2008-26761 ResoRESOLUTION NO. 2008-26761
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF
THE CITY OF MIAMI BEACH, FLORIDA, APPROVING THE
SETTLEMENT OF CITY LIENS ON THE REAL PROPERTY
LOCATED AT 524 OCEAN DRIVE, MIAMI BEACH, FLORIDA,
RESULTING FROM RESORT TAX LIENS, CITY BILLS, SPECIAL
MASTER CASES, AND OTHER CODE VIOLATIONS (SEE
ATTACHMENT "A"), AND PROVIDING THAT SAID LIENS, IN
THE AMOUNT OF $344,544.33 PLUS INTEREST, BE SETTLED
FOR THE AMOUNT OF $85,000.00; AND FURTHER
AUTHORIZING THE CITY MANAGER TO TAKE SUCH
ACTION(S) AND EXECUTE ANY AND ALL NECESSARY
DOCUMENTS TO COMPLETE SUCH LIEN RELEASES AND
SETTLEMENT.
WHEREAS, the property located at 524 Ocean Drive (the Property) has
accumulated liens, as set forth in Attachment "A" hereto, in the amount of $344,544.33,
plus interest; and
WHEREAS, the Property, formerly operated as Teasers, was cited for a number
of building violations and/or City bills over the period of time from 2000 to 2005; and
WHEREAS, the Property owner and operator cited for the violations have long
since divested their interest in the Property; and
WHEREAS, the current Property owner assumed responsibility for all
outstanding liens on the Property; and
WHEREAS, the Administration recommends that the City Commission approve a
settlement, of the aforestated liens (as also set forth in Attachment "A"), in the amount of
$85,000.00.
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 and authorize that the City liens on the real property
located at 524 Ocean Drive, Miami Beach, Florida, resulting from Resort Tax liens, City
bills, Special Master cases and other Code violations (See Attachment "A"), in the
amount of $344,544,333 plus interest, be settled for the amount of $85,000.00; and
further authorize the City Manager to take such action(s) and execute any and all
necessary documents to complete such lien releases and settlement.
PASSED and ADOPTED this 13bb'ilay of February , 2008.
ayo
ATTE~~'f:. ~ m~G~
CITY CLERK Robert Parcher
F:\cmgr\$ALL\BOB\5240cean Drliensettlementreso2.doc
Matti H. Bouvet-.
APPROVED AS TO
FORM & LANGUAGE:
COMMISSION ITEM SUMMARY
Condensed Title:
A Resolution approving the settlement of City liens at 524 Ocean Drive providing that the liens in the
amount of $344 544 33 plus interest be settled for the amount of $85 000.00.
Ke Intended Outcome Su orted:
Increase resident satisfaction with the level of Code Enforcement.
Supporting Data (Surveys, Environmental Scan, etc.): 61 % of residents are either very satisfied
or satisfied with the fairness and consistency of the enforcement of code and ordinances in their
nei hborhood.
Issue:
Shall the City Commission approve the settlement of City liens on real property at 524 Ocean Drive?
item summary~icecommenaacion:
The property at 524 Ocean Drive formerly operated as Teasers was cited for a number of violations and/or
City Bills over the period of time from 2000 to the latest fine in 2006. Current fines and liens on the
property total $344,544.33. The two most substantial items are liens filed as a result of building violations in
the amount of $262,200.00 and $54,192.08. The $28,152.25 balance of fines and liens is an assortment of
predominantly illegal flyer and trash violations.The larger of the two liens, $262,200.00 amount relates to
elevator violations in 2004. The other significant lien on the property is also a building violation dating from
2005 for failure to obtain a CO for an expired TCO on the property.
The owner of the property that leased the building to Teasers was Shirit Development, Inc. The Teaser '
tenant went out of business in 2004 and Shirit Development sold in 2006 to Alessandra Investments LLC
which has operated since July 2007, a twelve room hotel by the Hilton Management Company.
In settlement conversations with the owners representative it was confirmed that the current owner,
Alessandra Investments LLC did not make provisions to address the outstanding fines and liens at the time
of purchase of the property from Shirit Development. As such, they realized that as the current ownerthey
have an obligation to settle these issues with the City.
As the problem tenant and owner have long since divested their interest in the property, discussions with
the owners representative centered on finding a number which recognized a penalty for previous actions
was appropriate yet not overly burden the new ownerwhich has not had the problematic operating history
of its predecessors. It was agreed with the owner's representative that a settlement of $85,000.00 in full
against the outstanding balance of $344,544.33 would be appropriate. This settlement amount represents
approximately 25% of the total outstanding fines and falls within the consistent range for other settlements
previously negotiated by the City for this nature and severity of the violations.
This item was originally on the January City Commission agenda for action and was withdrawn to allow a
higher settlement amount to be negotiated. The negotiation was successful ant the settlement amount
increased from the original $48,000 to $85,000. Approval of the settlement between 524 Ocean Drive and
its owners, Alessandra Investments LLC is recommended in the amount of $85,000.00.
