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HomeMy WebLinkAboutOIG No. 23-16 Investigation of Certificate of Use and Business Tax Receipt for 1330 15th StreetJoseph M. Centorino, In spector General To: From: Honorable Mayor and Members of the City Commission Joseph M. Centorino, Inspector General Re: Date: Investigation of Complaint and Review of Process Regarding Issuance of Certificate of Use and Business Tax Receipt for 1330 15th Street OIG No. 23-16 August 18, 2023 EXECUTIVE SUMMARY The Miami Beach Office of the Inspector General (OIG) has concluded an investigation and process review arising from a complaint made by Ananthan Thangavel, owner of the property located at 1330 15th Street, Miami Beach, which alleged that (1) City of Miami Beach employees may have engaged in malfeasance and/or negligence with respect to the issuance of a Certificate of Use (CU) /Business Tax Receipt (BTR) for the property; (2) an employee of permit expediter, Permit Doctor, forged the CU/BTR application that was submitted to the City and; (3) a City of Miami Beach Planning and Zoning employee instructed the Miami Beach Police Detective looking into the forgery allegation not to investigate the matter. Allegations two and three were unsubstantiated. The allegation of forgery was reported by Mr. Thangavel to the Miami Beach Police Department (MBPD). After reviewing the information provided, MBPD determined that the matter was civil in nature, and did not proceed with a criminal investigation, a decision with which the OIG agrees based on its investigation. Regarding the allegation that an employee improperly instructed the MBPD Detective assigned to the complaint not to investigate the matter, both the Detective and the employee involved denied any such instruction, and the OIG found no evidence of any such misconduct. The first allegation, the issuance of the CU/BTR to Mr. Thangavel, was thoroughly reviewed by the OIG, which concluded that there was no malfeasance or neglect by City employees; however, it did determine that a series of events occurred that led to Mr. Thangavel's obtaining a CU/BTR for a use of the property for which he did not intend to apply. The OIG found that miscommunication, misunderstanding, and/or a misinterpretation of the various meanings of accommodation establishment terminologies throughout the process by Mr. Thangavel and the Permit Doctor employees, the delay in time caused by the pandemic, and a lack of sufficient quality controls on the part of the City resulted in Mr. Thangavel's obtaining a CU/BTR for "APARTMENT ROOMS" (non-transient) instead of one for "HOTELS (SMOKE DETECTOR)" which was the type of CU/BTR that the previous owner was issued to operate a suite hotel at that location. The OIG reviewed voluminous documentation, including, but not limited to, City records from Planning and Zoning, Finance, Building, Code Compliance, emails, and open-source records and interviews and communications with Mr. Thangavel, City staff, Permit Doctor staff, and the State Page 1 of 23 of Florida Department of Business and Professional Regulations Licensing staff. The investigation and review of the decision to issue Mr. Thangavel the CU/BTR for apartment rooms focused on the CU/BTR application that was changed by an employee of the Permit Doctor from the original application prepared by Mr. Thangavel and submitted to the City by the Permit Doctor employee on behalf of Mr. Thangavel. At all times during Mr. Thangavel's pursuit to obtain a CU/BTR to operate a business in Miami Beach, the operation of short-term rentals has been prohibited in the area of the City in which Mr. Thangavel's property is located. However, the operation of suite hotels (a short-term rental method) which is what the previous owner was licensed to operate, was permitted until an ordinance prohibiting its use became effective on August 25, 2020. The OIG learned that the CU/BTR process that was in place in 2019 during the time of this review has changed, and the current process for customers to apply is predominately completed online through a software system called Citizen Self-Service (CSS) accessed on the City's website. The current process requires that a Certificate of Use be issued prior to applying for a Business Tax receipt which were both requested on a single application. The OIG also learned that the City has engaged consultant Berry Dunn, which is currently conducting a review of the City's regulations and processes relating to development review. They will be evaluating the City's current business practices, which include the CSS, and will be providing recommendations for service improvement. This OIG report presents its observations of the processes that led to miscommunication, misunderstanding, and/or misinterpretation among those involved, as well as some quality control issues within the City that may still exist in the current process and will provide recommendations that may contribute to Berry Dunn's efforts toward service improvements. The report concerns issues that are also the subject of an administrative appeal currently pending before the City of Miami Beach Board of Adjustment. Pursuant to Article I, Section 2 of the Related Special Acts, and Sections 118-9 and 118-397 of the Land Development Regulations, the Board of Adjustment has the exclusive jurisdiction to decide appeals from formal determinations of the Planning Director. On February 22, 2023, the owner of the property at 1330 15th Street appealed the denial of a Business Tax Receipt on the basis that, pursuant to the Land Development Regulations, short­ term rentals are not permitted on the subject property. On May 5, 2023, following argument and testimony from the property owner, Planning Director, and nearby residents, the Board of Adjustment denied the appeal and affirmed the decision of the Planning Director. On June 2, 2023, the Board of Adjustment adopted a motion to reconsider its May 5th decision. Pursuant to that motion, the appeal will be re-noticed for the September 8, 2023, Board of Adjustment meeting. At that time, the Board will take additional testimony, and decide on any further action. The relevant governing authorities referred to in this report are included in Appendix A. Page 2 of 23 OIG Authority Section 2-256 of the Code of Miami Beach codifies that the City of Miami Beach Office of Inspector General is created as an independent body to perform investigations, audits, reviews, and oversight of municipal matters, including city contracts, programs, projects, and expenditures, in order to identify efficiencies and to detect and prevent fraud, waste, mismanagement, misconduct, and abuse of power. The organization and administration of the office must be sufficiently independent to assure that no interference or influence external to the office adversely affects the independence and objectivity of the inspector general. The OIG has the power to require reports from the city manager, city departments, city agencies, boards, and committees, and city officers and employees, regarding any matter within the jurisdiction of the inspector general. The OIG has the power to subpoena witnesses, administer oaths, and require the production of records regarding any matter within the jurisdiction of the office. Background This matter originated from a complaint received by the OIG in April 2023 from the current owner, 1330 15th Street, LLC (Ananthan Thangavel), of the property located at 1330 15th Street, Miami Beach, which included the allegations presented in the summary. In November 2019, Mr. Thangavel purchased the property, which was converted by the previous owner from a four-unit residential apartment to an eight-unit suite hotel. In January 2019 the previous owner submitted an application for a CU/BTR (Exhibit 1) and, in February 2019, was issued a CU/BTR (Exhibit 2) and in May 2019, a Certificate of Occupancy (CO) (Exhibit 3) by the City to operate a suite hotel. The previous owner also applied for and inadvertently received a hotel license from the State of Florida Department of Business and Professional Regulation (DBPR), which will be discussed in detail below. Within six months of obtaining the CO, the previous owner sold the property to Mr. Thangavel. After purchasing the property, Mr. Thangavel engaged a local permit expediting company, Permit Doctor, to assist him in transferring and obtaining the proper license to operate the business in the City of Miami Beach. Between November 2019 and October 2021, Mr. Thangavel personally and/or through the Permit Doctor initiated and navigated the process to obtain a CU /BTR to operate a business at the property. On September 4, 2019, prior to Mr. Thangavel's engagement with the Permit Doctor, the City's Planning Director, Thomas Mooney, responded to a request by Pathman Lewis, LLP, on behalf of Mr. Thangavel, for a zoning verification for the property that is the subject of this review. The property is located at 1330 15th Street, Miami Beach, Florida. In his response, Mr. Mooney stated: Please be advised that the subject property is currently zoned RM-1, Residential - Multi Family, Low Intensity and has a future land use designation of RM-1, Residential -Multi Family, Low Intensity. This district is designed for low intensity, low rise, single and multi-family residences. Page 3 of 23 In accordance with Section 142-152 of the Land Use Regulations of the Code of the City of Miami Beach, the main permitted uses in the RM-1 District include: single-family detached dwelling; townhomes: apartments; and bed and breakfast inn (pursuant to article V, division 7 of this chapter). The subject property is also located within the West Avenue Bay Front Overlay District. I have attached a copy of Chapter 142, Article Ill, Division 5 of the City's Land Development Regulations, which pertain to the West A venue Bay Front Overlay District. The West Avenue Bay Front Overlay District permits the adaptive reuse of existing single-family and multi-family residential structures for suites hotels, in accordance with Section 142-845 of the City's Land Development Regulations (attached). The City's Land Development Regulations defines a suite hotel unit and suite hotel as a room, or group of rooms, each containing separate bathroom and full cooking facilities, with ingress and egress which may or may not be through a common lobby, intended for rental to transients on a day-to-day, week-to-week, or month­ to-month basis, and not intended for use or used as a permanent dwelling. The subject property is not located within a local historic district. However, any proposed development shall require the review and approval of the Design Review Board. Mr. Mooney's letter, written on September 4, 2019, indicates in bold lettering that suite hotels, as defined, were permitted at the location of the property. Although Mr. Mooney's letter does not specifically state it, short-term rentals were not and are not a permitted use at the address where Mr. Thangavel's building is located. The OIG's review revealed no evidence that Mr. Mooney's letter was considered by Mr. Thangavel and/or shared with the Permit Doctor employees during the pursuit of the CU/BTR to operate in the City. Had this letter been considered and utilized to inform them about the permitted uses at the location of Mr. Thangavel's building, the events that followed and ultimately resulted in Mr. Thangavel's obtaining a CU/BTR for which he did not intend to apply could have been avoided. Certificate of Use and Business Tax Receipt Process 2019 In order to operate a business in the City of Miami Beach, a business owner must obtain a Certificate of Use (CU), which allows for the specific use of a building and certifies that the use is in compliance with all applicable city codes, regulations, and ordinances. The owner must also obtain a Business Tax Receipt (BTR), which is the method by which the City grants the privilege of engaging in or managing any business, profession, or occupation within the City. To understand the process that the City used in 2019 to intake, process, and issue a CU and BTR, the OIG met with various Miami Beach staff members, including Thomas Mooney, Planning Director, Ricardo Guzman, Principal Planner, and Sasha Gonzalez, Finance Department Customer Service Manager. Through these meetings, the staff members related that in 2019 the Page 4 of 23 application for a CU and BTR was completed on one form titled "City of Miami Beach Certificate of Use (CU), Annual Fire Inspection Fee & Business Tax Application." The form was submitted to the Finance Department Customer Service Section. The intake of the application would occur with no initial action by the Finance Department. The received application would be uploaded into the City's software application (EnerGov) which is used by the Finance, Planning, Building, and Code Compliance Departments to process and review the CU/BTR submittals. Once the application is uploaded, a BTR number is generated for that process, and the system automatically creates a "plan case" known as a BLPL. The BLPL is routed to the regulatory disciplines, which require review and/or inspections for the approval of the CU part of the process. Once the review and inspections have been completed and have passed for the issuance of a CU, the Finance Department ensures that all documentation required for the BTR is received and reviewed, and then the CU/BTR is issued to the owner. Certificate of Use and Business Tax Receipt 1330 15th Street-Mr. Thangavel Permit Doctor In November 2019, Mr. Thangavel engaged the Permit Doctor, a permit expediting company located at 775 17th Street, Miami Beach, to assist him in transferring and obtaining the proper permits and/or licenses to operate a business in the City of Miami Beach. Between November 2019 and October 2021, Mr. Thangavel, through the Permit Doctor and sometimes personally, initiated and navigated the process to obtain a CU/BTR from the City. Throughout the engagement with the Permit Doctor, Mr. Thangavel interacted with Mr. Damien Gallo Jr., who is the son of the owner of the Permit Doctor, and Ms. Eugenia (Jenny) Suraeva, permit runner. During an interview with the OIG, Mr. Gallo Jr. stated that he met with Mr. Thangavel in person on only one occasion and that all other communications were conducted by telephone or email. Mr. Gallo Jr. related that his services were secured based on a referral from the law firm Pathman Lewis to assist Mr. Thangavel in getting the property at 1332 15th Street licensed for short-term rentals. He recalls that he and Ms. Suraeva submitted applications for a license with the State of Florida and that they started the process with the City of Miami Beach. However, the process was interrupted due to the pandemic, and his communication with Mr. Thangavel ended over a year ago. According to the emails reviewed by the OIG, Mr. Gallo Jr. was involved in the process from December 2019 through October 2021. Mr. Gallo Jr. recalled that he participated in the inspection process for both the state and city at the property. He did not recall specifically which documents he submitted and in which parts of the process he or Ms. Suraeva participated. During the interview, Mr. Gallo Jr. informed the OIG that it was his belief that Mr. Thangavel wished to pursue the licensing of short-term rentals. Mr. Gallo Jr. did not recall having any conversations with Mr. Thangavel about suite hotels, and none of the emails or documents reviewed by the OIG mention suite hotels. Mr. Gallo Jr. advised that he did not recall ever being involved with licensing a suite hotel. He said he was unfamiliar with the term suite hotel and did not know the difference between a suite hotel and a short-term rental. While discussing suite hotels during the interview, Mr. Gallo Jr. stated, "Maybe our terminology, we also call it as a short-term, and that could be an error." He indicated that the Page 5 of 23 process to obtain a CU/BTR was never completed, yet Mr. Thangavel was issued a CU/BTR for apartment rooms on May 19, 2020 (Exhibit 4 ). Mr. Gallo did not recall the details and could not explain how that CU/BTR was ultimately issued. Mr. Gallo Jr. was shown a copy of the CU/BTR application that was completed by Mr. Thangavel, dated November 18, 2019 (Exhibit 5). He does not recall the specific application but acknowledged that he is familiar with the application and would have had to receive it from Mr. Thangavel in order to pursue the licensing. On the first page of the application, the type of application was indicated as "Change of Owner," the application checklist is blank, and the section that asks if the application involves a "Change of Use" was not checked, the type of business was indicated as "Hotel ," and the specific description of the business was blank, as depicted in the image below. The second page of the application was additional information and Mr. Thangavel's signature and date. City of Miami Beach Certifk•te of Uae (CU)1 Annual Fire ln.pecl10f1 Fee 6 Buaittn• Tu Applicildon T1la ul»Ufioll lstifJIY0tll'btnY!ess turrCl'IDt Oor!ClOOHate fHtowneu V1tiltt>eCetflicateofUAN'W/lhtJ &nr,e.LJ r..