C7F-Approve Settlement For City Liens Property Located At 418-422 And 426 MeridiCOMMISSION 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 $45,000 for City liens on property owned by Plaza Hotel, LLC, located at 418-422 Meridian
Avenue and 426 Meridian Avenue, Miami Beach, Florida, in the original amount of $338,522.46, and further
authorizing the 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:
Shall the Mayor and City Commission approve the Resolution?
mendation:
LeaseFiorida Street, LLC ("LeaseFiorida') owns and holds the first Mortgage on the following properties (the
'Properties") located in the City of Miami Beach, Florida: 518-522 Meridian Avenue, Miami Beach, Florida; and 526
Meridian Avenue, Miami Beach, Florida which are in violation of numerous City of Miami Beach Code provisions
and for which the City recorded liens for noncompliance. The violations were issued in connection with the 40 year
building recertification, interior renovations without a permit, water intrusion in several units and for the closure of
the 526 Meridian Avenue property due an unsafe structure resulting from improper shoring. This building was shut
down and is currently unoccupied.
In its governmental and regulatory capacity, the City of Miami Beach recorded liens in the public records of Miami-
Dade County, Florida (the "Liens"). The fines are $338,522.46.
In reviewing the history and nature of the violations, the amount of the liens accumulated exceed the appropriate
penalty. Therefore, in order to facilitate the rehabilitation of the Properties by LeaseFiorida, the City has agreed to
stop the fines from accruing in connection with the pending Special Master Cases, upon receipt of $45,000
mitigation payment. This amount represents 13.3% of the accrued fines and is consistent with prior reductions
approved by the City Commission and is more in keeping with the nature of the violations. Additionally,
Lease Florida will pay the City 1 00% of the moneys owed for utilities, resort taxes and City Bills incurred by the prior
owner, within 15 days from the date of Commission Approval. As of June 6, 2012, this amount was $32,154.54.
LeaseFiorida further agrees that within six (6) months from obtaining title to the Properties, either by the issuance of
a Certificate of Title or a Deed in Lieu of Foreclosure, to cure the violations. In the event that the violations are not
cured, the cases will be brought back to the Special Master, and depending upon the status of the repairs, fines
may resume.
In light of the foregoing, it is recommended that the City enter into an agreement with LeaseFiorida as outlined
above.
The Administration recommends adopting the Resolution authorizing the City Manager to execute any and all
documents necessa to com lete settlement and release of Liens.
Financial Information:
Source of
Funds:
OBPI
Financial Impact Summary:
Clerk's Office Le islative Trackin
Amount
First Assistant City Attorney Assistant City .Manager
SR JGG
MIAMI BEACH 200
Account Approved
anager
KGB
AGENDA ITEM --=-~7-+F __
DATE ,w /d~ 12_
~ MIAMI BEACH
City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachA.gov
COMMISSION MEMORANDUM
TO: Mayor Matti Herrera Bower and Members of the City Commission
FROM: Kathie G. Brooks, Interim City Manager
DATE: September 12, 2012
SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, APPROVING THE SETTLEMENT IN THE
AMOUNT OF $45,000.00 FOR CITY LIENS ON PROPERTY OWNED BY
PLAZA HOTEL, LLC, LOCATED AT 418-422 MERIDIAN AVENUE AND
426 MERIDIAN AVENUE, MIAMI BEACH, FLORIDA, IN THE ORIGINAL
AMOUNT OF $338,522.46, AND FURTHER AUTHORIZING THE 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
LeaseFiorida 51h Street, LLC ("LeaseFiorida') owns and holds the first Mortgage on the following
properties (the 'Properties") located in the City of Miami Beach, Florida:
518-522 Meridian Avenue, Miami Beach, Florida; and
526 Meridian Avenue, Miami Beach, Florida
which are in violation of numerous City of Miami Beach Code provisions and for which the City
recorded liens for noncompliance. The violations were issued in connection with the 40 year
building recertification, interior renovations without a permit, water intrusion in several units and for
the closure of the 526 Meridian Avenue property due an unsafe structure resulting from improper
shoring. This building was shut down and is currently unoccupied.
