Resolution 2020-31509 RESOLUTION NO. 2020-31509
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI
BEACH, FLORIDA, REAFFIRMING THE CITY'S COMMITMENT TO SAFEGUARD
THE DEAUVILLE BEACH RESORT (THE "DEAUVILLE"), WHICH IS A
CONTRIBUTING BUILDING WITHIN THE NORTH BEACH RESORT LOCAL
HISTORIC DISTRICT, AND LOCATED AT 6701 COLLINS AVENUE; DIRECTING
THE CITY MANAGER AND CITY ATTORNEY TO INVESTIGATE AND PURSUE
ANY AND ALL ADDITIONAL AVAILABLE ENFORCEMENT AND LEGAL
REMEDIES WITH REGARD TO THE DEAUVILLE INCLUDING, WITHOUT
LIMITATION, WHATEVER ADDITIONAL REMEDIES THE CITY MANAGER AND
CITY ATTORNEY DEEM NECESSARY, BOTH AS AN ADMINISTRATIVE MATTER
AND IN THE CONTEXT OF THE PENDING LITIGATION, TO FULFILL THE CITY
COMMISSION'S MANDATE THAT THE LITIGATION BE PROSECUTED TO THE
FULLEST EXTENT POSSIBLE; FURTHER DIRECTING THE BUILDING DIRECTOR
AND CODE COMPLIANCE DIRECTOR, IN CONSULTATION WITH THE CITY
ATTORNEY, TO IDENTIFY ANY OUTSTANDING CITY CODE AND FLORIDA
BUILDING CODE VIOLATIONS AT THE DEAUVILLE PROPERTY, AND PURSUE
ANY AND ALL REMEDIES AVAILABLE UNDER THE CITY CODE, FLORIDA
BUILDING CODE, OR STATE LAW, IN ORDER TO SECURE THE PROPERTY,
PROTECT THE HISTORIC DEAUVILLE BEACH RESORT BUILDING, AND
MITIGATE ANY PUBLIC NUISANCES ON THE PROPERTY; AND FURTHER,
DIRECTING THE CITY ATTORNEY OR HIS DESIGNEES TO MEET INDIVIDUALLY
WITH THE MAYOR AND CITY COMMISSIONERS, IN THE NEXT THIRTY (30)
DAYS, TO PROVIDE THEM WITH AN UPDATE OF THE LITIGATION.
WHEREAS, the Deauville Beach Resort is a 538-room ocean front hotel located at 6701 Collins
Avenue, Miami Bach (the "Property"), owned by Deauville Associates, LLC, and operated by Deauville
Associates, LLC, Deauville Hotel Property, LLC, and Deauville Hotel Holdings, LLC (collectively,
"Deauville"); and
WHEREAS, the Deauville Beach Resort's iconic design is described as "Post War Modern" and,
more recently, "Miami Modern" (MiMo), a style that picked up where Art Deco left off with the added
influences of a booming post World War II economy, new technologies, the prevalence of the redesigned
automobile, and a feeling of national optimism; and
WHEREAS, the Deauville Beach Resort was a favored venue for many notable entertainers of
the 1950s and 1960s, including Frank Sinatra, Sammy Davis, Jr., and Dean Martin, and is known for
hosting one of the most significant events in the history of popular music: The Beatles' performance on
The Ed Sullivan Show on February 16, 1964; and
WHEREAS, the Deauville Beach Resort is listed on the City's Historic Properties Database as a
"Contributing" structure, located within the North Beach Resort Local Historic District; and
WHEREAS, in July 2017, the Property was rendered uninhabitable due to extensive damages
caused by an electrical fire at the property, resulting in the closure of the hotel; and
WHEREAS, the Deauville Beach Resort has not re-opened since its closing in July 2017; and
WHEREAS, since the hotel's closing in July 2017, the Deauville has not undertaken any
substantial remedial measures at the Property, causing the Property to deteriorate, and jeopardizing the
structural integrity of the historic "Contributing" structure; and
WHEREAS, on February 5, 2019, the City filed a complaint against Deauville Associates, LLC,
for failure to maintain the Property, seeking injunctive relief, damages, and appointment of receiver; and
WHEREAS, in August 2019, the City filed a Renewed Motion for Appointment of Receiver and
Temporary Injunction and Motion for Sanctions and Compliance with Court Orders, setting forth that
Deauville's continuing failures to perform the required repair and remediation work to the Property is
resulting in the ongoing deterioration of the structure, which unless resolved, will deteriorate beyond
repair requiring the demolition of the historic property; and
WHEREAS, on June 26, 2020, the City and the Deauville attended a mediation session in an
effort to bring the parties together to discuss a viable project ultimately to be approved by the City's
Historic Preservation Board, but no meaningful activity has occurred between then and November, 2020;
and
WHEREAS, since the hotel's closure, the City and the North Beach community in particular, has
suffered economic damages, and the City has lost resort tax income from room rentals and food and
beverage sales; and
WHEREAS, Deauville's continuing intentional failures to perform the required repair and
remediation work to the Property is resulting in the ongoing deterioration of the structure, which, unless
resolved, will deteriorate beyond repair and require the demolition of the historic property.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY COMMISSION OF
THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission hereby reaffirm the City's
commitment to safeguard the Deauville Beach Resort (the "Deauville"), which is a Contributing building
within the North Beach Resort Local Historic District, and located at 6701 Collins Avenue; direct the City
Manager and City Attorney to investigate and pursue any and all additional available enforcement and
legal remedies with regard to the Deauville including, without limitation, whatever additional remedies the
City Manager and City Attorney deem necessary, both as an administrative matter and in the context of
the pending litigation, to fulfill the City Commission's mandate that the litigation be prosecuted to the
fullest extent possible; further direct the Building Director and Code Compliance Director, in consultation
with the City Attorney, to identify any outstanding City Code and Florida Building Code violations at the
Deauville property, and pursue any and all remedies available under the City Code, Florida Building
Code, or state law, in order to secure the property, protect the historic Deauville Beach Resort building,
and mitigate any public nuisances on the property; and further, direct the City Attorney or his designees
to meet individually with the Mayor and City Commissioners, in the next thirty (30) days, to provide them
with an update of the litigation.
PASSED and ADOPTED this /SI day of November, 2020.
, 2—zi-----_.
ATTEST:
Dan Gelber, Mayor
2/ 1 j lr.Zv APPROVED AS TO
FORM & LANGUAGE
Rafael; r nado, City Jerk \PNii.. 8 �/�R & FOR EXECUTION
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94H..26M�g= City Attorney Date
M I AMTBEACH
OFFICE OF THE CITY ATTORNEY
RAUL AGUILA, CITY ATTORNEY COMMISSION
MEMORANDUM
TO: MAYOR DAN GELBER
MEMBERS OF THE CITY COMMISSION
JIMMY L. MORALES, CITY MANAGER
FROM: RAUL J. AGUILA, CITY ATTORNEY( r._
DATE: November 18, 2020
SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, REAFFIRMING THE CITY'S COMMITMENT TO
SAFEGUARD THE DEAUVILLE BEACH RESORT (THE "DEAUVILLE"),
WHICH IS A CONTRIBUTING BUILDING WITHIN THE NORTH BEACH
RESORT LOCAL HISTORIC DISTRICT, AND LOCATED AT 6701 COLLINS
AVENUE; DIRECTING THE CITY MANAGER AND CITY ATTORNEY TO
INVESTIGATE AND PURSUE ANY AND ALL ADDITIONAL AVAILABLE
ENFORCEMENT AND LEGAL REMEDIES WITH REGARD TO THE
DEAUVILLE INCLUDING, WITHOUT LIMITATION, WHATEVER ADDITIONAL
REMEDIES THE CITY MANAGER AND CITY ATTORNEY DEEM NECESSARY,
BOTH AS AN ADMINISTRATIVE MATTER AND IN THE CONTEXT OF THE
PENDING LITIGATION, TO FULFILL THE CITY COMMISSION'S MANDATE
THAT THE LITIGATION BE PROSECUTED TO THE FULLEST EXTENT
POSSIBLE; FURTHER DIRECTING THE BUILDING DIRECTOR AND CODE
COMPLIANCE DIRECTOR, IN CONSULTATION WITH THE CITY ATTORNEY,
TO IDENTIFY ANY OUTSTANDING CITY CODE AND FLORIDA BUILDING
CODE VIOLATIONS AT THE DEAUVILLE PROPERTY, AND PURSUE ANY
AND ALL REMEDIES AVAILABLE UNDER THE CITY CODE, FLORIDA
BUILDING CODE, OR STATE LAW, IN ORDER TO SECURE THE PROPERTY,
PROTECT THE HISTORIC DEAUVILLE BEACH RESORT BUILDING, AND
MITIGATE ANY PUBLIC NUISANCES ON THE PROPERTY; AND FURTHER,
DIRECTING THE CITY ATTORNEY OR HIS DESIGNEES TO MEET
INDIVIDUALLY WITH THE MAYOR AND CITY COMMISSIONERS, IN THE
NEXT THIRTY (30) DAYS, TO PROVIDE THEM WITH AN UPDATE OF THE
LITIGATION.
I have submitted the attached alternative Resolution to be heard in conjunction with Agenda Item
R7 M, which was placed on the agenda by Vice-Mayor Meiner.
While I fully understand and support the concern expressed by Vice-Mayor Meiner in his
Resolution, I've taken the liberty of drafting my own Resolution, which I believe not only addresses
Vice-Mayor Meiner's concern/recommended action but also expands on that to reaffirm the City
Commission's position that the City be aggressive in pursuing any and all available enforcement
Commission Memorandum
November 18, 2020 Page 2 of 2
and legal remedies against the Deauville (whether in the course of the litigation or through
additional administrative remedies).
I also think it is helpful and important to remind the City Commission of the actions that have been
taken thus far with regard to the Deauville. For that reason, I am attaching "Supplemental
Materials,"which basically provide a chronology highlighting the policy directives given by the City
Commission with regard to the Deavuille, as well as the City's actions (these are attached in the
portion of the Memo entitled "Supplemental Materials").
Finally, while I discourage and do not recommend that the body engage in discussion of active,
pending litigation in a public meeting, Chief Deputy Aleksandr Boksner, who is helming the
litigation on the behalf of the City, is prepared to provide a full presentation to the City Commission
should the City Commission wish, detailing the City's actions thus far in the course of this on-
going litigation. Additionally, my Resolution recommends that, within thirty (30) days of the
November 18, 2020 City Commission meeting, Mr. Boksner meet all of you individually with
regard to any specific issues and/or questions you may have as to the Deauville litigation.
I want to recognize and thank the co-sponsors, Vice-Mayor Steven Meiner and Commissioner
Michael Gongora, for placing this matter on the agenda. I trust that the intended purpose of this
Agenda Item is to not only reinforce the City's commitment to this most important matter, but to
let the public know of the City's on-going, proactive measures.
RJA/mm
SUPPLEMENTAL MATERIALS
City Commission actions and directives, and City Attorney's LTCs with regard to the
Deauville, dating from November 18, 2020 to June 6, 2018
, 11/16/2O 0 Coversheet
Resolutions-R7 M
MIAMI BEACH
COMMISSION MEMORANDUM
TO: Honorable Mayor and Members of the City Commission
FROM: Vice-Mayor Steven Meiner
DATE: November 18, 2020
SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, DIRECTING
THE FILING OF AN AMENDED COMPLAINT SEEKING CIVIL PENALTIES PURSUANT TO CITY CODE SECTION
118-532(G)(1)(D). THIS SECTION READS: "CIVIL PENALTIES. VIOLATION OF THIS ARTICLE SHALL BE
PUNISHABLE BY A CIVIL PENALTY OF UP TO $5,000.00 PER DAY, FOR EACH DAY THAT THE REMEDIAL AND
CORRECTIVE ACTION IS NOT TAKEN"; AND FURTHER DIRECTING THE FILING OF AN AMENDED COMPLAINT
RENEWING THE CITY'S REQUEST, INITIALLY MADE IN FEBRUARY 2019, FOR INJUNCTIVE RELIEF, DAMAGES,
APPOINTMENT OF A RECEIVER, AND FOR COMPLIANCE WITH THE COURT'S PRIOR ORDERS AGAINST THE
DEAUVILLE.
RECOMMENDATION
The Miami Beach Commission should direct the filing of an amended complaint seeking civil penalties pursuant to City Code
Section 118-532(g)(1)(d).This Section reads:
"Civil penalties. Violation of this article shall be punishable by a civil penalty of up to $5,000.00 per day, for each day that the
remedial and corrective action is not taken."The Miami Beach Commission should further direct the filing of an amended complaint
renewing the City's request, initially made in February 2019, for injunctive relief, damages, appointment of a receiver, and for
compliance with the Court's prior orders against the Deauville.
BACKGROUND/HISTORY
The Deauville Beach Resort is a historic crown jewel of North Beach and its shutdown since July 2017 has led to significant
economic hardship for the surrounding North Beach area.
The Deauville was a 538-room oceanfront hotel and is a "contributing" structure located within the North Beach Historic District.
The hotel was designed by architect Melvin Grossman and constructed in 1957. The Deauville is well-known for hosting the
Beatles performance on The Ed Sullivan Show in February 1964 filmed in the hotel's Napoleon Ballroom. President John F.
Kennedy gave a speech at the Deauville in 1961.
In February 2019 Miami Beach sued the Deauville Beach Resort for intentionally failing to maintain its historic and economically
significant property. Since then, the Deauville has failed to make repairs and has ignored court orders with no adverse
consequences. If repairs are not made soon the Deauville may be beyond saving, the very reason we filed the lawsuit twenty-one
(21)months ago.
ANALYSIS
Below is a timeline of important events:
July 2017: Deauville shut down.
February 2019: The City of Miami Beach sued the Deauville Associates LLC for failing to maintain the property. The City filed its
Complaint seeking injunctive relief, damages, and appointment of a receiver. The injunctive relief is to prevent demolition by
neglect of the historic Deauville as defined by Section 118-532(g) of the City Code. This code section provides that properties
situated within any of the City's historic districts must meet minimum maintenance standards to prevent deliberate or inadvertent
neglect.The Deauville is a contributing structure to the City's North Beach Historic District.
