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RESOLUTION NO. 2002-24905
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF
THE CITY OF MIAMI BEACH, FLORIDA, APPROVING A
SETTLEMENT BETWEEN LANDMARK DEVELOPMENT AND
THE CITY OF MIAMI BEACH FOR FINES IMPOSED ON THE
PROPERTIES LOCATED AT 337 20TH STREET, 735 COLLINS
AVENUE, 727 COLLINS AVENUE, AND 635 COLLINS AVENUE,
REDUCING SAID FINES FROM $24,703,669 TO $65,000 AND
IMPOSING A REQUIREMENT OF A ONE YEAR
PROBATIONARY PERIOD WITH QUARTERLY PROPERTY
INSPECTIONS AND ESTABLISHING A FINE AMOUNT OF
$50,000 FOR ANY VIOLATIONS OF CODE THAT OCCUR IN
THE PROBATIONARY PERIOD.
WHEREAS, the properties owned by Landmark Development at 337 20th
Street, 735 Collins Avenue. 727 Collins Avenue, and 635 Collins Avenue have
been cited for various Code Compliance, Building Division and Fire Department
violations; and
WHEREAS, the total of fines/liens imposed on the subject properties as a
result of the Code, Building and Fire violations is $24,703,669; and
WHEREAS, Landmark Development has paid all outstanding items owed
to the City. These include: utilities on the four aforementioned properties totaling
$18,827.79, foreclosure costs totaling $1,700 plus court costs, and $11,000
payment towards the amount owed for the Old City Hall lease payment; and
WHEREAS, the circumstances of the enforcement efforts and the nature
of the violations warrants a Settlement being entered into between the property
owner and the City of Miami Beach; and
WHEREAS, the property owner and the City have agreed upon a
reasonable fine amount and a probationary period as described below to settle
outstanding Code, Building and Fire violations on the subject properties.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND
THE CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the
terms and conditions for settlement of Code, Building and Fire violations at the
aforementioned properties owned by Landmark Development are hereby
stipulated and approved as follows:
1. The total fine payable to the City shall be reduced from $24,703,669 to
the amount of $65,000 payable in one sum.
2. The subject properties and the property owner shall be placed on a
one year probationary period. During such period, the properties shall
be inspected quarterly by the Code Compliance Division to assure
compliance with all applicable codes. The costs of quarterly
inspections are to be paid by the property owner and are agreed to be
$500 per quarter.
/
3. Three (3) existing property violations, two (2) building, one (1) fire are
to be corrected as soon as possible and no later than the first quarterly
inspection. Fines associated with these three violations are
considered to be settled within the terms specified herein if corrected
no later than the first quarterly inspection.
4. In the event that a violation(s) is discovered during any quarterly
inspection and an order of violation of the Special Master is entered,
the fine for such violation(s) shall be $50,000. In the event such fine is
not paid as stipulated by Order of the Special Master, an additional
penalty shall be assessed at the rate of $1,000 per each day of non-
compliance with the payment terms of the Special Master's Order.
5. To secure the settlement terms, the property owner shall provide the
City a Letter of Credit, as approved by the City, in the amount of
$50,000. Such letter shall be promptly renewed if drawn upon by the
City and is further secured by the personal guarantee of Mr. Robert
Saland, an individual and by the Landmark Development Corporation
as Owner.
6. It is further acknowledged that a $3,000 security deposit of Landmark
Development Corporation for a lease at "old City Hall" on Washington
Avenue, is hereby surrendered to the City as a condition of settlement
and that upon expiration of the property lease affected, the Owner shall
not make any claim for such deposit.
7. In the event that there is any disagreement on the reasonable time
allowed for the Owner to correct any violations as part of the quarterly
inspection process, it is agreed by the City and the Owner that Chief
Special Master, Robert Newman, shall have the sole discretion to
resolve the issue and direct the parties accordingly.
8. In the event that a matter is to be heard by a Special Master, other
than as specified in paragraph 7, e S cial Master of record to hear
such cases is stipulated to be C oly w rd.
PASSED and ADOPTED this 19
,2002.
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City Clerk
landmarkreso3.doc
APPROVED AS TO
fORM & LANGUAGE
& fOR EXECUTION
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CITY OF MIAMI BEACH
COMMISSION ITEM SUMMARY
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Condensed Title:
A resolution approving a settlement agreement between Landmark Development and the City of Miami
Beach for fines imposed on properties located at 337 20th Street, 735 Collins Avenue, 727 Collins Avenue
and 635 Collins Avenue, reducing said fines from $24,703,669 to $50,000 plus additional amounts owed to
the City totaling $31,527,79, plus court costs.
