165-1999 LTC

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    CTY

    OF

    MAM

    BEACH

    CITY

    HALL

    1700

    O N V E N T I O N

    CENTER

    DRIVE

    MIAMI

    BEACH

    FLORIDA

    3 3 1 3 9

    O F F I C E OF

    THE

    CTY

    M A N A G E R

    T E L E P H O N E : (

    305) 7 3 -

    7010

    FAX (

    305)

    673-

    7782

    July

    29

    999

    M.

    R

    D o n a h u e

    P e e b l e s

    Managing

    M e m b e r

    RDP

    Royal

    Pam

    Hotel

    Lmted

    a r t n e r s h i p

    100

     S

    E

    S e c o n d

    S t r e e t

    S u i t e

    4650

    Miami,

    Florida

    33131VA

    C E R T I F I E D

    MAIL

    R E T U R N

    R E C E I P T

    R E Q U E S T E D N O .

    Z

    6 3

    600

    003Re:

    R o y a l

    Pamr o w n e Paza

    o t e l

    Dear

    Don

    his

    leter

    is

    n

    e s p o n s e

    toou r

    letter

    o

    Juy

    0,

    1999,

    d d r e s s e d

    to

    h r i s t i n a

    M

    uervo,

    A s s i s t a n t

    Cty

    Manage r , apparen t ly

    s i g n e d

    by

    o m e o n e ono u r b e h a l f ,

    concerning

    the

    Royal

    P a l m

    Crowne

    Plaza

    R e s o r t .

    Your

    letter

    r a i s e s several

    mattersto

    which

    I

    feel

    it

    s

    e c e s s a r yto

    e s p o n d

    in

    order

    t h a t

    we

    may

    c r e a t e

    a

    lear

    r e c o r d

    wth

    e s p e c t

    to

    your

    e q u e s t

    for

    a

    e fe r ra l

    o

    a

    portion

    of

    the

    ental,

    a

    uch

    term

    is

    e f i n e din

    the

    g r e e m e n t

    o

    Lease (

    he"

    e a s e ) ,

    dated

    M a y

    28,

    1998,

    b e t w e e n

    the

    i a m i B e a c h

    R e d e v e l o p m e n t

    Agency (

    the "

    w n e r )

    and

    D P

    Royal

    P a l m

    Resort

    L i m i t e d

    P a r t n e r s h i p (

    the "

    Tenant").

    In

    h is

    regard,

    I

    an

    to

    be

    vey

    lear

    that

    the

    n e g o t i a t i o n s

    to

    defer

    a

    o r t i o n

    o

    he

    R e n t a l

    wee

    n s t i t u t e d

    a

    your

    r e q u e s t .

    A d d i t i o n a l l y ,

    the

    ity

    C o m m i s s i o n

    a g e n d a

    tem

    or

    he

    July

    21,

    1 9 9 9 meeting

    of

    the

    Mayor

    and

    Cty

    o m m i s s i o n

    was

    w i t h d r a w n , s o l e l y

    at

    your

    r e q u e s t , aspe

    o u r

    aforementioned

    leter

    of

    July

    20

    9 9 9 .

    In

    he

    o u r s eo

    u r n e g o t i a t i o n s ,

    you

    r e s e n t e d

    a

    d e l a y

    c l a i m

    to

    the

    Cty

    n

    the

    a m o u n t

    o

    a p p r o x i m a t e l y $

    836

    000

    C o n t r a r y

    to

    he

    a s s e r t i o n

    in

    your

    l e t t e r

    that

    thereis"

    no m b i g u i t yas

    to

    he

    City'

    s

    liability,"

    a w r e n c e A.

    Levy,

    Frs

    A s s i s t a n t

    City

    Attorney,

    advised

    your a t t o r n e y ,

    S t u a r t

    Ko f f m a n ,

    E s q . ,

    by

    e t t e r

    dated June

    24

    1999,

    h a t

    the

    O w n e r

    question

    w h e t h e r any

    deay

    c c u r r e d ,

    and,

    in

    n y

    event,

    e n y

    any

    liability

    a r i s i n g

    out

    o

    any

    alleged delay.

    A

    opy

    o

    that

    e t t e r

    was

    p r o v i d e d

    to

    ou.

    In

    ddition,

    rom

    th e

    b e g i n n i n gofhee g o t i a t i o n s ,

    ae l e a s e

    ofny

    c la imsthat

    he

    e n a n t

  • 8/15/2019 165-1999 LTC

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    Mr.

