086-1999 LTC
Miami Beach
Redevelopment Agency
1700 Convention Center Drive
Miami Beach, Florida 33139
Telephone: (305) 673- 7295
Fax: (305) 673- 7772
L.T.C. NO. 86-1999
LETTER TO COMMISSION
April 7, 1999
TO: Mayor and Members of the City Commission
FROM: Sergio Rodriguez, City Manager
SUBJECT: Beachwalk Project
Background
On April 28, 1995, the City/RDA engaged Coastal Systems International, a multi-disciplined
engineering firm, specializing in coastal construction and permitting, to develop design plans for
an extension of the Beachwalk between 21st Street (where the existing wooden boardwalk ends)
and Lummus Park. The project is important to hotel properties fronting the proposed route, and is
part of the City's obligations under the terms of the Loews agreement.
To date, the consultants have completed working drawings, as well as a report describing the scope
of the project, the physical/environmental considerations pertaining to the proposed layout and
composition of the Beachwalk, and construction cost estimates associated with building the project.
Copies of the consultant's report and plans for the proposed Beachwalk were provided to the City
Commission at the Commission Meeting of September 24, 1997.
The plans have been well received by the State of Florida's Department of Environmental Protection
and Miami-Dade County's Department of Environmental and Resource Management, as well as
affected beachfront property owners along the proposed route, who provided extensive input into
the design of the project. On March 25, 1998, the Department of Environmental Protection
approved the permit for the proposed project pending a fourteen-day public noticing period, during
which time any person(s) whose interests were affected by the State's intent to issue the permit,
could file a request for an Administrative Hearing in accordance with Section 120.569 and 120.57
ofthe Florida Statutes. The owners ofthe Richmond Hotel, who have opposed the project from the
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beginning, filed for a hearing, which occurred in August, 1998. This legal process has since
delayed the project.
Analysis
The owners of the Richmond Hotel have challenged the Beachwalk project on the grounds that it
would negatively impact their property due to increased pedestrian traffic, affect accessibility to the
beach from their property and have a negative impact on the environment. In anticipation of of this
opposition, Coastal Systems was directed to re-design the project, interrupting the Beachwalk on
the south side of the Richmond's property and picking up again on the north side. The revised plan
was subsequently approved by the State.
The City engaged Earl G. Gallop of Nagin Gallop Figueredo, specializing in environmental
litigation, as outside counsel to represent the City throughout the Administrative Hearing process.
On Monday, December 14, 1998, the presiding Judge issued a recommended order subject to
exceptions and/or recommendations to be provided by both parties (the Richmond and the
City/RDA) . The City's primary exception to the recommended order was a provision in the ruling
to not allow construction during turtle nesting season (May through October). Property owners
along the proposed Beachwalk route have requested the project to be built during the off season and
to be phased during certain times of the day and week in order to mitigate the impact on beachgoers.
Unfortunately, the off season coincides with the turtle nesting season.
On January 28, 1999, the DEP Deputy Secretary remanded the order back to the Administrative
Hearing Judge, requesting further justification as to how the proposed project serves as an erosion
control project. On March 16, 1999, the Judge delivered a proposed recommended order to the
parties. The parties have until April 2, 1999, to provide their respective exceptions and/or
recommendations. Earl Gallop, the City/RDA's attorney, is responding that more than enough
evidence has been presented to demonstrate how the Beachwalk will serve as an erosion control
device, and that this evidence should be considered by the DEP in rendering a final order. It is
anticipated that the Richmond will request further evidentiary hearings to further delay the project.
The Judge must then finalize the recommended order to submit back to the DEP, which has 90
days from April 2nd to issue a final order. If the order is favorable to the City/RDA, the Richmond
will have 30 days to file an appeal or a motion for injunctive relief, the latter of which could stall
the project indefinitely.
Planning and Financial Considerations
More than two years has been spent designing and obtaining State and County approvals for the
Beachwalk project, the first such project ever approved in the State of Florida by the DEP. The
project was conceived as a means to provide an attractive and environmentally sensitive linkage
between the existing boardwalk, where it ends at 21 st Street and Ocean Drive. An exhaustive
amount of time was spent in meeting with individual property owners, to present, discuss and in
some cases, negotiate specific design details relating to their respective properties. More than thirty
meetings were held with individual property owners, with each of the meetings resulting in design
modifications to the specific affidavits and/or easement agreements that were individually drafted
to satisfy each particular property owner's concerns. Additionally, since the proposed layout of the
Beachwalk meanders landward of the Erosion Control Line (ECL) on some of the hotel properties
fronting the project, easement agreements were required between those properties involved and
the City of Miami Beach. Of the twenty-three properties fronting the project, six properties
required easement agreements.
