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406-2002 RDA Reso RESOLUTION 406-2002 A RESOLUTION OF THE CHAIRMAN AND MEMBERS OF THE MIAMI BEACH REDEVELOPMENT AGENCY APPROPRIATING $95,440 FROM SOUTH POINTE TAX INCREMENT FUNDS, IN ACCORDANCE WITH THE SETTLEMENT AGREEMENT AMONGST THE CITY OF MIAMI BEACH, THE MIAMI BEACH REDEVELOPMENT AGENCY, AND WEST SIDE PARTNERS LIMITED, WITH RESPECT TO UNFORESEEN ADDITIONAL ENVIRONMENTAL REMEDIATION COSTS IN SSDI-NORTH AND FURTHER APPROPRIATING $93,600 TO PERFORM REPAIRS TO THE SEAWALL ALONG SSDI-SOUTH, REQUIRED PURSUANT TO THE AMENDED AND RESTATED GRANT OF BAYWALK EASEMENT. WHEREAS, in November 1995, the City of Miami Beach, the Miami Beach Redevelopment Agency (RDA) and the Portofino Group entered into a Development Agreement which was terminated in June 1997; and WHEREAS, in October 1998, the parties entered into a Settlement Agreement that transferred the deed to SSDI-North (which was held in escrow) to West Side Partners, Limited and sets forth the obligations of the parties with respect to the Development of SSDI-North and SSDI-South parcels; and WHEREAS, as part of the Settlement Agreement between the City of Miami Beach, the Miami Beach Redevelopment Agency and West Side Partners Limited, it was contemplated that West Side Partners would develop the SSDI-North parcel in two stages; and WHEREAS, the Developer, The Related Companies (TRG), which is purchasing the property from West Side Partners, provided notice that it intended to construct the SSDI- North parcel and to commence construction in September 2001; and WHEREAS, one of the surviving provisions of the 1995 agreement with Portofino addresses environmental assessment and remediation of SSDI-North; and WHEREAS, pursuant to Section 5.3 (f)(iii), a surviving provision of the Development Agreement, the Miami Beach Redevelopment Agency is responsible for payment of fifty percent of the environmental assessment and remediation costs associated with SSDI- North; and WHEREAS, there are two contamination sites, referred to as NEF-1 and NEF-2 and located on the SSDI - North property, requiring remediation prior to the initiation of the foundation work for the Murano Grande development; and WHEREAS, the areal extent of the contamination was observed to be greater than originally anticipated, resulting in cost overruns for NEF - 1 and NEF - 2, respectively, were realized in the amount of $88,240.91 and $102,635.95; and WHEREAS, the City I RDA is responsible for $44,120.45 and $51,319.48, respectively, for a total of $95,439.93; and WHEREAS, as part of the Settlement Agreement, the parties entered into a Grant of Baywalk Easement that grants the City a permanent and irrevocable non-exclusive easement along the baywalk; and WHEREAS, the City / RDA is obligated, at its sole cost and expense, to restore, maintain, repair and, as required, replace the bulkheads and seawall, in a first class condition; and WHEREAS, West Side Partners, Ltd., is obligated to construct the Baywalk, but the City / RDA has the ongoing obligation to maintain and restore the Baywalk; and WHEREAS, the City / RDA has separately entered into a Baywalk maintenance and operating agreement as a result of the City's Fourth Amendment to the Marina lease agreement; and WHEREAS, approximately 500 Linear feet of deteriorated seawall must be rehabilitated per the Settlement Agreement; and WHEREAS, after the initial cleaning was performed, it was observed that small to medium size holes were present in the sheet piles conforming the seawall, just below the waterline; and WHEREAS, it was determined that the most cost effective solution was to repair the holes on the landward side of the existing sheet piles by excavating the referenced area, installing a geotextile fabric along the landward side of the existing sheetpile and pouring a tremie concrete mix simultaneously when the above grade cap I bulkhead is constructed; and WHEREAS, the additional costs to address this repair at this time is approximately $93,600 or approximately $200 per linear foot. NOW, THEREFORE BE IT DULY RESOLVED BY THE CHAIRMAN AND MEMBERS OF THE MIAMI BEACH REDEVELOPMENT AGENCY, $95,440 is hereby appropriated from South Pointe Tax Increment funds, in accordance with the Settlement Agreement amongst the City of Miami Beach, the Miami Beach Redevelopment Agency, and West Side Partners Limited, with respect to unforeseen additional environmental remediation costs in SSDI-North and further, $93,600 is hereby appropriated to perform repairs to the seawall along SSDI-South, required pursuant to the Amended And Restated Grant Of Baywalk Easement. PASSED AND ADOPTED THIS 99bh day of January ,2002. ~ Attest: \\CH2\VOl1\CMGRJAGENOA'l2OO2\tAN0802\DA\ssdI.CMruo.doc o/-oS-'e ~CouniII ~.. CITY OF MIAMI BEACH COMMISSION ITEM SUMMARY m ~ Condensed Title: A Resolution Of RDA Appropriating $95,440 From South Pointe TIF, In Accordance With The Settlement Agreement With West Side Partners Limited, For Unforeseen Additional Environmental Remediation Costs In SSDI-North And Appropriating $93,600 To Perform Repairs To The Seawall Along SSDI-South, Required Pursuant To The Amended And Restated Grant Of Baywalk Easement. Issue: Environmental clean-up of polluted sites NEF-1 and NEF-2 at SSDI-North parcel required additional excavation of the