378-2001 RESO
RESOLUTION
378-2001
A RESOLUTION OF THE CHAIRMAN AND MEMBERS OF THE MIAMI BEACH
REDEVELOPMENT AGENCY, APPROPRIATING $11,187.15 FROM AVAILABLE 1998
TAX INCREMENT REVENUE BONDS IN ORDER TO REIMBURSE RDP ROYAL PALM
LIMITED PARTNERSHIP FOR CERTAIN PERMIT FEES ASSESSED BY THE CITY'S
BUILDING AND PLANNING DEPARTMENTS IN CONNECTION WITH 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 Crowne Plaza Resort in Miami Beach, Florida;
and
WHEREAS, in accordance with Section 6.3(a) of the Hotel Development Agreement, the
Redevelopment Agency is responsible for paying any and all permit fees required to be obtained
from the City of Miami Beach 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 its Public Works and Building Departments; 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
MEMBERS OF THE MIAMI BEACH REDEVELOPMENT AGENCY, that the Chairman
and Members of the Miami Beach Redevelopment Agency authorize the appropriation of
$11,187,15 from available 1998 Tax Increment Revenue Bonds to reimburse RDP Royal Palm for
certain permit fees assessed by the City's Building and Planning Departments in connection with
the Royal Palm Crowne Plaza Resort Project n 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 10th day ofJanuary2001
IfJI
CHAIRMAN
ATTEST:
J~6' f~
SECRETARY
APPROVED AS TO
FORM & lANGUAGE
& FOR EXECUTION
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l\edevelopment Agency D8Ie
GeneI8I Coun8lIl
T:\Agenda\ 1999\Apr 14\royalp.res
Miami Beach
Redevelopment Agency
1700 Convention Center Drive
Miami Beach, FIQrida 33139
Telephone: (305) 673- 7295
Fax: (305) 673- 7772
REDEVELOPMENT AGENCY MEMORANDUM NO. 0'- 5'
January 10,2001
TO: Chairman and Members ofthe Board
of the Miami Beach Redevelopment Agency
FROM:
Jorge M. Gonzalez
Executive Director
64)
SUBJECT: A RESOLUTION OF THE CHAIRMAN AND MEMBERS OF THE MIAMI
BEACH REDEVELOPMENT AGENCY, APPROPRIATING $11,187.15
FROM AVAILABLE 1998 TAX INCREMENT REVENUE BONDS IN
ORDER TO REIMBURSE RDP ROYAL PALM LIMITED PARTNERSIDP
TO FUND CERTAIN PERMIT FEES ASSESSED BY THE CITY'S
BUILDING AND PLANNING DEPARTMENTS 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 invoices by the Developer,
reflecting the following permit-related charges being assessed by the City:
~()UTti f)()I~1:
I:?edevel()pment [)lstl1ct
Agenda Item 3 B
Date \ - 10 - 0 I
Permit:
City Department
Amount
Temporary Fencing
H ~,
- Planning Department -
- Building Department -
- Public Works Dept-
$ 100.00
$ 108.85
$ 600.00
Temporary Construction Water Connection
Installation of Windows and Sliding Glass
Doors
- Building Department -
$10,378.30
Total:
$11,187.15
To date, The RDA has paid $235,164.33 in City permit fees, which include the main building,
electrical, mechanical, plumbing, fire, water and sewer impact and connection fees and demolition
permit fees. At the time the Development Agreement was approved by the RDA and the City
Commission, the construction budget contained in the Development Agreement reflected a line item
for Building Permit Fees estimated to be in the amount of $151,434. Taking into account the
payments the RDA has made to date of$235,164.33, and the proposed additional costs presented
herein of$II,187.l5, the total costs to date will be $245,351.48 which exceeds the budget line item
for Permit Fees by $93,917.48.
Future additional fees will need to be paid and will include revised building permit fees, irrigation,
roofing, certificate of occupancy, premise permit and other fees.
In addition to permit fees, the RDA may be requested to assume further costs as a result of:
I) Parking impact fees that will be assessed to comply with parking requirements, per
the contract, for the new 7 -story replacement tower for the Royal Palm HoteL
2) Remediation of petroleum contamination found on site.
3) Delay claims as a result of the petroleum contamination and structural deficiencies
with the Royal Palm Hotel, requiring its complete demolition and rebuilding,
Parking Impact fees
The Royal Palm will require modification of the Development Agreement between the RDA and
the RDP to provide additional spaces in the 16 Street Garage or the payment of parking impact fees.
Based on the preliminary plans submitted, a total of 107 additional spaces will be needed to satisfy
zoning requirements. Unless additional spaces can be identified in the 16th Street Garage and/or
within 1,200 feet ofthe site, the RDA will have to pay the City parking impact fees equivalent to
$5,000.00 per space, as provided in the Development Agreement. Upon submission of final plans
this issue will be addressed.
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
indemnification 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 from time to time to pay the necessary City permit fees for the Royal Palm Crowne
Plaza project. Upon receipt of requests from the developer for payment of permit fees, the
Administration will formalize the requests in the form of resolutions appropriating the required
funds. In this case, the appropriation requested is for $11,187.1 5 to cover certain permit fees
assessed by the City's Building and Planning Departments, as described earlier in this report,
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T:lAgenda\200 1 IJan1 OIRDA IRoyalp,doc