HomeMy WebLinkAbout2002-25077 Reso
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RESOLUTION NO. 2002=2.50'77
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF
THE CITY OF MIAMI BEACH, FLORIDA, APPROVING A
SETTLEMENT AGREEMENT BETWEEN ECKO.COMPLEX, LLC,
D/B/A ECKO UNL TD., ("ECKO") AND THE CITY OF MIAMI
BEACH REGARDING OUTSTANDING VIOLATIONS OF THE
CODE OF THE CITY OF MIAMI BEACH AND PROVIDING THAT
THE FINE AMOUNT BE REDUCED FROM $579,484 TO $50,000
AND FURTHER THAT A $50,000 DONATION BE PROVIDED TO
THE CITY WITH THE TOTAL OF $100,000 INTENDED TO BE
USED FOR THE PURPOSE OF COMPLETING A SKATE PARK
ON A SITE TO BE PROVIDED BY THE CITY AND TO PROVIDE
ECKO NAMING RIGHTS FOR SAID SKATE PARK WITH THE
APPROVAL OF THE COMMISSION.
WHEREAS, Ecko.Complex, LLC, d/b/a Ecko Unltd., ("Ecko") has been
cited by the Code Compliance Division of the City of Miami Beach, ("The City")
for violations in the City Code associated with activities undertaken during
Memorial Day Weekend in 2001; and
WHEREAS, the fines associated with the Memorial Day Weekend in 2001
have accumulated in the amount of $579,484; and
WHEREAS, the City and Ecko have undertaken discussions to resolve the
outstanding fines and violations; and
WHEREAS, the discussions between the City and Ecko have resulted in a
mutually beneficial and amicable settlement of the outstanding violations that
provide a long term benefit to the community and to the company; and
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND
THE CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that a
Settlement Agreement attached hereto as Exhibit "A" is hereby approved by the
Mayor and City Commission which provides for a $50,000 settlement of
outstanding violations of the City Code alleged to have been committed by Ecko
and further providing that a $50,000 donation be provided to the City with the
total of $100,000 intended to be used for the purpose of completing a skate park
on a site to be provided by the City and to provide Ecko naming rights for said
skate park with the approval of the Commis . n.
ecember ,2002.
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 the City of Miami Beach and Ecko.Complex,
LLC, regarding outstanding violations of the City Code and to provide a settlement thereof in the amount of
$50,000 and also to accept a donation of $50,000 with the total of $100,000 intended to be used for the
construction of a skate park within the community.
Issue:
Shall the City enter into a Settlement Agreement with Ecko.Complex, LLC, to resolve outstanding alleged
sign violations and also to recognize and accept a donation for the construction of a skate park?
Item Summary/Recommendation:
In the 2001 Memorial Day Weekend a number of companies distributed or posted flyers or stickers in
violation of the City Code. One such company that was cited for violations was Ecko.Complex, LLC,
(Ecko). In settlement of the outstanding sign violations and also to build a relationship between the
Company and the City that will benefit both in the future, a Settlement Agreement has been negotiated that
provides a $50,000 settlement for the Code Violations and a $50,000 donation. The total of $1 00,000 is
intended to be used for the construction of a skate park within the community. The location of the skate
park is to be selected by the City and the skate park would be named by Ecko as a result of the donation.
The Agreement is a mutually beneficial and amicable settlement to an otherwise adversarial Code
Compliance matter. This item was considered by the Commission at the November 13th meeting, and
changes were recommended that have been incorporated. Approval of the Settlement Agreement is
recommended.
