1 

LAW OFFICES OF MELAND RUSSIN & BUDWICK, P.A. 

3200 SOUTHEAST FINANCIAL CENTER, 200 SOUTH BISCAYNE BOULEVARD, MIAMI, FLORIDA 33131 • TELEPHONE (305) 358-6363 

UNITED STATES BANKRUPTCY COURT 

SOUTHERN DISTRICT OF FLORIDA 

Fort Lauderdale Division 

www.flsb.uscourts.gov

In re: 

COSTA HOLLYWOOD PROPERTY OWNER, LLC,1

 Case No. 19-22483-JKO 

Chapter 11 

 Debtor. 

 / 

EXPEDITED MOTION OF THE DEBTOR FOR INTERIM 

AND FINAL ORDERS (I) AUTHORIZING DEBTOR TO (A) USE 

CASH COLLATERAL NUNC PRO TUNC TO SEPTEMBER 19, 2019 

(B) OBTAIN POSTPETITION FINANCING FROM 777 N. OCEAN DRIVE, LLC (II) 

GRANTING ADEQUATE PROTECTION AND (III) SCHEDULING FINAL HEARING 

(Expedited Hearing Requested Pursuant L.R. 9013-1(F) on October 17, 2019) 

Basis for Requested Expedited Hearing 

The Debtor respectfully requests that the Court conduct a hearing on this 

Motion consistent with Local Rule 9013-1(F). The Debtor seeks to continue to 

operate its business in the ordinary course, to preserve jobs, the value of its 

estate and to facilitate an orderly sale process for the Debtor’s property as a 

going concern. Absent the ability to use Cash Collateral, the Debtor’s 

operations will come to a halt and creditors and parties in interest will be 

severely prejudiced. In contrast, approval of the use of Cash Collateral on an 

interim basis will enable the Debtor to continue its operations and allow for an 

orderly reorganization. The current Interim Cash Collateral Budget expires on 

October 18, 2019. The Debtor respectfully requests that the Court waive the 

provisions of Local Rule 9075-1 (B), which requires an affirmative statement 

that a bona fide effort was made in order to resolve the issues raised in this 

Motion, as the relief requested herein is urgent in nature and does not lend itself 

to advance resolution. 

 Costa Hollywood Property Owner, LLC., (“Costa” or “Debtor”), by and through its 

proposed undersigned counsel, requests this Court, on an expedited basis, enter a second interim 

order (“Second Interim Cash Collateral Order”) in the form attached hereto as Exhibit A and 

final order (“Final Order,” together with the Interim Order, “Cash Collateral Order”) 

 

1

 The Debtor’s current mailing address is 777 North Ocean Drive, Hollywood, FL 33019. The Debtor’s EIN is 47-

4883778. 

Case 19-22483-AJC Doc 97 Filed 10/15/19 Page 1 of 33
2 

LAW OFFICES OF MELAND RUSSIN & BUDWICK, P.A. 

3200 SOUTHEAST FINANCIAL CENTER, 200 SOUTH BISCAYNE BOULEVARD, MIAMI, FLORIDA 33131 • TELEPHONE (305) 358-6363 

(i) authorizing the Debtor to (a) utilize cash collateral on an interim basis nunc pro tunc to 

September 19, 2019, (b) obtain postpetition financing from 777 North Ocean Drive, LLC 

(“Secured Lender”) to cover any shortfalls in the Debtor’s attached budget, (ii) granting 

adequate protection therewith, and (iii) scheduling an expedited interim hearing for October 17, 

2019 and final hearing on the Motion pursuant to 11 U.S.C. §§ 361, 362, 363, 364 542 and 552, 

Fed. R. Bankr.P. 4001(b) and (d), 6003 and 9014, Local Rules 4001-2, 9013-1(F) and (G) and 

9075-1 and this Court’s Guidelines for Motions Seeking Authority to Use Cash Collateral and 

Motions Seeking Approval of Postpetition Financing (“Guidelines”). In support of this Motion 

(“Motion”), the Debtor respectfully states as follows: 

JURISDICTION 

1. This Court has jurisdiction over this Motion pursuant to 28 U.S.C. §§ 157(b) and 

1334. This is a core proceeding under 28 U.S.C. § 157(b). Venue of this Motion is proper under 

28 U.S.C. § 1408 and 1409. 

2. The statutory predicates for the relief requested herein are 11 U.S.C. §§ 105 and 

361, 362, 363, 364 and 552 of 11 U.S.C. § 101 et seq. (the "Bankruptcy Code") and Rules 

4001(b) and (d), 6003 and 9014 of the Federal Rules of Bankruptcy Procedure (the "Bankruptcy 

Rules") and Local Rules 4001-2 and 9013-1(F) and (G). 

BACKGROUND

3. On September 19, 2019 (the “Petition Date”), the Debtor filed a voluntary 

petition for relief under Chapter 11 of the Bankruptcy Code. 

4. On September 27, 2019, the Debtor filed its Amended Expedited Motion of the 

Debtor for Interim (1 month) Use of Cash Collateral Nunc Pro Tunc to September 19, 2019 (the 

“First Cash Collateral Motion”) [ECF No. 23]. On October 7, 2019, the Court entered its 

Case 19-22483-AJC Doc 97 Filed 10/15/19 Page 2 of 33
3 

LAW OFFICES OF MELAND RUSSIN & BUDWICK, P.A. 

3200 SOUTHEAST FINANCIAL CENTER, 200 SOUTH BISCAYNE BOULEVARD, MIAMI, FLORIDA 33131 • TELEPHONE (305) 358-6363 

Interim Order Granting Debtor’s Amended Expedited Motion for Interim (1 Month) Use of Cash 

Collateral Nunc Pro Tunc to September 19, 2019 (the “First Interim Cash Collateral Order”) 

[ECF No. 69], pursuant to which the Court approved the Debtor’s use of available cash collateral 

pursuant to a budget that expires on October 18, 2019. 

5. The Debtor continues to manage and operate its business as a debtor in possession 

pursuant to §§ 1107 and 1108 of the Bankruptcy Code. No trustee or examiner has been 

appointed. 

6. The Debtor is a Delaware limited liability company authorized to do business in 

Florida which developed a condominium hotel project commonly known as “Costa Hollywood 

Beach Resort” located at 777 North Ocean Drive, in Hollywood, Florida (the “Condo-Hotel”). 

The Condo-Hotel contains 307 residential units, 15 commercial units, and 1 Shared Facilities 

Unit and related improvements. The Debtor (i) owns 43 residential units, 9 commercial units and 

1 Shared Facilities Unit (ii) controls the Condominium Association2

 and shares common 

operating expenses with the Condominium Association,3

 and (iii) has established a rental 

management program pursuant to which the Debtor acts as the rental agent for “Third Party 

Controlled Units”4

 that are under contract for the “Rental Management Program” from time to 

time, and for the Owner Controlled Units. All units within the Rental Management Program are 

operated as hotel rooms in the Costa Hollywood Beach Resort.

7. The Debtor’s assets are subject to liens (“Senior Liens”) on the Debtor’s real 

property, accounts receivable, cash and cash equivalents approximately in the amount of 

 

2

 Costa Hollywood Condominium Association, Inc. The Debtor is the developer, and the Condominium Association 

has not been turned over to the condominium owners. 

3

 The Condominium Association has its own budget that is paid for by all condominium unit owners, including the 

Debtor as developer. Debtor allows the owners the right to use the “Shared Facilities,” and condominium unit 

owners pay an assessment to use the Shared Facilities. 

4

 The condominium units owned or controlled by third parties (and which are not owned by Owner), from time to 

time. 

Case 19-22483-AJC Doc 97 Filed 10/15/19 Page 3 of 33
4 

LAW OFFICES OF MELAND RUSSIN & BUDWICK, P.A. 

3200 SOUTHEAST FINANCIAL CENTER, 200 SOUTH BISCAYNE BOULEVARD, MIAMI, FLORIDA 33131 • TELEPHONE (305) 358-6363 

$47,098,757.81 plus interest in favor of the Secured Lender. The Secured Lender’s collateral is 

valued at approximately $50,525,000. In addition, certain contractors have encumbered the real 

property with approximately $4 million in construction liens (“Junior Liens”). While 

acknowledging the validity of the Senior Liens, the Debtor reserves the right to challenge the 

validity of the Junior Liens as this case progresses. 

