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Miami Beach

Redevelopment

Agency

1700onvent ion Center

Drive

Mam

Beach,

FIQrida

3 3 1 3 9

Teephone (305

6732 95

Fax: (

305) 673772

R E D E V E L O P M E N T

A G E N C Y

M E M O R A N D U M

NO .0-

5

anuary

10

001

TO

C h a i r m a n

a n d

Members

otheBoard

o

h e

Mam

e a c h

R e d e v e l o p m e n t Agency

R O M :Jorge

M

o n z a l e z Executive

Drector

6

UBJECT:

A

E S O L U T I O N

OHE

CHAIRMAN

ANDEMBERS OF

THE

I A M I

BEACH

E D E V E L O P M E N T

AGENCY, P P R O P R I A T I N G11

187

15 FROM

AVAILABLE

1998TAX INCREMENT R E V E N U E B O N D S INR D E R

TOE I M B U R S ERDP

ROY

ALM

L I M I T E D P A R T N E R S I D P TO

FUNDCERTAIN PERMIT

FEES

A S S E S S E DBY

HE

CTY S

B U I L D I N G

AND P L A N N I N G

DEPARTMENTSFOR

THE

O Y A LPALM

ROWNE

PLAZA

ESORT

P R O J E C T

IN

A C C O R D A N C E

WTH

SECTION

3a

F

H EHOTEL

D E V E L O P M E N T

A G R E E M E N T B E T W E E N

THE

M I A M I

B E A C H

R E D E V E L O P M E N T

AGENCYAND

RDP

O Y A L

PALM

LIMITED

P A R T N E R S H I P .

A D M I N I S T R A T I O N

R E C O M M E N D T I O N

Adopt the

R e s o l u t i o n .

A N A L Y S I S

P u r s u a n t

to

ection

6

3

)

o

h e

D e v e l o p m e n t

A g r e e m e n t

b e t w e e n

the

M i a m i B e a c h

R e d e v e l o p m e n t

A g e n c y

the

D A ) a n d RDP

Royal

P a l m

L i m i t e d

P a r t n e r s h i p

the

developer),he R D A ise s p o n s i b l efo

ayingany

n d

al

ermit

fees

required

tobeb t a i n e d f rom

the

ityfohec o n s t r u c t i o n

of

the

hotel,

which

include

without l i m i t a t i o n , all

building

permt

a p p l i c a t i o n s , i n s p e c t i o n

and

c e r t i f i c a t i o n

fees

nd

impact

a n d

c o n n e c t i o n

fees

that

he

Cty

evies

through

Public

W o rk s

and

th e

B u i l d i n g

D e p a r t m e n t .

The

D A h a s

b e e n

presented

wth

nvo ices

by

the

e v e l o p e r ,

r e f l e c t i n g

the

o l l o w i n

7/26/2019 378-2001 RESO

3/4

Permit:

Cty

Department

Amount

Temporary F e n c i n g

H~

P la n n in g D e p a rt m e n t -

Building

D e p a rt m e n t -

Public Works

D e p t -

00

00

08.85

6000

Temporary

C o n s t r u c t i o n

Water

C o n n e c t i o n

I n s t a l l a t i o n

o

indows

and

S l i d i n g Glass Doors

Bui lding

D e p a r t m e n t -

10,

3 7 8 .

30

Total:

11,

187.

15

o date,

The

RDAhas

pad

35,

16433in

Cty

e r m i tees

hich

i n c l u d e

the

main

b u i l d i n g ,

e l e c t r i c a l , m e c h a n i c a l , p l u m b i n g

fire,

waerand

ewer

impact a n d

c o n n e c t i o n

fees

and

d e m o l i t i o n

p e r m i t

feestthe

time

thee v e l o p m e n t A g r e e m e n t

was

pproved

by

he

RD A and

the

Cty

C o m m i s s i o n , theo n s t r u c t i o n

b u d g e t

c o n t a i n e d

in

the

D e v e l o p m e n t

A g r e e m e n t

ref lected

a

ine

te m

fo

u i l d i n g ermit Fees e s t i m a t e d toben

the

a m o u n t

o

51

34

Taking

into

c c o u n t

th e p a y m e n t s the

RDAhas

a d e

to

ate of

235,

164

3,

and

he p r o p o s e d

a d d i t i o n a l

costs p r e s e n t e d

h e r e i n

o

87.

l5

he

o t a l

c o s t s

to

te will

be45

351.48

hich

exceeds

the

budgein e

tem

ore r m i t

Fees

by3,

9 1 7 .48u t u r e

a d d i t i o n a l

fees

will

need

to

e

pad

n dwllnclude revised

b u i l d i n g

p e r m i t fees,r r i g a t i o n ,

r o o f i n g

certificate

o

c c u p a n c y ,

p r e m i s e

p e r m i t

a n dothere e s .