In its governmental and regulatory capacity, the City of Miami Beach recorded liens in the public
records of Miami-Dade County, Florida (the "Liens"). The fines are $338,522.46.
In reviewing the history and nature of the violations, the amount of the liens accumulated exceed the
appropriate penalty. Therefore, in order to facilitate the rehabilitation of the Properties by
LeaseFiorida, the City has agreed to stop the fines from accruing in connection with the pending
Special Master Cases, upon receipt of $45,000 mitigation payment. This amount represents 13.3%
of the accrued fines and is consistent with prior reductions approved by the City Commission and is
more in keeping with the nature of the violations. Additionally, Lease Florida will pay the City 100% of
the moneys owed for utilities, resort taxes and City Bills incurred by the prior owner, within 15 days
from the date of Commission Approval. As of June 6, 2012, this amount was $32,154.54.
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Lease Florida further agrees that within six (6) months from obtaining title to the Properties, either by
the issuance of a Certificate of Title or a Deed in Lieu of Foreclosure, to cure the violations. In the
event that the violations are not cured, the cases will be brought back to the Special Master, and
depending upon the status of the repairs, fines may resume.
In light of the foregoing, it is recommended that the City enter into an agreement with Lease Florida
as outlined above.
ADMINISTRATION RECOMMENDATION
Adopt the Resolution authorizing the City Manager to execute any and all documents necessary to
complete settlement and release of Liens.
T:\AGENDA\2012\9-12-12\Piaza Hotel commission memorandum.doc
2
202
RESOLUTION NO.-------
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF
THE CITY OF MIAMI BEACH, FLORIDA, APPROVING THE
SETTLEMENT IN THE AMOUNT OF $45,000.00 FOR CITY
LIENS ON PROPERTY OWNED BY PLAZA HOTEL, LLC,
LOCATED AT 418-422 MERIDIAN AVENUE AND 426 MERIDIAN
AVENUE, MIAMI BEACH, FLORIDA, IN THE ORIGINAL
AMOUNT OF $338,522.46, AND FURTHER AUTHORIZING THE
CITY MANAGER TO TAKE SUCH ACTION AND EXECUTE ANY
AND ALL NECESSARY DOCUMENTS TO COMPLETE SUCH
LIEN RELEASE AND SETTLEMENT.
WHEREAS, the properties located at 418-422 Meridian Avenue and 426
Meridian, Miami Beach, Florida (the "Properties") are currently owned by Plaza
Hotel, LLC ("Plaza Hotel"); and
WHEREAS, the Properties are accumulating daily fines for building and
code compliance violations; and
WHEREAS, fines have accumulated in the amount of $338,522.46; and
WHEREAS, the Properties are not in compliance with the City Code; and
WHEREAS, a Final Judgment of Foreclosure was entered on July 11,
2012 in favor of LeaseFiorida 5th St. LLC ("LeaseFiorida") in the case styled:
LeaseF/orida 5th St, LLC v. Plaza Hotel, LLC, eta/., Case No. 12-18755 CA 59, in
the Circuit Court of the 11th Judicial Circuit in and for Miami-Dade County,
Florida; and
WHEREAS, LeaseFiorida intends to obtain title to the Properties either by
being the successful bidder at the foreclosure sale or by way of a Deed in Lieu of
Foreclosure from Plaza Hotel; and
WHEREAS, in review of the history and nature of the violations, the
amount of the liens accumulated exceed the appropriate penalty; and
WHEREAS, the payment of $338,522.46 would be disproportionate to the
nature of the violations; and
WHEREAS, in order to facilitate the rehabilitation of the Properties by
LeaseFiorida and afford LeaseFiorida the opportunity to cure the violations, the
issue of the fines and recorded liens needs to be resolved; and
203
WHEREAS, in light of these circumstances, the Administration
recommends that the City Commission approve a $45,000.00 settlement amount
for these Properties as a penalty more in keeping with the nature of the violation;
and
WHEREAS, LeaseFiorida would still be responsible for bringing the
underlying violations into compliance with all applicable City codes; and
WHEREAS, until the violations are brought into compliance, LeaseFiorida
would still be subject to the Special Master process.
