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Home My WebLink About2003-25108 Reso RESOLUTION NO. 2003-25108 A RESOLUTION APPROVING A SETTLEMENT REGARDING LIENS ON THE PROPERTY AT 430 SOUTH SHORE DRIVE OWNED BY MICHAEL STERN PROVIDING THAT LIENS IN THE AMOUNTS OF $885,681.08 BE SETTLED FOR THE AMOUNT OF $67,600. WHEREAS, the property at 430 South Shore Drive has liens for City fines and services assessed against the property in the amount of $885,581.08; and WHEREAS, the owner of the property responsible for the fines and various liens associated with the property is recently deceased and the subject property was purchased by Mr. Michael Stern; and WHEREAS, Mr. Stern has entered into settlement discussions with the City regarding the outstanding liens on the property in an effort to provide clear title and allow the demolition of the dilapidated structure and construction of a new home, thereby improving the neighborhood; and NOW, THEREFORE BE IT DULY RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA that a settlement for outstanding City liens at the property of 430 South Shore Drive in the amount of $885,581.08 is hereby approved (Special Master cases JCE 93209 and JCE 93311, and invoice #1352 and Building Department costs recorded at #19827 page 2542 and #2005 page 1339) upon payment of the sum of $67,500 by Mr. Michael Stern to the City of Miami Beach; and further that the City Manager shall be authorized to execute any and all necessary documents to complete such lien release and settlement. PASSED AND ADOPTED THIS ATTEST: City Clerk T:~AGENDA~002~DEC1102\CO NSE NT~michaelstern-res.doc 8th DAY OF January , 2002 Dermer Ai~OYED A~ TO FORM & LANGUAGE PAUL H. FREEMAN Attorney At Law 1840 WEST 49th STREET SUITE 410 HIALEAH, FLORIDA 33012 TELEPHONE 305-827-3331 FAX 305-826-2092 OFFICE November 25, 2002 Robert Middaugh Assistant City Manager City of Miami Beach 1700 Convention Center Drive Miami Beach, Florida 33139 By Fax & Mail 430 South Shore Drive; Normandy Shores Liens against Edward Stem, et. al. Dear Mr. Middaugh: I want to thank you and Robert Dixon for meeting with Michael Stem and me regarding the liens on the above described real property in Normandy Shores, City of Miami Beach, Florida. Although I understand the position of the City and the nature of the violations of Edward Stem, et. al., my client has worked with the City in order to resolve the violations and keep the Property in compliance, and will continue to work with the City to maintain this property in compliance with the City codes. As a follow up to our meeting, my client would like to formally offer the City the sum of Sixty Seven Thousand Five Hundred ($67,500.00) Dollars to resolve the outstanding liens on the above described property. My client understands that in order to finalize any settlement in this matter, the offer must be presented to, and approved by, the City Commission. We would request that this offer be presented at your earliest convenience. Again we thank you for your efforts in order to try to resolve this matter on a basis that is fair to the City and to my client. If there is any additional information you need or if you have any questions regarding this offer, please feel free to contact me. PHF/aln ' '~' cc: Robert Dixon, Esq. Michael Stem ' Jan 07 03 03:14p Michael Stepn 305-8G1-5854 p.1 Michael Stem 5774 Pine Tree Drive Miami Beach, FI. 33141 Phone: (305) 864-5757 Fax: (786) 276-8148 January 7, 2003 Robert Middaulgh City Of Miami Beach 1700 Convention Center Drive Miami Beach, Florida 33139 Re: 430 South Shore Drive Dear Mr. 'Middaugh, As per my conversation with Sheila 1 am requesting that you put on the Commission Agenda for this week thc settlement we agreed on for the amount of 67,500. ! woald appreciate you getting tills resolved tbr mc m that [ can move forward. CC: llene Chafetz '3or; .~,- '~ '3 .