99

22/

11/

11:08

MON

FAX 3059955340 PAD C I4J

002 RDP

ROYAL PALM

HOTEL,LP

c/ o Peebles Atlantic Development

Second
Corporation 100 S,E.
Street, Suite
NationsBank

4650

Tower

at International
Place

33131

Miami, Florida

Phone ( 305)995(
5330 Fax 305)

995-5340 November

1999 Christina Cuervo

22,

Assistant City

Manager

City

of

Miami

Beach

33138 Re:Contaminated
please tlnd

an

acknowledgement

1700

Soil
leLter from Zurich

Claims

Convention

Center

Dr.

Miami

Beach, FL

Dear Christina: Further to our previous discussions, attached

Companypertaining to the claim for recovery of costs incurred from contaminated soil on

Insurance

the

Royal

Palm

site. We

wj1\ continue

going
jl~
ot"
onIre appropriate

of

payments made by the

City under the indemnity provisions of the Gr01lnd

as to ensure continued project progress,

interim,however, and so
WOll , d request the City' s continued

Lease. In
we

amounts

to monitor the determination of this claim and inform you

status, Should this policy provide effective coverage of this claim, we will remit

the

cooperation
in

expedited processing of payments

for costs submitted pursuam to the

indemnity provisions of
the Ground Lease.

Sincerdy,

RDP Royal

Palm Hotel,LP

PADC

99

22/

11/

ClaimNo.:

MON

RDP

8u~

11:08 FAX

3059955340 PAD

4032 SrhnlJmblJrg, Ie

60

168,~
Telephone ( 847)605. 6155 Fa.

032
U.

CZurich

S.

Arm1rlCiln Lane

Claims 1400

Environmental

d1~' lmbLlrg,

www wnchu\ (

Ill,

nois

601911-

Palm

November

0111
10511
Mailing

847) 60j.7811

12,

Addrc~~

999
Mr.Daniel Grimm

o.

Hotel

Limited

partnership

] 100 SE Second Street

FL 33131 RE:Insured: Claimant: Site:
Miami,

Site Manager

Date
of

RDP Royal

Loss: Policy No.:

Royal Palm] lotel City

of Miami Bcach 1535 and 1545 Collins Avenue, Miami Reach, I'
99 (approximate) 1M 2393831- 00 (08/03/
02/
03/
16/
98 2000) 912- 34967 Dcar Mr. Grimm:I4J 003 8 ZURICH This letter serves

L 04/

to acknowledge receipt of

the

above- referenced matter. Please note that

will hc handling this matter on behalf

forward all future correspondence regarding thi:,;

of Zurich Insurance Company ("Zurich").

Pleasc
matter

number and sitc namc. Zurich

my attenti( m, refcrencing the claim
in the process of reviewing this mattcr to determine wllether coverage is available under the
above-referenced policy. Once we havl; sufficilmt information to make a coverage determination,
wewill
contact you. in the interim, Zurich gcnerally reserves all rights available to it under the
to

is

99

22/

11/

11:08

MON

FAX 3059955340 PAD

l4J

004

Grimm November 12,1999

Mr. Daniel

any policy defenses Zurich

it may have issued

aspect of

Page 2

construed as an

ly have under any and all

m:

to

RDt> Royal

Palm Hotel. If

this

matter,
please

call

m~
dirccily at

847)

605-3361.
Very
LVJ~. Myra.

cc:Geri

truly
Wasiunec
ACCOl

1
yours~
lt

Specialist

admission

of coverage,

or

as a waiver of

relevant insurance policies

you have any

questions,

or

wish

to

discuss

any

Miami Beach

Redevelopment Agency
1700 Convention Center

Drive Miami Beach,

Florida
33139

Telephone:305)
(
6737193
Fax: (
305)

6737772 REDEVELOPMENT AGENCY MEMORANDUM

NO.99-'
0

15,

December

1999 TO:
Chairman and
of the

Members

Miami Beach Redevelopment Agency FROM: Sergio Rodriguez

Executive

Director SUBJECT: A
RESOLUTIO mE CHAIRMANAND
MEMBERS OF THE MIAMI BEACH
REDEVELOPMENT AGENCY, APPROPRIATING $106,463.74 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
35

WITH THE

INDEMNIFICATION

CLAUSE

IN

SECTION

OF THE

HOTEL

DEVELOPMENT AGREEMENT

BETWEEN
THE

BEACH

MIAMI

REDEVELOPMENT AGENCY AND RDP ROYAL PALM LIMITED PARTNERSHIP.

1999, the Redevelopment Agency
May 26,
Board, in accordance with the indemnification clause
the
in Section 35 of
ADMINISTRATION RECOM ENDATION: Adopt

the Resolution. ANALYSIS: On

Hotel Development Agreement between

the Redevelopment Agency and RDP Royal

a Resolution appropriating $ 39, 869. 85 in order to reimburse

remediation of contaminated soil found on Royal
adopted

time that

an additional area of

the

Palm Hotel, LP,

(
the Developer),
Developer for costs incurred with the
Palm

site.It
contamination had been identified on the

was

reported at the

Shorecrest

On July 23,1999, the Developer submit ed a claim

site,
to
the Redevelopment Agency in the amount of 134,
$ 580 for cost of the clean- up.On
the Developer to address certain outstanding issues,
September 21,1999, the Administration met with
including the claim for removal of the contaminated fill from the Shorecrest site and the outstanding

delay claim in the

085
36,
of 8
$
amount

in connection
with

the

remdiaton

of the

contaminated

to

certain deficiencies in the

supporting

documentation, the claim for removal of the contaminated

fill would have to be resubmitted. The

Developer has since complied and the Administration,

thoroughly reviewed the documentation provided. Based upon
the review of supporting documentation, the Administration is recommending that the RDA only
106, 463. 74 to the Developer, to the extent that these costs are not
reimburse $
covered by the Developer' s insurance. The Developer has submitted a separate claim to its
outside counsel and consultants have

insurance carrier for recovery of costs incurred in connection with the contaminated soil.To the extent

that any
the

such claim is paid,the Agency will

attached correspondence

be

reimbursed accordingly, as reflected

in

from the Developer. With respect to the delay claim, the Administration and its advisors are continuing
to evaluate the extent (if any)of the City/Agency' s exposure/ liability. The Developer
has

additional information, as requested by the RDA,including alternate critical path schedules

forwarded for review by its consultants.
Daily reports and various other correspondence between the Developer, the Contractor, the Architect
and the Project Manager still need to be gathered, in order to determine if certain concurrent
activities may have actually contributed to any delays.A final assessment of any possible delay
caused in connection with soil contamination might not be possible until the end
submitted

and contractual and insurance documents which the RDA has

of the project. In

accordance

recommended that funding in

with the

the

provisions of the Development Agreement,it is

amount of $106, 463. 74 be appropriated to pay

the necessary costs associated with the removal of the

contaminated
the

soilfrom

Shorecrest

property.

SR/fffKOB ?