    R.

    Donahue

    Peebles

    July

    29,

    1999

    a g e

    2

    ondit ion

    of

    any

    d e f e r r a l ofR e n t a l,

    a s

    se

    oth

    in

    e d e v e l o p m e n t

    A g e n c y M e m o r a n d u m

    No

    9-42

    Ias

    preparedto

    t a n dby

    y r e c o m m e n d a t i o n

    that

    the

    e m b e r s

    o

    he

    Owner

    approve

    the

    r e s o l u t i o n tha

    ws

    t t a c h e d

    to

    the

    f o r e s a i d

    M e m o r a n d u m

    s u b j e c t to

    a d d r e s s i n g

    the

    e v e l o p e r '

    s

    Fee

    s

    s u c h

    term is

    efined

    in

    he

    Lease),

    and

    some

    a d d i t i o n a l

    legal

    issues.

    As

    you

    re

    e ll

    aware ,

    no

    agreement

    o u l d

    befina

    u n t i l a p p r o v e dby

    he

    members

    o

    he M i a m i

    Beach

    R e d e v e l o p m e n t

    A g e n c y

    aa

    eeting

    duly

    caled

    a n d

    held.

    h e r e f o r e ,

    any

    references

    b y

    you

    ton "

    g r e e m e n t

    in

    your

    letter

    o

    u ly

    20,

    1999

    ae

    n c o r r e c t .

    Your

    letter

    o

    uly

    20,

    1999

    c l e a r l y

    t h r e a t e n s

    the

    City

    with l i t i g a t i o n .

    F o r

    this

    reason,

    I

    ave

    i n s t r u c t e d

    my

    t a f f ,

    a n d

    I

    m

    h e r e b y

    notifying

    you

    on

    b e h a l f of

    the

    City

    and

    the

    Agencyhat t h e r e

    isto

    e no

    u r t h e r

    direct

    c o m m u n i c a t i o n

    w i t h

    the

    City

    M a n a g e r '

    sffice

    o

    n y

    m e m b e r s

    of

    thei t y '

    saff

    with

    respect to

    e i ther

    the

    e f e r r a l

    of

    Rental

    under

    theLease

    o

    it h

    respec

    to

    he

    deay

    claim.Al

    c o m m u n i c a t i o n s

    should

    be

    conducted

    t h r o u g h

    your

    o u n s e l

    with

    ei ther Murray ~.

    p u b b i n ,

    Cty

    t t o r n e y ,

    o

    a w r e n c e

    A

    Levy,

    i r s t

    Ass is tan t

    Cty

    t t o r n e y .

    In

    d d i t i o n ,

    we

    il l

    bringin

    utside

    counseas

    may

    be

    e c e s s a r y

    in

    c o n d u c t i n g

    any

    f u t u r e d i s c u s s i o n s

    o

    e g o t i a t i o n s .

    V e r y

    truly

    yours,

    Sergio

    Rodriguez

    Cty

    M a n a g e r

    MHD:

    LAL:

    bg

    c

    ayor

    Nesen

    asdin

    Vce

    Mayor

    Martin

    Shapiro

    Commissioner

    Simon

    Cuz

    Commissioner

    Dav id

    Dermer

    C o m m i s s i o n e r

    S u s a n

    Gottlieb

    C o m m i s s i o n e r

    Nancy

    Liebman

    C o m m i s s i o n e r

    Jose

    Smi th

    Murray

    H

    ubbin,

    Cty

    ttorney

    Lavvrence

    A

    evy,

    First Assistant

    Cty

    torney

    C h r i s t i n a

    C u e r v o ,

    Assistant

    City

    M a n a g e r

    Ken

    Bonde,

    e d e v e l o p m e n t

    C o o r d i n a t o r

    Joe

    N

    M i n s k e r ,

    Esq., l o o m &

    M i n s k e r

    Stuart

    H o f f m a n , s q . ,

    H o l l a n d

    n i g h t

    F""

  • 8/15/2019 165-1999 LTC

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    OFFICE

    OF

    THE

    CITY

    ATTORNEY

    tfJliomi ~

    mM

    F

    L

    o

    R

    o

    A

    MURRAY

    H.