contaminated soil, additional testing and analyses, contaminated soil treatment and disposal, and backfilling of the site with clean soil. Cost overruns were realized in the amount of $88,240.91 and $102,635.95 for NEF-1 and NEF-2 respectively. The City I RDA shares this expense, pursuant to the Settlement Agreement with TRG on a 50 % split, therefore, the City I RDA is responsible for $44,120.45 and $51,319.48, respectively, for a total of $95,439.93. In addition, approximately 500 Linear feet of deteriorated seawall from the existing Yacht Club south to Pier L must be rehabilitated per the Settlement Agreement. After the initial cleaning of the sheetpiles conforming the seawall was performed, it was observed that small to medium size holes were present just below the waterline. To repair the holes on the landward side of the existing sheet piles by excavating the referenced area, installing a geotextile fabric along the landward side of the existing sheetpile and pouring a tremie concrete mix simultaneously when the above grade cap I bulkhead is constructed require and additional cost at this time of approximately $93,600 or approximately $200 per linear foot. Item Summary/Recommendation: Appropriate from South Pointe TIF $95,439.93 for the additional costs of environmental remediation at SSDI-North and $93,600 for the repair of the seawall at SSDI-South. Advisory Board Recommendation: I N/A Financial Information: Amount to be expended: AGENDA ITEM DATE ~B /-'-0'- CITY OF MIAMI BEACH CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139 http:\\ci.miami-beach.lI.us REDEVELOPMENT AGENCY MEMORANDUM TO: FROM: Chairman and Members of the Board of the Miami Beach Redevelopment Agency Jorge M. Gonzalez ~a.. Executive Director DATE: January 9, 2002 SUBJECT: A RESOLUTION OF THE CHAIRMAN AND MEMBERS OF THE MIAMI BEACH REDEVELOPMENT AGENCY APPROPRIATING $95,440 FROM SOUTH POINTE TAX INCREMENT FUNDS, IN ACCORDANCE WITH THE SETTLEMENT AGREEMENT AMONGST THE CITY OF MIAMI BEACH, THE MIAMI BEACH REDEVELOPMENT AGENCY, AND WEST SIDE PARTNERS LIMITED, WITH RESPECT TO UNFORESEEN ADDITIONAL ENVIRONMENTAL REMEDIATION COSTS IN SSDI-NORTH AND FURTHER APPROPRIATING $93,600 TO PERFORM REPAIRS TO THE SEAWALL ALONG SSDI-SOUTH, REQUIRED PURSUANT TO THE AMENDED AND RESTATED GRANT OF BAYWALK EASEMENT. RECOMMENDATION: Adopt the Resolution. ANALYSIS: In November 1995, the City of Miami Beach, the Miami Beach Redevelopment Agency (RDA) and the Portofino Group entered into a Development Agreement which was terminated in June 1997. In October 1998, the parties entered into a Settlement Agreement that transferred the deed to SSDI-North (which was held in escrow) to West Side Partners, Limited and sets forth the obligations of the parties with respect to the Development of SSDI-North and SSDI-South parcels. As part of the Settlement Agreement between the City of Miami Beach, the Miami Beach Redevelopment Agency and West Side Partners Limited, it was contemplated that West Side Partners would develop the SSDI-North parcel in two stages. The Developer, The Related Companies (TRG), which is purchasing the property from West Side Partners, provided notice that it intended to construct the SSDI-North parcel and to commence construction in September 2001. On June 27, 2001, the Redevelopment Agency approved the appropriation of $3,184,054 to construct various improvements as required by the Settlement Agreement. Improvements included the SSDI- South seawall repair between the Yacht Club south to Pier L, environmental remediation at the NEF - 1 and NEF - 2 contamination sites, January 9, 2002 RDA- Commission Memorandum Appropriation for Additional Construction Costs at SSDI North and SSDI South Page 2 construction staging area, temporary curb cut and temporary parking lot facilities. To date, these improvements have been constructed or are in the process of being constructed. On July 18, 2001, the Redevelopment Agency approved an additional appropriation of $2,381,677 to construct various improvements as required by the Settlement Agreement. Improvements included the SSDI-North new seawall, seawall restoration, storm drainage relocation and valet parking obligations. Environmental Remediation One of the surviving provisions of the 1995 agreement with Portofino addresses environmental assessment and remediation of SSDI-North. Pursuant to Section 5.3 (f)(iii), a surviving provision of the Development Agreement, the Miami Beach Redevelopment Agency is responsible for payment of fifty percent of the environmental assessment and remediation costs associated with SSDI-North. In accordance with the Settlement Agreement, on May 17, 2001, West Side Partners provided written 90-day notice to remediate those contaminated areas on SSDI-North. On June 6, 2001, the RDA Board approved 50% reimbursement of some initial remediation work which consisted of the removal of five (5) underground tanks, contaminated soil excavation, contaminated material disposal, restoration of the parking area due to the tank removals, and preparation of the Tank Closure Assessment Reports (TCAR) by Nutting Environmental of Florida. Additionally, there are two contamination sites located on the SSDI - North property requiring remediation prior to the initiation of the foundation work for the Murano Grande development. These