426-2002 RDA Reso
RESOLUTION NO. 426-2002
A RESOLUTION OF THE CHAIRMAN AND MEMBERS OF THE MIAMI
BEACH REDEVELOPMENT AGENCY APPROPRIATING FUNDS IN
THE AMOUNT OF $320,139 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 THE CONSTRUCTION COSTS OF THE WATER
MAIN RELOCATION WITHIN THE SSDI-NORTH PARCEL; IN
ACCORDANCE WITH A SURVIVING PROVISION OF THE 1995
DEVELOPMENT AGREEMENT
WHEREAS, in November 1995, the City of Miami Beach, the Miami Beach
Redevelopment Agency and the Portofino Group entered into a Development
Agreement that 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), has purchased the
property from West Side Partners, Limited and initiated development of the the SSDI-
North parcel in September 2001 ; and
WHEREAS, in connection with this construction commencement, several
construction activities must occur on the northerly portion of SSDI-North and adjacent
properties to support the proposed Murano Grande Phases 1 and 2 projects; 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 that also obligates the City / RDA to fund the
costs and expenses associated with the physical relocation of the utilities within the
SSDI-North property; and
WHEREAS, these utility relocations include the existing electrical services,
water main and storm water utilities, among others; and
WHEREAS, the cost to relocate the water main utility so that Murano Grande
Phase 1 /2 construction may proceed is estimated at $320,139.
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 herein appropriate
funds in the amount of $320,139 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
the construction costs of the water main relocation within the SSDI-North parcel; in
accordance with a surviving provision of the 1995 Development Agreement
PASSED and ADOPTED this 10th day of July, 2002.
ATTEST:
~tP~
SECRETARY .
APPROVED AS TO
FORM & LANGUAGE
& FOR
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CITY OF MIAMI BEACH
REDEVELOPMENT AGENCY ITEM SUMMARY
lC\
Condensed Title:
A Resolution appropriating $320,139 from the available South Pointe Tax Increment Funds for the
relocation of the Water Main system within the SSDI-North Parcel, pursuant to the Portofino Settlement
Agreement.
Issue:
In November 1995, the City of Miami Beach, the Miami Beach Redevelopment Agency and the Portofino
Group entered into a Development Agreement that 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), has purchased the
property from West Side Partners, Limited and initiated development of the SSDI-North parcel in September
2001. In connection with this construction, several construction activities must occur on the northerly portion
of SSDI-North and adjacent properties to support the proposed Murano Grande Phases 1 and 2 projects.
The construction activities include relocation of existing utilities. The existing utilities provide service to the
Marina and are in conflict with the proposed development. These utility relocations include the existing
electrical services, water main and storm water utilities, among others. Therefore, new utilities have to be
constructed within the available easements while maintaining existing service to the Marina's facilities.
Previous appropriations for the utility relocation within SSDI-North only included the relocation of certain
electrical utility lines and above ground electrical structures. Today's appropriation addresses the relocation
of the water main.
Item Summary/Recommendation:
The Administration recommends appropriating $320,319 from available South Pointe Tax Increment funds
towards the relocation of the water main utility within the SSDI-North Parcel.
Advisory Board Recommendation:
I N/A
Financial Information:
Amount to be expended:
Source of
Funds:
~
~
Finance Dept.
$320,139
AGENDA ITEM
DATE
3B
7- to-OJ-
MIAMI BEACH REDEVELOPMENT AGENCY
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139
WWoN.ci.miami-beach.f1.us
REDEVELOPMENT AGENCY MEMORANDUM
From:
Chairman David Dermer and
Members of the Miami Beach Redevelopment Agency
Jorge M. Gonzalez ~ .~
Executive Director 0"" U
Date: July 10, 2002
To:
Subject: A RESOLUTION OF THE CHAIRMAN AND MEMBERS OF THE MIAMI
BEACH REDEVELOPMENT AGENCY APPROPRIATING FUNDS IN THE
AMOUNT OF $320,139 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 THE
CONSTRUCTION COSTS OF THE WATER MAIN RELOCATION WITHIN THE
SSDI-NORTH PARCEL; IN ACCORDANCE WITH A SURVIVING PROVISION
OF THE 1995 DEVELOPMENT AGREEMENT
ADMINISTRATION RECOMMENDATION
Adopt the resolution.
ANALYSIS
In November 1995, the City of Miami Beach, the Miami Beach Redevelopment Agency and
the Portofino Group entered into a Development Agreement that was terminated in June
1997. I n 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), has purchased the property from West Side Partners, Limited
and provided notice that it intended to develop the SSDI-North parcel. Construction on
said parcel was initiated in September 2001.
Construction on SSDI-North will consist of two high rise residential towers and related
amenities as approved and reflected in the concept plan, modified by Resolution No.
2001-24349 adopted by the City Commission on April 18, 2001. Construction on Murano
Grande Phase 1, the project located along the southerly portion of SSDI-North, was
initiated in September 2001. The Settlement Agreement requires that only one project be
completed at a time and that the first SSDI-North project be completed prior to initiating the
second project. In connection with this construction commencement, several construction
activities must occur on the northerly portion of SSDI-North and adjacent properties to
July 10, 2002
Miami Beach Redevelopment Agency
SSDI-North Appropriations
Page 2
support the proposed Murano Grande Phases 1 and 2 projects.
Construction Scope and Estimated Costs
Pursuant to the Settlement Agreement, TRG has retained the services of various
professionals to design, permit and construct the numerous improvements. Detail design
efforts for the water main relocation project element are approximately 90 percent
complete. In an effort to obtain budget level cost estimates for the water main relocation,
TRG requested its Contractor, KVC Constructors, Inc. (KVC), to obtain bids for certain sub-
trades with specialties in certain areas of work. A minimum of three bids was obtained to
develop the basis for the estimate for the phase 1 portion of the water main relocation.
