2009-26990 ResoRESOLUTION NO. zoo9-z699o
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF
THE CITY OF MIAMI BEACH, FLORIDA, APPROVING THE
SETTLEMENT OF CITY LIENS ON THREE PROPERTIES
OWNED/CONTROLLED BY ALAN LIEBERMAN, LOCATED AT
THE FOLLOWING LOCATIONS: 1) 2315 PINETREE DRIVE,
SETTLING AN OUTSTANDING LIEN IN THE AMOUNT OF
$229,715.16 IN CONSIDERATION OF $3,000.00; 2) 318 20T"
STREET, SETTLING EXISTING LIENS IN THE AMOUNT OF
$396,767.44 IN CONSIDERATION OF $1,000.00; AND 3) 635
COLLINS AVENUE, SETTLING EXISTING LIENS IN THE
AMOUNT OF $532,779.56 IN CONSIDERATION OF $9,000.00;
AND FURTHER AUTHORIZING THE CITY MANAGER TO TAKE
SUCH ACTION(S) AND EXECUTE ANY AND ALL NECESSARY
DOCUMENTS TO COMPLETE SUCH LIEN RELEASES AND
SETTLEMENTS.
WHEREAS, the property located at 2315 Pinetree Drive (the Property) has
accumulated liens, in the amount of $229,715.16, plus interest; and
WHEREAS, the Property, is a twenty-two (22) unit apartment building which has
two (2) outstanding Building liens and one (1) Code lien; and
WHEREAS, in a detailed review of this Property and the record history, the
violations are minor in nature and the amount of the liens accumulated clearly exceeds
the appropriate penalty; and
WHEREAS, the Administration recommends that the City Commission approve a
$3,000.00 settlement amount for this Property as a minor penalty more in keeping with
the nature of the violations.
WHEREAS, the property located at 318 20" Street (the Property) has
accumulated liens, in the amount of $396,767.44, dating back to 1999, plus interest; and
WHEREAS, the Property, is a fifty four (54) unit apartment building which has
accumulated one (1) Fire lien, one (1 }Building lien and six (6) Code Compliance liens;
and
WHEREAS, the majority of the violations were incurred prior to the current
owner's acquisition of the property and the violations were minor in nature; and
WHEREAS, the Administration recommends that the City Commission approve a
$1,000.00 settlement amount for this Property as a minor penalty more in keeping with
the nature of the violations.
WHEREAS, the property located at 635 Collins Avenue (the Property) has
accumulated liens in the amount of $532,779.56, plus interest; and
WHEREAS, the Property, owned by Metropole Hotel Apartments LLC is a
twenty four (24) unit apartment hotel which has accumulated three (3} Building liens, two
(2) Code liens which date back to 2001; and
WHEREAS, most of the liens and fine amounts were accumulated while work
was being undertaken on the building that cured the original violations but could not be
closed until a CO was issued which is a flaw in our violation system; and
WHEREAS, in light of the extenuating circumstances, the Administration
recommends that the City Commission approve $9,000.00, as a global settlement on the
property and to recognize a minor penalty for the current owner and the owner has also
agreed as part of this settlement to donate an event at one of his properties for seniors,
in the approximate amount of $10,000.00.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND THE
CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and
City Commission hereby approve the settlement of City Liens on three properties owned
/controlled by Alan Lieberman, located at the following locations: 1) 2315 Pinetree
Drive, settling an outstanding lien in the amount of $229,715.15 in consideration of
S3,000.00; 2) 318 20`h Street, settling existing liens in the amount of $396,767.44 in
consideration of $1,000.00; and 3) 635 Collins Avenue, settling existing liens in the
amount of $532,779.56 in consideration of $9,000.00 and acceptance of a donation up
to the amount of S10,000.00 for a Senior event; and further authorizing the City Manager
to take such action(s) and execute any and all necessary documents to complete such
lien releases and settlements.
PASSED and ADOPTED this 28th day of January , 2009. \
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ay r
ATTEST: r" 1•tattt Herrera Rocuer
CITY CLERK Fobert Parcher
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APPROVED AS TO
FORM & LANGUAGE
& FOR EXECUTION
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COMMISSION ITEM SUMMARY
Condensed Title:
A Resolution Approving The Settlement Of City Liens On Three Properties OwnedlControlled By Alan
Lieberman, Located At The Following Locations: 1) 2315 Pinetree Drive, 2) 318 20th Street; And 3) 635
Collins Avenue.
Ke Intended Outcome Su orted:
Increase resident's satisfaction with level of Code Enforcement.
Supporting Data (Surveys, Environmental Scan, etc.): 61%of residents are satisfied with fairness
and consistent of enforcement of codes and ordinances.
Issue:
Shall the Mayor and City Commission approve Resolutions approving these lien settlements?
