394-2001 RESO
RESOLUTION
(194-2001
A RESOLUTION OF THE CHAIRMAN AND MEMBERS OF THE
MIAMI BEACH REDEVELOPMENT AGENCY, APPROPRIATING
$11,002.00 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.
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 of the Royal Palm Crown Plaza Resort in Miami Beach,
Florida; and
WHEREAS, in accordance with Section 6.3(a) of the Development Agreement between
the Redevelopment Agency and the Developer, the Redevelopment Agency 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; 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 THE
MEMBERS OF THE MIAMI BEACH REDEVELOPMENT AGENCY, that the Chairman
and Members of the Miami Beach Redevelopment Agency, appropriating $11,002.00 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
PASSED AND ADOPTED this ~ day of September, 2001.
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CHAIRMAN
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SECRETARY
MIAMI BEACH REDEVELOPMENT AGENCY
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH. FLORIDA 33139
www.ci.miami-beach.f1.us
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MIAMI BEACH REDEVELOPMENT AGENCY MEMORANDUM
To:
Chairman and Members of
:::::~:::e~ede~O;(ency
Executive Director 0
Date: September 5, 2001
From:
Subject:
A RESOLUTION OF THE CHAIRMAN AND MEMBERS OF THE MIAMI
BEACH REDEVELOPMENT AGENCY, APPROPRIATING $11,002.00
FROM AVAILABLE 1998 TAX INCREMENT REVENUE BONDS IN
ORDER TO REIMBURSE RDP ROYAL PALM LIMITED PARTNERSHIP
TO FUND CERTAIN PERMIT-RELATED FEES ASSESSED BY THE
CITY'S BUILDING DEPARTMENT FOR THE ROYAL PALM CROWNE
PLAZA RESORT PROJECT IN ACCORDANCE WITH SECTION 6.3(a) OF
THE HOTEL DEVELOPMENT AGREEMENT BETWEEN THE MIAMI
BEACH REDEVELOPMENT AGENCY AND RDP ROYAL PALM LIMITED
PARTNERSHIP.
ADMINISTRATION RECOMMENDATION:
Adopt the Resolution.
ANALYSIS
Pursuant to Section 6.3(a) of the Development Agreement between the Miami Beach Redevelopment
Agency (the RDA) and RDP Royal Palm Limited Partnership (the developer), the RDA is
responsible for paying any and all permit fees required to be obtained from the City for the
construction of the hotel, which include without limitation, all building permit applications,
inspection and certification fees and impact and connection fees that the City levies through Public
Works and the Building Department. The RDA has been presented with an invoice from the
Developer of the Project, in the amount of$II,002.00, for reimbursement of Building Department
permit fees incurred and paid by TM Architectural Products, the glazing subcontractor, for permits
associated with the design and installation of the windows, curtain walls and storefront systems in
the Project.
AGENDA ITEM
JB
DATE
1-5--0/
.
To date, the RDA has paid $255,951.48 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$255,951.48, and the proposed additional costs presented herein of$II,002.00 the total costs to
date will be $266,953.48. 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 of:
1) Remediation of petroleum contamination found on site.
2) Delay claims as a result ofthe petroleum contamination and structural deficiencies
with the Royal Palm Hotel, requiring its complete demolition and rebuilding.
Petroleum Contamination
During the course of excavating the foundations for the Royal Palm, two areas of petroleum-
contaminated soil were uncovered by Clark Construction (Contractor). In accordance with the
indenmification 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$14,611 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 approval/permitting 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 $11,002.00 to cover the reimbursement to the Developer for permit
fees assessed by the City's Building Department for the windows and storefront systems utilized in
the Project.
~~~-~-~
,
Royal Palm Crown Plaza Project
Analysis of Permit Fees for Windows/Storefronts
Per Buildina Department Records
Activity #
B0102311
B0103092
Assed fee Date Paid Amount Paid
4,690.80 2,000.00
06/01/2001
500.00
07/03/2001 284.30
11,002.00 $ 11,002.00
80102595 Curtain wall installation
1:30102970
80103093 Royal Palm 7 Story &