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MEMORANDUM OF UNDERSTANDING - CLEARWATER MARINE AQUARIUM NEW FACILITY PROJECTMEMORANDUM OF UNDERSTANDING Clearwater Marine Aquarium New Facility Project THIS MEMORANDUM OF UNDERSTANDING IS INTENDED SOLELY AS A PRELIMINARY EXPRESSION OF THE GENERAL INTENTION OF THE PARTIES. THE PARTIES INTEND THAT NEITHER SHALL HAVE ANY CONTRACTUAL OBLIGATIONS TO THE OTHER WITH RESPECT TO THE MATTERS REFERRED TO HEREIN UNLESS AND UNTIL DEFINITIVE AGREEMENTS HAVE BEEN FULLY EXECUTED AND DELIVERED BY THE PARTIES. THE PARTIES AGREE THAT THIS MEMORANDUM OF UNDERSTANDING IS NOT INTENDED TO CREATE ANY AGREEMENT OR OBLIGATION BY ANY OF THE PARTIES TO ENTER INTO DEFINITIVE AGREEMENTS. Parties: Clearwater Marine Aquarium, Inc. ( "CMA ") Property: Project: The City of Clearwater, Florida (the "City ") 112 S. Osceola Ave. Clearwater, FL 33756, including the property located below the bluff, generally located west of Osceola Ave., east of the unimproved Pierce Boulevard right -of -way, south of Cleveland St. and north of Pierce St., ( "City Property ") as more particularly described in Exhibit "A" attached hereto. CMA proposes to construct an aquarium on the City Property. The parking structure required to support the aquarium will be located off -site as provided herein. The aquarium will consist of the following: 1) Level 1 — Park Level: To include an Everglade Exhibit, Manatee Exhibit, Outside Otter Exhibit, Kids Area, Classrooms, and support and ancillary facilities. 2) Level 2 — Exhibits: To include a Cafe Seating Area, various Kiosks, Ticketing, Gift Shop, Large Interactive Touch Tank, Sea Horse Exhibit, Jelly Fish Exhibit, Coral Reef Exhibit, Dolphin Stadium with Exhibits, Marine Rescue Exhibit, Octopus Exhibit, Turtle Tank, Classrooms, 4D Theater, and other ancillary facilities. 3) Level 3 — Upper Level: To include a Roof Top Deck, Coral Reef Exhibit, Community Center and Multifunction Rooms, Educational Research Kiosks, 2D and 4D Theaters, Movie Prop Exhibit, Catering Kitchen, Restrooms, and Administrative Offices. Responsibilities The City and CMA agree to the following: and Conditions: 1. The City is required to obtain voter approval in order to lease the property for an initial term of 60 years for the Project. The City agrees to hold such referendum on November 5, 2013. The City has drafted the required charter amendment and referendum question to put before the voters of the City. CMA agrees to pay all costs of the referendum. 2. CMA shall be responsible for the design, construction, maintenance and funding of the Project. CMA shall prepare all required applications, site plan drawings, building permits and applications for approval by the City and all other required agencies. The City agrees to facilitate, coordinate the review of, and process the foregoing City applications on an expedited basis. 3. CMA intends to finance the Project through a combination of private gifts and grants, government grants and funding and through third-party financing. No general fund revenues of the City will be expended on the design, construction, operation, or maintenance of the new aquarium. In the event of default, CMA's lender will be limited to changing the management of the new aquarium and assuming all of CMA's rights and obligations for the remainder of the lease or abandoning the City Property and disassembling the building and collecting CMA's assets. The City will have no obligation or liability in the event CMA defaults on any of its loans or obligations. CMA shall have all funds necessary for the construction of the Project committed by no later than August 1, 2016. 4. Prior to commencing construction, CMA shall obtain a payment and performance bond covering the hard costs of construction under the general contract, which bond shall name the City as well as any third party construction lender as dual obligees. 