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R98-110RESOLUTION NO. R98-//~ A RESOLUTION OF THE CITY COMMISSION 'OF THE CITY OF BOYNTON BEACH, FLORIDA, AUTHORIZING AND DIRECTING THE MAYOR AND CITY CLERK TO EXECUTE AN ESCROW AGREEMENT BETWEEN THE CITY OF BOYNTON BEACH AND QUANTUM ASSOCIATES, TO SECURE PERFORMANCE OF A SCOPE OF WORK TO BRING PROPERTY INTO COMPLIANCE WITH THE ECOLOGICAL REPORT; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, Quantum Park has been developed pursuant and subject to a DRI Development Order originally approved by the City on December 18, 1984, as thereafter amended; and WHEREAS, pursuant t,o the Development Order, an ecological report was prepared and approved for Quantum Park, originally dated August 4, 1996, as thereafter, amended; and WHEREAS, the parties have agreed that portions of Quantum Park owned by the Quantum Community Development District have not been maintained in accordance with the requirements of the Ecological Report; and WHEREAS, an itemization of the scope of work required to bring Quantum Park into compliance with the Ecological Report has been prepared by the City and is attached hereto; and WHEREAS, to secure the performance of the Scope of Work, Quantum Associates has agreed to place a cash deposit in escrow with the City pursuant to the terms of this Agreement; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF BOYNTON BEACH, FLORIDA, THAT: Section 1. The City Commission of the City of Boynton Beach, Florida does hereby authorize and direct the Mayor and City Clerk to execute an Escrow Agreement between the City.of Boynton Beach and Quantum Associates, to secure performance of a Scope of Work to bring property into compliance with the Ecological Report, said Agreement being attached hereto as Exhibit "A". Section2. This Resolution shall become effective passage. PASSED AND ADOPTED this /.~ day of June, 1998. CITY OF BOYNTON immediately upon FLORIDA Pro Tem Co.m(-nissioner Commissioner ESCROW AGREEMENT ESCROW AGREEMENT ("Agreement'), made and entered intqlthiso~ ~ay of June, 1998, by and between QUANTUM ASSOCIATES, a Florida general partnership ("Owner") and the CITY OF BOYNTON BEACH, a municipal corporation existing under the laws of the State of Florida (the "City"). WITNESSETH: WHEREAS, Owner is the owner of certain vacant lots in the Quantum Park Development of Regional Impact ("Quantum Park") located in the City; and WHEREAS, Quantum Park has been developed pursuant and subject to a DRI Development Order originally approved by the City on December 18, 1984, as thereafter amended (the "Development Order"); and WHEREAS, pursuant to the Development Order, an ecological report was prepared and approved for Quantum Park, originally dated August 4, 1986, as thereafter amended (the "Ecological Report"); and WHEREAS, the parties have agreed that portions of Quantum Park owned by the Quantum Community Development District have not been maintained in accordance with the requirements of the Ecological Report; and WHEREAS, an itemization of the scope of work required to bring Quantum Park into compliance with the Ecological Report has been prepared by the City and is attached hereto as Exhibit "A" (the "Scope of Work"); and WltEREAS, to secure the performance of the Scope of Work, Owner has agreed to place a cash deposit in escrow with the City pursuant to the terms of this Agreement. NOW THEREFORE, in consideration of the premises, the parties agree as follows: reference..- Recitals. The foregoing recitals are true and correct and are hereby incorporated by 2. Escrow Amount. Owner hereby depoSits into escrow with the City the sum of $146,025.00 (the "Escrow Amount"). The Escrow Amount shall be deposited in an interest bearing account and all interest earned thereon shall be added to the principal and thereafter considered part of the Escrow Amount. The City shall hold the Escrow Amount and disburse the same only in accordance with the terms of this Agreement. 