SUMMARY OF RELIEF REQUESTED 

(In Accordance With the Court's Guidelines (CG-7)) 

8. Pursuant to Bankruptcy Rule 4001(b)(1)(B), the Debtor seeks entry of the 

proposed Second Interim Cash Collateral Order in the form attached hereto as Exhibit A, as well 

as the Final Order, authorizing the Debtor to (i) use Cash Collateral (as defined below) pursuant 

to section 363(c) of the Bankruptcy Code in accordance with the budget attached hereto as 

Exhibit B (the "Budget"), which use shall include a professional fee carve-out as detailed below; 

and (ii) obtain postpetition financing from the Secured Lender to cover any shortfalls in the 

Budget pursuant section 364 of the Bankruptcy Code. 

9. In addition, the Debtor requests that the Court schedule an expedited interim and 

final hearing to consider the Motion. 

PREPETITION SECURED INDEBTEDNESS 

Secured Loan from 777 N. Ocean Drive, LLC 

10. On or about July 1, 2016, the Debtor obtained a loan from Secured Lender in the 

original principal sum of up to $70,000,000 (the “Loan”). The Loan is evidenced by an 

Amended and Restated Construction Loan Note dated July 1, 2016, executed by the Debtor in 

favor of Secured Lender (the “Note”) in the principal sum of up to $70,000,000. 

Case 19-22483-AJC Doc 97 Filed 10/15/19 Page 4 of 33
5 

LAW OFFICES OF MELAND RUSSIN & BUDWICK, P.A. 

3200 SOUTHEAST FINANCIAL CENTER, 200 SOUTH BISCAYNE BOULEVARD, MIAMI, FLORIDA 33131 • TELEPHONE (305) 358-6363 

11. As security for the repayment of the Note, Debtor executed and delivered to 

Secured Lender a Certificate of Future Advance and Amended and Restated Mortgage and 

Security Agreement (“Mortgage”) which was recorded on July 20, 2016. 

12. Between August 22, 2017 and September 30, 2018, the Debtor and the Secured 

Lender entered into three successive forbearance agreements (collectively, the “Forbearance 

Agreements”) with the final forbearance agreement being the Third Amended Forbearance 

Agreement (the “Final Forbearance Agreement”) dated September 30, 2018. 

13. Pursuant to the Mortgage, the Debtor granted the Secured Lender a continuing 

security interest in and lien on, among other things, all of the Debtor’s real and personal property 

and fixtures which it now owns or are in existence or hereafter acquired or created, wherever 

located, of whatever kind and description, tangible or intangible, including without limitation, all 

money, instruments, documents, deposit accounts, chattel paper, accounts and general 

intangibles, as these terms are defined in the Uniform Commercial Code (“Collateral”). 

14. As of the Petition Date, the Debtor owes the Secured Lender approximately 

$47,098,757.81 plus interest. The Collateral is valued at approximately $50,525,000. 

COLLATERAL 

15. The Debtor’s assets which include, inter alia, cash on hand and on deposit in bank 

accounts, accounts receivable, automobiles, furniture, equipment and supplies is valued at 

approximately $50,525,000, subject to appraisal. 

Case 19-22483-AJC Doc 97 Filed 10/15/19 Page 5 of 33
6 

LAW OFFICES OF MELAND RUSSIN & BUDWICK, P.A. 

3200 SOUTHEAST FINANCIAL CENTER, 200 SOUTH BISCAYNE BOULEVARD, MIAMI, FLORIDA 33131 • TELEPHONE (305) 358-6363 

RELIEF REQUESTED 

A. The Debtor's Need for Use of Cash Collateral and Secured Postpetition Financing 

16. By this Motion the Debtor seeks the entry of an interim order authorizing use of 

Cash Collateral, as that term is defined in 11 U.S.C. § 363(a) and authority to obtain secured 

post-petition financing (“Postpetition Financing”) pursuant to 11 U.S.C. § 364. 

17. Need for Postpetition Financing. Absent the ability to use Cash Collateral and 

obtain the secured Postpetition Financing to cover shortfalls in the operating budget, which is to 

be provided by the Secured Lender, the Debtor will be unable to successfully operate its 

business, propose a plan and proceed to sell substantially all of their assets as a going concern, 

all to the detriment of the Debtor, its estate, its creditors, and other parties in interest. The Debtor 

does not have sufficient working capital and other financing available to fund its operating 

business, maintain estate property, and administer its cases without the proposed Postpetition 

Financing. In contrast, approval of the use of Cash Collateral on an interim basis and the 

Postpetition Financing will enable the Debtor to continue its operations and allow for an orderly 

sale process for the Property. 

18. In view of the foregoing, the relief sought herein is immediate, necessary and 

essential in order for the Debtor to continue to meet its financial obligations to its employees, 

vendors and other creditors, and to maintain its operations and property so as to maximize the 

value of the estate. For these same reasons, the relief sought herein is in the best interests of the 

Debtor and the estate. 

19. Specifically, the Debtor seeks to use the Cash Collateral for those purposes and in 

the amounts set forth in the budget which is attached hereto as Exhibit B (the “Budget”). This 

Budget contains typical budget items, and encompasses and provides for the complete operation 

Case 19-22483-AJC Doc 97 Filed 10/15/19 Page 6 of 33
7 

LAW OFFICES OF MELAND RUSSIN & BUDWICK, P.A. 

3200 SOUTHEAST FINANCIAL CENTER, 200 SOUTH BISCAYNE BOULEVARD, MIAMI, FLORIDA 33131 • TELEPHONE (305) 358-6363 

and management of the Debtor’s business. However, the Budget contains shortfalls which the 

Secured Lender has agreed to fund with the Postpetition Financing. 

20. The Debtor requests that it be allowed variances with any line item set forth in the 

Budget, provided that such variances shall not exceed ten percent (10%) of each such line item. 

provided, however, that the Debtor may make payments up to ten percent (10%) in excess of the 

total budgeted expenses for that month in the Budget so long as actual disbursements do not 

exceed one hundred and ten percent (110%) of the budgeted total expenses for such month of the 

Budget (collectively, the "Allowed Variance"). In the event that an expense arises which is not 

within any of the approved line items in the Budget, or the Debtor anticipates that any line item 

will need to be exceeded by more than the Allowed Variance, the Debtor shall request approval 

from the Secured Lender, and the Secured Lender shall have three (3) business days from the 

date of Debtor’s request within which to provide consent or object. In the event that the Secured 

Lender does not consent, the Debtor shall file a motion with the Court seeking amendment of the 

Budget and approval of the additional expense, which relief may be sought on an emergency 

basis. 

21. The Debtor additionally requests that fees payable to the Clerk of the Court or 

United States Trustee pursuant to 28 U.S.C. § 1930 in this bankruptcy case (the "Trustee 

Carveout") shall be paid out of the Cash Collateral, and such amounts may be included in the 

approved Budget. 

22. In the event there is a Creditors' Committee appointed in this bankruptcy case, 

such Creditors' Committee shall negotiate any professional fees' carveout with the Secured 

Lender directly, as such fees are not included in the Debtor’s Counsel’s Carveout. 

Case 19-22483-AJC Doc 97 Filed 10/15/19 Page 7 of 33
8 

LAW OFFICES OF MELAND RUSSIN & BUDWICK, P.A. 

3200 SOUTHEAST FINANCIAL CENTER, 200 SOUTH BISCAYNE BOULEVARD, MIAMI, FLORIDA 33131 • TELEPHONE (305) 358-6363 

23. In addition, nothing contained in any Order granting this Motion shall cause a 

novation of the Secured Lender’s documentation. 

VII. BASIS FOR RELIEF REQUESTED 

Use of Cash Collateral 

24. Section 363 of the Bankruptcy Code governs a debtor’s ability to use, sell or lease 

property of the estate. Section 363(c)(2) of the Bankruptcy Code restricts a debtor’s ability to use 

cash collateral. That section provides, in pertinent part: 

The trustee [or debtor in possession] may not use, sell or lease cash 

collateral under paragraph (1) of this subsection unless - 

(A) each entity that has an interest in such cash collateral consents; or 

(B) the court, after notice and a hearing, authorizes such use, sale, or lease 

in accordance with the provisions of this section. 

