2002-24768 Reso
RESOLUTION NO.
2002-24768
A RESOLUTION OF THE MAYOR AND THE CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA,
APPROVING THE SETTLEMENT OF CODE
ENFORCEMENT, FIRE AND BUILDING LIENS ON THE
PROPERTY LOCATED AT 2925 INDIAN CREEK DRIVE
AND FURTHER AUTHORIZING THE MAYOR AND CITY
CLERK TO EXECUTE ANY AND ALL DOCUMENTS
NECESSARY TO EFFECTUATE THE SETTLEMENT.
WHEREAS, Mr. Mordechai Boaziz eBoaziz") is the prospective owner (by virtue of a
Purchase and Sale Agreement) of the property known as the Alden Hotel located at 2925 Indian
Creek Drive which has accumulated liens in case numbers: JB980598; BV980547; JL950074;
JB00000850; BVOOOO1023;JC990052; J98F0244; 98F11921; JOOF000088; FIO00000437;
JOIROOOI97, and FIOI00232; and
WHEREAS, the City of Miami Beach eCitY') and Boaziz have been negotiating the
settlement of the liens in the afore set forth cases; and
WHEREAS, the City has received an offer of payment of$30,512.20 by Boaziz to cover all
the City's hard costs associated with the closing of the Alden Hotel property and relocation of its
then residents; additionally Boaziz has offered to pay the sum of $20,000.00 in settlement of the
remaining liens which accrued in the above set forth cases totaling $476,578.54; and
WHEREAS, Boaziz has expressed his intent upon closing, to the City to renovate the entire
property with all new electrical, plumbing, air conditioning and to correct all violations noted in the
above cases; Boaziz warrants that he will spend approximately no less than $500,000.00 to rehab the
complete building to enhance the seventy-six (76) unit facility which will improve the neighborhood.
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WHEREAS, the Administration has reviewed Boaziz' offer, and has throughly reviewed
each ofthe lien files, Boaziz' Purchase and Sale Agreement, the present condition ofthe building and
its blite upon the neighborhood in its present condition, the present real property tax assessment
valuation for the reality and building and has reviewed the cost and time required to rehab the Alden
Hotel; the conditions and form of settlement have been discussed with the City Attorney and the
settlement if further conditioned upon approval of the CitYs Chief Special Master; therefore the
Administration recommends the proposed settlement, which is set forth in detail in the January 25th
settlement letter which is attached hereto and incorporated herein as if fully set forth, as being in the
best interests of the City.
NOW THEREFORE, BE IT DULY RESOLVED BYTHE MAYOR AND THE CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, as follows:
1. The Mayor and the City Commission herein approve the settlement letter dated
January 25, 2002 between Mordechai Boaziz and the City of Miami Beach provided:
A. All necessary building permits to complete a total renovation of the Alden
Hotel property are obtained by May 1, 2002 and construction of said
renovation shall commence on or before June 1,2002; the project shall be
completed by June 1,2003; Boaziz shall spend no less than $500.000.00 to
rehabilitate the complete building to enhance the seventy-six (76) unit
facility; and
B. If the time schedule set forth above is met the City will not take any further
enforcement action on the lien cases described herein above; and
C. Upon final payment of the monies due: $50,517.20 under the terms of the
January 25, 2002 settlement agreement and upon the issuance of the final
inspection and issuance of an Occupational License and Certificate of Use for
2925 Indian Creek Drive, the City shall close ali of the above referenced
cases and release the above liens; however,
D. If Boaziz fails to comply with any of the terms or conditions of the
Settlement Agreement and as set forth herein, the City shall be entitled,
without prejudice to immediately suspend the Occupational License of the
above referenced business and shall be entitled to collect the full amount for
all liens in the above mentioned cases (giving Boaziz credit for any monies
which may have been paid) to with $476,578.54 and the City may pursue any
and all of its claims and remedies of whatsoever nature and the agreement of
January 25,20002 shall be null and void.