3. Terms of Escrow. The purpose of the Escrow Amount is to secure performance of the Scope of Work, such performance to be completed on or before June 1, 1999. The City shall release and disburse the Escrow Amount as follows: a. As the Scope of Work is performed, Owner may request release of that portion of the Escrow Amount attributable to that portion of the Scope of Work theretofore completed. Such request shall be in writing and shall be accompanied by such documentation, as reasonably required by the City, confirming that the portion of the Scope of Work for which payment is requested has been completed. Each partial release of the Escrow Amount shall not exceed the amount estimated for each subcategory itemized in the Scope of Work. b. Upon completion of the Scope of Work, as reasonably determined by the City, the remaining Escrow Amount shall be released to Owner. c. If the City determines that the Scope of Work has not been completed by March 1, 1999, the City shall give written notice to the Owner itemizing the portions of the Scope of Work remaining uncompleted. If the Scope of Work remains uncompleted after June 1, 1999, the City shall be authorized to utilize the remaining Escrow Amount as necessary to complete the Scope of Work. Release of the Escrow Amount shall be triggered by written notification by the City that the Scope of Work has not been performed. Any funds remaining in the Escrow Amount after the Scope of Work is completed by the City shall be returned to Owner. 4. Successors and Assigns. This Agreement shall inure to the benefit of and be binding upon the parties thereto and their successors and assigns. Owner anticipates that the Scope of Work will be performed by the Quantum Park Commtmity Development District (the "CDD"), as the entity responsible for maintaining the common elements, including the environmental areas, within Quantum Park. Accordingly, the City acknowledges that notwithstanding that the CDD or another third party may in fact perform the Scope of Work, the Escrow Amount shall be disbursed only to the Owner or its specifically identified successor or assign. In the event Owner assigns its interest under this Escrow Agreement, a written copy of such assignment shall be provided to the City identifying the name and address of the Owner's assignee. 5. Notices. All notices given hereunder shall be in writing and shall be delivered to the respective parties either by hand delivery, certified U.S. mail, remm receipt requested, Federal -2- Express or other recognized overnight courier service, or by facsimile transmission with hard copy to follow. All notices shall be addressed to the parties at their addresses set forth below: As to Owner: Quantum Associates c/o Arthur Felsher Simon Property Group Merchants Plaza 115 W. Washington Street Indianapolis, Indiana 46204 With copy to: James G. Willard, Esquire Shutts & Bowen LLP 20 N. Orange Avenue - Suite 1000 Orlando, Florida 32801 As to City: City of Boynton Beach Attn: Kerry Willis, City Manager 100 East Boynton Beach Blvd. Boynton Beach, Florida 33425 With copy to: James A: Cherof, Esquire City Attorney c/o Josias & Goren, P.A. 3099 East Commercial Boulevard - Suite 200 Fort Lauderdale, Florida 33308 6. Reliance. Other than as set forth in' the Scope of Work, the City hereby represents that there are no other defaults or deficiencies with respect to the Quantum Park Ecological Report. It is further acknowledged that the proposed purchaser of the remaining lots in Quantum Park, Quantum Limited Partners, Ltd., shall be entitled to rely upon the foregoing representation. 7. General Matters. of Florida. This Agreement shall be construed in accordance with the laws of the State B. In the event of litigation arising from the terms of this Agreement, the prevailing party shall be entitled to recover both its costs and reasonable attorneys' fees, both at trial and on appeal. -3- C. In the event the City is in doubt as to its duties under the terms of this Agreement, the City shall have the option of filing an interpleader action in the Palm Beach County Circuit Court and depositing the Escrow Amount into the registry of the Court. The nonprevailing party in any such interpleader action shall be responsible for paying the City's reasonable attorneys' fees and costs associated with such interpleader. WHEREFORE, Owner and the City have executed this Agreement as of the day and year first above written. "OWNER" QUANTUM ASSOCIATES, a Florida general partnership By: QUANTUM SIMON, INC., a Indiana corporation, gene,ral partner By: ~,o~ /~-~~ Print Name: ~ ~'~ ~ /~{3' }~ ~ Title: [/I c.