    DUBBIN

    Cty

    Attornev

    Telephone:

    Telecopy:

    673-

    74

    0 5 )

    1573-

    700

    Juy

    28

    999

    Stuart

    K

    Hof fman,

    Esq

    H o l la n d &

    Kngh

    L P

    7 0 1

    Briekell,

    S u i t e

    3000Mam,

    Forda

    3 3 1 3 1

    VA

    E R T I F I E DU

    S

    AIL

    p

    ETURN

    R E C E I P T R E O U E S T E D R e : R o y a l

    Pam

    r o w n e

    Paza

    Resort

    D e a r

    S t u a r t :

    Ths

    e t t e r

    is

    in

    e s p o n s eto

    our

    letter

    of

    Juy23

    1999

    d d r e s s e d

    to

    he

    City

    of

    Miami

    B e a c h

    and the

    M i a m i

    Beach

    e d e v e l o p m e n t

    Agency.

    o u r

    letteralleges

    ae f a u l to f

    S e c t i o n

    6

    4f

    the

    D e v e l o p m e n t

    A g r e e m e n t b e t w e e n the

    Mam

    B e a c h

    R e d e v e l o p m e n t

    Age:

    J

    y (

    the "

    Owner")

    nd

    R D P

    Royal

    Palm Hotel

    Limited

    P a r t n e r s h i p (

    the "

    e v e l o p e r ) . With

    r e s p e c t

    to

    your

    l l e g a t i o n

    that

    the

    r o j e e t

    has

    been

    e l a y e d

    for

    fifty

    ght (

    8)

    days

    as

      aesult

    of

    th e

    Cty'

    s

    alleged

    default

    to "

    make

    reasonable

    efforts

    to p r o v i d e

    fo r

    expedited

    handling

    of

    al

    revew

    o a r d

    h e a r i n g s

    and/

    or

    e r m i t

    requests

    made

    to

    it

    by

    e v e l o p e r

    relating

    to

    the

    c o n s t r u c t i o n

    o

    the

    p r o j e c t , please

    be

    advised

    t h a t

    the

    ty

    c a t e g o r i c a l l y

    and

    a b s o l u t e l y

    d e n i e s

    any

    uch

    defaut.

    s

    you

    my

    be

    w a r e ,

    a

    meeting

    was

    held

    wth

    Mr.

    R

    D o n a h u e

    Peebles,

    r e p r e s e n t a t i v e s

    o

    he

    Construction

    M a n a g e r

    for

    h e

    P r o j e c t ,

    an d

    the

    n g i n e e r

    of

    r e c o r d ,

    peer

    review

    e n g i n e e r ,

    a n d

    the

    n g i n e e r i n g

    firm

    that

    is

    doing

    theo rk

    on

    th e

    p o s t - t e n s i o n

    aspects

    o

    he

    c o n s t r u c t i o n

    on

    T u e s d a y , July

    27

    9 9 9 ,

    w h i c h

    meeting

    was

    a

    ollow-

    up

    to

    a

    meeting

    held

    on

    Friday,

    July

    23,

    1999,

    ith

    the

    taff

    of

    the

    Building

    Department

    an d v a r i o u s

    C i t y

    and

    RDA

    m p l o y e e s

    with

    M.

    P e e b l e s .

    Th e

    City

    reiterates

    the

    n s t r u c t i o n s

    given

    to

    o u r

    el ients '

    e n g i n e e r s

    in

    o th

    o

    h o s e

    m e e t i n g s

    that

    wth

    e s p e c t

    to

    h e

    post-

    tenson

    design,

    the

    shopdrawings

    fo

    loors

      1

  • 8/15/2019 165-1999 LTC

    5/11

    Stuart

    K

    offman,

    Esq.

    July

    28,

    999

    Page

    Tw o

    The

    City

    d e n i e s

    that

    any default has

    o c c u r r e d

    on

    its

    part.

    To

    he

    c o n t r a r y

    o

    your

    allegation,

    C i t y

    e m p l o y e e s

    in

    he

    u i l d i n g

    D e p a r t m e n t

    have

    w o r k e d

    nights

    a n d

    over

     a

    o l i d a y

    w e e k e n d

    on

    he

    Royal

    Palm

    Crowne

    Plaza

    Resort p r o j e c t ,

    w h i c h

    has,

    in

    fact,

    been

    pu t

    ahead

    o

    ther

    p r o j e c t s

    that

    are

    p e n d i n g

    r e v i e w . Very

    truly

    yours,

    M H D :

    LAL:

    bfg

    cc

    a

    certified

    mal,

    eurn

    r ece ipt

    r e q u e s t e d :

    E l l e n

    Smi th ,

    Esq.

    as s

    Hotels

    and

    Resorts

    Three

    Ravinia

    Drive

    Suite

    2900

    Atlanta,

    G e o r g i a 30346

    RDP

    Roya

    P a l m H o t e l

    Ld.artnership

    c

    P e e b l e s

    A t l a n t i c

    D e v e l o p m e n t C o r p .