11 U.S.C. § 363(c)(2). 

25. Section 363(a) of the Bankruptcy Code defines “cash collateral” as including cash 

and cash equivalents “whenever acquired,” in which the estate and any entity other than the 

estate have an interest, and the “proceeds, products, offspring, rents or profits of property subject 

to a security interest as provided in section 552(b) of this title whether existing before or after the 

commencement of a case under this title.” 11 U.S.C. § 363(a). Under Bankruptcy Code sections 

363(c)(2) and (e), the Court may authorize the Debtor to use Cash Collateral as long as its 

secured creditors consent to such use, or if such secured creditors are “adequately protected.” 

26. The Bankruptcy Code does not define "adequate protection" but does provide a 

non-exclusive list of the means by which a debtor may provide adequate protection, including 

"other relief" resulting in the "indubitable equivalent" of the secured creditor's interest in its 

collateral. See 11 U.S.C. § 361; In re Potvin Lumber Company, Inc., 24 B.R. 54 (Bankr. D. Vt. 

1982) (ordering that the debtor could use cash collateral, and finding that the bank was 

Case 19-22483-AJC Doc 97 Filed 10/15/19 Page 8 of 33
9 

LAW OFFICES OF MELAND RUSSIN & BUDWICK, P.A. 

3200 SOUTHEAST FINANCIAL CENTER, 200 SOUTH BISCAYNE BOULEVARD, MIAMI, FLORIDA 33131 • TELEPHONE (305) 358-6363 

adequately protected because the total value of the debtor's personal property exceeded the 

bank's indebtedness). 

27. Adequate protection is to be determined on a case-by-case factual analysis. See 

Mbank Dallas, N.A. v. O'Connor (In re O'Connor), 808 F.2d 1393, 1396 (10th Cir. 1987); In re 

Martin, 761 F.2d 472 (8th Cir. 1985); see also S. Rep. No. 95-989, 95th Cong., 2d Sess. 54 

(1978). For example, the O'Connor court observed: "In order to encourage the Debtors' efforts in

the formative period prior to the proposal of a reorganization, the court must be flexible in 

applying the adequate protection standard." 808 F.2d at 1396. (citations omitted). 

28. Importantly, the Secured Lender consents to the Debtor’s proposed use of Cash 

Collateral in conformity with the attached Budget, and pursuant to which the Debtor proposes to 

provide the Secured Lender adequate protection by granting a replacement lien against the 

Property of the Debtor for any use of the Secured Lender’s Cash Collateral, with such liens 

having the same seniority and entitled to the same level of priority as the priority of the Secured 

Lender’s liens against the Debtor’s Property that existed prior to the Petition Date. 

29. Importantly, the Secured Lender consents to the Debtor’s proposed use of Cash 

Collateral in conformity with the attached Budget, and pursuant to which the Debtor proposes to 

provide the Secured Lender with the following adequate protection: the Secured Lender shall 

have a valid, binding, continuing, enforceable, fully-perfected, non-avoidable first priority liens 

and/or replacement liens on, and security interest in, all of the Debtor’s Property (commonly 

known as 327 & 319 Pierce Street and 330 & 348 Indiana Street, Hollywood, FL 33019 (the 

“Property”)), to the same extent that such liens and security interests existed pre-petition and 

subject to any valid, perfected, non-avoidable senior liens existing as of the Petition Date, and all 

post-petition assets of the Debtor of the same type and nature as the Debtor’s Property, and the 

Case 19-22483-AJC Doc 97 Filed 10/15/19 Page 9 of 33
10 

LAW OFFICES OF MELAND RUSSIN & BUDWICK, P.A. 

3200 SOUTHEAST FINANCIAL CENTER, 200 SOUTH BISCAYNE BOULEVARD, MIAMI, FLORIDA 33131 • TELEPHONE (305) 358-6363 

proceeds thereof. The stay imposed by section 362(a) of the Bankruptcy Code should be 

modified, to the extent applicable, to allow for the filing and recording of a certified copy of the 

Order approving this Motion or any such financing statements, notices of lien or similar 

instruments, and all such documents shall be deemed to have been filed or recorded at the time of 

and on the date of the Petition Date. 

30. Prepetition Indebtedness: The Debtor admits, stipulates, and agrees that (i) the 

principal amount owed to the Secured Lender is not less than $47,098,757.81 plus interest, costs 

and attorneys’ fees, (ii) the lien and security interest the Debtor granted to the Secured Lender is 

a valid, binding, perfected and enforceable first-priority lien on and security interest on the 

Debtor’s Property, and (iii) no portion of the indebtedness due to the Secured Lender or the liens 

and security interests granted to the Secured Lender is subject to avoidance, subordination 

(whether equitable, contractual or otherwise), recharacterization, recovery, attack, offset, 

counterclaim, cross-claims, disallowance, impairment, recoupment, defense, challenge, 

objection, reduction, disgorgement, or claim (as defined in section 101(5) of the Bankruptcy 

Code) of any kind pursuant to the Bankruptcy Code or applicable non-bankruptcy law. 

31. Accordingly, the Debtor submits that the use of Cash Collateral is proper under 

the circumstances and requests authorization to use Cash Collateral based on the grounds set 

forth herein. 

Secured Postpetition Financing 

32. Postpetition Financing. The Debtor seeks authority on an interim basis to obtain 

secured Postpetition Financing in the total amount not to exceed $726,000.00 (“DIP Loan”), 

provided that the maximum amount to be advanced on an interim basis shall not exceed 

$580,000.00 (the “Interim Amount”), with interest to accrue thereon in accordance with the 

Case 19-22483-AJC Doc 97 Filed 10/15/19 Page 10 of 33
11 

LAW OFFICES OF MELAND RUSSIN & BUDWICK, P.A. 

3200 SOUTHEAST FINANCIAL CENTER, 200 SOUTH BISCAYNE BOULEVARD, MIAMI, FLORIDA 33131 • TELEPHONE (305) 358-6363 

terms and conditions of the Loan Documents, which Interim Amount shall be sufficient to pay 

the Debtor’s liabilities set forth on the attached Budget to the extent the Debtor does not have 

Cash Collateral available to pay such liabilities during the first 3-month period of the Budget 

pursuant to section 364 of the Bankruptcy Code and to be used subject to the terms and 

conditions of this Interim Order. The Post-Petition Financing provided by the Secured Lender to 

pay liabilities pursuant to the Budget shall become Cash Collateral and added to the prepetition 

indebtedness of the Secured Lender and afforded the same protections for Cash Collateral 

described in paragraphs 3 and 4 above. Pursuant to Section 364(c)(1) of the Bankruptcy Code, 

the Post-Petition Financing shall constitute an administrative expense of the Debtor and the 

Debtor’s estate and shall have priority over all administrative expenses of the kind specified in 

Section 503(b) and 507(b) of the Bankruptcy Code. In addition, any sum advanced on account of 

the Post-Petition Financing from the Secured Lender shall be (i) deemed an advance as defined 

in Section 24 of the Certificate of Future Advance and Amended and Restated Mortgage and 

Security Agreement from the Debtor to the Secured Lender, recorded on July 20, 2016 in 

Broward County, Florida Official Records as Instrument Number 113820788 (the “Mortgage”) 

and such advance shall be added to the prepetition indebtedness of the Secured Lender, with 

interest to accrue on any such advance, in accordance with the terms conditions of the Mortgage 

and the Note which such Mortgage secures, and (ii) be secured by a first priority priming lien in 

favor of the Secured Lender pursuant to Section 364(d) of the Bankruptcy Code on all of the 

Debtor’s Property senior to any and all liens, security interests and mortgages on the Debtor’s 

Property existing as of the Petition Date. The Secured Lender shall have the sole discretion to 

determine if it shall fund the balance of Post-Petition Financing beyond the Interim Amount, 

including the right to approve an updated budget in respect thereof. 

Case 19-22483-AJC Doc 97 Filed 10/15/19 Page 11 of 33
12 

LAW OFFICES OF MELAND RUSSIN & BUDWICK, P.A. 