5. By no later than June 1, 2015 CMA and the City shall agree to the terms of the lease for the City Property. The City agrees to vacate the City Property upon 180 days notice from CMA and verification by the City that CMA has the necessary financing to commence construction. CMA shall pay the City $.50 per ticket of admissions revenue actually received by CMA not to exceed $7,500,000.00 plus accrued interest as provided below in order to provide for the replacement of the City Hall ( "City Hall Payment "). Principle payment will be made quarterly based on paid ticket sales for the previous quarter. Following the City's funding of the City Hall capital project, but not before the opening of the new aquarium, interest will accrue and will be paid annually in arrears by CMA based on the actual cost for a new City Hall not to exceed $7.5 million. The annual interest rate will be set at the beginning day of the lease period and reset at each anniversary date based on the interest rate consistent with the City's cash pool rate of return rounded to the nearest 10th of a percent. The annual interest rate will be applied to the average annual principle and accrued interest balance of CMA's obligation of the preceding year until the actual cost of the new City 1G M13-9100-033/130556/41 2 Hall or $7.5 million, whichever is less is recaptured by the City. Following full payment of the City Hall Payment, CMA shall pay an annual rent payment of $250,000.00 per year to the City. 6. CMA will pay for relocation of all easements. City will cooperate in vacating and relocating easements. 7. CMA will obtain all appropriate permits including consent from DOT for the location of water intake and discharge for the facility. City will cooperate with CMA's efforts to obtain permits including consent from DOT for the location of water intake and discharge for the facility. 8. The City will be responsible for asbestos removal from the City Hall prior to the demolition of the structure by CMA. CMA shall be responsible for demolition and all associated costs other than asbestos removal. At this time there are no other known environmental issues associated with the site. The City is responsible for all other remediation of existing environmental costs associated with the City Property. CMA shall be responsible for any environmental issue caused by its tenancy. 9. CMA shall be responsible for acquiring a mutually agreeable parcel for the construction of a public parking garage ( "Parking Garage Parcel "). CMA shall have the option to construct, operate, and maintain a parking garage and any additional permissible uses on the Parking Garage Parcel subject to City Code requirements. 10. Alternatively, CMA may convey the Parking Garage Parcel to the City for the City to construct, operate, and maintain a parking garage and any additional uses the City deems appropriate. In the event CMA chooses to convey the Parking Garage Parcel to the City for the construction, operation, and maintenance of a parking garage, the City would construct operate and maintain a public parking garage. The City would be responsible for all costs of operation and shall retain all revenue generated from the parking garage. The parking garage rate would be a commercially reasonable rate determined by City Council. 11. CMA shall be responsible for reimbursing the City for the replacement costs of the existing tennis courts in the amount of $75,000.00 per court. The location of the replacement tennis courts shall be the discretion of the City. 12. The City shall be responsible for the improvement of the Pierce Street extension to Drew Street and associated improvements to Cleveland Street. 13. If the November 5, 2013 referendum is approved by the voters, the City will consider extending CMA's lease of the Harborview Center from April. 