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HomeMy WebLinkAbout2006-26373 Reso RESOLUTION NO. 2006-26373 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING THE SETTLEMENT OF A CITY LIEN ON REAL PROPERTY LOCATED AT 912 71st STREET, MIAMI BEACH, FLORIDA, OWNED BY ANTHONY POLLlFRONE RESULTING FROM SPECIAL MASTER CASE NO. JB970094; PROVIDING THAT THE LIEN, IN THE AMOUNT OF $1,234,405.28, PLUS INTEREST, BE SETTLED FOR THE AMOUNT OF $34,000.00 AND FURTHER AUTHORIZING THE CITY MANAGER TO EXECUTE ANY AND ALL NECESSARY DOCUMENTS TO COMPLETE SUCH LIEN RELEASES AND SETTLEMENT SUBJECT TO THE APPROVAL OF THE SPECIAL MASTER. WHEREAS, the property located at 912 715T Street has accumulated a lien, in the amount of $1,234,405.28, plus interest; and . WHEREAS, the original violation was issued on March 12, 1997, for doing alterations to the building without obtaining a permit and for a violation of the accessibility code; and WHEREAS, the property was not open to the public for business during any time of violation; and WHEREAS, the contract for sale value on the property is $500,000.00; and WHEREAS, the Administration recommends full and final settlement of said lien, in the amount of $34,000.00. NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND THE CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission hereby approve a settlement for an outstanding City lien at the property located at 912 7151 Street, in the original amount of $1,234,405.28 (Special Master Case No. JB970094/Building Violation No. BV970303, recorded on July 15,1998, at Book 18189, Page 0560), for $34,000.00, in full settlement of this lien; and further authorizing the City Manager to execute any and all ecessary documents to complete such lien releases and settlement subject to the ap, r val the Special Master. PASSED and ADOPTED this 11th day f ,2006. AtiM~ OOvtlb CIJiLERK Robert Parcher F :\cmgr\$ALL \BOB\Pollifronelien912-71 Streetreso.doc Mayor David Dermer APPROVED AS TO FORM & LANGUAGI FOR ION ~4:i~ COMMISSION ITEM SUMMARY Condensed Title: A Resolution approving the settlement of a City Lien at 912715 Street owned by Anthony Pollifrone providing that the lien in the amount of $1,234,405.28 Ius interest be settled for the amount of $34,000.00. Ke Intended Outcome Su orted: Increase resident satisfaction with the level of Code Enforcement. Issue: Shall the City Commission approve the settlement of a City Lien on real property owned by Anthony Pollifrone? Item Summary/Recommendation: In 19961 Mr. Anthony Pollifrone doing business as Construction Engineers of Florida, acquired the property at 912715 Street, through a transfer of deed in lieu of a foreclosure. In 1997, Mr. Pollifrone undertook renovation work at the property to convert the premise into a restaurant. Mr. Pollifrone was cited for doing work without a permit and for violation of the accessibility code. The property was brought into compliance with the various Code requirements in August 2005. A lien on the property has accrued in the amount of $1,234,405.28 which is a direct result of the amount of time that the property was out of compliance. In the last several years, Mr. Pollifrone has made an effort to sell the property and has approached the City regarding settlement of the lien on the property. During this time, the City in an effort to assure that Mr. Pollifrone was being treated fairly in the real estate transaction, dealt with his daughter and a legal aid service for senior citizens. Ultimately, the Circuit Court granted an Order to an individual attempting to buy the property from Mr. Pollifrone and directed that the property be sold for $500.00.00 pursuant to a sales agreement. Since 2003, Mr. Pollifrone has struggled with a series of attorneys and legal actions relative to the property that ultimately resulted in a Court Order Receiver (Mark C. Alhadeff, Esquire) being appointed to finalize the real estate transaction. The Receiver has provided the City with expenses that will be paid by the Receiver in settling this issue before the Court and has represented that Mr. Pollifrone will expect to receive approximately $340,000.00 as a result of the sale of his property. The Receiver has agreed that a 10% of the equity or $34,000.00 payment in settlement of the lien is appropriate and that Mr. Pollifrone has a hardship in needing to rely upon the payout for his future living expenses. Advisory Board Recommendation: I N/A Financial Information: aBPI Amount Account Approved Source of . Funds: Total Financial Impact Summary: Cit Clerk's Office Le islative Trackin Robert C. Middaugh Si n-Offs: De.partment Director y Manager F:\cmgr\$ALL \BOB\Pollifronelien912-71 SIre m ,., MIA.MI BEACH AGENDA ITEM R7 H DATE~ ~ MIAMI BEACH City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov COMMISSION MEMORANDUM TO: Mayor David Dermer and Members of the City Commission FROM: Jorge M. Gonzalez, City Manager ~ ~lM..b~ DATE: October 11,2006 SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING THE SETTLEMENT OF A CITY LIEN ON REAL PROPERTY LOCATED AT 912 715t STREET, MIAMI BEACH, FLORIDA, OWNED BY ANTHONY POLLlFRONE, RESULTING