Cin~nrial Infnrm~finn
Source of
Funds: Amount Account
OBPI Total
Financial Impact Summary: NA
islative
~~
AGENDA ITEM ~`"
DATE 2-~3-0$
MiANII BEACH
m- MIAMIBEACH
City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, vvww.miamibeachfl.gov
COMMISSION MEMORANDUM
TO: Mayor Matti H. Bower and Members of the Commission ,
FROM: Jorge M. Gonzalez, City Mana Z..-
DATE: February 13, 2008
SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, APPROVING THE SETTLEMENT OF CITY LIENS
ON REAL PROPERTY LOCATED AT 524 OCEAN DRIVE, MIAMI BEACH,
FLORIDA, RESULTING FROM RESORT TAX LIENS, CITY BILLS, SPECIAL
MASTER CASES, AND OTHER CODE VIOLATIONS (SEE ATTACHMENT A)
AND PROVIDING THAT SAID LIENS, IN THE AMOUNT OF $344,544.33 PLUS
INTEREST, BE SETTLED FOR THE AMOUNT OF $85,000.00; AND FURTHER
AUTHORIZING THE CITY MANAGER TO TAKE SUCH ACTION(S) AND
EXECUTE ANY AND ALL NECESSARY DOCUMENTS TO COMPLETE SUCH
LIEN RELEASES AND SETTLEMENT.
Adopt the Resolution
ANALYSIS
This item was on the City Commission January 13, 2008 agenda for action, and was
withdrawn to allow the Administration to pursue a higher settlement amount for the lien in
question. Those negotiations have been completed and the settlement amount increased
significantly as a result.
The property at 524 Ocean Drive formerly operated as Teasers was cited for a number of
violations andlor City Bills over the period of time from 2000 to the latest fine in 2006.
Current fines and liens on the property total $344,544.33. The two most substantial items
are liens filed as a result of building violations in the amount of $262,200.00 and $54,192.08.
The $28,152.25 balance of fines and liens is an assortment of predominantly illegal flyer and
trash violations (see attachment A for full list).
The largest lien in the amount of $262,200.00 relates to elevator violations in 2004. The
violations were for two signs not posted in the elevator and asign-off on the battery back-up
operation not properly addressed. Compliance with the elevator violations was
accomplished in late 2006. The other significant lien on the property is also a building
violation dating from 2005 for failure to obtain a CO for an expired TCO on the property.
Compliance on this issue was achieved in late 2005.
The owner of the property that leased the building to Teasers was Shirit Development, Inc.
The Teaser tenant went out of business in 2004 and Shirit Development sold in 2006 to
Alessandra Investments LLC which has operated since July 2007, a twelve room hotel by
the Hilton Management Company.
All of the fines and outstanding liens were associated with the short period of time which
Teaser's was the tenant and Shirit Development was the owner of the property at 524 Ocean
Drive.
In settlement conversations with the owners representative itwas confirmed that the current
owner, Alessandra Investments LLC did not make provisions to address the outstanding
fines and liens at the time of purchase of the property from Shirit Development. The
Administration has reviewed the property purchase and sale agreement document and
verified that the transfer was accomplished by a transfer of interest in the property in which
one partner assumed the ownership responsibility of the other partner for $1.00. No other
cash was exchanged in the transaction. As such, they realized that as the current owner
they have an obligation to settle these issues with the City.
As the problem tenant and owner have long since divested their interest in the property,
discussions with the present owner's representative centered on finding a dollar amount
which recognized a penalty for previous actions which were appropriate yet not overly
burden the new owner which has not had the problematic operating history of its
predecessors. It was agreed with the owner's representative that a settlement of
$85,000.00 'against the outstanding balance of $344,544.33 would be appropriate. This
settlement amount represents approximately 25% of the total outstanding fines.
In the January agenda item the settlement amount was originally $48,000, thus the desired
increase for the settlement has been accomplished. Approval of the settlement between
524 Ocean Drive and its owners, Alessandra Investments LLC is recommended in the
amount of $85,000.00.