In

d d i t i o n

to

ermtf e e s

the

RDA

ay be r e q u e s t e d

tossume

further

c o s t s

as

a

esulto:

I)

a r k i n g

impact

ees

hat

will

be

a s s e s s e d

to

o m p l y

w i t h

parking

r e q u i r e m e n t s per

the

ontract,or

the

new

7-t o r y

r e p l a c e m e n t

towerfor

the

o y a l

Pam

HoteL2

emediat ion

oe t r o l e u m

c o n t a m i n a t i o n

found

on

ste3

Delay

camss

a

resuto

hee t r o l e u m c o n t a m i n a t i o n

and

s t r u c t u r a l

d e f i c i e n c i e s

w i t h

the

Roya

Palm

H o t e l , r e q u i r i n g

its

o m p l e t e

d e m o l i t i o n

an d

rebu i ld ing

P a r k i n g

Impact

fees

The

Royal Palm will

requirem o d i f i c a t i o n

oh e

D e v e l o p m e n t

A g r e e m e n t

between

the

D A

a n d

the

D P

to

prov i de additional

spaces

in

the

16t r e e t Garageor the p a y m e n to

p a r k i n g

i m p a c t f ees .

Based

on

the

r e l i m i n a r y

p l a n s

s u b m i t t e d ,

a

otal

of

107

a d d i t i o n a l

s p a c e s

wll

be

e e d e d

to

a t i s f y

z o n i n g

r e q u i r e m e n t s .

U n l e s s

a dd i t i o n a l

s p a c e s can

bedentified

in

the

6 th

S t ree t

G a r a g e

and/

or

ithin

1

200

7/26/2019 378-2001 RESO

4/4

Petroleum

Contamination

D u r i n g

the course

of

e x c a v a t i n g

the

foundations

for

the

R o y a l

Palm, two areas of

p e t r o l e u m -

contaminated soil

weeuncovered

by

Clark

Construction (

Contractor).

In

accordance

with the

indemnification

clause in

Section 35ofthe

HoeD e v e l o p m e n t

A g r e e m e n t

b e t w e e n

the

e d e v e l o p m e n t

A g e n c y

and

RDP

Royal

Palm

H o t e l ,

LP, (

the

e v e l o p e r ) ,

the

eveloper

s u b m i t t e d

two

eparate

c l a i m sfoe i m b u r s e m e n tofthecosss s o c i a t e d

w i t hthe

e m e d i a t i o n

of

theo n t a m i n a t e d

fill,

totaling 7 8 , 038.

Pursuant

to

an

analys is ofthe

l a i m sthe

RD Ahas

u t h o r i z e d

th e

r e i m b u r s e m e n t

of 146,333.9

to

dateA third claim

in

the

a m o u n t

of

14

611

has

been

r e j e c t e d

fo

a c k

o

dequate

j u s t i f i c a t i o n .

Delay

Cla i m s

T he

D e v e l o p e r

is

claiming

c o n s t r u c t i o n

d e l a y s stemming

from

the

oil c o n t a m i n a t i o n o m p r i s i n g

42

ay s an d

structural

d e f i c i e n c i e s ,

n e c e s s i t a t i n g

the

d e m o l i t i o n and r e b u i l d i n g

of

the

e v e n

sory Royal

Pam

o t a l i n g 184

days,

er

the

e v e l o p e r '

secords.

The

D e v e l o p e r isalso c l a i m i n g

an

d d i t i o n a l

262

daysintructural

d e l a y s

as

a

e s u l t

o

i t y 's

an

pproval/

e r m i t t i n g p r o c e s s .

T h e o n l y

c l a i m

to

have

a

o l l a r

a m o u n t a s s o c i a t e d

wth

t,

is

he

42

ay

soil-

c o n t a m i n a t i o n

c l a im ,

fo

hich

the

D e v e l o p e r

is

l a i m i n g

836,

085,Ino r r e s p o n d e n c e

d a t e d June

24,

9 9 9 ,

the City

A t t o m e y

denied

any

iab i l i t y

forthe

e l a y

cam

s indicated

in

e a r l i e r

r e p o r t s

to

the

RDA

B o a r d

outside

c o u n s e l

has

been

r e t a i n e d

to

determine

th e

extent (ifny

o

he

City/

Agency'

s

x p o sur e /

l i ab i l i t y

wthespect

to

he

Deveoper'

s

laims.

x t e n s i v e

d o c u m e n t a t i o n

n c l u d i n g

bu

noimi ted to

crit ical

path

c h e d u l e s , contractor

a n d sub-contractor

d a i l y r e p o r t s

and

c o n t r a c t u a l

a n d i n s u r a n c e

d o c u m e n t s

are

sill

be ing g a t h e r e d

and

s s e s s e d .A

inal d e t e r m i n a t i o n

as

to

any

m e r i t

he

d e l a y s

claimed

m a y not

be

ossible

u n t i l

th e

end

the

r o j e c t .

C O N C L U S I O N S

Inc c o r d a n c e w i t h ther o v i s i o n s

o

he

D e v e l o p m e n t

A g r e e m e n t ,

it

se c o m m e n d e d that

funds

bep p r o p r i a t e d

from

timeto

ime

to

pay

thee c e s s a r y

Cty

e r m i t

fees

or

the

oyal P a l m

Crownelaza proec.p o n

receipt

of r e q u e s t s

from

th e

developer

fo

a y m e n t

o

permit

f e e s , the A d m i n i s t r a t i o n

will

formalize

the

e q u e s t s

in

th e formo

r e s o l u t i o n s

a p p r o p r i a t i n g

the

r e q u i r e d

f u n d s .

In

hi s

case

he

a p p r o p r i a t i o n

requested

is

fo

1

8 7 .

1

5

too v e r c e r t a i n

p e r m i t

fees

s s e s s e d

by

the

ity'