317-99 RDA (1)

RESOLUTION

317- 99 A RESOLUTION OF THE CHAIRMAN AND MEMBERS OF THE MIAMI BEACH REDEVELOPMENT

APPROPRIATING $

AGENCY,

74,638 FROM AVAILABLE 1998 TAX INCREMENT

REVENUE BONDS IN ORDER TO FUND MECHANICAL PERMIT FEES AND WATER AND SEWER HOOK-UP FEES FOR THE ROYAL

CROWNE

PALM

SECTION

PLAZA

RESORT

PROJECT

IN

ACCORDANCE

WITH

6. 3( a)OF

HOTEL

DEVELOPMENT

AGREEMENT

BETWEEN

THE

MIAMI

THE BEACH

REDEVELOPMENT

AGENCY

AND

ROYAL

RDP

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 Devel o pment and other agreements for the development and operation of the Royal Hotel Agreement related Crowne Plaza Resort in

Palm

Miami Beach, Florida; and WHEREAS,in accordance 6. a) Hotel Devel o pment the Agency is responsible with Section 3( of the Agreement, Redevelopment 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

the

appropriated

from

fees and impact and

connection fees

that

City levies through its Public Works and Building Departments;

and WHEREAS, funding needs to

be

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 Members of

REDEVELOPMENT AGENCY, that the Chairman

the Miami

available 1998 Tax

Beach Redevelopment Agency authorize the appropriation of

and

$ 638 from 74,

Increment Revenue Bonds in order

hook-

up

accordance with

Section

to fund mechanical permit fees and water and sewer Royal Palm Crowne Plaza Resort project in 3( a) 6. of

fees for the

the Hotel Development Agreement

between

the

Miami Beach

Red velopment

Agency

and

RDP

Royal this

14th

day

of

Palm Limited Partnership. PASSED AND ADOPTED

April,

1999 E CHAIRMAN

EXHIBIT ,~

Exhibit

6.

3(

a) FEES BUILDING

PERMIT A \ mings Canopies & Concrete Slab (Other Than Paving) Demolition Of Building Elevator Alternations &Repairs

MI9626I

Hoistway Construction Fence And/

Or WaIls

Landscaping New Building And/ Additions New Building Other Painting Parking Area Lighting Paving Roofing ( Including ReOr

0.

Roofmg)Signs Swimming Pools Windows, Exterior

Doors, Storefronts &

Fixed Glass CERTIFICATE OF OCCUPANCY Certificate Of Completion Final Certificate

Of Occupancy

Temporary Certificate

Of Occupancy ELECTRlCAL

PERMIT

FEE Combinations Equipment Outlets Or Fire

Permanent Connections

Detections

Systems Fixtures GeneratorsfTransformers, Commercial

Strip Heaters Machine Outlets Or Permanent Connectors Master Televisions, Intercom,

Telephone &

Radio Plummold Rough Wiring

Outlets Services Signs Special Purpose Outlets (Commercial) Streamers Or

Festoon

Lights

Pool

Lighting

Switchboards

W6-

Swimming

Burglar

Heating Equipment & Alarm,

a

u.;.

Welding Machine Outlets MECHANICAL PERMIT FEE Air

Conditioning & Refrigeration

Amusement Rides And Devices Boilers And Pressure Vessels Duct Work

Elevators, Escalators & Other Lifting Apparatus Furnaces And Heating Equipment Internal Combustion

Engines

Storage Tanks

For Flammable

Liquids

OTHER FEES: Fire

Processing Fees Interim General And Proprietary Fees Marine Structure Fees Miami Beach Training Fees Parking Impact

Fees

Radon Fees

Zoning Processing PLUMBING PERMITTING FEES: Condensate Drains

Drainage Fire Control

Minimum

Systems

Plumbing

Fee Per Permit

Miscellaneous Natural Gas And

Liquefied Petroleum Rough & Set Fixtures Septic/ Settling Tanks, Oil Interceptors

Sewers

Stonn &

And Grease

Traps

Sanitary Utility And/Or Collector Lines

Temporary Toilets

if,

Water And Gas Mains Water Heaters (Electrical Or Gas) Water Piping Water/ Sewage Treatment Plants &

t'".,.

LiftlPlumbing

PREWSE PERMIT: j.

Initial And Final Premise Permit Fee

TELEPHONE SYSTEM:

W6-

MI9626I

0.