3200 SOUTHEAST FINANCIAL CENTER, 200 SOUTH BISCAYNE BOULEVARD, MIAMI, FLORIDA 33131 • TELEPHONE (305) 358-6363 

33. Benefit to the Estate and Reasonable Exercise of Business Judgment. Given the 

Debtor's current financial condition and need for liquidity, the Debtor respectfully submits that 

the proposed Postpetition Financing represents an actual, necessary cost and expense of 

preserving the estate within the meaning of 11 U.S.C. § 503(b)(1). The Debtor is exercising its 

business judgment in a reasonable manner by obtaining the Postpetition Financing. 

34. Immediate or Irreparable Damage. Owing to the urgent need of funding to pay the 

shortfalls in the attached Budget, and the expiry of the Interim Budget on October 18, 2019, 

immediate and irreparable damage will be caused to the estate if immediate interim relief is not 

granted before a final hearing on the Motion (the "Final Hearing"). Debtor further submits that 

it has attempted in the prepetition period to obtain financing to take out the secured lender to no 

avail. Moreover, any attempt to obtain postpetition financing from a source other than the 

Secured Lender is futile, as the Secured Lender has a blanket lien on all the Debtor’s assets 

including cash, and it is highly unlikely a third party lender would lend postpetition financing on 

a subordinated basis. To the extent a priming lien were sought from a third party, the Secured 

Lender would vigorously object causing the estate to incur significant administrative fees and 

costs to resolve. 

35. Pursuant to 11 U.S.C. § 361, the Debtor submits that the foregoing provides 

adequate protection to the Secured Lender. 

36. Accordingly, the Debtor submits that the Proposed Postpetition Financing is 

proper under the circumstances and requests authorization to obtain Postpetition Financing based 

on the grounds set forth herein. 

Case 19-22483-AJC Doc 97 Filed 10/15/19 Page 12 of 33
13 

LAW OFFICES OF MELAND RUSSIN & BUDWICK, P.A. 

3200 SOUTHEAST FINANCIAL CENTER, 200 SOUTH BISCAYNE BOULEVARD, MIAMI, FLORIDA 33131 • TELEPHONE (305) 358-6363 

VIII. REQUEST FOR FINAL HEARING 

37. Pursuant to Bankruptcy Rule 4001(b)(2), the Debtor respectfully requests that the 

Court set a date for a Final Hearing that is no earlier than fourteen (14) days after service of this 

Motion. 

 WHEREFORE, the Debtor respectfully requests that this Court (i) enter the Interim 

Order, substantially in the form attached hereto as Exhibit A, authorizing the relief requested 

herein; (ii) set the Final Hearing on this Motion; and (iii) grant such other and further relief as the 

Court deems just and proper. 

 Dated: October 15, 2019. 

 s/ James C. Moon 

Peter D. Russin, Esquire 

Florida Bar No. 765902 

prussin@melandrussin.com 

James C. Moon, Esquire 

Florida Bar No. 938211 

jmoon@melandrussin.com 

Meaghan E. Murphy, Esquire 

Florida Bar No. 102770 

mmurphy@melandrussin.com 

MELAND RUSSIN & BUDWICK, P.A. 

3200 Southeast Financial Center 

200 South Biscayne Boulevard 

Miami, Florida 33131 

Telephone: (305) 358-6363 

Telecopy: (305) 358-1221 

Attorneys for Debtor-in-Possession 

Case 19-22483-AJC Doc 97 Filed 10/15/19 Page 13 of 33
14 

LAW OFFICES OF MELAND RUSSIN & BUDWICK, P.A. 

3200 SOUTHEAST FINANCIAL CENTER, 200 SOUTH BISCAYNE BOULEVARD, MIAMI, FLORIDA 33131 • TELEPHONE (305) 358-6363 

CERTIFICATE OF SERVICE

I HEREBY CERTIFY that a true and correct copy of the foregoing was served on 

October 15, 2019, via the Court's Notice of Electronic Filing upon Registered Users set forth on 

the attached Exhibit 1 and via U.S. Mail upon the Master Service List, pursuant to Local Rule 

2002-1 (H), Designation of Master Service List in Chapter 11 Cases, attached as Exhibit 2. 

s/ James C. Moon 

James C. Moon, Esquire 

Case 19-22483-AJC Doc 97 Filed 10/15/19 Page 14 of 33
UNITED STATES BANKRUPTCY COURT 

SOUTHERN DISTRICT OF FLORIDA 

FORT LAUDERDALE DIVISION 

www.flsb.uscourts.gov

In re: 

COSTA HOLLYWOOD PROPERTY OWNER, LLC,1

 Case No. 19-22483-JKO 

Chapter 11 

 Debtor. 

 / 

INTERIM ORDER GRANTING EXPEDITED MOTION OF THE DEBTOR 

FOR ENTRY OF INTERIM AND FINAL ORDERS (I) AUTHORIZING THE DEBTOR 

TO (A) USE CASH COLLATERAL NUNC PRO TUNC TO SEPTEMBER 19, 2019, (B) 

OBTAIN SECURED POSTPETITION FINANCING FROM 777 NORTH OCEAN 

DRIVE, LLC, (II) GRANTING ADEQUATE PROTECTION, 

AND (III) SCHEDULING FINAL HEARING 

THIS MATTER came before the Court on October 17, 2019 at 9:30 a.m. for hearing (the 

"Hearing") upon the Expedited Motion of the Debtor for the Entry of Interim and Final Orders (I) 

Authorizing the Debtor to (A) Use Cash Collateral Nunc Pro Tunc to September 19, 2019 (B) 

 

1

 The Debtor’s current mailing address is 777 North Ocean Drive, Hollywood, FL 33019. The Debtor’s EIN is 47-

4883778. 

EXHIBIT A

Case 19-22483-AJC Doc 97 Filed 10/15/19 Page 15 of 33
2 

Obtain Secured Postpetition Financing From 777 North Ocean Drive, LLC, (II) Granting 

Adequate Protection, and (III) Scheduling Final Hearing (the "Motion") [ECF No. ___]. The 

Court having reviewed the Motion, having accepted the proffer of evidence from the Debtor, 

having heard statements for counsel for the Debtor and 777 North Ocean Drive, LLC (the “Secured 

Lender”) in support of the relief requested in the Motion, having heard a statement from counsel 

to Beauchamp Construction Co., Inc. (“Beauchamp”) that Beauchamp’s rights should be 

preserved and otherwise being fully informed of the facts FINDS AND CONCLUDES as follows: 

A. Jurisdiction and Venue. The Court has jurisdiction over this matter pursuant to 28 

U.S.C. §§ 157 and 1334; and venue is proper before this Court pursuant to 28 U.S.C. § 1408; 

B. Core Proceeding. This matter is core pursuant to 28 U.S.C. § 157(b)(2); 

C. Notice. Notice of the Motion and the Hearing was sufficient under the 

circumstances; 

D. Need for Postpetition Financing. The Debtor has demonstrated the need to obtain 

secured postpetition financing pursuant to § 364 of the Bankruptcy Code. The Debtor asserts that 

in the absence of the proposed secured postpetition financing set forth in the Motion, which is to 

be provided by the Secured Lender, the Debtor will be unable to successfully operate its business, 

propose a plan and proceed to sell substantially all of their assets as a going concern, all to the 

detriment of the Debtor, its estate, its creditors, and other parties in interest. The Debtor asserts 

that it does not have sufficient working capital and other financing available to fund its operating 

business, maintain estate property, and administer its cases without the proposed secured 

postpetition financing. 

E. Benefit to the Estate and Reasonable Exercise of Business Judgment. Given the 

Debtor's current financial condition and need for liquidity, the proposed financing represents an 

actual, necessary cost and expense of preserving the estate within the meaning of 11 U.S.C. § 

Case 19-22483-AJC Doc 97 Filed 10/15/19 Page 16 of 33
3 

503(b)(1). The Debtor is exercising its business judgment in a reasonable manner by obtaining the 

financing. 

F. Immediate or Irreparable Damage. Owing to the urgent need of funding to pay the 

shortfalls in the attached Budget, and the expiry of the Interim Budget on October 18, 2019, 

immediate and irreparable damage will be caused to the estate if immediate interim relief is not 

granted before a final hearing on the Motion (the "Final Hearing"). 

G. Good Faith of the Secured Lender. The Secured Lender is a "good faith" lender 

within the meaning of § 364(e) of the Bankruptcy Code, and the Secured Lender's claims and other 

protections arising from or granted pursuant to this Order (the "Second Interim Order") will not 

be affected by any subsequent reversal, modification, vacatur or amendment of this Second Interim 

Order or any other order, as provided in § 364(e) of the Bankruptcy Code. 

