvy b)' the City of ad \'lIlorem tll>;~ on 1111)' prolleny to PDY all)' obllllatlon of tJlll Clt).
hereunder. Nothing herein shall he deemed II cm'cnant or lIgrcemcnt of any offll:er, agent,
or employ!!e of thl! City In his or her Irllllvlduol capllclty.
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14. l!ubllc lIt!!Ilth, By !lnd tJlrough Ita execution oft hlA Agr(!(!mcnl, tho City
liereby' Urids tb4t.the underlying Jlurpo~e for .....hlch lhla Agreement Is glv!!l1 oDd the
underlying P\lIl'IOMI of both the Chi ChI RodrlRlle~ "l'OUUI ""ol1lldoUon, loc.,'nod the prnJeCt
giving r1s~,tG thl. Agreement. consllt~lc nnd,s(!tvc n.publlc hcnlt.h nod sufety IIUrpOllC..
. . IN WITNESS WHEREOr, Indcmnltor hilS f!xccuwd Dnd dcllvcr<-'d thIs Af(remrrel1t
on the dotc first statcd oboVI!.
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INDEMNITOR:
CIlI CIII RODRIGUEZ YOUTII
FOUNDATION, lNG,
fly:
WllIlnm HnyC5
I~: Presldellt
Attest:
Iu.:
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Counters I gned:
CITY Of CL~RWATEH. f"LORIDA
fly:
t.!nyor - Commission
Approvcd 1I5 to fonn nnd correctness:
Mlchncl Wright, elt)'. Monngcr
Attest:
City Clcrk
City Altorncy
MORTGAGEE:
NCNB NATIONAL DANK OF FLORIDA
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Iu.: Vice President
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COSTlo..:UI~G IISD lISCmilllIlO1MLGlM1U\.tin:
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FOR VALUE IH':CE1\'ED, IInd In IrllhlCI~ NC~\l t>;:llhmnl \lnnk of Florida, llHO
Gulf-to-lIny Uoull'\'an!, Clenr....'at!.r, Flnrldn Ihl'rl!ln cnlled "Bank"l to mnlil' II 10lln Dr
ndvunces Dr to I"!xlenll credit or nthl~r rJnllnclnl nccntnnllldilti,on ur hencflt, with or wllhoUI.
~~curlt)', to or for the IIccount of Chi Chi Hndrll:ul:t Youth Foundation. Inc., II Flo.rllll!
not-for-proflt corporatlon (herein called "Uorn......er".or the "folmdlltlol\"l, the IInderslgnl'd
Guarantor hereby bl"!coml's suret)' for nnd hre\.'ocllhl)' and uncollditlollRII)' !:uarllnwe..~ u;.
',.
Bank the Pll)'nu!nt .....hen due, .....hl"!ther b}' IIl!Cell!rnllon or othl'rwIM!, of 1I11}' and nil II nlJl lilies ,
IllS hereinafter deClnedl of Borrower to lIank. Gunrnntor further con:nmlts IInd a/trees 115
follows:
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1. Thl! term "LiRbility" or "L1nbllltlt:s" (IS used herein shall Include,
without Ihnltatlon (except"" 8.~ expreSsl>' set fo.rtldierelnl. nil liabilities IInd ollllgatl[Jns of
llorrol"er to Bank and 011 obligations of the underslgnt!d hereunder, hO'ol'e\'er Ilnd .....hene\'cr
Incurred or evidenced, whether prlma~)', secondary. direct, IndlrJdt, IIbsolute, ~onlll1gelll,
I,
sole, joint or se\'ernl, due or to become due, Dr .....hlch may be. herein or hereafter
contracted or acquired, or Incurred dlrectl}' or Indirectly as a result therenf, and all
I"!xtenslons or renewals thereof and all sums payable under or by vlrtul"! thereof Including,
without limitation, all nmounts of prlnclpnl and Interc.~t nod n!l expense! !Including
attorneys' fees IInd tosts of collection Incurred In the collection tpereof or the
enforcement of Bank's rights), whether arlslns in .the ordlnnry course of buslnes' or
otherwise, and whether held or to be held b)' Uunk for its own lIccntmt Dr liS llgent for
another or others. The. term L1nbllltll'..5 liS used hereln.shull include IIIll.iobllltles of nny
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successor entlt}' or entltlcs to BUl,k.