August 2019: In the City's Renewed Motion for Appointment of Receiver and Temporary Injunction and Motion for Sanctions and
Compliance with Court Orders the City informed the Court that the "Deauville's continuing failures to perform the required repair
and remediation work to the Property is resulting in the ongoing deterioration of the structure, which unless resolved, will
deteriorate beyond repair requiring the demolition of the historic property, a 'Contributing' structure located in the North Beach
Resort Local Historic District." The City further alleges that the "Deauville has demonstrated that it has no intention of voluntarily
undertaking the repairs necessary to bring the Property into compliance with the City Code and City's Historic Preservation Board,
and Ethel Deauville is hedging its bets that the City will eventually allow the demolition of the structure." Quoting the owner of the
Deauville: "It would be a favor that they demolish the [Property]and I get rid of the nightmare that I have. That's the truth." Unsafe
Structures Case Hearing Transcript, Dec. 12, 2018.
https://miamibeach.novusagenda.com/agendapublic/CoverSheet.aspx?ItemID=19716&MeetinglD=775 1/2
, 11/16/2020 Coversheet
June 26, 2020: Mediation session held between the City of Miami Beach and the Deauville in an effort to bring the parties together
to discuss a viable project ultimately to be approved by the City's Historic Preservation Board.
July-November 2020: No meaningful activity.
CONCLUSION
Justice delayed is justice denied. Since the Deauville's shutdown, the North Beach community has suffered substantial economic
damage and the City has lost substantial resort tax income from room rentals and food and beverage sales. The Deauville's
continuing failures to perform the required repair and remediation work to the Property is resulting in the ongoing deterioration of
the structure,which unless resolved,will deteriorate beyond repair requiring the demolition of the historic property.
The City of Miami Beach should use all legal causes of action to enforce its Ordinances, including its demolition by neglect
Ordinance, by amending its Complaint against the Deauville as recommended above and in the attached Resolution.
Applicable Area
North Beach
Is this a"Residents Right to Does this item utilize G.O.
Know"item,_pursuant to Bond Funds?
city Code Section 2-14?
Yes No
Legislative Tracking
Vice-Mayor Steven Meiner
Sponsor
Co-sponsored by Commissioner Michael Gongora
ATTACHMENTS:
Description
❑ Resolution
https://miamibeach.novusagenda.com/agendapublic/CoverSheet.aspx?ItemID=19716&MeetinglD=775 2/2
RESOLUTION NO.
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF
THE CITY OF MIAMI BEACH, FLORIDA DIRECTING THE FILING
OF AN AMENDED COMPLAINT SEEKING CIVIL PENALTIES
PURSUANT TO CITY CODE SECTION 118-532(G)(1)(D). THIS
SECTION READS:
"CIVIL PENALTIES. VIOLATION OF THIS ARTICLE SHALL BE
PUNISHABLE BY A CIVIL PENALTY OF UP TO $5,000.00 PER
DAY, FOR EACH DAY THAT THE REMEDIAL AND CORRECTIVE
ACTION IS NOT TAKEN"; AND FURTHER DIRECTING THE FILING
OF AN AMENDED COMPLAINT RENEWING THE CITY'S
REQUEST, INITIALLY MADE IN FEBRUARY 2019, FOR
INJUNCTIVE RELIEF, DAMAGES, APPOINTMENT OF A
RECEIVER, AND FOR COMPLIANCE WITH THE COURT'S PRIOR
ORDERS AGAINST THE DEAUVILLE.
WHEREAS, the Deauville Beach Resort (the "Deauville") is a historic crown
jewel of North Beach and its shutdown since July 2017 has led to significant economic
hardship for the surrounding North Beach area; and
WHEREAS, the Deauville was a 538-room oceanfront hotel and is a
"contributing" structure located within the North Beach Historic District. The hotel was
designed by architect Melvin Grossman and constructed in 1957. The Deauville is well-
known for hosting the Beatles performance on The Ed Sullivan Show in February 1964
filmed in the hotel's Napoleon Ballroom. President John F. Kennedy gave a speech at the
Deauville in 1961; and
WHEREAS, in February 2019, the City of Miami Beach (the "City") sued the
Deauville for intentionally failing to maintain its historic and economically significant
property. Since then, the Deauville has failed to make repairs and has ignored court
orders with no adverse consequences. If repairs are not made soon the Deauville may
be beyond saving, the very reason we filed the lawsuit twenty-one (21) months ago; and
WHEREAS, in July 2017 the Deauville shut down; and
WHEREAS, in February 2019, the City sued the Deauville Associates LLC for
failing to maintain the property. The City filed its Complaint seeking injunctive relief,
damages, and appointment of a receiver. The injunctive relief is to prevent demolition by
neglect of the historic Deauville as defined by Section 118-532(g) of the City Code. This
code section provides that properties situated within any of the City's historic districts
must meet minimum maintenance standards to prevent deliberate or inadvertent neglect.
The Deauville is a contributing structure to the City's North Beach Historic District; and
WHEREAS, in August 2019 the City filed a Renewed Motion for Appointment of
Receiver and Temporary Injunction and Motion for Sanctions and Compliance with Court
Orders. The City's Renewed Motion informed the Court that the "Deauville's continuing
failures to perform the required repair and remediation work to the Property is resulting in
the ongoing deterioration of the structure, which unless resolved, will deteriorate beyond
repair requiring the demolition of the historic property, a "Contributing" structure located
in the North Beach Resort Local Historic District." The City further alleges that the
"Deauville has demonstrated that it has no intention of voluntarily undertaking the repairs
necessary to bring the Property into compliance with the City Code and City's Historic
Preservation Board, and [the] Deauville is hedging its bets that the City will eventually
allow the demolition of the structure." Quoting the owner of the Deauville: "It would be a
favor that they demolish the [Property] and I get rid of the nightmare that I have. That's
the truth." Unsafe Structures Case Hearing Transcript, Dec. 12, 2018; and
WHEREAS, on June 26, 2020 a mediation session was held between the City
and the Deauville in an effort to bring the parties together to discuss a viable project
ultimately to be approved by the City's Historic Preservation Board; and
WHEREAS, between July-November 2020 there has been no meaningful
activity; and
WHEREAS, justice delayed is justice denied. Since the Deauville's shutdown,
the North Beach community has suffered substantial economic damage and the City has
lost substantial resort tax income from room rentals and food and beverage sales. The
Deauville's continuing failures to perform the required repair and remediation work to the
Property is resulting in the ongoing deterioration of the structure, which unless resolved,
will deteriorate beyond repair requiring the demolition of the historic property; and
WHEREAS, the City should use all legal causes of action to enforce its
Ordinances, including its demolition by neglect Ordinance, by amending its Complaint
against the Deauville.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City
Commission hereby directs the filing of an amended complaint seeking civil penalties
pursuant to City Code Section 118-532(g)(1)(d). This Section reads:
"Civil penalties. Violation of this article shall be punishable by a civil penalty of up to
$5,000.00 per day, for each day that the remedial and corrective action is not taken."; and
further directing the filing of an amended complaint renewing the City's request, initially
made in February 2019, for injunctive relief, damages, appointment of a receiver, and for
compliance with the Court's prior orders against the Deauville.
PASSED AND ADOPTED this 18th day of November, 2020.
ATTEST:
Dan Gelber, Mayor
Rafael E. Granado, City Clerk
(sponsored by Vice Mayor Steven Meiner)
4
AI / , AIBEACH
City of Miami Beach, 1700 Convention Center Drive, Miami Beach FL 33139
LTC# 184-2020 LETTER TO COMMISSION
TO: Mayor Dan Gelber and Members of e City C mmissiop
FROM Jimmy L. Morales, City Manager �J
DATE. May 20, 2020
SUBJECT: UPDATE ON THE BEACHWALK CLOSURE BEHIND THE DEAUVILLE HOTEL
The purpose of this Letter to Commission is to provide the Mayor and City Commission with an
update on the Deauville Hotel and the beachwalk closure.
On the morning of Wednesday, February 26, 2020, City staff confirmed that pieces of concrete
were falling from the Deauville Hotel, located at 6701 Collins Avenue. As a matter of public safety,
The Property Management Department secured the area and closed a portion of the Beachwalk
at 67' Street, including the perimeter directly behind the Deauville Hotel (the Deauville).
On February 27, 2020, the Building Department issued violation US2020-03373 to the Deauville
Hotel requiring a remedy to provide pedestrian protection and safely secure the premises in order
reopen the Beachwalk by Friday, February 28, 2020. The Deauville did not comply. Accordingly,
the Property Management and Building Departments secured contractors to scaffold the building
and safeguard the area. Concurrently, the Public Works Department assisted in permitting the
120' long structure. The Beachwalk was reopened to the public on March 27, 2020.
The Deauville has since applied for a permit and constructed a fabric wrap along the east face of
the tower. Removal of the previously installed scaffolds began on May 19, 2020. In order to
properly secure the area during this dismantling, the Beachwalk at 67"Street will be temporarily
fenced and closed until the remainder of week.
The temporary fencing is expected to be removed by Monday, May 26`h where the Beachwalk will
once again reopen for pedestrians.
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City of Miami Beach, 1700 Convention Center Drive, Miami Beach Fl 33139
LTC# 156-2020 LETTER TO COMMISSION
TO. Mayor Dan Gelber and Members the Cit mmission
FROM: Jimmy L. Morales, City Manag
DATE: April 21,2020
SUBJECT: UPDATE ON DEAUVILLE HOTEL!'
The purpose of this Letter to Commission is to provide the Mayor and City Commission with an
update on the Deauville Hotel.
On the morning of Wednesday, February 26, 2020, City staff confirmed that pieces of concrete
were falling from the Deauville Hotel, located 6701 Collins Avenue. As a matter of public safety,
City staff closed a portion of the Beachwalk at 67'"Street, including the perimeter directly behind
the Deauville Hotel. The Property Management Department secured the area.
The Building Department issued a violation US2020-03373 to the Deauville Hotel requiring a
remedy to provide pedestrian protection by Friday morning February 28, 2020 to safely secure
the premises in order reopen the Beachwalk. The Deauville did not comply.The Deauville applied
for a permit to construct a fabric wrap along the east face of the tower, the permit was issued, to
date that permit has not been finalized.
Property Management and the Building Departments worked to secure a contractor in order to
safeguard the area. Public Works assisted in permitting the 120' long structure. On March 27'"
the Beachwalk was reopened to pedestrians. The City Manager and City Attorneys have been in
contact with ownership at the Deauville Hotel but still no progress has been made towards
resolving the issues with the building.
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MIAMIBEACH
City of Miami Beach, 1700 Convention Center Drive, Miami Beach FL 33139
LTC# 110-2020 LETTER TO COMMISSION
TO: Mayor Dan Gelber and Members of 4 e City Commission
i
FROM: Jimmy L. Morales, City Manager "gyp -: �
DATE: February 26, 2020 \ i
SUBJECT: BEACHWALK CLOSURE BEHIND DEAUVILLE HOTEL
The purpose of this Letter to Commission is to provide the Mayor and City Commission with an
update on the closure of the Beachwalk behind the Deauville Hotel.
On the morning of Wednesday, February 26, 2020, City staff confirmed that pieces of concrete
were falling from the Deauville Hotel, located 6701 Collins Avenue.
As a matter of public safety, City staff have closed a portion of the Beachwalk at 671hi Street,
including the perimeter directly behind the Deauville Hotel until further notice.
The Property Management Department is working on securing the area and closing the
beachwalk. The Building Department has issued a violation US2020-03373 to the Deauville Hotel
requiring a remedy to provide pedestrian protection by Friday morning to safely secure the
premises in order reopen the Beachwalk. Should the Deauville not comply, the Building
Department will secure contractors to safeguard the area. The City Manager and City Attorneys
have been in contact with ownership at the Deauville Hotel.
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MIAMI BEACH
OFFICE OF THE CITY ATTORNEY
140-2019
LTC No.
LETTER TO COMMISSION
TO: Mayor Dan Gelber
Members of the City Commission
Jimmy Morales, City Manager , f
FROM: Raul J. Aguila, City Attorney vj,y
DATE: March 13, 2019
SUBJECT: Deauville Beach Resort
The purpose of this Letter to Commission is to provide the Mayor and City Commission
with the current status regarding the Deauville Beach Resort litigation, and the City's
efforts to ensure that the Premises is secure from any further criminal activity or
damage.
In response to a series of criminal trespass violations and two (2) separate fires that
occurred at the vacant Deauville Beach Resort on March 6, 2019, the City Attorney's
Office immediately filed its Emergency Motion for Appointment of Receiver, Temporary
Injunction and Memorandum of Law in Support (hereinafter identified as the
"Emergency Motion") on March 7, 2019. The Emergency Motion requested that the
Court enter an Order requiring the Deauville Beach Resort ownership entities to
immediately and adequately secure the Property for the purpose of ensuring the safety
of the general public, the City's first responders, and other City employees.
On March 13, 2019, the Court entered an Order on the City's Emergency Motion,
mandating that the Deauville Beach Resort ownership entities: (1) hire three (3) security
guards to monitor the property during the hours of 7:00 pm to 7:00 am, one of whom
must be certified for "fire watch" services; (2) install three (3) points of ingress and
egress in order to allow MBPD and MBFD access to the property in case of an
emergency; and (3) apply for a fencing permit on the beach side (east) of the Property
in order to increase the height of the security fence to deter trespassers. A copy of the
March 7, 2019 Emergency Motion and the March 13, 2019 Court Order is attached.
The City shall continue to pursue its efforts to appoint a Receiver for the Property in
order to ensure that, and to prevent any further deterioration of the Deauville Beach
Resort.
RJA/AB/sc
Attachment
F\ATTO\AGUR\CITY ATTORNEY\LTC\2019\LTC=Deauville docx
We ore committed to providing exceiient public service and safely to all who live work and ploy in our vibrant tropical historic community
Filing # 86073094 E-Filed 03/08/2019 09:13:17 AM
IN THE CIRCUIT COURT OF THE
ELEVENTH JUDICIAL CIRCUIT, IN AND
FOR MIAMI-DADE COUNTY, FLORIDA
THE CITY OF MIAMI BEACH, FLORIDA, a CASE NO.: 19-03653 CA 32
Florida municipal corporation,
Plaintiff,
v.
DEAUVILLE ASSOCIATES, LLC,a Florida limited
liability company, DEAUVILLE HOTEL
PROPERTY, LLC, a Florida limited liability
company, DEAUVILLE HOTEL HOLDINGS, LLC,
a Florida limited liability company, and OCEAN
BANK, a Florida banking corporation,
Defendants.