The Court having determined, therefore, that just cause exits to grant the relief requested 

in the Motion on an interim basis as set forth herein. It is accordingly: 

ORDERED AND ADJUDGED as follows: 

1. The Motion is GRANTED as set forth herein. 

2. Use of Cash Collateral: The Debtor is authorized, from the Petition Date through 

and including March 20, 2019 (the "Interim Period"), to use cash collateral as defined in Section 

363(a) of the Bankruptcy Code to pay for the expenses and costs of administration incurred by the 

Debtor in accordance with the budget attached to the Motion as Exhibit B (the "Budget"). The 

Debtor shall not exceed any line item on the Budget by an amount exceeding ten percent (10%) of 

each such line item; provided, however, that the Debtor may make payments up to ten percent 

(10%) in excess of the total budgeted expenses for that month in the Budget so long as actual 

disbursements do not exceed one hundred and ten percent (110%) of the budgeted total expenses 

for the month (collectively, the "Allowed Variance"). In the event that an expense arises which is 

Case 19-22483-AJC Doc 97 Filed 10/15/19 Page 17 of 33
4 

not within any of the approved line items in the Budget, or the Debtor anticipates that any line item 

will need to be exceeded by more than the Allowed Variance, the Debtor shall request approval 

from the Secured Lender, and the Secured Lender shall have three (3) business days from the date 

of Debtor’s request within which to provide consent or object. In the event that the Secured Lender 

does not consent, the Debtor shall file a motion with the Court seeking amendment of the Budget 

and approval of the additional expense, which relief may be sought on an emergency basis. 

3. Prohibited uses of Cash Collateral: Except as expressly permitted by this Order, 

consented to by the Secured Lender, or approved by this Court, the Debtor is prohibited from use 

of any of the Cash Collateral for any other purpose whatsoever including but not limited to: 

a. prepare, prosecute or seek approval of any motion, application or plan 

of reorganization or liquidation that would, if so approved, investigate, 

assert, commence, prosecute or otherwise take any action with respect 

to any lien, claim or alleged lien or claim against the Secured Lender, 

including but not limited to, claims arising under §§ 542 through and 

including 553 of the Bankruptcy Code. 

b. challenge the amount, validity, priority or enforceability of the Secured 

Lender’s prepetition loan with the Debtor (the “Loan”) or the security 

interests and liens of the Secured Lender in the Debtor’s Property (as 

defined below) pursuant thereto or assert any defense, claim, 

counterclaim or offset with respect to the Loan or the security interests 

and liens of the Secured Lender; 

c. challenge in any manner whatsoever the Loan and any other rights, 

claims and entitlements of the Secured Lender under any of the 

documents executed by the Debtor and given to the Secured Lender (or 

Case 19-22483-AJC Doc 97 Filed 10/15/19 Page 18 of 33
5 

its predecessors) in connection with the origination the Loan or 

documents relating to the Loan (the “Loan Documents”); or 

d. change, amend or modify in any manner whatsoever any of the Loan 

Documents executed in connection with the Loan. 

4. Adequate Protection to Secured Lender: Subject only to the DIP Liens (as defined 

below), the Secured Lender is hereby granted valid, binding, continuing, enforceable, fullyperfected, non-avoidable first priority liens and/or replacement liens on, and security interest in, 

all of the Debtor’s Property, whether real property or personal property, located at or used in 

connection with the operations of the property commonly known as 327 & 319 Pierce Street and 

330 & 348 Indiana Street, Hollywood, FL 33019 (the “Debtor’s Property”), to the same extent 

that such liens and security interests existed pre-petition and subject to any valid, perfected, nonavoidable senior liens existing as of the Petition Date, and all post-petition assets of the Debtor of 

the same type and nature as the Debtor’s Property, and the proceeds thereof. The stay imposed by 

section 362(a) of the Bankruptcy Code is hereby modified, to the extent applicable, to allow for 

the filing and recording of a certified copy of this Order or any such financing statements, notices 

of lien or similar instruments, and all such documents shall be deemed to have been filed or 

recorded at the time of and on the date of the Petition Date. As further adequate protection, Secured 

Lender shall have a super priority administrative expense claim under Bankruptcy Code §364(c)(1) 

for its replacement liens. A certified copy of this Interim Order may, in the discretion of the 

Secured Lender, be filed with or recorded in filing or recording offices in addition to or in lieu of 

such financing statements, mortgages, notices of lien or similar instruments, and all filing offices 

are hereby authorized to accept such certified copy of the Interim Order for filing and/or recording 

as acceptable. 

Case 19-22483-AJC Doc 97 Filed 10/15/19 Page 19 of 33
6 

5. Prepetition Indebtedness: The Debtor admits, stipulates, and agrees that (i) the 

principal amount owed to the Secured Lender is not less than $47,098,757.81 plus interest, costs 

and attorneys’ fees, (ii) the lien and security interest the Debtor granted to the Secured Lender is 

a valid, binding, perfected and enforceable first-priority lien on and security interest on the 

Debtor’s Property, and (iii) no portion of the indebtedness due to the Secured Lender or the liens 

and security interests granted to the Secured Lender is subject to avoidance, subordination 

(whether equitable, contractual or otherwise), recharacterization, recovery, attack, offset, 

counterclaim, cross-claims, disallowance, impairment, recoupment, defense, challenge, objection, 

reduction, disgorgement, or claim (as defined in section 101(5) of the Bankruptcy Code) of any 

kind pursuant to the Bankruptcy Code or applicable non-bankruptcy law. 

6. Postpetition Financing. The Debtor is authorized on an interim basis to obtain 

secured post-petition financing from the Secured Lender (the “Post-Petition Financing”) in the 

total amount not to exceed $726,000.00, provided that the maximum amount to be advanced on 

an interim basis shall not exceed $580,000.00 (the “Interim Amount”), with interest to accrue 

thereon in accordance with the terms and conditions of the Loan Documents, which Interim 

Amount shall be sufficient to pay the Debtor’s liabilities set forth on the attached Budget to the 

extent the Debtor does not have Cash Collateral available to pay such liabilities during the 3-month 

period of the Budget pursuant to section 364 of the Bankruptcy Code and to be used subject to the 

terms and conditions of this Interim Order. The Post-Petition Financing provided by the Secured 

Lender to pay liabilities pursuant to the Budget shall become Cash Collateral and added to the 

prepetition indebtedness of the Secured Lender and afforded the same protections for Cash 

Collateral described in paragraphs 3 and 4 above. Pursuant to Section 364(c)(1) of the Bankruptcy 

Code, the Post-Petition Financing shall constitute an administrative expense of the Debtor and the 

Debtor’s estate and shall have priority over all administrative expenses of the kind specified in 

Case 19-22483-AJC Doc 97 Filed 10/15/19 Page 20 of 33
7 

Section 503(b) and 507(b) of the Bankruptcy Code. In addition, any sum advanced on account of 

the Post-Petition Financing from the Secured Lender shall be (i) deemed an advance as defined in 

Section 24 of the Certificate of Future Advance and Amended and Restated Mortgage and Security 

Agreement from the Debtor to the Secured Lender, recorded on July 20, 2016 in Broward County, 

Florida Official Records as Instrument Number 113820788 (the “Mortgage”) and such advance 

shall be added to the prepetition indebtedness of the Secured Lender, with interest to accrue on 

any such advance, in accordance with the terms conditions of the Mortgage and the Note which 

such Mortgage secures, and (ii) be secured by a first priority priming lien in favor of the Secured 

Lender pursuant to Section 364(d) of the Bankruptcy Code on all of the Debtor’s Property senior 

to any and all liens, security interests and mortgages on the Debtor’s Property existing as of the 

Petition Date. The Secured Lender shall have the sole discretion to determine if it shall fund the 

balance of Post-Petition Financing beyond the Interim Amount, including the right to approve an 

updated budget in respect thereof. In order to secure and perfect Secured Lender’s post-petition 

Financing a certified copy of this Interim Order may, in the discretion of the Secured Lender, be 

filed with or recorded in filing or recording offices in addition to or in lieu of such financing 

statements, mortgages, notices of lien or similar instruments, and all filing offices are hereby 

authorized to accept such certified copy of the Interim Order for filing and/or recording as 

acceptable. 