2014 until 60 days after the grand opening of the new aquarium. If the EG M13-9100-033/130556/41 3 November 5, 2013 referendum is not approved by the voters, the City may consider extending CMA's lease of the Harborview Center through April 2016. General CMA and the City shall work together in good faith to enter into definitive Provisions: agreements for the Project, which may include lease agreement, development agreement or CRA development agreement. Attest: Agreed and Accepted: THE CITY OF CLEARWATER, FLORIDA By: ' 4 €4)(f crtktl o1 Title: Mayor By:, 1 a tf., Title: City Clerk Approve form: By: Name: Pamela K. Akin Title: City Attorney Agreed and Accepted: Clearwat ne Arrium, Inc. By: tisb acs Name. Title: f G M 13- 9100 - 033/130556/41 4 Exhibit "A" The Property [G M13-9100-033/130556/41 5 Legend Boundary Sketch • Found Iron Rod or Pipe Clearwater Aquarium OO Found P.K. Nail Iron Rod & Disk O Set t 5/ 8" Capped Section 16 f Township 29 South) Range 15 East 5 / SCIR Set 5/8" Capped Iron Rod Pinellas County, Florida P.S.M. Professional Surveyor and Mapper F.D.O.T. Florida Department of Transportation Id. Identification Description: (As written by SurvTech Solutions) A parcel of land lying and being in Section 16, Township 29 South, Range 15 East, Pinellas County, Florida, being more particularly described os follows: Begin at the intersection of existing West right —of —way boundary of South Osceola Avenue and the existing North right —of —way boundary of Pierce Street; thence coincident with said North right —of —way boundary, 5 89'09'47" W a distance of 672.92 feet to a point coincident with Easterly right —of —way Una Information: Field Item boundary of Pierce Street per Florida Deportment of Transportation Maps W.P. /Seg. #257093, sold point being on a non— tangent curve concave to the Northeast, said curve having a radius of 980.00 feet, a delta angle of 00'54'12" and being subtended by a chord bearing N 27'12'24" W for a distance of 15.45 feet; thence departing said North right —of —way boundary, coincident with said Easterly right —of —way boundary for the following five (5) courses: 1) coincident with the arc of said curve a distance of 15.45 feet; 2) thence N 15'14'02" W a distance of 107.02 feet to a point coincident with o non — tangent curve concave to the West, said curve having a radius of 1051.39 feet, a delta angle of 07'05'08" and being subtended by o chord bearing N 18'51'36" W for a distance of 129.94 feet; 3) thence coincident with the arc of said curve a distance of 130.02 feet to a point of reverse curvature with o curve concave to the East, said curve having a radius of 594.91 feet, a delta angle of LINE BEARING DISTANCE LINE BEARING DISTANCE / L1 N 1614'02" W 107.02' L2 N 00'47'57" E 54.09' o \ L3 5 88'29'25" E 113.12' < n " E "' 1 q c O co p_ 8 1 t u u O 8 1 r2 °a N n d. . d co L 0 O. C3 E � i2 ro u 0 w o m N L * o I P b 0 W vi " a f-- . y > L4 N 66'09'43" E 107.52' L5 S 01'35'12" W 37.06' L6 S 88'36'07" E 23.61' L7 S 00'12'33" W 56.00' 06'34'20" and being subtended by o chord bearing N 02'31'58" W for o distance of 68.20 feet; 4) thence coincident with the arc of said curve a distance of 68.24 feet; 5) thence N 00'47'57" E o distance of 54.09 feet; thence deporting said Easterly right —of —way boundary, S 88'29'25" E a distance of 113.12 feet; thence N 66'09'43" E a distance of 107.52 feet; thence S 88'29'25" E a distonce of 183.98 feet to a point coincident with the West boundary of lands described in Official Records Book Curve Interaction: Field 14700, Poge 1498 of the Public records of Pinellas County, Florida; thence coincident with said West CURVE RADIUS ARC LENGTH CHORD BEARING CHORD LENGTH DELTA ANGLE TANGENT boundary the following three (3) courses: 1) S 01'35'12" W a distance of 37.06 