2003-25159 Reso
RESOLUTION NO. 2003-25159
A RESOLUTION OF THE MAYOR AND CITY COMMISSION
OF THE CITY OF MIAMI BEACH, FLORIDA APPROVING A
SETTLEMENT BETWEEN THE CITY OF MIAMI BEACH
AND FIRST OCEAN RESIDENCE REALTY, LLC AND
AUTHORIZING THE EXECUTION OF ANY AND ALL
NECESSARY SETTLEMENT DOCUMENTS.
WHEREAS, First Ocean Residence Realty, LLC ("First Ocean") is the buyer of certain real
property comrnonly known as The Charles Hotel located at 1475 Collins Avenue, Miami Beach,
Florida (the "Property"); the Seller is Paul L. White, as Special Master pursuant to an Order in
Circuit Court Case No. 98-26315-CA-21 which concerns the partition and sale ofthe Property; and
WHEREAS, First Ocean and the City (the "Parties") desire to settle and resolve all
outstanding liens and rnonies due to the City in order to facilitate the sale of the Property to First
Ocean so that the Property will be developed and brought into full compliance with the Miarni Beach
City Code and other applicable laws; and
WHEREAS, the Parties consider it desirable that the liens be settled based on the terms and
conditions set forth in the letter frorn First Ocean to City Manager Jorge Gonzalez (the "Settlement
Agreement") which is attached hereto as Exhibit "A"; and
WHEREAS, it is in the best interest ofthe City to resolve these liens which are the subject
of the attached Settlement Agreernent.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA:
Section 1: That the City Cornrnission hereby approves the terms ofthe settlement as set forth in
the attached Settlernent Agreement, which is attached hereto and incorporated herein
by reference as Exhibit "A".
Section 2:
That the City Commission hereby authorizes all necessary City personnel to execute
any and all documents necessary to consummate and effectuate the terms of the
settlement as approved by the City Commission.
PASSED and ADOPTED this 19th ,day of
,2003.
ATTEST:
F:\atto\TURN\RESOS\First Ocean Residence Realty settlement letter.doc
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FORM &LANGUAGI
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FIRST OCEAN RESIDENCE REALTY, LLC
March 13,2003
Via Facsimile: 305-673-7782
Jorge Gonzalez, City Manager
City of Miami Beach
1700 Convention Center Drive
Miami Beach. Florida 33139
Re: The Charles Hotel, 1475 Collins Avenue
Settlement Agreement with the City of Miami Beach ("Settlement Agreement")
Dear Jorge:
First Ocean Residence Realty, LLC, ("Buyer") is the buyer, p~uant to a certain Real
Estate Sales Agreement ("Sales Agreement"), of certain real property commonly known as The
Charles Hotel located at 1475 Collins Avenue, Miami Beach, Florida (the "Property"). The
Seller under that Agreement is Paul L. White, as Special Master pursuant to Order Granting
Receiver's Motion to Appoint Special Master, dated December 19,2001, Case No.: 98-26315-
CA-21. The City of Miami Beach (the "City") has issued multiple recorded and unrecorded
liens and special assessments as well as violations and notices of noncompliance with various
City laws, codes, and regulations regarding the Charles Hotel (collectively, the "Liens"). Subject
to the City receiving, by , 2003 (the "Closing Date"), payment in the form of a
lawfirm trust account check or bank cashier's check in the amount of Five Hundred Seventy-Five
Thousand Dollars ($575,000.00), the Buyer and the Property will be released from any and all
liens, fines, assessments and/or other amounts due to the City as a result of the Liens, through the
Closing Date.
The Buyer intends to redevelop the Charles Hotel. The City agrees to give Buyer up to
eighteen (18) months within which to prepare the required plans and obtain the requisite
approvals in order to redevelop the Property ("Redevelopment Period"). The redevelopment of
The Charles Hotel shall serve to correct all outstanding code violations of whatever nature. In
order to help promote this redevelopment, the City further agrees that during such
Redevelopment Period, no further fines as to any violations existing as of the Closing Date shall
be assessed against the Property or Buyer, so long as Buyer (or any lender making a loan to
Buyer) is proceeding in a timely and expeditious manner with the redevelopment.