Stations

Section

2 Developer' 6.

s Contributions. Developer has provided the Funded the funds necessary to complete Construction of

Equity. Developer shall also provide all of

the Project. Section 6. 3 a) ~. Citv Permit Fees. Agency agrees hereby to assume payment responsibil ty for any and all Permits,now or hereafter, required to be obtained from the City for the construction of the Hotel, which include, without limitation, building permit applications, inspection, certification, impact and connection fees that the City may levy by or through its Public Works Department ( including, without limitation, water and sewer fees)and those fees listed on Exhibit 63( a)attached hereto and incorporated by reference herein and in the City of Miami Beach Building Department Fee as amended Schedul e , through September 16,1992 by Ordinance Number 92- 2796, or the mQSt current edition adopted by the City, which fee schedule is hereby incorporated by reference and made a part of this Agreement (collectively, the "Fees"). Agency shall remain responsible for payment of the Fees notwithstanding any and all modifications or changes in price structure imposed by the City as or any other Governmental Authority authorized to impose such Fees. Agency acknowledges that the Developer or an Affiliate has paid all applicable fees thus far in the interest of expediting the City of Miami Beach Design Review Board and City of Miami Beach Historic Preservation Board applications, and Agency agrees to reimburse Developer, promptly following the date hereof, for the Fees or any portion thereof

paid by Developer

or

an Affiliate or for

which Developer otherwise qualifies. b) Non- Citv Permit effort to persuade Metropolitan Dade County to waive its fees relating to the Project. To the extent that Metropolitan Dade County does not waive the impact, connection and service fees now or hereafter imposed by 1fiami Dade Water and Sewer Authority to Ordinance No. pursuant 88112, 1, Fees.

Agency will cooperate with

Section

Subchapter 7, dated December

shall pay the Connection

Developer in an

6,1988,as

updated ( collectively, the Connect"ion Fees"), Agency

Fees when due on behalf of

Developer. Developer agrees to reimburse for the Connection Fees,together with interest thereon at eight percent ( per annum in three hundred ( 8%) 300)equal monthly installments of principal and the Agency

Hotel Opening Date; provided, however, in the event of a Sale of the Purchase Price in full to

interest commencing on the of the Hotel requiring payment

Ovmer,Developer

shall pay the entire outstanding balance plus all accrued interest due on the Connection Fees. 4 Expedited Section 6. Processin~.The City shall make reasonable to provide efforts for expedited handling of

all

review

boardhearings

and/or permit

EXHIBIT

Section

B

35.

Indemnification. a) Tenant hereby indemnifies and holds harmless the Owner Indemnified Parties from and against any and all Environmental Damages to the Premises during the term of this Lease, except to the extent any such Environmental Damage is caused, permitted, allowed, 3.

suffered or

contributed

directly or indirectly, by any of the Owner Indemnified Parties prior to the Commencement Date. Such obligation of Tenant shall include the burden and of defending all claims, suits and administrative proceedings ( with counsel expense reasonably

satisfactory

to

to,

Owner), even if

such

suits or proceedings are groundless, false or fraudulent, and conducting all negotiations of any description, and paying and discharging, when and as the same become due, any and all judgments, penalties or other sums due against any of the Owner Indemnified Parties. Tenant' s obligations shall not apply with respect to Environmental Damages resulting from Environmental Conditions existing in the Land prior to the execution hereof regardless of whether the same were caused by any of the Owner Indemnified Parties).Without limiting the foregoing, if the presence or Release on or from the Premises caused or permitted by Tenant results in contamination of the Premises, Tenant shall promptly take all actions at its sole cost and expense as are necessary to remediate the Premises in compliance with Environmental Laws in effect from time to time and to comply with any requirements imposed by any Governmental Authorities; provided that Owner' s approval of such actions shall first be obtained, which approval shall not be claims,

withheld. b) Owner hereby indemnifies and holds harmless the Tenant Indemnified Parties from and against any and all Environmental Damages resulting from Environmental exi s ti n g prior to the Commencement Date, but only in the Land Conditions specifically unreasonably

and Improvements. Such obligation of Owner shall include the burden and expense of defending all claims, suits and administrative proceedings ( with counsel reasonably satisfactory to Tenant), even if such claims, suits or proceedings are groundless, false or fraudulent, and conducting all negotiations of any description, and paying and discharging, when and as the same become due, any and all judgments, penalties or other sums due against any of the Tenant

excluding

the

Notwithstanding anything to the contrary contained Parties.c) herein, Owner agrees as action necessary to immediately remove the underground storage tank( s), if any, located on the to expedi t i o usl y undertake such further assessment, remediation, Premises; and monitoring of the soil and ground if any,as water impacted by the Release from such tank( s), required under applicable Environmental Laws; and to take such action as necessary to obtain a No Further Action determination from DERM or DEP,if required under Indemnif ed

to take

such

Environmental Laws. Owner shall use reasonable efforts to undertake the work described in this Section 35.3( c) in such a manner as to minimize disruption to and to avoid delaying Tenant' s plans to renovate and develop the Premises. Owner agrees that in connection with thework described in rli' is c)it will provide to Tenant all Section 35. 3( correspondence, reports, studies andother documents exchanged between