E. Lastly the Agreement of January 25, 2002 shall be subject also to the
approval of the Chief Special Master.
F. The lien mitigation shall be further conditioned upon the actual property
closing financial statement being substantially as ret>resented to the City and
as provided to the Commission in draft form. and that the property purchaser
shall provide the City with an affidavit stating that the property closing
financial statement r resents the entire financial transaction between the
urchaser and seller of the 0 ert .
PASSED and ADOPTED this
ATTEST:
J4kr f~
CITY CLERK
APPROVED AS TO
fORM & lANGUAGE
& FOREXECunON
F:\ATIO\$ALLIAMADAIRESOSET.WPD
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J -11-02-
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CITY OF M,IAMI BEACH
COMMISSION ITEM SUMMARY
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Condensed Title:
A Resolution approving the settlement of Code Enforcement, Fire and Building Liens on the property
located 2925 Indian Creek Drive and further authorizing the Mayor and City Clerk to execute any and all
documents necessary to effectuate the settlement.
Issue:
Shall the City approve a lien mitigation for property at 2925 Indian Creek Drive to facilitate renovation of
the property.
Item Summary/Recommendation:
The property at 2925 Indian Creek Drive has accumulated various City liens and encumbrances from 1998
to present in the amount of $476,578.58. The building has been determined to be uninhabitable and
$30,517.20 in direct costs were incurred by the City to relocate tenants. The property is being purchased
and the City has been asked to mitigate liens. An Agreement has been prepared to recover $20,000.00
of the lien amount and the full amount of the City's direct costs. The Agreement conditions the lien
mitigation upon complete renovation of the property. Approval of this Agreement will enable the sale
transaction to be completed and the renovation commenced. Approval is recommended as costs are
recouped and the property will be restored to useful function.
Advisory Board Recommendation:
I N/A
Financial Information:
Amount to be expended:
D
Finance Dept.
Source of
Funds:
AGENDA ITEM Y7I.
DATE 2-;W-oL
CITY OF MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139
www.ci.miami-beach.f1.us
COMMISSION MEMORANDUM
From:
Mayor David Dermer and
Members of the City Commission
Jorge M. Gonzalez ~.. . ~
City Manager 0 ,}/'"' l)
A RESOLUTION OF THE MAYOR AND THE CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, APPROVING THE SETTLEMENT OF
CODE ENFORCEMENT, FIRE AND BUILDING LIENS ON THE
PROPERTY LOCATED AT 2925 INDIAN CREEK DRIVE AND FURTHER
AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE ANY AND
ALL DOCUMENTS NECESSARY TO EFFECTUATE THE SETTLEMENT.
Date: February 20, 2002
To:
Subject:
ADMINISTRATION RECOMMENDATION:
Adopt the Resolution.
ANALYSIS:
At the last meeting of the City Commission, Commissioners asked for financial data
indicating the equity available in the property located at 2925 Indian Creek Drive. The
closing and settlement costs associated with the sale of the property are being obtained
and evaluated to address this concern. This information will be distributed as a
Supplement prior to the February 20th Commission meeting.
JMG/RCM/sam
lienmitig2925indiancreekdrcomm.doc
A TAR T
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PURCHASER, JO€KUA D. ~lhNAE'fEX;- AS TRUS~ agrees to purchase and
Seller, ALANlRA ACQUISITIONS, INC., a Florida corporation, agrees to sell the following
described property. Now, therefore, in consideration of $1.00 and other good and valuable
consideration, the receipt of which and sufficiency of which is hereby mutually acknowledged, and
the muroal covenants contained herein, the parties hereto, intending to be legally bound, hereby
agree upon the below terms and conditions.