Advisory Board Recommendation:
I N/A
Financial Information:
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City Clerk's Office Legislative Tracking:
I Robert C. Middaugh
Si n-Ofts:
Department Director
F:\CMGR\$ALLIBOBlEckoilemsumm2.doc
Assistant city Manager
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AGENDA ITEM
DATE
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CITY OF MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139
www.ci.miami-beach.fl.us
To:
From:
Subject:
COMMISSION MEMORANDUM
Date: December 11, 2002
Mayor David Dermer and
Members of the City Commission
Jorge M. Gonzalez ~. A..e..r-
City Manager () f'- I
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, APPROVING A SETTLEMENT
AGREEMENT BETWEEN ECKO.COMPLEX, LLC, D/B/A ECKO UNL TD.,
("ECKO") AND THE CITY OF MIAMI BEACH REGARDING
OUTSTANDING VIOLATIONS OF THE CODE OF THE CITY OF MIAMI
BEACH AND PROVIDING THAT THE FINE AMOUNT BE REDUCED
FROM $579,484 TO $50,000 AND FURTHER THAT A $50,000 DONATION
BE PROVIDED TO THE CITY WITH THE TOTAL OF $100,000 INTENDED
TO BE USED FOR THE PURPOSE OF COMPLETING A SKATE PARK ON
A SITE TO BE PROVIDED BY THE CITY AND TO PROVIDE ECKO
NAMING RIGHTS FOR SAID SKATE PARK WITH THE APPROVAL OF
THE COMMISSION.
ADMINISTRATION RECOMMENDATION
ANALYSIS
Adopt the Resolution.
At the November 13, 2002 City Commission meeting, a Settlement Agreement between Ecko.Complex, LLC
("Ecko") and the City of Miami Beach for outstanding Code violations was discussed. Attached please find a
copy of the November 13th staff report regarding this Agreement.
As a result of several concerns expressed by the Commission during the discussion, the Settlement
Agreement has been modified. Specific changes that have been incorporated into the Agreement include the
following:
. A term of fifteen (15) years has been added as the time limit for the naming rights that are provided in
the Agreement for Ecko. The Agreement also incorporates language that commits the City to
negotiate an extension of said time; however, the City is not obligated to agree to any extension.
. A provision has been added to the Agreement which makes clear that the City may at its discretion at
any time cease utilization of the skate park.
. A provision that transfers all warranties of fitness of purpose and safety to the City.
With the changes incorporated, it is recommended that the City Commission approve the Settlement
Agreement with Ecko for a provision of a skate park to the community.
JMG/RCM/sam
F:\CMGR\$ALLIBOBlEckocomm2.doc
Attachments
CITY OFMIAMl BEACH
CITY HALL 1700 CONVENTION CENTERORIVE MIAMI BEACH. FLORIDA 33139
1WIW,p.IlIlli~.f1.ul
To:
From:
SubjKt:
COMMISSION MeMORANDUM
Mayor DavidOermer and
Members Of the City Commis&ion
Jorge M. Gonzalez \ ~
CIty Manager 0 . 0
A RESOLUTION OF THEMAYQR dDCITYCOMMI$SION OF THE CITY
OF MIAMI BaACH, FL... . . APPROVING A SETTLEMENT
AGREEMENT BETWEEN eo . EX. LLC, OJ8/A EC~O UNl TO.,
("ECKO") AND THE CITY MIAMI BEACH REGARDING
OUTSTANDING VIOLATIONS OF THE CODE OF THE CITY OF MMI
BEACH AND PROVIDING 'tHAT. '.FfNE AMouNT BE REDUCED
FROM $579,484 TO $SO,ooOAND~ ..R THAT A. . 000 DONA1l0N
BE PROVIDED TO THE CITYW ..OTAL OF $ OOINTENDeD
TO BE USED FOR THE PURPOSE . MPLET4NG A SKATE PARK ON
A SITE TO BE PROVIDED ay . .. CITY AND TO PROVIttE eCKO
NAMING RIGHTS FOR SAID SKATE PARK WITH THE APPROVAL OF
THE COMMISSION.
Date: Noverriber 13, 2002
._I'ftlAT'ON'.ReCCMuENOAnON
AdQpt.th$Resolution.
