HomeMy WebLinkAboutHandouts_Regular_Tab 19 and Tab 20__11/14/2013_Tequesta Cove Fox Rothschild «P
ATfORNE1fS AT LAW
Esperante Building
222 Lakeview Avenue. Suite 700
West Palm Beach, FL 33401
Tel 561.835.9600 Fax 561.835.9602
tivww.foxrat hschifd.tom
September 3, 2013
VIA CERT1FiED MAIL. RETURN RECEIPT REOUESTED
David E. Weiss, Esq.
Executive Vice Presidenl & General Counsel
DDR Corp.
3300 Enterprise Parkway
Beachwood, OH 44122
Dear Mr. Weiss:
Please be advised that this firtn is counsel to Tequesta Cove Condominium Association, Inc. (the
"Association"). The Association go�crns condominium units in a residential community situated on the
[ntracoastal Waterway in Pa1m Beacli County, Florida {"Tequesta Cove"}. Tequesta Cove is located
directly east of a relail shopping plaza commonly known as the Shoppes of Tequesta ("Tequesta
Shoppes"). An aerial photograph depicting the locations of Tequesta Cove and Tequesta Shoppes is
attached hereto as Exhibit A. The Tequesta Shoppes properry is owned by your subsidiary, DDR
Southeast Tequesta, L.L.C. ("DST"}. We write you concerning damages to Tequesta Cove's property.
As explained below, your urgent attention to this matter is requested.
Approximately four months ago,; the Association became aware of erosion to structural pilings on the
Tequesta Cove property. The A'ssociation subsequently e»gaged the services of A.T. Designs, Inc. to
determine the cause oF the erosion. Tim Marshall, P.E., tlle president of A.T. Designs, concluded that
the damage is being caused by runoff deposited in a surface water drain at the northeast corner of the
privacy wall separatin� the Tequesta Shoppes from Tequesta Cove. This water is being diverted with
extreme velocity and extraordinary volumes into a culvert (the "Culvert") situated near the northern
houndary of the Tequesta Cove 'property. Photographs taken Iast week depicting discharge from the
Culvert are attached hereto as Exhibit B .
Consequently, Bill Dou�herty, LCAM, tl�e Association's property manager has spoken with various
representatives of the Villa�e of Tequesta ("Village"), the South Florida Water Management District
("SFWMD"), and the Loxahatchee River Environrnenta) Control District to determine if DST
has the legal right to drain its storm water into and through the Culvert. Mr. Dougherty has been
informed that the Culvert belongs to Tequesta Cove.
Attached as Exhibit C is a February 22, 1984 call report Mr. Dougherty obtained from the SFWMb.
You'll note the project cited is "Pride Plaza," the prior name associated with the Tequesta Shoppes
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Fox Rothschild ��P
ATfORNEYS AT LAW
David E. Weiss, Esq.
September 3, 2013
Page 2
property. As stated in the report, the discussion pertained to:
Where the structures discharge to —
North Structure — will tie into Tequesta Cove System — an easement will be provided.
South Structure — to an existing casement — disch. to IntracoasEal
The report further states that "conclusions reached or items agreed to" consisted of a determination that
the [permit application woutd be accepted canditioned upon the permittee] submission & recordation of
the aforementioned easement.
The SFWMD a[so provided Mr. Dougherty copy of the special conditions referenced in Exhibit D. A
copy of the special conditions is attached hereto as Exhibit D. Please note that item number 12
specifies that "[t]he permitiee shall provide to [SFWMD] a copy of the recorded drainage easement
from Tequesta Cove."
Lastly, the SFWMD furnished a March, 1986 sketch to Mr. Dougherry, a copy of whieh is attached as
Exhibit E. The sketch, prepared by Lindahl, Browning, Ferrari & Hellstrom, lnc. (the "LBF+H"
referenced as a party to the discussion evidenced by Exhibit B). The sketch mirrors the S�WMD
stipulation that discharge from the Tequesta Shoppes property shall be ihrou�h pipelines to the
Intracoastal Watenvay, one of which is depicted along the northern boundary line shared with Tequesta
Cove.
Although we ane still awaiting receipt of a search report from our title abstractor, we have been unable
to locate any easements of record from Tequesta Cove to DST or its predecessors in title. And while it
is unclear how improvements to the Tequesta Shoppes properry were constructed without adhering to
the terms outlined in Exhibit D, it appears tliat lhe S�'WMD issued the permit without requiring the
requested easement or other reasonable assurances that the Tequesta Shoppes developer had legal
positive outfall rights.
Until a complete, accurate, and reproducible survey and soil analysis is perfoRned, the Association
cannot fully assess the scope of ti�e requisite repairs. However, as evidenced by the pictures comprising
composite Exhibit B, the Cutvert is not engineered to accommodate the overflow associated wiih
conventional standards of rainfall: The volume of discharge from normal weather does not enabie the
Culvert to properly convey runof�, leading to further degradation of the Tequesta Cove property.