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 approve the settlement in the amount of
$45,000.00 for the City liens on property owned by Plaza Hotel, LLC. 418-422
Meridian Avenue and 426 Meridian, Miami Beach, Florida, Miami Beach, Florida,
in the original amount of $338,522.46, and further authorize the City Manager to
take such action and execute any and all necessary documents to complete such
lien release and settlement.
PASSED and ADOPTED this __ day of ______ , 2012.
ATTEST:
CITY CLERK
204
MAYOR
APPROVED AS fO
fOR.'\-\ 81 lANGUAGE
& FO E><ECUTION
AGREEMENT
THIS AGREEMENT (the "Agreement") is made and entered into as of the_
day of September, 2012 ("Effective Date") between LeaseFlorida 51h Street, LLC
("LeaseFiorida") and the City of Miami Beach, Florida (the "City".)
RECITALS
A LeaseFiorida owns and holds the first Mortgage on the following
properties located in the City of Miami Beach, Florida:
518-522 Meridian Avenue, Miami Beach, Florida and 526 Meridian Avenue,
Miami Beach, Florida (the "Properties")
which are in violation of numerous City of Miami Beach Code provisions and for which
the City recorded liens for noncompliance, all of which are listed in Schedule A attached
hereto ("Violations and Liens"). Additionally, there are monies owed to the City for a
delinquent water account (account number 52143-00) ("Utility Bill"), resort taxes
(account number 978211) ("Resort Taxes") and an unpaid City Bill (CB00020749.) ("City
Bill"), Utility Bill account number 520447-00, Plate 755 and City Bills AR #017253 all of
which are listed in Schedule "1" attached hereto. The term Monies Owed shall mean all
monies owed for the Utility Bill, Resort Taxes and City Bill plus any additional interest,
penalties and/or other obligations. Any outstanding Utility Bill, Resort Taxes, City Bill or
other amount due not reflected on the Verified Lien Statement dated June 6, 2012, shall
be the sole responsibility of the City.
B. In its governmental and regulatory capacity, the City is requiring
LeaseFiorida to comply with Code of the City of Miami Beach and make the necessary
repairs to the Properties to comply with the Violations and Liens and pay a the Monies
Owed in full satisfaction thereof to the City upon execution of this Agreement.
C. In order to facilitate the rehabilitation of the Properties by LeaseFlorida,
the City has agreed to stop the fines accruing in connection with the pending Special
Master Cases, set forth in Schedule "A" and release all liens associated those cases set
forth in Schedule "A," upon receipt of Forty-Five Thousand and 00/100 ($45,000.00)
Dollars (the "Mitigation Payment".)
D. The Mitigation Payment and the Monies Owed shall be paid within fifteen
(15) days from authorization and approval of this Agreement by the City's commission,
as evidenced by the resolution to be delivered to LeaseFiorida .. LeaseFiorida shall
cause a check to be issued to each department of the City for each individual charge as
set forth in Schedule "A". Upon receipt of these payments, the City shall deliver the
original Release of Liens with Continuing Violation ("Release of Lien") and/or
satisfaction for Monies Owed to WNF Law, P.L. ("WNF"). The Release of Lien shall be
in writing and recordable form. WNF shall cause the Release of Lien to be recorded
{A0040729.DOG 2}1
205
among the Public Records of Miami-Dade County, Florida and shall promptly deliver to
the City a true certified copy. All recording fees and costs shall be the sole
responsibility of LeaseFiorida.
NOW, THEREFORE, in consideration of the premises and for other good and
valuable consideration, the receipt and sufficiency of which hereby acknowledged, the
Parties hereby agree as follows:
1. The City and LeaseFiorida agree that the foregoing recitals are true and
correct and are incorporated herein as if repeated at length.
