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-SMG 

Chapter 11 

 Debtor. 

 / 

INTERIM ORDER GRANTING DEBTOR’S AMENDED EXPEDITED MOTION FOR 

INTERIM (1 MONTH) USE OF CASH COLLATERAL 

NUNC PRO TUNC TO SEPTEMBER 19, 2019 

THIS MATTER came before the Court on October 2, 2019 at 10:00 a.m. for hearing upon 

the Debtor's Amended Expedited Motion of the Debtor for Interim (1 month) Use Cash Collateral 

Nunc Pro Tunc to September 19, 2019 (the "Motion") [ECF Nos. 17 and 23]. The Court having 

reviewed the Motion, having heard statements for counsel for Beauchamp Construction Co., Inc. 

(“Beauchamp”) that Beauchamp’s rights should be preserved, having heard the statements of 

 

1

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

4883778. 

ORDERED in the Southern District of Florida on October 7, 2019.

Scott M. Grossman, Judge

United States Bankruptcy Court

_____________________________________________________________________________

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counsel in support of the relief requested in the Motion at the hearing before the Court (the 

"Hearing"); and the Court finding that: (a) the Court has jurisdiction over this matter pursuant to 

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

(c) this matter is core pursuant to 28 U.S.C. § 157(b)(2); (d) notice of the Motion and the Hearing 

was sufficient under the circumstances; and (e) 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 October 18, 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 hereto as Exhibit A (the "Preliminary Budget"). 

The Debtor shall not exceed any line item on the Preliminary 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 Preliminary 

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 not within any of the approved line items in the Preliminary 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 777 N. Ocean Drive LLC (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 

Case 19-22483-CLC Doc 69 Filed 10/08/19 Page 2 of 8
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shall file a motion with the Court seeking amendment of the Preliminary 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 Loan with the Debtor (the “Loan”) or the security interests and 

liens of the Secured Lender 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 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 

documents executed in connection with the Loan. 

4. Adequate Protection to Secured Lender: The Secured Lender is hereby granted 

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 

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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 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. 

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

documentation. 

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

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 applicable non-bankruptcy law (including, 

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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 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 

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

any part thereof. 

Furthermore, 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. 

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

collateral on October 16, 2019 at 10:30 a.m. at the United States Bankruptcy Courthouse, 299 E. 

Broward Blvd, Courtroom 308, Fort Lauderdale, FL 33301. 

9. 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-CLC Doc 69 Filed 10/08/19 Page 6 of 8
09/19/19 ‐ 10/18/19

UNRESTRICTED CASH

Total Unrestricted Cash 140,363

REVENUES

Hotel Revenues

Rooms Revenue 129,853

Miscellaneous Income 19,625

Other Operated Departments Revenues 104

Total Hotel Operating Revenue 149,582

Shared Facilities Revenues

Assessments ‐ Homeowners 150,000

Total Shared Facilities Revenues 150,000

TOTAL REVENUES 439,945

EXPENSES

Hotel Departmental Expenses

Rooms Expense (Including Payroll) 76,294

Other Operated Departments Expenses 83

Total Departmental Expense 76,378

Hotel Operating Expenses

Administration And General (Including Payroll) 57,678

IT Systems 13,311

Sales And Marketing (Including Payroll) 42,642

Repairs And Maintenance 2,223

Total Hotel Undistributed Expenses 115,855

Other Hotel Expenses

Base Management Fee 35,000

Property & Liability Insurance 304

Condo Owners Payments Due 58,434

Total Other Expenses 93,738

Shared Facilities Administrative Expenses

Office Supplies 300

Printing and Copying 400

Postage 800

Bank Fees 100

Cell Phone Allowance 320

Management Fee 3,500

Total Shared Facilities Administrative Expenses 5,420

Shared Facilities Utilities

Gas & Diesel 1,479

EXHIBIT A

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Water/Sewer 14,338

Telephone / Internet / Cable 13,762

Total Shared Facilities Utilities 29,579

Shared Facilities Contracts

Beach Services 9,500

Copier 850

Equipment Contract ‐ Health Club 2,173

Equipment Contract ‐ Fire Saftey 10,668

HVAC System 1,950

Lawn Maintenance 1,500

Pool/Spa Contract 1,745

Trash Removal 1,430

Total Shared Facilities Contracts 29,817

Shared Facilities Repairs & Maintenance

Supplies Maintenance 1,200

Pool‐ Supplies Equipment & Repairs 1,000

Communications Equipment (Radios) 458

Total Shared Facilities Repairs & Maintenance 2,658

Shared Facilities Salaries

Engineering Staff 27,000

Owner Relations Staff 8,500

Housekeeping Staff 4,500

Total Shared Facilities Salaries 40,000

Other Expenses

Administrative Fees 13,500

Maintenance Staff 8,000

Total Other Expenses 21,500

TOTAL EXPENSES 414,944

NET INCOME 25,001

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