ANALYsts
Durin~ ~M$rI1oriat DayW_k$ndin2001, the~!il)(Periencedelsj9n~ntimpa(:tfrom
the illegal or inapp~opriate<iifltr:ibution of prorn()tiQi';lalJ1yers and$tiCk",$a~()Oiatedwith
different even~ ol;currjngol'l or near Miami~ph... ASP~ft of theCQde. Enfol'CEll'l1ent
efforts for that weekend. ~9ko~Complex~ LLC, d.Ib!fi ~~oUnltd" (Eeko~wasCited t09li'.ther
with a number of other companies for violations of the City's Code regardingfhe posting of
signs on public property.
In the specific case of Ecke, th~majority of violatiQ'o$wereassOciateciyJlth the distribution
and use ofalargenumberQf2 inch by 2 inch~~ick~~.t1~~rii'19.t~ename ofEc~o Unltd. The
sheer number of the stic.kers at the City's ~f~r>f'~~Q().O()per stiCker resulted. in a fine
levied againl!lt Eeko of$Q59;610. A sel;<mdnotij:')8ohiolation was also issued for stickers
in the amount of $19,874 fora total of $579,484.
Ecko has m81~ined that they are not guilty of avjp.ll\I~en oftheCiW's CodeOrdiliances
inasmuch as their employees did not direC?;tly,p:'~~~stk?kersin question. on public
property, and further that there were esnu~il'lg;Ct~~q;t~tance$ inasmuch as ttrestickers
were stolen from a company vehicle. ecko~... mi;linl:ained that the City. has no
awthority to prosecute Ecko under the City Codet cc nelect as there was not a provision
343
in the Code that. allowed prosecution of benefICiaries of the illegal display of $tickers on
public property. The City has $ubsequentlychangecHhe City COde to speqifically reference
the beneficiary of any iIlegalsig nage or posting at a specific violation in order to clarify this
part of the COde.
Since the Memorial Day 2001 event, the City has been in discussions with Ecko on how to
resolve the outstanding fines. Dissussions betwe$n the parties over time moved from an
adversariallitigious posture to onf;lln which each of the partiesrecqgnlzethatthere may be
a mutually beneficial and amicable agreement that could be reached. . The result of the
discussions between the parties is embodied in the attached Settlement Agreement and is
a positiveapptoach to the problem.
The Settlement Agreement recognjzes thatthere may be a quEtstiol'ulble ability by the City
to s~ccessfullyprqsecutetheoumtanding vifjlations againstEOkOa~Qprovidesa $50,000
settlement to the City for the fines in question. In and of itself. t~ei$50,OOO settlement is
substantiatas gene~llythe City has a poor record of collecting these types oHinesfrom
out-of-area. companies. More signfficantly. the Agreementprovi~es that to recqgnjze the
desire of the. parties to enter into a long terrtl and cooperativearrahg~entthata $$0.000
donation is to be provided to the City to facilitate the constructiqnof a skate park. The
Agreement provides that the $1 00,900 total of'the.settlementanddonation amounts will be
used byEcko to build the City a skate park ina place chosen by the City Within a 24 month
period of time. Within 36 months, the City must have a site prepared for (paved)
construction by Ecko.
In the event that the CUy cho~s nolto bUild a skat~park, OT can not pick a site within 2
years, the Agreement provjdesthatthe$50,ooOsettlementwillbe retained by the City in
full satisfaction of outstandinglienslfines and the donated $50,000 will be retumed bEcko.
Ecko hci$ agreed to assl$t the City with constl'Uction by providing for the design and
actually ..arranging to nave a contractor agreed upon by the City and Ecko build the facility
under Ecko's direction.
As the Commission is aware, thereeent report ofthe61ue Rtbbo~ Con,mitteeto review the
Parks and Recreation System recQrnmendedasa highpriolity ~ construcijon ofa skate
parkwithin the community. ThisAgreementVoloul~ a~ist in $atl$fyi~g thtiit reqtlirementand
provide to the City a much needed facility that woulclbe of beneflttothe community.
Ecko benefits from the Agreement in that they seil a linEl of clothing aime(j at young people
In the age bracket most heavilya$SfJciated with skateb~ardin~ and they also own a
subsidiary company that builds skate bOards. Tothalend. the Company has ~.I'essed an
interest in utilizing the facility for future commercial or photographic promotions that would
further benefit both parties.