2. The City and LeaseFiorida have agreed that the Mitigation Payment is
required for releasing the Properties from the City's Code Enforcement, and Building
Department liens and the Violations and Liens.
3. The City and LeaseFiorida agree that the Mitigation Payment shall be
paid to the City as consideration for issuing the Releases of Lien.
4. LeaseFiorida agrees within six (6) months from the date earlier of either
a Deed in Lieu recorded with the Clerk of the Court in favor of LeaseFiorida, its
successor and/or assign or the issuance of a Certificate of Title in favor of LeaseFiorida
its successor and/or assign, that it will either have cured the violations set forth in
Schedule "A" or shall present to the City a written progress report of the repairs and
request an extension of time to complete the repairs, which said request shall not be
unreasonably withheld (the "Milestone").
5. In the event that LeaseFiorida misses the Milestone set forth herein, the
City will notify the Clerk of the Special Master of LeaseFiorida's non compliance with
this Agreement, and at a duly noticed hearing will advise of LeaseFiorida's non-
compliance with the terms of this Agreement..
6. In the event that LeaseFiorida completes the required repairs by the
Milestone set forth in Paragraph 4 above, the Mitigation Payment shall satisfy any and
all payments due to the City for these Properties and no additional payment(s) shall be
due in connection with the violations set forth in Schedule "A." In the event that
LeaseFiorida has requested additional time to complete the repairs pursuant to
Paragraph 4 above, no addition fees, penalties or charges shall accrue. Upon
completion of the requested repairs, LeaseFiorida and the Properties shall be fully
released from all Violations and Liens and all other monies and obligations owed with
respect to the Properties.
7. The Parties agree to use their best efforts in seeing that the Milestone in
Paragraph 4 above moves forward, including but not limited to the approval times
required by the City. The City recognizes and agrees that in order for LeaseFiorida to
{A0040729.DOC 2 }2
206
obtain compliance and meet the Milestone in Paragraph 4, there might be require action
by or on behalf of the City and the City agrees to use its best efforts in seeing that this
date is met. In the event any building permit or other approval requiring City approval is
delayed more than two (2) business days, the Milestone shall automatically be extended
by that time period of delay.
8. Notices. All notices required or permitted to be given hereunder
shall be in writing and sent by overnight delivery service (such as Federal Express), in
which case notice shall be deemed given on the day after the date sent, or by personal
delivery, in which case notice shall be deemed given on the date received, or by
certified mail, in which case notice shall be deemed given three (3) days after the date
sent, or by fax (with copy by overnight delivery service), in which case notice shall be
deemed given on the date sent, to the appropriate address indicated below or at such
other place or places as either Party may, from time to time, respectively, designate in a
written notice given to the other in the manner described above.
If to LeaseFiorida:
If to City:
Steve L. Waserstein, Esq.
201 S. Biscayne Blvd., Suite 3400
Miami, FL 33131
Telephone: 305 760-8502
Facsimile: 305 749-8959
LeaseFlorida 51h Street, LLC
6001 NW 153 Street, Suite 110
Miami Lakes, Florida 33014
Telephone: (305) 827-8373
Facsimile:
Office of the City Attorney
City of Miami Beach
1700 Convention Center Drive,41h Floor
Miami Beach, Florida 33139
Attn: Jose Smith, City Attorney
Telephone: 305-673-7470
Facsimile: 305-673-7002
Kathie G. Brooks, Interim City Manager
City of Miami Beach
1700 Convention Center Drive
Miami Beach, Florida 33139
Telephone: 305-673-7010
Facsimile: 305-673-7782
Each Party shall have the right to change the address or name of the person to
whom such notices are to be delivered by notice to the other party.
207
9. The terms and conditions of this Agreement shall inure to the benefit of and
be binding upon the permitted successors and assigns of each of the parties hereto.
10. This Agreement may be modified only by a written amendment signed by all
parties hereto.