2. The undl"!rslsned Wlll\'cs notice of occeptonce of this guuranty tlnd
nollce of IIny Liability to whiCh It may apply, und further wai\'cs presentment, demand for
paymcnt, protc.!tt, notice of dl~h[Jnor or nonpll)'mmll of nn}' Llllblllth!5, 11m! notice of ony
suit or the taking of other action by Bunk against Borrllllo.cr IInd any other notice to nn)'
party liable thereon !Including the underslf:nedl.
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3.., Dank may lit nn~' time and from ,time to time. without nutlce to and
without Incurring respon~lbllit)' to the undersigned, IInd .....Ithout Impairing, releoslng or
othcr.....lse affecting the obligations of the undersJllned in .....hole or in pan and \\'lthout the
endorsement or execution II)' thc undersiGned of IIny ~'ddltlonal consent, walvcr IIr guaranty:
,
lal change the manner, plnce or..,tcrn!s or payment, and e1mngc or extcnd the lime of, [Jr
renei/o' or .Iller, any LIability or In~tallmenl thereof, or IIny security therefor, OInll the
guaranty herein made shall apply 10 the I.labllltles liS bO chnngl'd, cxtended, rcnewed, or
othcrvilbc alteredj pro\'lded, ho.....ever. that in no I!Vent shall the Bonk ad\'nnce funds Euch
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No 11I\'1II1dlt}" Irrer,\llrll'lt.y or uncnfon:clIhlllty of nil or nny plitt of the
Ihllt lhll prlnclpnl 1I1l11HJllt nlll!;1 flmllnr, I'xI'ror.'llr, !,2,5110,noo: (h) ~ell, eXf.'hnn~e, tlllcn~(!,
~lIITI~ntl['r, I'cnll/e 1l11f11l '01' Othl'l'wl:;I) dl!ul willi In UIIY Inlllllll'l' nlUlln nil)' lJl'lll~r nn}' pl'nl"~l'ty
lit nny lime I'h~dF:I!lllll' 1I10l'1 ~:l1p.l't11 n f,l'clll Il I h., Unhlllt.h'r. nllll nil}' IIrfr..... tllel'l:nRnlllr.ti ((:1
,
eXI'rcJsc 01' l'efl'uln fmm cx!!n:lslnr. lIll)' r1~hl.s IIgnlll:;t HnlTOWI:1' or nllll'n; (InchHllnr. the
1Jnd(~rslgOl~11) or lIet or tdrnln ftorn 111:t 1/11: III nn)' uthel' mnrll][~l'i (d) settle or compromise
lIny I.lahillt}' or un}' sccurlty thel dol', i1IHllIln)' r.uhlll'lllllnl e the puyrnent of nil or nny patt
thereof to the pn)'ml!nt of nil}' L1nhlltl}' (wh.:1 her or lUll. due) of normYo'er to creditors of
Borrowcl' other thun UIIllk oml t he undel'sl~ncd; and (d apply rillY SIII115 from fillY sources to
any Linuility without t11Ilnri"'lo nny L1l1hi lities relllninlnr. Uilpold.
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Llabllltlcs or of lIn)' security therdor shnllnrfcGt, Impn!r or he 0 derensl~ to this guoranty,
ntHI this gunranty I!: 0 prhnnl')' !lIltl absolute ohHr,ntlon of th(~ undcrslgned.
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Thl:; gllor~nty fs n cotJtlnlllnJ; one nnd nil L1nbllltl6s to which It applies
or may apply under tile terms hereof shnll he conclusl\'ely preslll11ed to have heen crented
In rcHnncc hereon, No purported notice hy GunrRI1l0r of re\'ocatlon or terrnlnntlon hereof
sholl offcctln ony milliner rights nrlr.lng lIntlcr t.hls gUllronty with rcspect to L10llllltles thot .
sholl have been created, contrncted, IlSSUlllCd or Incurred prior to receipt by Oonk of
written nollce of such revoclll.lon or termination, or I.lnhllltles that .shlll1 hove been
crented, cUlllrnctcd .for. nssumcd or Incurred lifter l'l!c(!lpt of such wrllle" notice pursunnt
to nny ngreemcnt entered .Into by Dank prlnr to receipt or SIIch tJotice, nud the sole effect.
of such notlce>of rc\'ocotlon or t erlnluollou hereof shull hl'! to cxchule from this gunranty
Llahl1llles thercllflcr nrlslng that lire unconnected ~'Jth L1nhllltlcs theretofore llrlslng or
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transactions theretofore cntcmd lnt 0:
6. All nol.lccs provided to he !:Ivr~n to !lank herein 51mB be sent by
legistered or ccrtlfferll1laJl, rctUI'l1 receIpt req\Jcstnli, to tbe addl'css shown In thc prclHTlblc
to this glmrarll)' aJ;rcclIlcnl.