Issue:
Shall the settlement agreement with Landmark Development and said fines be reduced from $24,703,669
to $50,000 plus additional amounts owed to the City totaling $31,527.79, plus court costs be approved?
Item Summary/Recommendation:
Beginning in 1995, and until recently the four properties owned by Landmark Development were cited for a
number of violations by Code Compliance Division, Building and Fire Department. In the process of
resolving the various complaints over the past several years, the property owner chose not to comply with
orders issued by the City's Special Master and in some instances, refused to comply, which significantly
increased the amount of the fine. Given the passage oftime, the significant fine amounts levied on a daily
basis, and the fourteen cases, the total fines escalated to $24,703,669.
The Administration recommends adopting this resolution.
Advisory Board Recommendation:
I N/A
Financial Information:
Amounfto be expended:
D
Finance Dept.
Source of
Funds:
UN1902lREGULARllandmarksummary.doc
AGENDA ITEM
DATE
A7H
G-I? -0 ::l-
CITY OF MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139
www.ci.miami-beach.f1.us
To:
From:
Subject:
COMMISSION MEMORANDUM
Mayor David Dermer and
Members of the City Commission
Date: June 19, 2002
Jorge M. Gonzalez /2 ,~~ _ _. I .-J. .
City Manager ~/,dJ. ~
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, APPROVING A SETTLEMENT
AGREEMENT BETWEEN LANDMARK DEVELOPMENT AND THE CITY
OF MIAMI BEACH FOR FINES IMPOSED ON THE PROPERTIES
LOCATED AT 337 20TH STREET, 735 COLLINS AVENUE, 727 COLLINS
AVENUE, AND 635 COLLINS AVENUE, REDUCING SAID FINES FROM
$24,703,669 TO $50,000 PLUS ADDITIONAL AMOUNTS OWED TO THE
CITY TOTALING $20,527.79, PLUS COURT COSTS AND IMPOSING A
REQUIREMENT OF A ONE YEAR PROBATIONARY PERIOD WITH
QUARTERLY PROPERTY INSPECTIONS AND ESTABLISHING A FINE
AMOUNT OF $50,000 FOR ANY VIOLATIONS OF CODE THAT OCCUR IN
THE PROBATIONARY PERIOD.
ADMINISTRATION RECOMMENDATION
Adopt the Resolution.
ANALYSIS
Beginning in 1995, and until recently the four properties owned by Landmark Development
were cited for a number of violations by Code Compliance Division, Building and Fire
Departments. The affected properties include buildings at 337 20th Street, 735 Collins
Avenue, 727 Collins Avenue and 635 Collins Avenue. A specific list of the violations is
attached and indicates the total number of cases is fourteen. Also, for 635 Washington
Avenue, three (3) cases remain unresolved at this time and are not part ofthe settlement
agreement. Two (2) of the three (3) cases are Building Department cases (emergency fire
alarm and structural repairs). The third case is an outstanding violation for failing to install
an alarm panel without required permits. This is a Fire Department case. The three (3)
outstanding cases are currently accruing daily fines. The three (3) pending cases will be
corrected prior to the first quarterly inspection.
In the process of resolving the various complaints over the past several years, the property
owner chose not to comply with Orders issued by the City's Special Master, and in some
instances refused to comply, which significantly increased the amount ofthe fine levied on
a daily basis. At one point, the Special Master had levied a fine of $45,000 per day as a
direct result of the property owner's consistent refusal to comply with an Order.
Given the passage of time and the significant fine amount levied on a daily basis, the total
of fines levied against the property escalated to its current level of $24,703,669.
While the Special Master's displeasure with the property owner is understandable, the fine
amount levied in this particular case on a daily basis was not one which the City
realistically would have expected to collect.
In addressing the Settlement Agreement for fines levied on this series of properties, the
Administration made a concerted effort to draft a Settlement Agreement that was
appropriate to the condition and recognized the circumstances that were appropriately
actionable by the City. In this case, there is clear agreement that the property owner had
numerous property maintenance, fire and building code violations on the four subject
properties. The violations remained uncorrected for a long period of time and the property
owner refused to cooperate and comply with appropriate direction from the Special Master
and/or the various enforcement divisions. These conditions clearly warrant the imposition
of a fine and as such, a fine amount of $50,000 has been agreed upon between the parties
as appropriate for these conditions and this Settlement Agreement. The fines will be paid
to the City in two installments of twenty five thousand dollars ($25,000) each a) on or
before June 30, 2002; and b) on or before January 30, 2003. Additionally, Landmark
Development has agreed to pay costs that they currently owe to the City. These costs
include: utilities on the four aforementioned properties totaling $18,827.79, foreclosure
costs totaling $1,700 plus court costs, $11,000 payment towards the amount owed for the
Old City Hall Lease payment. Upon final payment of all amounts owed, the City will
release the above stated lien.