1. DESCRIPTION OF PROPERTY: The property herein is known as the ALDEN
HOTEL. The address of the property herein is 2925 Indian Creeek Drive, Miami Beach, Florida
33139, and the legal description of real property, (sometimes hereinafter referred to as the
"premises" or "property"), is:
Lots 14 and IS, in Block 12, of OCEAN FRONT PROPERTY, OF THE MAIMI
BEACH IMPROVEMENT COMPANY'S SUBDIVISION, according to the Plat thereof recorded
in Plat Book S, a[ Pages 7 and 8, of the Public Records of Dade County, Florida. Also that strip of
land bounded on the Easterly side by Indian Creek Drive, on the Westerly side by Indian Creek, on
the Northerly side by the Northerly line of Lot 14, Block 12, extended Westerly. and on the
Southerly side by the SOLlrth line of Lot IS, Block 12, extended Westerly, together with aU riparian
rights and water privileges appurtenant thereto; all being accorded to the plat thereof, as aforesaid.
Included in this ttansaction in addition to the real property above described, are all
easements, agreements, development rights, air rights, water rights, mineral rights, rights-of-way.
tenements, appurtenances, ways, strips, gores, rights in adjacent avenues, streets and alleys, rights
and uses appurtenant thereto, and all improvements now on the premises.
~. DEPOSIT & PURCHASE PRICE: Purchaser has aleady made a deposit in the sum
of $60,000.00. Same encompasses $25,000.00 paid to Seller and $35,000.00 payable to the fIrst
mongagees herein. An additional $35,000.00 shall be paid by Purchaser to Seller and made
payable to the first mortgagees. Upon [he execution of this agreement by both parties, the total
/ payment of $70,000.00 shall be forthwith paid to the first mortgagees and if they fail or refuse to
lJ accept same, the money shall be paid into the Court Registry in favor of the said mortgagees. The
full deposit of $95,000.00 is not refundable unless the transaction fails to close as a ressult of
Seller's fault. The purchase price is Two Million One Hundred SntB~ SifLl'housand
~lro,a:o~)s2,11,,989.88fDollars, adjusted accordingly by the applicable prorations, and payable by
Purchaser to Seller as follows:
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3. METHOD OF PAYMENT: This is an "all cash" sale, and is not conditioned upon
the Purchaser's acquisition of any financing. The balance of the purchase price shall be paid by
Purchaser to Seller in cash or local cashier's checlc at the closing, increased or decreased by
prorations.
4. INSPECTIO~ PERIOD: Fully completed - except for matters related to title.
S. REPRESENTATIONS OF SELLER: Seller makes no representatins re the
managment, operation or income of [he hotel, which is now closed by order of the City of Miami
Beach.Seller shall maintain all fire and casualty insurance coverage on the property up and
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including the date of closing herein. Seller shall not enter into any leases without the written consent
of Purchaser, unless such lease is for a rental equal to or greater than the customary amount charged
by Seller and that such lease will not be effective for more than one (1) month after closing. This
property is sold in "as is physical condition" with all inspections by Purchaser having been
satisfactorily completed. Seller represents that Seller is unaware of any radon gas affecting the
property herein. Risk: of loss or damage to property to remain with Seller until closing. Seller shall
continue to maintain the physical.premises until the closing herein, and shall deliver the premises to
Purchaser at the closing in the present condition, subject only to reasonable wear and tare.
6. PRORA nONS: Taxes. assignable insurance, interest, assessments, rents.
transferrable licenses and other expenses or revenues shall be prorated as of midnight just prior to
the day of Closing. a~~~n..t1fte eask se ele~?