-e~ ~r~ f .'~t~ [CORPORATE SEAL] "CITY" Approved As To Form James A. Ql{erof, City Att0h~/ey -/ CITY OF BOYNTON BEACH, a municipal corporation ORL95 83879.2 - SMW Draft Date 06105/98 -4- LEISURE SERVICES: PARKS MEMORANDUM #98-98 TO: FROM: THROUGH: RE: DATE: Quantum Associates Kevin J. Hallahan, Forester/Environmentalist John Wildner, Parks Superintendent Quantum Park - Environmental Areas Deficiencies - REVISED Items are in Italics May 26, 1998 This memorandum is in response to the letter from James G. Willard of May 5, 1998, pertaining to the above topic. The following is a listing of the seven major environmental improvements on the Quantum Park properties. The tabular summary indicates the site improvement, controlling legal document, and specific deficiency for each of the seven improvements. The ownership/responsibility to bring these seven areas rolo compliance is the Quantum Park Community Development District (CDD). Seven Site Improvements: Ownership/Responsibility: 1. Forty Acre Sand Pine Preserve CDD 2. Hardwood Swamp/Freshwater Marsh Habitat CDD 3. Upland Vegetation Around 50% of Lake Perimeters CDD 4. All Melaleuca, Brazilian Pepper, Australian Pine Removed From Sites CDD 5. Landscape/Irrigation of Roadway Medians/R.O.W' s CDD 6. Sand Pine Preserve - Scrub "Fingers" Creation CDD 7. Sand Pine Scrub-Microsites Preservation CDD TABLE OF CONTENTS II. III. IV. SITE IMPROVEMENTS #1, #2 site improvement, controlling legal document, specific deficiency SITE IMPROVEMENTS #3, #4 site improvement, controlling legal document, specific.deficiency SITE IMPVOVEMENTS #5, #6 site improvement, controlling legal document, specific deficiency SITE IMPROVEMENT #7 site improvement, controlling legal document, specific deficiency ESTIMATED REMEDIATION COSTS Site improvements #1, #2 ESTIMATED REMEDIATION COSTS Site improvements #3, g4 ESTIMATED REMEDIATION COSTS Site improvements #5, #6 ESTIMATED REMEDIATION COSTS Site improvement #7 Total estimated costs to complete all seven improvement areas P~el Page 2 P~e3 P~e4 Page 5 P~e6 Page 7 P~e8 Page I Description: Forty Acre Sand Pine Preserve Controlling Legal Document: · Development of regional impact (D.O.) condition # 6c, pg. 4, pg. 13. · · Ecological Plan (E.P.) Document, pgs. 69-70. Deficiency: · ... provide and maintain suitable habitat for species...which are relocated into the area(s) · ...continued maintenance... Remediation Activities: · roads and trails removal · exotic vegetation removal · signage installation (optional) · fence repair · debris removal · native trees/vegetation restoration Description: Hardwood Swamp/Fresh Water Habitat 5.5 acres littoral zone, 6.0 acres seasonally flooded wetlands Controlling Legal Document: · D.O. condition #9c, pgs. 5,6 · E.P., pg. 7.5 Deficiency: , ... shall be maintained and comprised of species that are representative of hardwood swamp habitat.., · ... assure the continued viability, health and function of the wetland. Remediation Activities: · exotic vegetation removal · debris removal · native trees/vegetation restoration · irrigation systems restoration Page 2 Description: Upland Vegetation Around 50% o£Lake Perimeters Controlling Legal Document: · D.O. condition #10, pg. 6 · E.P., pg. 7.5 Deficiency: · ... provide and maintain a buffer of' native upland vegetation... Remediation Activities: · exotic vegetation removal · debris removal · native trees/vegetation restoration · irrigation systems restoration · allprivately-owned lots abuttingplanted lam edges will have a minimum of left as a buffer, i.e. sodded natural or planted (as per City Code). No permanent structures allowed in the buffer. Description: Removal of all MelaleuCa, Brazilian