Emerald Construction sues for $4M in unpaid work at South Beach Kimpton hotel

Firm alleges developer Ronny Finvarb has not paid more than 50 change orders dating back to last year

TRD MIAMI /
Apr.April 24, 2020 09:45 AM
Ronny Finvarb and Kimpton Hotel Palomar South Beach

Ronny Finvarb and Kimpton Hotel Palomar South Beach

A month after Ronny Finvarb completed a Kimpton Hotel in Miami Beach, a general contractor is accusing the developer of skipping out on more than $4 million in unpaid construction work.

Hollywood-based Emerald Construction Corp. sued Finvarb’s Sobe Alton LLC for nonpayment in Miami-Dade Circuit Court on April 9.

The Kimpton Hotel Palomar South Beach at 1750 Alton Road opened in early March, about two weeks before Miami-Dade Mayor Carlos Gimenez ordered all county hotels, motels and short-term rental properties to shut down operations to help slow the spread of coronavirus.

Emerald’s lawyers Oscar Soto and Jose Rodriguez did not respond to phone messages and emails requesting comment.

Trey Tate, Sobe Alton’s attorney, disputed that his client owed any money to Emerald. “Sobe Alton disputes all claims raised by Emerald in the complaint,” Tate said. “Sobe Alton is current on all payments to Emerald and will respond accordingly in court.”

According to the lawsuit, Sobe Alton and Emerald Construction entered into a contract in April 2017, about a month before Finvarb secured a $27.56 million construction loan to build the 96-key hotel near Miami Beach’s Sunset Harbour neighborhood. The loan was provided by a consortium of TotalBank, Florida Community Bank and Apollo Bank.

The project was slated to be completed in 2018, but faced “owner-created and design delays” that resulted in an adjustment to the construction timeline, Emerald Construction alleges.

“Despite Emerald Construction making proper and timely claim for extended general conditions and additional time of performance as a result of these delays and added scope of
work, owner has refused to acknowledge or otherwise compensate Emerald Construction accordingly,” the lawsuit states.

Furthermore, Sobe Alton allegedly refused to approve and fund more than 50 change orders despite requesting them in order to complete the hotel, Emerald Construction claims. In addition, Finvarb’s company has failed to mediate the dispute, despite numerous attempts by Emerald Construction to settle its bill, according to the suit.

Emerald Construction claims it provided a total value of $19.7 million in construction labor, services and material, and is owed roughly $3.7 million. Combined with interest and attorney fees, Emerald Construction is seeking more than $4 million in damages.

Finvarb’s Kimpton Hotel was designed by Kobi Karp with Permuy Architecture as the architect of record. The five-story building features a central atrium, a rooftop pool and a restaurant space overlooking Collins Canal. Finvarb built the property next door to the Marriott Residence Inn South Beach, which the Finvarb Group developed.


Related Articles

arrow_forward_ios
Miami Beach Votes To Reopen Pools (Credit: iStock)

Miami Beach votes to reopen pools in resi buildings, but needs the county to sign off

Miami Beach votes to reopen pools in resi buildings, but needs the county to sign off
Miami Beach Mayor Dan Gelber and City Manager Jimmy Morales (Credit: Nicholas Hunt/Getty Images, and Mike Coppola/Getty Images)

Miami-Dade targets June 1 opening date for hotels, beaches following Miami Beach vote

Miami-Dade targets June 1 opening date for hotels, beaches following Miami Beach vote
Seritage Growth Properties stopped construction at Esplanade at Aventura because of the pandemic, and now Mexican restaurant Carolo wants to break its lease.

Esplanade at Aventura work stoppage leads to lawsuit by Mexican restaurant

Esplanade at Aventura work stoppage leads to lawsuit by Mexican restaurant
2138 Bay Avenue, Miami Beach (Credit: Google Maps)

Toronto financier pays $14M for Sunset Islands home

Toronto financier pays $14M for Sunset Islands home
Stephen Gravett, CEO of Kennedy Homes and a rendering of Trevi Isle home community

Kennedy Homes sells Palm Beach Gardens community amid allegations of mismanagement

Kennedy Homes sells Palm Beach Gardens community amid allegations of mismanagement
Biscayne Beach

Lawsuit accuses Biscayne Beach developer and construction firms of shoddy work

Lawsuit accuses Biscayne Beach developer and construction firms of shoddy work
Harvey Hernandez, Centro Condo

Harvey Hernandez sued over delinquent loan for downtown Miami condo project

Harvey Hernandez sued over delinquent loan for downtown Miami condo project
A photo illustration of 620 Arvida Parkway (Credit: Compass, iStock)

Staying on the sunny side: South Florida resi brokers see upside in coronavirus

Staying on the sunny side: South Florida resi brokers see upside in coronavirus
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...