Tee Center Reciprocal Easement Agreement Issues at 11/2/2012

Primary Issues 1. This agreement is tied to the management agreements and runs in perpetuity. 2. Augusta has to repair and replace the Tee property in Perpetuity 3. Augusta has to buy replacement coverage insurance in perpetuity. 4. If the Tee is destroyed, Augusta can raze it, but in such event there is little chance that the hotels survive. 5. Augusta has to maintain the Tee to Marriott Standards in Perpetuity.
Page by Page Primary and Secondary Issues Page 1 The CORE was NOT adopted 12/7/2009. The motion then was for the Mayor to execute the CORE when it was ready. This never got done. A GORA request by Lori Davis in 6/2012 was responded to by the Augusta Law Department that Augusta did not have the CORE as executed by the mayor. Page 3 The Kitchen is bundled into the Conference Center 50 year lease. The Marriott Standard was cited for the $400,000 HVAC change order during construction of the Tee Center. The Standard can impose unknown and unlimited costs? Page 4 The Term is in Perpetuity! Page 5 "After the expiration or earlier termination of the Management Agreement, City shall continue to maintain the TEE Center in accordance with the Standard during the Term of this Agreement," Since the term of the agreement is in perpetuity, Augusta cannot demolish the Tee Center and has to maintain it after the Management Agreement expires? Page 6 Augusta has to keep property insurance coverage at replacement value for the Term of the Agreement which is in PERPETUITY. Page 7 Page 1 of 2

Tee Center Reciprocal Easement Agreement Issues at 11/2/2012

No mention of the Developer providing property insurance. Does the Developer, ARLLC, have to keep replacement value property insurance on the integral Hotels? Why not?

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