-~• - A.U IJ.-d The pf,ce OI CUS">ftl ,nc.ur be a..,a/11~ lb a£ .irup~ T'Jpe of Applleatlon Ni!\1111181A.il'CM ~ OrllrgcorVM'CJ _ #lrOOagae~ -~Ota...,,a"°" =~CJlocalD\ Applk.itlon CheckD1t _ FtderallONo. _ fldibous N.1me Regier.,~ _ L,~r,gStt!cmcr1 -~nflnc (W,ripliealifo.J _ 911t~ llo!M.e (fl llPf'IQH,,) _ OJ•l'd~lf'•ere1ttw,ref~tlteJ _Rllt:,I S:,.,_ lwinr,-..1' eo-lheApplicltiQn lnvolvo; _ o,a,igeo, Use _Rtn:i..,~(Prowle Ce-l't~c.1:e cf Ckal;Jan::y P'foct:.s.a Number ~ A 0-¥0t ol tlia tnal OM-etale eddtf,onal OUl'dnl ~ h c'Odt ,..,.tM,nNnl.i cu r,OIJ/ird tn """"QGn_.,di,arn A vM:JCl/lrli6r.ao ol~y-,,eqwedbrlon .,, oc;~boJ-'kcme r:., ba uaitt.J. ■ tl'lit lk!S#'IOS, ono or more or tr)Q raNowlng typc:s: -~Bubrl) _coricom.nun ./11:)tet ResllU"an! 9......, _loeCrunaParklf _ Oeta.tesstn = Ngh'.Qb OlnonglEna.!Ultirren& _ Real Ett.te _ HM Sabn _ Hom! 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The handwriting on the first page of this application is different from the original, the type of application was indicated as "Change of Owner," the application checklist was blank, the section that asks if the application involves a "Change of Use" was not checked, the type of business was not indicated, and the specific description of the business was "Short-term rental ," which is lined through, and "Apt Bldg" is written in below it, in what appears to be yet a different handwriting as depicted in the image below. Page 6 of 23 T/'QQA)~,tq, l$~)'0U"0v,..,ot.slaic:~,ec,t0onotopertJI06'11Ctiu,s;,'les.s"'61thtCet11ic«edt.u•rdftOSc,sine&$f ...Rec~...,__, Th~--~muslbeevaill04!:l'Oell,MptJCto'S. Ty'" otAwlicaUOll; _NewBu:SlneU .c'enangeotOwl"let _ Adcl it't9Seeb _/l,tJ4ticnal0ocupQOn _ CbangeollocotiOn _ i.-.iDteo.Oostig 8111Cm"11 _ CU8f'IOPml.S F118Fec(no:rH 9\\ndable) Reno-.«k,n(PnMdtCattlQQ'8<10a::upancyPnJaD3N1,1r1'1bcr_ .ACNJ"flOolVuffl.t)'gonc.tDtOoddtiottltftA.ildiflganohc:DdllreQUR'"91'1rsi8AJf-•OronewccvacruaQ> A va&d~olOct;,.Jpa,,cyi#reqvt-edo,,,~ itnCICCIJ09«-"9flic'M•~bainu~ HOlal -~!'tlklr8nt Baker/ N,g"""1b Oaoc:bglFncertaomen1 _ Rell Estate _J<IOl1hc&Jb p-_.,_ __Mall O CSet Mobis Caterer _Pf&-PaeA-ag&Fooa Al0cltlcllc 8MJrtQO E _Mo<otSCOocc, ~ent_ . UM 8 USIHH<l r'l9 d th, foHowlng'YPH: _Airt.JftCO'lgr lrvfaohty _ Cay Cara _ N1,1slflgHOnle' ReliglOUs lnstlhnon _School -~ogLot,Gag90 _O.WIQQQIE,-erta•f"lfl'Mlnl _Opan~rE.rtotlUll"fflOnt _Jown;hop _ W;a.rohou1o11 _VdeoO.rneNcade _GM.otne Sales _Rest.aura-rt Aa,1-dc e.nrwae Eat.1th2'nwlt The second page of the application is a duplicate of the original application completed by Mr. Thangavel. Mr. Gallo Jr. stated that he did not complete the document and does not know who did. He acknowledged that one of his employees, possibly permit runner Jenny Suraeva, may have made the change. During a separate interview with Ms. Suraeva, she was shown the same two CU/BTR applications, and she also did not recall the details of everything she did regarding the process for Mr. Thangavel but stated that she did participate in the process to obtain a CU/BTR. She stated that she was the one who changed the first page of Mr. Thangavel's application, combined it with the original second page signed by Mr. Thangavel, and submitted it to the Finance Department of the City on December 27, 2019. She did not recall the specific circumstance in which the change was made but stated that she would not have changed the document without the approval of Mr. Thangavel. She did not recall how she obtained the approval. She stated that the addition of "Apt Bldg" was not her handwriting and did not recall the circumstances in which that was done. Mr. Thangavel denied providing such approval, or adding "Apt Bldg" to the document, or seeing the document at the time it was submitted. Both Mr. Gallo Jr. and Ms. Suraeva stated that all of the documents and email transactions regarding the process with Mr. Thangavel have been deleted or destroyed, as they only maintain the documents for two years. The OIG has been unable to determine who wrote "Apt Bldg" on the application. No one from the City acknowledges making the change, however, the change was made prior to the application being uploaded into the system by the Finance Department. During their respective interviews, Mr. Gallo Jr. and Ms. Suraeva were both shown copies of CU/BTR applications for each of the eight units in Mr. Thangavel's building that he completed and signed and are dated November 18, 2019 (Exhibit 7 Unit 1). On the first page of this application, the type of application was indicated as "Change of Owner," and the application checklist is blank. Page 7 of 23 The section that asks if the application involves a "Change of Use" is not checked. The type of business is indicated as "Hotel," and the specific description of the business is "Short-term Rental," as depicted in the image below. City of Miami Beach Certlncate of Use (CU). Annual Fire Inspection Fee & Business Tax Apptlcatlon Tfvs .,µphcot,on i:, !:iQI'jOUr t,w.Jne.s:r ra• ,o-;:::{pL Do ,,a cp;,rate th r, busJtJUS untrl tt,e Certlhc:nte ol U:Je Md the Busfne.u Tac Rttcaipt e IJ/t! iuucd. The place of bu5,'nes., mu,t be i,,n,Jobkt to Bl inspeaor.s. Type of Apptludon: Nf!w8uSJTW:'-.'I ~ oro.-mo, _ Adding Seats -AdcbttOrtAI Oocupalion =Change of Loe.a on ~~=~~ ~~llsl _ Fictitious N,ime RP.giwnllon LcascJDecdJClosinQ Stalemoot Mldcs of Inc. (ii upplk:able) _ State Lk:ense (if eppbcttb&e) -CU ond AMual Fire Fae (non 1elundablu) -BIil of Sa&c 1nsuranu Does thu Applicatlon Involve: _ Char.ge of Use _ Rcnowtloo (Pro!Jlde CertJ6cate of OOCOoancy Process Nurnbet __J A Chang:, ol v,o may generate acldirlOMI buitlf.r,g end r11e C::000 1equfrements o.s applied to IJC\Y c0t1s.'rudJ01t A 'laHd certiflc:at.e ot OCC1.1pa11cy ,s requ;rea 00/'ore sn occvpa1Jonol Uccmc can ba /s:;UJd. ls tho Business ono o, more or Ute following typ~ _ Apartment Ek.id ng CondomirUn JHo1d _ RCGtaurunl _ ~<Jry _ O.Jndngl'En\ert;t,nment Reill! EWlte loo Cream Pa,lor Oelicateuen = r,,.igNdub Healtt\dtb Prornoter V111le1 Eacort ScNlce _ Janitorial Sorvtce t.lall O'der Htrlr Soion Home Based Business _ Pfe-?acka.oe Food _ MotOI' Scuotcr Mubile Cctl~ _ Ak.ohotlc 8evcmgo E:.tnbl'.isl-.mcnt ===Ol=~on = ~~~Gil~bu.o, Is lhO Business one ol the foDowlng types _Ad'-'ICongrliv Faolity _Daycare _NtningHome _ Religouslnstilution _School _ Paildng Lot I Gif,1ge Outdoor En1crtak'lrncff _ Open Nr Ent..-tainnicnl _ Pav.1'\shop _ Y..'B1ehome ¼'8oGameAsade G11sOIH'lc S2.k!~ _Rc:.li:ll.Mi1111 _ Alcohok8CVl::fa9eEs:;,bll!\hment 1 ~Jocallo1 Dete· II I /,J,~Bus'™ Nome 1) JJ \ <; " >tf<e ( 1 L-L-C. L.-.n I ~.lo IS: '" S-> 1 M;,M; g,..... , Ft... ~J\Sj Ut>,-1-/_ Lease_ o.vn_:L_ H°'11s of Opc,11tiun __T)'PO Of Bu.,ine,_, (be Vtl'f Gf)cdflcl/:i'.\od 1-e.,~./=q)~---- Hours Sefvlng Ak:OhOI,_ ___ The second page of the application contains additional information and Mr. Thangavel's signature and date. Each of the applications indicates a unit number one through eight. Both Mr. Gallo Jr. and Ms. Suraeva recognized the applications but did not recall when they were received or what happened with them. They related that the City's process required separate CU/BTRs for each unit to be used for a short-term rental; however, these applications were never submitted to the City. During his interview, Mr. Gallo Jr. was shown eight copies of applications for Certificates of Use (CU) that were submitted electronically through the City's Citizen Self-Service (CSS)1portal on September 24, 2021. The applications were for Mr. Thangavel's eight-unit property. The applicant was Damian Gallo, and the business description was "Short-term rental". Mr. Gallo Jr. again recognized and acknowledged that he submitted the applications but did not recall the specifics. After being shown a series of emails in which he and Mr. Thangavel were discussing the process and that it had not been completed, he recalls moving forward with these particular applications. However, by that time, Mr. Thangavel had already been issued a CU/BTR from the City for "apartment rooms" on May 19, 2020, based on the CU/BTR application that was submitted by Ms. Sureava on December 27, 2019, which was renewed by Mr. Thangavel effective December 20, 2020. 1 The City's process for applying for Certificates of Use and Business Tax Receipts was bifurcated and the application process began to be executed through an online system on the City's website called "Citizen Self-Service." Page 8 of 23 1 On October 7, 2021, all of the electronically submitted CU applications for short-term rentals that were submitted by Mr. Gallo Jr. were denied because short-term rentals were not then and are not now permitted at the location of Mr. Thangavel's building. One of the documents uploaded with the electronic application submitted by Damien Gallo Jr. was a copy of a letter dated June 15, 2020, signed by Mr. Thangavel that stated the following: I, owner of 1330 15th Street, LLC would like to apply and operate short term vacation rentals in each of the units on property. The unit numbers are as follows; 1, 2, 3, 4, 5, 6, 7, 8. Should you have any questions please don't hesitate to contact me directly. Short-term rentals have not been authorized in the location of Mr. Thangavel's building since 2010. Had the City been in possession of such a letter when the application that was relied upon to issue the CU/BTR to Mr. Thangavel was received in 2019, he might have been informed by the City that short-term rentals were not permitted, and cou ld then have inquired and proceeded with obtaining a license to operate a suite hotel which was still permitted at the time. At no time during the process to obtain his CU/BTR did Mr. Thangavel or any Permit Doctor employee obtain or review a copy of the CU/BTR application that was submitted by the previous owner that resulted in a CU/BTR for "HOTELS (SMOKE DETECTOR)" being issued for the operation of a suite hotel. That application indicates that it is for a "Hotel," and the specific use is identified as "SUITE HOTEL," as depicted in the image below. Typo of Appl'.ca:l,:n: ~.Y3U.SlllHI ~~• dLA2-ta1 Jca!!on Checldi.t F'oderu t 10 , l. ~ A'1lces cl Inc. f~ appoa!Jle ~&lc:fW• _ _ _ ;:-~i;:..T.! ~irn:i>n S<JIJ Ucor4a QI •wbbltJ 11\1,.ra;--C.C -~'C;o no Sl:i.!emel'U _ CU am "'7ulA !'"n Foe (r01 re'.r<lible) DOU I/IO Ap~lic,!!Oft lnvOl',e: -Cll""!,11 Of L'S<! -Rsnova:kln ()'1""1:lo ce,uoara of Cca;ponc-/ ?r=u r,i,.m,er___J A Chong, cl l.l~ r.ay ge11MJe fda',IJMJ lltfdhJ rd!/9 ced, ~ttr....tnl/U J.: •ppl)Jd to new c.on..v~,. A v>f,d C,,rlil'at• d Occ,po,-.<y IJ req,.,:r!d ~ion, an oa::.,plllcnel re.rue ...,, o, Ull.'011 1 tho SuslnMS or.o or moro of the tottowt.ng lYJ)OI: __.... !!lildr') _Coodcffll:,fir., ~ _ lco Cto•m Pl.tr _-.,, _ N"""""' Hair SOion Holno8838deu!incs, Ho.1.'lncll.C E,= SIM>! _ Jaorltof1al S.elfco 1W O:rle< _ Rota'l Altohc! S;J:e, _ Trm (s-l Llo!liloo ea,,..,- -94!1d'l Frct'L Conce-ssla, _ tl.ad"tie Db~ Appr.CO'Jon :>.to: d/?ilr u...._ o,,,,.X Hour, o(O~-- Page 9 of 23 State of Florida License Florida Statute 509.241 (2) requires that each person who plans to open a public lodging establishment or a public food service establishment a pply for and receive a license from the Department of Business and Professional Regulation (DBPR) Division of Hotels and Restaurants prior to the commencement of operation. The previous owner submitted an application for a hotel license with DBPR and was issued hotel license number HOT2329406 on November 29, 2018. That license was submitted to and considered by the City when it issued the CU/BTR to the previous owner for "HOTELS." Mr. Gallo Jr. submitted an application that Mr. Thangavel signed and dated November 18, 2019, to DBPR for a hotel license. The application indicated that it was for a "Hotel" and that it was for a "Change of Ownership." The previous owner's license number and information were provided on the application. On December 17, 2019, a DBPR inspector sent the following email to the Deputy District Manager of the DBPR's Miami Office: As per our conversation, could you please re-profile this account to a TAPT, this is a 8 units building, 1 mop sink, no office, no Public bathroom, and it will (sic) used as a Short (sic) Rental Apts. The Deputy District Manager then sent the following email to the licensing team: Please re-profile this account from a Hotel to a transient apartment. There are no signs advertising establishment as a hotel and no front desk for guest to check in. The establishment was licensed as a hotel under previous owner, but is actually an eight unit transient apartment. Inspector spoke with new owner and he is o.k. with license being reclassified correctly. Mr. Thangavel was issued "TRANSIENT APARTMENT" license number TAP2330379 by DBPR on December 18, 2019, and has renewed the license each year. The current license expires on October 1, 2023. Florida Statute 509.242 (1) (a) classifies a "Hotel" as follows: any public lodging establishment containing sleeping room accommodations for 25 or more guests and providing the services generally provided by a hotel and recognized as a hotel in the community in which it is situated or by the industry. Florida Statute 509.242 (1) (e) classifies a "Transient apartment" as follows: a building or complex of buildings in which more than 25 percent of the units are advertised or held out to the public as available for transient occupancy, 'Transient Occupancy" is defined in Florida Statute 509.013 (4)(a)(1) as follows: any unit, group of units, dwelling, building, or group of buildings within a single complex of buildings which is rented to guests more than three times in a calendar year for periods of less than 30 days or 1 calendar month, whichever is less, or which is advertised or held out to the public as a place regularly rented to guests. Page 10 of 23 The previous owner was improperly issued a hotel license by the State of Florida, which was considered by the City when it issued the CU/BTR for "HOTELS." The "TRANSIENT APARTMENT" license that Mr. Thangavel was issued and currently holds allows for transient rental, however, he was issued a CU/BTR for residential apartments, non-transient use. Application Intake The application that was submitted to the City was the application that was altered from the original by Permit Doctor employee Ms. Suraeva. The application was further altered by an unknown person. A review of the information regarding the intake of the application provided by Finance Customer Service Manager Sasha Gonzalez and of information available in the City's EnerGov system revealed that the application workflow process was started, a BTR completeness check was completed, and the application with attachments was scanned into the system on December 27, 2019. The attachments to the application included copies of a warranty deed, corporate filing, federal tax identification information, and a State of Florida license issued on December 18, 2019, by the Florida Department of Business and Professional Regulation (DBPR) Division of Hotels and Restaurants for a "TRANSIENT APARTMENT." Also uploaded on the same date was a copy of the previous CU/BTR, which was issued to the previous owner on September 27, 2019, and expired on September 30, 2020 . The previous CU/BTR was for the specific use of "HOTELS (SMOKE DETECTOR)." There is no mention of a suite hotel in the document. The application was accepted and uploaded into the system, although it had been altered; pages one and two had different handwriting, and the page one form version was" FORM OCC-1 Rev. 09/13/16, while page two was "FORM OCC-1 Rev. 10/12/04. Sasha Gonzalez, Finance Department Customer Service Manager, informed the OIG that the alteration of the specific type of business from "short term" rental to "Apt Bldg" on the submitted application would not have been made by anyone in the Finance Department as it is the Planning Department that determines the use. The application with the alteration in question was uploaded into the system by the Finance Department. The Chief Financial Officer informed the OIG as follows: the initial intake of an application is processed by one employee, and the final issuance of the BTR is not released until a supervisor has reviewed the application for thoroughness. A review of the EnerGov system demonstrates that this particular BTR application was processed by a Financial Analyst I and subsequently reviewed by a Financial Analyst II, and ultimately reviewed by a Financial Analyst Ill before being issued. The altered application, as described above, was initially accepted and made its way through two additional reviews within the Finance Department without being questioned. Finance Review The application that the Finance Department received was a single application for both a Certificate of Use and a Business Tax Receipt. The application was reviewed at intake for its thoroughness. It was then uploaded into the EnerGov system by a Finance staff member, and the system generated a BTR number, BTR008501-12-2019, and a BLPL case number, BLPL2019- 08005. This began the process for the Planning, Code Enforcement, Building, and Fire Page 11 of 23 Departments to conduct their reviews and/or inspections in order for the CU/BTR to be issued. The Finance Department would ultimately review the application again at the end of the process for the issuance of the BTR. Planning Review Although each of the above reviews and inspections is important, the foremost review is for the Certificate of Use (CU), which the Planning Department conducts. It is here that the specific use for a specific location is reviewed and determined, and where the Planning Department certifies that the use is in compliance with all applicable city codes, regulations, and ordinances. The Business Tax Receipt (BTR), which is the license to do business in Miami Beach, is issued based on the CU and the State license (if applicable). In this instance, the information contained in the EnerGov system history shows that the planning review was conducted on December 30, 2019, and was completed on the same day. There are no internal notes or evidence of communication with Mr. Thangavel or anyone from the Permit Doctor. The only contact information listed is for Mr. Thangavel. There is one file attached which is the previous BTR that lists the use as "HOTELS." The records relating to BTR008501 for Mr. Thangavel's application were available to review through the "Linked Records" icon. The attachments that were available for review included the application with attachments and the previous BTR. The only comments regarding this review appear in the "History" section. The comment reads, "Residential Apartment Building - 8 units." There is no explanation of how that determination was made, however, the only place the word apartment appears is on the modified application as "Apt Bldg" and the license issued by the State which states, "TRANSIENT APARTMENT." The individual who conducted the review is no longer with the City. An email sent to an attorney representing Mr. Thangavel on June 22, 2022, by Ricardo Guzman, Principal Planner for the City, in the summary of events, states as follows: "On December 30, 2019: BLPL2019-08005 was approved for 8 residential apartment units (non-transient). This is the precursor for the new CU and BTR. (no supporting documentation provided or requested by the City to support the change of use). " Mr. Guzman does not have independent knowledge of the details of how this planning review was conducted. The application itself indicates that it is for a "Change of Ownership." The section that states, "Does this Application involve: _ Change of Use" is not checked to indicate that it is not a change of use but simply a change of ownership. In fact, none of the applications that were completed by either Mr. Thangavel or Ms. Suraeva, whether they were submitted or not, indicate that the application is for a change of use. The previous BTR identifies the use as "HOTELS." There was no documentation requested or provided supporting the change of use and no evidence that a clarification was sought by anyone in the Planning Department prior to changing the use to "APARTMENT ROOMS." Page 12 of 23 Building Review The information contained in the EnerGov system history shows that the building review was conducted on December 30, 2019, and was completed on the same day. There are no internal notes. There is one file attached which is the previous BTR that lists the use as "HOTELS." The records relating to BTR008501 for Mr. Thangavel's application were available to review through the "Linked Records" icon. The attachments that were available for review included the application with attachments and the previous BTR. The only comments regarding this review appear in the "History" section. The comment reads, "OK per CO19-1320" which refers to the Certificate of Occupancy that was issued to the previous owner on May 14, 2019, which states in the certificate description and specific conditions section the following: CO -BC1806547 -Units 101-103, 201-204/ interior remodeling of existing building. units 101-103 and 201-204 conversion to suite hotel. Existing 4 units to new 8 units. The reviewer, Senior Building Inspector Gabi Chamoun, was interviewed by the OIG and informed the OIG that there was no need to change the Certificate of Occupancy (CO) as the requirements for a suite hotel or hotel occupancy are stricter than the requirements for apartment occupancy. Under the existing CO, the owner in the future could apply to change the use from apartment to hotel if it is authorized. Fire Inspection The information contained in the EnerGov system history shows that the initial fire inspection of Mr. Thangavel's building was conducted on December 31, 2019. The inspection failed and the building was reinspected on January 7, 2020, and failed again. On April 10, 2020, the building was reinspected and passed. As part of the process, Mr. Thangavel was required to submit to the Miami Beach Fire Prevention Division a completed Annual Single Station Smoke Detectors Inspection/Test Report. That report was completed and dated April 2, 2020. In the section of the form, "TYPE OF OCCUPANCY (SPECIFIC USE)", it states, "Short-term rental" (Exhibit 8). CUIBTR Issuance The final step in the process ends where it began--with the Finance Department--for the issuance of the CU/BTR. The information contained in the EnerGov system history shows that this took place on May 19, 2020. An email was uploaded in the system that was sent to Mr. Thangavel on May 19, 2020, from an employee who is no longer with the City, which informed Mr. Thangavel that the only thing left to complete for the issuance of the BTR was payment and the resort tax application. The system shows that all required fees were paid, and the attachments included the email message referenced above and the completed smoke detector form (Exhibit 8) referenced above. It also included a copy of the issued CU/BTR license number BTR008501-12- 2019 issued to 1330 15th Street LLC on May 19, 2020, for code 95000900 "APARTMENT ROOMS" and code 95700000 "Apartment buildings (rental), not including kitchens and bathrooms" (Exhibit 4 ). The process began on December 27, 2019, and the CU/BTR was issued on May 19, 2020. As previously referenced, the BTR process was ultimately reviewed by a Financial Analyst Ill, who also did not question the aforementioned issues with the application. Some of the delay in the process was due to the pandemic. However, the major delay was due to failed fire inspections that were resolved and passed in April 2020. Page 13 of 23 The codes that appear on the BTR are occupational codes from the schedule of taxes found in City Code Section 102-379. The codes relate to a business tax category and the amount of tax. The resort tax application that Mr. Thangavel completed and submitted by email to the Finance Department on May 19, 2020, has "HOTEUMOTEL" marked as the type of business. However, on the resort tax business account established for 1330 15th Street, the State license type is listed as "Apartment" when in fact, the license issued by DBPR is "TRANSIENT APARTMENT." The business type is listed as "APARTMENT" despite Mr. Thangavel's application identifying the kind of business as "HOTEUMOTEL." There is no explanation why the business type was listed as "Apartment" even though the application that was received listed it as "HOTEL/MOTEL" or evidence of communication with Mr. Thangavel or the Permit Doctor employees to clarify the discrepancies. The summary of events by Mr. Guzman previously referenced in this report states as follows: Also, on May 19, 2020: A new Resort Tax (RTX) account was setup by the Finance Department. Both the BTR and RTX accounts were created based on the Florida State License (#TAP2330379), which is for an Apartment building. The State of Florida issues transient apartment licenses and non-transient apartment licenses. The difference is the minimum period of time the apartment is rented to guests. Transient apartments are rented more than three times in a calendar year for periods less than 30 days or 1 calendar month, whichever is less. Non-transient apartments are rented for periods of at least 30 days or 1 calendar month, whichever is less. Listing the State license type on the resort tax account as "Apartment" does not capture the actual type of license that the State issued to Mr. Thangavel. Current Certificate of Use and Business Tax Receipt Process The method that was used to process and review Mr. Thangavel's combined Certificate of Use (CU) and Business Tax Receipt (BTR) application was changed between June and August 2020. The City moved to a predominately online application process which is accessed from the City's website, called Citizen Self Service (CSS). The City continues to use the existing EnerGov system for the review process. The application for a CU and BTR is no longer a single application. The CU and BTR application processes are independent of each other. As noted above, the first step in obtaining a license to do business is to obtain a Certificate of Use. The issuance of a CU is under the authority of the Planning and Zoning Department. The CU designation provides confirmation that the intended use at a specified location is consistent with the City's Land Development Regulations. The City's Information Technology Department provided the OIG assistance in replicating the current application and review process for a CU and BTR. The application for a CU in the CSS portal is a six-step process that includes (1) Locations, (2) Type, (3) Contacts, (4) More Info, (5) Attachments, and (6) Review and Submittal. Throughout the process, there are required fields that, if not completed, will not allow the applicant to move to the next step. There are only two places in the process that allow the applicant to provide information about the specific use of the business; the first is step two, which has a free text box that says "Description." This text box is not (emphasis added) required, which means if one does not complete it, the applicant can move to the next step. The second is step four which allows the applicant to select a type of business from a mandatory checkbox list of eighteen types of businesses, and the last check box is "None of the above." If the "none of the above box" is checked, it does not provide Page 14 of 23 a free text box or any other information regarding other specific types of businesses. There is no check box for lodging establishments. This step also includes instructive information about Certificates of Use, Business Tax Receipts, and Conditional Uses. Step five is for attachments, and it only requires a floor plan to be attached. Other documents may be attached but are not required. The final step is where the applicant reviews the inputted information and submits it for review. Once the application is submitted, a CU number is created, and the screen shows in green that states the following: Your license application was submitted successfully, No fees are due at this time; we will review your application, and we will be in touch with you shortly. The review process for the CU includes a Planning Department zoning approval and a Fire inspection for each application. Once the Fire inspection approval is entered into the system, the CU is automatically issued. The review of the process