Title
A Resolution Of The City Commission Of The City Of Hollywood, Florida, Granting Consent To The Transfer By MVHF, LLC To Happy Hour LLC Of MVHF, LLC’S Interest In The Margaritaville Beach Resort Hotel.
Strategic Plan Focus
Economic Vitality
Body
Staff Recommends: Approval of the attached Resolution.
Explanation:
The Seller, MVHF, LLC, and the City entered into that certain Amended and Restated Development Agreement and Ground Lease dated as of June 21, 2013 (the “Agreement”).
The Seller has notified the City that the indirect owners of the Seller have entered into an Equity Purchase Agreement dated June 22, 2021, pursuant to which, at the closing of the transactions contemplated in the Purchase Agreement, Seller will sell, indirectly, the membership interests of Seller to Happy Hour LLC, a Delaware Limited Liability Company, whose upstream parent company is Pebblebrook Hotel, L.P., a Delaware Limited Liability Company (“Buyer”), and pursuant to Article V of the Agreement, the Seller has requested the City’s consent to such transfer. The Agreement expressly requires, as a part of the City’s consent to a transfer under Article V of the Agreement, the City’s approval of the transferee as an Acceptable Owner, as defined in Exhibit “A” attached to the Agreement.
Fiscal Impact:
There is no immediate fiscal impact to the City with this action. A future payment of Transaction Rent, equal to 0.06% of net sale proceeds, to the City is expected.
Recommended for inclusion on the agenda by:
Douglas R. Gonzales, City Attorney
Gus Zambrano, Assistant City Manager/Sustainable Development