Owner, its consultants, and DERM received from DERM

Section

or

or

DEP

promptly after those

documents

are

provided

to or

DEP.

35.

4. Compliance. Tenant, at its sole cost and expense ( except as otherwise provided in this Lease),shall comply and cause the Hotel Manager and all Subtenants to comply with all Environmental Laws with respect to the use and operation of the

Premises.

Section 35. 5.Notices. If Tenant or Owner receives any notice of a Release, Threat Release or Environmental Condition or a notice with regard to air emissions, water discharges, noise emissions, recycling,violation of any Environmental Law or any environmental,

of

or

matter affecting

safety

or

Tenant

other health Premises (an "Environmental Complaint") independently or having jurisdiction over the Premises, including the EP

the

by A, or

Premises,

notice from any Governmental Authority with respect to any

then such

party shall give prompt oral

and written

litigation regarding

Environmental Conditions at

notice of same

all relevant

facts

and

to

or about the

the other party detailing

circumstances.

Section 35. 6. Owner'

s Remedies. Provided Tenant does not diligently to remediate the applicable Environmental Conditions promptly after becoming aware of the same and thereafter diligently pursue the completion thereof in a reasonable time and ( in commence

any event in accordance

with Requirements), Owner shall have the right, but not the obligation, to enter Premises or remediate the Premises in compliance with Environmental Laws in effect from time to time and to comply with any requirements imposed by any Governmental Authorities upon its obtaining knowledge such independently or receipt of matters by of any notice from onto the

any

including matter

Person, the EP A. Section 35.7. Defaults. Except to the

for which

or relates

an

to

shall constitute an

or local body not federal,

is responsible

pursuant

extent the same is a to Section 35. 3( b) above

caused, let, permitted, suffered, contributed to or allowed by Owner Indemnified Party prior to the Commencement Date,the occurrence of any of the following

an

events

Owner

state

purposes of

or

discharged by payment

Event

Environmental

Condition

of Default under

agency creates

this Lease:

a

lien

a) if

upon

the

the

EPA or

Premises

which

any

other federal, state is

bonding within. ninety ( 90)days; or b) if the EPA or any other or local body or agency makes a claim ( which shall mean, for the this

or

Section 35.7, issuance

of violation or administrative

complaint)

of

a warning

notice, citation, notice

Miami Beach

Redevelopment Agency 1700 Convention Center

Drive Miami

Beach,

Florida 33139

Fax: (

7295 673Telephone:305) (

305) 7772 REDEVELOPMENT AGENCY MEMORANDUM NO.

673-

99g ,

TO:

April

14, 1999

Chairman and Members of Miami Beach Redevelop nt Agency FROM: Sergio

the

Rodriguez Executive AND

CHAIRMAN

Director SUBJECT: THE

MEMBERS OF THE MIAMI BEACH RED LOPMENT

AGENCY, APPROPRIATING $74, 638 FROM AVAILABLE 1998 TAX INCREMENT REVENUE BONDS IN ORDER TO FUND MECHANICAL PERMIT FEES AND WATER

AND

ROYAL

HOOK-

SEWER

PALM

IN

ACCORDANCE

UP

CROWNE

WITH

SECTION

FOR

THE

RESORT

PROJECT

FEES

PLAZA

3( a) 6.