11. This Agreement shall be construed and enforced according to the laws of the
State of Florida.
12. This Agreement may be executed in any number of counterparts, each of
which shall be deemed an original, but all of which together shall constitute one and the
same instrument.
13. LeaseFiorida hereby acknowledges that it has been represented by legal
counsel of its choice, namely: Steve L. Waserstein, Esq., 201 S. Biscayne Blvd., Suite
3400, Miami, Florida 33131.
14. Each Party represents and acknowledges that this Agreement has been
entered into freely and voluntarily and that there has been no undue influence or duress
brought by either Party, and that each Party is aware of and understands the contents
and implications hereof and acknowledges the same.
15. All understandings and agreements heretofore made between the Parties
are merged in this Agreement. There are no oral promises, conditions, representations,
understandings, interpretations or terms of any kind as conditions or inducements to the
execution of this Agreement in effect between the parties. No change or modification of
this Agreement shall be valid unless the same is in writing and signed by the parties
hereto. No waiver of any of the provisions of this Agreement shall be valid unless the
same is in writing and is signed by the party against which it is sought to be enforced
and shall be valid only for the particular time and circumstances for which it is obtained.
16. In connection with any litigation arising out of this Agreement, the prevailing
Party, including its successors and/or assigns as their interests may appear, in such
litigation shall be entitled to recover from the defeated Party, including its successors
and/or assigns as their interests may appear, all costs incurred, including reasonable
attorneys' fees, and all costs and attorneys' fees on appeal.
IN WITNESS WHEREOF, this Agreement has been signed on behalf of the
parties hereto as of the day and year first above written.
LeaseFiorida 5th Street, LLC, by Alan Waserstein
as, Manager of LeaseFiorida Manager, LLC
(A004072\LDOC 2 }4
208
Print name: ------------------------Date Executed: ________________ , 2012
Approved
Kathie G. Brooks, Interim City Manager
Date Executed: 2012. -----------------
{A0040729.DOC 2
209
Schedule "A"
Property Address located at:
418-422 Meridian Avenue and 426 Meridian Avenue
L Special Master Case# JB11 000551 (Book 27771, Pg 1535)
2, Special Master Case# JC11000432 (Book 27810, Pg 1776)
3. Special Master Case# JB10000458 (Book 27870, Pg 1615)
4, Special Master Case# JB11 000550 (Book 27771, Pg 1534)
5. Special Master Case# JC09000562 (Book 27588, Pg 1044)
6. Special Master Case# JC11000041 (Book 27642, Pg 1516)
7. Special Master Case# JC11000168 (Book 27717, Pg 3440)
8. Special Master Case# JC 11000041 (Book 27691, Pg 1157)
{A0040729DOC 2 }6
210
Schedule 1
1. Water account (account number 52143-00);
2. Resort taxes (account number 978211
3. City Bill (CB00020749.)
4. Utility Bill account number 520447-00, Plate 755
5. City Bills AR #017253
{A0040729.DOC 2 }7
211
LEASEFLORIDA 5th ST., LLC,
Plaintiff,
vs.
PLAZA HOTEL, LLC, et al.,
Defendants.
f
IN THE CIRCUIT COURT OF THE i ITH
JUDICIAL CiRCUIT IN AND FOR MIAMI-
DADE COUNTY, FLORIDA
GENERAL JURISDICTION DIVISION
CASE NO. 12-18755 CA 59
NOTICE OF FlUNG VERIFIED LIEN STATEMENT
Defendant, CITY MIAMI , a Florida municipal corporation, by and
through its undersigned counsel hereby files with the Court a Verified Lien Statement in
support of affirmative defenses.
·\/\cl.tj I CERTIFY that a true and correct copy of the foregoing was mailed this
_cA.__·.,.. day of June, 20·12 to:
Robert P. Frankel,
Robert P. Frankel & Associates, P.A.