The net result of the Agreement is that the property owner pays an appropriate fine for the
violations in question and is given a definite incentive to maintain the properties in question
at a reasonable level for at least a one-year period.
By approving the attached Resolution, the City Commission will approve the terms of the
Settlement and reduce the fines in question from $24,703,669 to $50,000.
Details of the Agreement are still being worked on and any additional information will be
provided via supplemental materials.
JMG\RCM\sam
T:\AGENDAI2002\JUN1902\REGULARllandmarkcommemo.doc
Attachments
CITYOFMIAMIBEACH
1700 Convention Center Dr, Miami Beach, FI33139
http:\\ci.miami-beach.II,us
Attachment "A"
727 Collins Avenue
Miami Beach, FL
Case No.:
JOOF00185 (Fire Department)
JC961095 (Code Compliance)
JC990026 (Code Compliance)
735 Collins Avenue
Miami Beach, FL
Case No.:
JOOF000186 (Fire Department)
JC990045 (Code Compliance)
337 20th Street
Miami Beach, FL
Case No.:
J99F0161 (Fire Department)
JB00000844 (Building Department)
JC00000910 (Code Compliance)
635 Collins Avenue
Miami Beach, FL
Case No.:
J01 F00269 (Fire Department)
J98F0114 (Fire Department)
Fine Amount:
$ 1,000.00
$222,627.00
$981,112.00
Fine Amount:
$ 1,000.00
$ 355,353.00
Fine Amount:
$ 75.00
$ 147,580.00
$ 171,336.00
Fine Amount:
$ 31,658.00
$ 203,026.00
JB00000688 (Building Department)
JC00001170 (Code Compliance)
JC00001172 (Code Compliance)
JC00001173 (Code Compliance)
$ 2,652.00
17,577,250.00
$1,323,250.00
$3,685,750.00
Grand Total $24,703,669.00
Page 2
Page 3
727 Collins Avenue
JC961095 - Code Compliance
Notice issued on April 17 , 1995 for thirty-three (33) interior and exterior property
maintenance violations. Violations were corrected on June 25, 2001.
JC990026 - Code Compliance
Notice issued on March 30, 1998 for thirty (30) interior and exterior property
maintenance violations. Violations were corrected September 7,2001.
JOOF000185 - Fire Department
Notice issued on April 11 , 2000 for five (5) fire violations. Compliance was achieved on
August 29, 2000.
337 20th Street
JC00000910 - Code Compliance
Notice issued on December 9, 1999 for seven (7) exterior property maintenance
violations. All violations were corrected on April 9, 2002.
J99F0161 - Fire Department
Notice issued on June 19, 1999 for fire violations. Case closed on July 20, 1999.
JB00000844 - Buildina Department
Notice issued on March 31, 2000 for three (3) violations. Violations were corrected on
April 5, 2002.
635 Collins Avenue
JC00001170 - Code Comoliance
Notice issued on February 17, 2000 for one-hundred and seven (107) interior and
exterior property maintenance violations. The violations were corrected on February
12,2002.
Page 4
JC000001172 - Code Compliance
Notice issued on October 16, 1999 for seven (7) exterior property maintenance
violations. All the violations were corrected on January 24, 2002.
JC00001173 - Code Compliance
Notice issued on January 7,2000 for nineteen (19) exterior and interior property
maintenance violations. All violations were corrected on January 24, 2000.
J01 F00269 - Fire Department
Notice issued on May 31,2001 for seven (7) fire violations. Violations corrected as of
April 16, 2002.
J98F0114 - Fire Department
Notice issued on November 13, 1997 for one (1) fire violation. Violations corrected as
of April 16, 2002
JB0000688 - Buildina Department
Notice issued on January 10, 2000 for eight (8) building code violations. Violation
corrected on November 1,2000.
735 Collins Avenue
JC99045 - Code Compliance
Notice issued on March 30, 1998 for thirty (30) interior and exterior violations.
Violations were corrected on January 24, 2002. Total fine is $355,353.00.
JOOF000186 - Fire Department
Notice issued on April 11, 2000 for six (6) fire violations. Violations corrected on August
29, 2000.