OF

THE HOTEL

DEVELOPMENT

AGREEMENT BETWEEN

THE

ROYAL PALM LIMITED PARTNERSHIP. ADMINISTRATION RECOMMENDATION: Adopt 3( of the Development Agreement between the Resolution. BACKGROUND: Pursuant to Section 6. a) Miami Royal Limited Partnership ( the developer), the RDA Agency ( the and Palm the Beach Redevelopment RDA) RDP 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 certif cation fees and impact and connection fees that the City MIAMI BEACH REDEVELOPMENT

AGENCY

AND RDP

levies through Public Works and the

Building Department. A list of applicable memorandum. The RDA has been presented with two ofS25,240 for City connection fees

waterand

sewer impact

andthe

and

other

Building

Department

fees is

included

this

with

amount

invoices by the deteloper, one ill the

the amount in 49, 398 for

of $

mechanical

permit

ANAL YSIS: technically 404. 31 in City permit fees, which building, electrical, plumbing,fire have not been appropriated. These fees include the main the and demolition permits. At the time the Development Agreement was approved by the RDA and City Commission, the construction budget contained in the Development Agreement reflected a line 151, 434.Taking into the amount of$ item for Building Permit Fees estimated to be in and 404.31 $ has made to date of 136, account the payments the RDA 25,240 and 49,398, the total costs the proposed additional costs presented herein of $

To date, the RDA has

to

136,

paid $

date

59, the budget line item for Permit Fees by $ fees will need to be

042. 31,which exceeds $ will be 211,

Future additional 608. 31. paid and will

include

building permit fees, irrigation,

revised

In addition

roofing,certificate

of

occupancy, premise

permit and

other fees.

be requested to assume Parking impact fees that will be assessed 1)

to permit fees, the RDA may

costs as a result

of:

further

to comply with parking requirements, per the story replacement tower for the Royal Palm Hotel. 2) contract, for the new 7Potential concession of the Remediation of petroleum contamination found on site. 3) additional to requested by the developer in order loan commitments to cover garage use leverage

fee

a

shortfall in

the

story 7budget that the developer claims is as a result of the fees The Royal Palm will require modification of the tower replacement for the Royal Palm.Parking Impact provide additional spaces in the 16 Street Development Agreement between the RDA and the RDP to submitted,a Garage or the payment of parking impact fees.Based on the preliminary plans of 107 additional spaces will be needed to satisfy zoning requirements. Unless additional spaces can be identified total 200 feet of the in the 16th Street Garage and/ or within 1, construction

site, the RDA will have to pay the

City

parking

the Development Agreement.

addressed. Petroleum

impact

Upon

fees equivalent

submission

000. 00 per space, as provided in to 5, of final plans this issue will be

Contamination On February 5, 1999, while excavating for ofthe property,

on the north side

the contractor

000 cubic yards of petroleum-contaminated soil. The 1, have the soil removed and

i cinerated.

Pursuant

the

to an

indemnifcation

uncovered

remaining pile

an

developer directed the contractor

clause in

Section

caps

estimated

to

35. 3 of the

It is anticipated that the developer will reject 24th an additional area of suspected petroleum- contaminated soil was 100, 000.

amount of $

delay claim

RDA can

On

March

uncovered under the

remediation was unknown at the time this report was anticipate an additional claim for compensation and possibly, an additional

Shorecrest. The amount and extent of

written. However, the

the claim.

the

by

the contractor.

of the unexpected demolition and replacement of the Royal Palm,the costs associated developer is claiming economic hardship due to the alleged increase in construction delays constructi o n the well as associated with the reconstruction of the 7-story tower as hotel. In order to leverage additional financing for for the pre-devel o pment schedule protracted with the hasap roached the City/ RDA requesting a deferral of annual ground the project, the developer parking spaces in share of lease payments for 25 years and abating payment of the Use Fee for its Financial

Conces ions

As a result

the 16th Street Garage. Since the RDA's debt service obligations preclude any concessions on payment of the ground lease,the Administration has informed the developer that the only option available for consideration is the abatement of the garage Use Fee in exchange for the RDA not paying the developer the facility Usage Fee.Under the terms of the Garage Easement Agreement with the developer, from the developer

the RDA receives an annual " Use Fee"

of

600. The 156, $

agreement also provides for the share in the gross revenue stream generated by the garage on the basis " Fee" of a two- tiered system.In the first tier, the developer receives a Usage gross r e v e nues 200, 000 in 05 percent of the first $1, equal to 13. net of taxes. In Usage Fee equal to 6.46 percent of gross revenues second tier,the developer receives a developer to

the

, 000. In essence, the first- tier is intended as a credit against $200, in excess of 1 parking charges for the annual Use Fee paid by the developer. The developer will still be subject to paying their use of spaces in the garage, at a rate not to

exceed

50

percent

of

the

established

self- park

rate

for valet operations. The developer is considering its options at this point.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 in the form of resolutions appropriating the of permit fees, the Administration will formalize the requests required funds. In this case, the appropriation requested is for each space used

for $ 638

74,

to

cover

the