with the IT department showed a drop­ down list of available uses for the reviewer to select from, and there is a free-form text box for notes. Ricardo Guzman of the Planning Department also provided the OIG with the list of specific uses. It consists of a comprehensive list in alphabetical order, which includes multiple lodging uses, including hotel, hostel, micro apartment units, transient non-residential, transient residential (short-term rental), and bed and breakfast inn. Mr. Guzman advised the OIG that the selected use, along with the notes, would appear on the issued Certificate of Use; for example, for a suite hotel, the approved use would be "Hotel," and the note would identify "Suite Hotel." However, such a list is unavailable for the applicant to choose from when applying for the CU. A Certificate of Use is required to obtain a Business Tax Receipt, which is the license to operate a business in the City. The BTR occupation code and business tax category are based on the CU designation and the State license (if applicable). Therefore, it is of the utmost importance that the party seeking to obtain a CU has access to a process that provides all the information needed to apply for the specific use (emphasis added) that is being sought. The application for a BTR in the CSS portal uses the same six-step process as the CU. It also has required fields to be completed. In step two, "Type," there is a free text box for the business description, which is not required, and a free text box for the BTR description, which is not required. However, there is a link, "Select Industry Classification," that takes the applicant to a comprehensive list of categories which includes "Accommodation & Food Services" along with other broad industry categories. Once a category is selected, it opens a subcategory list that replicates the occupational codes and business tax categories in the City Code. Step four, "More Info," requires the Certificate of Use number to be entered. The only attachment that is required is an executed lease or recorded warranty deed. Other attachments may be added. Once the application is submitted, a BTR number is created, and the screen shows in green stating the following: Your license application was submitted successfully, No fees are due at this time; we will review your application, and we will be in touch with you shortly. The review process for the BTR follows the same process through the EnerGov system. The disciplines that are assigned for the review are dependent on the type of BTR that is going to be issued. Page 15 of 23 Responses to the Draft Report and OIG Comment In accordance with Section 2-256 (h) of the Code of Miami Beach, draft copies of this report were provided to the affected individuals and entities covered in the report, including the City Manager, City Attorney, Planning, Finance, and Building Directors, Chief of Police, Permit Doctor (permit expediter), and the Complainant, Ananthan Thangavel for their discretionary written responses. The OIG received responses from Mr. Thangavel, the City Planning Director, and the Chief Financial Officer. These responses are incorporated herein as Appendices B, C, and D, respectively. The OIG appreciates receiving these responses. Response ofAnanthan Thangavel, Complainant Mr. Thangavel's responses are included in Appendix B of this report. Mr. Thangavel asserts that the OIG obfuscated the clear fact that it was a City employee who, without his authorization, altered the application by crossing out "short term rental" and inserting "Apt Bldg" on the CU/BTR application in question. Mr. Thangavel states that this information was told to him during a recorded video call with the OIG on May 10, 2023. The OIG acknowledges that initially, during the video call, the OIG investigator did state that an employee of the City made that change. However, the OIG investigator later revised that comment when Mr. Thangavel sought a clarification: Just to clarify, so the document that the Planning Director based his entire explanation on in his staff report saying it was my evidence of intent to abandon the use of my property, that document was altered by a City employee? The OIG investigator responded: "I don't have 100% proof of that right now, because I don 't know who did that. " At the time of the video call with Mr. Thangavel, the OIG had not spoken to anyone in the Finance Department about the application in question. On May 16, 2023, the OIG spoke with the Finance Department's Customer Service Manager, Sasha Gonzalez. During that conversation, Ms. Gonzalez was asked if someone from the Finance Department made the change to "Apt Bldg." She informed the OIG that no one would modify an application that is received. She explained to the OIG that they receive the application, collect the fee, and forward it through review and approval. Consequently, the OIG has been unable to determine who made the change in question. Mr. Thangavel has denied ever giving authorization to anyone to modify his original application, the Permit Doctor employees deny making the change, and all City employees questioned have similarly denied making the change. What is known is that the first page of the original application was completely redone by Ms. Suraeva and that the application with the change in question was uploaded into the system by a Finance Department staff member on December 27, 2019. In his response, Mr. Thangavel also expressed his view that the alteration of a signed document by a City employee "without express, written consent is the very definition of "malfeasance or neglect." However, as stated above, the OIG does not have sufficient evidence to determine who made the change in question. Response of Thomas Mooney, Planning Director Mr. Mooney's response is included in Appendix C of this report. His response provides information to supplement and/or clarify issues raised in the draft report as it pertains to the 2019 CU/BTR process and Mr. Thangavel. The response does not address the issues raised with the current Page 16 of 23 process that is being used to apply for Certificates of Use and Business Tax Receipts. The issues that were raised by Mr. Mooney in his response have been addressed in the relevant sections of the report. With respect to the Planning Department's review of the submitted CU/BTR application, Mr. Mooney's response stated as follows: It is important to point out that the application submitted by the property owner, and uploaded to the system, was for an apartment building. City staff relies on the accuracy of each applicant's submissions. The OIG appreciates that City staff rely on the accuracy of each applicant's submission. However, it is the reason for the lack of accuracy that concerns the OIG. In this instance, the application was not submitted to the Finance Department by the property owner but by Ms. Jenny Suraeva, an employee of the Permit Doctor (permit expediter) on behalf of the property owner, Mr. Thangavel. Mr. Thangavel completed the first and second page of the application but did not indicate anywhere on the document the specific type of business use for which he was applying. In her interview with the OIG, Ms. Suraeva admitted to completing a new first page of the application that differed from the original completed by Mr. Thangavel. On the new page that Ms. Suraeva completed, she wrote, "short term rental" as the specific type of business. There were no changes made to the second page of the application. The application was then further modified, which, arguably, could be the most important consideration in determining the designated use. The modified document showed that "short term rental" had been crossed out and changed to "Apt Bldg" in what appears to be different handwriting. Ms. Suraeva stated that she did not make the change, and Sasha Gonzalez, Finance Department Customer Service Manager, informed the OIG that the change would not have been made by anyone in the Finance Department as it is the Planning Department that determines the use. Mr. Thangavel has stated that he never authorized anyone to make any modifications to his original application. So, the modified application with different handwriting than the original second page and the specific type of business changed from "short term rental" to "Apt Bldg" in different handwriting was accepted, without question, and uploaded by the Finance Department to be reviewed and relied upon for the issuance of a Certificate of Use and a Business Tax Receipt. The normal course of business for modifications to a document would, at a minimum, require that the person who modified the document initial or sign and date the change or that a new application be completed. Neither of these was done, which has resulted in confusion over who was responsible for the change with possible legal consequences. Regarding the planning review, Mr. Mooney's response stated the following: The subject property is zoned RM-1 (Residential, Multi-Family Low Intensity) and this zoning district expressly permits apartment buildings as a permitted use. Since this is a permitted use, and the previously issued permit for suite hotel confirmed that the building met the minimum unit size requirements for an apartment unit, there was no reason for a Planning reviewer to inquire further. In short, if a proposed use is permitted within a zoning district, the Planning reviewer does not initiate an inquiry as to why the property owner desires to license a permitted use. Page 17 of 23 The OIG would agree that in the cases in which the application was complete and with no strike­ throughs or modifications, no further inquiry would be necessary. However, in this instance, the reviewer had an application in which the specific type of business, "short term rental" had been struck through, and "Apt Bldg" had been written in what appears to be different handwriting. As noted above, there were no initials, signature, or date for the change. Moreover, the previous CU/BTR, to which the reviewer had access, was for a suite hotel which is a form of short-term rental. This fact warranted further inquiry prior to an official determination on the permitted use. Although short-term rentals were not permitted within the zoning district, Mr. Mooney stated the following in his response: It is important to note that had the CU/BTR application for the short-term rental of the units in the building been submitted as part of the application approved on May 19, 2020, that CUIBTR application would have been denied by Planning and the applicant, at that point, could have potentially modified the application to a suite hotel, which was a permitted use until August of 2020. Mr. Mooney's response makes note that although short-term rentals are not defined in Section 114-1 {the definitions section of the Land Development Regulations (LDRs) of the City Code of Miami Beach), they are defined under Section 142-1111 of the LDRs. The definitions section, however, is the first section of the LDRs and is the logical section for the term to be defined. Indeed, it is Section 114-1 where the definitions of suite hotels, apartment hotels, hostels, and hotels are located. Moreover, Section 142-1105 details the regulations related to suite hotels, apartment hotels, hostels, and hotels, referencing the definitions found in Section 114-1, but is silent regarding short term rentals. Response of Jason Greene, Chief Financial Officer Mr. Greene's response is included in Appendix D of this report. Mr. Greene concurs with the OIG that there was no malfeasance or neglect by City employees. He asserts that any miscommunication, misunderstanding, or misinterpretation was between Mr. Thangavel and his permit runner, the Permit Doctor and that Mr. Thangavel relied on the Permit Doctor to handle his local Business Tax Receipt application. In his response, Mr. Greene stated the following: The applicant and their permit runner, submitted a Local Business Tax Receipt application with a different type business category than the previous owner. The applicant and their permit runner, also submitted an application with a different type of State license than the previous owner of the property. The applicant was given the Local Business Tax Receipt they applied for. This statement by Mr. Greene is accurate; however, in 2019, when the application was submitted, it was an application for a Certificate of Use (CU) as well as an application for a Business Tax Receipt {BTR). The Finance Department was the starting point for an applicant to obtain both a CU and a BTR in a single application. In this instance, the Finance Department accepted a two­ page application in which the handwriting on the first page was different from the second page, and the specific type of business, "short term rental," was struck through and replaced with "Apt Bldg." That modification to an official application was not initialed, signed, or dated. Nevertheless, the application was accepted without question by the Finance Department and uploaded to be relied upon by the Planning Department for the determination of its permitted use. It was this altered application along with the State of Florida-issued license that the Finance Department relied upon to issue the BTR. Page 18 of 23 As detailed in this report, the OIG identified that the State of Florida mistakenly issued the previous owner a license for a hotel. As included in Appendix A of this report, Florida Statues Section 509.242 provides the following definition of a hotel: any public lodging establishment containing sleeping room accommodations for 25 or more guests and providing the services generally provided by a hotel and recognized as a hotel in the community in which it is situated or by the industry. The business located at 1330 15th Street does not meet this definition. The appropriate State license should have been for a non-transient apartment which is defined as, "a building or complex of buildings in which 75 percent or more of the units are available for rent to non-transient tenants." Mr. Thangavel was appropriately issued a non-transient apartment license by the State of Florida, which based on the State definition, would allow him to operate a suite hotel or short-term rentals in the City of Miami Beach. Mr. Greene's response, regarding quality control and supervisory review, points out the following: the initial intake of an application is processed by one employee, and the final issuance of the BTR is not released until a supervisor has reviewed the application for thoroughness. A review of the EnerGov system demonstrates that this particular BTR application was processed by a Financial Analyst I and subsequently reviewed by a Financial Analyst II, and ultimately reviewed by a Financial Analyst Ill before being issued. The OIG has addressed this observation within the sections of the report that address the Finance Department. Conclusion and Recommendations The Miami Beach Office of the Inspector General (OIG) has concluded its investigation and process review into allegations that (1) City of Miami Beach employees may have engaged in malfeasance or negligence with respect to the issuance