7. No Novation: This Order shall not cause a novation of the Secured Lender’s Loan 

Documents. 

8. Non-Waiver of Rights and Remedies: Other than as set forth in paragraph 5 above 

and except for the Post-Petition Financing, this Order is not intended to and shall not prejudice, 

alter, affect or waive any rights and/or remedies of the Debtor or the Secured Lender (with respect 

to liens, claims, value determinations, and all other matters) under the Bankruptcy Code or 

Case 19-22483-AJC Doc 97 Filed 10/15/19 Page 21 of 33
8 

applicable non-bankruptcy law (including, but not limited to, all matters pertaining to cash and 

other collateral) and does not bind any subsequently appointed trustee or committee. In addition, 

nothing in this Order including any of the provisions herein with respect to adequate protection, 

shall constitute, or be deemed to constitute, a finding that the interests of the Secured Lender is or 

will be adequately protected, except as otherwise set forth herein. Further, nothing in this Order 

shall prejudice the Secured Lender’s rights to: 

a. Seek further adequate protection; 

b. request conversion or dismissal of the Case; 

c. seek relief from the automatic stay under § 362(d) of the Bankruptcy 

Code; 

d. request appointment of a trustee or examiner in the Case; 

e. seek termination of exclusivity; 

f. object to or otherwise oppose any plan or disclosure statement 

proposed in this Case; 

g. object to or otherwise oppose any relief sought by any entity or party 

in this chapter 11 case, including without limitation, to object to any 

application filed by any professional in these cases seeking 

compensation and reimbursement of expenses under §§ 330 or 331 

of the Bankruptcy Code; 

h. assert that the Debtor is obligated to pay the Secured Lender the 

default rate of interest and any other charges, penalties, attorneys' 

fees and expenses and costs required to be paid under the Loan; and 

i. any and all rights, remedies, claims and causes of action which the 

Secured Lender has or may have against any party who may be 

Case 19-22483-AJC Doc 97 Filed 10/15/19 Page 22 of 33
9 

liable with the Debtor for the Loan and otherwise under the Loan or 

any part thereof. 

 Furthermore, with the exception of Post-Petition Financing provided by the Secured 

Lender (as described in paragraph 6 of this Order), this Order is not intended to and shall not 

prejudice, alter, affect or waive any rights and/or remedies (with respect to liens, claims, value 

determinations and all other matters) under the Bankruptcy Code or applicable non-bankruptcy 

law, of any creditor or other party-in-interest, including Beauchamp. 

9. Default: Notwithstanding anything to the contrary contained herein, the Debtor's 

right to use Cash Collateral and borrow under the Post-Petition Financing under this Interim Order 

shall terminate upon the occurrence of any of the following events each an “Event of Default”: 

a. The entry by this Court or any other court of an order vacating or 

modifying this Second Interim Order; 

b. The dismissal of the Debtor's bankruptcy case or the conversion of the 

case to a case under Chapter 7 of the Bankruptcy Code; 

c. Failure of the Debtor to file a disclosure statement (the “Disclosure 

Statement”) and a plan (the “Plan”) by November 15, 2019, each in a 

form reasonably acceptable to the Secured Lender which agrees that it 

will agree to a reasonable extension of time to file a Plan and Disclosure 

Statement to the extent good cause is shown for such extension by the 

Debtor; 

d. Failure of the Debtor, subject to the Court’s availability and compliance 

with service requirements, to (i) obtain an approved Disclosure

Statement by January 10, 2019, and (ii) confirm the Plan on or before 

February 28, 2020; 

Case 19-22483-AJC Doc 97 Filed 10/15/19 Page 23 of 33
10 

e. The filing by the Debtor of any motion, application, adversary 

proceeding or plan of reorganization or liquidation seeking the

modification, amendment or vacatur of this Second Interim Order

without the express written prior consent of Secured Lender; 

f. The appointment of a trustee, receiver or examiner or other 

representative with expanded powers for any of the Debtor; 

g. The Debtor ceases operations of its present business as such existed on 

the Petition Date or takes any material action for the purpose of effecting 

the foregoing without the prior written consent of Secured Lender, 

except to the extent contemplated by the Budget; 

h. The Debtor seeks to borrow money from any person or entity with a 

lien, security interest or mortgage on the Debtor’s Property that is senior 

to or pari passu with the liens, security interests and mortgages of the 

Secured Lender, including in respect of the Post-Petition Financing; and 

i. Failure to comply with any material term of this Second Interim Order. 

10. Further Hearing: This Court shall hold a further hearing on the Debtor's use of cash 

collateral on December ____________, 2019 at _________. at the United States Bankruptcy 

Courthouse, 299 E. Broward Blvd, Courtroom 308, Fort Lauderdale, FL 33301. 

 

Case 19-22483-AJC Doc 97 Filed 10/15/19 Page 24 of 33
11 

11. Retention of Jurisdiction: The Court has and will retain jurisdiction to enforce this 

Interim Order according to its terms. 

### 

Submitted By: 

James C. Moon, Esquire 

Florida Bar No. 9382111 

jmoon@melandrussin.com 

MELAND RUSSIN & BUDWICK, P.A. 

Counsel for the Debtor 

3200 Southeast Financial Center 

200 South Biscayne Boulevard 

Miami, Florida 33131 

Telephone: (305) 358-6363 

Telefax: (305) 358-1221 

Copies Furnished To: 

James C. Moon, Esquire, is directed to serve copies of this Order on all parties in interest and to 

file a Certificate of Service. 

Case 19-22483-AJC Doc 97 Filed 10/15/19 Page 25 of 33
Oct‐19 Nov‐19 Dec‐19 Jan‐20 Feb‐20 Mar‐20 TOTALS

Rooms RevenueHotel RevenuesREVENUES

284,440 522,160 897,480 493,298 822,320 920,908 3,940,605

Miscellaneous Income 38,425 59,725 78,500 50,318 80,764 91,657 399,389

Other Operated Departments Revenues 183 267 340 240 336 385 1,751

Parking 33,506 37,002 38,125 33,200 34,654 40,089 216,576

Total Hotel Operating Revenue 356,554 619,153 1,014,445 577,056 938,074 1,053,039 4,558,321Assessments ‐ HomeownersShared Facilities Revenues

217,588 217,588 217,588 217,588 217,588 217,588 1,305,529

Total Shared Facilities Revenues 217,588 217,588 217,588 217,588 217,588 217,588 1,305,529TOTAL REVENUES 574,143 836,742 1,232,033 794,644 1,155,662 1,270,627 5,863,850Rooms ExpenseHotel Departmental ExpensesEXPENSES

1 108,575 142,157 179,905 135,230 171,346 194,662 931,875

ParkingOther Operated Departments Expenses 146 214 272 1,026 1,102 1,142 3,903

19,967 19,418 20,006 20,108 18,368 20,166 118,033

Total Departmental Expenses 128,688 161,789 200,183 156,364 190,816 215,970 1,053,810Administration And GeneralHotel Operating Expenses 2 64,684 66,683 81,243 69,310 72,730 81,096 435,746

Condo ‐ Owner Distribution2 127,998 234,972 403,866 221,984 370,044 414,408 1,773,272

Information And Telecommunication3 13,459 13,311 13,459 14,653 14,104 14,496 83,484

Sales And Marketing4 48,952 46,893 42,523 51,108 43,962 49,744 283,183

Repairs And Maintenance5 3,263 4,328 4,634 2,911 3,944 4,483 23,563

Total Hotel Undistributed Expenses 258,357 366,187 545,726 359,966 504,784 564,227 2,599,247Hotel Fixed Expenses6

Base Management Fee 35,000 35,000 26,849 35,000 35,000 35,000 201,849

Insurance Expense 304 304 304 569 569 569 2,618

Total Hotel Fixed Expenses 35,304 35,304 27,153 35,569 35,569 35,569 204,467Licenses and PermitsShared Facilities Administrative Expenses

1,000 1,000 1,000 1,000 1,000 1,000 6,000

Computer expense 200 200 200 200 200 200 1,200

Office Supplies 500 500 500 500 500 500 3,000

EXHIBIT B

Case 19-22483-AJC Doc 97 Filed 10/15/19 Page 26 of 33
Legal and Professional ‐ Collections 1,500 1,500 1,500 1,500 1,500 1,