feet; 2) thence C1 980.00' 15.45' N 27'12'24" W 15.45' 0'54'12` 7.73' S 88'36'07" E a distance of 23.61 feet; 3) thence 5 00'12'33" W o distance of 56.00 feet to a point lands; thence departing West boundory coincident with C2 1051.39' 130.02' N 18'51'36" W 129.94' 7'05'08" 65.09' coincident with the South boundary of said said 334.80 feet to the West C3 594.91' 68.24' N 02'31'58" W 68.20' 6'34'20" 34.16' said South boundary, $ 88'24'39" E a distance of a point coincident with right —of —way boundary of South Osceola Avenue; thence deporting said South boundary coincident with said West right —of —way boundary, S 00'01'07" W a distance of 285.08 feet to the POINT OF BEGINNING. Contoining an area of 246757.45 square feet, 5.665 acres, more or less. Certifications' The Ash Group, Inc. Notes Surveyor's Y Stacy L. Brown P.S.M. No. 6516 SurvTech Solutions, Inc. L.B. No. 7340 cZ o i c o— 11 1.) Not valid without the signature and original roised seal of a Florida Licensed * *Not Valid Without The Signature And Surveyor and Mapper. The Original Raised Seal 01 A Florida �� SURVEYING TODAY Mix TECHNOLOGY Florida West State Plane 2.) The bearing structure for this survey is based on a grid licensed Surveyor And Mapper** J \/ bearing of 5 00'01'07" W for the West Right —of —way Boundary of South Osceola Avenue, also being the EastBoundary of Subject Property. 3.) The horizontal datum utilized for this project is NAD 1983 Florida West Zone, U.S. Survey Feet. 4.) Sketch has been performed without benefit of title policy or abstract. Therefore surveyor can make no guarantees to ownership or encumbrances. J /// Boundary Sketch `�"'J PREPARED FOR: Clearwater Aquarium J // AaRedBy:3Bmwa AoJedNo.: 20130056 DrteDnfted 4/12713 Thum 1.4 Fic1dDet«N/A ReviticaDakc F Boo /has: N/A DrawingName:20130056 Simtch \ ApFro By: &Bown scale: 1 "80' SHEET: 1 OF 2 Cleveland Street 1 oundary Detail Sheet Public Right -of -way Width Varies (Asphalt Pavement) r �- N South Right -of -way Boundary of Cleveland Street 1 Remainder of Paresi //: 'i 16- 29-15 - 20368- 001 -0040 f -- .- _._........ cd > Easterly Right -of -way N o ,oundary of Pierce Boulevord j 6 p CO & SCIR s 8829'25. 4` 183.98' (� ff- Po /' 16 -29 -1 5614 -IIi0 -0000 1 Wot.r• Association __........__ ........._._ f kia ........-- -- ._...._...___...... _. 331 CNwiand St __ ......_ ...... I Ckwrwoter, FL 33755 -4051 I West Boundary of lands described �- in OR Book 14700, Page 1498 O SCIR Lot 2 Found 3/4" Capped Iron Pipe (Illegible) 1 II r a I - 0 N , , I Ua if Found 5/8" Capped Iron Rod "F.D.O.T." ,a Found 5/8" Copped Iron Rod "F.D.O.T." SCIR SCIR (ice SCIR A Portion of Parcel /: 16- 29- 15- 20356 - 001 -0040 5 6e24'39• E s34.6o' (F) Found 3/4" Capped Iron Pipe (Illegible) C 7 v iti > o o Q 0 ' y a • N o, ., y = O o a. $ £ a" c, ( g CO 3 m ou, « N O m a E r `� $ g w ', > 0 w ce 47, ° s nn d �+ S- t M Z g 11 ~ �o - Z $ O a ; N o r rg -' r a g 9 a = _ ° p U vi m > N (i) o n E • Total Acreage Fund 3/4" Capped N. South Bounds of lands described 246757.45 Square Fest Boundary 5665 Aare. lion Pipe (Illegible) 3 in OR Book 14700, Page 1498 Lot — _....._ N Block �' Easterly Right -of -way Boundary of Pierce Boulevard per FDOT Plat Book 1, Pope 87 Map W.P. Item /Seg. # 257093 ,� Lot G NA West Right -of -way Boundary ', % y V of South Osceola Avenue � 1 A ' UUPROVD ENT5 NOT SHOWN** 0 .5- °G Found 5/8" Copped "F.D.O.T." -73 o � i e ° c G Iron Rod , s ° N� Point of Beginning '! a 0,.. Found 5/8" Capped Lot 5 Iron Rod "F.D.O.T." Found PK Nail North Right -of -way It Disk "F. os." a� Boundary of Pierce Street S 89'09'47' W 672.92' (F) Pierce Street Found PK Noll tit Disk "F.D.O.T." Public Right -of -way width varies (Asphalt Pavement) / // Boundary Sketch \\ PREPARED FOR: \ Clearwater Aquarium / PROJECTNO..: 20130016 PHA38.•IA \\ PlBLLODATx•N/A _.... // SHEET: 2 OF 2