2012-27983 Reso RESOLUTION NO. 2012-27983
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF
THE CITY OF MIAMI BEACH, FLORIDA, APPROVING A
SETTLEMENT FOR $13,500 IN EXCHANGE FOR A RELEASE
OF A CITY LIEN ON PROPERTY OWNED BY AB
INTERNATIONAL HOLDINGS LLC, LOCATED AT 850 W 40TH
STREET, MIAMI BEACH, FLORIDA, IN THE ORIGINAL AMOUNT
OF $29,400, AND FURTHER AUTHORIZING THE CITY
MANAGER TO TAKE SUCH ACTION AND EXECUTE ANY AND
ALL NECESSARY DOCUMENTS TO COMPLETE SUCH
RELEASE OF LIEN AND SETTLEMENT.
a
WHEREAS, a property owned by AB International Holdings LLC (the
"Property Owner") located at 850 West 40th Street, Miami Beach, Florida (the
"Property") has accumulated fines, in the amount of$29,400; and
WHEREAS, the Property has an outstanding lien for the installation of a
non-load bearing partition wall in the common area without a permit; and
WHEREAS, upon discovering that a lien had been recorded against the
Property, the Property Owner diligently obtained a Permit and corrected the
violation by removing the non-load bearing partition wall in the common area;
and
WHEREAS, a Petition for Writ of Certiorari has been filed by the Property
Owner to challenge the Special Master's Mitigation Order rendered on April 26,
2012; and
WHEREAS, in review of the history and nature of the violation and the
calculation of the fine, the amount of the fine accumulated exceeds the
appropriate penalty; and
WHEREAS, the payment of $29,400 would be a financial burden on the
economic stability of the Property Owner; and
WHEREAS, in light of the extenuating circumstances, the Administration
recommends that the City Commission approve a $13,500 settlement amount for
the Property as a penalty more in keeping with the nature of the violation.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND
CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the
Mayor and City Commission hereby approve a settlement for $13,500 in
exchange for a release of a City lien on property owned by AB International
Holdings LLC, located at 850 W 40th Street, Miami Beach, Florida, in the original
amount of $29,400, and further authorizing the City Manager to take such action
and execute any and all necessary documents to complete such lien release and
settlement.
PASSED and ADOPTED this JoNk-11day of September, 2012.
MAY
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CITY CLERK B DROVED AS ,,*
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COMMISSION ITEM SUMMARY
Condensed Title:
Approving a settlement for$13,500 in exchange for a release of a City lien on property
owned by AB International Holdings LLC, located at 850 w 401h street, Miami Beach, Florida,
in the original amount of$29,400, and further authorizing the City Manager to take such
action and execute any and all necessary documents to complete such release of lien and
settlement.
Key Intended Outcome Supported:
Increase resident's satisfaction with level of Building Enforcement.
Supporting Data:
(Surveys, Environmental Scan, etc.): 61% of residents are satisfied with fairness and
consistency of enforcement of codes and ordinances.
Issue:
Shall the Mayor and City Commission approve Resolutions approving this Settlement
A reement?
Item Summa /Recommendation:
On November 8, 2008, a Notice of Violation for installing a non-load bearing partition wall in the
common elements of the condominium without a permit was issued to the property owner, AB
International Holdings LLC. On January 27, 2011 a Special Master's hearing was held to stop
the fines and set a progress report for August 25, 2011. The violation was cured and the Affidavit
of Compliance was filed on May 19, 2011.
Once the Property was in compliance, the Property Owner filed a request for mitigation. At the
mitigation hearing, Special Master Kaplan reduced the fine from $181,168.96 to $29,400, if and
only if the fines were paid by February 8, 2012. The Property Owner prior to the due date filed a
Motion for Enlargement of Time to pay the fine or in the alternative to adjust the fine based on an
error in the calculation of the fine (the "Motion".) The Property Owner cited "economic hardship"
and "negative cash flow" as the basis for the Motion. According to the Property Owner's
calculation, the daily fine should have run from October, 2010 through January 27, 2011 (90 days
at $150.00 per day for a total of $13,500.) This motion was denied and the Property Owner filed
an appeal.
As a result of the Special Master's Ruling members of the Finance Department, as well as a
representative from the City Attorney's Office, met with the Property Owner and its counsel to
discuss settling the Appeal and the underlying lien. The parties agree that it is in everyone best
interest to avoid the expense, delay and uncertainty of the appellate process, and further agree
that it is in their respective best interest to resolve.the Appeal in the amount of$13,500.
Advisory Board Recommendation:
Financial Information:
Source of Amount Account
Funds:
Financial Impact Summary:
City Clerk's Office Legislative Tracking:
Sign-Offs:
Department Assistan ity Manager City Manager
ector
GPE PDW/JS KGB
AGENDA STEM C 7 E
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City of Miami Beach, 1700 Convention Center Drive,Miami Beach, Florida 33139,www.miamibeachfl.gov
COMMISSION MEMORANDUM
TO: Mayor Matti Herrera Bower and Members of the City Commission
FROM: Kathie G. Brooks, Interim City Manager
DATE: September 12, 2012
SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF
THE CITY OF MIAMI BEACH, FLORIDA, APPROVING A
SETTLEMENT FOR$13,500 IN EXCHANGE FOR A RELEASE OF A
CITY LIEN ON PROPERTY OWNED BY AB INTERNATIONAL
HOLDINGS LLC, LOCATED AT 850 W 40TH STREET, MIAMI
BEACH, FLORIDA, IN THE ORIGINAL AMOUNT OF $29,400, AND
FURTHER AUTHORIZING THE CITY MANAGER TO TAKE SUCH
ACTION AND EXECUTE ANY AND ALL NECESSARY
DOCUMENTS TO COMPLETE SUCH RELEASE OF LIEN AND
SETTLEMENT.
ADMINISTRATION RECOMMENDATION
Adopt the Resolution as described.
ANALYSIS
On November 8, 2008, a Notice of Violation for installing a non-load bearing partition wall
in the common elements of the condominium without a permit was issued to the property
owner, AB International Holdings LLC (the "Property Owner") in violation of Miami Beach
City Code Chapter 14, sections 14-31 and 14-33.
The Property Owner began the Special Master Process and contended that it did not
receive proper notice of the initial hearing and consequently was not aware that a fine was
accruing and that a lien had been recorded against the Property. On October 6, 2010, the
Property Owner filed a request to stop fines. The hearing was scheduled for January 27,
2011.
At the January 27th hearing, the Special Master stopped the fines and scheduled a
progress report for August 25, 2011. However, the Order did not reflect that the fines had
stopped and the fines continued to accrue. Prior to the progress report hearing, the
Property Owner obtained the permits, and removed the non-load bearing partition wall.
The violation was cured and the Affidavit of Compliance was filed on May 19, 2011.
Once the Property was in compliance, the Property Owner timely filed a request for
mitigation. At the mitigation hearing, Special Master Kaplan reduced the fine from
$181,168.96 to $29,400, if and only if the fines were paid by February 8, 2012.
The Property Owner prior to the due date filed a Motion for Enlargement of Time to pay the
fine or in the alternative to adjust the fine based on an error in the calculation of the fine
(the"Motion".) The Property Owner cited "economic hardship"and "negative cash flow"as
the basis for the Motion. According to the Property Owner's calculation, the daily fine
should have run from October, 2010 through January 27, 2011 (90 days at $150.00 per
day for a total of$13,500.)
On April 26, 2012, Special Master Kaplan heard the Motion, and after hearing testimony
from the Property Owner, agreed that there was an error in the reduction of the fine to
$29,400, afforded the Property Owner until January 31, 2013 to make this payment, but
refused to reduce the fine to $13,500, as he considered such request to be a "re-hearing"
rather than a request for Relief from Order.
The Property Owner timely filed an Appeal to the Appellate Division of the Circuit Court in
and for Miami-Dade County, Florida (the "Appeal") to challenge the Order dated April 26, '
2012.
As a result of the Special Master's Ruling members of the Finance Department, as well as
a representative from the City Attorney's Office, met with the Property Owner and its
counsel to discuss settling the Appeal and the underlying lien. The parties agree that it is
in everyone best interest to avoid the expense, delay and uncertainty of the appellate
process, and further agree that it is in their respective best interest to resolve the Appeal in
the amount of$13,500.
As a result of the above mentioned resolution the City's lien recorded in Official Records
Book 26712 at Page 1666 in the Public Records of Miami-Dade County, Florida is hereby
settled in the amount of$13,500, receipt of which is hereby acknowledged.
The Property Owner warrants that the Property is in compliance with City codes.
The Appeal styled AB International Holdings LLC v. City of Miami Beach pending in the
Appellate Division of the Circuit Court in the Eleventh Judicial Circuit in and for Miami-Dade
County, Case Number: No. 12-234 AP; shall be dismissed forthwith, with the parties to
bear their respective attorneys' fees and costs.
The Clerk of the Special Master is hereby authorized to satisfy the above reference lien.
ADMINISTRATION RECOMMENDATION
Adopt the Resolution authorizing the City Manager to execute any and all documents
necessary to complete such partial lien release and settlement.
850 w 40th st commission memo 2
+ t
SETTLEMENT AND RELEASE OF LIEN AUTHORIZATION
PROPERTY ADDRESS: 850 W 40th Street, Miami Beach, Florida
PROPERTY OWNER: AB International Holdings LLC
CASE NUMBER: JB08000381
NATURE OF LIEN: Building Violation
LIEN AMOUNT: $29,400, if paid on or before January 31, 2013
LEGAL DESCRIPTION: Folio Number: 02-322-032-0010. Said property being
known as 850 W 40 Street, Miami Beach, Florida:
GILLER APARTMENTS CONDO UNIT '850 UNDIV
37.5% INT IN COMMON ELEMENTS OFF REC
25226-1557.
Pursuant to the authority vested in the City Charter section 4.02 and section 30.74(h) of
the Code of the City of Miami Beach, Florida to enter into a Settlement Agreement for a
lien against property filed by the City of Miami Beach, this Settlement Agreement is
entered into with AB International Holdings LLC, the property owner at 850 W 40TH
Street, Miami Beach, Florida, to settle and provide for the release of the lien as
indicated herein.
The City Clerk of the City of Miami Beach is hereby directed and authorized to release
the lien associated with the above referenced case number, which is imposed upon the
real property located at 850 W 40th Street, Miami Beach, Florida, pursuant to conditions
herein and as described herein.
Description of Violation:
On November 8, 2008, a Notice of Violation for installing a non-load bearing partition
wall in the common elements of the condominium without a permit was issued to the
property owner, AB International Holdings LLC (the "Property Owner") in violation of
Miami Beach City Code Chapter 14, sections 14-31 and 14-33.
Special Master Hearings:
The Property Owner contended that it did not receive proper notice of the initial hearing
and consequently was not aware that a fine was accruing and that a lien had been
recorded against the Property. Upon discovering that a daily fine was accruing and a
lien had been recorded against the Property, the Property Owner filed a request to stop
fines. The request to stop fines is dated October 6, 2010 and the Clerk of the Special
Master scheduled the hearing for January 27, 2011. At the hearing on January 27,
2011, the Special Master scheduled a progress report for August 25, 2011. Implicit in
the Special Master's ruling was that the fines should have stopped. However, the fines
did not stop and continued to accrue. The Property Owner diligently obtained the
permits, and removed the non-load bearing partition wall. The violation was cured prior
to the progress report hearing. The Affidavit of Compliance was filed on May 19, 2011.
Once the Property was in compliance, the Property Owner timely filed a request for
mitigation. At the mitigation hearing, Special Master Kaplan reduced the fine from
$181,168.96 to $29,400, if and only if the fines were paid by February 8, 2012.
The Property Owner prior to the due date filed a Motion for Enlargement of Time to pay
the fine or in the alternative to adjust the fine based on an error in the calculation of the
fine (the "Motion".) The Property Owner cited "economic hardship" and "negative cash
flow" as the basis for the Motion. According to the Property Owner's calculation, the
daily fine should have run from October, 2010 through January 27, 2011 (90 days at
$150.00 per day for a total of$13,500.)
On April 26, 2012, Special Master Kaplan heard the Motion, and after hearing testimony
from the Property Owner, agreed that there was an error in the reduction of the fine to
$24,900, afforded the Property Owner until January 31, 2013 to make this payment, but
refused to reduce the fine to $13,500, as he considered such request to be a re-
hearing" rather than a request for Relief from Order.
The Property Owner timely filed an Appeal to the Appellate Division of the Circuit Court
in and for Miami-Dade County, Florida (the "Appeal") to challenge the Order dated April
26, 2012.
Settlement Negotiations:
Members of the Finance Department, as well as a representative from the City
Attorney's Office, met with the Property Owner and its counsel to discuss settling the
Appeal and the underlying lien. The parties agree that it is in everyone best interest to
avoid the expense, delay and uncertainty of the appellate process, and further agree
that it is in their respective best interest to resolve the Appeal in the amount of$13,500.
Conditions of Settlement:
The City's lien recorded in Official Records Book 26712 at Page 1666 in the Public
Records of Miami-Dade County, Florida is hereby settled in the amount of $13,500,
receipt of which is hereby acknowledged.
The Property Owner warrants that the Property is in compliance with City codes.
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The Appeal styled AB International Holdings LLC v. City of Miami Beach pending in the
Appellate Division of the Circuit Court in the Eleventh Judicial Circuit in and for Miami-
Dade County, Case Number:
No. 12-234 AP;
shall be dismissed forthwith, with the parties to bear their respective attorneys' fees and
costs.
The Clerk of the Special Master is hereby authorized to satisfy the above reference lien.
Kathie G. Brooks, Date
Interim City Manager
AGREEMENT TO SETTLEMENT AND RELEASE AUTHORIZATION
I have read this Settlement and Release of Lien Authorization, regarding 840 W. 50th
Street, Miami Beach, Florida, Special Master Case Number set forth above, and I
understand and agree to its terms and have executed same for its purposes herein
stated.
Accepted by:
AB International Holdings LLC Date
By: Jean Jacques Aboulker, Manager
STATE OF FLORIDA )
COUNTY OF MIAMI-DADE )
The foregoing instrument was acknowledged before me this day
of August, 2012 by Jean Jacques Aboulker, as manager of A B International Holdings
LLC, who has produced her/his driver's license as identification and who did/did not
take an oath.
My commission expires:
Notary Public, State of Florida
Print name
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