2011-27574 Reso RESOLUTION NO.!
2011 -27574
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF
THE CITY OF MIAMI BEACH, FLORIDA, APPROVING THE
SETTLEMENT IN THE AMOUNT OF $50,000.00 OF A CITY LIEN
ON PROPERTY OWNED BY PARK FRONT CONDOMINIUM
ASSOCIATION, INC., LOCATED AT 1319 MERIDIAN AVENUE,
IN THE ORIGINAL AMOUNT OF $193,334.53, AND FURTHER
AUTHORIZING THE CITY MANAGER TO TAKE SUCH ACTION
AND EXECUTE ANY AND ALL NECESSARY DOCUMENTS TO
COMPLETE SUCH LIEN RELEASE AND SETTLEMENT.
WHEREAS, the property located at 1319 Meridian Avenue, Miami Beach,
Florida (the "Property ") has accumulated fines, in the amount of $193,334.53;
and
WHEREAS, the Property is a twenty -three (23) unit condominium building
with fifteen (15) bank owned units, under the control of a receiver, and eight (8)
privately owned units; and
WHEREAS, the Property has an outstanding lien for a building code
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violation in the amount of $193,334.53; and
WHEREAS, a Petition for Writ of Certiorari has been filed by receiver to
quash the Special Master's Order rendered on September 16, 2010; and
WHEREAS, in review of the history of the violation; the violation was
minor in nature, was accumulated while the developer was in control of the
condominium association; and the amount of the lien accumulated exceeds the
appropriate penalty; and
WHEREAS, the payment of $193,334.53 would be a financial burden on
the economic stability of the condominium association and its members; and
WHEREAS, in light of the extenuating circumstances, the Administration
recommends that the City Commission approve a $50,000.00 settlement amount
for this 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 the settlement in the amount of
$50,000.00 of a City lien on property owned by Park Front Condominium
Association, Inc., located at 1319 Meridian Avenue, in the original amount of
$193,334.53, and further authorizing the City Manager to take such action and
execute any and all necessary documents to complete such lien and settlement.
PASSED and ADOPTED this d Y
a of 2011.
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CITY CLERK
APPROVID AS TO
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COMMISSION ITEM SUMMARY
Condensed Title:
Resolution approving lien settlement for the following property: 1319 Meridian Avenue.
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 lien settlement?
Item Summary /Recommendation:
As a result of a lawsuit filed lawsuit a settlement has been negotiated on the property located at 1319 Meridian
Avenue.
1. 1319 Meridian Avenue
The twenty three (23) unit condominium has a lien in the amount of $193,343.53.
The fine originated as a result of a violation issued for spalling concrete. The former owner, who intended to
convert all 23 apartments to condominiums, did not attend to this fine. The property eventually had the violation
corrected by performing $25,000.00 of repairs. The former owner then completed mitigation receiving a reduction
of fines in the amount of $20,000.00. In July of this year the Receiver challenged this decision which was not
granted thus caused the writ to be instituted.
Fifteen of the units are currently under Receiver Paul S. Kaplan for Gibraltar Private Bank and Trust Company.
The remaining eight (8) units are in foreclosure or about to be foreclosed on. The burden of this fine solely rest
on the current owners which have demonstrated financial peril as a result of the current ownership status of this
property and the current real estate market environment.
The city Administration has accepted final offer of $50,000.00, as a settlement. Originally, Gibraltar Private Bank
& Trust offered $25,000. Based on all the facts reviewed the City Administration has recommended acceptance
of this offer.
Adopt the Resolution.
Advisory Board Recommendation:
Financial Information:
Source of Amount Account
Funds: 1
Financial Impact Summary:
City Clerk's Office Legislative Tracking:
Sign -Offs:
Department Director Ass`_ ity Manager City Manager
411,
/
City Attorney
oP MIAMI B EAc H AGENDA ITEM al
DATE I lq (
MIAAAIBEACH
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 Co.. . ission
FROM: Jorge M. Gonzalez, City Manager
DATE: January 19, 2011
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA APPROVING THE SETTLEMENT IN THE
AMOUNT OF $50,000.00 OF A CITY LIEN ON PROPERTY OWNED BY
PARK FRONT CONDOMINIUM ASSOCIATION, INC., LOCATED AT 1319
MERIDIAN AVENUE,, IN THE ORIGINAL AMOUNT OF $193,334.53, AND
FURTHER AUTHORIZING THE CITY MANAGER TO TAKE SUCH ACTION
AND EXECUTE ANY AND ALL NECESSARY DOCUMENTS TO COMPLETE
SUCH LIEN RELEASE AND SETTLEMENT.
BACKGROUND
PROPERTY
1319 MERIDIAN AVENUE, MIAMI BEACH
1319 LLC purchased Flamingo Apartments, located at 1319 Meridian Avenue, Miami
Beach, Florida, as a residential rental community containing a total of 23 residential
units. 1319 LLC intended to convert the apartment building into a residential
condominium building, named Park Front Condominium, and further intended to sell the
units individually as condominium units.
ANALYSIS
The attached resolution settles a lien in the amount of $193,334.53 for consideration of
$50,000 on property owned by Park Front Condominium Association, Inc., located at
1319 Meridian Avenue.
The fine originated from a 2007 notice of violation for spalling concrete. 1319, LLC, as
developer, intended to convert 23 apartments to condominiums and did not correct the
violation in a timely manner. Ultimately, the developer_, completed the work at a cost of
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approximately $25,000.00. The developer requested mitigation and on May 20, 2010,
the Special Master reduced the fine from $193,334.53 to $174,404.37, provided that
payment was to be made by August 25, 2010:
On July 26, 2010, Gibraltar Private Bank & Trust, the lender, obtained a Final Judgment
of Foreclosure on the unsold 15 units. This judgment determined that the City's lien was
inferior to its mortgage lien on the units. Therefore, the City's lien remains a lien solely
on the common areas and the 8 privately owned units.
On July 30, 2010, the Miami Dade Circuit Court, appointed a receiver to manage the 15
unsold condominium units and to replace the developer's Board of Directors.
Subsequent to the receiver obtaining control of the Association and prior to the due date
for the payment of the fine, the receiver requested that the Special Master rehear the
mitigation based on a change in circumstance namely, that the receiver was appointed
to insure the economic stability of the Association, and that payment of the full amount
would be an economic burden on the Association. The receiver argued that innocent
purchasers should not be penalized by the fact that the developer did not promptly
correct the violation. In the alternative, the receiver requested additional time to pay the
mitigated amount. The Special Master denied the receiver's request and re- instated the
fine to the full amount, with no additional time for payment.
On October 18, 2010, the receiver filed a petition for writ of certiorari with the Circuit
Court to quash the order rendered on September 16, 2010 in Special Master Case No.
JB07000761.
The receiver contends that the Special Master's order, in which the Special Master
disallowed mitigation of the fine departed from the essential requirements of law, unjustly
punished the condominium association and the individual unit owners, and should be
quashed.
Originally, Gilbraltar Private Bank & Trust offered to settle the lien for $25,000.00. After
extensive negotiations with the City Attorney's Office and the Finance Department,
Gibraltar Private Bank & Trust agreed to pay $50,000.00.
ADMINISTRATION RECOMMENDATION
Adopt the Resolution authorizing the lien settlement as described.
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