THE CITY OF MIAMI BEACH, FLORIDA'S EMERGENCY MOTION FOR
APPOINTMENT OF RECIEVER,TEMPORARY INJUNCTION AND
MEMORANDUM OF LAW IN SUPPORT
Plaintiff, the City of Miami Beach, Florida (the "Plaintiff" or "City"), by and through
undersigned counsel and pursuant Fla. R. Civ. P. 1.620 and 1.610, moves this Court for the
appointment of a receiver to take control of the Deauville Beach Resort Property, and for a
temporary injunction requiring Deauville Associates, LLC, Deauville Hotel Property, LLC, and
Deauville Hotel Holdings, LLC (collectively, the "Deauville")to immediately protect and secure
the Deauville Beach Resort Property for the purpose of ensuring the safety of the public,City first
responders and employees, the surrounding buildings, and the historic Deauville Beach Resort
Property. In support of this Emergency Motion, the City incorporates its Complaint and
Memorandum of Law herein and further submits the following:
INTRODUCTION
On February 5, 2019, the City filed its Complaint for Injunctive Relief, Damages and the
Appointment of a Receiver related to the Deauville Beach Resort's protracted state of disrepair
CASE NO.: 19-03653 CA 32
and fear that the owners of the Deauville Beach Resort are intentionally neglecting to maintain the
property in accordance with the City Code and Florida law which will eventually lead to the
deterioration beyond repair of the historic structure. The Deauville Beach Resort was closed on
July 2017 due to extensive damages caused by an electrical fire at the Property, forcing Deauville
to close the Deauville Beach Resort. Approximately two months after the electrical fire, the
Property sustained wind and water damage caused by Hurricane Irma, which damages were later
amplified by certain illegal work performed on the Property without a permit. The Property has
not re-opened since its closing in July 2017.
Coincidentally, on the very same day Deauville was required to respond to the
City's Complaint', multiple fires broke out in the Deauville Beach Resort. A copy of the Miami
Beach Police Department ("MBPD") Report is attached hereto as Exhibit "A". Two active fires
were located by law enforcement, one in the main lobby and the other in the reservation office.
The Miami Beach Fire Department ("MBFD") extinguished both fires. Additionally, MDPD
responded and noticed several convincing signs of ongoing homeless activity within the structure.
The main fire occurred in the main lobby of the building and the origin was located in a small
portion of the wall just south of the front desk. The second fire occurred in the reservation office
and the origin was located in the file room just in front of a file cabinet. Both fires were incendiary,
as a pile of hotel paper was likely the source of the fire. Due to the building having no electricity,
their CCTV is not functioning.
It is strongly suggested that this fire was caused by a trespasser or trespassers at the closed
Deauville Beach Resort—which trespassing Deauville has permitted due to its failure to adequately
secure the property. See Exhibit A. Deauville is responsible for the on-going security of the
Deauville Beach Resort which was made clear in the Miami-Dade County Unsafe Structures Board
The three Deauville entities were served on February 12,2019.
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CASE NO.: 19-03653 CA 32
Order requiring Deauville to "maintain secure" the property. See Exhibit F to Plaintiff s
Complaint.
Luckily, the damage caused by the fires were isolated to the main lobby and file room.
However,the Deauville's perpetual disregard for securing the property invites the real possibility
of a larger fire endangering the community at large,surrounding structures and Miami Beach first
responders and employees. The Deauville's ongoing failure to repair and maintain the property in
accordance with the City Code, and its failures to adequately secure the property are genuine
matters of public concern requiring the immediate and urgent need for: (1)a temporary injunction
requiring the Deauville to adequately secure the property; and (2) the appointment of a receiver
due to Deauville's ongoing and intentional failures to comply with the Miami-Dade County Unsafe
Structures Board Order,City Code and Florida law.
FACTS
1. The Deauville Beach Resort is a 538-room ocean front hotel located at 6701 Collins
Avenue,Miami Beach,Florida owned by Deauville Associates,LLC,and is operated by Deauville
Associates, LLC, Deauville Hotel Property LLC, Deauville Hotel Holdings, LLC. The Deauville
Beach Resort is a "Contributing" structure located within the North Beach Resort Local Historic
District, and the Property falls under the jurisdiction of the City's Historic Preservation Board.
City of Miami Beach Code of Ordinances No. 2004-3438.
2. In or around July 2017,the Property was rendered uninhabitable due to extensive damages
caused by an electrical fire at the Property, forcing Deauville to close the Deauville Beach Resort.
Approximately two months after the electrical fire,the Property sustained wind and water damage
caused by Hurricane Irma,which damages were later amplified by certain illegal work performed
on the Property without a permit.The Property has not re-opened since its closing in July 2017.
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CASE NO.: 19-03653 CA 32
3. Following an inspection performed by the City on July 25,2017,the City issued Violation
US2017-01686 against Deauville Hotel Property LLC, deeming the structure an "Unsafe
Structure", and providing Deauville Hotel Property LLC fifteen (15) days to: (1) submit an
engineering report signed and sealed by electrical engineer to evaluate the cause of the fire, the
extent of the damages and methods of repair; (2) obtain approved final inspection to reconnect
power to the building;and(3)obtain approved permits for the required repairs.A copy of Violation
US2017-01686 is attached as Exhibit "B" to Plaintiffs Complaint. Deauville failed to timely
comply with the City's Violation US2017-0168.
4. At its meeting on December 12, 2018 regarding the Unsafe Structures Case, the Miami-
Dade County Unsafe Structures Board upheld the recommendation of the City's Building Official
and entered the following ruling:
a) The structure(s) are to be maintained secure, clean and sanitary, free of debris,
overgrown grass or weeds and free of discoloration or graffiti.
b) A temporary electrical power permit must be applied for within thirty(30)days of
the date of the ruling.The temporary electrical permit shall be obtained within sixty
(60)days from the date of the ruling.The building permit(s)to repair windows and
for concrete spalding must be applied for within sixty(60)days after obtaining the
temporary electrical permit,with the understanding that no work can be performed
until the temporary power permit is issued.
c) A 40-Year Recertification Report shall be submitted within one hundred twenty
(12)days from obtaining the temporary electrical permit to the City of Miami Beach
Building Official as required in standard form signed and sealed by a structural and
electrical engineer and to obtain all necessary permits to repair and restore said
structure.
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CASE NO.: 19-03653 CA 32
5. In addition to Miami-Dade County and Florida state guidelines, the City requires that
buildings located within local historic districts be properly maintained, and that contributing
structures within the local district are required to properly maintain and preserve the structure in
accordance with standards set forth in the applicable City Code, Florida Building Code, and the
City's Certificate of Appropriateness criteria. Section 118-532(g)of the City Code.
6. On September 19,2018,the City of Miami Beach Planning Director and the City's Building
Official determined that the Property had fallen into a state of disrepair that jeopardizes the
structural and architectural integrity of the Property,which decision was based upon several visual
inspections of the exterior of the premises,the numerous building permits that have not been issued
or finalized,the inability to occupy the structure.the fact that the Deauville's contractor had placed
the City on notice of his intent to withdraw as the Contractor of Record,and the fact that the City
issued an Unsafe Structure Board filing with Miami-Dade County with regard to the Property.
7. Based upon the Planning Director's and the Building Director's findings, in accordance
with Section 118-532(g)(1)(b)of the City Code.the City issued its"48 Hour Prior Notice Of Intent
To Inspect Pursuant To The City's Demolition By Neglect Procedures", intending to inspect the
interior and exterior of the Property.The 48 Hour Prior Notice of Intent is attached as Exhibit"C"
to Plaintiff's Complaint.
8. To date, Deauville has failed to perform any substantial work at the Property which would
be required in order to place the Property in compliance with Section 118-532(g)of the City Code.
Deauville's continuing failures to perform the required repair and remediation work to the Property
is resulting in the ongoing deterioration of the structure, which unless resolved, will deteriorate
beyond repair requiring the demolition of the historic Property, a"Contributing"structure located
in the North Beach Resort Local Historic District.
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CASE NO.: 19-03653 CA 32
9. The Deauville has no intention of voluntarily undertaking the repairs necessary to bring the
Property into compliance with the City Code and the City's Historic Preservation Board, and
Deauville is hedging its bets that the City will eventually allow the demolition of the structure: "It
would be a favor that they demolish the[Property]and I get rid of this nightmare that I have.That's
the truth." Unsafe Structures Case Hearing Transcript, P. 38, 7- 10, December 12, 2018, attached
to the Complaint as Exhibit"H". "So, the building is full of water, full of mold and mildew. We
have no power. I mean,what do we do? We have no money. Id at P. 33, 13-16.
10. Incredibly, the only work that the Deauville has performed on the Property since the
Deauville Beach Resort closed its doors to the public was the illegal work Deauville performed on
the roof without any construction permit, which Deauville officials freely admitted under oath at
the Unsafe Structures Case hearing before the Unsafe Structures Board. See Exhibit "H" to
Plaintiff's Complaint,Pages4l-42; 19-25, 1-0; Pages 53-54; 20-25, 1-3.
11. To further demonstrate Deauville's neglect of the Deauville Beach Resort and blatant
disregard for the City Code and the Miami Dade County Unsafe Structures Board Order, two (2)
fires occurred at the property on March 6, 2019 which MBPD suspects was caused by trespassers
to the Deauville Beach Resort, and this is all a direct result of Deauville's failure to adequately
secure and protect the property.
12. In addition to the fires on March 6, 2019, MBPD and MBFD have identified numerous
incidents involving trespassers and the public gaining access to the structure due to Deauville's
failure to secure the property.See Exhibit"B" attached hereto.
MEMORANDUM OF LAW
A. The Appointment of a Receiver is Appropriate
Equitable receiverships are a creation of common law,which the Supreme Court of Florida
has declared should be reserved for cases involving fraud, self-dealing,or waste. Granada Lakes
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CASE NO.: 19-03653 CA 32
Villas Condominium Ass'n, Inc. v. Metro-Dade Investments Co., 125 So. 3d 756(Fla. 2013). The
appointment of a receiver is appropriate to prevent fraud,self-dealing,or the destruction or loss of
property. See McAllister Hotel v. Schatzberg, 40 So. 2d 201, 202-03 (Fla. 1949). The power to
appoint a receiver has long been recognized as one that is inherent in a court of equity,which"lies
in the sound discretion of the chancellor to be granted ... according to the facts and circumstances
of the particular case." Ins. Mgmt. Inc. v. McLeod, 194 So. 2d 16, 17 (Fla. 3d DCA 1966). "To
authorize the appointment of a receiver, the petitioner must show clear legal right to the property
in controversy, or that he has some lien upon property or right in it,or that it constitutes a special
fund out of which he is entitled to satisfaction of his demand. While the appointment of a receiver
does not involve the determination of any right, or affect the title of either party in any manner
whatever, an appointment of a receiver should be made only at the instance of those who have an
acknowledged interest,or at least a probable right or interest, in or to the property, fund,or assets
over which he seeks to have a receiver appointed, and where there is a strong reason to believe
that the party asking for a receiver will recover."Appalachia Northern R. Co. v. Sommers, 79 Fla.
816 (Fla. 1920); see also Plaza v. Plaza, 78 So. 3d 4, 6 (Fla. 3d DCA 2011) (holding that to be
entitled to the appointment of a receiver, a movant must show that the property is subject to a
serious loss and that the movant has a clear legal right to the property).
The allegations of Plaintiff's Complaint, including the documents and exhibits thereto,
establish that Plaintiff has a clear legal right in the property because the Deauville Beach Resort is
a"Contributing"structure located within the North Beach Resort Local Historic District, and the
Property falls under the jurisdiction of the City's Historic Preservation Board.City of Miami Beach
Code of Ordinances No. 2004-3438. Accordingly,the Deauville Beach Resort is required to meet
the minimum maintenance and repair standards set forth in § 118-532(g)(1)(a) of the City Code
and comply with Florida law. Additionally, the failure to comply with § 118-532(g)(1)(a) of the
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CASE NO.: 19-03653 CA 32
City Code and the Miami Dade County Unsafe Structures Board is resulting in the ongoing
deterioration of the structure which without a question is a clear waste of the historic structure.
The City has a clear interest in maintaining its inventory of historic structures, including the
Deauville Beach Resort. "The preservation and conservation of properties of historical,
architectural and archaeological merit in the [C]ity is a public policy of the [C]ity and is in the
interest of the [C]ity's future prosperity." § 118-501 of the City Code.
The Deauville Beach Resort remains closed with no opening in sight as a result of the
Deauville's mismanagement of the property and disregard for the historic structure. Moreover,the
appointment of a receiver is needed to the self-dealing of the Deauville and breakdown of trust
and communication between the City and Deauville.
B. Plaintiff is entitled to have a temporary injunction issued against Deauville
A trial court "is afforded broad discretion in granting, denying, dissolving or modifying
injunctions..."Sacred Family Investments, Inc. v. Doral Supermarket, Inc.,20 So. 3d 412(Fla. 3d
DCA 2009); Carricarte v. Carricarte,961 so.2d 1019(Fla. 3d DCA 2007).The following factors
support this Court's granting of the injunction: (i) the likelihood of irreparable harm; (ii) the
unavailability of inadequate remedy at law;(iii)the substantial likelihood of success on the merits;
(iv)the threatened injury to the petitioner outweighs any possible harm to the respondent; and(v)
the granting of a preliminary injunction will not disserve the public interest. Mati-Dade County v.
Fernandez, 905 So. 2d 213, 215 (Fla. 3d DCA 2005);see Naegele Outdoor Advertising Co.. Inc.
v. City of Jacksonville, 659 So.2d 1046, 1047(Fla. 1995);LaRose v.A.K., 37 So.3d 265,266(Fla.
2d DCA 2009). Florida Courts have also held that a plaintiff must possess a "clear legal right to
the relief sought." See Wilson v. Sandstrom, 317 So. 2d 732, 736 (Fla. 1975). Establishing this
"right" equates to demonstrating Plaintiffs substantial likelihood of success on the merits. Hall v.
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CASE NO.: 19-03653 CA 32
City of Orlando, 555 So. 2d 963, n.1 (Fla. 5th DCA 1990)(citing Langford v. Rotech Oxygen and
Med. Equip., Inc., 541 So. 2d 1267, 1268, n.2 (Ha. 5th DCA 1989)).
Plaintiff's Complaint, and the instant Emergency Motion, including the documents and
exhibits attached thereto, establishes that the City will suffer irreparable harm, that no adequate
remedy at law exists, and the City's likelihood of success on the merits. The same also
demonstrates that Plaintiff is entitled to injunctive relief in light of Deauville's self-dealing conduct
and the extreme damage and harm to the community at large arid the City's first responders(MBPD
and MBFD)that may result if Deauville's conduct is not required to be altered by Court order. As
such, the Plaintiff requests that the Court enjoin Deauville, requiring Deauville to immediately
provide adequate and necessary security for the property.