Notwithstanding the forgoing, Buyer agrees that in the event of a violation at the Property which
constitutes a hazardous or life safety condition, Buyer will correct such condition promptly upon
receipt of written notice of such condition from the City. In the event such hazardous or life
safety condition is not corrected as required by the City or if the Redevelopment Period exceeds
EXHIBIT A
Jorge Gonzalez, City Manager
March 13, 2003
Page 2
eighteen (18) months, then either condition shall constitute a repeat and irreparable or
irreversible violation of the Miami Beach City Code; all other code violations shall be treated as
repeat violations and shall carry the maximum fine allowable pursuant to Chapter 30 of the
Miami Beach City Code and Chapter 162 of the Florida Statutes.
The tenns of this Settlement Agreement shall be binding upon each of the undersigned
Parties and any and all of their agents, assigns, and/or successors in interest.
In the event that it becomes necessary for any reason to construe this Settlement
Agreement, it shall be construed as jointly prepared and written by the parties.
. Please confirm that these are our understandings by signing in the place provided below
and returning a signed copy to me. By signing this Settlement Agreement, First Ocean
Residence Realty, LLC, by its President, , and its Manager
, represent and acknowledge that they have been represented by
Counsel ' Esq. that the Settlement Agreement has been
fully explained by counsel, and that they have carefully read the Settlement Agreement and are
completely aware of its contents and legal effect.
Sincerely,
FIRST OCEAN RESIDENCE REALTY, LLC
By:
President
By:
Leon Cohen, Manager
The foregoing is hereby acknowledged and agreed.
The City of Miami Beach, a political subdivision
of the State of Florida
By:
Jorge M. Gonzalez, City Manager
1i!2: 45P FRCI1:
TO: 3056137002
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pb{~~PAUL L.WHITE
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Commercial k41 Estrde Consulting
Paul L. White. President
7960 SW 67th Terrace . Miami. FIorlda 33143-2622-
Pbone:~) 27lW1l0 . Ton Free: (88iI) 2.91-4W
Fax:(3n5}276{1762. ~
www.plwa.biz
March 6. 2003
Mr. Jorge Gonzalez
City Manager
Mr. Bob Middaugh. Jr.
Assistant City Manager
City of Miami Beach
1700 Convention Center Drive
Miami Beach. FL 33139
Re: The Charles Hotel, 1475 Collins Avenue
Dear Messrs. Gonzalez and Middaugh:
I am the Court-appointed Receiver of the Charles Hotel Condominium Association, Inc. in the
Circuit Court action styled Christopher Matthew Properties, Inc. v. The Charles Hotel Condo
Association, Inc., etc., et aL. Case No. 98-26315. I have also been appointed by the Circuit
Court as the Special Master to sell The Charles Hotel property for the benefit of the hotel's unit
owners. lienors and creditors.
It is my understanding that the City Administration has agreed to a settlement of all Charles
Hotel liens and fines for the sum ofS575.000.00. Since the proposed reduction is in excess of
$100,000.00. it is my further understanding that the sett1entent has to be approved by the City
Commission. .
As Receiver. I respectfully request that the matter of the proposed settlement be placed before
the City Commission for approval at the earliest possible Commission meeting. Please note that
time is of the essence since I am attempting. as Special Master, to close on a Court-approved
contract to 'sell the Charles Hotel property before the end of this month. and to procure the
necessary Court approvals before such closing in order to disburse sale proceeds to parties such
as the City of Miami Beach and others similarly situated.
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On behalf of the Circuit Court and the unit owners and creditors of the Charles Hotel, I thank
you for your immediate consideration and attention to this matter.
Sincerely yours.
CHARLES HOTEL CONDOMINIUM ASSOCIATION
"
~
By:
Paul L. White, As Court-Appointed ReceiV$', not
Individually, pursuant to Case No. 98-26315 CA.12
In the Eleventh Judicial Circuit Court, in and Cor
Miami-Dade County, Florida '.
cc: Robert Dixon. Esq.
Debora Turner. Esq.
Jose Casal. ~sq.
Mark: Aronson. Esq.
Scott Ortb, Esq.
Ron Rosengarten. Esq.
Ulysses Felder. Esq.
David Shear, Esq.
