Strategic Advisory Group assists with the negotiation and documentation of real estate and hospitality transactions. Our role is often to coordinate the completion of the numerous documents that must be negotiated among owners, public entities, developers, contractors, designers, operators, franshisors, lenders and underwriters.
SAG helps partners agree upon conceptual business terms and continues with negotiating the definitive agreements. These agreements include organizational and operating agreements addressing partner voting rights, roles and responsibilities, profit and loss allocation, tax considerations, risk allocation, debt and equity commitments, capital call provisions, management structure, performance measures, buy-out provisions, termination rights and milestones.
Public-Private Partnership Agreements
SAG has unique expertise in bringing together public and private resources to create successful projects. Our involvement begins with helping the partners agree upon conceptual business terms and continues with negotiating the definitive agreements. These agreements address both public and private responsibilities, risk allocation, public funding, private debt and equity commitments, project management, performance measures, termination rights, and milestones.
SAG often quartebacks the negotiation of the various agreements associated with the development of both single asset developments and complex mixed use projects. Our experience encompasses negotiating initial programming documentation, the conceptual memorandum of understanding, development agreements, design agreement, construction agreements and other consultant/vendor agreements.
Bond Finance Agreements
SAG helps negotiate the documents related to bond financings, including the official statement, trust indenture, loan agreement, entity agreements (articles of incorporation and by-laws), underwriter agreement and other transaction related agreements.
Public Facility Management Contracts
SAG assists owners with negotiating management contracts for public facilities, such as convention centers, civic centers, stadiums, arenas, performing arts centers.
Hotel Management Contracts
SAG represents owners with negoriating and renegotiating hotel, conference center and resort management contracts, including the unique aspects of Qualified Management Contracts consistent with IRS Revenue Procedure 97-13. These negotiations typically include agreements that address technical services, key money, working capital loan, pre-opening and other related agreeements.
Room Block Agreements
SAG was a pioneer in developing a comprehensive room block agreement that has become the template throughout the industry. The agreement outlines a hotel’s obligation to commit rooms for city-wide conventions in exchange for public financial support related to the hotel’s development. Beginnng with the agreement related to the Westin Charlotte, SAG has negotiated room block agreements in over ten cities, including Washington, DC, Houston, and Raleigh. The agreeements address number of rooms, booking window, monthly booking caps, day of week parameters, release provisions, rate formulas, hotel maintenance standards, performance measures, default remedies, and termination rights.