I. It is Substantially Likely that the City Will Suffer Irreparable Harm
Irreparable harm exists where the harm cannot be adequately compensated for by a
monetary award.Supreme Service Station Corp. v. Telecredit Seryice Center, Inc., 424 So. 2d
844 (Fla. 1982); City of Miami Springs v. Steffon,423 So.2d 930(Fla. 1982). The showing that the
agreement in question is being directly violated and that"from the nature of the act of the circumstances
(the breach)cannot be readily,adequately,and completely compensated for with money,..." is sufficient
to support the finding of irreparable injury. Puga v. Suave Shoe Corp.,374 So. 2d 552 (Fla. 3d DCA
1979). Injunctive relief is appropriate to prevent the dissipation of funds and removal of assets. See
e.g., Blecher v. Dreyfus Brokerage Servs.,Inc., 770 So.2d 1276(Fla.3d DCA 2000); Gruder v. Gruder.
433 So.2d 2g (Fla.4th DCA 1983). The purpose of a temporary injunction is to maintain the status quo
pending determination of the suit. North Dade Water Co. v.Adken Land Co., 114 So. 2d 347 (Fla. 3d
DCA 1959).
The City has no way to determine the amount of damages that have been inflicted upon the City by
Deauville as the City's desire to demand a safe environment for its citizens and visitors and maintain
historic properties within the City cannot be quantified.Additionally,the potential damage that could be
9
CASE NO.: 19-03653 CA 32
sustained to human life and the structures surrounding the Deauville Beach Resort due to Deauville's
failure to simply secure the property cannot be quantified at this time.
Further,there exists no adequate remedy at law because the City does not own the subject property
and is not in possession or control of the structure.
II. Plaintiff has Established a Substantial Likelihood of Success on the Merits and/or
a Clear Legal Right to the Requested Relief
The City, through its underlying Complaint, is seeking: (1) injunctive relief pursuant to § 118-
532(g)of the City Code;(2)breach of fiduciary duty against Deauville Associates,LLC for failure to remit
resort taxes to the City of Miami Beach pursuant to§ 102-307 of the City Code;and(3)the appointment of
a receiver.
It is clear that Deauville has failed to maintain the Deauville Beach Resort consistent with the
minimum maintenance standards set forth in§ 118-532(g)of the City Code as demonstrated by the fact that
the Deauville Beach Resort remains closed and the inspection performed by the City evidenced a
deterioration of the structure and property. Further,resort tax obligations remain unpaid by the Deauville.
Due to all the forgoing,the City has demonstrated a substantial likelihood of success on the merits of its
claims and that the City possesses a"clear legal right"to the requested relief.
C. The Injury to the City will Outweigh Any Possible Harm to Deauville
The City's demand is simple,to adequately secure the Deauville Beach Resort.Deauville is already
required to secure the property according to the Miami-Dade County Unsafe Structures Board Order and
has failed to do so.The property is in an absolute state of disrepair while there have been numerous incidents
of trespasses and fires at the subject property.See Exhibits A,B.If the Deauville is allowed to disregard its
obligation to secure the property then the harm to the City,its residents,tourists,and structures surrounding
the Deauville Beach resort will be immeasurable.The potential loss of life and property clearly outweighs
any possible harm to the Deauville. Frankly, we are lucky that the multiple fires and trespasses at the
Deauville have not already caused the loss of life and property.
10
CASE NO.: 19-03653 CA 32
D. Entry of a Temporary Injunction Will Not Disserve the Public Interest
It is in the public interest for the subject property to remain secured due to the potential loss of life
and property that may result if Deauville is allowed to continually forgo its obligations to secure the
structure and the Deauville Beach Resort.
E. The City Will Post an Appropriate Bond
The City will post a bond in an amount the Court deems proper, as required by Fla. R. Civ. P.
1.610(b);however,only a nominal bond,if any,should be required.
WHEREFORE,Plaintiff,The City of Miami Beach,respectfully request that this Honorable Court
appoint a receiver that takes any and all necessary action required to:(1)ensure the collection of all resort
taxes owed to the City by Deauville Associates,LLC:(2)manage the Property;(3)oversee all remediation
and repair work required for the Property to comply with§ 118-532 of the City Code;(4)take all required
measures to rectify all outstanding violations related to the Property; (5)collect and remit all outstanding
taxes related to the Property; and (6) collect and remit to the City all civil penalties or fines against the
Property or Deauville pursuant to the applicable sections of the City Code; and that the Court issue a
temporary injunction requiring the Deauville secure the Deauville Beach Resort,together with such further
relief deemed necessary and appropriate under the circumstances.
Respectfully submitted,
RAUL J. AGUILA,CITY ATTORNEY
CITY OF MIAMI BEACH
1700 Convention Center Drive, 4th Floor
Miami Beach, Florida 33139
Tel:(305)67-74/70/Fax:(305)673-7002
I :,
By: ti-----.
Stevenc' )isten,Esq,
Dep C. Attorney
Flo a ar No. 727547
Ja c(n 7 cobson,Esq,
Assistant City Attorney II
Florida Bar No. 118276
11
•
•
CASE NO.: 19-03653 CA 32
CERTIFICATE OF SERVICE
I HEREBY CERTIFY that a true and correct copy of the foregoing was electronically filed
with the Clerk of the Court using the Florida Courts e-Filing Portal and served upon all interested
parties via electronic service generated by the e-Portal system,this 8th day of March, 2018.
•
12
EXHIBIT A
MIAMIBEACH ~�i''>.•
SPECIAL INCIDENT NOTIFICATION
OPERATIONS DIVISION
INCIDENT: Building Fire (Area 3)
DATE: March 6, 2019
TIME: 2100 Hrs.
CASE: 2019-21254
LOCATION: 6701 Collins Avenue
COMMANDER: Lt. Paul Ozaeta
SUPERVISOR: Sgt. Janelle Delgado
LEAD OFFICER: Ofc. Brian Rhodes
LEAD DETECTIVE: Sgt. Javier Fernandez
WHO WAS NOTIFIED: Captain Doce was notified by phone. The remaining Police
Command Staff and PIO were notified via this document.
DESCRIPTION OF INCIDENT: Fire Department responded to a report of a fire at the
Deauville Hotel, which is currently under construction. Two separate trash fires were
extinguished upon their arrival. Fire Department cleared building while police units shut
down Collins Avenue for approximately one hour. The fire may have possibly been
caused by four juveniles that had been arrested for trespassing inside the building
approximately three hours earlier. No injuries reported. Case is currently under
investigation.
Subject(s): TBD
Charge(s): TBD
Media Inquiries: Freelance videographers observed at scene.
CASE SEARCH
Print Date/Time: 3/7/2019 2:07:15 PM
•
Lock Case Number Reported Date/Time Reporting Officer Occurred Incident Type Location Assigned /001
Bureau Current Review Level Current Review Typ a oma- Case Status Case Status Date Disposition Disposition Date Jurisdiction
- Mes4
False 2019-00021254 03/06/2019 21:00:17 Rhodes, Brian FIRE INVESTIGATION 6701 COLLINS AVE, Miami Beach PROPERTY 0.11
CRIMES 0 Merged Report OPEN 03/06/2019 0130700 ONO
False 2019-00016529 02/21/2019 14:53:42 Llamoca, Ysidro FIELD INTERVIEW 6701 COLLINS AVE, Miami Beach y
0 Merged Report PENDING 02/22/2019 0130700
False 2019-00014103 02/13/2019 18:04:11 Gonzalez, Adrian TRESPASS 6701 COLLINS AVE, Miami Beach0111
0 Merged Report PENDING 02/13/2019 0130700
False 2019-00014061 02/13/2019 15:17:03 Pagan, Erick BURGLARY OTHER 6701 COLLINS AVE, Miami Beach BURGLARY
0 Merged Report 1 - CLOSED N/A 02/18/2019 CBA-PATROL 02/18/2019 0130700
False 2019-00010099 02/01/2019 12:01:47 De Las Salas, Sergio THEFT/OTHER 6701 COLLINS AVE, Miami Beach PROPERTY
CRIMES 3 ROR Report Reviewed by D/E 1 - CLOSED N/A 02/01/2019 1- NOT ASSIGNED 02/05/2019 0130700
False 2019-00007087 01/22/2019 16:38:39 Pagan, Erick INCIDENT 6701 COLLINS AVE, Miami Beach BURGLARY
3 ROR Report Reviewed by D/E 1 - CLOSED N/A 02/01/2019 1- NOT ASSIGNED 02/01/2019 0130700
False 2018-00114408 11/28/2018 09:25:17 Casas, Reinaldo BURGLARY OTHER 6701 COLLINS AVE, Miami Beach BURGLARY
3 ROR Report Reviewed by D/E 1 - CLOSED N/A .2/10/2018 1- NOT ASSIGNED 12/10/2018 0130700
False 2018-001:1117 11/16/2018 05:37:46 Rivera, Brian SUSPICIOUS VEHICLE 6700 COLLINS AVE PARKING LOT, Miami Beach CAU 2
3 ROR Report Reviewed by D/E PENDING 11/16/2018 CBA-PATROL 11/16/2018 0130700
False 2018-00107887 11/05/2018 15:10:14 Taylor, Garfiled TRESPASS WARNING 6701 COLLINS AVE, Miami Beach
3 ROR Report Reviewed by D/E PENDING 11/12/2018 0130700
Total Rows: je8
IN THE CIRCUIT COURT OF THE
11TH JUDICIAL CIRCUIT IN AND FOR
MIAMI-DADE COUNTY,FLORIDA
CIRCUIT CIVIL DIVISION
CASE NO:
'TLCCA4 (\i\v', BeA,
Plaintiff(s),
vs. ORDER
P60...4) WC e0'of, P GR G 'S
Defendant(s),
THIS CAUSE having come on to be heard on 4k GlY lAtittt (�t)
onal ntifi;' efendant's Motion (1 -(
'(p;'i
MIAMI BEACH
OFFICE OF THE CITY ATTORNEY LETTER TO COMMISSION
064-2019
LTC No.
TO: Mayor Dan Gelber
Members of the City Commission
City Manager Jimmy L. Morales' /�4e
FROM: City Attorney Raul J. Aguila �"'" f
DATE: February 5, 2019
SUBJECT: Deauville Beach Resort
The purpose of this Letter to Commission is to provide the Mayor and City Commission with an
update regarding the Deauville Beach Resort.
At the direction of the Mayor and City Commission,the City Attorney's Office filed a lawsuit against
the Deauville Beach Resort entities on February 5, 2019 for an injunction to avoid demolition by
neglect (in accordance with Section 118-532(g) of the Code of the City of Miami Beach), the
appointment of a receiver, and breach of fiduciary duty for the failure to remit resort taxes due
and owing to the City. The Complaint is attached to this Letter to Commission as Exhibit"A".
Should you have any questions or concerns about any of the foregoing, please don't hesitate to
contact me.
Filing # 84407310 E-Filed 02/05/2019 09:32:03 AM
EXHIBIT "A"
IN THE CIRCUIT COURT OF THE
ELEVENTH JUDICIAL CIRCUIT, IN AND
FOR MIAMI-DADE COUNTY, FLORIDA
THE CITY OF MIAMI BEACH, FLORIDA, a CASE NO.:
Florida municipal corporation,
Plaintiff,
v.
DEAUVILLE ASSOCIATES, LLC, a Florida limited
liability company, DEAUVILLE HOTEL
PROPERTY, LLC, a Florida limited liability
company, DEAUVILLE HOTEL HOLDINGS, LLC,
a Florida limited liability company, and OCEAN
BANK, a Florida banking corporation,
Defendants.
THE CITY OF MIAMI BEACH,FLORIDA'S COMPLAINT
FOR INJUNCTIVE RELIEF,DAMAGES,AND APPOINTMENT OF RECIEVER
Plaintiff, the City of Miami Beach, Florida (the "City"), sues Deauville Associates, LLC,
Deauville Hotel Property LLC, Deauville Hotel Holdings, LLC, and Ocean Bank, and alleges as
follows:
JURISDICTION,VENUE AND IDENTIFICATION OF PARTIES
1. This is an action for an injunction to avoid demolition by neglect, in accordance
with the Section 118-532(g) of the Code of the City of Miami Beach, Florid, ("City Code"), for
damages in excess of $15,000.00, and for the appointment of a receiver, and is within the
jurisdiction of this Court.
2. The City is a political sub-division of the State of Florida.
3. At all times material hereto,Deauville Associates,LLC is a Florida limited liability
company with its principal office located in Miami-Dade County, Florida, and is doing business
in Miami-Dade County,Florida.
CASE NO.:
4. At all times material hereto, Deauville Hotel Property, LLC is a Florida limited
liability company with its principal place of business in Miami-Dade County,Florida and is doing
business in Miami-Dade County,Florida.
5. At all times material hereto, Deauville Hotel Holdings, LLC is a Florida limited
liability company with its principal place of business in Miami-Dade County, Florida and is doing
business in Miami-Dade County,Florida.
6. Ocean Bank is a Florida banking corporation with its principal place of business
located in Miami-Dade County, Florida. At all times material hereto, it was doing business in
Miami-Dade County, Florida.
7. Ocean Bank("Lender")has an interest in this action as the holder of a Promissory
Note and holder of the Amended and Restated Mortgage and Security Agreement executed as of
July 8,2005, by Deauville Associates,LLC,Deauville Hotel Property,LLC,and Deauville Hotel
Holdings, LLC, in favor of Lender and recorded in Official Records Book 23592, Page 1827, of
the public records of Miami-Dade County, Florida, as modified by that certain Extension and
Modification of Note and Mortgage Agreement executed as of September 23,2008, by Deauville
Associates, LLC,Deauville Hotel Property, LLC,and Deauville Hotel Holdings,LLC, in favor of
Lender, and as is further modified by that Certain Modification of Mortgage and Other Loan
Documents, executed May 17, 2011, by Deauville Associates, LLC, Deauville Hotel Property,
LLC, and Deauville Hotel Holdings, LLC, in favor of Lender and recorded in Official Records
Book 27713,Page 4188,of the public records of Miami-Dade County, Florida,and encumbers the
real property located at 6701 Collins Avenue,Miami Beach, Florida(the"Property").
8. Venue is proper in this Court because the Property which is the subject matter of
this action and the causes of action alleged herein accrued in Miami-Dade County.
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CASE NO.:
9. All conditions precedent to bringing this action have occurred, been performed or
excused.
GENERAL FACTUAL ALLEGATIONS
THE HISTORIC DEAUVILLE BEACH RESORT
10. The Deauville Beach Resort is a 538-room ocean front hotel located at 6701 Collins
Avenue,Miami Beach,Florida owned by Deauville Associates,LLC,and is operated by Deauville
Associates, LLC, Deauville Hotel Property LLC, Deauville Hotel Holdings, LLC. (collectively
referred to as "Deauville").