JMG\RCM\sam
F:\cmgr\$ALL\BOB\5240cean Drliensettlementcommemo2.doc
Attachment
2
ATTACHMENT A
524 OCEAN DRIVE, MIAMI BEACH, FLORIDA
RESORT TAX LIENS #1592816 $ 21. 19
#1744216 $ 5,281. 61
CITY BILLS CB0000459 $ 5,241. 68
CB0000787 $ 101. 50
CB0001167 $ 691. 10
CB0001212 $ 604. 70
CB00001741 $ 230. 02
CB00001742 $ 114. 98
CB00003080 $ 2,119. 44
CB0000138 $ 124. 98
CB88015 $ 585. 27
CB88020 $ 521. 49
CB00004397 $ 3,668. 32
SPECIAL MASTER
CASES JB04000337 $ 262,200.00
JB05000154 $ 54,192.08
JC04000970 $ 75.00
JC05000325 $ 1,800.48
JC05000411 $ 682.49
JC05000553 $ 2,575.00
JF06000220 $ 75.00
CODE VIOLATIONS CE05004105 $ 1,638.00
CE05004106 $ 400.00
CE05004647 $ 1,500.00
CE06006283 $ 100.00
TOTAL AMOUNT OF LIENS & FINES $ 344,544.33
ON 524 OCEAN DRIVE
F:kmgr\$ALUBOB\5240ceanDdiensenlemtncommemo.docATTACHMENT A.doc
~~o~-~~~~'~
SE'I'TL.EMENT A~tD RELEASE OF LIEN{S} ALITRORI~ATION
PROPERTY ADDRESS: 524 Ocean Drive, Miami Beach, Florida '
PROPERTY OWNER: Alessandra Ir3vestrnents, L;LC
CASE NUMBER{S): See Resolution IVo. 2008-26761 ~ Attachment A
NATURE OF LIES{S}: Building, Code, ~ Fire Violations, Resort Tax Liens, City
3il~s and other Code Violations
LIEN AMOUNT(S): $334,544.33
LEGAL DESCRIPTION: FRIEDM.AN & COPES SUB PB 4-83 BEG 1.38FTNE OF
NE COR f,~1T 3 W 133.SFT SWSOFT E133.4~FT NE50
FT TO P4~B ~,ESS ELY 1 SFT BLK 2 LC7T SIDE 51.000
X 11$ OR 14966-2017 0401 1
Pursuant to the autharity vested in the City Charter to enter into Settlement Agreements
for liens against property filed by dxe City of Miami Beach, this Sottloment AgreeYnent is
entered into with Alessandra Investments, LLC., the property owner at 524 acean Drive,
Miami Beach, l~lorida, to set#le and provide for the release of the lien{s} as indicated
herein.
The City Clerk of the City of Miami Beach is hereby directed and authorized to release
the above referenced lien{s) imposed upon the real property at 524 Ocean Iarive, Miami
Beach, Florida, pursuant to conditions herein and as described herein. ,
Canditiontsl cif Settlement:
This lien in the amount afS344,544.33 is settled in consideration of receipt of 583,000.00
receipt of which is hereby acknowledged.
The property awner warrants that subject property is incompliance with City Codes.
urge . Gonna ~. _
City Manager
Robert C. Mi lough
Assistant Ci .'Manager
~ I3r ~Z~$
Date
3 -.~ ~ - o ~
Date
AGREEMENT TO SETTLEMENT AND RELEASE AUTHORIZATION
1 have read this SETTLEMENT AND RELEASE OF LIEN(S) AUTHORIZATION,
regarding 524 Ocean Drive, Miami Beach, Florida, for Special Master Liens and tines
described in Resolution No. 2008-26761 and Attachment A (attached) and lien amount of
$344,544.33 and I understand and agree to its terms and have executed same for its
purposes herein stated.
Accepted by:
LLC, Property Owner
STATE OF FLORIDA
COUNTY OF MIAMI-DADE
SS
The foregoing instrument was acknowledged before me this r-~~~~ay of
~/~ _~ 2008, by who has produced her/his
driver's license as identification and who did/did not take an oath.
~ ~' <<,
MY COMMISSION EXPIRES: /~_ OTARY PUBLIC, STATE OF FLORIDA
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RINT NAME
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ATTACHMENT A
524 OCEAN DRIVE, MIAMI BEACH, FLORIDA
. 3~' ~
RESORT TAX LIENS #1592816 $ 21.19 r ~ ~s
#1744216 $ S,281.b1
.}f
~ ~,,
CITY BILLS C$a0004S9 $ 5,241.68
3
csaaao~57 $ 1o1.5a ~0
CBOOa l l f>"~ ~ 691. ~ a ~,
~ ~
CBOOO 1212 $ ba4.7a ~
CB00041741 $ 230.a2
CB00001742 $ 114.38 .~
cBaaaa3asa $ 2,119.44 ';
CB+L~f14138 ~ 124.95 ~~ .
CB88alS $ 585.27 '~
CB8802a $ 521.49
CBa0004397 $ 3,6b8.32 `~
~ `
'
SPECIAL MASTER '
~.
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CASES J804a00337 $ 262,200.00 ~ '
JBa5000154
$
S4, 192.a8
__ __, G'j
- j
_ -- _ -- -
T~{34DOa97fl~
" T
$ _____
75.00 ~. ~ (,~ ~'
JC05000325 ~ $ 1,$00.48 ~~ ,'~
3COS000411 " $ 682.43
3Ca50a0S53 $ 2,575Aa
~1~abaoa22a $ ?5.4a
CEOSOa4 i aS $ 00
1
638 ~ ~ ,,
CODE VIOLATIONS ,
. 3 ~
CE05aa4106 $ 4ai?.00
CE05aa4647 $ 1,500.00
CE06a06253 $ 100.a0
TOTAL AM®UNT OF LIENS & FINES S 344,544.33
ON 524 t,?CEAN DRIVE
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