of a Certificate of Use (CU) /Business Tax Receipt (BTR) for the property located at 1330 15th Street, Miami Beach and owned by 1330 15th Street, LLC (Ananthan Thangavel); (2) an employee of permit expediter, Permit Doctor, forged the CU/BTR application that was submitted to the City and; (3) a City of Miami Beach Planning and Zoning employee instructed the Miami Beach Police Detective looking into the forgery allegation not to investigate the matter. Allegations two and three were unsubstantiated. The allegation of forgery was reported to the Miami Beach Police Department (MBPD) by Mr. Thangavel. MBPD determined that the matter was civil in nature, and did not proceed with a criminal investigation, a decision with which the OIG agrees based on this review. Regarding the allegation that the MBPD Detective assigned to the complaint was improperly instructed by a City staff member not to investigate the matter, both the Detective and the City employee involved denied that any such instruction occurred, and the OIG found no evidence in this review of any such misconduct. While the OIG's investigation of Allegation (1) concluded that there was no evidence of malfeasance or negligence on the part of City employees with respect to the issuance of the CU/BTR, it did find some aspects of the City's procedures to be problematic, which led to a Page 19 of 23 thorough review of the process. In conducting this review, the OIG appreciates the cooperation and assistance of the Planning, Finance, Building, and Information Technology Department staff and specifically, Thomas Mooney, Ricardo Guzman, Sasha Gonzalez, Gabi Chamoun, Ozzy Macias, and Wingrove Duverney. During the review, the OIG found that miscommunication, misunderstanding, and/or a misinterpretation of the various meanings of accommodation establishment terminologies throughout the process by Mr. Thangavel and the Permit Doctor employees, the delay in time caused by the pandemic, and insufficient quality controls on the part of the City resulted in Mr. Thangavel's being issued a CU/BTR for "APARTMENT ROOMS" (non-transient) (Exhibit 4) instead of "HOTELS (SMOKE DETECTOR)" (Exhibit 2), the Certificate of Use designation that allowed the previous owner to operate as a Suite Hotel. The OIG found that early in the process, in September 2019, Mr. Thangavel's attorney was provided a zoning determination letter from Planning Director Thomas Mooney that advised them that "suite hotels" were an authorized use in the location of Mr. Thangavel's building. It did not specifically state that "short-term rentals" were prohibited in the area. Although suite hotels are a type of short-term vacation rental, they are considered different from short-term rentals in the City Code. Suite Hotels are defined in the definitions section of the Land Development Regulations of the City Code. However, "Short-term rentals" are not. Throughout his pursuit of a license to operate the business that he purchased as a suite hotel, neither Mr. Thangavel, nor his hired expediter, ever used the term "suite hotel" in their effort to obtain a business license. The OIG found that it was Permit Doctor employee Damien Gallo Jr's understanding that Mr. Thangavel wished to pursue a license for short-term rentals. Mr. Gallo Jr. and Ms. Suraeva were unaware of the differences between a suite hotel and a short-term rental. In fact, Mr. Gallo Jr. stated that he used it interchangeably and acknowledged that it might have been an error to do so . Mr. Gallo Jr. and Ms. Suraeva informed the OIG that they did not recall ever assisting in the licensing of a suite hotel. It wasn't until the individual short-term rental applications for each of Mr. Thangavel's units were submitted electronically on September 24, 2021, by Mr. Gallo Jr. and denied by the City that they realized that short-term rentals were not authorized at the building's location. By that time, suite hotels were also not authorized. The OIG found that the City Finance Department accepted and uploaded an application that had been altered into the EnerGov system that would be relied upon for the issuance of the CU/BTR. The writing on the first page was different from the writing on the second page. "Short-term rental" had been lined through, and "APT Bldg" had been added in what appears to be different handwriting, and the form version of page one was different from the form version of page two. Although the Finance Department had two supervisory reviews of the application and associated documents throughout the process, there is no evidence that the validity of the application was ever questioned. The OIG found that, during the planning review for the Certificate of Use, the application that was submitted in December 2019 (Exhibit 6), as well as the application that was originally completed by Mr. Thangavel and not submitted (Exhibit 5), was for a "Change of Owner." Neither application indicated a "Change of Use." The previous use was for "HOTELS." The Planning Department reviewer had access to the previous BTR and the application, and Mr. Guzman stated in the previously cited email that there were no documents requested or provided to support the change of use, yet the Planning Department approved a change of use from "HOTELS" to "APARTMENT ROOMS" without any communication with Mr. Thangavel or Permit Doctor employees questioning the change of use. The application itself states the following: Page 20 of 23 A Change of Use may generate additional building and fire code requirements as applied to new construction. There is no evidence, no internal notes, or any other documentation indicating that additional building and fire code requirements were or were not needed for the change of use. The OIG found that the multiple forms required by the City indicated different types of use. The CU/BTR application that was submitted had short-term rental lined through and "Apt Bldg" written below it (Exhibit 6). The required smoke detectors inspection/test report form indicates the type of occupancy as "Short-term rental" (Exhibit 8), and the resort tax registration form indicates "Hotel/Motel" (Exhibit 9). Two of these forms are submitted to the Finance Department, and the other is submitted to the Fire Prevention Division of the Fire Department at different times in the process. There is no evidence of a final supervisory or quality control review that examines all of the required documentation for consistency. The OIG found that the City relied on the State license to establish the BTR and Resort Tax accounts. The summary of events provided by Mr. Guzman includes the following : Also, on May 19, 2020: A new Resort Tax (RTX) account was setup by the Finance Department. Both BTR and RTX accounts were created based on the Florida State License (#TAP2330379), which is for an Apartment Building. The State license (Exhibit 10) was issued for a "Transient Apartment," which, as defined by the State of Florida, allows for short-term rental and suite hotels. For a residential apartment building which is the CU/BTR that the City ultimately issued to Mr. Thangavel, the State of Florida would have issued a "Non Transient Apartment" license. The miscommunication and misunderstanding of the difference between a suite hotel and a short­ term rental by Mr. Thangavel and the Permit Doctor employees; the reliance by the City on the terminology of the State license, which contains definitions that differ from the City's; and a lack of sufficient quality controls on the part of the City, the most significant example being the acceptance and reliance of an obviously altered application with strikethroughs and additions that were not initialed, signed or dated. In fact, it was this altered application that set forth the domino effect that resulted in confusion that led to the granting of a different license than what may have been intended. As a result of these actions, Mr. Thangavel is still pursuing an appeal for reconsideration of this issue through the City's Board of Adjustment. As part of this review, the OIG, knowing that the process that was used to accept, review and issue Mr. Thangavel's CU/BTR is no longer in effect, reviewed the current CU and BTR processes. The OIG found that the current application process for customers in the Citizen Self­ Service portal could still lead to confusion and the potential for Certificates of Use being issued for a use that is not intended. The OIG found that when a customer first accesses the CU application portal or the BTR application portal, there are no instructions or information for completing the application, which could lead to confusion, misunderstanding of the requirements, and unintended consequences. The first place that any instructive information or definitions appear in the CU application process is in step four of the six-step process. The only place to specifically describe the type of business is in a text box that is not required to be completed. This text box appears in step two, prior to a Page 21 of 23 mandatory checkbox that allows the applicant to select from a list of eighteen types of businesses. If the type of business a customer is looking for is not there; there is only an option of checking "none of the above." The OIG found that, although the BTR application portal did not have instructions or information when the application process is first accessed, it did have a more robust selection of the types of businesses available to the customer as detailed in this report. The selections mirrored the business tax categories that are represented in the City Code. A Certificate of Use is required by the City of Miami Beach to obtain a Business Tax Receipt, which is the license to operate a business in the City. The BTR occupation code and business tax category are based on the CU designation and the State license (if applicable). It is of the utmost importance that any party seeking to obtain a CU and BTR to do business in the City have access to a process that is both clear and informative, providing all the information needed to apply for the specific use (emphasis added) that is being sought to conduct such business and that the possible consequence legal challenge over the result be minimized. To assist in this process, the OIG offers the following recommendations 1. The term "short-term rental" be defined in Section 114-1, which is the definitions section of the Land Development Regulations, should be consistent with the definitions of other lodging accommodation methods, including suite hotels, apartment hotels, hostels, bed and breakfast, and hotels. 2. The initial screen in the Citizen Self-Service Portal for the Certificate of Use and the Business Tax Receipt application should provide definitions and instructions for completing the process, including any important information that would result in the denial of the application. 3. It should be mandatory that the text box in the Citizen Self-Service Portal for the Certificate of Use application, which instructs the applicant to describe the type of business to be conducted, be completed prior to application moving forward in the process. Currently, the application may move forward in the process without providing a description of the type of business. 4. As the determination of the specific use is the single most important aspect of the issuance of a Certificate of Use and is required and relied upon to obtain a Business Tax Receipt, the selection of available uses should follow the same process as that of the BTR application, with drop-down selection boxes of available uses and sub uses. The back end of the portal that is available to the Planning staff includes a drop-down selection of several uses. That option should be made available to the applicant. 5. Although there did exist some level of quality control in the process reviewed, there should be a protocol for the acceptance of documents that appear to be altered. Section 2-256 (d) (3) of the City Code confers upon the Office of the Inspector General the power to require reports from the city manager, city departments, city agencies, boards, and committees, and city officers and employees, regarding any matter within the jurisdiction of the inspector general. The OIG requests that the City provide a status report to the OIG within sixty (60) days of the receipt of this report on the implementation of any of the OIG recommendations. Page 22 of 23 Josep:v;t:2:Z'General Dylan Hughes, Investigator CC: Alina Hudak, City Manager Steven Rothstein, Deputy City Attorney Thomas Mooney, Planning Director Jason Greene, Chief Financial Officer Rick Clements, Chief of Police Ana Salgueiro, Building Director, Building Official Ananthan Thangavel, 1330 15th Street, LLC Damian Gallo Jr., Permit Doctor Eugenia (Jenny) Suraeva, Permit Doctor OFFICE OF THE INSPECTOR GENERAL, City of Miami Beach 1130 Washington Avenue, 6th Floor, Miami Beach, FL 33139 Tel: 305.673.7020 • Hotline: 786.897.1111 Email: CityofMiamiBeachOIG@miamibeachfl .gov Website: www.mbinspectorgeneral.com Page 23 of 23 OIG APPENDIX “A” RELEVANT GOVERNING AUTHORITIES Relevant Governing Authorities Florida Statutes Section 509.013 Definitions. (4)(a) “Public lodging establishment” includes a transient public lodging establishment as defined in subparagraph 1. and a nontransient public lodging establishment as defined in subparagraph 2. 1. “Transient public lodging establishment” means any unit, group of units, dwelling, building, or group of buildings within a single complex of buildings which is rented to guests more than three times in a calendar year for periods of less than 30 days or 1 calendar month, whichever is less, or which is advertised or held out to the public as a place regularly rented to guests. 2. “Nontransient public lodging establishment” means any unit, group of units, dwelling, building, or group of buildings within a single complex of buildings which is rented to guests for periods of at least 30 days or 1 calendar month, whichever is less, or which is advertised or held out to the public as a place regularly rented to guests for periods of at least 30 days or 1 calendar month. Florida Statutes Section 509.241 Licenses required; exceptions. (1) Licenses; Annual Renewals. Each public lodging establishment and public food service establishment shall obtain a license from the division….. (2)Application For License. Each person who plans to open a public lodging establishment or a public food service establishment shall apply for and receive a license from the division prior to the commencement of operation…. Florida Statutes Section 509.242 Public lodging establishments; classifications. (1)A public lodging establishment shall be classified as a hotel, motel, nontransient apartment, transient apartment, bed and breakfast inn, timeshare project, or vacation rental if the establishment satisfies the following criteria: (a) Hotel.—A hotel is any public lodging establishment containing sleeping room accommodations for 25 or more guests and providing the services generally provided by a hotel and recognized as a hotel in the community in which it is situated or by the industry. (d) Nontransient apartment.