7, Any and nIl rights III III c1altlls of 1 he llllllcrslr,lIeli uglllnsl Borrower or
, ' . L\
nn)' of Its 11I'0IH~I"'ir !>hall he 5uhflnlinale anrl suhjl:ct In ri!~lll. of pnYl\1Cllt to the prior
payment in filII of all Liabilities to Balik.
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The Ilmlerr.lgnl:d sholl he In ddnlllt. h!~l"t'lIl1dcr .upon: (0) nOll-pa)'ment
of nny Liability when due; (h] fullul'c (If Borrower or the undcrslHned to perform nny
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.agreement creatlnll or otlwrwlsc nffcf..;llnA nil)' LIl.hlllly ur nil)' provision hcnmf, nr to poi.
in full, when due. any other ohllglllioll of norrO\'''(~r or tlw undersigned; (c) tlie dissolution,
., term[natlon of c.xlslUncc, [nso\vf1ncy, Ilr hushwr.s fullur c of Borrower or tlw \I01lers/r,ned,
llppolntnwlll of II n~cl:l\'er of nllY part of tlm properly of nn)' such purly, ur.sIJ:lH'lIcnt for the
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appeal, In bankruptc}' proceedings or otherwise, Incurred or paid by 13ank III enforcing tlm
payment of lin)' Liability or enfr,rclnc or preserving llllY rlcht or lnterc,~t of [lallk hereunder,
Including the collection, sale Dr delivery of IIny collllterlll security frolll time to time
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,bendlt of creditOr! by or the CUlIllnellCcrmmt of IItl}" I'ruce,~dlllg~ In bnnknlJJtcy or
h~oh'r.IICY by or lIKlIlr~t Uorro.....cr or the undenlcncd; (dlth!' cnlr)' of II judllnwnt 1Il:lIln51
Uorrower not utlsfll'd Dr ttllnsfcrrcllto bond within thlny I:!Olllnys; leI thll Issulnj; nf 1111)'
nUllclunent or j;nrnlshment, or the fillll': of IIny lIell lIl:nlllst any propl~rty of Illlrrowcr; In
tlm merger, consolldotlon or reoTllonlzotlon of !lorrower; 11;1 the dl!lennlnatlon by !lank Ihat
ony motcrlol, odverse chanjie ilOl otherwbe npproved In'wrltlng by \]onk hilS occurred In the
rlllonclal condition of Uorrowcr or the underslRnl!d frum the' 'condit Inns set forth In till!
financial stotcments of IIny such pnrty herelorore furnlshl!d to Hank or frllln the condlthlll
of such pllrty as herewrore most recently dlsclo~ed to Bonk In lIny manner; or (h) falsity
In on)' mlltcrlal respcct or, or any materllll omlssll," 10, ilny rcpreseototlon or stutr.lncnt
mode to \]onk b)' or on behlllf of lIorrowcr or the Ulidersl~Ol!d to r.onllccllon with 00)'
Lloblllty OI'-OH-oongnHon-or such parties,
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g. Upon the occurrence or any dehult herellllder,.llonk slmlJ have 1111 of
the remedies of a creditor lind, to the extellt applh:ablc, of 0 secured port)', under all
IIppltcable law. Without limIting the generality of the foregoing, Blink moy lit Its optIon
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ond without notice or demood: (01 declare an)' Liability accelerated and due IIml payable
at oncci and (bl take possCMlon of an)' collal erol &eeufH)' securlilg any LlabHlt}' wherever
located, and sell, resell, osslgn, trllnMer ond dclh'cr 011 or Bny pan of sold propcrt}' of.
Borrower or the undersIgned, ot ao)' broker's boord or e~chonge or lit ony public or private
sole, for cash or on credIt or for futurc dell\'ct)', ond In connection therewith Bank mo)' .
