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C7E-Approve Settlement For City Liens On Property At 1545 Drexel AvenueCOMMISSION ITEM SUMMARY Condensed Title: A Resolution of the Mayor and City Commission of the City of Miami Beach, Florida, approving the settlement in the amount of $15,000.00 for city liens on property owned by Sunset Apartments at 1545 Drexel Avenue, Miami Beach, Florida, and authorizing the Interim City Manager to take such action and execute any and all necessary documents to complete such lien release and settlement. Ke Intended Outcome Su orted: Increase resident's satisfaction with level of Building Enforcement. (Surveys, Environmental Scan, etc.): 61% of residents are satisfied with fairness and consistenc of enforcement of codes and ordinances. Issue: I Shall the Mayor and City Commission approve the Resolution approving settlement? Item Summary/Recommendation: Sunset Apartments, LLC is the owner 1545 Drexel Avenue, Miami Beach, Florida. In its governmental and regulatory capacity, the City of Miami Beach recorded three (3) liens, in the public records of Miami-Dade County, Florida. These liens relate back to violations for failing to comply with the 40 year recertification of the building and property maintenance violations. The property owner completed substantially all of the repairs prior to the compliance date. However, in order to close out the violation, minor repairs were required to a first floor lighting fixture, to the electrical box to the washing machine and replacement of the exit sign on the second floor. In addition, two minor violations were issued for an illegal banner and for titles installed on the first floor patio area without a permit. Both Mitigation Orders are also the subject of Appeals. The property owner and representatives from the Finance Department have met to discuss a global settlement of the Appeals and of all outstanding liens on the Property. The parties have reached an agreement for a global settlement of $15,000, subject to Commission approval. Advisory Board Recommendation: Financial Information: Source of I I Amount I Account Funds: I J I L_---L--------~--------------------------------------1 Financial Impact Summary: City Clerk's Office legislative Tracking: Sign-Offs: Assistant City Manager GPE POW I JS MIAMI BEACH 201 KGB City Manager AGENDA ITEM --:::C~7=E--:-­ DATE 7-/f-/L. MIAMI BEACH City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov TO: FROM: DATE: SUBJECT: COMMISSION MEMORANDUM Kathie G. Brooks, Interim City Manager ~ / · Mayor Matti Herrera Bower and Members of the City?Lo mission July 18,2012 / ·-/// A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING THE SETTLEMENT IN THE AMOUNT OF $15,000.00 FOR CITY LIENS ON PROPERTY OWNED BY SUNSET APARTMENTS, LLC, LOCATED AT 1545 DREXEL AVENUE, MIAMI BEACH, FLORIDA, IN THE ORIGINAL AMOUNT OF $358,708.15, AND FURTHER AUTHORIZING THE INTERIM CITY MANAGER TO TAKE SUCH ACTION AND EXECUTE ANY AND All NECESSARY DOCUMENTS TO COMPLETE SUCH LIEN RELEASE AND SETTLEMENT. ADMINISTRATION RECOMMENDATION Adopt the Resolution as described. ANALYSIS Sunset Apartments, LLC ("Sunset") is the owner 1545 Drexel Avenue, Miami Beach, Florida, (the "Property"). In its governmental and regulatory capacity, the City of Miami Beach recorded three (3) liens, in the public records of Miami-Dade County, Florida. These liens relate back to violations for failing to comply with the 40 year recertification of the building and property maintenance violations. In connection with the forty (40) year recertification violation, the property owner completed substantially all of the repairs prior to the compliance date. However, in order to close out the violation, minor repairs were required to a first floor lighting fixture, to the electrical box to the washing machine and replacement of the exit sign on the second floor. When these items were corrected, the property owner requested mitigation. At the hearing on the Petition for Mitigation, the Special Master reduced the fines. However, a review of the audio reflects that the hearing ended without a definitive determination as to the amount that the Special Master reduced the fines to. The Special Master instructed his Clerk to calculate the fine in accordance with specific dates. The discussion continued and it appears that a dollar amount was then announced. Unfortunately, the mitigation amount in the Order does not reflect the actual findings of the Special Master and the City and the property owner agree that it is in their best interest to resolve this matter without the time and expense of costly and lengthy litigation. The two (2) property maintenance violations were minor in nature. These violations were issued for an illegal banner and for titles installed on the first floor patio area without a permit. The outstanding 202 fines in connection with these two (2) cases were mitigated by the Special Master from $165,290.25 to $35,000.00. Both Mitigation Orders are also the subject of Appeals. The property owner and representatives from the Finance Department have met to discuss a global settlement of the Appeals and of all outstanding liens on the Property. The parties have reached an agreement, subject to Commission approval. There are no open violations on the Property at this time. In light of the foregoing, it is recommended that these liens, while significant in total, be settled in the amount of $15,000.00. ADIMINISTRA TION RECOMMEDATION Adopt the Resolution authorizing the City Manager to execute any and all documents necessary to complete such lien release and settlement. 2 203 RESOLUTION TO BE SUBMITTED 204