Ecko also maintains a relationship with a number of companieS thatm~ht have an interest
in paying the City for advertising that WQulcI be attached to the sk&itepark. Forexample:
shoe or skate board companies that promoteto,p()t$~~ltI$8t$Of the skate park facility
might be willing to buy a banner or advertisingpatlel8t thefacititythat would help defray
any operating costs.
344
The Agreement also reflects that Ecko. as part of the donation of the $50 ,000 for the skate
park is granted the ability to name the skate park. The name of the skate park would be
subject to final approvaJby the City Commission and is consistent with requirements of
facility naming for which a donation has been provided.
The Settlement Agreement takes what otherwise was an adversarialenforcement action
and tumsit into an exciting and mutually beneficial opportunity between the CitY and a
private company. The community is able to receive the immediate benefit of a skate park
and to expand business relationships and opportunities on Miami. Beach with the Ecko
Companies and subsidiaries.
The Settlement Agreement tepresli!nts a very positive m~QC1 in whieh to resolve an
outstanding issue to the benefit of the community and approval of said Agreement is
recommended.
JMG/RCMlsam
Eckoc:on .memo.doc
Attachment
345
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ATTOHNEYS AT L!\.W
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03 JAN I 0 PH II: I 6
L i i Y [,1 i\ N E F:' S
OFFtCE
MEMORANDUM
Via Hand-Deliverv
To Bob Middaugh
From Gary S. Reshefsky
Date January 9, 2003
Re Ecko
Enclosed please find 3 original Settlement Agreements executed by Ecko. Please return a
fully executed original to me. Should you have any questions, please contact me at (305) 579-
0737.
EncIs.
.200d -UtJ77
I SETTLEMENT AGREEMENT I
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This Settlement Agreement is hereby made and entered into as of this ~day ~ 2002, by
and between Ecko.Complex, LLC, d/b/a Ecko Unltd., ("Ecko") a New Jersey limited liability
company with an address at One Martin Avenue, South River, New Jersey 08882, and the City
of Miami Beach, a Florida municipal corporation (the "City");
Witnesseth
WHEREAS, the City has issued to Ecko two (2) citations, numbered CVOlO00959, and
CE020000556 (the "Citations"), citing Section 82-412 of the Code of the City of Miami Beach,
prohibiting the posting of signs on utility company property or public property (the "Sign
Ordinance"), one of which was not appealed by Ecko to the City of Miami Beach Special
Master; and
WHEREAS, Ecko sought mitigation and settlement of fines imposed based on its belief and
defense that service of the Notice of Violations (NOV) was improper and that it was not guilty of
a violation, and denies liability under these NOVs and under the Sign Ordinance; and
WHEREAS, for the purpose of promoting their mutual interests, and establishing a positive
relationship between Ecko and the City, and for the purpose of amicably settling all outstanding
issues and fines.
THEREFORE, for and in consideration of the mutual promises contained herein, and other good
and valuable consideration, in hand paid, the receipt and sufficiency of which are hereby
acknowledged, Ecko and the City agree as follows:
1. Recitals. The recitals set forth above are true and correct and are incorporated herein by
this reference.
2. Settlement Amount. In consideration of the release set forth in Section 11 hereto, Ecko
will furnish a skate park for the City (the "Skate Park"), in accordance with the terms of
this Settlement Agreement. Within 10 days of the execution of this Agreement, Ecko
shall pay to City $50,000 (the "First $50,000"), which City shall place in an interest
bearing escrow account with interest accruing to the City. While it is the City's intention
to build a skate park with the settlement amount and funds further defined in the
agreement, if the Skate Park does not receive permission from the City Commission to be
constructed in the manner set forth herein within time frames specified in Section 4 of
this Agreement, then such $50,000 will be released to the City and constitute a full and
complete settlement for all outstanding code enforcement matters as defined herein.
