2009-27185 ResoRESOLUTION NO. 2009-27185
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 6600 COLLINS AVENUE, MIAMI BEACH, FLORIDA, OWNED
BY 6600 COLLINS LLC, RESULTING FROM SPECIAL MASTER
CASE NO. JB05000268 IN THE AMOUNT OF $340,200.00 PLUS
INTEREST BE SETTLED FOR THE AMOUNT OF $34,000.00;
AND FURTHER AUTHORIZING THE CITY MANAGER TO TAKE
SUCH ACTION(S) AND EXECUTE ANY AND ALL NECESSARY
DOCUMENTS TO COMPLETE SUCH LIEN RELEASE AND
SETTLEMENT.
WHEREAS, RIST Properties LLC is the present owner of the real property which
is located at 6600 Collins Avenue, and has accumulated Building liens for various minor
elevator violations in the total amount of $340,200.00 plus interest; and
WHEREAS, RIST Properties LLC acquired the real property from 6600 Collins
LLC, and as part of the real estate transaction, escrowed certain funds to satisfy the lien
owed to the City of Miami Beach; and
WHEREAS, the escrow agreement for the 6600 Collins Avenue real property
authorizes 6600 Collins LLC to negotiate a lien settlement with the City of Miami Beach;
and
WHEREAS, the nature of the violations are deemed to be minor, and the amount
of time in which there was non-compliance was not egregious, the City of Miami Beach
believes it would be appropriate to settle the outstanding lien for the total amount of
$34,000.00.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND THE
CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the lien on 6600
Collins Avenue in the amount of $340,200.00 for Special Master Case No. JB05000268
is hereby settled for the total amount of $34,000.00; and further authorizing the City
Manager to take such action(s) and execute any and all necessary documents to
complete such lien release and settlement.
PASSED and ADOPTED this 9th day of September , 2009.
ATT ST:
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CITY CLERK
Robert Parcher
F:\cmgr\$ALL\BOB\66000oI linsLLCLien reso. doc
Mayor
Matti Herrera Bower
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COMMISSION ITEM SUMMARY
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R:nnrlpncerl TitlP~
A Resolution approving the settlement of a City lien on real property located at 6600 Collins
Avenue in the amount of $340,200 for the amount of $34,000.
Ke Intended Outcome 5u orted:
Ensure compliance with Code within reasonable time frame.
Supporting Data (Surveys, Environmental Scan, etc.): N/A
Issue:
Shall the Ma or and Ci Commission a rove the Resolution?
Item Summa /Recommendation:
The Ocean Breeze Hotel is located at 6600 Collins Avenue and has accumulated liens in the
aggregate amount of $587,358. One lien is for Code Compliance issues related to various
property maintenance violations in the amount of $247,158 and the other lien is a Building lien for
several elevator violations at the property in the amount of $340,200. The property was recently
sold by 6600 Collins LLC to Rist Properties LLC with a proviso in the sales contract that 6600
Collins LLC resolves the outstanding liens on the property. Funds were escrowed in the amount
of $1,000,000 at the time of the sale in order to secure these liens, as well as other outstanding
commitments on the property.
6600 Collins LLC has agreed to pay the full value of the outstanding Code Compliance lien for
property maintenance violations in the amount of $247,158 and a reduced amount for the
Building elevator violation liens in the amount of $34,000.
The property is in compliance relative to the elevator violations. As these violations are viewed
as minor in nature, the reduction from the face amount of the lien of $340,200 to $34,000 is
recommended as a fair and appropriate.
The respective settlement amounts totaling $281,158, were consciously structured to be
appropriate with previous lien settlements and/or City Commission direction. In the case of the
elevator violation, the recommended settlement amount is consistent with an appropriate penalty
for the nature of the violations, while in the case of the property maintenance violations, the full
value is being recovered as this particular property has represented somewhat of an eyesore and
has been problematic with the City for a period of time. The message conveyed in collecting a
lien in the amount of $247,158 is significant and important in supporting the City's message to
property owners that compliance on a timely basis is to be achieved within our community.
Adviso Board Recommendation:
N/A
Source of Amount Account
Funds: 1
OBPI Total
Financial Impact Summary:
Financial Information:
Ci Clerk's Office Le islative Trackin
Robert C. Middaugh, Assistant City Manager
Sign-Offs: ~
Department Director A ant City Manager - Ci Manager
JMG
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~~~~ ~~~"'~ AGENDAITEM C7EE
DATE
m MIAMIBEACH
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: Jorge M. Gonzalez, City Manager
DATE: September 9, 2009
SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, APPROVING THE SETTLEMENT OF CITY LIENS ON
REAL PROPERY LOCATED AT 6600 COLLINS AVENUE, MIAMI BEACH,
FLORIDA, OWNED BY 6600 COLLINS LLC, RESULTING FROM SPECIAL
MASTER CASE NO. JB05000268 IN THE AMOUNT OF $340,200 PLUS
INTEREST BE SETTLED FOR THE AMOUNT OF $34,000 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.
ADMINISTRATION RECOMMENDATION
Approve the Resolution.
ANALYSIS
The Ocean Breeze Hotel is located at 6600 Collins Avenue and has accumulated liens in the
aggregate amount of $587,358. One lien is for Code Compliance issues related to various
property maintenance violations in the amount of $247,158 and the other lien is a Building
lien for several elevator violations at the property in the amount of $340,200. The property
was recently sold by 6600 Collins LLC to Rist Properties LLC with a proviso in the sales
contract that 6600 Collins LLC resolves the outstanding liens on the property. Funds were
escrowed in the amount of $1,000,000 at the time of the sale in order to secure these liens,
as well as other outstanding commitments on the property.
The Administration in negotiating a settlement agreement for liens associated with 6600
Collins Avenue has agreed with the property owner to a global settlement amount of
$281,158 for the subject property. 6600 Collins LLC has agreed to pay the full value of the
outstanding Code Compliance lien for property maintenance violations in the amount of
$247,158 and a reduced amount for the Building elevator violation liens in the amount of
$34,000. As the Code Compliance lien has not been reduced, no Commission action
relative to that amount is necessary as it is a collection rather than a settlement per se.
The property is in compliance relative to the elevator violations which were originally issued
for failure to have a five (5) year test, a sign in the machine room and improvements to
access stairs to the machine room. As these violations are viewed as minor in nature, the
reduction from the face amount of the lien of $340,200 to $34,000 is recommended as a fair
and appropriate penalty associated with the violations. The size of the mitigation on this
specific lien as it is in excess of $100,000 does require Commission approval.
The respective settlement amounts were consciously structured to be appropriate with
previous lien settlements and/or City Commission direction. In the case of the elevator
violation, the recommended settlement amount is consistentwith an appropriate penalty for
the nature of the violations, while in the case of the property maintenance violations, the full
value is being recovered as this particular property has represented somewhat of an eyesore
and has been problematic with the City for a period of time. The message conveyed in
collecting a lien in the amount of $247,158 is significant and important in supporting the
City's message to property owners that compliance on a timely basis is to be achieved within
our community.
Approval of the settlement is recommended.
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