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HomeMy WebLinkAboutCRA-R-26-0019 MemorandumSEOPW Board of Commissioners Meeting April 23, 2026 SOUTHEAST OVERTOWN/PARK WEST COMMUNITY REDEVELOPMENT AGENCY INTER -OFFICE MEMORANDUM To: Board Chair Christine King Date: April 23, 2026 and Members of the CRA Board File: 19200 From: James McQueen Executive Director Subject: CitizenM Miami Worldcenter Settlement Agreement w/ Electraserve, Inc. Enclosures: File # 19200 - Exhibit A File # 19200 - Backup_Settlement Parties File # 19200 - Backup_OSIB MWC Property Search BACKGROUND: A Resolution of the Board of Commissioners of the Southeast Overtown/Park West Community Redevelopment Agency ("SEOPW CRA"), with attachment(s), authorizing the Executive Director to execute a Settlement Agreement and Release ("Agreement"), attached and incorporated herein as Exhibit "A," between the SEOPW CRA, Electraserve, Inc., a Florida For -Profit Corporation ("Electraserve"), Suffolk Construction Company, Inc., a Foreign For -Profit Corporation authorized to conduct business in the State of Florida ("Suffolk") and OSIB Miami World Center Properties LLC, a Foreign Limited Liability Company authorized to conduct business in the State of Florida ("OSIB") in the amount of Seven Hundred Thousand Dollars and Zero Cents ($700,000.00) ("Funds") in connection with the construction of the CitizenM at Miami Worldcenter, located at 700 Northeast 2nd Avenue, Miami, Florida 33132 (Folio no. 01-3137-036-0040) ("Purpose"). It is recommended that the Board of the SEOPW CRA approve and adopt the attached Resolution, authorizing the allocation of the Funds to the SEOPW CRA for the Purpose stated herein. JUSTIFICATION: Pursuant to Chapter 163, Florida Statutes, the Southeast Overtown/Park West Community Redevelopment Agency ("SEOPW CRA") is responsible for carrying out community redevelopment activities and projects within its redevelopment area ("Redevelopment Area") in accordance with the 2018 Updated Southeast Overtown/Park West Redevelopment Plan (the "Plan"). FUNDING: $700,000.00 allocated to SEOPW CRA Account No. 10051.920101.4690000.0000.00000 — Non-TIF Revenue. FACT SHEET: Entity name(s): Electraserve, Inc., a Florida For -Profit Corporation; Suffolk Construction Company, Inc., a Foreign For -Profit Corporation authorized to conduct business in the State of Florida; and OSIB Miami World Center Properties LLC, a Foreign Limited Liability Company authorized to conduct business in the State of Florida. Address: 700 Northeast 2nd Avenue, Miami, Florida 33132 (Folio no. 01-3137-036-0040). Settlement Amount: $700,000.00 Scope of work or services (Summary): To resolve, settle and dismiss all claims and all issues with respect to the construction of the CitizenM at Miami Worldcenter. Page 2 of 7 AGENDA ITEM FINANCIAL INFORMATION FORM SEOPW CRA CRA Board Meeting Date: April 23, 2026 CRA Section: Brief description of CRA Agenda Item: RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE SOUTHEAST OVERTOWN/PARK WEST COMMUNITY REDEVELOPMENT AGENCY ("SEOPW CRA"), WITH ATTACHMENT(S), AUTHORIZING THE EXECUTIVE DIRECTOR TO EXECUTE A SETTLEMENT AGREEMENT AND RELEASE ("AGREEMENT"), IN SUBSTANTIALLY THE FORM ATTACHED AS EXHIBIT "A," BETWEEN THE SEOPW CRA, ELECTRASERVE, INC., A FLORIDA FOR -PROFIT CORPORATION ("ELECTRASERVE"), SUFFOLK CONSTRUCTION COMPANY, INC., A FOREIGN FOR -PROFIT CORPORATION AUTHORIZED TO CONDUCT