    Suite

    4650

    100

    S.

    2nd

    treet

    Mam,

    Florida

    33131

    Attn:R

    o n a h u e

    Peebles,

    P r e s i d e n t

    R D P

    Royal

    Pam

    Hoe

    Ltd.

    P a r t n e r s h i p

    c

    P e e b l e s

    Atlantic

    D e v e l o p m e n t C o r p .

    2600

    V i r g i n i a A v e n u e ,

    North

    Sute

    606

    Washington ,

    DC

    20007

    Atn

    S

    P

    ewell,

    E x e c u t i v e

    Vice P r e s i d e n t

    Bloom &i n s k e r

    1 4 0 1

    B r i c k e ll v e n u e

    Suite

    700

    Mam,

    l o r i d a

    3313

    1

    tn

    JoeM

    insker,

    P

    A

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    33139

    R

    ova l

    P a l m C r o w 7 1 e

    Paza

    H o t e l

    Dear

    h r i s t i n a :

    As

    ou

    are

    aware,

    you

    and

    your

    team

    have

    been

    work ing

    d i l i g e n t l y

    w i t husi n c e

    D e c e m h c r ,

    1998

    to n e g o t i a t e

    an

    g r e e m e n t

    that woul(~

    among

    other

    things,

    modify

    the

    Lease

    and

    p r o v i d e

    fo

    ae f e r r a l

    o

    o r t i o n

    o

    he

    r o u n d

    ren

    fO

    the

    b o v e -

    rcfCl'

    e n c e d

    proect.

    Two

    e e k s

    ago

    t

    p p e a r e d

    that

    e

    ha d

    r e a c h e d

    a

    e n t a t i v e

    a g r e e m e n t

    to

    conclude

    our

    n e g o t i a t i o n s

    and

    the

    Cty

    d m i n i s t n l t i o n

    submi t ted

    an

    u l l i n e

    o

    tha

    g r e e m e n t

    to

    h e Cty

    o m m i s s i o n fill'

    tts

    uly

    1 4 ,

    1999

    m c c t i n g .

    F i n a l action

    onthe

    p p r o v a l

    was

    d e f e r r e d unt il

    the

    u ly

    21

    999

    C o m m i s s i o n

    meeting.

    As

    a

    esult

    o

    he

    Commis::

    ion

    s

    eci~;

    on

    toe f e r

    the

    m a t t e r ,

    we

    h ave h a d anopportunity

    to d i s c u s s

    nuther

    tbe

    r o p o s e d

    agreement

    wth

    ou

    l e n d e r s

    an d

    c o u n s e l. Y a u

    wll

    r e c a l ltha

    ne of

    the

    las

    SSl.

    lCS

    to

    e

    c s o l v c d

    in

    our

    d i s c u s s i o n s

    related

    to   n v i r o n m n t l

    damages

    incurred

    by

    us

    s

    a

    e s u l t

    o

    c o n t a m i n a t e d

    sol

    n

    th e

    p r o p e r t y .The

    r o p o s e d

    a g r e e m e n t

    provided

    f

    RDP

    uyal

    Palm

    Hutt::

    l

    imi ted

    P a r t n e r s h i p

    to

    a i v e

    its

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    o

    n e a r l y $

    1

    0 0 ,

    000

    in

    E n v i r o n m c n t a l

    D.

    l l a g e s (

    as

    efined in

    th~

    Lease);

    n v i n m m t : :

    nta

    D a m a g e s

    that ar e e x p r e s s l y c o v e r e d

    under

    th e

    City'

    s

    ind~

    m n i C i c a t i o l l

    as

    set fOth

    in

    S e c t i o n 35

    3

    o

    ou

    Lease.

    For

    your

    r e f e r e n c e ,

    T

    avt:.'

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    A genc y

    Joe

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    uly

    23

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    P a g e

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    ity

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    6

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    ore

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    H o w e v e r h e