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grant options and may Impo~e reosonnhle conditions such as requiring IIn)' purchaser or nn)'
stock so sold to represent that such stocl; Is purchllsed for Irwestmcnt purposes onl)', and,
upon nny such sale, Blink, unlCM prohibited by IlIw the prOVisions of which cannot be
wRlved, ma)' purchase nil or any part or sold properl)' to be sold, free rrom Bnd discharge
of oil lruS1.5, c1l1lms, right of redemlltlon lInd equitles of the undersigned whatsoever,
10, The undersigned shall Po}' all costs or r.ollectlon and re;lsonublc
attorneys' fees, Includlog reosonuble llltOrocYG' fec.~ of on)' suit, OUt or court, In trlol, on
pledged hereundllr, If lillY, ond after deductlnll such fees, costs and expenses from thll
proceeds or sale or collectIon, \]ank llla}' IIpply IIny residue 1lI P;l)' any of the Llllbllltle~, lInd
thc undersigned shall continue to be Hable for IIny deficIency ~'lth Interest, which ~hall
remain a L1ablllty.
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II. If do 1m I~ en.l' lltarlt~ II/lOll ncltlk fill' n'I'II}'lIlf!1I1 (1/' rCCDVI!ry of tllly
nnllJulll or UlJlOllllt~ rf'c(d\'l!d hy Blltlk III paY1llf!1l1 or 011 nccount"f nn)' flf t hll L1nhllllle!l,
nllt! Bonk rcpnyt; nil or Im..t nf ~.nltl lllTlll\lllt h}' rem:1l1l (I,' IIn)' )lIelglllcnt, dl~CI"llU or nrdcr of
o(ly COllrt or llllmlnlstrntlvc hndy hm'lll~ jllllsllktlnn over Hnnk or fillY of Its property or nny
settlenlPllt or COl11l1rOnllsc or nny !HJl:lh:lailn crrcC:led hy !lank with nllY such clnlO1l1t1t
(lnchllllll~ BUn'owcrl, then the. \lllelen;llllwIJ ngl'ee tlwt nlly 511r:h jlldr,rncnl, dccree, order,
received hy Bank.
sctt!t'1I!tml or compromIse slwll be hlmllnn UIJUll ,1I11 'Jll!lpn'ilgtll~t1, notwlthstnndlng any
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revocntlon hCI'I~or or the enllccllnllotl or an)' 1I0te or otlmr Instrument evidencing nny
. Llnhlllty, nml the Illltlcn;lgllcd shnlllll: nnd remnln Hnhlt: .tn Bnnk h~rclIIHlcr for the amount
. 50 rcpald or recnvercd to the snlllc extent us If s\1ch llUlOllIIL hml never orlglnnlly heen
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12, Any acknowlcrl~cmcl1t, new [fromllie, pllj'ment of principal or Intercst,
or otherwIse, whether by lJotTOWrlr nr ot.hers (Inchllllrlg the \ltIdcrslgncel), with rc.o;pect to
, ony of the L1nhllltlcs sholl, If t.he !ltnt,., c of Ihnlt.otlons III Favor of the undersigned ngalnst;
Bnnk sholl hn\'c commnnccd to run, toll the rUllnlng ur sllch stntute of Ihnltl1t.1olls nnd, If
tlm period of sllch stuW!.c of Ihnlllltions. shnll have explrell, prcvelltlhc operntlon or such
n
statute of IImltat.lons.
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. I J. nallk shllll /lot lie bOlJillJ to tnkc all)' Sl cp.~ llCr.cr.5111"}' to preserve ouy.