Based upon Mr. Marshall's analysis, DST's surface water management system suf�ers from defects and
deficiencies related to Ehe civil engineering and design services. These flaws have caused actual,
resultant and ensuing property and other dama�es to the Tequesta Cove property and adjacent
properties, includin� loss of use, in a continuous and progressive manner. The defects alle6ed to exist at
the Tequesta Shoppes for which the Association alle�es DST is legally liable appear to inciude, without
limitation: (i) inadequate site grading, including insufficient slopes of swales and flow lines; (ii)
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Fox Rothschild ��P
ATTORNEYS AT LAW
David E. Weiss, Fsq.
September 3, 2U13
Page 3
drainage deficiencies, including channels incapable of accommodating the velocity and directing of
water runoff to adequately p�otect property from injury; and (iii) insufficient erosion control to prevent
the degradation of the outfal l and channel structures.
To the extent the Association's claims are proven correct, the deficiencies and defects for which DST is
legally liable, have caused, and continue to cause, actual properry damage, resultant and consequential
property and other damages, loss of use and/or other losses requiring the necessiry to repair "fequesta
Cove's land and improvements thereon.
Accordingly, the Association hereby demands that DST promptfy investigate the defects at the Tequesta
Shoppes, and make a written offer to remedy a!1 construction defects as described above. You may
contact the undersigned to schedule an inspection of the Tequesta Cove property.
We also ask that you immediately place all relevant insurance companies on notice (primary, umbrella
and excess) of the claims presented by the Association. Further, please provide a complete copy of the
insurance policies (primary, umbrella and excess) under which DST may be eovered to the undersibned
counsel.
In the event DST refuses to discuss this matter further or seeks to assert that remediat efforts are
unnecessary, then we interpret such response to mean that DST has determined that it does not need to
utilize the Culvert for any purpose. [f'such is the result, then the Assaciation requests that DST and its
contractors immediately commenae utilization of an alternate route around Tequesta Cove's property to
avoid any further adverse impact to Tequesta Cove's infrastructure. As noted above, the Association
has already been informed by the Village that the Culvert is owned by Tequesta Cove. Inasmuch as
there does not appear to be an easement granting DST rights to the Culvert, as an alternative remedy, the
Assoeiation has already commenced the application process for a permit ganting it the right to cap the
Culvert. The consequences of this action will undoubtedly result in more significaot expense to DST
than cooperating in good faith with Tequesta Cove to remedy the harm caused by its allegedly unlawful
use of the Culvert. By means of example, a�y alternaEive surface water management system witl
assuredly necessitate oversight from the Florida Department of Environmental Protection to ensure that
the system's desi�n and constructian do not adversely impact the environmental sensitivity of the
protected mangroves alon� the Intracoastal Waterway,
While we understand that you will need to discuss this matter with your sabsidiary and its insura�ce
carrier, we request that you provide a respanse to the undersigned no later than September 10, 2013 so
that �ve can commence a productive dialogue. Should we be unable to resolve the ciaims asserted
against DST prior to incurcing additional fees and costs associated with additional discavery, the
demands set forth above will be withdrawn and the Association will simultaneously proceed with its
efforts to obtain authorizntion to block the Culvert and pursue any aod all rights availabte at equiry and
law.
As noted above, documents are still being produced and reviewed in this matter and we reserve the right
to modify the demands contained herein should additional information become available.
�
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Fox Rothschild ��P
arroRNers ar u�w
David E. Weiss, Esq.
September 3, 2013
Page 4
Thank you for your prompt attention this matter. We look forward to working with you in an attempt to
resolve the claims asserted against DS"1'. !f you have any questions or need additional information,
please do not hesitate to call.
Sincerely,
FOX ROTHSCHILD LLP
�� ��,� "�--�—
, Peter L. Blacklock
PLB/mj
Enclosures
cc: Tequesta Cove Condominium Association, fnc.
Lou Marino, President (via e-mail)
Bristol Mana�ement Services, Inc.
Bill Dougherly, LCAM (via e-mail}
A.T. Designs, lnc.
Tim Marshall, President (via e-mail)
V il lage of Tequesta
Michael R. Couuo, Jr., Village Manager
Joe Petrick, Code Compliance Ot�icer
Mark McClintock; Water Distributian Supervisor
Buck Evans, Building Official / Inspector
Nilsa Zacarias, Community Development Director
Loxahatchee River Environmental Control District
Clinton R. Yerkes, Depury Executive Director
Kenneth "Bud" Howard, Director of Water Resources
South Florida Water Management District
Caro[yn S. Ansay, Esq., Gcncral Counsel
AC'f1VE 22351726v2 09I0312013 3:03 PM
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