11. The Deauville Beach Resort was designed by the noted architect Melvin Grossman
and constructed in 1957, and upon opening, the Deauville was named "Hotel of the Year."
Deauville History, https://deauvillebeachresortmiami.com/home/deauville-history/, attached
hereto as Exhibit"A".
12. The Deauville Beach Resort's iconic design is described as "Post War Modern"
and, more recently, "Miami Modern" (MiMo),a style that picked up where Art Deco left off with
the added influences of a booming post World War 2 economy,new technologies,the prevalence
of the redesigned automobile,and a feeling of national optimism.Id;North Beach Resort Historic
District Designation Report, City of Miami Beach Planning Department(March 17,2004).
13. The Deauville Beach Resort was a favored venue for many notable entertainers of
the 1950s and 1960s,including Frank Sinatra, Sammy Davis,Jr.,Dean Martin,Joey Bishop,Tony
Bennett, Bing Crosby, Judy Garland, Sophie Tucker, Henny Youngman, Milton Berle and Jerry
Lewis. See Exhibit"A".
14. Notably, the Deauville Beach Resort is iconic for hosting one of the most
significant events in the history of popular music: The Beatles' performance on The Ed Sullivan
Show on February 16, 1964.Id.
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Historic Preservation in Miami Beach
15. The City Commission has declared that "the preservation and conservation of
properties of historical,architectural and archaeological merit in the[C]ity is a public policy of the
[C]ity and is in the interest of the [C]ity's future prosperity."Section § 118-501 of the City Code.
As adopted by the Mayor and City Commission, the goals of the City's historic preservation
regulations include:
[tlhe protection of historic sites and districts to combat urban blight.,
promote tourism, foster civic pride, and maintain physical evidence of
the [Clity's heritage; . . .
[t]he encouragement and promotion of restoration, preservation,
rehabilitation and reuse of historic sites and districts by providing technical
assistance, investment incentives, and facilitating the development review
process; . . .
[t]he promotion of excellence in urban design by assuring the compatibility
of restored, rehabilitated or replaced structures within designated historic
districts; and . . .
[tlhe protection of all existing buildings and structures in the [Clity's
designated historic districts or on designated historic sites from
unlawful demolition, demolition by neglect and the failure of property
owners to maintain and preserve the structures.
Section § 118-502 of the City Code(emphasis added).
16. The City Code requires Historic Preservation Board review of"all applications
involving demolition, new construction, alteration, rehabilitation, renovation, restoration or any
other physical modification of any building,structure,improvement,significant landscape feature,
public interior or site individually designated in accordance with sections 118-591, 118-592 and
118- 593, or located within an historic district." Section § 118-563 of the City Code.
17. The Deauville Beach Resort is a"Contributing" structure located within the North
Beach Resort Local Historic District, and the Property falls under the jurisdiction of the City's
Historic Preservation Board. City of Miami Beach Code of Ordinances No. 2004-3438.
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CASE NO.:
DEMOLITION BY NEGLECT—THE DEAUVILLE BEACH RESORT
18. In or around July 2017, the Property was rendered uninhabitable due to extensive
damages caused by an electrical fire at the Property,forcing Deauville to close the Deauville Beach
Resort. Approximately two months after the electrical fire,the Property sustained wind and water
damage caused by Hurricane Irma, which damages were later amplified by certain illegal work
performed on the Property without a permit.
19. The Property has not re-opened since its closing in July 201'7.
20. Since the Property's closing in July 2017, the Deauville has not undertaken any
substantial remedial measures at the Property, causing the Property to deteriorate which is
jeopardizing the structural integrity of the historic"Contributing"structure.
21. Following an inspection performed by the City on July 25, 2017, the City issued
Violation US2017-01686 against Deauville Hotel Property LLC,deeming the structure an"Unsafe
Structure", and providing Deauville Hotel Property LLC fifteen (15) days to: (1) submit an
engineering report signed and sealed by electrical engineer to evaluate the cause of the fire, the
extent of the damages and methods of repair; (2) obtain approved final inspection to reconnect
power to the building;and(3)obtain approved permits for the required repairs.A copy of Violation
US2017-01686 is attached hereto as Exhibit"B".
22. Deauville failed to timely comply with the City's Violation US2017-0168.
23. In accordance with Section 118-532(g) of the City Code, pertaining to the
"Maintenance of Designated Properties and demolition by neglect",the City requires that buildings
located within local historic districts be properly maintained, and contributing structures within
the local district are required to properly maintain and preserve the structure in accordance with
standards set forth in the applicable City Code, Florida Building Code, and the City's Certificate
of Appropriateness criteria.
5
CASE NO.:
24. The City has defined "demolition by neglect" as any failure to comply with the
minimum required maintenance standards of City Code Section 118-532, whether deliberately or
inadvertently and Section 118- 532(g)(1)(a) of the City Code outlines required minimum
maintenance standards in order to preserve from deliberate or inadvertent neglect, the interior,
exterior, structural stability and historic and architectural integrity of any building located within
a local historic district. Such defects shall include, but are not limited to the following:
a) Deteriorated or decayed facades or facade elements, including, but not limited to,
facades which may structurally fail and collapse entirely or partially;
b) Deteriorated or inadequate foundations;
c) Defective or deteriorated flooring or floor supports or any structural members of
insufficient size or strength to carry imposed loads with safety;
d) Deteriorated walls or other vertical structural supports, or members of walls,
partitions or other vertical supports that split, lean, list or buckle due to defective
material or deterioration;
e) Structural members of ceilings, roofs, ceiling and roof supports or other horizontal
members which sag, split or buckle due to defective material or deterioration;
f) Deteriorated or ineffective waterproofing of exterior walls, roofs, foundations or
g) floors, including broken or missing windows or doors;
h) Defective or insufficient weather protection which jeopardizes the integrity of
exterior or interior walls, roofs or foundation, including lack of paint or weathering
due to lack of paint or other protective covering;any structure which is not properly
secured and is accessible to the general public;or any fault or defect in the property
that renders it structurally unsafe or not properly watertight;
i) The spalling of the concrete of any portion of the interior or exterior of the building.
25. Pursuant to Section 118-532(g)(1)(b) of the City Code, pertaining to "Notice
administrative enforcement and remedial action", if any building located within a local historic
district, in the opinion of the historic preservation board, Planning Director or designee, or the
City's Building Official or designee,falls into a state of disrepair so as to potentially jeopardize its
structural stability and/or architectural integrity, and/or the safety of the public and surrounding
structures, or fails to satisfy any of the required minimum maintenance standards above, the
Planning Director or designee, or the City's Building Official or designee shall have right of entry
6
CASE NO.:
onto the subject property and may inspect the subject property after 48 hours' notice to the owner
of intent to inspect.
26. On September 19, 2018,the City of Miami Beach Planning Director and the City's
Building Official determined that the Property had fallen into a state of disrepair that jeopardizes
the structural and architectural integrity of the Property, which decision was based upon several
visual inspections of the exterior of the premises,the numerous building permits that have not been
issued or finalized,the inability to occupy the structure,the fact that the Deauville's contractor had
placed the City on notice of his intent to withdraw as the Contractor of Record, and the fact that
the City issued an Unsafe Structure Board filing with Miami-Dade County with regard to the
Property.
27. More specifically,the Planning Director and Building Official determined that the
Property did not meet the required minimum maintenance standards established in 118-
532(g)(1)(a) which include, inter alia, deteriorated or decayed facades or facade elements,
including,but not limited to, facades which may structurally fail and collapse entirely or partially;
deteriorated or inadequate foundations;deteriorated or ineffective waterproofing of exterior walls,
roofs, foundations or floors, including broken or missing windows or doors; defective or
insufficient weather protection which jeopardizes the integrity of exterior or interior walls, roofs
or foundation, including lack of paint or weathering due to lack of paint or other protective
covering; any structure which is not properly secured and is accessible to the general public; any
fault or defect in the property that renders it structurally unsafe or not properly watertight; the
spalling of the concrete of any portion of the interior or exterior of the building.
28. Based upon the Planning Director's and the Building Director's findings, in
accordance with Section 118-532(g)(1)(b) of the City Code, the City issued its "48 Hour Prior
Notice Of Intent To Inspect Pursuant To The City's Demolition By Neglect Procedures",intending
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CASE NO.:
to inspect the interior and exterior of the Property. The 48 Hour Prior Notice of Intent is attached
hereto as Exhibit"C".
29. On or about October 8, 2018, the City and Deauville held an inspection at the
Property pursuant to the 48 Hour Prior Notice Of Intent to Inspect Pursuant to the City's
Demolition by Neglect Procedures.
30. At the October 8, 2018 inspection, the City confirmed that the Property did not
Meet the required maintenance standard performed set forth in City Code Section 118-532(g).The
inspection photos are attached hereto as Composite Exhibit"D".
31. The City notified the Deauville on October 11, 2018 that the inspection confirmed
that the Property did meet the minimum required maintenance standard set forth in City Code
Section 118-532(g), and that the City would institute an action to avoid demolition by neglect
claim unless the Deauville undertook meaningful action to place the Property in compliance with
the established maintenance standard, attached hereto as Exhibit"E".
32. To date,Deauville has failed to perform any substantial work at the Property which
would be required in order to place the Property in compliance with Section 118-532(g)of the City
Code.
33. Deauville's continuing failures to perform the required repair and remediation work
to the Property is resulting in the ongoing deterioration of the structure, which unless resolved,
will deteriorate beyond repair requiring the demolition of the historic Property, a"Contributing"
structure located in the North Beach Resort Local Historic District.
34. A case is currently pending before Miami-Dade County Unsafe Structures Board,
Case No. US2017-0168 ("Unsafe Structures Case") related to Violation US2017-0168 issued by
the City.Supra at 21-22.
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CASE NO.:
35, At its meeting on December 12, 2018 regarding the Unsafe Structures Case, the
Miami-Dade County Unsafe Structures Board upheld the recommendation of the City's Building
Official and entered the following ruling:
a) The structure(s) are to be maintained secure, clean and sanitary, free of debris,
overgrown grass or weeds and free of discoloration or graffiti.
b) A temporary electrical power permit must be applied for within thirty(30) days of
the date of the ruling.The temporary electrical permit shall be obtained within sixty
(60)days from the date of the ruling. The building permit(s)to repair windows and
for concrete spalding must be applied for within sixty (60) days after obtaining the
temporary electrical permit,with the understanding that no work can be performed
until the temporary power permit is issued.
c) A 40-Year Recertification Report shall be submitted within one hundred twenty
(12)days from obtaining the temporary electrical permit to the City of Miami Beach
Building Official as required in standard form signed and sealed by a structural and
electrical engineer and to obtain all necessary permits to repair and restore said
structure.
Unsafe Structures Board Order,attached hereto as Exhibit"F".
36. The Deauville has not applied for temporary power within thirty (30) days of the
Unsafe Structures Case ruling, and the Deauville has not undertaken any meaningful steps
necessary to comply with any other ruling from the Unsafe Structures Board Order.
37. On January 24, 2018, the City issued Violation ZV2019-02352 to Deauville
Associates LLC based on the failure to comply with the minimum required maintenance standards
established in Section 118-532(g)of the City Code.A copy of Violation ZV2019-02352 is attached
hereto as Exhibit"G".
38. In fact, it is clear that the Deauville has no intention on voluntarily undertaking the
repairs necessary to bring the Property into compliance with the City Code and the City's Historic
Preservation Board, and Deauville is hedging its bets that the City will eventually allow the
demolition of the structure: "It would be a favor that they demolish the [Property] and I get rid of
this nightmare that I have. That's the truth." Unsafe Structures Case Hearing Transcript, P. 38, 7-
10, December 12, 2018, attached hereto as Exhibit "H". "So, the building is full of water, full of
9
CASE NO.:
mold and mildew. We have no power. I mean,what do we do? We have no money.Id at P.33, 13-
16.
39. Incredibly, the only work that the Deauville has performed on the Property since
the Deauville Beach Resort closed its doors to the public was the illegal work Deauville performed
on the roof without any construction permit, which Deauville officials freely admitted under oath
at the Unsafe Structures Case hearing.See Exhibit"H",Pages 41-42; 19-25, 1-0;Pages 53-54;20-
25, 1-3.
COUNT I
INJUNCTION PURSUANT TO SECTION 118-532(g)OF THE CITY CODE
TO AVOID DEMOLITION BY NEGLECT
40. The City re-alleges and reincorporates Paragraphs 1 through 39 as if fully set forth
herein.
41. This is an action for injunctive relief pursuant to Section 118-532(g) of the City
Code.
42. The Property is located within the City's North Beach Resort Local Historic District
and is classified as a"Contributing" structure.
43. Section 118-532(g) of the City Code requires that the owner of any building,
structure, improvement, landscape feature, public interior located within a historic district to
properly maintain and preserve such building or structure in accordance with the Florida Building
Code and Section 118-532(g) of the City Code.
44. The City sent Deauville a 48 Hour Prior Notice Of Intent To Inspect Pursuant To
The City's Demolition By Neglect Procedures. See Exhibit"C".
45. On or about October 8, 2018, the City met with the Deauville at the Property
pursuant to the 48 Hour Prior Notice Of Intent to Inspect Pursuant to the City's Demolition by
Neglect Procedures.
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CASE NO.:
46. The inspection performed on October 8, 2018 confirmed that the Property did not
meet the required minimum maintenance standards as set forth in Section 118-532(g) of the City
Code. See Composite Exhibit"D";see also Exhibit"E".
47. To date, Deauville has failed to perform work required to put the Property within
the required minimum maintenance standards set forth in by Section 118-532(g)of the City Code.
48. The City is entitled to an injunction requiring the Deauville to take the remedial
and corrective action necessary to restore the Property's compliance with the required'minimum
maintenance standards set forth in by Section 118-532(g) of the City Code. Section 118-
532(g)(1)(c)of the City Code.
49. The Property is a"Contributing"structure located in the North Beach Resort Local
Historic District, subject to the City's zoning regulations pertaining to historic properties, and the
City will suffer irreparable harm unless the Property is brought into compliance with City Code
Section 118-532(g) because Deauville's continuing failures to perform the required repair and
remediation work to the Property will result in the ongoing structural and architectural
deterioration of an iconic Miami Beach property,and,unless resolved,will ultimately result in the
Property's deterioration beyond repair requiring the demolition of the Property.