sites are referred to as NEF-1 and NEF-2. The work consisted ofthe following activities: · Excavation of contaminated soils · Disposal of the contaminated soils at an approved hazardous waste facility · Relocation of landscaping trees to accommodate the work effort · Restoration of the asphalt pavement to restore the existing Marina parking area Upon excavating the NEF - 1 and NEF - 2 sites, the areal extent of the contamination was observed to be greater than originally anticipated. Environmental regulations require the responsible entity to remove, treat and dispose of the contaminated source upon discovery. In order to verify the extent of on site contamination, field measurements were taken of the contaminated soil and analyzed as the site was being excavated. This procedure permitted the on-site professionals to evaluate the extent of contamination and determine where excavation limits were to cease. The majority of the cost overruns were experienced in the excavation of the contaminated soil, additional testing and analyses, contaminated soil treatment and disposal, and backfilling of the site with clean soil. Cost overruns for NEF - 1 and NEF - 2, respectively, were realized in the amount of $88,240.91 and $102,635.95. The City I RDA shares this expense, pursuant to the January 9, 2002 RDA-Comm~$onMemorondum Appropriation for Additional Construction Costs at SSDI North and SSDI South Page 3 Settlement Agreement with TRG on a 50 % split, therefore, the City / RDA is responsible for $44,120.45 and $51,319.48, respectively, for a total of $95,439.93. A request for No Further Action has been submitted to the environmental agencies in support of ceasing remedial activities. Amended and Restated Grant of B~alk Easement As part of the Settlement Agreement, the parties entered into a Grant of Baywalk Easement that grants the City a permanent and irrevocable non-exclusive easement along the baywalk. The City is obligated, at its sole cost and expense, to restore, maintain, repair and, as required, replace the bulkheads and seawall, in a first class condition. West Side Partners, Ltd.. is obligated to construct the Baywalk, but the City has the ongoing obligation to maintain and restore the Baywalk. The City / RDA has separately entered into a Baywalk maintenance and operating agreement as a result of the City's Fourth Amendment to the Marina lease agreement. Seawall Rehabilitation. Approximately 500 linear feet of deteriorated seawall from the existing Yacht Club south to Pier L must be rehabilitated per the Settlement Agreement. TRG prepared two (2) alternative designs for the repair of the seawall at this location. The implemented alternative comprised of a retaining wall anchored to the root of the existing steel sheetpile. This was a structural solution that brought the bulkhead into compliance with structural code requirements and would provide a service life of approximately 25 years or more. One of the first steps that the Contractor must take to prepare the existing sheetpile wall is to 'hydroblast' or pressure clean the metal surface of the exposed sheetpile from the existing bulkhead to or below the waterline. This process is necessary to remove deteriorated metal, barnacles and other marine growth. After the initial cleaning of the sheetpiles was performed, it was observed that small to medium size holes were present just below the waterline. These holes do not pose a structural stability concern at this time, but do allow for the contained soils on the landward side of the sheeting to migrate into the bay due to tidal effects. Future repairs will be likely if not corrected at this time. A field meeting with all parties was conducted with the contractor, subcontractor. structural designer and the City's representative, Hazen and Sawyer. It was determined that the most cost effective solution was to repair the holes on the landward side of the existing sheet piles by excavating the referenced area, installing a geotextile fabric along the landward side of the existing sheetpile and pouring a tremie concrete mix simultaneously when the above grade cap / bulkhead is constructed. The additional costs to address this repair at this time is approximately $93,600 or approximately $200 per linear foot. Negotiations with the contractor are ongoing and are not final at this time. Time is of the essence due to the marina's / contractor's current schedule. the existing baywalk disruption and loss of contractor productivity. Performing , j January 9, 2002 RDA- Commission Memorandum Appropriation for Additional Construction Costs at SSDI North and SSDI South Page 4 the repairs at a later date does not only compromise the completion of the seawall / bulkhead and / or the permanent baywalk, but will also increase costs considerably due to future mobilization, restrictions to be encountered at the project site and disruptions to the marina activities. In order to proceed with the repair of the seawall and compensate the contractor for the additional environmental remediation work previously performed, it is necessary and recommended that the Board appropriate $189,039.93 from the South Pointe Tax Increment Funds to comply with the City / RDA's obligations pursuant to the Settlement Agreement. JMG/C~/rar \\CH2\VOL 1\CMGRlAGENDA\2OO21JAN0902IRDAIssdi.CM.doc