Seu y sb,. \ ck \;~ Bu.WI~) 0.; ~llev.'>t!O!.+)Q-fitk. IClo\ I
7. TITLE: ;7- . .' . ithin
five (5) days of the effective date of this agreement. Purchaser shall hav ~ ~ days after receipt
of the updated title to inspect same, and notify Seller of any title defects or title objections. If title
shall not be good, marketable and insurable Seller shall be released. from all obligations hereunder,
or upon reque~t of Purchaser, Seller shall deliver title in its exispng condition. The lattel}s ..L... _" .I.~ -.
conditioned upon the following: Sell~V' h>.s ~ (/0) do..~s +0 eu.Y'<" an') d.ef<<."nY co)(c..~
A. Purchaser is aware that the hold.ers of the first mortgage, Joseph, Robert and Judth
Socota have commenced a foreclosure of that mortgage in August 2001. The principal balance of
the mortgage is $1,500,000.00. Same is in arrears for the payments due May 28, June 28, July 28,
and August 28, 2001, each payment being interest only of $17,500.00. $70,000.00 of the
$95,000.00 deposit shall bring this mortgage current as to the base payments due on the latter as of
AuguSt 28, 2001. but excluding all late charges, defaull interest, and other charges related thereto.
Same does not include the default interest which is in addition thereto. Seller shall be responsible
only for the initial interest payments prorated to September 1, 200 1. Purchaser accepts the property
with the clear understanding that he shall fully assume all late charges, default interest, extension
fees and other related charges resulting from the default of the latter mortgage, and shall not
receive any credit for same against the purchase price.
B. :Purchaser is aware of a number of code violations, liens, and other encumbrances by
the City of Miami Beach. Purchaser shall fully assume and pay all such obligations, which shall not
be paid by Seller and which amounts shall not be credited by Seller to Purchaser in any way.
'=f 8. CLOSING DATE & PLACE: The closing shall be in office of Kenneth N. ReKant,
Esquir:e, at 2:00 P.M. thirty,,qO) days.frOql the effec:.t\v~ date o~ ~_f~reement.(;k~ ;:"1) ~~. .~~(~~U ~
~Yr+;fta.<tn+Ot'\ -e,u.y~~ f\e)O-t-lc1.i1~I' ~~~ \~ ~~L hol&..tV" o:-u ~ L-' G
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9. DEFAULT: If Purchaser falls to c ose as agre~ and Seller has fully complQd With tlllS"8 ~
agreement. at Seller's option, the Purchaser shall forfeit the deposit already paid together with any
ad.ditional deposit monies still due, as liquidated and agreed damages. If Seller fails to close as
agreed, Purchaser may elect to receive a return of all depo~it monies or Purchaser may seek . .1
ij)ecific perfonnanc~ qf this _air~~.lp.entfar& C;..\ \ trlOn'e~. a.r.c9 -e.~S(S IncuY"~cD 'HlvOt.tSh
dCl+e ~ caY'lCel u't1tn Q- 'tt-\ \ ~~ ~ ~V"~~~ ~.h \\ be.~~ ~ <; c.... >j
10. MISCEJ~LANEOUSPR SIo~~e~~ (h~c:f- t~V) oy...s.l(~)rc.f"'~
'(l~ I~Qk In"'lW'!4 2Ann(.((;\1I9 I
A. Where [yped and printed portions of this agreement conflict, the typed portion shall
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C.1o;i11'J. dl:d:.. IS CcY>-li~ on 2 ~~ ~-J..c..-4lL, '" ~~~ 5.W~
~ f~v~+ vnot:~~IJer.a~Se+l-;VJ~()f -tLI tI~~ tJ!1#.. . ~
(Y)~s~vs. D.{-. ...u:.L CJ~ of f1A't..fUf' 'Bt't1<c1l'-. r-(~Y"JIYl') ..{j"'e 0.11& heVl
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prevail. Hand written text duly initialed or signed shall prevail over all other text. Singular, plural,
masculine and feminine are used interchangeably as the context requires.
B. This agreement, including the docwnents. exhibits, and schedules referred to herein,
contain the entire understanding of the parties hereto and supersede all prior understandings,
agreements, or undertakings of the parties with respect to the subject matter herein, and may be
amended only by a written instIUlllent executed by all parties herein.
c. Unless caused by fault of Seller, the closing date shall not be extended in any respect
without the written consent of the Seller. Absolutely no circumstances [outside of Seller's fault],
shall permit the extension of the closing - even if such circumstances are beyond Purchaser's
control. An oral or implied agreement to extend the Closing shall not be effective.