Dues and Fees 250 250 250 250 250 250 1,500Accounting Fees 167 167 167 167 167 167 1,000Audit Fees 542 542 542 542 542 542 3,250Bank Fees 42 42 42 42 42 42 250Postage 450 450 450 450 450 450 2,700Printing and Copying 200 200 200 200 200 200 1,200

500 9,000

Total Shared Facilities Administrative Expenses 8,510 8,510 8,510 8Management Fee 3,500 3,500 3,500 3,500 3,500 3,500 21,000Cell Phone Allowance 160 160 160 160 160 160 960

,510 8,510 8,510 51,060

Electric ‐ General Operations 40,000 40,000 40,000 40,000 40,000 40,0Shared Facilities Utilities

00 240,000

Utilities Deposits 40,000Telephone / Internet  8,000 8,000 8,000 8,000 8,000 8,000 48,000Water/Sewer 15,000 15,000 15,000 15,000 15,000 15,000 90,000Gas & Diesel  2,000 2,000 2,000 2,000 2,000 2,000 12,000

00000 40,000

Total Shared Facilities Utilities 105,000 65,000 65,000 65,000 65,000 65,000 430,000Equipment Contract ‐ Health Club 2,173 2,173 2,173 2,173 2,173 2,173 1Elevator Contract 2,496 2,597 2,597 2,597 2,597 2,597 15,481Copier 850 850 850 850 850 850 5,100IT Support 1,000 1,000 1,000 1,000 1,000 1,000 6,000Beach Services 9,500 9,500 9,500 9,500 9,500 9,500 57,000Shared Facilities Contracts

3,040

Equipment Contract ‐ Fire Saftey 1,918 1,918 1,918 1,918 1,918 1,918 11,510Total Shared Facilities Contracts 32,488 39,373 39,373 39,373 39,373Trash Removal 1,430 1,430 1,430 1,430 1,430 1,430 8,580Trash Compactor Lease  385 770 770 770 770 770 4,233Security Staff  6,708 6,708 6,708 6,708 6,708 6,708 40,248Pool/Spa Contract 1,745 1,745 1,745 1,745 1,745 1,745 10,470Pest Control 800 800 800 800 800 800 4,800Indoor Plant service 0 1,000 1,000 1,000 1,000 1,000 5,000Windows Cleaning 0 4,900 4,900 4,900 4,900 4,900 24,500Lawn Maintenance 1,200 1,200 1,200 1,200 1,200 1,200 7,200Key System 0 500 500 500 500 500 2,500HVAC System 1,950 1,950 1,950 1,950 1,950 1,950 11,700Generator 205 205 205 205 205 205 1,230Fire System Monitoring 82 82 82 82 82 82 490Rooftop Safety Equipment 45 45 45 45 45 45 273

39,373 229,355

Case 19-22483-AJC Doc 97 Filed 10/15/19 Page 27 of 33
Total Shared Facilities Insurance 43,669 0 175,000 43,669 43,669 43,6

Insurance Renewal Dowwnpayment (Dec 2019) 0 0 175,000 0 0 0 175,000Umbrella 781 0 0 781 781 781 3,125Crime 108 0 0 108 108 108 433Financing 6% and stamps 2,503 0 0 2,503 2,503 2,503 10,012D&O 405 0 0 405 405 405 1,621W/C 59 0 0 59 59 59 235Equipment Breakdown 682 0 0 682 682 682 2,726Flood 6,516 0 0 6,516 6,516 6,516 26,065Property & Windstorm 26,129 0 0 26,129 26,129 26,129 104,516General Liability 6,486 0 0 6,486 6,486 6,486 25,944Shared Facilities Insurance

69 349,677

Janitorial SuppliesShared Facilities Repairs & Maintenance

0000000

Total Shared Facilities Repairs & Maintenance 18,527 18,108 18,108Communications Equipment (Radios) 458 458 458 458 458 458 2,748Boilers 150 150 150 150 150 150 900Pool‐ Supplies Equipment & Repairs 500 500 500 500 500 500 3,000Fire Alarm  2,500 2,500 2,500 2,500 2,500 2,500 15,000Lighting 1,000 1,000 1,000 1,000 1,000 1,000 6,000Elevators 919 500 500 500 500 500 3,419Electrical  1,000 1,000 1,000 1,000 1,000 1,000 6,000Plumbing  2,000 2,000 2,000 2,000 2,000 2,000 12,000HVAC  8,000 8,000 8,000 8,000 8,000 8,000 48,000Supplies Maintenance 2,000 2,000 2,000 2,000 2,000 2,000 12,000

18,108 18,108 18,108 109,067

Shared Facilities Salaries7Total Shared Facilities Salaries 39,200 39,200 39,200 39,200 39,200 3Housekeeping Staff 4,500 4,500 4,500 4,500 4,500 4,500 27,000Owner Relations Staff  8,200 8,200 8,200 8,200 8,200 8,200 49,200Engineering Staff 26,500 26,500 26,500 26,500 26,500 26,500 159,000

9,200 235,200

Total Bankrupcy Expenses 30,325 30,000 30,000 52,226 20,000 20,000 182Legal Banruptcy 30,000 30,000 30,000 20,000 20,000 20,000 150,000US Trustee 325 0 0 32,226 0 0 32,551Bankrupcy Expenses

,551

Other Expenses

Case 19-22483-AJC Doc 97 Filed 10/15/19 Page 28 of 33
Administration & Bookkeeping 17,000 17,000 17,000 17,000 17,000 17,00

Developer Fee 20,000 20,000 20,000 20,000 20,000 20,000 120,000Critical Vendors 176,024 191,394 111,921 78,974 72,192 60,000 690,506

0 102,000

Total Other Expenses 219,956 235,325 155,853 122,905 116,124 103,932 9Maintenance Staff 6,932 6,932 6,932 6,932 6,932 6,932 41,590

54,095

TOTAL EXPENSES 920,023 998,797 1,304,106 940,891 1,081,153 1,153,558 6,398,528NET INCOME (LOSS) (345,881) (162,055) (72,073) (146,247) 74,509 117,068 (534,679)

Case 19-22483-AJC Doc 97 Filed 10/15/19 Page 29 of 33
EXHIBIT 1 

Electronic Mail Notice List

The following is the list of parties who are currently on the list to receive email notice/service 

for this case. 

 Scott Andron sandron@broward.org 

 Paul J. Battista pbattista@gjb-law.com, gjbecf@gjb-law.com;chopkins@gjblaw.com;jzamora@gjb-law.com;gjbecf@ecf.courtdrive.com;vlambdin@gjb-law.com 

 Steven M Davis sdavis@bplegal.com 

 Michael P Dunn michael.dunn@dunnlawpa.com, 

rbasnueva@dunnlawpa.com;joel.knee@dunnlawpa.com;mzucker@dunnlawpa.com 

 Julie Feigeles jf@womenatlawfl.com 

 Jerold C Feuerstein jfeuerstein@kandfllp.com, 

litigation@kandfllp.com;rcappiello@kandfllp.com;skossar@kandfllp.com 

 Brandon J Hechtman bhechtman@wickersmith.com 

 Kimberly H Israel kisrael@mcglinchey.com, lwhite@mcglinchey.com 

 Mark Journey mjourney@broward.org, swulfekuhle@broward.org 

 Andrew V Layden alayden@bakerlaw.com, 

orlbankruptcy@bakerlaw.com;cmartin@bakerlaw.com 

 James C. Moon jmoon@melandrussin.com, 

ltannenbaum@melandrussin.com;mrbnefs@yahoo.com;jmoon@ecf.courtdrive.com;ltann

enbaum@ecf.courtdrive.com;phornia@ecf.courtdrive.com 

 Office of the US Trustee USTPRegion21.MM.ECF@usdoj.gov 

 Alberto H Orizondo aorizondo@aglawpa.com, bfernandez@aglawpa.com 

 Alexis S Read alexis.read@dunnlawpa.com, asr@alexisreadlaw.com 

 Humberto E Rivera humberto@hriveralaw.com, 

G61034@notify.cincompass.com;humberto@ecf.courtdrive.com;documents@prodoxpre

p.com 

 Raymond L Robinson teri@rrobinsonlaw.com, ray@rrobinsonlaw.com 

 Victor K Rones vrones@victorkronespa.com, jrones@victorkronespa.com 

 Peter D. Russin prussin@melandrussin.com, 

ltannenbaum@melandrussin.com;mrbnefs@yahoo.com;prussin@ecf.courtdrive.com;ltan

nenbaum@ecf.courtdrive.com;phornia@ecf.courtdrive.com 

 Zana Michelle Scarlett Zana.M.Scarlett@usdoj.gov 

 

Case 19-22483-AJC Doc 97 Filed 10/15/19 Page 30 of 33
U.S. Trustee: (Notice provided via NEF) 

Office of The United States Trustee 

51 SW First Avenue, Room 1204 

Miami, FL 33130 

Debtor-in-Possession: (via U.S. Mail)

Costa Hollywood Property Owner, LLC 

777 North Ocean Drive 

Hollywood, FL 33019 

Debtor-in-Possession’s Attorney: 

(Notice provided via NEF)

Peter D. Russin, Esquire 

James C. Moon, Esquire 

Meland Russin & Budwick, P.A. 