3. Donation Amount. To assist the City in the completion of a Skate Park, Ecko will
provide to the City a donation as defined herein. Within 90 days after execution of this
Agreement, Ecko shall deposit a second $50,000 (the "Second $50,000) into an interest
bearing Greenberg Traurig escrow account. Any interest earnings shall be retained
within the account and shall be used for the Skate Park construction I. These funds, along
with the First $50,000 will be drawn upon by the City to pay invoices submitted by Ecko
to construct the Skate Park. If the City has not approved the Skate Park including naming
rights as hereinafter described within the time frames specified in Section 4 of this
1 If the City elects to construct the Skate Park, any excess interest shall accrue to the City.
Settlement Agreement
F:\cmgr\$ALL\BOB\final draft Ecko settlement.DOCPage 1 of 4
Agreement, Greenberg Traurig shall release the Second $50,000 and any interest accrued
hereto to Ecko.
4. Time Frame. The site for the Skate Park must be selected and approved by the City
Commission, cleared, paved, and ready for construction within 26 months after execution
of this Agreement.
5. Other Offers. The City may solicit, entertain and select other offers for the construction
and naming of a skate park after execution of this Agreement, and before Ecko receives
permission from the City Commission to be constructed.
6. Location and Construction.
6.1 The City shall choose the site for the Skate Park and obtain all necessary
government and community approvals. At the City's cost, the City shall obtain
all necessary construction permits to construct the Skate Park. The site provided
by the City for the Skate Park will be a smooth paved surface, and the condition
of the pavement will be in a form reasonably acceptable to Ecko.
6.2 The land provided by the City for the Skate Park may be a portion of a larger
contiguous parcel of land. (The larger parcel shall be referred to herein as the
"Parcel"). The parties acknowledge and agree that there may be other amenities
on the Parcel, in addition to the Skate Park. The design, manufacture,
construction, and installation of such other amenities are the sole obligation of the
City.
6.3 The City shall furnish Ecko with accurate site plans of the Parcel, and any other
information necessary for the design and construction of the Skate Park, along
with geotechnical studies, if necessary.
6.4 Within 10 days after receipt of the site plans, at Ecko's cost, Ecko shall propose
two designs for the Skate Park with a construction budget of approximately
$100,000.00. Such designs will be subject to the City's approval. The designs to
be submitted will provide areas to display advertising in the Skate Park.
Ecko shall be responsible to engage the contractor. The contract shall
provide a gross maximum price; Said contract shall be subject to the
approval of the City.
6.5 Upon approval of the plans by the City's and all other required municipal
approvals, Ecko' s contractor shall construct the Skate Park in accordance with the
approved plans. Contractor shall submit invoices to Ecko and the City which
shall be paid by the City from escrowed funds; additionally, on request from the
City, Greenberg Traurig shall also release to the City from the escrow account
sufficient funds to pay invoices for the Skate Park construction. The City shall
have the sole discretion to determine from which escrow account an invoice shall
be paid. The payment must be approved by an Ecko representative and a City
Manager Representative prior to payment from either fund. The contractor will
be properly licensed and will furnish appropriate insurance and bonds for the
work. The City shall have the right to approve the contractor. The City shall
obtain any and all necessary permits for the work.
Settlement Agreement
F:\cmgr\$ALL\BOB\final draft Ecko settlement.DOCPage 2 of 4
6.6 Upon final completion of the Skate Park: (a) all right and title to the Skate Park
capital improvements, fixtures and personal property shall be assigned to the City
by Ecko, subject to the covenants contained in this Settlement Agreement; (b) the
City shall be solely responsible for insurance and maintenance of the Skate Park;
and (c) Ecko shall have no further obligations with regard to the Skate Park
whatsoever, except as set forth in this Settlement Agreement.
6.7 Ecko will assign all designer, contractors, subcontractor or manufacturer
warranties to the City; including warranties of fitness of purpose and safety.
Except for those warranties assigned to the City, Ecko disclaims any oral or
implied warranties, with respect to the Skate Park.
6.8 Ecko's obligation to construct the Skate Park, exclusive of the cost of design will
be capped at the $100,000, plus any interest earnings, as set forth above. The City
will. only be responsible for any costs of construction in excess of $100,000,
which results from approvals granted by the City.