Item Summar /Recommendation:
Several liens have been negotiated while the Administration has developed solutions to the question of
outstanding liens in general. Through the referral item on this agenda and planned process
improvements, the overall lien process should begin to improve. It would be anticipated that consistent
with the policy direction the City Commission for the resolution of outstanding liens, future groups or blocks
of liens will also be brought to the Commission's attention to address.
Liens presented for City Commission action involve the following three (3) properties owned by Alan
Lieberman:
1.2315 Pinetree Drive: The twenty two (22) unit apartment building is owned by Tradewind Partners and
has three (3) outstanding liens in the amount of $229,715.16. It is recommended that a more appropriate
penalty for the property is $3,000.00. A settlement in this amount is recommended.
2. 318 20'" Street: This fifty four (54) unit apartment building is owned by Alan Lieberman and has
accumulated liens in the amount of $396,767.44 dating back to 1999. The value of the lien far exceeds an
appropriate penalty for the in(raclion which is minor. As the majority of violations on this property were
incurred prior to the current owner's acquisition of the property and the violations were minor in nature, it is
recommended that the lien be settled in consideration in the amount of $1,000.00.
3.635 Collins Avenue: This twenty four (24) unit apartment hotel is owned by Metropole Hotel Apartments
LLC and has accumulated liens in the amount of $532,779.56. In light of extenuating circumstances, it is
recommended that these liens, while significant in its total, be settled in the amount of S9,000.00, as a
global settlement on the property and to recognize a minor penalty for the current owner. The owner has
also agreed as part of the settlement to donate an event at one of his properties for seniors, in the
approximate amount of S10,000.
The total settlement for these three properties is $13,000. Adopt the Resolution.
Adviso Board Recommendation:
Financiallnformation: __
Source of Amount Account
Funds:
OBPI Total
- -- -
Financial Im act Summa
City Clerk's Office Le islative Trackin
Robert C. Middaugh, Assistant City Manager
Si n-Offs:
Department Director Assistant City Manager Manager
RCM JMG
T:'•AGENDA'.2009•Januap•28`.ConsenP•A4iscpropert~nienselriemenlsum1-28-092nd.doc ~
m Nl l AM I B EAC H AGENDA ITEM G?a
~ DATE ~'a8-~9
m MIAMIBEACH
City of Miami Beach, ' 79~~ ~orvenion Certer Crive. Mi~m~. Bsach, =lo•ida 33139. w~wemiomibe~chfl.gov
COMMISSION MEMORANDUM
ro: Mayor Matti Herrera Bower and Members of the City Commission
tROM: Jorge M. Gonzalez, City Manager
DATE January 28, 2009
C_
SUBJECT: A RESOLUTION OF THE MAYOR ND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, APPROVING THE SETTLEMENT OF CITY LIENS ON
THREE PROPERTIES OWNED/CONTROLLED BY ALAN LIEBERMAN,
LOCATED AT THE FOLLOWING LOCATIONS: 1) 2315 PINETREE DRIVE,
SETTLING AN OUTSTANDING LIEN IN THE AMOUNT OF $229,715.16 IN
CONSIDERATION OF $3,000.00; 2) 318 20T" STREET, SETTLING EXISTING
LIENS IN THE AMOUNT OF $396,767.44 IN CONSIDERATION OF $1,000.00;
AND 3) 635 COLLINS AVENUE, SETTLING EXISTING LIENS IN THE AMOUNT
$532,779.56 IN CONSIDERATION OF $9,000.00; AND FURTHER
AUTHORIZING THE CITY MANAGER TO TAKE SUCH ACTION(S) AND
EXECUTE ANY AND ALL NECESSARY DOCUMENTS TO COMPLETE SUCH
LIEN RELEASES AND SETTLEMENTS.
Adopt the Resolution.
ANALYSIS
The City Administration has been attempting over the years to find a simple and effective
method with which to deal both with the lien process and the lien process outcomes. The
lien process involves the enforcement departments including the Fire Department, the
Building Department, the Code Compliance Division, as well as the Licensing and Tax
Collection Section of the Finance Department, who handles Utility Billing. The process also
involves the Office of the Special Master, as well as the City Attorney and at times the City
Administration in general. While a large number of cases in each of the enforcement
departments are successfully resolved each year and compliance is achieved timely, there
are a number that enter into the Special Master process and ultimately result in a lien. As a
result of the number of entities involved, noticing issues and follow-up issues, the process
improvement has not yet been achieved.
In a separate referral item on the January 28, 2009 agenda, a brief outline for administrative
steps to address liens is included, together with a request for Ciry Commission policy
direction to help improve the lien process.
While this administrative and policy consideration has taken shape, presenting liens for City
Commission action was temporarily suspended. The Administration felt that it was important
to be able to inform the City Commission how a larger process problem could be resolved
before asking for specific approvals from the City Commission. While not fully developed,
the referral item outlines several improvements and a direction established to address liens.
It would be anticipated that consistentwith whateverthe policy direction the Ciry Commission
gives for the resolution of outstanding liens, future groups or blocks of liens will also be
brought to the Commission's attention to address as expeditiously as can be done.
