Professional Documents
Culture Documents
Office of the
Letter to
Mayor David
To:
City Manager
Commission No. If/2a?
..j
Date:
Dermer and
Members of the
August
City Commission
15,
City
RDP Royal
PALM D Attached please find correspondence from Union Planters notifying
Palm Hotel Limited Partnership that their loan has matured and is in default.Additionally,
attached you will find a response to said notice from RDP Royal Palm
Hotel, LP.The letter from Union Planters indicates the loan
attorney'
2003 and remains unpaid, plus default interest and unpaid
7,
Palm' s
to
August
matured July
s
fees.Royal
negotiating session
additional rent,plus sales tax.A follow- up
In
Peeblehs as been scheduled on September 4,
2003 regarding the LO!.
with Don
meantime, I will
provide
you
lcmgrl$
with
it
is
5Mc\ rar F:
received. JMG\<
Palm DefauIlNotice.
UNION
PLANTERS
BANK
August
8,
2003 Via Certified
Mail-Return
S.
Mail RDP Royal Palm
Limited Partnership
Hotel
P ADC
Hospitality Corporation 1
c/o
Attn.:R.
Donahue Peebles, President
to RDP Royal Palm
Re:
Union
Hotel
Limited
Partnership,
Florida
limited
Borrower") ( the " Loan")Gentlemen: This letter is to
partnership ( the "
you
advise
that the
Loan
matured
July
7,
2003.
The amount owing to the
Bank
is
as
follows:Principal
Default
Interest
from and
after
July 7,
Unpaid Attorneys'
Fees
99
After August
Per Diem @18%
8,
50 In the
2003 861, 200.00 6,250. 00 54,692, 449.99 26,912.
to
payable
all
sums
to
collect
event of error, the Bank reserves
Documents. Acceptance of
partial
Bank at
18, 2003 at the
Unless payment in cleared funds is received by August
no alternative
have
m.
will
p.
2:
00
by
33134
2800 Ponce de Leon
Miami, Florida
Boulevard,
full
in
but to forward this matter to our attorneys. Please make arrangements for payment
date.
By copy
R. Donahue
ra:::-
of
Miami Beach,City Attorney
City
Minsker
Bloom &
Six
Hoffman, Esq.2800
de
305H2,
1 FAX
0,
14:
2003
O!)'/ lJ/
550
Billmore
Way, Suite
Gables.
Florida
970 Coral
33134 Tel: (
305)442-4341
442Fax: 305)
(
4345 August 12.2003
Via Facsimile &US
Mail Mr. Roy
D.Tanis Senior Vice President Union Planters Bank 2800 Ponce de Leon Boulevard Coral Gables, Florida 33134
Dear Mr.Tanis: We are in receipt of your letter dated August a,which arrived in our
offices today. The action that you have taken by issuing a default notice
relative to our mortgage loan
and unjustified. It is
on
unreasonable
be.
has compfetely ignored the circumstances surrounding this
whatever its motives may
and
the
loan.
At
risk
11
project
of stating the obvious, the 9/
the
attacks
had
devast
a
t
i
n
g
a
on
the
tourism
hospitality
and
they
have yet to
terrorist
effect
industries, and
apparent that Union Planters,
subsidies.
impact
on
the
government
travel
and
These
tourism
structure and
disputes with contractors. During the construction period, as it was extended due to these
problems, we continued to pay debt service.The Hotel opened at the
commencement of the slowest portion of
the year for tourism on Miami Beach.
Once
we experienced
opened,
Town
s
significant and
Park" d/
b/a
operator,
with those
problems. The
Hotel'
1.
08/
1 FAX
15
PEEBLES
20.03 U: 0.
3/
305H2. 13.
ATLANTIC DE\ tLOP 003/ 005 Mr.Roy D.Tanis August 12,2003 Page 2 Rather
our power to
than shy away from dealing with these issues, we have done everything in
make this Hotel a success despite the challenges that we faced.As
a result, Crowne Plaza has removed and replaced substantially all of its management person el such
that the Hotel has finally begun to meet and exceed Crowne Plaza'
s
forecasted numbers. We have pursued
remedies against the general contractor to enforce our
rights in relation to construction problems. We have been in continuous negotiation with
the
ground
lessor relative
to
our
claims
lessor
including,
other things, a claim under an environmental indemnity contained in the ground lease.Through all of this
and despite all of this, we have paid Union Planters
its debt service and the Hotel is and
its payments. Not only that, this Hotel is far from being
has been current on
loan to value ratio
The
a distressed property",
"
among
debt
service.
property is
and
approximately
Dollars of cash
We are maintaining a
of
granted
management
of
on tourism
by the
terrorist attacks
and problems
with
combined to such an
continued
to
to
February,
to
be
was
the
loan
extended. We
result
understand
that
your
requirement
for
Town
Park' s
guarantee
being
of
maintained as
loan,
the net amount that you are seeking to be guarantied by Town Park is
approximately Seven Hundred One Thousand ($ 701, 000) Dollars. We have provided financial statements
to you from Town Park which evidence (and you have confirmed) that Town ParI<
has
a net worth of Fifty Seven Million ($
57, 000, 000)Dollars. This net worth
is
very
08!~
3/
305~
2n03 1~:
05
FAX
42~3~ 5
PEEBLES
ATLANTIC
DEVELOP OOV005 Mr. Roy D.Tanis
you have rejected Town Park as
unreasonable and
worth
of
would
Union
Crowne Plaza to
exceed
its
forecast
upon
that
you
reconsider the position that you
taken. And,while you are doing
have
so,
debt service
will continue
to
be paid.Sincerely,
RDP ROYAL PALM
2. 0'
1'
3/
08,'
FAX
305-1-
12.13.