MIAl #1208918 vi
OFFICE OF THE CITY ATTORNEY
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MURRAY H. DUBBIN
City Attorney
Telephone:
Telecopy:
(305) 673-7470
(305) 673-7002
COMMISSION MEMORANDUM
FROM:
Mayor David Dermer and
Members of the CitY#JVommiS ion '
Murray H. Dubb~n\ I
City Attorney I \f\
DATE: March 19, 2003
TO:
SUBJECT: A RESOLUTION OF THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH,
FLORIDA APPROVING A SETTLEMENT
BETWEEN THE CITY OF MIAMI BEACH AND
THE CHARLES HOTEL AND AUTHORIZING THE
EXECUTION OF ANY AND ALL NECESSARY
SETTLEMENT DOCUMENTS.
Based upon the recornmendation of the City Administration, the attached
Resolution is subrnitted for consideration by the Mayor and City Cornrnission. The
Resolution authorizes the settlement of all pending liens against the Charles Hotel, which
is located at 1475 Collins Avenue. The arnount recommended by the City Administration
to resolve this matter is $575,000. This amount will cover the payment of all special
assessrnents against the property as well as a portion of the outstanding code compliance
fines and penalties. It is noted that representatives of the unit owners in the building may
desire to address the City Commission as to the amount of the settlernent. Since the total
amount of City liens against the property to be settled is in excess of $100,000, City
Commission approval is required. The settlernent of these liens is recommended in order
to facilitate the sale and closing of the Charles Hotel which has been a derelict building
for many years. In fact, prior efforts to sell the Hotel have been unsuccessful during the
course of the pending litigation against the property which included foreclosure and
partition actions. However, a potential purchaser, First Ocean Residence Realty, LLC,
has agreed to purchase and rehabilitate the building and bring it into full cornpliance with
all City code requirements, thereby improving the location with new development.
F:\attoITURNICOMMMEMOICharles Hotel settlernent.doc
Agenda Item
1700 Convention Center Drive -- Fourth Floor -- Miami Beach, Date
R7I.
g.'1-o3
5c!4N )tJ05-}SISfj
CITY OF MIAMI BEACH
OFFICE OF THE CITY ATTORNEY
MEMORANDUM
FROM:
Mayor David Dermer
Vice Mayor Luis Garcia, Jr.
Commissioner Matti Herrera Bower
Commissioner Simon Cruz
Commissioner Saul Gross
Commissioner Jose Smith
Commissioner Richard Steinberg
Jorge Gonzalez, City Manager
Murray H. Dubbin, City Attom,y 11M 1MJ~
Robert Dixon, Deputy City Attorn~; ~~
Debora 1. Turner, First Assistant City Attorney ~
TO:
SUBJECT:
Scott Orth vs. Christopher Matthews Properties. CMB. et al
11th Jud. Cir. Ct. Case No. 98-26315 CA 21
and
Scott Alan Orth. Trustee v. Christopher Matthews Properties. Inc.
and Miami-Dade Co.. Florida.
11th Jud. Cir. Ct. Case No. 99-25422 CA 21
(The Charles Hotel)
DATE:
April 9, 2003
Attached is trust account Check No. 7558 from Holland and Knight in the amount of
$575,000.00 regarding the above matters including lien foreclosures, bankruptcy
litigation, and partition proceedings. This is a significant conclusion to approximately
five years of litigation.
F:lalloITURNILITIGA TIIMA TTHEWSlcommission memo 575 K.doc
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7558
LAW OFFICES
HOLLAND & KNIGHT LLP
TRUST ACCOUNT. IOTA
BANK OF AMERICA
02992 FL
63,27,631
DATE
NUMBER
AMOUNT
~
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g
I
PAY
*$575,OOO.00f?J
*** FIVE HUNDRED SEVENTY-FIVE THOUSAND & 00/100 DOLLARS
04/08/03
I
11"00755811" I:Ob ~ ~OO 2771:
HOLLAND & KNIGHT LLP
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lWO SIGNATURES REQUIRED VOID AFTER 180 DAYS
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ro THE
ORDER OF
CITY OF MIAMI BEACH
19140-62
HOLLAND & KNIGHT LLP
DATE
PAY TO
CITY OF MIAMI BEACH
D'!:SCRIPTlON
AMOUNT
TRUST NAME
04/08/03 19140-62 ALLEN MORRIS
LIEN PAYMENTS/ALLEN MORRIS
19140-62
575000.00
CHECK DATE
CHECK NO.
CHECK AMOUNT
04/08/03
7558
575000.00
HOLLAND & KNIGHT LLP
troDEWXE BUSINESS FORMS 1+800-328-0304 www.delUlleforms..com