The estimates presented herein include the costs and certain allowances to perform the
scope of work and its ancillary items. It is noted that permitting requirements as well as
existing site conditions may alter the character of the work to be implemented, thereby
increasing I decreasing the associated construction costs. It is anticipated that upon
completion of the detail design efforts, the following procedure will be utilized to develop
final construction costs:
. Performance of a constructability review by a third party, Hazen and Sawyer
. Submittal of the plans to a minimum of three qualified contractors for each sub-trade or
project element
. The lowest, qualified bidder(s) (as determined by the City / RDA and TRG) will be
retained to perform the work
Hazen and Sawyer shall serve, as the City's coordinator with respect to the City's
obligations. Hazen and Sawyer and City staff shall review bids obtained by TRG as they
relate to the Settlement Agreement construction. Progress payment requisitions prepared
by KVC to TRG will be reviewed by Hazen and Sawyer and recommended for payments to
the City / RDA.
The estimate presented herein is for appropriation purposes only and is not intended to be
final construction cost estimate. TRG / KVC will provide Agreement prior to its execution
for the City's review and comment, as well as provide the actual bids obtained from each
contractor( s ).
The City I RDA has certain financial obligations pursuant to the Settlement Agreement for
the construction activities. A description of the previously approved construction activities
are presented herein. The City I RDA's obligations in connection with SSDI-North are as
follows:
July 10,2002
Miami Beach Redevelopment Agency
SSDI-North Appropriations
Page 3
Table 1
Appropriation Description Summary
Work Item Description Previous Appropriation City I RDA Obligation
Environmental Mitigation Yes - Resolution 392-2001, dated 07/18/01 50%
Electrical Utility Relocation Yes - Resolution 387-2001, dated 06/27/01 100%
SSDI-North Seawall Repair Yes - Resolution 392-2001, dated 07/18/01 100%
SSDI-North Embayment Fill-in Pending Appropriation 100%
SSDI-North Pier A North 40 Pending Appropriation 100%
Construction Staging Costs Pending Appropriation 33%
Water Main Utility Relocation Appropriation presented herein 100%
Storm Water Utility Relocation Yes - Resolution 392-2001, dated 07/18/01 100%
Alaska Parcel Yes - Resolution 387-2001, dated 06/27/01 100%
NOTE: The attached Exhibit "A" represents a detailed Status of Estimated Pre-
Construction Costs.
Future appropriations by the RDA will be required to construct the aforementioned
obligations not yet appropriated as set forth in the Settlement Agreement. As project
scopes are further defined, they will be presented to the RDA for appropriation approval.
Water Main Relocation
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 Grant of Baywalk Easement also obligates the City / RDA to fund the
costs and expenses associated with the physical relocation of the utilities within the SSDI-
North property.
These utility relocations include the existing electrical services, water main and storm water
utilities, among others. The existing utilities provide service to the Marina and are in conflict
with the proposed development. Therefore, new utilities have to be constructed within the
available easements while maintaining existing service to the Marina's facilities. Previous
appropriations for the utility relocation within SSDI-North only included the relocation of
certain electrical utility lines and above ground electrical structures.
An existing six-inch diameter water main is located underneath the proposed Murano
Grande Phases 1 and 2 project sites. The Murano Grande Phase 1 project is currently
under construction. Construction on certain portions of the building footprint has been
postponed until the existing six-inch diameter water main is relocated. It has been
July 10, 2002
Miami Baach Redevelopment Agency
SSDI-North Approprletions
Page 4
proposed to relocate the water main in two phases so that Murano Grande Phase 1
construction can proceed without delay. Construction activities consist of the relocation of
approximately 670 linear feet of eight-inch diameter pipe and two inline taps to the existing
line. The new relocated water main will be placed into service and the existing water main
that was bypassed will be removed from service and abandoned in place after the
appropriate connections and certifications by the appropriate regulatory authorities are
provided.
The location of the relocated water main will be undemeath the temporary baywalk
between the existing construction fence along the west side, and the existing construction
Murano Grande Phase 1 construction site along the west side. Temporary measures will
be implemented to allow for pedestrian and electric vehicle access along the baywalk. Tie-
ins to the existing water main will be performed during Marina non-peak usage hours to
minimize the impacts to the Marina's operations. TRG / KVC have procured the
Department of Health water main construction permit. It is anticipated that construction will
take approximately 45 to 60 days to complete the installation depending upon the sampling
and acceptance of the bacteriological samples.
The location of the relocated water main to be constructed in the second phase will be
within the baywalk. Temporary measures will be implemented to allow for pedestrian and
electric vehicle access during construction. Tie-ins to the existing water main will be
performed during Marina non-peak usage hours to minimize the impacts to the Marina's
operations. Water main construction north of Pier A may require the removal and
demolition of the Marina building located adjacent to Fifth Street (as contemplated in the
Settlement Agreement, tenant relocation and building demolition to be performed by
others). Relocation of the water main is not the only activity that may require the
demolition ofthe building. The construction ofthe 72-inch diameter storm water utility may
dictate that the building be removed and this was contemplated in the Settlement
Agreement by requiring West Side Partners, Ltd. to provide for similar space within or
adjacent to the SSDI-North property. The cost to relocate the water main utility so that
Murano Grande Phase 1 /2 construction may proceed is estimated at $320,139.
In order for the project to proceed without further delay, it is recommended that the
Chairman and Members of the Redevelopment Agency appropriate $320,139 from the
available South Pointe Tax Increment Funds for the relocation of the water main system
within the SSDI-North parcel.
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