BUSINESS IN THE STATE OF FLORIDA ("SUFFOLK"), AND OSIB MIAMI WORLD CENTER PROPERTIES LLC, A FOREIGN LIMITED LIABILITY COMPANY AUTHORIZED TO CONDUCT BUSINESS IN THE STATE OF FLORIDA ("OSIB") IN THE AMOUNT OF SEVEN HUNDRED THOUSAND DOLLARS AND ZERO CENTS ($700,000.00) ("FUNDS") IN CONNECTION WITH THE CONSTRUCTION OF THE CITIZENM AT MIAMI WORLDCENTER, LOCATED AT 700 NORTHEAST 2ND AVENUE, MIAMI, FLORIDA 33132 (FOLIO NO. 01-3137-036- 0040) ("PURPOSE"), ALLOCATING FUNDS TO ACCOUNT NO. 10051.920101.4690000.0000.00000 - NON-TIF REVENUE; FURTHER AUTHORIZING THE EXECUTIVE DIRECTOR TO NEGOTIATE AND EXECUTE ANY AND ALL DOCUMENTS NECESSARY, INCLUDING ANY AND ALL AMENDMENTS THERETO, ALL IN FORMS ACCEPTABLE TO COUNSEL, FOR THE PURPOSE STATED HEREIN; PROVIDING FOR THE INCORPORATION OF RECITALS AND AN EFFECTIVE DATE. Project Number YES, there Account Code: (if applicable): are sufficient funds in Line Item: 10051.920101.469000.0000.00000 Amount: $ 7 0 0, 0 0 0.0 0 NO (Complete the following source of funds information): Amount budgeted in the line item: $ Balance in the line item: $ Amount needed in the line item: $ Sufficient funds will be transferred from the following line items: ACTION ACCOUNT NUMBER TOTAL Project No./Index/Minot Object From $ To $ From $ To $ Comments Page 3 of 7 Approved by: Approval: Executive Director 4/16/2026 Miguel A Valcntiri, Finance Officer 4/16/2026 Page 4 of 7 Southeast Overtown/Park West Community Redevelopment Agency File Type: CRA Resolution Enactment Number: CRA-R-26-0019 File Number: 19200 Final Action Date:4/23/2026 A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE SOUTHEAST OVERTOWN/PARK WEST COMMUNITY REDEVELOPMENT AGENCY ("SEOPW CRA"), WITH ATTACHMENT(S), AUTHORIZING THE EXECUTIVE DIRECTOR TO EXECUTE A SETTLEMENT AGREEMENT AND RELEASE ("AGREEMENT"), IN SUBSTANTIALLY THE FORM ATTACHED AS EXHIBIT "A," BETWEEN THE SEOPW CRA, ELECTRASERVE, INC., A FLORIDA FOR -PROFIT CORPORATION ("ELECTRASERVE"), SUFFOLK CONSTRUCTION COMPANY, INC., A FOREIGN FOR -PROFIT CORPORATION AUTHORIZED TO CONDUCT BUSINESS IN THE STATE OF FLORIDA ("SUFFOLK"), AND OSIB MIAMI WORLD CENTER PROPERTIES LLC, A FOREIGN LIMITED LIABILITY COMPANY AUTHORIZED TO CONDUCT BUSINESS IN THE STATE OF FLORIDA ("OSIB") IN THE AMOUNT OF SEVEN HUNDRED THOUSAND DOLLARS AND ZERO CENTS ($700,000.00) ("FUNDS") IN CONNECTION WITH THE CONSTRUCTION OF THE CITIZENM AT MIAMI WORLDCENTER, LOCATED AT 700 NORTHEAST 2ND AVENUE, MIAMI, FLORIDA 33132 (FOLIO NO. 01-3137-036-0040) ("PURPOSE"), ALLOCATING FUNDS TO ACCOUNT NO. 10051.920101.4690000.0000.00000 — NON-TIF REVENUE; FURTHER AUTHORIZING THE EXECUTIVE DIRECTOR TO NEGOTIATE AND EXECUTE ANY AND ALL DOCUMENTS NECESSARY, INCLUDING ANY AND ALL AMENDMENTS THERETO, ALL IN FORMS ACCEPTABLE TO COUNSEL, FOR THE PURPOSE STATED HEREIN; PROVIDING FOR THE INCORPORATION OF RECITALS AND AN EFFECTIVE DATE. WHEREAS, the Southeast Overtown/Park West Community Redevelopment Agency ("SEOPW CRA") is a community redevelopment agency created pursuant to Chapter 163, Florida Statutes, and is responsible for carrying out community redevelopment activities and projects within its Redevelopment Area in accordance with the 2018 Updated Southeast Overtown/Park West Community Redevelopment Plan ("Plan"); and WHEREAS, Electraserve, Inc., a Florida For -Profit Corporation ("Electraserve"), Suffolk Construction Company, Inc., a Foreign For -Profit Corporation authorized to conduct