D. This agreement shall be a contract made under, and shall be governed. by and consrrued
under rhe laws of the State of Florida. This agreement shall be binding upon. and inured to the
benefit of the parries hereto and 'their respective b"Uccessors and assigns.
o (j attorney fees incuned by the prevail'
,
agamst the non-prevailing party,
. c. Tki8 agree'ftlelN R18Y ee 8xeeureEl ill &:BY .BtiIB8er ef
~ deemed an original. This agreement may be executed by f&c . 0 eteI1IlllUng
'(lj'''''' the "effective date of rhis ", onginally executed as soon as practicable
(j)& .1tV he" ~:~::::~~~h'~:~~~~.~i~':'~~~;' .i\;dIlI
(JJ)~. 1. Thi3 eOfl'IAatt &hall .net be reeerded itl a!1Y ~lie r~El6 B\' ei1lter }3A-o:q' ."icli9Yt me
V OI"..J ll[iAor ""$it~i'R BM'J8Vlll ..<f llM, 1d1llMl~ p~'. ~
J. Should the last day of any performance provision terminate on a Sunday or legal
holiday, such performance shall be delayed until the Dext business day.
K. From and after the date of this agreement, including subsequent to the closing herein,
each of the parties agrees to execute whatever additional documents or instruments as are necessary
to carry out the intent and purpose of this agreement.
L. Time is of the "'utmost" essence in all provisions herein.
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M. Except as otherwise expressly provided herein, no waiver of any rights or obligations
hereunder shall be deemed to have occurred unless in writing signed by the party against whom
such waiver is asserted. In addition, no waiver shall be deemed a waiver of any orher subsequent
right or obligation.
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11 . REAL ESTATE BROKER: . shall pay tk8 tWM--eal estate brokerage fee to
-I,uac; ~f The Brokerage Housec aad ReItt .seller 118.fm:Ies6 frOBl ~ eleifl16 BBm thi6 br9Ur..4.>-
:s.m. fl., I"",.
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U. NOTICES: Any notices to be given by either party to this agreement shall be in
writing and shall be either delivered personally or by certified or registered U.S. mail, postage
prepaid, or by overnight courier delivery service with charges toche sender, (with copy to
designated parey by regular mail) as follows:
To Sener:
Ira Schwanz.
With copy to:
Kenneth N. ReKant, P.A., 333 41st Street, Suite 506,
Miami Beach) Florida 33140 [Te!: 305-531-2225]
~~; ~uz .
.JoihlMl D. M!:nas~Trustee oU',. Qss~'<-
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To Purchawr:
Notice shall be deemed given if properly addressed and delivered as set forth herein (wo (2)
days following deposit in the U.S. Mail, and one (1) day following deposit with any generally
recognized overnight delivery service, and on the date of personal hand delivery to a person
authorized to receive such delivery
13. TI~ FOR ACCEPTANCE: This offer is void if not accepted by Purchaser on or
before the ~~ day of September, 2001.
IN WITNESS WHEREOF. Sdltt. by and throu~ the authorized representatives set out
below, have hereunto set their hands and seals on the ~;.J day of September, 2001.
VJ ;ffif'~s: rf=
-1"1 .J j,. Alanira Acquisitions, Inc.
IOlfl1fA..,1o I:<HAI) A Florida corporation (seller)
Ad~~ h~~~~
IN WITNESS WHEREOF, Purchasei', by and th~Jh the authorized representatives set
~"~~e$ :ou:~~: Mve bmunro ~l ~ - ~ .w. on W~~~200~'
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~ 'tZ/ ~~~~'l CDr~'2.
4