50. There is no other adequate remedy at law to the City.
51. The public interest supports the entry of an injunction pursuant City Code Section
118-532(g) because the public has an interest in the maintaining of historical properties and
structures located within the City.
WHEREFORE,the Plaintiff,the City of Miami Beach,respectfully requests that that this
Court enter an injunction in its favor against Deauville, requiring Deauville to take the remedial
and corrective action necessary to restore the Property's compliance with the required minimum
maintenance standards set forth City Code Section 118-532(g), together with the City of Miami
11
CASE NO.:
Beach's reasonable attorney's fees and costs pursuant to City Code Section 118-532(g)(5),
together with such further relief that this Court deem just and proper.
COUNT II
BREACH OF FIDUCIARY DUTY TO REMIT RESORT TAXES
AGAINST DEAUVILLE ASSOCIATES LLC
52. The City re-alleges and incorporates paragraphs 1 through 39 as if fully set forth
herein.
53. This is an action for breach of fiduciary duty against Deauville Associates,LLC for
failure to remit resort taxes to the City of Miami Beach pursuant to Section 102-307 of the City
Code. •
54. The City levies a tax of four percent(4%)on the rent of every occupancy of a room
or rooms in any hotel,motel,rooming house,or apartment house in the city,and two percent upon
the total sales price of all items of food, beverages, alcoholic beverages or wine sold at retail of
any restaurant. Section 102-307(a)of the City Code.
55. Such tax constitutes a debt owed by the occupant or guest to the City. Section 102-
307(b) of the City Code.
56. The Deauville Associates, LLC owes a duty to the City to remit all resort taxes
collected from the Deauville Beach Resort's occupants or guests to the City.
57. The City performed an audit of the Property and Deauville Associates, LLC
regarding the Deauville Associates, LLC's resort tax obligation to the City, identifying that the
Deauville Associates, LLC owes in excess of$91,2120.48 to the City for its resort tax obligations.
A copy of the Audit is attached hereto as Exhibit"I".
58. On September 19, 2018,the City recorded a claim of lien for unpaid resort taxes in
official records Book 31146, Page 3912 of the Public Records in and for Miami-Dade County,
Florida. A copy of the claim of lien is attached hereto as Exhibit"J".
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CASE NO.:
59. Deauville Associates, LLC has knowingly, willfully, and recklessly breached the
fiduciary duties of good faith, loyalty and due care owed to the City to remit resort taxes.
60. The City has been damaged in excess of $91,2120.48 for Deauville Associates,
LLC's breach of fiduciary duty remit resort taxes to the City.
WHEREFORE,the Plaintiff,the City of Miami Beach,respectfully requests that that this
Court enter judgment in its favor against Deauville Associates, LLC, awarding the City damages
in excess of$15,000.00 plus interest, fees, reasonable attorney's fees, costs, and any other relief
that this Court deem just and proper.
COUNT III
APPOINTMENT OF RECIEVER
61. The City re-alleges and incorporates paragraphs 1 through 39, 42 through 51, and
54 through 60 as if fully set forth herein.
62. The City seeks the appointment of a receiver to: (1) ensure the collection of all
resort taxes owed to the City by Deauville Associates, LLC; (2)manage the Property; (3)oversee
all repair and remediation work required for the Property to comply with Section 118-532 of the
City Code; (4) take all required measures to rectify all outstanding City violations related to the
Property; (5) collect and remit all outstanding taxes related to the Property; and (6) collect
and remit to the City all civil penalties or fines against the Property or Deauville pursuant to the
applicable sections of the City Code.
63. The City has a clear right and entitlement to: (1) collect Deauville Associates,
LLC's resort tax obligations to the City; (2) to require Deauville to manage and maintain the
Property subject to the minimum maintenance standards set forth in City Code Section 118-
532(g)(5); (3)cause Deauville to undertake repair and remediation work required for the Property
to comply with Section 118-532 of the City Code;(4)require that Deauville rectify all outstanding
13
CASE NO.:
City violations related to the Property;and(5)collect civil penalties and fines against the Property
or Deauville pursuant to the applicable sections of the City Code.
64. As such, the City has a strong likelihood of success on the merits.
65. The Property has remained closed since July 2017, and Deauville has failed to
perform any significant remedial or repair efforts that would place the Property in compliance with
City Code Section 118-532(g)(5).
66. The Deauville has indicated that it has no intention of performing the work required
to place the Property within compliance with the City's Land Development Regulations and City
Code Section 118-532(g)(5). Supra at 38.
67. Deauville Associates LLC has failed to remit resort taxes due and owing to the City
in excess of$15,000.00.
68. The Property is in a state of disrepair and is being wasted all while Deauville is not
taking any significant steps towards performing any work necessary to restore the historic Property
and re-open the Deauville Beach Resort.
69. There is good cause to believe that immediate and irreparable harm to the City's
interests in maintaining the historical status of the Property will occur from Deauville's and the
Property's ongoing violations, tax obligations and failure to maintain and repair the Property
without the appointment of a receiver.
70. There is no other adequate remedy at law to protect the Property from the ongoing
waste, deterioration, accruing fines, liens, and violations, and as such the immediate appointment
of a receiver over the Property is necessary to protect the City's interest in the Property.
WHEREFORE,the Plaintiff,the City of Miami Beach,respectfully requests that that this
Court appoint a receiver and order that the receiver takes any and all necessary action required to:
(1)ensure the collection of all resort taxes owed to the City by Deauville Associates,LLC;
(2) manage the Property;
14
CASE NO.:
•
(3) oversee all remediation and repair work required for the Property to comply with
Section 118-532 of the City Code;
(4) take all required measures to rectify all outstanding violations related to the Property;
(5) collect and remit all outstanding taxes related to the property;and
(6)collect and remit to the City all civil penalties or fines against the Property or Deauville
pursuant to the applicable sections of the City Code.
DATED this 4th day of February,2019.
Respectfully submitted,
RAUL J, AGUILA, CITY ATTORNEY
CITY OF MIAMI BEACH
1700 Convention Center Drive,4th Floor
Miami Beach, Florida 33139
Tel: (305) 673-7470/Fax:(305) 673-7002
By: `S(`1
St yen Rothstein, Esq,
Deputy City Attorney
Florida Bar No. 727547
Jason Jacobson, Esq, •
Assistant City Attorney II
Florida Bar No, 118276
15
MIAMI BEACH
OFFICE OF THE CITY MANAGER
NO. LTC# 638-2018 LETTER TO COMMISSION
TO. Mayor Dan Gelber and Members of e City C. mission
FROM: Jimmy L. Morales, City Manager �►
DATE: December 13th 2018
SUBJECT: Building Department Deauville Hotel Unsafe Structure Case Update
This memorandum is an update of the Deauville Hotel repairs and recertification process. The
city's goal is to prevent the demolition of the building by owner neglect and to ensure that the
owner undertakes the required repairs.
The city's case against the Deauville was taken to the Miami-Dade County Unsafe Structures
Board on Dec. 12, 2018. The Building Department presented the following issues:
• The 40 year recertification report was due on April 289' 2017
o Extensions were requested
o No action was taken to submit a report certifying the buildings structural and
electrical system
o City referred to the Unsafe Board in October 2018
• An electrical fire forced an evacuation of the building on July 25, 2017
o The permit for replacement of the damaged items was:
• Applied for on October 13, 2017
• Issued on April 2, 2018
• Finalized without energizing on July 6, 2018
• FPL vault issue
o Meeting on June 7. 2018
o No action was taken to obtain a permit
The Building Department presented a recommendation request to the unsafe structures board as
follows:
o 30 days to apply for the temporary power permit
o 60 days to obtain the temporary power and work on obtaining the permits to repair
the windows and the permit for concrete restoration, with the understanding that
no work can commence until the temporary electrical permit is issued, installed
and inspected.
o 120 days to submit the preliminary 40-year recertification report to the Building
Department.
The Planning Department presented the historic nature of the structure and the city's
unwillingness to allow the buildings disrepair and deterioration to continue.
•
Ownership of the Deauville indicated that the City had limited use of generators to 12 hours per
day; their Insurance carriers have not provided additional funding for the FPL vault relocation;
that they have spent over $4 million dollars on repairs and they have repaired portions of the roof
The Unsafe Structures Board voted unanimously to pass the Building Department's
recommendation as submitted. We will continue to provide periodic updates.
JLM/SMT/AS
MIAMI BEACH
OFFICE OF THE CI MANAGER
NO. LTC# LETTER TO COMMISSION
608-2018
TO: Mayor Dan Gelber
Members of the City Commission
FROM: Jimmy L. Morales, City Manager
DATE November 15, 2018
SUBJECT Building Department Deauville Hotel Unsafe Structure Case Update
This memorandum is an update of the Deauville Hotel repairs and recertification process. The goal is to
prevent the demolition. by owner neglect, of the building, and to ensure that the owner undertakes the
required repairs. The case against the Deauville was taken to the Miami-Dade County unsafe structures
board. After many months of extensions and anticipating progress towards essential building repairs, the
City of Miami Beach Building Department was scheduled to present the case on November 14'"to the Unsafe
Structures Board. The item was continued to the December meeting, due to lack of quorum On December
12'"2018, the Building Department will be presenting the following issues:
• The 40 year recertification report was due on April 280 2017 40YR1700676
o Extensions were requested
o No action taken
o City referred to the Unsafe Board in October 2018
• An electrical fire forced an evacuation of the building on July 25th 2017
o The permit for replacement of the damaged items was.
• Applied for on October 13'"2017
• Issued on April 2"d 2018
• Finalized without energizing on July 6'"2018
• FPL vault issue
o Meeting on June 7'"2018
o No action taken
In order to recertify the building electrically and structurally, the electrical vault would require
relocation. FPL will not allow energizing the original vault due to unsafe conditions, and concrete
restauration work would need to be performed on the exterior spalling concrete.
Staff will provide an update after the December 12th meeting.
JLM/SMT/AS
MIAMI BEACH
OFFICE OF THE CITY MANAGER
NO. LTC# LETTER/TO COMMISSION
090-2018
TO Mayor Dan Gelber and Members of t e City Commission
FROM: Jimmy L. Morales, City Manager
DATE: February 21. 2018
SUBJECT: North Beach Community Update
The purpose of this Letter to Commission is to provide you with an update on activity and progress
made in the North Beach community. specifically in regards to supporting small and local
businesses.
The City, in partnership with the Greater Miami Visitors Bureau, extended an invitation for all North
Beach restaurants and commercial businesses to participate in their Romance Month special offers
and events during the month of February. This offering is typically only extended to GMCVB
members. but in this case—and particularly with the intention to support local businesses while the
Deauville Hotel remains closed — the offer was extended to all North Beach restaurants and
businesses. This opportunity allows for North Beach establishments to solicit and extend unique and
exciting offerings during the month of February. Staff will continue to partner with the GMCVB to
determine additional ways to better support and highlight North Beach through creative marketing
and promotions.
Additionally, Staff has retained Street Plans. an urban planning and design firm,to complete the Rue
Vendome street closure. Street Plans, along with members of City staff. met on February 5. 2018.
to begin the planning process. The proposed date for completion is March 2. 2018. allowing for the
official street closure unveil to be held during the North Beach First Friday event. The proposed date
is subject to change depending on the purchasing and shipment of supplies.
JLM/KGB/ES/mh
C: Eva Silverstein. Director. Tourism, Culture and Economic Development
Kathie Brooks. Assistant City Manager
MIAMIBEACH
City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov
COMMISSION MEMORANDUM
TO: Mayor Dan Gelber and Members o the City 7'ommission
FROM: Jimmy L. Morales, City Manager
Raul J. Aguila, City Attorney 05f
DATE: June 6, 2018
SUBJECT: DISCUSSION: THE DEAUVILLE BEACH RESORT
HISTORY
On March 7, 2018, at the request of Commissioner Kristen Rosen Gonzalez, the City
Commission referred the subject item to the Land Use and Development Committee for
discussion (Item R9K).
On March 14, 2018 the item was continued to the April 4, 2018 LUDC meeting. On April
4, 2018 the LUDC discussed the item and continued it to a date certain of May 23, 2018.
On May 23, 2018 the LUDC discussed the item and referred it to the full City
Commission for discussion and to consider all available and aggressive action to compel
compliance with all applicable regulations by the Deauville. A copy of the LUDC minutes
summary is attached as Exhibit 1 to this memorandum.
ANALYSIS
The Deauville Hotel, located at 6701 Collins Avenue was constructed in 1957 and
designed by noted local architect Melvin Grossman. The subject structure is an excellent
example of the Post War Modern (MiMo) style of architecture and is classified as a
contributing building within the North Beach Resort Local Historic District.
The hotel is currently vacant and not operating due to a fire in July, 2017. While permits
have been applied for, no serious building activity is taking place.
Maintenance of Designated Properties and Demolition by Neglect
Section 118-532(g) of the City Code provides a mechanism for the City to initiate the
demolition by neglect process for a designated property. Such process may be initiated
if it is determined by the Historic Preservation Board, Planning Director, or Building
Official that a designated property has fallen into one or more of the following categories:
• A state of disrepair so as to potentially jeopardize its structural stability and/or
architectural integrity;
Commission Memorandum
June 2098 Page 2 of 3
• A state of disrepair, so as to potentially jeopardize the safety of the public and
surrounding structures;
• A state of disrepair that results in the property failing to meet the minimum
maintenance standards.
The following is a summary of the demolition by neglect process:
1. After 48 hours' notice to the owner of intent to inspect, the City may enter and
inspect the property.
2. Upon completion of the inspection, a report delineating the findings of the
inspection, as well as any remedial action required to address any violation of the
required minimum maintenance standards, shall be immediately transmitted to
the property owner. The City may require that the property owner retain a
professional structural engineer to complete a structural evaluation report to be
• submitted to the City.
3. Upon receipt of such report, the property owner shall substantially complete any
. remedial or corrective action within 30 days of receipt of the report, or within such
time as deemed appropriate by the Building Official, in consultation with the
Planning Director. Such time may be extended at the discretion of the City's
Building Official.
If the property owner refuses access to the property, and/or fails to undertake and
substantially complete the required action noted above, within the specified time frame,
the City may, at the expense of the owner, file an action seeking an injunction ordering
the property owner to allow access to the property and/or take the required remedial and
corrective action to restore the building's compliance with minimum maintenance
standards. Additionally, the City may seek civil penalties (up to $5,000 per day), for each
day that the remedial and corrective action is not taken).
UPDATE
On May 8, 2018 the Historic Preservation Board discussed the Deauville Hotel, including
a status report provided by the City Attorney. The Board concluded the item with no
recommendation.
