289-98 RDA
Resolution No. 289-98
RESOLUTION OF THE CHAIRMAN AND MEMBERS OF THE MIAMI
BEACH REDEVELOPMENT AGENCY AUTHORIZING SETTLEMENT IN
EMINENT DOMAIN PROCEEDINGS IN CONNECTION WITH THE
SHORECREST HOTEL, LOCATED AT 1535 COLLINS AVENUE, MIAMI
BEACH, FLORIDA
WHEREAS, the Miami Beach Redevelopment Agency (the "Agency"), has heretofore,
pursuant to Resolution No. 269-97, authorized the acquisition of real property located at 1535
Collins Avenue, Miami Beach, Florida, and commonly known as the "Shorecrest Hotel"; and
WHEREAS, the Agency has instituted such eminent domain proceedings in an action in the
Circuit Court of the 11th Judicial Circuit in and for Dade County, Florida, styled Miami Beach
Redevelopment Agency v. Gisela Lizama Cardona. et. aI., Case No. 97-15520 (CA 22), for the
public purpose of, and in connection with, community redevelopment and related activities under
Chapter 163, Part III, Florida Statutes, and a City Center/Historic Convention Village
Redevelopment and Revitalization Area hotel project, and has pursued such action with diligence;
and
WHEREAS, the trial of such eminent domain action was set for February 23, 1998; and
WHEREAS, prior to the commencement of said trial, the Agency received an offer of
settlement in said eminent domain action which is reasonable, will not cause the Agency to expend
any monies above the $10,000,000 heretofore allocated for the acquisition of the Royal Palm and
Shorecrest Hotels, and will avoid the expense of a trial.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE CHAIRMAN AND
MEMBERS OF THE MIAMI BEACH REDEVELOPMENT AGENCY, that the General
Counsel of the Agency is hereby authorized to compromise and settle all claims against the Agency
in eminent domain proceedings for the parcel known as the "Shorecrest Hotel," the address of which
is 1535 Collins Avenue, Miami Beach, Florida, in an amount not to exceed $4,690,000.00 of monies
of the Agency, plus the amount of$1,075,000 to be received by the Agency from RDP Royal Palm
Hotel Limited Partnership.
PASSED and ADOPTED this 4th day of
Jf!k
,1998.
CHAIRMAN
ATTEST:
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SECRETARY
APPROVED AS TO
FORM & LANGUAGE
& FOR EXECUnON
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Red opment Agency
Geneml Counsel
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Dote
Miami Beach
Redevelopment Agency
1700 Convention Center Drive
Miami Beach, Florida 33139
Telephone: (305) 673- 7295
Fax: (305) 673- 7772
REDEVELOPMENT AGENCY MEMORANDUM NO. 98-6
March 4, 1998
TO:
Chairman and Members of the Board
of the Miami Beach Redevelopment Agency
AGREEMENT
FROM:
Sergio Rodriguez
Executive Director
SUBJECT: SHORECREST
RECOMMENDATION
Approve the Resolution.
BACKGROUND
As part of the African-American Hotel Project, acquisition of the
Shorecrest Hotel is necessary. Authorization to acquire through
eminent domain was approved by the Commission and Redevelopment
Agency Board. At the same time, the Administration and parties of
interest have engaged in mediation and negotiations, and a
settlement agreement has been prepared.
ANALYSIS
The settlement agreement as presented to you today establishes full
compensation for the property to be $5,765,000, inclusive of
attorneys fees, expenses and costs. R. Donahue Peebles Companies,
Inc. ("Peebles") is responsible for a total of $1,075,000, of which
$310,000 has been given as a deposit to Jacob 1535 Properties, Inc.
("Jacob 1535"), $200,000 is being held in escrow by attorney Edward
Levinson, real estate counsel for Jacob 1535, and $565,000 is to be
paid to the Miami Beach Redevelopment Agency (RDA). The settlement
agreement obligates the RDA to pay $5,255,000, which includes the
$565,000 from Peebles, resulting ln a total contribution of
$4,690,000 of RDA funds.
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I:?edevel{)pment District
AGENDA ITEM 2-E
March 4, 1998
Initially, Peebles committed to a contribution of $1,000,000 toward
the acquisition of the Shorecrest hotel. The settlement agreement
is at a purchase price that is in excess of the original
commitments made by Peebles and the RDA. Peebles has agreed to
fund the additional $75,000 in order to achieve a settlement and
avoid the legal expense of a trial in the pending eminent domain
proceeding.
The Administration believes that the negotiations have resulted in
a purchase price that is in keeping with the commitment made to the
African-American Hotel Project as originally proposed in 1993; the
RDA contribution of $4,690,000, together with the $5,310,000 paid
for the Royal Palm Hotel property fulfills the commitment of the
RDA and the City to provide $10,000,000 toward the development of
an African-American owned hotel on Miami Beach.
CONCLUSION
The Board should adopt the resolution approving the settlement
agreement for the purchase of the Shorecrest Hotel.
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