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An Ordinance of the City Commission authorizing execution of the Second Amendment (“Second Amendment”) to Amended and Restated Lease (“Lease”) between the Biltmore Hotel Limited Partnership, a Florida Limited Partnership (“Developer”) and the City of Coral Gables, a Florida Municipal Corporation (“City”) executed February 10, 1986 and amended and restated July 29, 1999 (“Original Lease”) and amended on January 2, 2001 (the “First Amendment”) amending Section 15 of the lease by revising the property insurance requirements and including a sovereign immunity provision; providing for a repealer provision, severability clause, and providing for an effective date.
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The lease of the redeveloped Biltmore Hotel was originally executed on February 10, 1986, between the City of Coral Gables (the “City”) and the Biltmore Hotel Limited Partnership (the “Developer”). On July 29, 1999, an Amended and Restated Lease was executed combining into one agreement between the City and the Developer the terms and conditions pertaining to the Biltmore Hotel Lease Agreement and the Management Agreement for Operation of the Biltmore Hotel Country Club Property (the “Original Lease”). On January 2, 2001, the City and Developer entered into a first amendment to the Original Lease for the purpose of adjusting the Fixed Rent Amortization Schedule (“First Amendment”) (the Original Lease and the First Amendment being collectively referred to as the “Lease”).
The Lease requires that the Developer secure and maintain, among other insurance requirements, property insurance coverage for all perils equal to the full actual replacement cost of buildings, contents, improvement and betterments ($215,105,000). The market for property insurance, particularly windstorm insurance, in South Florida is extremely difficult, and there are definite limitations on the amount of windstorm insurance that can be purchased by any single buyer. This is particularly true in Miami-Dade County and...
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