—A nontransient apartment is a building or complex of buildings in which 75 percent or more of the units are available for rent to nontransient tenants. (e) Transient apartment.—A transient apartment is a building or complex of buildings in which more than 25 percent of the units are advertised or held out to the public as available for transient occupancy. Miami Beach Code Subpart B-Land Development Regulations (LDR) LDR Section 114-1 Definitions. Apartment building means a building with or without resident supervision occupied or intended to be occupied by more than two families living separately with separate cooking facilities in each unit. Apartment unit means a room, or group of rooms, occupied or intended to be occupied as separate living quarters by one family and containing independent cooking and sleeping facilities. (Term includes condominium.) Certificate of use means a document issued by the city manager or designee allowing the use of a building and certifying that the use is in compliance with all applicable city codes, regulations, and ordinances. Hotel means a building occupied or intended to be occupied by transient residents, with all residents occupying hotel units and where ingress or egress may or may not be through a common lobby or office that is supervised by a person in charge at all times. Hotel unit means a room, or group of rooms, each unit containing a separate bathroom facility, with ingress or egress which may or may not be through a common lobby, intended for rental to transients on a day-to-day, week-to-week, or month-to-month basis, not intended for use or used as a permanent dwelling and without cooking facilities. Suite hotel unit and suite hotel means a room, or group of rooms, each containing separate bathroom and full cooking facilities, with ingress and egress which may or may not be through a common lobby, intended for rental to transients on a day-to-day, week-to-week, or month-to-month basis, not intended for use or used as a permanent dwelling. Note by OIG: Short-term rental of any type of dwelling is not defined in this section. LDR Section 142-151. – Purpose. The RM-1 residential multifamily, low density district is designed for low intensity, low rise, single-family and multiple-family residences. LDR Section 142-152. -Main permitted and prohibited uses. (a)The main permitted uses in the RM-1 residential multifamily, low density district are: (1)Single-family detached dwelling; (2)Townhomes; (3)Apartments; (4)Apartment hotels, hotels, and suite hotels for properties fronting Harding Avenue or Collins Avenue, from the city line on the north, to 73rd Street on the south (pursuant to section 142-1105 of this chapter); (5)Bed and breakfast inn (pursuant to article V, division 7 of this chapter); and (6)Apartment hotels, hotels, and suite hotels for properties abutting Lincoln Lane South, between Drexel Avenue and Lenox Avenue, subject to the following regulations: (i)The lot width of the property shall not exceed 100 feet; (ii)The lobby from which the property is accessed shall be located within a building fronting Lincoln Road, which is located directly across Lincoln Lane South from the RM-1 property; (iii)The hotel shall be operated by a single operator; and (iv)No accessory uses associated with a hotel shall be located or permitted within the RM-1 district. LDR Section 142-1105 -Suites hotel, apartment hotel, hostel, and hotel. Relevant Sections: (a)Suite hotel units and suite hotels, as defined in section 114-1 of the land development regulations, shall conform with the following regulations: (1) When a hotel unit contains cooking facilities it shall be considered as a suite hotel unit. Suite hotel units may have full cooking facilities, provided the unit is at least 550 square feet in size. (3)A minimum of ten percent of the total gross area shall be maintained as common area, however this requirement shall not apply to historic district suites hotels. This provision shall not be waived or affected through the variance procedure. (4) The building shall contain a registration desk and a lobby. Any transient guest or occupant for a suite hotel unit must register at the registration desk. Those transient guest(s) or occupant(s) are prohibited from accessing the suite hotel unit without registration. (8)Suite hotels shall be prohibited in all zoning districts and overlay districts that do not list suite hotels as a permitted or conditional use. LDR Section 142-1111 – Short-term rental of apartment units or townhomes. Relevant Sections: (a) Limitations and prohibitions. (1)Unless a specific exemption applies below, the rental of apartment or townhome residential properties in districts zoned RM-1, RM-PRD, RM-PRD-2, RPS-1 and RPS-2, CD-1, RO, RO-3 or TH for periods of less than six months and one day is not a permitted use in such districts. (2)Any advertising or advertisement that promotes the occupancy or use of the residential property for the purpose of holding commercial parties, events, assemblies, gatherings, or the occupancy of a residence for less than six months and one day, as provided herein, or use of the residential premises in violation of this section. Miami Beach Code Subpart A-General Ordinances Article V. Local Business Tax Section 102-356-Construction of article; definitions. Relevant Sections: Business means every trade, occupation, profession or other manner of revenue-producing activity regardless of whether a profit is actually made. Business tax means the fees charged and the method by which the city grants the privilege of engaging in or managing any business, profession, or occupation within the city's jurisdiction. OIG APPENDIX “B” RESPONSE OF ANANTHAN THANGAVEL, COMPLAINANT, TO THE OIG DRAFT REPORT From: Ananthan Thangavel To: Alonso. Elisa; Hudson Phillip M. Cc: Centorino Joseph; Hughes. Dylan Subject: Re: Cover Letter and OIG Draft Reports: Review of Complaint and Process Regarding Certificate of Use and BTR at 1330 15th Street Date: Friday, July 14, 2023 1:56:54 PM Attachments: 20191118-BTR Application-Correct. pdf I HII:-, 'IF"" \Cl·. CO\IF" FRO\I \ \ F'\ n:R:\-\1 F\I \IL l SI· ( \I 110:'-. \HH.~ IH Pl.\ I\(, -\:\.D OPF.'d 'iC, 1.1'.'.1'" 01{ .\ l'I \Cl-I \IE:\ r" I Office of Inspector General, Thank you for the draft report. In response to the draft report, I would like to request the following: I would like the report to make clear that Ms. Suraeva openly admitted to altering the BTR application document that I submitted to her (attached here), and that the document was then further altered by a City of Miami Beach employee. Furthermore, I have sworn under oath and am prepared to further swear to the fact that I never authorized any change to this document whatsoever, and that all alterations were done without my consent. Additionally, we were wondering ifthe IG report could be finalized and made official before July 25th, as the City Attorney's office has requested that the report be made final before they re-engage discussing the matter at hand in our Board of Adjustment case, and they are requesting a large invoice to be paid (-$4600) by July 25th. If we could finalize the report before that time, it would be a great help towards putting this matter to rest without further harm to me. Thank you, please let me know. From: Ananthan Thangayel To: Hughes Dylan Cc: Alonso Elisa ; Hudson. Phillip M : Centorino. Joseph Subject: Re : Cover Letter and OIG Draft Reports: Review of Complaint and Process Regarding Certificate of Use and BTR at 1330 15th Street Date: Tuesday, August 1, 2023 3:05:18 PM I THIS MESSAGE COME~ FROM A~ FXTF.R~:\L E\.IAIL-USE CAl'TION WHE~ REPL \'ING AND OPEMNG Ll'JKS OR A TT \Cll!\H,NTS I In further response to the IG report, I would like to comment the following: While the Inspector General's report did uncover the source of the first unauthorized revision ofthe BTR application which this matter centers upon (Jenny Suraeva ofThe Permit Doctor), the report obfuscates a clear and important fact that was stated to me on a recorded video call with the IG office dated 5/10/23. The second unauthorized revision ofthis document, which consisted ofcrossing out Short-Term Rentals and writing Apt. Building, was done by a City of Miami Beach employee. Furthermore, the I G's assertion that a City of Miami Beach employee can alter a signed document, and that this behavior is not considered "malfeasance or neglect by City employees" is utterly preposterous. Altering another person's signed document without express, written consent is the very definition of "malfeasance or neglect". Finally, for any party in this matter to claim they do not have records going back over 2 years is ridiculous. The construction time line from design/permitting to Certificate of Occupancy of any construction project ofconsequence is more than 2 years. The Permit Doctor would not be able to perform its very namesake if they in fact did not keep documents going back more than 2 years. In fact, The Permit Doctor and the City of Miami Beach have no evidence that I authorized these changes to the BTR application because no such evidence exists, because I never authorized any change whatsoever to this document. OIG APPENDIX “C” RESPONSE OF THOMAS MOONEY, PLANNING DIRECTOR, TO THE OIG DRAFT REPORT From: Mooney, Thomas To: Alonso, Elisa Cc: Hudak, Alina: Rothstein, Steven; Greene, Jason; Clements Rick; Salgueiro Ana ; Bain, Tiffany: Williams, Rickelle; Centorino Joseph; Hughes, Dylan Subject: Planning Department Response: OIG Review of Complaint and Process Regarding Certificate of Use and BTR at 1330 15th Street Date: Friday, July 28, 2023 12:24:34 PM Attachments: Review of Complaint and Process Regarding Certificate of Use and BTR at 1330 15th Street.pdf Cover Letters -City. pdf Importance: High Good Afternoon Elisa This email shall serve as the Planning Department's Response to the Draft OIG Report, dated June 16, 2023, relating to the Review of Complaint and Process Regarding Issuance of Certificate of Use and Business Tax Receipt at 1330 15th Street ("Dra ft Report"). As a threshold matter, the Draft Report concerns issues that are also the subject of an administrative appeal currently pending before the Board of Adjustment. Pursuant to Article I, Section 2 of the Related Special Acts, and Sections 118-9 and 118-397 of the Land Development Regulations, the Board of Adjustment has the exclusive jurisdiction to decide appeals from formal determinations of the Planning Director. On February 22, 2023, the owner of the property at 1330 15th Street appealed the denial of a Business Tax Receipt on the basis that, pursuant to the Land Development Regulations, short-term rentals are not permitted on the subject property. On May 5, 2023, and following argument and testimony from the property owner, Planning Director, and nearby residents, the Board of Adjustment denied the appeal and affirmed the decision of the Planning Director. On June 2, 2023, the Board of Adjustment adopted a motion to reconsider its May 5th decision. Pursuant to that motion, the appeal will be re-noticed for the September 8, 2023 Board of Adjustment meeting. At that time, the Board will take additional testimony, and decide whether to affirm or reverse its original decision. Notwithstanding the appeal pending before the Board of Adjustment, which will make a final determination as to whether the previous use of suite hotel may be reintroduced, the Planning Department wishes to provide the following information to supplement and/or clarify issues raised in the Draft Report. 1. Response to the Summary. in the Draft Report. of events between May 19 2020 and September 24. 2021 A CU/BTR was issued to the property owner (Mr. Thangavel) on May 19, 2020 for non-transient apartment rooms. This CU/BTR was renewed on December 20, 2020 and remained active until September 30, 2021. Notwithstanding the fact that a CU/BTR was issued for the property, on page 6 of the Draft Report, Mr. Gallo Jr. (who, at the time, was the owner's permit expediter) is described as indicating that the process to obtain a CU/BTR was never completed. It appears that Mr. Gallo is referring to the CU/BTR that would otherwise be required for the short-term renta l of the eight units in the building; however, this is not clear. On page 8 of the Draft Report, the employees of the Permit Doctor acknowledge that each unit proposed to be used for short-term rentals must obtain a separate CU/BTR, but such applications were never submitted by the Permit Doctor to the City until September 24, 2021. There is no explanation as to why an application for the short-term rental of the units was not made until September 24, 2021. The previous use of suite hotel at the property became prohibited in August of 2020 (pursuant to Ordinance No. 2020-4364, which removed "suite hotels" as an allowable use in the West Avenue Bayfront Overlay District). It is important to note that had the CU/BTR application for the short-term rental of the units in the building been submitted as part of the application approved on May 19, 2020, that CU/BTR application would have been denied by Planning and the applicant, at that point, could have potentially modified the application to a suite hotel, which was a permitted use until August of 2020. 2. Request of the Property Owner for the Short-Term Rental of all Eight (8) units On page 9 of the Draft Report, it is noted that one of the documents uploaded by the Permit Doctor (the permit expediter) on September 24, 2021 for the short-term rental CU/BTR application was a June 15, 2020 letter from the property owner indicating his intent to apply for a short-term rental BTR for all eight units in the building. The Draft Report further notes that this letter was not part of the documentation received by the City on December 27, 2019 and therefore was not considered part of the process. First, it is not possible for a document that was signed on June 15, 2020 to have been part of an application submitted 6 months earlier, on December 27, 2019. Second, there is no explanation as to why this correspondence from June 15, 2020 was not included in a CU/BTR application until September 24, 2021. Again, if a CU/BTR application for short-term rentals had been submitted prior to August of 2020, although it would have been denied by Planning (because short-term rentals have been prohibited in this district since 2010}, it is likely that the applicant would have questioned why the application was denied and been advised that Suite Hotel was still a permitted use and the application could have been modified to reflect a suite hotel. 3. Closing of Previous BTR for Suite Hotel Use On page 11 of the Draft Report, it is noted that as part of December 27, 2019 CU/BTR application, the prior CU/BTR for a suite hotel on the property was uploaded. The report further indicates that this prior BTR was issued to the previous property owner on September 27, 2019 and expired on September 30, 2020. The report, however, does not recognize that this previous BTR (and corresponding resort tax account) was closed, in writing, by the previous property owner, on November 27, 2019. As such, the application submitted on December 27, 2019 was considered a new CU/BTR application . 