15
PEEBLES
Royal
LOP
ATLANTIC DE'~
Hotel,
Palm
14l00l/005 RDP
LP FAX To:Munay
Dubin
From:
Richard
Fax:305-
A.Matlof
El7~
7782
Date:
08113103
cc:Re:o
03101:
03
S/
2.
13/
003
H:03
AL PALM
HOT' EL,LP
Biltmore
Way,
Suite 970
Coral Gables,
Mr.Roy D.
Senior Vice President Union Planters Bank 2800 Ponce
de Leon Boulevard Coral Gables. Florida 33134
Dear Mr.Tanis: We are in receipt of your letter dated August 8,which arrived in our
offices today. The action that you have taken by issuing a default notice
relative to our mortgage loan on the Royal Palm Hotel is unreasonable
Tanis
and
unjustified. It is
whatever
project
terrorist attacks had a
be,
has completely
the risk of
stating
the
ignored
the
circumstances
surrounding
this
the 9/
11
industries, and they have yet to
obvious,
devastating
was
structure and disputes with contractors. During the construction period, as it was extended due to these
problems, we continued to pay debt service. The Hotel opened at the
commencement of the slowest portion of
the year for tourism on Miami Beach.
Once
opened. we experienced significant and substantial
problems with the Hotel operator, Town Park Hotel Corporation ("
Town Park" d/
b/a Crowne
"
s
Plaza"). You
are
fully
problems. The
Hotel'
03
1:
1-
13/2003
08/
05H2-
FAX ;)
DE'~
LOP
relative
a claim under an
environmental
value
The loan
and property is
000) Dollars
approximately
of
We are maintaining
ground
sixty- five
with approximately
percent ( 65%)
cash equity
your
institution,
in
to
cover
months' of debt
4)
four (
service payments.
coverage,
management
of
the
pay
required coverage was not achieved. But,we continued to
letter agreements
of
a
have
series
We
into
debt service.
entered
and which contemplate extensions to February, 2006 provided that
providing for short extensions
acceptable levels of debt service coverage are achieved. We strongly believe that those levels
can now be
security
that you
are
amount
Seven Hundred
Park which evidence ( and you have confirmed) that Town Park has a net worth
very substantial
of Fifty Seven Million ($57. 000, 000) Dollars. This net worth is
to
relative
Town
03
13/2003 1~:
08/
2~3~
305~~
5
PEEBLES
FAX
ATLANTIC
Page
3
rejection is
of
the
view
to be guarantied.
s Fifty
Park'
service. Despite Town
are
insisting
worth, you
that its parent.
guarantor
and the
amount
And we continue to
pay
debt
Dollars net
57, 000. 000)
Seven Million ($
to
your
now
canceled it.
the amount.
You
stated
your position. We
would not be productive and that you were not going to change
asking for deferral
not
are
loan
amount
.
We
in
a
reduction
the
are not asking for
payments. What we are asking for is for Union Planters
any
of
abatement
or
responsibly as an important
to act reasona- bly under the circumstances and to act
are asking that
We
member of this community which is so dependent on tourism.
Union Planters comply with our last letter agreement and accept as security
a
the guaranty of Town Park,
for Seven Hundred One Thousand 701, 000)Dollars
such
a call
Plaza
to
exceed
guaranty. Based
We
ask
that you reconsider the position
you have taken.And, while you
that
are
doing
debt
so,
ROYAL
3/
20.
0314: 04
1,
0&/
FAX
LOP
Beach,
ATLANTIC DEv~
of Miami
City
550 Biltmore
Way
Suite 970 Coral
Gables,
FL 33134
442305)
4342
Fax: (
305)
442-4345
Corp.
Peebles
Atlantic Development
03
Memo o W
3/
01
Re:
G'
Date:
8/
13/
03
CC:
A.Matlof
P ROY~ L ~ ALM
RI?
HOTEL, L.P.
NO.
2801 REFERENCE
DESCRIPTION INVOICE
DATE INVOICE
AMOUNT DISCOUNT
TAKEN AMOUNT
0308
RP-
PAID
8/
1/
CHECK
2003
l~
l.
DATE CHECK
52 11,
' :
291.
03 41,
August
Agency 41,
$
291.
ROYAL PALM
52 RDP
HOTEL, L.
Miami
2ND
ST.,
100
P.
STE.
S.E.
4650
BRICKELL
PLANTERS
BANK MAIN
OFFICE.
1221
8411670 2801 I
AVE. MIAMI, FLORIDA 33131 63CHECK NO. 2801 Aug
003 41~
R~~
52 1l
MIAMI,
FL
33131
Iu
s
UNION
a 1: