2003-25427 Reso
RESOLUTION NO. 2003-25427
A RESOLUTION APPROVING A SETTLEMENT REGARDING LIENS ON THE
PROPERTY AT 701 COLLINS AVENUE, MIAMI BEACH, OWNED BY
COLLINS MANOR CONDOMINIUM IN THE AMOUNT OF $137,365.00 BE
WAIVED AND FURTHER AUTHORIZING THE CITY MANAGER AND CITY
CLERK TO EXECUTE ANY AND ALL DOCUMENTS NECESSARY TO
EFFECTUATE THE SETTLEMENT AND LIEN RELEASE.
WHEREAS, the property at 701 Collins Avenue, owned by Collins Manor
Condominium, Inc., has City Code Compliance fines and liens assessed in the amount of
$137,365.00; and
WHEREAS, the owners of the property responsible for the fines and various
liens associated with the property corrected all outstanding violations; and
WHEREAS, the Condominium Board approved a $291,619.73 special
assessment to be equally divided and paid by the 24 condominium owners to correct all
outstanding violations; and
WHEREAS, condominium owners are mostly senior citizens living on a fixed
income and further fines would create additional financial hardship; and
WHEREAS, Collins Manor Condominium, Inc., the owners of the property have
entered into settlement discussions with the City regarding the outstanding liens on the
property in an effort to provide clear title and pay a fine; and
WHEREAS, the Administration seeks to eliminate the inflated fines and liens to
remove the hardship upon the condominium owners;
NOW, THEREFORE BE IT DULY RESOLVED BY THE MAYOR AND
CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA that the
settlement waiving the total amount of outstanding City Code Compliance fines and liens
of $137,365.00 assessed as a result of Special Master Case JCOlO00753, and existing at
the property of 701 Collins Avenue, owned by Collins Manor Condominium, Inc., is
hereby approved; and, further that the City Manager and City Clerk shall be authorized to
execute any and all necessary documents to complete such lien release and settlement
subject to the approval of the Special Master.
PASSED AND ADOPTED THIS 10th DAY OF December ,2003
~
APPROVED AS TO
FORM & LANGUAGE
& FOR EXECUTION
1'2.'"1-03
08lIl
CITY OF MLAMI BlEACH
COMMISSION ITEM SUMMARY
m
Condensed Title:
A Resolution approving a settlement regarding liens on the property at 701 Collins Avenue, Miami Beach,
Florida, owned by Collins Manor Condominium in the amount of $137,365.00, be waived and further
authorizing the City Manager and City Clerk to execute any and all documents necessary to effectuate the
settlement and release the lien.
Issue:
Shall the City Commission approve a settlement regarding liens on the property at 701 Collins Avenue,
Miami Beach, Florida!
Item Summary/Recommendation:
The building located at 701 Collins Avenue is a 24 unit condominium building and the majority of
residents are senior citizens living on a fixed income. In December of 2001, the mostly elderly owners of
the condominium found themselves without a Board of Directors, several board members passed away
and the remaining board members sold their units, and with numerous violations pending with the Fire
Department, Code Compliance Division, Internal Revenue Service, the State of Florida Division of
Corporations, and the State of Florida Division of Condominiums. On November 29, 2001, the
management company of Global Investment Properties, Inc. was hired to oversee the property.
On December 7, 2001, a special assessment was voted on by the residents to reinstate the
condominium association which was currently inactive. Then on February 22, 2002, and again on July
22,2002, a special assessment totaling $291,619.73 was approved by the Board in order to address all
of the violations including a new roof, painting the exterior of the building and to repair the elevator, gates
and intercom/phone entry system. For the above special assessment, each of the twenty-four (24) unit
owners were assessed an individual fee of over $12,000.00. As previously stated, most of the unit
owners are elderly and on a fixed income and the special assessment created a financial burden for the
majority of the residents.
The Administration recommends waiving the entire lien amount. While normally some fine amount would
be retained for the time of non-compliance on the property violations, in light of the status of building
compliance, the unusual circumstances of the governing board and the severe economic hardship that
would result, the Administration is recommending waivinQ the entire lien amount.
Advisory Board Recommendation:
I NIA
Financial Information:
Source of Amount Account Approved
Funds: 1 $0.00
D 2
3
4
Finance Dept. Total
Ci Clerk's Office Le islative Trackin
Vivian P. Guzman
Si n-Offs:
Department Director
City Manager
C7E
DATE /;l-/d-03
CITY OF MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139
www.ci.miami-beach.fl.us
COMMISSION MEMORANDUM
To:
From:
Mayor David Dermer and
Members of the City Commission
Jorge M. Gonzalez \. ~
City Manager d ~ U
A RESOLUTION APPROVING A SETTLEMENT REGARDING LIENS ON
THE PROPERTY AT 701 COLLINS AVENUE, MIAMI BEACH, OWNED BY
COLLINS MANOR CONDOMINIMUM IN THE AMOUNT OF $137,365.00
BE WAIVED AND FURTHER AUTHORIZING THE CITY MANAGER AND
CITY CLERK TO EXECUTE ANY AND ALL DOCUMENTS NECESSARY
TO EFFECTUATE THE SETTLEMENT AND LIEN RELEASE.
Date: December 10, 2003
Subject:
ADMINISTRATION RECOMMENDATION
Adopt the Resolution.
ANALYSIS
The building located at 701 Collins Avenue is a 24 unit condominium building and the
majority of residents are senior citizens living on a fixed income. In December of 2001, the
mostly elderly owners of the condominium found themselves without a Board of Directors
due to several board members passing away and/or selling their units and numerous
violations pending with the Fire Department, Code Compliance Division, Internal Revenue
Service, the State of Florida Division of Corporations, and the State of Florida Division of
Condominiums.
On November 29,2001, the management company of Global Investment Properties, Inc.
was hired to oversee the property. The condominium residents initiated the process of
reinstating a board and two unit owners were appointed board members. These board
members hired a lawyer to investigate filing a petition in order to have a court appointed
trustee handle the association's financial troubles but decided to work with the
management company in order not to incur additional expenses.
On December 7,2001, a special assessment was voted on by the residents to reinstate the
condominium association which was currently inactive. Then on February 22, 2002, and
again on July 22,2002, a special assessment totaling $291,619.73 was approved by the
Board in order to address all of the violations including a new roof, painting the exterior of
the building and to repair the elevator, gates and intercom/phone entry system. For the
above special assessment, each of the twenty-four (24) unit owners were assessed an
individual fee of over $12,000.00. As previously stated, most ofthe unit owners are elderly
and on a fixed income and the special assessment created a financial burden for the
majority of the residents.
Commission Memorandum
December 10, 2003
Page 20f2
Currently, all the necessary repairs and violations have been corrected. The management
company was successful in having the building elevator repaired, replacing the existing
roof, installing security gates to keep the homeless out of the building, correct all life safety
violations and clear all pending cases with other agencies. However, the condominium is
still negotiating a settlement with the Internal Revenue Service.
With respect to the Special Master case, the hearing was first held on June 14, 2001, at
which time the Special Master ordered compliance by August 14, 2001, or a $100.00 a day
fine would commence. On October 11,2001, the condominium association requested more
time and was granted until November 3, 2001, or a fine of $500.00 per day would
commence. An inspection on November 30, 2001, revealed compliance had not been
achieved. On April 11 , 2002, a hearing was held before the Special Master and the Special
Master ordered the fines stopped and the case rescheduled for a report hearing on June
13,2002.
One June 13, 2002, Global Management Properties, Inc. appeared at the Special Master
hearing and gave a report about the special assessment that was being made to obtain the
finances necessary to make all the repairs. The case was reset for another progress report
hearing for October 10, 2002. On October 10, 2002, a progress report was given and the
Special Master ordered the case reset to November 14, 2002. On November 14,2002, the
case was continued to January 9, 2003.
At the January 9, 2003, hearing the Special Master ordered full compliance by April 25,
2003, or a fine of $100.00 a day for non-compliance would commence. Compliance was
achieved on March 25, 2003, at which time the daily fine had accumulated to $137,365.00.
While normally some fine amount would be retained for the time of non-compliance on the
property violations, in light of the status of building compliance, the unusual circumstances
of the governing board and the severe economic hardship that would result, the
Administration is recommending waiving the entire lien amount.
JMG/RCMNG/AC/kck