321-99 RDA
RESOLUTION
321-99
A RESOLUTION OF THE CHAIRMAN AND MEMBERS OF THE MIAMI
BEACH REDEVELOPMENT AGENCY, APPROPRIATING $39,869.85
FROM AVAILABLE 1998 TAX INCREMENT REVENUE BONDS, IN
ORDER TO REIMBURSE RDP ROYAL PALM LIMITED PARTNERSHIP
FOR REMEDIATION COSTS INCURRED IN CONNECTION WITH THE
ROYAL PALM CROWNE PLAZA RESORT PROJECT, IN ACCORDANCE
WITH THE INDEMNIFICATION CLAUSE IN SECTION 35 OF THE
HOTEL DEVELOPMENT AGREEMENT BETWEEN THE MIAMI BEACH
REDEVELOPMENT AGENCY AND RDP ROYAL PALM LIMITED
PARTNERSHIP; AND APPROPRIATING $688.00 TO FUND ADDITIONAL
MECHANICAL PERMIT FEES 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 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 Crowne Plaza Resort in Miami Beach, Florida; and
WHEREAS, the Developer has uncovered areas of petroleum-contaminated soil on the Royal
Palm and Shorecrest properties; and
WHEREAS, in accordance with the Indemnification Clause in Section 35.3 of the Hotel
Development Agreement, the Developer has communicated that it is seeking reimbursement for costs
associated with the remediation of the contaminated soil; and
WHEREAS, on April 14, 1999, the Chairman and Members of Redevelopment Agency
adopted a Resolution appropriating $74,638 to cover the City water and sewer impact and
connection fees in the amount of $25,240, and mechanical permit fees in the amount of $49,398,
for the Royal Palm Crowne Plaza Project, in accordance with Section 6.3(a) of the Development
Agreement between the Redevelopment Agency and RDP Royal Palm Limited Partnership; and
WHEREAS, due to a recalculation of the mechanical permit fees by the Building Department,
an additional $688 is required; and
WHEREAS, funding must be appropriated, as needed, to reimburse the Developer for
costs associated with remediation of the contaminated soil and the difference, due to the recalculation
of the mechanical permit fees by the Building Department.
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$39,869.85 from available 1998
Tax Increment Revenue Bonds, in order to reimburse RDP Royal Palm Limited Partnership for
remediation costs incurred in connection with the Royal Palm Crowne Plaza Resort Project, in accordance
with the Indemnification Clause in Section 35 of the Hotel Development Agreement between the Miami
Beach Redevelopment Agency and RDP Royal Palm Limited Partnership; and authorizing the
appropriation of $688.00 to fund additional mechanical permit fees 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 26th day of May, 1999
LAN
A~~1~~
-t SECRETARY
T:\Agenda\ 19991Apr 14\royalp.res
APPROVED AS TO
FORM & LANGUAGE
& FOR EXeCUnON
1W~
Redevelopment Agency
G#1f"'t'r~J ~~1':r.~,.~
~/1- V 9~
Dote
:-
Miami Beach
Redevelopment Agency
1700 Convention Center Drive
Miami Beach, Florida 33139
Telephone: (305) 673- 7295
Fax: (305) 673- 7772
May 26, 1999
TO:
FROM:
SUBJECT:
REDEVELOPMENT AGENCY MEMORANDUM NO. 99- 'Z. 'l
Chairman and Memben of the
Miami Beach Redevelo ent Agency
~#
Sergio Rodriguez
Executive Director.
A RESOLUTI OF THE CHAIRMAN AND MEMBERS OF THE MIAMI
BEACH REDEVELOPMENT AGENCY, 1) APPROPRIATING $39,869.85
FROM A V AILABLE 1998 TAX INCREMENT REVENUE BONDS IN
ORDER TO REIMBURSE RDP ROYAL PALM LIMITED PARTNERSHIP
FOR REMEDIATION COSTS INCURRED IN CONNECTION WITH THE
ROYAL PALM CROWNE PLAZA RESORT PROJECT IN ACCORDANCE
WITH THE INDEMNIFICATION CLAUSE IN SECTION 35 OF THE
HOTEL DEVELOPMENT AGREEMENT BElWEEN THE MIAMI BEACH
REDEVELOPMENT AGENCY AND RDP ROYAL PALM LIMITED
PARTNERSHIP; AND 2) APPROPRIATING $688.00 TO FUND
ADDmONAL MECHANICAL PERMIT FEES 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..
ADMINISTRA TION RECOMMENDATION:
Adopt the Resolution.
BACKGROUND:
In a memorandum provided to the Redevelopment Agency Board on April 14, 1999, it was reported
that on February 5, 1999, while excavating for pile caps on the north side of the Royal Palm
property, the contractor uncovered an estimated 1,000 cubic yards of petroleum-contaminated soil.
The developer directed the contractor to have the soil removed and incinerated. Pursuant to an
indemnification clause in Section 35.3 of the Development Agreement, the developer has
communicated that it is seeking reimbursement for the remediation, which at the time was estimated
to be approximately $40,600. On March 24, 1999, an additional area of petroleum-contaminated
soil was uncovered under the Shorecrest property. The amount and extent of the remediation remains
35
5 - 2~-CfC1_
~()UTti V()I~I:
l2edevel{)pment I) I strict
( Agenda Item
l2ede"
Date
..
to be determined. Contaminated fill material continues to be removed from the Shorecrest property
as it is discovered.
ANALYSIS:
Soil Remediation
On April 15, 1999, the developer submitted a package of documents relating to the developer's
claim for indemnification arising out of the soil contamination found on the Royal Palm property.
The amount of the claim was for $43,458. Staff has reviewed the documentation and has
recommended approval of $39,869.85. Staff has requested additional documentation from the
developer to substantiate the remaining balance. The developer has also communicated that it
intends to request reimbursement for the additional remediation on the Shorecrest property,
including all related costs to the construction contract. These claims will be reviewed in detail when
they are submitted by the developer. A preliminary estimate of the total remediation costs, including
construction delays, is in excess of $300,000. To date, the Redevelopment Agency assumes no
responsibility /liability for construction delays.
Mechanical Permit Fees
On April 14, 1999, the Redevelopment Agency Board adopted a resolution appropriating $74,638
to cover the City water and sewer impact and connection fees in the amount of $25,240 and
mechanical permit fees in the amount of $49,398 for the Royal Palm Crowne Plaza project, in
accordance with Section 6.3(a) of the Development Agreement between the Redevelopment Agency
and RDP Royal Palm Limited Partnership. At this time, due to a recalculation of the mechanical
permit fees by the Building Department, an additional $688 is required.
CONCLUSION
In accordance with the provisions of the Development Agreement, it is recommended that funds
be appropriated as needed to pay the necessary costs associated with the removal of the
contaminated soil as well as the additional mechanical permit fees. Upon receipt of additional
claims from the developer, staff will review the documentation provided and make
recommendations for payment. The requests for payment will then be submitted for approval,
appropriating the eligible remediation costs.
on.c.- - m-
SRlC'ClKOB
T:\agenda\1 999\May26\royalp.mem