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rights In nny of I hc propert y of the IIllderr.lgned against prIor parties who moy he \loblc In
connection lIHlnlwllh, ond thr. unden:;lgned hllrchy n!,:re(~ UJ l nkl~ un)' such steps, Bl1nk may
neverl hcl('.$~ ill nnythnc: (0) lob! ntly action It rnn}' deelll o)l]lroprlnte for the core or
preservation nf sllch llro(l('l"ty ur or nny rlr,h's of the untlf!rslgned or Bunk therein: (b)
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demand, Slle for, collect nr mcei\'c llll)' mOlle)' or profwrty at llf1Y time due, pllynblc or
recch'Hble rm nccoullt of OJ' III I'xchallJ;c for Oil}' IH'olll:rty of tlm IIlldcrslgn~d; (c)
cOlllpromlse: onrl. sr:uln with IIny pm ~Oll IInhh: on sllch property; or (d) cx! end thc tlmc of
(laymcllt or otherwisc change I.h,: terms tlll:reof liS to nny (l1I/'t)' lIahle thereon, nil without
notice to, wlthollt incurring m!\(lHnsih1l1l)' tn, nnd wilholll affect.ing on}' or the obli1;ations
of the lIndersl~lIccl,
,.,
101, No tlelny orr t IIc part of Hillrk in e,lwrdslng nny (If Its options, pDwcr.~
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or rls.:hts, or portial or !;lngle cxercl5c thnrcof, shall clJnstitl1ll! n wah'cr t.hereof. No waiver
of any of ils rlllhL'i hercuncler, and 110 lI\nrllricllllon l)J\\llJIl:IHhl\l~lIl or thlF . Ill/arl\l It)' , sholl
"'I . c
he deemed to 1m mllde hy Hank Unll'~5 the SlIllle !'ohnll be In wri 1.1 1I/l , (I'lly slgncd 011 hehalf
of Bnnk, oncl ench Buell w;iivcr, if lIn)', slmlll111(lly ollly with l'(~~pcct to lljl~ st1eclflc InstillJ(.:e
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involved, and shnlllllllO wuy [mpalr I he rights ur Bunk Ill' I he lJbligal.l(JlI~ of thl! 1l1lderslgn~d
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t.o Bank In {lny (1/ hl?" I"cspr:f;t (It 11Il}' mile/" I hrw.
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15, \lllnk aholl nut lu~ re'lulred to "r(lcCI~11 first 1lJ;1I1nst IkltrO\lo'er, or nO)'
other per$oo, firm or l:orflorlltlOlr, "'Iwther flrlmllrll}' OJ' sl~col1dlltlly llllhh~, or O.l:Ol115t nil)'
co\]oternl security helll by It, llcfnre resort 111ft 10 the ull1lerslllni!d (Ill' \lIlYllll~OI, ond thl!
undersIgned shllll hOt be untIlled to IIss!)rt ,liS p l\dllnMl to thl1 cl1rorccllhlllty of the
gunronty scl forth herein any defense of IJorrowu with rcslwet 10 IIny Llllblllty cUler .thon
tho Mriinsli'lliat'pilymenl hM beM. made, In whole or In pori; If $uCl! Is the cpse,
16. The term "underslllned" .....herever UMld herein sholl menn the
undersigned or any 00!! Or morc of them. Anyone c;wcutlnE; this E;Ulltllllty shall bl~ hound
by thl! tenus hereof Without regllrd to execullon by IInyonl! else, This J;uarnoty I~ binding
upon thl! umlel'!I.IIncd, his, ,tlll~lr or Iu Cl!ecUtors, ndmlnlstrnwrs, succcs50rsnnd 115Slglls, ond
sholl Inure to the benc{!t of UlInk, Its SUccc.~sors, endorsel\$ or assigns,
17, This ogreelllent has been delivered In the Stote of Florldo pnd shall be
cOlUtnled In accordance with the laws of Florida, Whereyer possible, eoch proYlslon of this
agreement shall be Interpreted In such manner 05 to. be effective nnd valid under appllcable
low. but If any \lrovl510n or thl5 ngreement sholl be prohibited by or Invalid Ilndl:!r oPllllcable
law, such prOVision shall be Inetfecllve to the extent of such prohlblllon or InvaliditY,
wlthoullnyalldatlng the remoloder of such provl!lol1 or the remaining provisions of thIs
agreement, To the e"t~nd extent permitted by npllllcoblc IIIW, lhe undersigned hereby
waive any provlslon or la"" that renders ony provision hereof prohibited or unenforceable
III any respect, Any litigation arising hereunder or related hllreto sholl t,c trlcd tw the
note couru for the county or the federal court of the United Stnt~ redernl district where
the branch aUlce of Dank stated ill'the p;l!llmblc hereto Is located, whichever Is aJlJlllcoble.
f8. The following speclol prOVisions shall apply to this Guarontr. In the
event or any conflict between the body of the Gunranty Dnd thlJs!! speclul provisions, these
speclof provisions sholl control,
A. puratll1n Ilnd Asshmnblllw of G\laranty, This Guaranty shall
remain In rull force and crfeet so lone as NCNB, or Its successors or asslllns, Is thll holder
of the underlrloc obligation gu~rlln~ecd herell)'. NotwithstandIng the abov!! 11l0,l;U11.l:e, the
City's Guoraoty shall he limited to II lOLl'll DI:CrCIIOle sum not LOIlXC;eed One Million Dollars
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151,000,000.00] for the nru nlnll 191 YC[Jrs from thc dntl: of the original promissory note.