~~_ -z-.tf'i or
To:
C I To Y 0 F M I A M I B E A C H
City Attorney's Officftt: C E! V E 0
Memorandum 02 AUG 19 Mi 8: 24
Robert C. Middaugh, Jr. CITY CLERK'~i:IWUgust 13;2002
Assistant City Manager
Rhonda L. Montoya, E~~\
Senior Assistant City AttorneylFire & Building Depts. Legal Advisor
lQ
From:
Subject: Mitigations of2925 Indian Creek Drive; 337 20th St., 735 Collins Ave., 727 Collins.
and 635 Collins Ave (Landmark Development Properties)
Bob: Regarding the above;..captioned, as the Fire and Building Departments were not involved in the
mitigation processes or recommendations, our Clerk of the Special Master never received the
settlement agreements for either' qfthese cases. We need to have a copy of the executed settlement
agreements, so that the cases nlaY be closed accordingly. In addition, it would be suggested that for
future global settlements which involve all departments, a breakdown should be made clear as to
what monies go to what cases and/or departments. It should not be left in the hands of a Clerk to
determine how the monies are divided.
FUrther, at the time of settlement, open fire and building cases remained as to the Landmark
Development Properties. It seems that Code is to do quarterly inspections and it appears that Code
will verify if all properties are in compliance. However, this is not legally correct. Only Fire and
Building Inspectors can verify if their respective department violations have been corrected, as they
have the appropriate certifications and licenses; officers in the Code Compliance Department do not
and therefore have no legal authority to close other departments' violations.
If you need clarification regarding the foregoing, or more information, please advise and I would be
more than glad to meet with you to discuss the process with regard to the Fire and Building
Departments. Thank . you.
RLM:mm .
c: Robert Parcher, City Clerk
Chief Ed DelFavero, Fire Marshal
Philip Azan, Building Official
Al Childress, Director, Code Compliance
Kerry. Hernandez,. Clerk, Special Master
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH FLORIDA 33139
CITY OF MIAMI BEACH
OFFICE OF THE CITY CLERK
CITY HALL
1700 CONVENTION CENTER DRIVE
TELEPHONE: 673-7411
August 23,2002
Mr. Carter McDowell; Esq.
200 S. Biscayne Blvd.
Ste. 2500
Miami, FI 33131
Re: Landmark Development Settlement
CtuJ>>
Dear Mr. ~well:
Attached is a copy of City of Miami Beach Resolution No. 2002-24905, approving a
settlement between Landmark Development and the City of Miami Beach for fmes
imposed on the properties located at 337 20th Street, 735 Collins Avenue, 727 Collins
Avenue, and 635 Collins Avenue.
Please acknowledge, in writing, receipt of this letter and the acceptance of the terms and
conditions in this resolution.
Sincerely,
~~ ~M~
Robert Parcher
City Clerk
RP/lb
Enclosure
c: Mr. Stanley Price, Esq.
Robert Middaugh, Assistant City Manager
F:\CLER\$ALL\LILL Y\LETIERS\2002\cartermcdowell..doc
OCT. -IS' 02(TUEl 14:43
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BILZIN, SUMBER. ET. AL
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P. 0021002
8lLZIN SUMBERG DUNN E3AENA PRICE & AXELROD LLP
A PMlTNER6MIP O~ PAOf'ESSION"1- ASSOCIATIONS
2600 F"IA5T uNIQN F'INANCIAL. CENTltA
200 SOUTH 1!I15CAYNIt BQU1-I:VARD . ~IAMI, F'L.DRIDA 33131-e33A
TI!:I.,"PHONE: 13(6) 374-71580 . FAX: 13DI513,...-71S8:!1
it-MAIl.: INf'O.BIL.1:IN.COM . WWW...II.~I...COM
BAQW~D: (lill'" 3DG-OO:ao
C,lft,r N. McDow,"', P.A.
Direct Dinl: (305) "5fJ-2355
Direct Fax: (305) 351-2239
E-mail: c...c:J(JIvd~rwlJihill.com
October 15,2002
Via F~lcsimile ~k U.S. Mail
Robert Parcher, City CLerk
Cily of Miami Beach
1700 Convention Center Drive
Miami Beach, Florida 33139
Re: 'Landmark Development Settlement
Dear Bob:
Please allow this letter to serve as our response to your letter dated August 23, 2002,
regarding ,h. above-refereneed seulemenl. On behalf of Landmarlt OevelopmenL, we
acknowledge ,.:eeipt, and accept lhe termS and conditions to Resolulion Number 2002-24905.
We apologize for the delay in responding. If you requ\re additional infonnation, please
feel fTee to contact me at (305) 350-2355.
cc: Robert Saland (via facsimile)
Stanley B. Price, Esq.
a; (LD~~~k.
Doc. #593592