4 . Planning Review of CU/BTR Application On page 12 of the Draft Report, under "P lanning Review," as it pertains to the review of the December 27, 2019 CU/BTR application, the Planning comments note that the application is for a residential apartment building (8 units). It is further noted in the report that there is no explanation of how that determination was made. It is important to point out that the application submitted by the property owner, and uploaded to the system, was for an apartment building. City staff relies on the accuracy of each applicant's submissions. The subject property is zoned RM-1 (Residential, Multi-Family Low Intensity) and this zoning district expressly permits apartment buildings as a permitted use. Since this is a permitted use, and the previously issued permit for suite hotel confirmed that the building met the minimum unit size requirements for an apartment unit, there was no reason for a Planning reviewer to inquire further. In short, if a proposed use is permitted within a zoning district, the Planning reviewer does not initiate an inquiry as to why the property owner desires to license a permitted use. Also, whether the 'change of use' box was checked or not had no impact on this CU/BTR application in terms of zoning review, as apartment building is a permitted use in the underlying RM-1 zoning district and the previous use (suite hotel) met the applicable unit size and kitchen requirements for an apartment unit. 5. Definition of Short-Term Rental (STR) On page 17 of the Draft Report, it is noted that suite hotels are defined in the definitions section of the Land Development Regulations ("LDRs"), but that short-term rentals are not. However, short­ term rentals are defined under Sec. 142-1111 of the LDRs, as "the rental of apartment or townhome residential properties in districts zoned RM-1, RM -PRD, RM-PRD-2, RPS-1 and RPS-2, CD-1, RO, RO-3 or TH for periods of less than six months and one day." Thomas R. Mooney, AICP Planning Director Planning Deportment I 700 Convention Center Drive - 2 nd Floor, Miami Beach, FL 33139 Tel: 305-673-7000 x6 l 9 l / tmooney@miamibeachfl gov www.miamibeachfl.gov It's easy being Green! Please consider our environment before printing this email. OIG APPENDIX “D” RESPONSE OF JASON GREENE, CHIEF FINANCIAL OFFICER, TO THE OIG DRAFT REPORT Hughes, Dylan From: Greene, Jason Sent: Monday, July 31 , 2023 9:51 AM To: Hughes, Dylan Cc: Centorino, Joseph; Hudak, Alina; Bain, Tiffany; Rothstein, Steven; Clements, Rick; Salgueiro, Ana; Mooney, Thomas; Carpenter, Eric; Marquez, Manny Subject: RE : Cover Letters and OIG Draft Reports: Review of Complaint and Process Regarding Certificate of Use and BTR at 1330 15th Street Dylan, Please find below response from Finance. Thanks, Business Tax Section Response: The Business Tax Section of the Finance Department concurs with the Office of the Inspector General (OIG) with respect to the review and process regarding the issuance of the Certificate of Use and Business Tax Receipt for the property located at 1330 15th Street, "there was no malfeasance or neglect by City employees." Allegation 1 : City of Miami Beach employees may have engaged in malfeasance and/or negligence with respect to the issuance of a Certificate of Use (CU) /Business Tax Receipt (BTR) for the property. Response: The Business Tax Section concurs with the OIG Conclusion regarding the allegation, "the issuance of the CU/BTR to Mr. Thangavel, was thoroughly reviewed by the OIG, which concluded that there was no malfeasance or neglect by City employees. " The property owner hired a permit runner to process their application. If there was any miscommunication, misunderstanding and/or misinterpretation, it was between the applicant, Mr. Thangavel, and his permit runner, the Permit Doctor, as stated in page 17 of the OIG's report, "during the review, the OIG found that miscommunication, misunderstanding, and/or a misinterpretation of the various meanings of accommodation establishment terminologies throughout the process by Mr. Thangavel and the Permit Doctor employees." The applicant relied on his permit runner to handle his Local Business Tax Receipt application. The applicant and their permit runner, submitted a Local Business Tax Receipt application with a different type business category than the previous owner. The applicant and their permit runner, also submitted an application with a different type of State license than the previous owner of the property. The applicant was given the Local Business Tax Receipt they applied for. The City's Board of Adjustment, at their May 5th , 2023 meeting, denied the applicants appeal to reinstate a non-conforming suite hotel use on the property. MIAMIB AC Jason D. Greene, CGFO, CFE, Chief Financial Officer City of Miami Beach 1700 Convention Center Drive, Miami Beach, FL 33139 1 OIG EXHIBIT 1 NOTUS LLC CU/BTR APPLICATION New Bus!Msa Tax Aca>unl 11-_____________Amounl ofFee Coe: $___S4_5_.00_Ap_pll_catlon__F_ee__ Lut CllyUcens&# fOf Th{sAddrass ____________,Uake Ched< f'ayll,le 10: CllY OF MIAMI BEACH City of Miami Beach Certificate of Use (CU), Annual Fire Inspection Fee & Business Tax Application Tfiis appbtion is tiQIyo/It bvslne33 lax ~e.pt Do notoperate tile~"un/ithe ~atU&e tll1d/!lo Bu,mc33 TSK R~ipt",n /$Wed. TIie place ofbuslnou mu!!I ba r,aiW//e loalln$pKlOIS. ,, ! I ,I. i TYi>'! ofAppllcaUon: Y1-iew Business _ O\ange ofONner _AddlngSeau _ Addl!lonal ClccupaDon ~~· ofLocat!ai lcatlon Ch«kllst Fedeml ID No. _ FtcillloU$ Name Registration _ Lease/O~oslng Statement Mldes at Inc. (if appflc:able) _ State Ucense Of appilcable) _ CU and Annual Fh Fae (non refundable) ~ SiUcfSaJe _ Insurance Does the Appllcatfon Involve: _ Cllange 01 Use _ Ranoval!on (Provide Certlff:alll of o=pancy Process Nwmer ___) A Change ctUse may 9!nerom addifkma/ bu/ldJng and1h code 19quiP.Jlle/llS s.:i •ppl'.ad to new coMtn.ct/on. A vaF.d C1Jrllflcate clOccupancy b ~befOII! an occu;,aaonal Janse c:an bl! wued. Is tho Buslnoss one or more of the loUowfng types: _ Aparunent Bulldlng _ Condominium ~lel Re,m1uran1 _ Bakel'y lr;e Cream PII1cr _ Delicatessen _Nii,,tdUI) =Dandr1g/Erdl!rtalnmet'I Real Estate _ Hair Salon _ Home Based Business Heallhdl.lb Ptomow -Vale! _ Escort S~ce _ JarJtorial Servtce Mall Order _ Pre-Padago Food _ Meter Scooll>r Retail Altohd Sales _ Tr.M!I (sales) Mooile Caterer _ Alcohollc Bel/trage Eslabllshment BaaCII Frcnt Concesslai Madine Dlstrib"!IO' Is th• Business one cf the followlng typu: _ Adult Congr Uv Fad]ly _ Day Care _ Nurifng Heme _ Religious lnstttudc<1 School _ Par1lll'lg LollGarage Ou!door Enlertalnment _ Operl Al' EntertaJnmen1 _ Pawnsh09 _ WBrehcuse Video Game Arcade Gascline Sales Restairant _ Alcol\ollc Beverege Esfallllshment BusileS&Name /'10{~4 llL---~~il/ii/4 LotaCCW\ .A~3() 13 ~ Lease__ Own X: ~oreus,ness(beve,yspeclflcl .$_µ f ~ t/0 ~(.__. Hours of Operallori_1 HDurs Serving A110hol f'{rl: ~,,_,,,....,,,.,.,,m Joi~ t ou,___St._• .. --=-----------,,-='SSN-====~===;;=== __cqy f1t2 Stale ft Zlp JJ.dl f .. •• FORM: OCC-1 iov: 10112/04 P 00 THE APPROVAL PROCESS FOR n11s APPLICATION TO 1000 cm 89511 c, E-man: B/91a19Amau@mlamjbeaehll99Y lallle~a: Hotel or Atiartm•nt? Ifyi,s, haw many inta? _ ...8...__ , ofwashen!/dry«a (1f~-- Ra.twrant? How ma,yaeats inalda?,.,__...,..,,_ Howmanysl!als DUIBld9?(pmllllepropertya111y) __ If thel8 Mil be seal! oulllde M j)Ublicproperty (sfdewalk), 1hen ■ Sldawalk c~Permit Is lllCJJiml. Houra ofAJcohcl Sales __________(Zoning Rewsw for# of chairs) Office orRll.alt l:stabltshment? If yes, appt'OJdmale sq. fl. ___ If Ratalt, what Is the ln\191ltory value? General$._____ Food$.._____ Liquor$___ HaltorNall Salon? 11 yes, manber ofseats ___ Uotot Scoatar Rantala? Ityea, oomber of 1C00ters ___ A 111ami.o.de County e1111n11a Tax ReQillptia M;O niqu."ed. Sell "Mlani DadeCWltf Business Tax tor men !nformllllon.• Conmct the F'll!nni'lg Oopllt!roent for a Sign Pemu't which la requrecl firill sigllagll. Arv; pertDn IMWI, fl app!W,g for a llUalneea license In 118 City ofMamJ Beach, v.tlll 11hal! ll'lllloll a fQlse 6tatementancl/or rail to dlsdoee andt'or · mlatapMent 1hein!ormallon requested 1ha11 be 11!lject to penalles IUlho~zed by Clly Code Section 102-!75. I UNDERSTAND11-IAT fT IS MY RESPONSISIUlY TO FO FOLLOW-LIP PlEASE CONTACT, RICARDOARNAU I HAVE READ THIS APPLICATION ANO I00FREELYAN CONTAINED lHEREtN AAE TRUE ANO CORRECT. Ofl'lclal Uae Only: RevleYI by!he fOl~ng Depettme(!I$ may be~d: Planning & ZanirG ReQ!hec!?_ye,._na B~ Date___ Comme Oa___CollCllfflleV Requed? .J.~_no B}'. Commeru Blaq Req.,tad? _JeS _oo By Dae___ COll'l'lllll'lb Data___Fir& Reql.hj?......:,e&_JIO By Commar.ts Oatll___ReQJ!red? _yea _no B~ Cornmenbl Date___ ?8ftlrG Rle,fcManagaman ~lrell?_yes _no BY, Coovnenls PulUcW01115 ~ired?....,.yef.___ftJ oate__ comments ~?_yes_no Dale_____ CornrnemF!m111ce ~ Code Rl!lql!i'ed?....fttl_llO ~ COltlllllllisDau,___ N<Jl8G/CommBntll FOM: OCC.1 RH. 1°'12/04 OIG EXHIBIT 2 NOTUS LLC CU/BTR 1700 Convention Center Drive Miami Beach, Florida 33139-1819 CITY OF MIAMI BEACH CERTIFICATE OF USE, ANNUAL FIRE FEE, AND BUSINESS TAX RECEIPT LICENSE NUMBER: BTR005837-01-2019 Beginning: 09/27/2019 Expires: 09/30/2020 Parcel No: 0232330160200 TRADE ADDRESS: 1330 15 St Code Business Type 95009500 HOTELS (SMOKE DETECTOR) 8IHotel: #Rooms PRESORTED FIRST CLASS U.S. POSTAGE PAID MIAMI BEACH, FL PERMIT No 1525 TRADE NAME: NOTUS LLC OBA: IN CARE OF: ADDRESS 1330 15 St MIAMI BEACH, FL -331392249 A penalty is imposed for failure to keep this Business Tax Receipt exhibited conspicuously at your place of business. A Business Tax Receipt issued under this article does not waive or supersede other City laws, does not constitute City approval of a particular business activity and does not excuse the licensee from all other laws applicable to the licensee's business. This Receipt may be transferred: A. Within 30 days of a bonafide sale, otherwise a complete annual payment is due. B. To another location within the City if proper approvals and the Additional Information Storage Locations FROM: CITY OF MIAMI BEACH 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FL 33139-1819 NOTUS LLC 435 21 St, 4 MIAMI BEACH, FL -331391704 D,,ll,,,ll,,,,II,,II,l,l,,,,l,l,,l,l,l,,ll,l,,,l,,ID OIG EXHIBIT 3 NOTUS LLC CO                                              OIG EXHIBIT 4 1330 13TH ST LLC CU/BTR CITY OF MIAMI BEACH CERTIFICATE OF USE, ANNUAL FIRE FEE, AND BUSINESS TAX RECEIPT 1700 Convention Center Drive Miami Beach, Florida 33139-1819 TRADE NAME: 1330 15TH STREET LLC LICENSE NUMBER: BTR008501-12-2019 DBA: Beginning: 05/19/2020 IN CARE OF: Expires: 09/30/2020 ADDRESS: 1330 15 St Parcel No: 0232330160200 MIAMI BEACH, FL -331392249 TRADE ADDRESS: 1330 15 St A penalty is imposed for failure to keep this Business Tax Receipt Code exhibited conspicuously at your place of business. 95000900 95700000A Business Tax Receipt issued under this article does not waive or supersede other City laws, does not constitute City approval of a particular business activity and does not excuse the licensee from all other laws applicable to the licensee's business. This Receipt may be transferred: A. Within 30 days of a bonafide sale, otherwise a complete annual payment is due. B. To another location within the City if proper approvals and the Additional Information Storage Locations FROM: CITY OF MIAMI BEACH 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FL 33139-1819 Business Type APARTMENT ROOMS Apartment buildings (rental), not including kitchens and bathrooms Apartment Bldgs Rental: # Units 8 PRESORTED FIRST CLASS U.S. POSTAGE PAID MIAMI BEACH, FL PERMIT No 1525 1330 15TH STREET LLC 1330 15 St MIAMI BEACH, FL -331392249 OIG EXHIBIT 5 1330 15TH ST LLC ORIGINAL CU/BTR APPLICATION Amount of l=ee Due: $. ______ Las1 City License # for This Address _ _Make Check Payable lo: CITY Of MIAMI BEACH Wew B1.11inosu, Tax Account•-------------­ City of Miami Beach Certificate of Use (CU), Annual Fire lm1pect1Qn Fee & Buainess Tax Applicillion This application I& NfilYOUr business tax reCl!iDt Do not ooerate the business until the CeniflCSte ofUS#! ~ndthe Busine.-.s Tax Receipt e are i.~sufld The placeofbusiness mustbe avalable to aJI inspectors. Type of Appllcatlon: NewBUsiness Lcnangeor owner -AOdlng Seats _ Additional Occupation =Ctenge or LocaUon Application Check1ist Federal 10 No. _ Fictitious Name Registration _ LeaseJOeed/Closing Statement=Ar11~ of lnr_ (If applicable) _ State License (if applicable) _ CU and Annual Fire Fee (non refundable) 8.ilof Sale Insurance Do• the Application Involve: _ Change of Use _ Renovation (Provide Certificate cl. Ocrupancy Process Number ____, A Change ofUse may genemte additional buflding andfire code requiremenb asapplied tn nP.w cnn.'slmdion A valid Celtiflcl/lfe of Occupancy I$ requirea bef~ an oa;upational ficerJ$e Cll'I be issued. rs the 8uS1ness one or more of tile following types: _ Apartment Building _ CondorniniUm ..:::!.Hotel Restaurant Bakery Ice Cream Par1or _ Delicatessen _Nightclub =DancingtEntertanment _ Real Estate _ Hair Salon _ Home Based Business _Health dub _ Promoter _Valet _ EscortSeNioo _ Janjorlal Service _ MallOrder _ Pre-Package Food _Motor Scooter _ Retail Alcohol Sales _ Travel (sales) _ Mnhif! Caterer _ Alcoholic 8everage Establishment _Beach Front Concession _ Machine Distributor Is the 8uslnoc11 -of the following typec: _ Adult Congr Liv Faciity _ Day Care _ Nursing Home _ Religious Institution _ School _ Pa'king Lot I Garage _ Outdoor CntertailYnent _ Open Air Entertainment _ Pawrn;hup _ warehouse _ Video Game Arcade _ Ga:solire Sale$ _Rest;u...-..,,1 _ Alcoholic Beverage Establ~t1ment Business Name I2]v Application Date: \I'fg/~IC, Location \ >Jo ) 5 Lease Ov,r, ✓ Type of Business (be very speciic)___ _ Hourr:. of Operation___ Hours ServilllJ Alcohol Name of Own ~-~f',l · Fedet'llllD# _ Business Phone ___ Cell Phone ____ _ Email Address ~~;11,,J .-\vd@ IA t5 sh~; -c ~p:+,I • t ~~ Send Buain888 Mail to Atten~on of: __fJ.,' <c....,"-...<---=~"'--")---.'1..~....-a'b_.,._~~,~.;:t::>...\r-.;.......cn,.....r_r____ Bu$in~ Phone Address __________ ______c11y _____s1aIe Name ofEmergency Contad ~"' f ~J "J,. ::rl,,A~ IIyr I FORM: OCC-1 Rev.10/12/CM Is the Business a: Hotel or Apartment? If ye$, how many units? __ z~-# ofwashers/dryers (if owned) _I__ Restaurant? How many seats Inside?_____ How many seats outside? (prtvate property only) ___ If there will be seats outside on public property (sidewalk), then a Sidewalk Cafl! Permit Is required. Hours of Alcohol Sales _____________(Zoning Review for# of chairs) Office or Retail Establlshmont? Ifyes, approximate sq. ft. ____ If Retall, what is the inventory value? General $ ______ Food$______ Liquor$.