ThereBfter, so long liS the underlying obligation Is 1I0t Itl default, GUllrmllor's OtJllgPlIol1
hereunder shall dccrea~e onnuplIy by an amount equal to One lIundred SI~ty.Slx Thnusand.
Six Hundred Sixty-SIx Oollors !lnd 67/100 IS1G6,G6G.67}, It belllg thl! Intent of the parties
thot Guorontor's guoranty hereunder shol/ decrea.se oy $/66,666.67 ller year ulltllltu: end
of the fifteenth yellr, whereupon Guarantor no long!!r shall he oblli\llted,
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III the C\"t'Ul thnt NCNIl I1h~ct.~ nnt tll B'III'W the lOAn ut un)'
lime Ilrlor to the I'ml of the fifteenth fl'nr, In nccordlltlce with the LUIIlI DocUlnentJl,
,
Gllutllnwr nc\'crthclr.5s cuvenunls lIlId Ul:ret'1> to RIIlIrunty the Foundnt lon's loun with uny
other &lnte or federnlly dllltteB!t1 r1nonclul Instltutlllll, reJlutllhle IrL\\lrilnCI! cIIlllllnny, or
credit union, The City's covennnt ~hllll Ill! dCClIled .to rlln III (n\'lIr of hoth tlll~ FOIJhtlntllln
nnd NCNU. In the e\'ent tlm Foundation dl!-\Irc.\ to borrow frorn nil entlt)' other thn" NCNU
IInd other thnn an}' other stllte or h!dernlly chnrtNed r11111llclnl IlIstltullon. ,reputahle
. ,
IMllrance COmpIlU)', ur ctl!dlt union, the City shall hnve the rlRht,.ln ItIi sole discretion, to
delcrmlnl! whether II d~ltl~ to CuRrnnty the Fouudllllnn's obll!;lItlOlU to sllld entlt),..
U, Gnlund l.l'n~~/JTenns. Guurantor IIckllowlf!dges thllt It Is the
owner of certain renl property subJecl to a Rround lellse In fnvor of Borrower, which
propeny Is more pnrtlculnrly df!.';crlbcd In that. ceruln AGreement dilled Novemh!!r 12,
1985, whlc1~ Agreement lIo'I\S amended 011 March 5, 19B7, lHHl-ttg&lfl'tilt-lduteEH'H.ullM!oqltultt
lHnffi*IIflCfillt! rebni~,' 16, 1986, Nov.crnbu. 20, 1989, .an~. November. .1'.,.: 1!lOO {the
A!;Teeme,nt, lIS amended, shall hereafter be refcrr!!d to os the "Ground Lease"}. The City
underSlonds that Borrower hns delivered to Uan~, as addlllollul s!!curlt)' for repayment of
the Loan, a Leasl!hold Mortgage and Security Agreement of 1l1len date herewith, Although
the Clt)' 15 not wllllng to subordlnatl! Its fee simple Intcrc.~tln the PrOj}erly to Dank, the
Clt)' h willing to give !lank certain oddltlonal rights, which rights currentl)' do niay not
elllst under the letm!i of the Ground Leose, The Clt}. understands thnt llnnk would not.
elltend financing to the Borrow!!r In the nbsence of such addlt 10ml1 consldernllon and these
addlllonol provisions are II necCS50rr condition for the JOlin frolll Dank to Ilorrower. These'
provisions shall remain In full force and errect su long ns .lhls Guurant)' 15 In crreet.
1, Notwlthstandlnc Iln}' Illngullge In the Ground Lense, the Clly
shall pr01llde to Dank written notice of an)" default by Dorrower under the Gruund I..cnse.
