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Home My WebLink About2005-25790 Reso RESOLUTION NO. 2005-25790 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING THE SETTLEMENT OF CITY LIENS ON REAL PROPERTY LOCATED AT 834-36 1ST STREET, MIAMI BEACH, FLORIDA, RESULTING FROM CITY UTILITY BILLS AND FROM SPECIAL MASTER CASE NUMBERS 92-301/ JC00001111/JC990815 AND PROVIDING THAT THE LIEN IN THE AMOUNT OF $3,363,433.52 BE SETTLED FOR THE AMOUNT OF $290,000.00. WHEREAS, the property at 834-36 1 ST Street, Miami Beach, Florida, has accumulated fines that date back to as early as 1992 as a result of City utility bills and Special Master Case Numbers 92-301/JC00001111/JC990815 in the amount of $3,363,433.52; and, WHEREAS, with the exception of the outstanding utility bills, most of the liens are Code related and have to do with property maintenance violations including weeds, graffiti, building exterior maintenance and improper licensing; and, WHEREAS, the lien amount has increased to such a large sum given the very long period of time that fines have run on a daily basis and because of multiple fines being assessed against the property; and, WHEREAS, since the violations for which the property has been cited are not life threatening, and the property has been somewhat of an eye sore and a nuisance in the neighborhood, the $290,000.00 settlement amount is recommended as a fair penalty given the nature and duration of the violations; and, NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND THE CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that a settlement for the outstanding City liens on real property located at 834-36 1st Street, Miami Beach, Florida, in the amount of $3,363,433.52 resulted from certain City utility bills and from Special Master Case Numbers 92- 301/JC00001111/JC990815 is hereby approved upon payment of the sum of $290,000.00 to the City of Miami Beach; and further that the City Manager shall be authorized to execute any and all necessary documents to complete such lien releases and settlement subject to the approval of the Special Master. PASSED and ADOPTED this 12th day f ,2005. ATTESTr faAi~ ~rn APPROVED AS TO FORM & LANGUAGE & ,FOR EXECUTION . F :\cmgr\$ALL \BOB\lienmitigation834-36 Iststreetreso,doc ~.. -t!':~*1'6~ ~ Date CITY OF MIAMI BEACH COMMISSION ITEM SUMMARY m Condensed Title: A Resolution approving the settlement of City liens on real property located at 834-836 1 st Street, Miami Beach, Florida, resulting from City utility bills and from Special Master Case Numbers 92- 301/JC00001111/JC990815 and providing that the lien in the amount of $3,363,433.52 be settled for the amount of $290,000.00. Issue: Shall the Commission approve this lien settlement? Item Summary/Recommendation: The property currently has outstanding liens in the amount of $3,363,433.52 that date back to as early as 1992. With the exception of some outstanding utility bills, most of the liens are Code related and have to do with property maintenance violations including weeds, graffiti, building exterior maintenance and improper licensing. The lien amount has increased to such a large sum given the very long period of time that fines have run on a daily basis and because multiple fines have been assessed against the property. While the individual nature of each of the different violations for which the property has been cited are not life threatening, the property has been somewhat of an eye sore and a nuisance in the neighborhood which in recent years has redeveloped and changed significantly in character. The $290,000.00 settlement amount is recommended as a fair penalty given the nature and duration of the violations in the affected area. Advisory Board Recommendation: I Financial Information: Finance Dept. Source of Funds: D Ci Clerk's Office Le islative Trackin Robert C. Middaugh AGENDA ITEM DATE fl7F /-/;l-tlS-- CITY OF MIAMI BEACH CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139 www.miamibeachfl,gov COMMISSION MEMORANDUM From: Mayor David Dermer and Members of the City Commission Jorge M. Gonzalez \ ~ City Manager OIV lJ Date: January 12, 2005 To: Subject: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING THE SETTLEMENT OF CITY LIENS ON REAL PROPERTY LOCATED AT 834-836 1st STREET, MIAMI BEACH, FLORIDA, RESULTING FROM CITY UTILITY BILLS AND FROM SPECIAL MASTER CASE NUMBERS 92-301/JC00001111/JC990815 AND PROVIDING THAT THE LIEN IN THE AMOUNT OF $3,363,433.52 BE SETTLED FOR THE AMOUNT OF $290,000.00. ADMINISTRATION RECOMMENDATION: Adopt the Resolution. ANALYSIS The owner of the property located at 834-836 1 sl Street has requested a settlement of outstanding liens on the property in anticipation of a sale of the property. The property currently has outstanding liens in the amount of $3,363,433.52 that date back to as early as 1992. With the exception of some outstanding utility bills, most ofthe liens are Code related and have to do with property maintenance violations including weeds, graffiti, building exterior maintenance and improper licensing. The lien amount has increased to such a large sum given the very long period of time that fines have