Liens presented for City Commission action involve the following three (3) properties owned
by Alan Lieberman:
1. 2315 Pinetree Drive
The twenty two (22) unit apartment building is owned by Tradewind Partners and has three
(3) outstanding liens in the amount of $229,715.16. There are two (2) Building liens -one
(1) lien for failure to timely complete a forty (40) year Building Recertification in the amount of
approximately $8,500 and one (1) lien for $130,600 for failing to obtain a Building Permit
before completing work on an exterior planter. The remaining lien is a Code Compliance
violation for several property maintenance items in the amount of approximately $90,400. In
the detailed review of this property and its records, it is apparent that the violations in total
are minor in nature and the amount of liens accumulated clearly exceeds the appropriate
penalty to be paid by the property owner. The Building violation for the forty {40) year
Building Recertification was for a sixteen (16) day period ofnon-compliance and the planter
violation was for not obtaining a building permit before an exterior planter was demolished.
There was an eleven (11) month period of non-compliance for the property maintenance
issues associated with the Code lien associated with items such as painting the building,
window repair and landscape maintenance. It is recommended that a more appropriate
penalty for the property is $3,000. A settlement in this amount is recommended.
2. 318 20'" Street
This fifty four (54) unit apartment building is owned by Alan Lieberman and has accumulated
liens in the amount of $396,767.44 dating back to 1999. There is one (1) Fire lien: one (1)
Building lien and six (6) Code Compliance liens on the property. The Fire lien and four {4) of
the Code Compliance liens in the approximate amount of $236,000 were incurred by the
previous owner who subsequently lost the property. The liens were assigned to the current
owner, who had the role of lender initially and then was the designated receiver for the
property in 1999 and then subsequently took title to the property. The violations were not
created by the current owner and became irrelevant when the current owner under took the
substantial renovation of the property. The largest Code violation is in the approximate value
of $160,000 and was issued for failure to secure a fence permit prior to construction of
fencing around the exterior of the property. The fence was placed on the property prior to
the renovation as a required measure to secure the property during the renovation process.
Records indicate that the fence was only out ofnon-compliance for approximately a two (2)
month period. As such the value of the lien far exceeds an appropriate penalty for the
infraction which is minor. As the majority of violations on this property occurred prior to the
current owner's acquisition of the property and the owner subsequently cured through
renovation of the property and the violations were minor in nature, it is recommended that
the lien be settled in consideration in the amount of $1,000.
3. 635 Collins Avenue
This twenty four (24) unit apartment hotel is owned by Metropole Hotel Apartments LLC and
has accumulated liens in the amount of $532,779.56. The liens date back to 2001 and
include three (3) Building violations and two (2) Code Compliance liens. A Code Compliance
lien in the amount of approximately $129.000 for operating an ATM without an Occupational
License was timely complied and as such no fine should be recorded. A violation was found
but the license secured before the date of compliance ordered by the Special Master. A
Building lien in the approximate amount of $30,200 for failure to obtain a Building permit
before commencing work had timely compliance: however, the violation would not be
removed or could not be cured until such time as the renovation work on the property was
completed. The violation was cured when a building permit was obtained in a timely fashion;
however, fines ran until a CO was issued. As such no fine should accrue to the property on
this lien. A Building violation in the amount of approximately $102.000 was issued for a
variety of elevator violations to the previous owner. The fine was imposed and running
before the current owner acquired the property and subsequent to the acquisition, the
current property owner replaced the elevator in question as part of the property renovation.
The elevator violations, in spite of the elevator being replaced, could not be closed until the
Certificate of Occupancy was received on the property in August 2007. As such it is
inappropriate to have fines recorded against this property owner for this violation. The
remaining significant lien on this property is a 2004 lien in the amount of approximately
$266,000 written for failure to obtain the required forty (40) year Building Recertification.
The violation was issued to the previous owner and as soon as the current owner acquired
the property in 2006, work was undertaken to begin renovation of the property. The Building
Recertification violation could not be closed until such time as the property received the
Certificate of Occupancy which as indicated was in August 2007. The remaining lien on the
property is a Code lien in the amount of $4,900 that was written for failure to permit signs.
The signs were erected by a previous tenant and under the previous owner.
In light of extenuating circumstances, it is recommended that these liens, while significant in
total, be settled in the amount of $9,000, as a global settlement on the property and to
recognize a minor penalty for the current owner. Most of the lien and fine amounts were
accumulated while work was being undertaken on the building that cured the original
violations but could not be closed until a CO was issued. This is a flaw in our violation
system that will be addressed in subsequent lien process improvements. The owner has
also agreed as part of the settlement to donate an event at one of his properties for seniors,
in the approximate amount of $10,000.
JMGIRCM1sam
T.WGENDAt2009~,1anuary 281ConsentiMiscproperyliensetllemenlscommemo1-28-09 2nd doc