In nddltlon to any cure period conlolned In the Ground l.ease, If any, Bunk shalllll! entitled
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to an nddltlonal thin)' (30) days to cure any alleged default.'. In the eVenl of a default
which, because of It.s nnture. cannot be r.ured wIthin the nddltlonnl 30-dny period. but which
can be cured within a reasonnble lillle. U.mk ~hnll he entitled 10 such atldlllolloltlrne so
Ions as it Is actively attempting to cute the default,
2, Notwithstanding 1111)' I~n!:uoge In lhe Groulld I.t!i1SC, the Gr~und
Lens!! ~hlll1 not be terminated based upon n dl'fault II)' Borrower Yo Ithoul tI,e prior \loTluCIl
consent or Bank.
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3. NotwllhsUlndlng an)' Illnguoge In the Ground Leose to the
contrary, In the event of 1\ dClfuuh under the Ground Lea~e h)' Borrower, Uank shall hdJll
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lhe rlghl t.o n!'.!'.lIl1le llonowcr'J; t[p,hls nud ohllr,nlhulr. lllllh~r th!! Gruund l.('Ulie (1/11/ Clly
herehy nprrovm; Bonk liS 11 !'.lJc;ce:;sor h)..~r.cn under t.he Groll11l1 I.enr.c. III sllch l!VClIl, I he
CII)"s gunrllnt}' 5hull rernnln In fllll fon:c 1II1l1 efh:cl. 11111.11 full}' sntlsfh:II,
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'01. Tim Ground l.cnr.e I:hllll lint. he mnl!IllI011 wll.hol1l IIUl 111'101'
writ t.ell consent (If /J,lIIk.
. fl. In tIll! event. Lhut BlIlIllnsslllnes or nlhcrwl!'.r: IIGfJlllre'!; Borrower's
interest In the Ground tense, throlJr,h judlclnl fnrccJosllre or ot.llIJrwlsc, Bonk shull be
l!ntltled to nn}' rentolIH'lIC.~l'l\s IItlll n1l nt.llI:r rm'enIJC$ tlcllvP.lI from \.lIe I'rollnrty !m:ludlng:,
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hUl /Jot /lmlt.ed 1.0, Ilrccu:; fcr'..., cnrt [ce:;, profcssloJllll r,ot! 1['~';snn5r I1ml I1IlY rental Income
frolllthc portion of the Prllp(!rl)' currently oJ){~rlltr.l! lH; t.he PGA Fnllllly Gol( Cenler,
6. Notwllhsl.nndlnr, UIl)' .Innr,unge III I he Grollnd Lllnse to the
contrary, Balik mo)' appoint II tl~celvl'r ill' trlml!!c to npel'nl e. tlm PrOlwrty In the c\'CnL thut
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Bonk nssurncs or ol.hc!'wlse nCI)ulrcs Borrower's Intcn:r,1. In the Ground Lensc, (or Is In tlm
process of assumIng or acqulrlllg Borrower's 1111 eresl) I hmugh JwllclnJ foreclosure or'
olherwlse, FurthcrmnJ'c, IIpon the hnppcnlllll !If !,lIch nil l'vent, Honk !'.holl !lllvc the rlp,hl
to nsslgn Its rights ulldl'!r tln~ Ground Len!'!! <lml thlr. GuaranI)' Jlllrsuont to porngrllph 18A
ahove.
7. In the I'vP.1Il Lhllt the Cll}' IcrtJllnOl.e5.t he Groulld Lense for
"superlor ruhllc purposcs/! liS provided III pnrograrh ,12 of the Gl'IJul1d LIHlse, flnd iil.nddlllon
to on)' cOnlpensutloll which 11m Clt)' mny owe to the Borrnwcl', ollll nOl.wlthstomllng ony
Ilmllntlon utherwlse contollH~d herein, I he Cll)' !ihnll filII}' sallsfy I he enll!'c oulstllndln!:
debt owed to D.llIk by BOl'rOWl~r.