run on a daily basis and because multiple fines have been assessed against the property. The property is a one story small warehouse operation that has been used by a variety of tenants over the period of time for which fines have been assessed. The owner is not a local property owner and has used a succession of agents on the owner's behalf to manage or maintain the property. A sale to local investors is pending on the property in the amount of $2.8 million. The buyers plan to alter the use and will undergo the required development review process. The end use has yet to be finally determined by the potential buyers. The property has been held by the current owner since 1980 and was originally purchased for $185,000.00. During the time the property has been held by the current owner it has been refinanced. In discussing the amount for a recommended lien settlement, the City has maintained that it will recoup its outstanding hard costs and would then be amenable to a settlement of significant proportion on the viable Code liens. The attached lien statement identifies the various liens that are associated with this property in the total amount of $3,363,433.52. In the lien statement, the City will recommend full recovery of items numbered 1 through 6 which represents outstanding City costs or bills in the amount of $10,302.10. In discussing the remaining three liens, the City and the property owner are in agreement that the lien in the amount of $1,027,999.17 would be settled by paying the appropriate occupational license fees due and the triple fee penalty that is associated with occupational licenses. The settlement amount for the failure to secure occupational licenses lien would be $10,700.00. The remaining two Code liens would be consolidated into one and the City would then settle the older of the two, since an argument could be made that both citations could have been addressed as one at the time of original issuance. This would drop the $1,772,400.76 lien and the City would then recommend settlement of the remaining $552,731.49 lien at 50%. When the sum of the above item is rounded to account for interest accumulated over the months of negotiation, the total recommended settlement amount is $290,000.00. While the individual nature of each of the different violations for which the property has been cited are not life threatening, the property has been somewhat of an eye sore and a nuisance in the neighborhood which in recent years has redeveloped and changed significantly in character. The $290,000.00 settlement amount is recommended as a fair penalty given the nature and duration of the violations in the affected area. JMG\RCM\sam F:\cmgr\$ALL\BOB~ienmitigation834-36 1 streetcomm.doc CITY OF MIAMI BEACH m 1700 CONVENTION CENTER DRIVE, MIAMI BEACH FL 33139-1824 June 8, 2003 Property Address: 834-836 1st ST RE: ROBERT DA TORRE Telephone (305) 673-7590 Facsimile (305) 604-2428 STATEMENT# 3758 PLATE # 682-683 IB THIS IS TO CERTIFY THAT THE FOLLOWING MUNICIPAL LIENS OR ASSESSMENTS ARE DUE AND PAYABLE AGAINST LOTS 13 THRU 16 BLK 52 OCEAN BEACH ADDN NO 3 Charge Type Account Number Service Period . Due Date Current Amount Due Delinquent . Interest County Total Due Amount Due Fees BK22040PG3834 $461,37 $16.00 BK18408PG2856 $759,00 $16.00 BK17345PG1674 $450,08 $16,00 $7,428.33 $477.37 $775.00 $466,08 $7,532.01 $16,00 1) UTILITY BILL:'" a) Water b) Sewer c) Storm Water dl Waste Impact Fee 508156 NONE $0.00 NONE $0,00 SEPT/04 09/29/04 $103,68 SEPT/04 09/29/04 $16.00 Flat rate for Waste & Stann Water of $92.80 & $16.00, respectively. 4) DEMOLITION & BOARDING-UP LIENS 5) RESORT TAX LIENS .. $0,00 $0.00 6) CITY BILLS CB46220 FAIRHOPE INVESTMENTS BK17614P0582 $539.46 $480.18 $16,00 $1,035,64 7) SPECIAL MASTER' *92-301 * JC00001111 . JC990815 S PT WAREHOUSE & MINI STORAGE FAIRHOPE INVESTMENTS NV FAIRHOPE INVESTMENTS NV $1,027,999,17 BK15859P4572-73 $1,772,400,76 BK19418P2065-66 $552,731.49 $1,027,999,17 $1,772,400.76 $552,731.49 'PLEASE CALL 8) SPECIAL ASSESSMENT $0.00 9) PERMITS, CERTIFICATE OF USE, LICENSES $0,00 10) OTHER $0,00 ""tu"" ISABEl 8ARRABE:.tTG ,\..~,. "1.1" l~''.' X:.... Notary PubliC, Slate of Florida i.: : '~MiCarmif.lbnEJ(piesWaf15,2rol ....;;."', <:I';",~f Commission # DD310064 "'",r;r.i,\,\"\ Bonded By Nottonol Notary Assn. / DEPUTY SUBCRIBED AND SWORN TO bef07~~iS 1"/.d~Y ).L...p <:' ::' 2004. ,/ I j" . ,1;". -\....,oL"/) " ~ '--t' ,'>---'f"--'J' '/tL~" /'-..J:... '-_,C NOTARY PUBLIC, STATE OF Flp IDA DADE COUNTY TOTAL AMOUNT DUE . if needed cali phone # (305) 673-7181 .. if needed cali phone # (305) 673-7447 ADDITIONAL BILLS MAY BE DUE FROM DATE OF LAST REGULAR READING TO DATE OF FINAL READING, ALL OE OF 10%. RECORDED LIENS BEAR INTEREST AT 12% PER ANNUM. UNPAID AND/OR DELINQUENT CHARGES TO THEREON, SHALL REMAIN AND CONSTITUTE SPECIAL ASSESSMENT LIENS AGAINST THE REAL PROPER, I I hereby certify that this Lien Statement Is a true and accurate reflection (as of the date of this Lien State' n of those Li of the City of Miami Beach Finance Department) due and owing the City of Miami Beach regarding'}he u ect prope ,/.' / / PATRICIA D. WALKER, CHIEF FINANCIAL OFFICER BY.