1655-11 African American/Blacks REAL ESTATE
Peebles ordered to pay
12�/I in hotel l
'1 ®A judge ordered a including lead builder Clark Peebles lawyer Stuart
I $12 million payment for Construction,said the delays Hoffman said Peebles did not
the contractors on the were the developer's respon- dispute many of the judge's
Royal Palm Crowne Plaza, sibility. findings and that the Arqui-
saying cost overruns on "How were we supposed, tectonica and Miami Beach
the much-delayed project to finish on time when we settlements would cover
are the developer's fault. were supposed to be remod- most of the damages Bandstra
eling a building we ended up awarded.Clark would receive
BY DOUGLAS HANKS III tearing down?" Sid Jordan,a about $6 million under the
dhanksdterald.com Clark division president,said order, with McCugh Con-
A federal judge has in an interview. trete Construction receiving
ordered the developer of the Peebles had agreed to pre- $4.4 million and two other
Royal Palm Crowne Plaza to serve the original Royal Palm subcontractors receiving less
pay$12 million to contractors Hotel but had to demolish the than$1 million each.
over delays in the construe- entire structure once engi-
tion
SETTLING WITH CITY
of the South Beach neers declared the historic
resort. building unsalvageable. The Peebles and the city plan
U.S. District Judge Ted delays pushed the original to finalize a settlement of
Bandstra found RDP Royal $30 million price tag on the their dispute next month,
Palm Hotel responsible for project well beyond$40 mil- including at least two years of
the extra two years it took to lion,Jordan said. free rent on the city-owned
finish the 422-room complex, Jordan said the construc- land and the option to con-
a delay that led to a pro- tion drawings were also vert one of the two buildings
tracted battle between the faulty,contributing to delays. to a hotel condominium,said
city of Miami Beach and R. Miami's Arquitectonica, Peebles lawyer Stuart Hoff-
Donahue Peebles, the RDP architect of the project, man.Peebles still must pay 20
principal who led the devel- agreed to pay Peebles's firm percent of the hotel's reve-
opment. $4.7 million under a settle- nues to Miami Beach.
ment over problems with the Peebles is expected to
PEEBLES' DEFENSE drawings,according to Band- appeal the verdict. Miami
Peebles blamed the prob- stra's ruling. Beach had hoped to recoup
lems on ground contamina- Arquitectonica blamed the some of its settlement with
tion, structural problems on dispute on an engineering him with proceeds from the
part of an existing hotel the firm that later became suit, which he had brought
city ordered him to preserve embroiled in a scandal over against the contractors.
and other issues he said were faulty work on the Dadeland The contractors and Pee-
largely Miami Beach's Station shopping center. An bles are likely to negotiate
responsibility. Arquitectonica spokesman over a settlement to avoid an
In lawsuits, RDP Royal could not be reached for appeal,said Raymond Robin-
Palm also blamed contrac- comment late Wednesday son,a Miami lawyer for Tal-
tors,architects and engineers afternoon,and the firm's law- mac, a mason subcontractor
for delays. The contractors, yer declined to comment. which was awarded$770,000.