3200 Southeast Financial Center 

200 South Biscayne Boulevard 

Miami, Florida 33131 

Secured Creditors: (via U.S. Mail) 

777 N. Ocean Drive, LLC 

520 Madison Ave 

New York, NY 10022 

777 N. Ocean Drive, LLC 

c/o Jerold C. Feuerstein 

Kriss & Feuerstein LLP 

360 Lexington Ave #6502 

New York, NY 10017 

Baker Concrete Construction, Inc. 

5555 Anglers Ave, Suite 1A 

Fort Lauderdale, FL 33312 

Beauchamp Construction Co Inc. 

c/o Benjamin K. Artzt 

2100 Ponce de Leon Blvd, Ste 825 

Coral Gables, FL 33134 

Design Engineering Group, LLC 

c/o Harvey, F William, Esq. 

5402 Red Cypress Lane 

Fort Lauderdale, FL 33319 

HVAC Associates, Inc. 

PO Box 1355 

Pompano Beach, FL 33061 

Italkraft LLC 

2900 NW 77 Ct 

Doral, FL 33122 

Lenny's Cleaning, Painting 

& Waterproofing, Inc. 

10040 NW 46 St 

Fort Lauderdale, FL 33351 

Tropic Fire Protection, Inc. 

922 SW 36th Ave 

Boynton Beach, FL 33435 

United Leasing, Inc. 

PO Box 5089 

Evansville, IN 47715 

United States and its agencies: 

(via U.S. Mail)

Internal Revenue Service 

P.O. Box 7346 

Philadelphia, PA 19101-7346 

Internal Revenue Services 

Insolvency Unit 

7850 S.W. 6th Court 

Mail Stop 5730 

Plantation, FL 33324 

Notice of Appearances: 

(Notice provided via NEF 

Upon Registered Users) 

Victor K. Rones, Esq. 

Attorney for Costa Investors LLC, Creditor 

16105 NE 18th Avenue, 

North Miami Beach, FL 33162 

EXHIBIT 2

Case 19-22483-AJC Doc 97 Filed 10/15/19 Page 31 of 33
MASTER SERVICE LIST PER LOCAL RULE 2002-1(H) 

Andrew V. Layden, Esq. 

Attorneys for New Continent Ventures, Inc. 

Baker & Hostetler LLP 

200 S. Orange Ave. 

SunTrust Center, Suite 2300 

Orlando, FL 32801-3432 

Jerold C. Feuerstein, Esq. 

Attorneys for 777 N. Ocean Drive, LLC 

KRISS & FEUERSTEIN LLP 

360 Lexington Avenue, Suite 1200 

New York, New York 10017 

Michael P. Dunn, Esq. 

Alexis S. Read, Esq. 

Attorneys for Evolution Hospitality, LLC 

Dunn Law P.A. 

66 W. Flagler Street, Ste. 400 

Miami, FL 33130 

Humberto Rivera, Esq. 

Attorneys for Professional Blinds 

Systems, Inc. 

Rivera Law Firm, P.A. 

P.O. Box 211746 

Royal Palm Beach, FL 33421 

Raymond L. Robinson, Esq. 

Attorneys for Pamela Terry 

RobinsonLaw, P.A. 

1501 Venera Avenue, Suite 300 

Coral Gables, FL 33146 

Brandon J. Hechtman, Esq. 

Attorneys for Evolution Hospitality LLC and 

AMO Hospitality Group LLC 

Wicker Smith O’hara 

Mccoy & Ford, P.A. 

2800 Ponce de Leon Boulevard 

Suite 800 

Coral Gables, FL 33134 

Paul J. Battista, Esq. 

Mariaelena Gayo-Guitian, Esq. 

Attorneys for 777 N. Ocean Drive, LLC

Genovese Joblove & Battista, P.A. 

100 SE 2nd Street, Suite 4400 

Miami, Florida 33131 

Mark A. Journey, Esq. 

Scott Andron, Esq. 

Attorneys for Broward County, Florida 

Broward County Attorney 

Governmental Center, Suite 423 

115 South Andrews Avenue 

Fort Lauderdale, Florida 33301 

Julie Feigeles, Esq. 

Attorneys for Eduardo Reyes Herrera 

and Astrid Aurora Arevalo Molina 

Feigeles & Haimo LLP 

7900 Peters Road, Suite B-200 

Fort Lauderdale, FL 33324 

Kimberly Held Israel, Esq. 

Attorneys for United Leasing, Inc. 

McGlinchey Stafford 

10407 Centurion Parkway North, Suite 200 

Jacksonville, FL 32256 

Alberto H. Orizondo, Esq. 

Attorneys for Italkraft, LLC 

Law Office of Alexis Gonzalez, P.A. 

3162 Commodore Plaza, Suite 3E 

Coconut Grove, Florida 33133 

20 Largest Unsecured Creditors: 

(via U.S. Mail)

Centrada Solutions, LLC 

5010 Riverside Drive 

# 300 

Irving, TX 75039 

Cielo Restaurant LLC 

777 N Ocean Dr 

# SF 

Hollywood, FL 33019 

Case 19-22483-AJC Doc 97 Filed 10/15/19 Page 32 of 33
MASTER SERVICE LIST PER LOCAL RULE 2002-1(H) 

D-Essentials Inc. 

218 S Dixie Hwy 

Hallandale, FL 33009 

FA Development and Real Estate 

343 Commercial Street 

#212 

Boston, MA 02109 

General Caulking And Coatings Co., Inc. 

101 NW 176 St 

Mami, FL 33169 

Gustavo Carlos Lescovich Ramos 

Parada 6 de la Brava 

Edif Icon Bravia Depto #707 

Punta del Este 

URUGUAY 

Hyvac, Inc. 

312 S Military Trail 

Deerfield Beach, FL 33442 

Italkraft LLC 

2900 NW 77 Ct 

Doral, FL 33122 

JM Plastering, Inc. 

16333 NW 84 Ave 

Hialeah, FL 33015 

La Cuisine Intl Distributors, Inc. 

2005 NW 115 Ave 

Miami, FL 33172 

Mr. Glass Doors & Windows Inc. 

8120 NW 84 St 

Miami, FL 33166 

National Fire Protection, LLC 

3125 W Commercial Blvd 

# 200 

Ft Lauderdale, FL 33309 

Pablo Haeffner & Rita Cassia DaSilva 

c/o Alexander M. Turner, Esq. 

Law Offices of Alexander M. Turner, P.A. 

317 Seventy First St 

Miami Beach, FL 33141 

Poma Construction Corp. 

2049 SW Poma Dr 

Bldg#1 

Palm City, FL 34990 

Renacer LLC 

444 Brickell Ave 

Suite 828 

Miami, FL 33131 

Ruben Eduardo Reyes Herrera 

c/o Thomas R. Shahady 

Shahady & Wurtenberger, P.A. 

7900 Peters Rd, Ste B-200 

Fort Lauderdale, FL 33324 

SOS Security LLC 

PO Box 6373 

Parsippany, NJ 07054 

Stones Unlimited, LLC 

2114 SW 60 Way 

Miramar, FL 33023 

Unlimited Electrical Contractors 

3500 Park Central Blvd N 

Pompano Beach, FL 33064 

Case 19-22483-AJC Doc 97 Filed 10/15/19 Page 33 of 33