Building Permits for building repair were issued on April 2, 2018, and an inspection was
performed on April 13, 2018. Also, the 40 year recertification was extended and will now
expire on June 7, 2018. Additionally, the Building Official has been in contact with the
Owner/Contractor, Engineer, and Owners Representative regarding the Deauville
project, and has advised that additional access and inspections for some concealed
work are still needed.
Possible violations due to Building Department knowledge or exterior inspection:
• 40 year recertification (no knowledge of roof, or individual room status)
• Upgrade electrical work
• Rebar issues/structural issues (part of the 40 year recertification)
• Fire repairs (electrical fire from November 2017)
• Mold issues (no a/c for over 8 months)
Commission Memorandum
June 2018 Page 3 of 3
• minimal building maintenance standards
• Window and door replacement.
A "demolition by neglect" cause of action in the state of Florida appears to be a case of
first impression for the Court system. Those communities (Coral Gables, St. Augustine,
and Tampa) that have Historic Preservation ordinances have not created precedent for
the implementation of demolition by neglect. Cities like New Orleans and New York
have precedent, but, they also appear to have a funding source for conducting the
repairs to private property.
To seek demolition by neglect the City will need to meet the criteria for injunctive relief:
The proper issuance of a temporary injunction requires a showing of four elements: "(1)
irreparable harm; (2) a clear legal right; (3) an inadequate remedy at law; and (4) that the
public interest will be served." Weinstein v. Aisenberg, 758 So. 2d 705, 706 (Fla. 4th
DCA 2000). A municipality does not have to post a bond, but, if it doesn't, the
municipality may be exposed to unlimited damages. As such litigation would be a case
of first impression in the state, whether preserving a private property owner's structure,
is sufficient reason for an injunction', that the City does not have an adequate remedy at
law (require reconstruction). Furthermore, if the City is successful with the injunction
claim, the City would need to identify a funding source to do the work. The City
ordinarily needs to bid out work, publicly procure services, execute contract via City
Commission authorization for work over $50,000, and then enter the premises, assess
the damage, and start the repairs. The City currently has no cost estimate to ensure that
the building is brought up to a standard that would ensure that the building is not
"demolished by neglect." Moreover, it is unclear whether the scope of work would
require a Historic Preservation Board public hearing, and development order.
The Administration is quite wary of taking on any obligation with respect to this building
beyond the regulatory function we now perform. This is a very large, historic building.
The costs of even minimal remediation could be extensive, perhaps even into the
millions of dollars. Even if we had a funding source, there is no way to ensure that the
owners have the financial wherewithal to reimburse the City for any work we might
perform. So long as the building remains vacant, it does not pose a hazard to anyone. I
think we should fully explore all other alternatives before even seriously considering
taking on the financial and logistical obligation of renovating the Deauville.
CONCLUSION
The Admininstration recommends that the City Commission discuss the item and
provide appropriate policy direction.
JLM/SMT/TRM
T:\AGENDA\2018\06 June\Planning\Discussion-Deauville Beach-MEMO.docx
Please note, that the City's Historic Preservation Board could require reconstruction of the exact
same structure, if it deems the building to have been deteriorated without good cause.
Item 2. Discussion regarding the Deauville Beach resort
Commissioner Ms. Aleman:
Now I know that this one is being monitored, now and on an ongoing basis in front
of the preservation board but I wanted to hear from the sponsor to see if there's
anything she wants us to take action on.
Commissioner Kristen Rosen Gonzalez:
I mean, I would like to take action on the fact that there is no action. Hahah
When you read the history, (gets interrupted)
Commissioner Aleman:
Let's hear from the gentleman and then I can fill you in
Commissioner Ms. Aleman:
Would you like to address Committee on this item?
Please when you come up state your name for the record:
Blake Young
My name is Blake Young and I am the President of the Regatta Condominium
Association at 6580 Indian Creek Drive.
I've watch, ahh, I lived on 14th Avenue, I've heard all the discussions here and I
appreciate your attention to all that and I agree something needs to be done with
that. I now live up in North Beach and that was a nice Hotel and of course it went
down. About a year ago this time, with an electrical fire and it's been compounded.
Hum, I've surveyed some of the vendors, the people in the different locations, the
new businesses that have opened there, and talk with them about how they feel
about it.
Many of them have said that they wouldn't have opened with knowing that that
hotel was going to be in that state. That makes me kind of concerned as a resident
of that area, because it makes me feel like the area is kind of dying behind that.
And I've heard that sentiment because I've reviewed all the different meetings you
guys have had. And what I'm concerned about is, we've talked about all these
incentives to help with these buildings behind here, I want to, I'm not sure, the
word on the street is, that the fines are so drastic right now, and the violations so
high, that's what the residents are saying and I've heard the meetings and it seems
to be to the contrary. But I'm concerned that, this is like the clash of the Titans and
meanwhile the people below are going to suffer the most. Etc... And the game that
may be played and they may be doing is dragging their feet so it has to be
demolished. That's just going to destroy that business right there, that amount of
dust and construction. I'm sorry go ahead....
Commissioner Kristen Rosen Gonzalez:
No, no go ahead and finish...
Blake Young:
It is imperative that we get that building up and running. I've talked to other
building people who are pretty proficient in that, and we may be getting to a point
of no return. Due to the fact that, that's been un-air conditioner since December, the
amount of remediation. The cost that is going to be involved to bring that building
back to standard. To safe standards.
It's time to act, it's time to do something, we could maybe offer them some
incentives or do something to bring them along. It's a Historic Monument, it's a key
point, we're talking about the North Beach overlay. So, we have a beautiful
landmark there that is at the point of crumbling and that's definitely going to affect
the North Beach Development Project because it's not where you guys are talking,
it's right on the edge.
Commissioner Kristen Rosen Gonzalez:
So I would like to say something to John;
It's been more than a year that we've had it on the agenda now for 6 months and
we have done nothing. I would like to make a motion to direct staff to do whatever
you need to do, to possibly be most aggressive to avoid losing the Deauville to a
Demolition Process, which is what we are allowing to happen. Right now with the
current inaction. (Interrupted) Wait, wait. When you go into the lobby, I mean that
is one of our greatest historic resources. It should be top priority. Let it roll over
month to month as not just the hotel but the neighborhood deteriorates around it.
And we are a party to it because we are not doing anything.
My motion is to progressively pursue some action against the Deauville beyond what
we are currently doing.
Eve Boutsis:
If I may speak, I hope there isn't any disagreement from administration nor from
myself or from anyone else. Since you brought it on about two months ago, as far
as land use and HPB Item, we have actually had a meeting with the Planning
Department, and Code. Each one of those disciplines IS taking action okay.
Now, the normal process that we have is, once they starting taking action, there is a
Special Master. I'm just going to lay it out. There are often delays, because the
Special Master has Independents, they are Quasi-Judicial, they can sometimes give
extensions of time for compliance you also have, you know, the violations from the
building department which can lead to unsafe structure process, which we all know
which ultimately means that if they don't want to fix, it's gets a Demolition Order.
And that's what we are all trying to prevent. So what I have asked for is
enforcement from the various department so that, can I finish, I'm sorry... I'd like to
then go with the direction of the Commission, once we have a record to do what is
in our CODE, for this Demolition by neglect, which is in this agenda. The problem is
that without that record, and saying that we've tried the different efforts to get an
injunction, of course going to say what have you done? Why are you coming to me?
why are you changing the process now? We've never used that process. I wanted to
clear the record before going in, to say, look we've tried. We've tried to work the
property owner; we have these various violations. If I take it the normal route and
go to unsafe structure at that point, I will lose the building. But then you have to
commit to funding, we have to go in and actually do the assessment because if they
are not going to do it, then we have too.
And there's going to be a need for a financial commitment and that is what I'd have
to come to you all for.
Commissioner Kristen Rosen Gonzalez:
So if you wanted extra information, I can show you several emails that I sent to the
owner that went unanswered and phone calls that I had with the City Manager. I
think it has been on the agenda for longer than just two months. At least four to six
months, and HPB too.
I think we have an established recorded here.
Commissioner Ms. Aleman:
We need to have this meeting organized and just casual conversations.
Eve Boutsis:
I'm sorry the only thing I would just like to get in a couple of violations adjudicated,
so that I have a record to take to court that can substantiate the actions we are
trying to take for the first time.
Commissioner Ms. Aleman:
It sounds like Commissioner Gonzalez is considering in her mind considering to
pursue demolition by neglect process. Who would take that action? Land Use
Committee, HPB?
Eve Boutsis:
City Commission, I'm sorry there's an HPB part to it, then the City Commission for
the authorization of funds.
Commissioner Kristen Rosen Gonzalez:
I want to file a lawsuit against the Deauville. What? Why are you looking at me like
that?
Eve Boutsis:
I'm not, I'm just thinking ma'am. I'm trying to give you a look.
Commissioner Kristen Rosen Gonzalez:
We need to proceed with BOTH, lawsuit and demolition. This had been going on for
a year.
Commissioner Mr. Gongora:
They are playing games with the city, keep permits open, do the bare minimum, etc.
We can do something more drastic, it's declared an unsafe structure. We can fix it
and lien them, but we don't want to spend city money, it's their responsibility. So
the original motion is perfect, take aggressive action to force them into compliance.
Commissioner Ms. Aleman:
We're not asking the lawsuit to be triggered at this moment.
Commissioner Kristen Rosen Gonzalez:
We are leaving that up to Eve to decide what that is, etc... She'll come back to us.
Commissioner Ms. Aleman:
But Eve can't decide to file a lawsuit.
At our next land use meeting, we can discuss. What are our most aggressive
options?
Eve Boutsis:
The only other option is that the Manger can make a recommendation to the city
Commission at the next meeting of the City Commission whether he wants to do
that or not. That above my pay grade.
Commissioner Ms. Aleman:
So the motion is that the City Manager come back with the most aggressive action
plan.
Mr. Mooney
It will be on the Agenda as an R9 Discussion Item.
Commissioner Ms. Aleman:
Mr. Cohen, do you have a comment?
Mr. Cohen
Different perspective to this, the Deauville is an important asset for North Beach. It
has a historical importance and financial importance. Shows how fragile our area is.
The amount of money is like starting from scratch.
I spoke to the owners... myself and Daniel Veitia and we had a meeting with them
and they were very frustrated. Things just started to snowball... The city and the
City manager to meet with these owners and find a way to get this hotel back
online...
So we can do this quickly and give them as much assistance as we can.
Commissioner Ms. Aleman:
I agree. So maybe we can hand holding and assist them. Make an amendment to
the Motion, etc.
Mr. Mooney:
The Building Official has been meeting with their engineering team
Commissioner Kristen Rosen Gonzalez:
The property is on the market right now, right?
Eve Boutsis:
Yes, I understand that for a very large price on the market for sale, yes.
Commissioner Kristen Rosen Gonzalez:
We were here last month with the owners, correct?
Eve Boutsis:
Yes, they were here.
Commissioner Kristen Rosen Gonzalez:
Yes, they were here and Ana Salgueiro, Building Director. They were giving them the
temporary permit for the electric. And they are not doing the work that they could.
My fear is a head on demolition and the Deauville is gone.
Commissioner Ms. Aleman:
Okay, I think we're done.
We got our motion.
By acclimation. This concludes our agenda.
The May 23rd, Land Use Meeting is adjourned.
Note:
Only Blake Young's and Eve's testimony is verbatim.
Typed by: Emily Ana Fuentes
Done on: 5/30/2018
After Action June 6, 2018 City of Miami Beach
Commission Meeting
with the rating agencies and keeping them apprised of the plan as well as tweaking with
upcoming new technology is a strength.
Commissioner Aleman inquired if it is a benefit or helpful to the City to have outside
organization experts from Harvard and the Urban Land Institute come in and weigh in on
what they are doing.
Ms. Santamaria stated that having the experts weigh in is helpful to show that the City has
the outside and independence expertise, and having Columbia University offering to come
in is an added value.
Commissioner Samuelian inquired if Ms. Santamaria knows what percentage of cities
have higher credit ratings than Miami Beach.
Ms. Santamaria stated that there are very few that have AAA ratings such as Pittsburgh
County, Palm Beach County and maybe Boca Raton, but it is rare; however, the State of
Florida is rated AA by the one of the three rating agencies, so it does not have AAA from
all three rating agencies.
Commissioner Samuelian added that the residents of Miami Beach should feel good about
the credit ratings. In regards to feedback, resilience seems to be the topic of interest. He
asked Ms. Santamaria what types of questions the credit agencies are asking.
Ms. Santamaria answered that they are asking about the City's commitment, the size of
the capital plan, what the results have been, and they have had conversations with
Standard & Poor's where Assistant City Manager Eric Carpenter was able to provide the
actual results in terms of the numbers of the reduced stormwater after certain projects
were implemented thus far, and that was very positive. She advised the City to continue
communicating with them, make edits as they go along and have new technology and
experts coming to help is a good story for the rating agencies.
Vice-Mayor Steinberg thanked Ms. Santamaria for her verbal presentation and recognized
Commissioner Aleman for placing the item on the Agenda.
10:15:07 a.m.
SUPPLEMENTAL MATERIAL 1: MEMORANDUM
R9 S DISCUSSION REGARDING THE DEAUVILLE BEACH RESORT.
Planning/Office of the City Attorney
Commissioner Kristen Rosen Gonzalez
ACTION: Discussion held. Ana Salgueiro and Thomas Mooney to handle.
Commissioner Rosen Gonzalez stated that since Hurricane Irma, the Deauville was closed
and the City is very sorry for the loss. The entire commercial zone around the Deauville is
suffering due to this. She knows that the Deauville had problems getting their electrical
permits back, but the Commission needs some reassurance that the Deauville will be
restored, as it is one of the City's greatest historic resources. The Beatles famously played
at the Deauville, and the entire community is upset over its closure. She received a
PowerPoint from the condominium adjacent to the Deauville and the area has become
dangerous, the gates in the back of the Deauville are open, people can get in, but most
importantly, the City wants to help the Deauville in any way. The
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Neighborhood/Community Affairs Committee passed a motion for the City to do anything
possible to make sure that the Deauville is preserved and up and running again.
Melisa Meruelo, on behalf of the Deauville Hotel, wanted to correct some statements that
were made at the last meeting. First, the Deauville was called "neglectful" for not
answering emails, and she wants to set the record straight. She received one email on
January 3, 2018, and since then they have spoken at meetings before the City
Commission. Her father has not received any emails and she checks her grandmother's
emails and nothing was received. Since the property closed on July 25, they have been
working five days a week diligently without taking a week off. At times, there can be five to
15 workers on the Deauville payroll working towards getting electrical power restored.