____ Hair or Nall Salon? If yes, number of seats ____ Motor Scooter Rentals? If yes, number of scooters ____ A MlamJ.Oade County Business Tax Receipt is also required. See "Miami Dade County Business Tax for more information." Contact the Planning Department for a Sign Permit which is required for all signage. Ally person who, In applying for a business license In the City of Miami Beach, who shall make a false statement and/or fail to disclose and/or misrepresent the Information requested shall be subject to penalties authorized by City Code Section 102-375, I UNDERSTAND THAT IT IS MY RESPONSIBILITY TO FOLLOW-UP ON THE APPROVAL PROCESS FOR THIS APPLICATION. TO FOLLOW-UP PLEASE CALL 305-673-7420 FOR FURTHER INSTRUCTIONS ANO/OR STATUS. I HAVE READ THIS APPLICATION AND I DO FREELY AND VOLUNTARILY CONFIRM THAT THE STATEMENTS ANO INFORMATION CONTAINED THEREIN ARE TRUE AND CORRECT. Print Name Signature Offlclal Use Only: Review by the following Departments may be required: Planning & Zoning Required? Jes _no By Date Comments Concurrency Required? Jes_ no By Date Comments Building Required? Jes_ no By Date Comments Fire Required? Jes_ no By Date Comments Parking Required? Jes _no By Date Comments Risk Management Required? Jes _ no By Date Comments Public Works Required? Jes_no By Date Comments Finance Required? Jes _ no By Date Comments Code Required? JeS_no By Date Comments Notes/Comments FORM: OCC-1 Rev. 10/12/04 OIG EXHIBIT 6 1330 15TH ST LLC CHANGED CU/BTR APPLICATION 13 TK CD 1,' 61 -I ':) -~ o/ </I I1crc_ d e;,/ Cr-6 ~ co r New Plan Number: -----------= Amount of Fee Due: &i5 00 Agpljcation Fee Last City License# for This Address: __ Make Check Payable to: CITY OF MIAMI BEACH City of Miami Beach Certificate of Use (CU), Annual Fire Inspection Fee & Business Tax Application This eppf;ce,t;ion isNQTyourb<lsincss lal<rcccipl 0onot<1l)erae f'1e business !Kltil rtie Cetf£,c8(e of Use ard the Suainess Tax Receipt '"7is:s&Hd Thep/806 dbu$J/1enme1Slbe evllilab#c toallnspcctors. Type ofApplic:atlor1: -New BuSines.s ~ange cl Owner _ Addirig Seats _ Addiliaial OccupatiOn _ Change of Location Apc,li:ation Checkllat _Federal I)No _Fic:tit,ous NameRegistrabon _ Lease/Deed/Closng Statement _ Articles cl Inc (ofappbcable) _State U:ense 1,rapp1cao1e1 -CUandAmual FireFee{non-refUl'ldable) _Bilo!Sale Insurance Doesthe Applicalio" .,volv•: _ Change ofUse Renovation (PfOllidB Cerlffic31e It Occupanc:y Prooe:ss Number __ A Chango oft.lH m.,ygc,nc,u,o&dtltional building 11ncJ flr9 i;ooereQUntmerws1JS appree11onewc011Srructm A valid C~clO=,.Jpancyis,oquhJd oelbt'e enoecupelion11I licenseca,nbe issuf!d. ~ the BusIn Ha one or more ol the followi"II types: Apartment Bu~ding Condominium Hotel _ Restaurant Bakery _lceCream Par1or _Delicatessen NighlClub wDaocilg/FDCedairrneot _ Real Estate _HairSalon _ Home Based BuSiness _Health dub Promoter Valet Eseott Swvice _Jaoila:ml. Service MailO-der _Pre.Pac:kage Food -Motor Scoote, =Reta~Alc:oholSales _Travel (~les) _Mobile Caterer Al0ollolic B&1e111ge Establishment _Beach Front Concession ___Machine Distlibutor lath• Buslnessorie of thtfollowlngtyp•s : _Adult Congr LivFadlity _Day care _ N11s1ng Home Religious Institution _SchOol _Pattung Lot1Gata90 _0...ldoor Enterta,nmenl _ OpenAirEnterta,rment _Pawnshop _ warehoU$CI _VldeoGameArcade _Gasoline Sales _ Restaurant Alcoholic Beverage Establishment BullOBSSNarr ■ Location Hours Serv,ng Alcohol _ ___ _ _ Neme of Owner / Presodenl £:.I"" Federal ID#. Email AddreiS 2io 53/ r55 SendBullinessNailtoAttentJonot. ~~ -~-''.f''----~---::.a._·-r-~slnessPhone Address_____ ___City_____State __Zip Nameol Eme10encvContact //2Q,h 9 0 --/v t) nm1.A i'ict'-niw.l'ilt1J.,,.1.------------------------------ Is the BUIIMla a ; Hotel or Apartment? If yes. how many ul'its? _ _Z...___ t ol washel'l.ldryers (If owned) _I _ _ RN1aurant? How many seats inside?---,,.-How many seata outside? {private property only) ___ lflhefe wil be seats outside on public property (sidewalk), then a Sidewalk care Penni! ls required. Hours ofAlcohol Sales ______ ______(Zoning Review !Of# ot chairs) Offlc.01' RecaJI Eatabllshment? Ifyes, approximate sq. ft. ___ If RNU, YAlat is the invenlo,y value? General $ _____ _ Foods.____ _ Liquor$ ____ Hair or Nall Salon? If)"915, number of seats _ _ _ MOCor Scootar R8ntala? If yes. number of scooters ___ A lllaml-D■de County Business Tax Receipt is also required. See "Miami Dade County BusineH Tax for more infonnation. • Contactthe Planning Departmeot for a Sign P■nnlt which is required for J!l11ignage. Any person who, in applying for a business license in the City of Miami Beach, IM'IO shaN make a false statement and/or fail to disdose and/or misrepresent the information requested shaR be subject to penalties authonzed by City Code Section 102-375. I UNDERSTAND THAT IT IS MY RESPONSIBILITY TO FOLLOW-UP ON THE APPROVAL PROCESS FOR THIS APPLICATION. TO FOLLOW-UP PLEASE CALL 30!H>73-7420 FOR FURTHER INSTRUCTIONS ANO/OR STATUS. I HAVE READ THIS APPLICATION ANO I DO FREELY AND VOLUNTARILY CONFIRM THAT THE STATEMENTS AND INFORMATJON CONTAINED THEREIN ARE TRUE AND CORRECT. Print Name Signa!Ufe Official UHOnly: Review by the folowing Departments may be required: Planning & Zoning Required? _yes. _no By • pa_te Co~nts Concurrency Required? _yes _no By Date Comments Buiding Required? _yes _no By Da,te Comments F~ Reql.ired? _yes _no By ,Date Comments Peridng Required? _yes _ no By Dale . Comments Risk Management Required? _yea _ no By Cate Convnents Pub~cWOlb Required? _;;es-'10 By Date Comments Finance Required? _;;es _ no By Date CorMlents Code Required? _yea _no By Date Convnents Notes/Commentg FORM: OCC-1 Rev. 10/12/04 OIG EXHIBIT 7 1330 15TH ST LLC SHORT-TERM RENTAL CU/BTR APPLICATIONS NOT SUBMITTED UNIT 1 _______ __ _ New Business Tax Account# _____________ ____Amount of Fee Due:$'--------------- Last City License# for This Address _____________ ,_ Make Check Payable lo: CITY OF MIAMI BEACH City of Miami B_each Certificate of Use (CU), Annual Fire Inspection Fee & Business Tax Application This application is !Y.QIyour business tax receipt. Do not operate the business until the Certificate of Use and the Business Tax Receipt e are issued. The pface ofbusiness must be available to all inspectors. Type of Application: _ Adding Seats _ Additional Occupation =Change of Location New Business JL'change of Owner Application Checklist Federal ID No. _ Fictitious Name Registration _ Lease/Deed/Closing Statement _ State License (if applicable) _ CU and Annual Fire Fee (non refundable) =Articles of Inc. (if applicable) Bill of Sale Insurance _ Renovation (Provide Certificat~ of Occupancy Process Number _____,Does the Application Involve: _ Change of Use A Change ofUse maygenerate additional building and fire code requirements as applied to new construction. A valid Certificate ofOccupancy is required before an occupational license can be issued. Is the Business one or more of the following types: ~ Hotel _ Restaurant _ Bakery _ Apartment Building Condominium _ Dancing/Entertainment Real Estate Ice Cream Parlor _ Delicatessen _Nightclub Hair Salon _ Home Based Business _ Health club Promoter Valet _ Pre-Package Food _ Motor Scooter Escort Service Janitorial Service _Mall Order Mobile Caterer _ Alcoholic Beverage Establishment Retail Alcohol Sales =Travel (sales) Beach Front Concession Machine Distributor Is the Business one of the following types: _ Nursing Home _ Religious Institution School _ Par1<ing Lot f Garage Outdoor Entertainment _ Adult Congr Liv Facility _ Day Care _ Open Air Entertainment _ Pawnshop _ Warehouse Video Game Arcade Gasoline Sales Restaurant _ Alcoholic Beverage Establishment Business Name_..1.., _,_ 72...LJ~J_....I z;_➔)i~>:t:c.!..:.<-..=~e..>(:"'".}--'l,'-'~"'-""C,..._________ Location__\:...~~J,;...:n:,__\.1...S:.L.--t_""l__:S::..~--~)-'M-'-'-;l,c.:M.:,.,,_·-1'g<..::e..::..."'-==c."':..:..+-)..:....f'Lr_:::,;_""-33.,_· \.:....,3:.....4L-,U:::.L.·n,rt /. Type of Business (be very specific) ~Sbor-t -1-lrM !ZatifaJ . Application Date: \ 1 { l'if~I ~ Lease__ own ✓ Hours of Operation____ Hours Serving Alcohol ______ _ Home Address Cell Phone _Home Phone--Business Phone _________ EmailAddress p.h-1,,l)lllJI #\v1'\@J1iksh-•l'1;-u,o,'-t-t:al•c1',.,, ~ t 1 Business Phone Send Business Mail to Attention of: __...s;.· <!!:e~n.~<:::.....::.~:.....L}-l!,0:.;~"-='l}_;_v....;~==-,•1--..:b::...::\r-.....!.n~f"a.,....;..r____, Address _ _____________ ________City _ ____S1ate Name of Emergency Contact \'1\ v. r .,4j PS" :Tb pA; .?I Vt I FORM: OCC-1 Rev.10112104 ::. Is the Business a: Hotel or Apartment? If yes, how many units? _ __.i,___ # of washers/dryers (if owned) _l__ Restaurant? How many seats inside? _____ How many seats outside? (private property only) ___ If there will be seats outside on public property (sidewalk), then a Sidewalk Cafll Permit is required. Hours of Alcohol Sales _____________ (Zoning Review for# of chairs) Office or Retail Establishment? If yes, approximate sq. ft. ____ If Retail, what is the inventory value? General $.______ Food$______ Liquor$.____ Hair or Nail Salon? If yes, number of seats ____ Motor Scooter Rentals? If yes, number of scooters ____ A Miami-Dade County Business Tax Receipt is also required. See "Miami Dade County Business Tax for more information." Contact the Planning Department for a Sign Permit which is required for all signage. Any person who, in applying for a business license in the City of Miami Beach, who shall make a false statement and/or fail to disclose and/or misrepresent the information requested shall be subject to penalties authorized by City Code Section 102-375. I UNDERSTAND THAT IT IS MY RESPONSIBILITY TO FOLLOW-UP ON THE APPROVAL PROCESS FOR THIS APPLICATION. TO FOLLOW-UP PLEASE CALL 305-673-7420 FOR FURTHER INSTRUCTIONS AND/OR STATUS. I HAVE READ THIS APPLICATION AND I DO FREELY AND VOLUNTARILY CONFIRM THAT THE STATEMENTS AND INFORMATION CONTAINED THEREIN ARE TRUE AND CORRECT. ~ Print Name Signature Official Use Only: Review by the folloWing Departments may be required: Planning & Zoning Required? _yes _no By Date Comments Concurrency Required? _yes _no By Date Comments Building Required? _yes _no By Date Comments Fire Required? _yes _no By Date Comments Parking Required? _yes _no By Date Comments Risk Management Required? _yes _no By Date Comments Public Works Required? _yes _no By Date Comments Finance Required? _yes _no By Date Comments Code Required? _yes _no By Date Comments Notes/Comments FORM: OCC-1 Rev. 10/12/04 OIG EXHIBIT 8 1330 15TH ST LLC SMOKE DETECTOR REPORT ANNUAL SINGLE STATION SMOKE DETECTORS INSPECTION/fEST REPORT RETURN COMPLETED FOAM TO: MIAMI BEACH FIRE PREVENTION DIVISION 1701 MERIDIAN AVE. -2ND FLOOR MIAMI BEACH , FL 33139 TELEPHONE: 305-678-7123 FAX : 305-673•1085 ATTENTION INSPECTOR: _______....,..._____ The smoke detectors at the following address are: (circle one below) HARO WIRED 11 OVBATTERY OPERATED ELECT.RICALL V OPERATED All single station smoke detectors located at the following address have been inspected/tested for proper operation as recommended by the manufacturer and at the time of Inspection are: Battery powered single station smoke alarms must be tested no less than once per week {69A-43) Hard wired single station smoke alarms must be tested annually. (NFPA 72 -10.4.3) Plea~e circle one: NOT OPERATIONAL{*} NAME OF BUILDING: ADDRESS OF BUILDING: TYPE OF OCCUPANCY (SPECIFIC USE) NAME OF OWNER OR AGENT: OWNER OR AGENT TELEPHONE : PERSON PERFORMING TEST: JOB TITLE: r) LIST DEFICIENCIES AND REQUIRED CORRECTIONS: ______ ______ _ NOTE: Written records/logs of visual Inspections and tests shall be kept by the owner for inspection by the authority having jurisdiction. DATE OIG EXHIBIT 9 1330 15TH ST LLC RESORT TAX REGISTRATION FORM RESORT TAX REGISTRATION FORM NAME \] , ADDRESS ZIJ>CODE SALES TAX ACCOUNT# FF.J)ERALIOil i 1-~ 1 7> 0 (;, 3 J BUSINESS INFORMATION: 2 OPERATOR INFORMATION: +'720 lJPCODE )5) S~ PHONE#(~\~) b 7-)"75° DRIVER'S UC# 1 £ 2\ -ooo -'t -3<-t"I - b SOC.SEC.# $ 6 -S-I o7 3) OPERATOR INFORMA HON: NAME HOME ADDRESS CITY STATE ZlPCODE PHONE# ( ) DRIVER'S LICII SOC.SEC.# 4) OPERATORINFORMATION: NAME ADDRESS CITY STATE ZIPCODE PHONE# ( ) DRIVER'S I.IC# SOC.SEC.# 5l OPERATORINFORMATION·. 6)STARTDATEOFBUSINESS: )2,, / 5/7,.0\j 7) 1''YPE OF STATE LICENSE: l<J DMSION OF HOTELS & RESTAURANTS [ ] DEPARTMJ<;NT OF ALCOJJOL. TOBACCO & FIREARMS [] DEl'AJ'tTMENTOFAGRICULTURE 8) TVPE OF BUSINESS: l 1 CORPORATION (ARTICU:S OF INCORP,) lJINDMDUAL [ ] PARTNERSHIP (PARTNERSUlP AGREEMNT) MOTHER ~LC [ ] 1'.RUST (COlJRT ORDER) 9) 'KIND OF BUSINESS: (CHECK ALL THAT APPLY) [ ) APARTMENT M_ HOTEUMOTt-:L [ ] BAR/NIGH.TCUJB [ ] PROPE'RTV MGMT. I ] BOARDING/ROOMING [ ] RESTAURANT l ] CONDOMlNIUM 10) # OF RMS/APTS OR SEATJNG: _ _,,~,______ ADDRESS CONTACTPHONENUMBER <t\ 13) RETURN FORM & $2S.00 REGJSTRATION FEE T CITY OF MIAMI BEACWRESORl TAX 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FL 33139 PHONE (305)673-7447 F AX(305)673-7004 NAME ADDRESS , .. cnv STATE ZJPCOO£ PHONE# ( ., } . DRIVER'S LIC# SOC.,SF.C# -DO NOT WJUTE IN 'tH(SSP.½.~- CERTIFICATE # REGISTRATJO.N# MONTHLY FORMER CERTIFICATE# OIG EXHIBIT 10 1330 15TH ST LLC STATE OF FLORIDA LICENSE STATE OF FLORIDADEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION TAP2330379 12/18/2019 TRANSIENT APARTMENT (2003) 1330 15TH STREET LLC1330 15TH STREET LLC IS LICENSED under the provisions of Ch.509 FS. Congratulations! With this license you become one of the nearly one million Floridians licensed by the Department of Business and Professional Regulation. Our professionals and businesses range from architects to yacht brokers, from boxers to barbeque restaurants, and they keep Florida’s economy strong. Every day we work to improve the way we do business in order to serve you better. For information about our services, please log onto www.myfloridalicense.com. There you can find more information about our divisions and the regulations that impact you, subscribe to department newsletters and learn more about the Department’s initiatives. Our mission at the Department is: License Efficiently, Regulate Fairly. We constantly strive to serve you better so that you can serve your customers. Thank you for doing business in Florida,and congratulations on your new license!Expiration date STATE OF FLORIDA DISPLAY AS REQUIRED BY LAWISSUED:SEQ # ISSUED: DETACH HERE DIVISION OF HOTELS AND RESTAURANTS2601 BLAIR STONE ROADTALLAHASSEE FL 32399-1011 850-487-1395 ANANTHAN THANGAVEL1330 15TH STREET LLC1504 BAY RD APT 720MIAMI BEACH FL 33139 L1912180000086 DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATIONDIVISION OF HOTELS AND RESTAURANTS The TRANSIENT APARTMENT (2003)Named below IS LICENSEDUnder the provisions of Chapter 509 FS.Expiration date: OCT 1, 2020 1330 15TH STREET LLC1330 15TH STREET LLC1330 15 STMIAMI BEACH FL 33139 RON DESANTIS, GOVERNOR HALSEY BESHEARS, SECRETARY 12/18/2019 L1912180000086 NBR. OF UNITS: 8 : OCT 1, 2020 . NON- . . TRANSFERABLE . STATE OF FLORIDA DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION LICENSE NUMBER TAP2330379 Ron DeSantis, Governor Melanie S. Griffin, Secretary STATE OF FLORIDA DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION DIVISION OF HOTELS AND RESTAURANTS THE TRANSIENT APARTMENT (2003) HEREIN IS LICENSED UNDER THE PROVISIONS OF CHAPTER 509, FLORIDA STATUTES NBR. OF UNITS: 8 1330 15TH STREET LLC 1330 15TH STREET LLC 1330 15 ST MIAMI BEACH FL 33139 LICENSE NUMBER: TAP2330379 EXPIRATION DATE: OCTOBER 1, 2023 Always verify licenses online at MyFloridaLicense.com Do not alter this document in any form. This is your license. It is unlawful for anyone other than the licensee to use this document.