25 West Flagler Street
900 City National Bank BuHding
Miami, 33130
Jay Phillip Parker, Esq.
c/o Clear Title Group
1691 Michigan Avenue, Suite 320
Miami, 33139
Plaza Hotel, LLC
Time LLC
Ocean Drive, Inc.
c/o Krzysztof Karbowksi and
Jakub Kosiba
1001 N. Milwaukee Ave., #400
Chicago, IL 60642
Respectfully submitted,
JOSE SMITH, CiTY ATTORNEY
CITY OF MIAMi BEACH
1700 Convention Center Drive, 4th Floor
Miami Beach, Florida 33139
Tel: (305) 673-7470 I Fax: (305) 673~7002
E-mail: steverothsteln@mlamibeachfl.gov
By:_~=
teven H. Rothstein
First Assistant City Attorney
Florida Bar No. 727547
OFFICE OF TH!: CITY AITORNEY-1700 CONVENTION C!:NT!lR DR!Vii -MIAMI !iEACH, F!.O!llDA 33139
212
CITY OF MIAMI BEACh
i?OO CONVENTION CENTER DRIVE, MIAMI BEACH FL 33139-1824
June 6, 2012
Proporty Addro5S: 418-422 MERIDIAN AVE AND 426 MERIDIAN AVE
FOLIO: 02·4203·009-5040/02-4203-009-3070102-4203-00B-5030
ENTIRE PROPERTY
SUBJeCT: LEASEPLORIDA 5TH ST., LLC v. PLA7..A HOTel, LLC, ET Al, CASE NO. 12-18756 CA 50
STATEMENT#
PLATE#
THIS IS TO CERTIFY THAT THE FOLLOWING MUNICIPAL UENS OR t\SSESSMENTS ARE DUE AND PAYABLE .AGAINST:
OCEAN BEACH ADDN NO 3 P8 2-Si LOT 9 BLK 1>0 LOT SIZE 50.000 X 140 COC 24427·2145 042000 8
OCEAN BEACH AODN NO 3 P8 2-Si lOTS 9 & 10 BLK 50 LOTS SIZE 14000 SQ FT
Charge Typo
1) UTiLITY BILL:
a)WaHH'~ Storm
21 DEMOLITION &
SOARDiNG-UP LIENS
4) BILLS
7) PERMITS, CERTifiCATE OF
USE, LICENSES
G) OiliER
TOTAL M~OUNT DUE
ADDI'fiONAL BilLS M.'\Y BE PilE FHDM DATE HEADING TO OAT!: OF PINAL
Toisphooo (305) 673·7420
Facs!mila (1U6) 395·34$4
244
761
KD
Of 10%. RECORDED LIENS Blil\!1. INTEI<EBT AT i2% PERANNl!M, UNPAID !\NiJIOR DELINQUGNT CH/IRG!lS iOOeTHl:R WITH ALL PENA\.TiESIM003iW
THeREON, SHALL llEMAiN AND CONSTITUTE SPECIAL ASSESSMf.NT LIENS AO.'IINBT THE RfU\L PROPERTY.
NtlTICF.· SHORT TERM REN1'Ats OF LESS THAN SiX MONTHS AND ONIO DAY i\flE NOT PERMIT'WD iN SINGLE FAMILY liOMES.AND ZONING DISTRICTS TriAT DO NOT
PEI'\MIT HOTEL l!SES. SEe SECTiONS 14MGU(Il){6) AND 14l·1111, MIAMI !lEACII GITY CODlL
c~rtlfy thBt this Litn St§:lbmonllt~ a trwc and fiOCU!'n{o t{lflactlnn {us of Um dai;) at H1ll.' w n Stat~ · .. -u!1t} of uw~o U~!lfi. ilfld/or
of thrs Clty of M\.mnl BtHiGi1 flnuncc-D0[Hlrtmtmt} dwv ond owing H;o Clty nf M!;,rnl Bon pmp:rty,
PAmiCIA U. WALI<EH, CHIEF FiNANCIAL OFFICER
SUBSCRIBED AND SWORN ro bb!
DADE COUNTY
213