98-22682 RESO
Resolution No. 98-22682
RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, AUTHORIZING SETTLEMENT BY THE
MIAMI BEACH REDEVELOPMENT AGENCY IN EMINENT DOMAIN
PROCEEDINGS IN CONNECTION WITH THE SHORE CREST HOTEL,
LOCATED AT 1535 COLLINS AVENUE, MIAMI BEACH, FLORIDA
WHEREAS, the City Commission has heretofore, pursuant to Ordinance No. 97-3080 and
Resolution No. 97-22345, authorized the Miami Beach Redevelopment Agency (the "Agency"), to
acquire real property located at 1535 Collins Avenue, Miami Beach, Florida, and commonly known
as the "Shorecrest Hotel," and to institute eminent domain proceedings in connection therewith, for
the public purpose of, and in connection with, community redevelopment and related activities under
Chapter 163, Part III, Florida Statutes, and a City Center/Historic Convention Village
Redevelopment and Revitalization Area hotel project; and
WHEREAS, the Agency has instituted such eminent domain proceedings in an action in the
Circuit Court of the 11th Judicial Circuit in and for Dade County, Florida, styled Miami Beach
Redevelopment Agency v. Gisela Lizama Cardona. et. aI., Case No. 97-15520 (CA 22), and pursued
such action with diligence; and
WHEREAS, the trial of such eminent domain action was set for February 23, 1998; and
WHEREAS, prior to the commencement of said trial, the Agency received an offer of
settlement in said eminent domain action which is reasonable, will not cause the Agency to expend
any monies above the $10,000,000 heretofore allocated for the acquisition of the Royal Palm and
Shorecrest Hotels, and will avoid the expense of a trial.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Agency is hereby authorized
to compromise and settle all claims against the Agency in eminent domain proceedings for the parcel known
as the "Shorecrest Hotel," the address of which is 1535 Collins Avenue, Miami Beach, Florida, in an
amount not to exceed $4,690,000.00 of monies of the Agency, plus the amount of$I,075,000 to be
received by the Agency from RDP Royal Palm Hotel Limited Partnership.
PASSED and ADOPTED this
4th day of
Ma1li~
,1998.
MAYOR
ATTEST:
~~~p~
CITY CLERK
APPROVED AS TO
FORM & lANGUAGE
& FOR EXECUTION
F:\A1TO\LEVL\1I0TF.L\EMI)(JMSET.R~;S
dlt:1#~
ity Attomey
?/~t/ /tJf
Date
TY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139
Ip:\\cLmiami-beach. fl. us
;ITY OF MIAMI BEACH
COMMISSION MEMORANDUM NO.
14-3-9 r
TO:
Mayor Neisen O. Kasdin and
Members of the City Commission
,
DATE: March 4,1998
SUBJECT:
SHORECRE
FROM:
Sergio Rodriguez
City Manager
RECOMMENDATION
Approve the Resolution.
BACKGROUND
As part of the African-American Hotel Project, acquisition of the
Shorecrest Hotel is necessary. Authorization to acquire through
eminent domain was approved by the Commission and Redevelopment
Agency Board. At the same time, the Administration and parties of
interest have engaged in mediation and negotiations, and a
settlement agreement has been prepared.
ANALYSIS
The settlement agreement as presented to you today establishes full
compensation for the property to be $5,765,000, inclusive of
attorneys fees, expenses and costs. R. Donahue Peebles Companies,
Inc. ("Peebles") is responsible for a total of $1,075,000, of which
$310,000 has been given as a deposit to Jacob 1535 Properties, Inc.
("Jacob 1535"), $200,000 is being held in escrow by attorney Edward
Levinson, real estate counsel for Jacob 1535, and $565,000 is to be
paid to the Miami Beach Redevelopment Agency (RDA). The settlement
agreement obligates the RDA to pay $5,255,000, which includes the
$565,000 from Peebles, resulting In a total contribution of
$4,690,000 of RDA funds.
Initially, Peebles committed to a contribution of $1,000,000 toward
the acquisition of the Shorecrest hotel. The settlement agreement
is at a purchase price that is in excess of the original
commitments made by Peebles and the RDA. Peebles has agreed to
fund the additional $75,000 in order to achieve a settlement and
AGENDA ITEM ~ l I
DATE 3-4--~ 8
avoid the legal expense of a trial ln the pending eminent domain
proceeding.
The Administration believes that the negotiations have resulted in
a purchase price that is in keeping with the commitment made to the
African-American Hotel Project as originally proposed in 1993; the
RDA contribution of $4,690,000, together with the $5,310,000 paid
for the Royal Palm Hotel property fulfills the commitment of the
RDA and the City to provide $10,000,000 toward the development of
an African-American owned hotel on Miami Beach.
CONCLUSION
The Commission should adopt the resolution approving the settlement
agreement for the purchase of the Shorecrest Hotel.
SR'HSM~~jm