Also, at the request of property owners, the Beachwalk plan was expanded to include the
streetends, which had originally been contemplated for construction in the TCCEA budget. The
current layout of the two street-ends poses severe limitations for traffic circulation and parking,
especially as it relates to the operations of the Delano and Ritz Plaza Hotels. The importance of
access points and addressing traffic and parking concerns on 17th and 18th Streets was strongly
emphasized. Coastal Systems has developed conceptual plans and cost estimates for the extension
of 17th and 18th Streets, seaward to the ECL. Coastal Systems is recommending to extend and
reconstruct both street-ends to match the Boardwalk motif. The street-end cul-de-sacs are proposed
to be relocated approximately 50 to 70 feet east, respectively, to enhance the conditions of the streets
and improve the street-end layout. Extension and reconstruction of the two street-ends will require
demolition and reconstruction of the public right-of-way with new curbing, paver block sidewalks,
asphalt pavement, striping and signage. The preliminary estimated cost to undertake these
improvements is approximately $610,000. TCCEA originally approved funding for the streetends;
however, the funding must be appropriated by the City Commission.
The total budget for the Beachwalk project was $3,000,000, funded through the 96B Series TIF
Bonds. The original contract for Coastal Systems was negotiated at $300,000, or 10 percent of the
$3,000,000 budget allocated towards the Beachwalk project. Since a project of this nature had
never been successfully tested before in the State of Florida, neither the Administration nor
Coastal Systems was able to anticipate some of the complex issues that arose. Addressing these
issues required a significant amount of additional work by Coastal Systems, exceeding the scope
of their contract.
On July 15, 1998, the City Commission approved an amendment to Coastal System's contract in
the amount of $150,000, to undertake construction drawings and implementation of the 17th and
18th Street-end improvements, to participate in the Administrative Hearing as required, to
complete the permitting process, and manage the construction of the project.
As indicated earlier, the anticipated cost to undertake the street-end improvements on 17th and 18th
Street is $610,000. Coastal Systems has already completed the design work, which has been funded
from the Beachwalk budget. These expenditures, totaling approximately $61,000, need to be
reimbursed upon appropriation of TCCEA funding for the streetscape project.
Project Exposure to Date
Total Project Budget (Beachwalk):
Source: 96B TIF Bond Series
Less:
$3,150,000
Costs paid-to-date
$ 302,000
Total cost to complete:
$2,848,000
Total Project Budget (17th & 18th Street Streetends): $610,000
Source: TCCEA
Less:
Costs paid-to-date: (A&E) $ 61,000(00)
Total cost to complete: $549,000
Note: (CD) Funded with 96B Bond Series funds under the Beachwalk budget - to be reimbursed
upon appropriation of TCCEA funding.
Legal expenses incurred as a result of the Administrative Hearing, were estimated as part of a
litigation plan and budget proposal submitted by Earl Gallop in May, 1998. The estimated cost was
$38,500 for pre-trial, trial and post trial proceedings. However, due to the remanding of the final
order by the Deputy Secretary of the DEP, and the potential for further evidentiary hearings, the
legal costs have already exceeded the original estimate by approximately $40,000. Funding for legal
costs was not anticipated as part ofthe original project budget. As a result of the Loews constructing
their own portion of the beachwalk, the proposed construction budget may realize some cost savings
that can be allocated to cover this unanticipated cost.
Conclusion
In the event the final order is favorable to the City/RDA, the Administration recommends
proceeding with compiling the bid package for construction of the project. Coastal systems is in the
process of finalizing the construction plans and technical specifications for the project, as well as
preparing a construction schedule and a unit-price update based in '99 dollars.
Property owners along the proposed route have requested the project be built during the off season
(May though October) and phased during certain times of the day and week. The Judge's order
however, contains a provision that the project cannot be built during turtle nesting season, which
coincides with the off-season period. Although the City/RDA has contested this, it is uncertain
whether the Judge will concede on this issue. If the Judge does not concede, it would be premature
to award a construction contract until the following year. From the time the bid request is advertised,
it will take approximately six to seven weeks to receive, select and award a contract. The
construction is estimated to take six months. Even if the order is favorable and does not contain the
turtle nesting condition, the City/RDA may have to wait till the following year to award
construction, since the window in which to build the project is rapidly approaching.
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cc: Janet Gavarrete, Assistant City Manager
Christina Cuervo, Assistant City Manager
Julio Grave De Peralta, Public Works Director
Mercedes Sosa, Assistant Public Works Director
Kent O. Bonde, Redevelopment Coordinator