- ? ? ? CITY OF MIAMI BEACH COMMISSION ITEM SUMMARY Condensed Title: IA resolution approving a settlement regarding liens on the property at 430 South Shore Drive owned by Michael Stern providing that liens in the amounts of $885,581.08 be settled for the amount of $67,500. Issue: IShall the City Commission approve a settlement regarding liens on the property at430 South Shore Drive? Item Summary/Recommendation: Since 1991 liens on the property at 430 South Shore Drive have accumulated as a result of property maintenance violations in the amount of $885,581.08. The liens where levied against then the property owner Mr. Edward Stern, recently deceased. Prior to the purchase of the property by Mr. Michael Stern the Administration entered into settlement discussions with Mr. Stern regarding the reduction of the lien associated with the property. During the course of the negotiations Mr. Stern made the decision to acquire the property and just recently the Administration has concluded the settlement discussions with an agreement between the Administration and Mr. Stern. The property at 430 South Shore Drive was purchased by Mr. Michael Stern from the estate of Edward Stern in the amount of $140,000 as such the settlement amount of $67,500 is 48% of the fair market value of the property in question. The item was discussed at the December 11th Commission Meeting. The property owner appeared and verified his intention to demolish the building and build a new structure. Subsequent to the December 11th Commission Meeting, the building has been demolished by Mr. Stern. The owner asked to defer Commission action on the item until the January 8, 2003 Commission Meeting to allow consultation with the Administration. The meeting was conducted and the Administration recommends approving the resolution. Advisory Board Recommendation: N/A Financial Information: 2 Finance Dept. T~I City Clerk's Office Legislative Tracking: I Robert C. Midaugh Sign-Offs: AGENDA ITEM DATE COMMISSION MEMORANDUM To: Mayor David Dermer and Members of the City Commission Date:Janua~ 8,2003 Fl'om: Subject: Jorge M. Gonzalez\ ., City Manager A RESOLUTION APPROVING A SETTLEMENT REGARDING LIENS ON THE PROPERTY AT 430 SOUTH SHORE DRIVE OWNED BY MICHAEL STERN PROVIDING THAT LIENS IN THE AMOUNTS OF $885,581.08 BE SETTLED FOR THE AMOUNT OF $67,500. ADMINISTRATION RECOMMENDATION Adopt the Resolution. ANALYSIS Since 1991 liens on the property at 430 South Shore Drive have accumulated as a result of property maintenance violations in the amount of $885,581.08. The liens were levied against the then property owner Mr. Edward Stern, recently deceased. Over the period of time the fines were being assessed to the property in question, the property became seriously dilapidated and an eyesore for the neighborhood. Prior to the purchase of the property by Mr. Michael Stern (no relationship to Edward Stern) the Administration entered into settlement discussions with Mr. Stern regarding the reduction of the lien associated with the property. During the course of the negotiations, Mr. Stern made the decision to acquire the property and just recently the Administration has concluded the settlement discussions with an agreement between the Administration and Mr. Stern. The property owner appeared briefly at the December 11, 2002 Commission Meeting to discuss the item. The owner represented his intention to demolish the property, build a new structure and reside in same. The owner indicated that a for sale sign on the property was to test the market, but he still intended to reside on the property. Subsequent to the meeting of December 11th, the owner completed the demolition of the dilapidated structure as represented. The attached letter from Mr. Stern's attorney directed to Robert C~ Middaugh, Assistant City Manager indicates that he will agree to a settlement amount of $67,500 to resolve the outstanding City liens associated with the property which total $885,581.08. The Administration believes that this is a fair and equitable settlement given the history of the property and the value of the property in question. The property at 430 South Shore Drive was purchased by Mr. Michael Stern from the estate of Edward Stern in the amount of $140,000 as such the settlement amount of $67,500 is 48% of the fair market value of the property in question. JMG\RCM~sam T:~AGEN DA~003~jan0803~consent~michaelstem.doc . l~anl(ot America '~ 010g~8 00002 R ¢.~l~t~:r { Purcliascd ='~'SiXTY SEVEN ' n~c ~n " Pa) r:o. 29756C