384-2001 RESO
RESOLUTION
384-2001
A RESOLUTION OF THE CHAIRMAN AND MEMBERS OF THE MIAMI
BEACH REDEVELOPMENT AGENCY, APPROPRIATING $9,600 FROM
AVAILABLE 1998 TAX INCREMENT REVENUE BONDS IN ORDER TO
REIMBURSE RDP ROYAL PALM LIMITED PARTNERSHIP TO FUND
CERTAIN PERMIT-RELATED FEES ASSESSED BY THE CITY'S
BUILDING DEPARTMENT FOR THE ROYAL PALM CROWNE PLAZA
RESORT PROJECT IN ACCORDANCE WITH SECTION 6.3(a) OF THE
HOTEL DEVELOPMENT AGREEMENT BElWEEN THE MIAMI BEACH
REDEVELOPMENT AGENCY AND RDP ROYAL PALM LIMITED
PARTNERSHIP.,
WHEREAS, On May 28, 1998, the Miami Beach Redevelopment Agency ("Redevelopment
Agency") and RDP Royal Palm Hotel Limited Partnership ("Developer") executed the Lease
Agreement, the Hotel Development Agreement and other related agreements for the development
and operation ofthe Royal Palm Crowne Plaza Resort in Miami Beach, Florida; and
WHEREAS, in accordance with Section 6,3(a) of the Hotel Development Agreement, the
Redevelopment Agency is responsible for paying any and all permit fees required to be obtained
from the City of Miami Beach for the construction of the hotel, which include without limitation, all
building permit applications, inspection and certification fees and impact and connection fees that the
City levies through its Public Works and Building Departments; and
WHEREAS, funding needs to be appropriated from time to time in order to pay said permit
fees as required,
NOW, THEREFORE BE IT DULY RESOLVED BY THE CHAIRMAN AND
MEMBERS OF THE MIAMI BEACH REDEVELOPMENT AGENCY, that the Chairman
and Members of the Miami Beach Redevelopment Agency authorize the appropriation of $9,600
from available 1998 Tax Increment Revenue Bonds to reimburse RDP Royal Palm for certain pel1l1it-
related fees assessed by the City's Building Department in connection with the Royal Palm Crowne
Plaza Resort Project in accordance with Section 6,3(a) of the Hotel Development Agreement between
the Miami Beach Redevelopment Agency and RDP Royal Palm Limited Partnership,
PASSED AND ADOPTED this 6th day of June, 2001
a~4 ,I ^
1 , l( ~HAIRMAN
APPROVED AS TO
FORM & LANGUAGI
. FOR EXECUTION
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SECRETARY
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MIAMI BEACH REDEVELOPMENT AGENCY
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CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139
www.ci.miami-beach.fl.us
MEMORANDUM NO. 01-,). t
To:
Chairman and Members of
the Miami Beach Redevelopment Agency
Date: June 6, 2001
From:
Jorge M, Gonzalez
Executive Director
OA
Subject:
A RESOLUTION OF THE CHAIRMAN AND MEMBERS OF THE MIAMI
BEACH REDEVELOPMENT AGENCY, APPROPRIATING $9,600.00
FROM AVAILABLE 1998 TAX INCREMENT REVENUE BONDS IN
ORDER TO REIMBURSE RDP ROYAL PALM LIMITED PARTNERSHIP
TO FUND CERTAIN PERMIT-RELATED FEES ASSESSED BY THE
CITY'S BUILDING DEPARTMENT FOR THE ROYAL PALM CROWNE
PLAZA RESORT PROJECT IN ACCORDANCE WITH SECTION 6.3(a) OF
THE HOTEL DEVELOPMENT AGREEMENT BETWEEN THE MIAMI
BEACH REDEVELOPMENT AGENCY AND RDP ROYAL PALM LIMITED
PARTNERSHIP..
ADMINISTRATION RECOMMENDATION:
Adopt the Resolution.
ANALYSIS
Pursuant to Section 6.3(a) ofthe Development Agreement between the Miami Beach Redevelopment
Agency (the RDA) and RDP Royal Palm Limited Partnership (the developer), the RDA is
responsible for paying any and all permit fees required to be obtained from the City for the
construction of the hotel, which include without limitation, all building permit applications,
inspection and certification fees and impact and connection fees that the City levies through Public
Works and the Building Department. The RDA has been presented with an invoice from the City's
Building Department in the amount of$9,600, for outstanding permit revision fees incurred by the
Developer.
DATE
3B
r; -6-el/
AGENDA ITEM
To date, the RDA has paid $246,351.48 in City permit fees, which include the main building,
electrical, mechanical, plumbing, fire, water and sewer impact and connection fees, demolition
permit fees and Planning related fees, Taking into account the payments the RDA has made to date
of $246,35.48, and the proposed additional costs presented herein of $9,600 the total costs to date
will be $255,951.48. Remaining fees to be to be paid include any additional revisions to the building
permit, irrigation, roofing, certificate of occupancy, premise permit and other any other fees required
to complete the hotel.
In addition, as indicated in previous reports, the RDA may be requested to assume further costs as
a result 0 f:
1) Remediation of petroleum contamination found on site.
2) Delay claims as a result of the petroleum contamination and structural deficiencies
with the Royal Palm Hotel, requiring its complete demolition and rebuilding.
Petroleum Contamination
During the course of excavating the fonndations for the Royal Palm, two areas of petroleum-
contaminated soil were uncovered by Clark Construction (Contractor). In accordance with the
indemnification clause in Section 35 of the Hotel Development Agreement between the
Redevelopment Agency and RDP Royal Palm Hotel, LP, (the Developer), the Developer submitted
two separate claims for reimbursement of the costs associated with the remediation of the
contaminated fill, totaling $178,038. Pursuant to an analysis of the claims, the RDA has authorized
the reimbursement of $146,333.59 to date. A third claim in the amount of$14,6ll has been rejected
for lack of adequate justification.
Delay Claims
The Developer is claiming construction delays stemming from the soil contamination, comprising
42 days and structural deficiencies, necessitating the demolition and rebuilding of the seven-story
Royal Palm, totaling 184 days, per the developer's records, The Developer is also claiming an
additional 262 days in structural delays as a result of City's plan approvallpermitting process. The
only claim to have a dollar amount associated with it, is the 42-day soil-contamination claim, for
which the Developer is claiming $836,085. In correspondence dated June 24, 1999, the City
Attomey denied any liability for the delay claim. As indicated in earlier reports to the RDA Board,
outside counsel has been retained to determine the extent (if any) of the City/Agency's
exposure/liability with respect to the Developer's claims. Extensive documentation, including but
not limited to critical path schedules, contractor and sub-contractor daily reports and contractual and
insurance documents are still being gathered and assessed. A final determination as to any merit of
the delays claimed may not be possible until the end of the project.
CONCLUSIONS
In accordance with the provisions of the Development Agreement, it is recommended that funds be
appropriated in the amount of $9,600 to cover outstanding fees assessed by the City's Building
Department for revisions to the Developer's plans.
JMG/C~ob
T:\AGENDA \2001 \jun060 1 \RDA \Royalpalmpermit2.doc