6.9 After all approvals are obtained from and by the City, Ecko will have 120 days to
complete construction of the Skate Park.
7. Advertising. City may at its sole discretion sell advertising rights within the Skate Park.
Revenues raised from such advertising may be used to fund either the construction of the
Skate Park in excess of the $100,000 contributed by Ecko or the operations of the Skate
Park; any remaining funds shall belong solely to the City.
8. Release. Except for the First $50,000, Ecko will be released from obligations contained
herein if the City does not provide Ecko with a ready site within time frames specified in
Section 4 of this Agreement.
9. Naming and Publicitv. In consideration of the donation of money and professional
services set forth herein, the City hereby grants to Ecko any and all rights to name the
Skate Park. The City shall obtain any and all necessary City approvals for the name
selected by Ecko, including approval of the Community Affairs Committee, as set forth
in Section 82 of the City Code. The naming rights granted herein: (a) shall continue so
long as the Skate Park is used as a skate park; and (b) so long as Ecko is in existence but
for a period not to exceed 15 years commencing at the time the Skate Park is opened to
the public; and (c) may be assigned with the approval of the City Commission at its sole
discretion. Ecko or its assignee may change the name of the Skate Park at any time with
the approval of the City Commission at its sole discretion. In the event that the name of
the Skate Park is changed by Ecko or its assignee then said parties shall fully compensate
the City for the cost of a new sign to be erected on the Parcel, but that shall be the limit of
the liability of Ecko or its assignee. The City shall refer to the name of the Skate Park in
its website and City literature. The Skate Park may be denoted by an appropriate sign,
which shall not exceed (7 ft x 11 ft).
10. Agreement to Negotiate for an Extension. The City agrees to negotiate with Ecko for up
to a 5 year extension of the rights set forth in paragraph 9 above. Ecko must exercise the
its desire to negotiate in writing, by certified mail, return receipt requested, to the then
City Manager, no earlier than 730 days nor later than 180 days prior to the termination of
Settlement Agreement
F:\cmgr\$ALL\BOB\final draft Ecko settlement.OOCPage 3 of 4
IN WITNESS WHEREOF, this Settlement Agreement is made and entered into as of the day and
year first written above.
WITNESSES:
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Name: At\~ C. v... 'S', \~"
Name:
WITNESSES:
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Name: S'\la..h;"" A. mf\8s
Approved as to form and language
and legal sufficiency
Ecko Complex, LLC
bY:~
City of Miami Beach
By: 9~~~
Name: {J J C)':5~ GI9I'/z..M~?.-.
Title: (!~ ,L-( ~Do::J ~
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Date
Settlement Agreement
F:\cmgr\$ALL\BOB\final draft Ecko settlement.DOCPage 5 of 4
--'II
Via UPS-Next Dav
Robert Middaugh
1700 Convention Center Drive
Miami, Florida 33139
Re: Miami Beach Violations-Ecko
Dear Bob:
;)00 ~-, '2S'b-n
THE ECKQ UN LTD. co.
1 Martin Avenue
South River,/, NJ 08882
732., 43<!. 5400 ph
732. 432, 5410 fax
www.ecko.com
~
January23,2003
Enclosed please find the first payment of $50,000.00 in accordance with our
Settlement Agreement. We lo?k forward to working with the City on this projectand if
you ever have any questions or comments, please contact me. .
MPUacd
Enclosures
Cc: Gary Reshefshy
'*' Greeberg Traurig. P.A.
1221 Brickwell Avenue
Miami, Florida 33131
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Michael Lynch ,
VP Legal! Assistant General. Coun~el
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Fifty Thousand and 00/100 Dollars
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City Of Miami Beach
City Hall
1700 Convention Center Drive
Miami Beach, FL 33139
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Enclosures
Cc: Gary Reshefshy
>.l' Greeberg Traurig, P.A.
1221 Brickwell Avenue
Miami, Florida 33131
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