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I Box 43' PAGE 686 MICIIAWL O'11AIIBC Am-roiammy AT L.vsv May 13, 1980 George G. Collins, Jr., Esq. Collins, Brown, Caldwell & Evans 744 Beachland Boulevard Vero Beach, FL 32960 Re: Harbour Island Club/Island East Corporation/ Pebble Bay Sewer System Dear Joe: Following our latest conversation concerning the above, I have spoken further with my clients, as you requested. Preliminary to a statement of the position my clients will take, I think I should outline the situation: (1) As you know,'my clients acquired the riverfront property within the service area of the Pebble Bay system for several hundreds of thousands of dollars in reliance on an existing County commitment. (2) My clients then released the County from a position taken with previous owners to supply sewer collection and treatment service for $15,000.00. (3) Moreover, my clients in dealing with the Planning Commission, agreed to a density of 40 units -for the parcel instead of the maximum permitted in excess of 60, and were commended for the quality of their development plan. I attach excerpts from the minutes of the Commission establishing the history of the matter. This all occurred in the summer of last year. My discussion with my clients is based on your advice to me that the engineering estimate for rework of the system to accommodate my clients and make necessary repairs to the Vera Cruz lift station would total $45,000.00. Of that figure, $9,000.00 represents an amount which would have to be spent regardless of my clients' project, leaving a figure of $36,000. to bring the system to a point where it could accommodate not only the Harbour Island project but some 40 additional living units. In an effort to compromise and settle the matter finally, on the basis of the matters I have outlined, my clients, for their project, will pay, towards the cost of the renovation of the Pebble Bay system, $900.00 per unit (40 units times $900.00 = $36,000.00). You had expressed to me a concern of actual cost exceeding the estimate and, to cover such excess, my clients will agree, again in an effort to be fair, to a maximum contribution of $1,000.00 per unit (provided that it is clearly understood by the contractor and engineers that this is a contingency excess and is not to be used simply because it is there). of my clients' contribution, $5,000.00 will be paid immediately on permitting of the first five units (2 permits have been issued and 3 applications are pending). An addi- tional $10,000.00 will be paid upon issuance of the balance of permits for the first phase, or 8 additional units, which are ready for permit application or nine months from date, which- ever first occurs. If the matter is resolved in this fashion, to avoid further delay, the Commission should instruct the Building Department to issue permits for construction, pro- vided the plans comply with the requirements of the Building Code, at the meeting on the 21st of this month.