8, < Throllgh Its execullon of thl!> Gunnm!}', <lllllnot wit bSlnl1lllup, /lll}'
Inngunge in the Ground Lense 1.0 th~ COllI rn!'}', 11ll: Cit}' herell}' IICklllJwlcllHUS ll11d conflrms
that Borrower has met nil r:nndlUOlls 11l111osl:d upon It by the Cll)' wit h respect to the
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leasehold financing for which tills .GUllrllnl)' Is glvl'n, Includln!; Ully 11l1l1 nil cOIIslruclllln oml
l~qUlty Culll rlhutJrm l"t~/IUJrcIlWIltSr ;nil} I hut IIJI~ Cll)' l1ppro\'cs Ihe Ime of Bunk'5 loan
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l)rOceeds for the. IHJrpOlw:\ set fort.h In Flank's CIIIIJIrlJlIIJfHlt Icll.cr 10 Barrower dilled
Feuruary 19, 1992, IIy Its cXCC:UL\OIl hereof, I he City ackno.....ledges lIntl confirms Ihut
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Borrower Is not In dernult UtHl.l!' Ihc,GrolllHl Lensc 1111I1 t.hnt Borrower hns pcrforl\)Cd 011
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olJligatlons cUlTclltl,pdul! under the Ground Leuse Inchnlillg, hut nol llmlt ed to, dc\'clop1llcnL
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and COIlSUllctllln of certaIn WlllClltllllwl awl rclwlJ/lIl.nllvf' fildlftlcs (with tile exccll! Jon'/}f
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the middle !>c1 llJfl I , which !'hllll IlllCOIISl ructml with prm:eeds frulll the IOlln of C\'Bn dnle
Iwn~wllh}, II !iIlJlJllc:lllHllnry l'':iA lOll!' fnmlly Flolf cl!11lCr nlld (Irlvll1~ r nn!:u Imll nil other
Jmprovmnrmls re11llh'cll \JIHI..r tlm (irollllll Lense,
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!l. Nn\wllh$lllIllHIlj; Ilu)'thillj; III thr~ GUnrnnl)' III the clHltrllr)', the
elly sh~1I lm\'c thlrt}' (3QI d(lY~ rl\Il().....ln~ .....rlltc\. dCllll1lltl froUl !\;H\k tll I,ny uudcr Ih!!
Guarlllll)' ,
10, NotwlthslnndJng nll~.thln~ luthe GrlHlIJd l.i!lIsl! to thl! contrnl)"
the CIty ackno.....ll.dgr.s l\mllll\prtwc.~ that n pDrtlon Df the 10nl1 procl!l!ds shnUIl(! IJsed to
construct II middle school nnd clltrotlcc/drlvcWlI}'.
C, L1mlt~tIDIU,
1. ' A$' Wt forth In lubpnrusrujlh Ill(A) 11\,0\'0, the Clt)'.'~ guurant)'
shlll~ ti(l!mltctho Olle Million Polllln ($1,000,000.001. Thl!iflgurc !lhall lnCludidillCrC3t,
col~ectJ9~'~iS~ attorncyS' fees, etc, such that, regardlw DC wllnt BOrrowc.r"~lIlY.O~C.. die
'If CltY~(~lj~!llty:;.tin\ll\rit. exceed tile sum of One ~nlllon Dollanli prcl\'ldllll, however; thllt the
Cl,W $hall lie: fe$PDOalbll,! .for auy cUsu of collcctloil, Includlnlll'ell!onllblc .nu:urnc}'s' fees
illll(co.\U;)n.dl(!~~vl!nr.II, becomes r.l!c~sol"')' (or NCNIJ to plJrlluc.collectlo.n efl~rti..nga'rit~
the. C.lty ~
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2, T'Le.obllgMlOI\$ of the' .CltY)lcTcunder shall. riot. .coll5tluit.e Ii
se'iuirlllobllgatl.o:n or II pledge. of t1ie filII fulth and credit or the taxing POWI!1' of the CllY
of, ~h:~nWI,or II lIim .upon 1II1)' property o\\l~ed by the City, Any' ahllgat!on:o( till! City
~er :i~o.U be '0. limIted .,peclul '~\)llglitlon paynblc. ,olel)' from fii~ds 'Of,tlai CIty;
~.iCJ?dlits: ad :vol.orem ~ox r'evClluCIi, available for 6uch payment under t~le atlilllal.opere.tlng
buda'et or_tl"lI/~It>."tn the fiscal ~;ear In whlch pil)'mentls to be lnllde,. No per50n,~hlllJ hili/e
~.rlghl.r.o requlie:or.(:Ompel the le\ly Ii)' the CllY of lid valorem. tllACS on an)' property to
P:~f~py. obl1g~tloo of the City' hereunder. Nothing hereIn '!llldl be deemed a CO\le?llnt .OT
. a~cin: (jni.ity officer, agent, or emplo)'ce o~ theClly In bl~ or her Individual capocl.ty.
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