business in the State of Florida ("Suffolk") and OSIB Miami World Center Properties LLC, a Foreign Limited Liability Company authorized to conduct business in the State of Florida ("OSIB") (collectively, the "Parties"), are parties to various agreements, arising under the First Amendment to the Amended and Restated Miami Worldcenter Economic Incentive Agreement dated November 15, 2021 and recorded November 16, 2021 in Official Records Book 32850, at Page 4845 of the Public Records of Miami -Dade County, Florida (the "EIA"), with specific respect to the construction of the CitizenM at Miami Worldcenter ("Project"), located at 700 Northeast 2nd Avenue, Miami, Florida 33132 (Folio no. 01-3137-036-0040) (the "Property"), which is subject to the terms of the EIA; and Page 5 of 7 WHEREAS, the Parties had certain obligations with respect to the Project and under the EIA; and WHEREAS, based upon a compliance review, the SEOPW CRA sent notice of violations arising under the EIA to Suffolk and OSIB (the "Notice"); and WHEREAS, the Parties dispute the Notice and wish to resolve the matter in a mutually efficient manner and without admission of liability; and WHEREAS, the Executive Director and the Parties desire to execute a Settlement Agreement and Release ("Agreement"), in substantially the form attached as Exhibit "A," to resolve, settle, and dismiss all disputed claims, and all issues between them with respect to the Project and the Notice ("Purpose"); and WHEREAS, per the terms of the Agreement, Electraserve shall pay or cause to be paid to the SEOPW CRA the settlement sum of Seven Hundred Thousand Dollars and Zero Cents ($700,000.00) within twenty (20) days of its execution; and WHEREAS, effective upon receipt of the Funds in full, the SEOPW CRA shall provide the Parties with a release limited to the disputes between the Parties, arising out of and in connection with the EIA, specifically with respect to the Notice, as more particularly described in the Agreement, in substantially the form attached as Exhibit "A"; and WHEREAS, the Board of Commissioners wishes to authorize the execution of the Agreement and the settlement sum of Seven Hundred Thousand Dollars and Zero Cents ($700,000.00) ("Funds") to be paid to the SEOPW CRA for said Purpose; and WHEREAS, the Board of Commissioners finds that authorizing this Resolution would further the SEOPW CRA's redevelopment goals and objectives. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COMMISSIONERS OF THE SOUTHEAST OVERTOWN/PARK WEST COMMUNITY REDEVELOPMENT AGENCY: Section 1. The recitals and findings contained in the Preamble to this Resolution are adopted by reference and incorporated herein as if fully set forth in this Section. Section 2. The Board of Commissioners hereby authorizes the Executive Director to execute the Agreement, in substantially the form attached as Exhibit "A," and to accept the Funds to be paid to the SEOPW CRA for the Purpose stated herein. Section 3. The Executive Director is hereby authorized to execute the Agreement, in substantially the form attached as Exhibit "A," for said Purpose. Section 4. Funds are hereby allocated to Account No. 10051.920101.4690000.0000.00000 — Non-TIF Revenue to further the Purpose stated herein. Section 5. This Resolution shall become effective immediately upon its adoption. APPROVED AS TO FORM AND LEGAL SUFFICIENCY: Page 6 of 7 4 ounsel 4/16/2026 Page 7 of 7