Pepper and Australian Pine Trees Controlling Legal Document: · D.O. condition, #11, pgs. 6,7 Deficiency: · ... all Melaleuca, Brazilian Pepper, and Australian Pine which occur on site shall be removed. Remediation Acti,~fies: · exotic vegetation removal for CDD ownership/responsibility areas only, · exis#ngprivately-owned lots addressed under City Code of Ordinance, Environmental Chapter 7.5 and cleared on a lot-by-lot development. Page 3 Description: Landscape/Irrigation of Roadway Medians/R.O.W' s Controlling Legal Document: · D.O. ~41,//42, pgs. 15,16 Deficiency: · ...and subsequent maintenance shall be the obligation of the City (revised February 16, 1988, memo. ~90-200) now Quantum Associates. Remediation Activities: · replacement of missing trees, shrubs, sod and other vegetation in accordance with City of Boynton Beach approved landscape plans (February 16, 1988). · renovation of existing irrigation systems in accordance with the above landscape plans for 100% coverage of trees/vegetation. Description: Sand Pine Scrub "Fingers" Creation Addendum, (7) Acres February 6, 1987 Controlling Legal Document: · Scrub Pine Scrub "Fingers" document, pgs. 1,2 , E.P. pg. 73.1 Deficiency: · ... species richness, diversity, and percent cover will be monitored quarterly. · ...temporary irrigation system Remediation Activities: · renovation/addition of temporary irrigation systems · debris removal · Dr. Don Richardson will submit a letter to the City Forester/Environmentalist to omit site improvement #6from the requirements of this document. Page Description: Sand Pine Scmb-Microsites Preservation (12 Acres) Controlling Legal Document: , D.O. condition #91 c, pg. 10 * E.P. Amendment #3, December 20, 1988, original August 1986 Deficiency: · all (12) acres have not been submitted to City of Boynton Beach or Treasure Coast Regional Planning Council for final approval. · proper maintenance of Sand Pine Preserve Area # 2 hem in abeyance for microsites (12 acres) obltgation. , proper maintenance of three sites currently approved as microsites byprivately- owned Remediation Activities: · exotic vegetation removal · debris removal · replanting native vegetation · allocation of remainder of 12 acres Page 5 ESTIMATED COSTS FOR REMEDIATION TO IMPROVEMENTS #1 Roads & trails removal $3,000 Forty Acre Sand Exotic vegetation removal $5,000 Pine Preserve Sig~age installation (optional) Completed Existing fence repair $15,000 Debris removal $3,500 (Omittmgfi'ompla~O Replanting scrub fingers Omit Sub-total $26,500 Monthly maintenance $750 Grand Total: $27,250 #2 Exotic vegetation removal $30,000 Hardwood Swamp/ Debris removal $2,000 Freshwater Marsh Replanting native vegetation $1,500 ~tabitat Irrigation system renovation $1,000 Sub-total $34,500 Monthly maintenance $750 Grand Total: $35,250 Page 6 #3 Exotic vegetation removali Completed Upland Vegetation Around 50% of Lake Perimeters #4 All Melaleuca, Brazilian Pepper, Australian Pine Removed From Sites Debris removal Replanting native vegetation Irrigation system renovation Sub-total Monthly maintenance Grand total: Exotic tree removals from all sites $2,000 Not required $750 $2,750 See individual site improvement estimated costs Notrequ~ed $2,000 Pa~e ? #5 Landscape/Irrigation of Roadway Medians/R.O.W.'s #6 Sand Pine Preserve Scrub "Fingers" Creation (Omitting from plan) Replacement of missing trees, shrubs, sod, and other vegetation in accordance with City of Boynton Beach approved landscape plans (February 16, 1988) Renovation of existing irrigation systems in accordance with above landscape plans for 100% coverage of trees and $10,000 $40,000 of landscape and irrigation (temporary)irrigation systems Debris removal Sub-total Monthly maintenance (specifically for these "fingers") Grand total $12,000 $62,000 Omit Omit Omit Omit Omit Pa'§e 8 #7 Sand Pine Scrub - Microsites Preservation Exotic vegetation removal Debris removal Replanting native vegetation. Sub-total Monthly maintenance Grand Total Total estimated costs to complete all seven improvement areas: $2,000 $1,500 $1,500 $5,000 $500 $5,500 $13~750 KH:ad