They have been working closely with Ana Salgueiro, who has been collaborating with
them, and so far, the Deauville has pulled several permits and has complied with all the
inspections. They met yesterday with City Manager Morales, and although there has not
been further action, there have been more occurrences of progress. For example, FPL just
informed the Deauville that they needed to rebuild their electrical vault. To get full power, it
could be a 9 to 12-month process. Building Director Salgueiro has generously offered her
time tomorrow morning to meet with the Deauville and FPL, and that is where they stand
as of now. At the last meeting, many statements were made that the Deauville was not
doing all the work they could do, but she does not know what more work they can do
without full power.
Ana Salgueiro, Building Director/Building Official, explained that they met yesterday with
Melissa Meruelo, her family, her lawyers, engineers, and architects, and they do have the
electrical permit and a building permit that is associated to properly run the electrical wires
and protect the electrical equipment. The way the building is set up now, to have the wires
come in and go into the electrical room they need to build a protective case, which
requires a building permit. Also needed are is an electrical permit, to do the repairs.
Because of this, the pump had to be moved outside, so the Deauville also had to get a
permit to move the fire pump to the exterior and then the fire pump needs to be outside of
what was the electrical vault room. It has been a process; the Deauville currently has a
permit for the backup emergency generator. They also have a permit for the electrical to
repair as well as a building permit associated with the electrical work. As Ms. Meruelo
said, what happened was that about a month and a half ago, FPL indicated that the
Deauville needed to move the vault room and make the vault comply with current Code,
which means the vault needs to be raised above street level. Currently the vault is at the
ground floor below ground grade level. FPL has asked the Deauville to upgrade and redo
the vault. There is a meeting tomorrow with FPL and she told the Deauville that will attend
the meeting either in person or by telephone to try to get some sort of partial power if they
cannot restore full power, and if there is a commitment from the hotel to work on restoring
the vault, so that they can at least have the power to do the repairs. To do the structural
repairs to the eyebrows and to the exterior of the building, and even assess everything in
the building, they will need some power to get equipment on elevators and move things
within the building in an effective manner. She also spoke with the Deauville specifically
about securing the pool level, as they need something permanent to secure it from the
exterior from the beach to make sure no one can easily come in and come through the
back. The Deauville would like to be able to have some exterior lighting, once the power is
restored, to improve security in the area. The Deauville has plans to make some major
renovations to the building and those will take longer, but this is temporary, to get things
up and running. The hotel may not be open for a while, but if they do not take care of the
emergency things, since the building was not in the best shape when they had the fire, if it
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Commission Meeting
continues to be uncared for it declines further. Anything she can do to help the Deauville
restore the power she will do so that they can continue working.
Ms. Meruelo added that they cannot obviously enter the building to assess the safety of
the structure without full power, and that will determine the extent of the development
plans. In addition, to get the Certificate of Occupancy, they need to order a back-up
generator, which is arriving early next week. All the electrical work has been done to be
able to power the generator upon arrival. In addition, they started working with architect
Kobi Karp who was involved with the Deauville plans originally. Residents have asked the
City to help the Deauville — Ms. Meruelo asked the Commissioners for the City to offer
incentives instead of pursuing aggressive action. The City should work with the owners
rather than against them, and pursue collaborative action to reopen the Deauville as soon
as possible.
Discussion held regarding incentives the City could offer.
Jimmy L. Morales, City Manager, stated that the City does not have incentive packages for
private property owners to fix their properties. They have liens on the property, but the
best they can do is work cooperatively, try to understand the problem, gain access to the
property so the City can do inspections. The challenge in North Beach is the economic
impact on small business, but the Deauville has an elaborate redevelopment plan, but
even without that plan, they have a building that has been closed for months, it has rained,
there is molding, broken windows, and this is a repair job that is probably a two-year
endeavor to reopen. The City will try to work with the Deauville and expedite the process,
but the reopening of the building anytime soon is highly unlikely. Most importantly, they
can make sure the property is clean, that the fences are up and that the property is safe
for the outside public.
Commissioner Rosen Gonzalez apologized that Ms. Meruelo found her action aggressive,
but her only intention was to answer all the residents in surrounding condominiums and
businesses that are suffering because of the closure of the Deauville. Neighbors are very
upset at the closure of this iconic hotel, and they were trying to reach out to her without
response. Commissioner Rosen Gonzalez is happy to know that the Deauville has
retained an architect and that their intention is to renovate the hotel, which Commissioner
Rosen Gonzalez thinks would be a very successful project.
Ms. Meruelo stated that they take pride in owning the hotel, and no one is suffering
financially more than they have. They had over 300 employees, some of which have been
with the Deauville for over 20 years, and it is their priority to get back up and running.
Commissioner Arriola thanked Commissioner Rosen Gonzalez for bringing this item, as it
highlights an important issue in the City that he wanted to address. Having Miami Beach
be strategic in how they approach certain catalytic businesses, whether it is the Deauville
or other businesses and areas in the community that have an important effect on the City's
ecosystem. This highlights the issue that a major driver such as the Deauville when they
shut down it affects the quality of life of neighborhoods, neighbors, and small businesses
since the tourist that normally stay at their hotel are not there. He wants them to talk at
future meetings about what the City can be doing to be strategic in their approach in
helping both small and catalytic businesses such as the Deauville. In this case, he
suggested having a point person that the Deauville can work with for the next six months
to help expedite all the things they are facing to get them back up and running. Whether
the City has a department within the organization that can help small businesses open
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Commission Meeting
more quickly, also target certain areas and businesses in town that are important
strategically to our City and help cut the red tape. There are homeowners who still have
not made repairs from the aftermath of Hurricane Irma, and anything the City can do to
help; they are committed to do that.
R9 T DISCUSS THE FOURTH OF JULY FIREWORKS.
Commissioner Michael Gongora
ACTION: Item withdrawn by the sponsor.
10:31:58 a.m.
11:23:08 a.m.
R9 U DISCUSSION REGARDING THE CITY'S STORMWATER MASTER PLAN.
Commissioner Michael Gongora
ACTION: Discussion held. See action with R9 M. Item heard in conjunction with Items C4
M, R9 L, R9 R, and R9 W. Roy Coley to handle.
3:29:38 p.m.
R9 V DISCUSSION REGARDING ESTABLISHING A PROGRAM SIMILAR TO THE CORAL
GABLES CRIME INTELLIGENCE CENTER.
Commissioner Michael Gongora
ACTION: Discussion held. Chief Oates to handle.
Commissioner Gongora explained that he read an article about the Coral Gables Crime
Intelligence Center, and it appears to him that they are incorporating elements of that
already in the City of Miami Beach, but wonders if there is any of that technology that
would benefit Miami Beach.
Chief Oates stated that the Miami Beach Police Department has not called a Real Time
Crime Center or made the public push that Coral Gables has, but they have what the City
of Coral Gables has, with the exception that Miami Beach Police Department does not
have someone monitoring their cameras, and Coral Gables has one full-time person
monitoring the cameras for a 40-hour work week. He suggested that the City Commission
visit the Miami Beach Police center within their building, which has been set up in the last
two years. They have approximately 60 cameras around the City, between the ones they
put up and the ones available through the Transportation Department. They staff it during
every rush hour evening for traffic flow purposes; they have someone sitting there
speaking to the Police Officers directing traffic to try to move traffic along as best as they
can. They staff it during high impact weekends involving Lummus Park and Ocean Drive,
as there are real time deployment decisions to be made during those weekends about
Police Officers and occasionally can be helpful following suspicious behavior. Some of the
effects of the cameras have been noted, with the terrible event during the Gay Pride
Parade that was captured on the high-definition high-end cameras along Ocean Drive.
Those cameras are very effective for large-scale events. Chief Oates does not believe it is
particularly useful to monitor the cameras 24 hours per day, as does Coral Gables. He
added that the narcotic Police Officers use those cameras when useful to do so as well. It
is part of the wave of technology that is changing policing. In the G.O. Bond, they are
asking for additional technology, all of which will be license plate readers and cameras to
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Commission Meeting
SUPPLEMENTAL MATERIAL 1: MEMORANDUM
C6 B REPORT OF THE MAY 23, 2018 LAND USE AND DEVELOPMENT COMMITTEE
MEETING: 1. DISCUSSION REGARDING THE RECOMMENDATION OF THE
NEIGHBORHOOD/COMMUNITY AFFAIRS COMMITTEE TO ESTABLISH MORE
AGGRESSIVE REQUIREMENTS FOR EMPLOYEE TRANSPORTATION PLANS. 2.
DISCUSSION REGARDING THE DEAUVILLE BEACH RESORT. 3. DISCUSSION
RELATING TO THE ADOPTION OF ORDINANCES TO INCREASE THE MAXIMUM
HEIGHT FOR THE COMMERCIAL, MEDIUM INTENSITY DISTRICT (CD-2), AND THE
COMMERCIAL, PERFORMANCE STANDARD, GENERAL MIXED-USE DISTRICT (CPS-
2) FOR 5TH THROUGH 7TH STREETS, BETWEEN WEST AVENUE AND ALTON
ROAD; AND FOR THE PROVISION OF A PUBLIC BENEFIT. 4. DISCUSSION
PERTAINING TO ANTICIPATED INCREASES IN EXTREME HEAT AND THE IMPACT
ON BUILDING AND SITE PLAN DESIGN. 5. DISCUSSION: A. NORTH BEACH MASTER
PLAN RECOMMENDATIONS FOR THE TOWN CENTER (TC) ZONING DISTRICTS. B.
PROPOSED FLOOR AREA RATIO ("FAR") INCREASE FOR THE TOWN CENTER
ZONING DISTRICTS. 6. DISCUSSION REGARDING CONSIDERING THE ATTACHED
ORDINANCE, WHICH WILL CLARIFY WHO MAY SUBMIT AN APPLICATION FOR AN
AMENDMENT TO THE COMPREHENSIVE PLAN/FUTURE LAND USE ELEMENT OR
MAP, AND/OR THE CITY'S LAND DEVELOPMENT REGULATIONS. 7. DISCUSSION TO
EXPLORE POTENTIAL PUBLIC BENEFITS TIED WITH MAJOR ZONING CHANGES. 8.
DISCUSSION TO REVIEW THE ROLE OF LAND USE BOARDS IN NEIGHBORHOOD
IMPROVEMENT PROJECTS. 9. DISCUSSION REGARDING ESTABLISHING A
HISTORIC PRESERVATION FUND.
ACTION:
1. RECOMMENDATION OF THE NCAC TO ESTABLISH MORE AGGRESSIVE
REQUIREMENTS FOR EMPLOYEE TRANSPORTATION PLANS.
MOTION: Deferred to June 13, 2018.
2. DISCUSSION REGARDING THE DEAUVILLE BEACH RESORT.
MOTION: KRG/MG (3-0)
Refer the item to the full the City Commission (R9 Item with a time certain) for
discussion and to consider all available and aggressive action to compel
compliance with all applicable regulations by the Deauville.
3. ADOPTION OF ORDINANCES TO INCREASE THE MAXIMUM HEIGHT FOR
COMMERCIAL, MEDIUM INTENSITY DISTRICT (CD-2), & COMMERCIAL,
PERFORMANCE STANDARD, GENERAL MIXED-USE DISTRICT (CPS-2).
MOTION: By Acclamation: Continue the Item to June 13, 2018 LUDC Meeting, with
the following direction to staff:
1. Continue dialogue with Gateway Alliance and Crescent Heights on
developing consensus for a proposed development on the 500-700 blocks.
2. Further analyze the proposal by Crescent Heights
3. Study the potential for purchasing the 600 block, including price estimations.
4. ANTICIPATED INCREASES IN EXTREME HEAT & IMPACT ON BUILDING AND
SITE PLAN DESIGN.
MOTION: Deferred to June 13, 2018.
Page 17 of 111
11/16/2020 Coversheet
Commission Committee Reports-C6 B
MIAMI BEACH
COMMISSION MEMORANDUM
TO: Honorable Mayor and Members of the City Commission
FROM: Jimmy L.Morales,City Manager
DATE: June 6, 2018
SUBJECT: REPORT OF THE MAY 23, 2018 LAND USE AND DEVELOPMENT COMMITTEE MEETING: 1. DISCUSSION
REGARDING THE RECOMMENDATION OF THE NEIGHBORHOOD/COMMUNITY AFFAIRS COMMITTEE TO
ESTABLISH MORE AGGRESSIVE REQUIREMENTS FOR EMPLOYEE TRANSPORTATION PLANS. 2. DISCUSSION
REGARDING THE DEAUVILLE BEACH RESORT. 3. DISCUSSION RELATING TO THE ADOPTION OF
ORDINANCES TO INCREASE THE MAXIMUM HEIGHT FOR THE COMMERCIAL, MEDIUM INTENSITY DISTRICT
(CD-2), AND THE COMMERCIAL, PERFORMANCE STANDARD, GENERAL MIXED USE DISTRICT (CPS-2) FOR
5TH THROUGH 7TH STREETS, BETWEEN WEST AVENUE AND ALTON ROAD; AND FOR THE PROVISION OF A
PUBLIC BENEFIT. 4. DISCUSSION PERTAINING TO ANTICIPATED INCREASES IN EXTREME HEAT AND THE
IMPACT ON BUILDING AND SITE PLAN DESIGN. 5. DISCUSSION: A. NORTH BEACH MASTER PLAN
RECOMMENDATIONS FOR THE TOWN CENTER (TC) ZONING DISTRICTS. B. PROPOSED FLOOR AREA RATIO
("FAR") INCREASE FOR THE TOWN CENTER ZONING DISTRICTS. 6. DISCUSSION REGARDING CONSIDERING
THE ATTACHED ORDINANCE, WHICH WILL CLARIFY WHO MAY SUBMIT AN APPLICATION FOR AN AMENDMENT
TO THE COMPREHENSIVE PLAN/FUTURE LAND USE ELEMENT OR MAP, AND/OR THE CITY'S LAND
DEVELOPMENT REGULATIONS. 7. DISCUSSION TO EXPLORE POTENTIAL PUBLIC BENEFITS TIED WITH
MAJOR ZONING CHANGES. 8. DISCUSSION TO REVIEW THE ROLE OF LAND USE BOARDS IN
NEIGHBORHOOD IMPROVEMENT PROJECTS. 9. DISCUSSION REGARDING ESTABLISHING A HISTORIC
PRESERVATION FUND.
Legislative Tracking
Planning
ATTACHMENTS:
Description
❑ Memorandum
https://miamibeach.novusagenda.com/agendapublic/CoverSheet.aspx?ItemID=8303&MeetinglD=434 1/1