FROM SPECIAL MASTER CASE NO. JB970094 AND PROVIDING THAT THE LIEN IN THE AMOUNT OF $1,234,405.28 PLUS INTEREST BE SETTLED FOR THE AMOUNT OF $34,000.00. ADMINISTRATION RECOMMENDATION Adopt the Resolution. ANAL YSIS In 1996, Mr. Anthony Pollifrone doing business as Construction Engineers of Florida, acquired the property at 9127151 Street, through a transfer of deed in lieu of a foreclosure. Attached is a letter from Mark Blumstein, acting as counsel for Mr. Pollifrone explaining the property transaction and acquisition. In 1997, Mr. Pollifrone undertook renovation work at the property to convert the premise into a restaurant. Mr. Pollifrone was cited for doing work without a permit and for violation of the accessibility code. The property was brought into compliance with the various Code requirements in August 2005. Bringing the property into compliance was extended as Mr. Pollifrone personally undertook the task and intermittently used a variety of advisors and outside sources that made the effort more complex than was probably necessary. Fines that have become a lien on the property have accrued in the amount of $1,234,405.28. The extraordinary amount of the fine and lien is a direct result of the amount of time that the property was out of compliance. The property was out of compliance for a period exceeding 8 years at a fine amount of $200 per day. It is important to note that the property in question was never opened to the public, which is an extenuating factor in the overall consideration of an appropriate settlement amount for the lien. In the last several years, Mr. Pollifrone has made an effort to sell the property and has approached the City regarding settlement of the lien on the property. During this time, the City in an effort to assure that Mr. Pollifrone was being treated fairly in the real estate transaction, dealt with ,his daughter and a legal aid service for senior citizens. The Neighborhood Services Department, both Code Compliance and Children's and Elder Affairs office were involved in assisting Mr. Pollifrone and trying to help him through our process. As indicated earlier, Mr. Pollifrone engaged a variety of persons to help him in this endeavor that turned out to be less than helpful and further elongated the process. Ultimately, the dispute over a sales contract and its validity was litigated and the Circuit Court granted an Order to an individual attempting to buy the property from Mr. Pollifrone and established the sale price as part of the Court Order. The Court directed that the property be sold for $500,000.00 pursuant to a sales agreement that the Court directed be enforced. Subsequent to the court order in 2003, Mr. Pollifrone struggled with a series of attomeys and legal actions relative to the property that resulted in a Court Ordered Receiver being appointed to finalize the real estate transaction consistent with the Court Order. The Court appointed Receiver was Mr. Mark C. Alhadeff, Esquire, of the Law Firm Stearns Weaver Miller, Weissler, Alhadeff & Sitterson, P.A., in Miami, Florida. Since Mr. Alhadeffs appointment as the Receiver, the City has dealt exclusively with him in the settlement of the lien for the subject property. The Receiver has provided the City with expenses that will be paid by the Receiver in settling this issue before the Court and has represented that Mr. Pollifrone will expect to receive approximately $340,000.00 as a result of the sale of his property. The City has asked for and received a statement of the various disbursements of the Receiver on Mr. Pollifrone's account. The payments are appropriate in amount and for the services necessary by the Receiver to close the matter. In discussing an appropriate settlement amount with the Receiver, it was agreed that a percentage of the equity is more appropriate than a percentage of the entire lien amount which has grown to a disproportionately large amount. The City, while expecting to be compensated for the extensive efforts undertaken, also accepts that our settlement amount should respect the overall circumstances and Mr. Pollifrone's need to have a sufficient disbursement upon which to live. The Receiver has agreed that 10% of the equity or $34,000 payment in settlement of the lien is appropriate in Mr. Pollifrone's situation. The lien has grown to a level that is completely unrealistic, thus using that amount as a basis for settlement is inappropriate. This settlement amount will recognize an appropriate fine for the nature of Mr. Pollifrone's infraction and further recognize that the subject property has never been open for business thereby mitigating any damage associated with the violation and that Mr. Pollifrone has a hardship in needing to rely upon the payout for his future living expenses. 2 This lien is a good example of why settlements are available as a part of our overall process. The settlement discussions allow the City to recognize and address unique circumstances and to assure that the application of our traditional processes creates a fair result. Approval of the settlement amount is recommended. JMG\RCM\sam F:\cmgr\$ALL\BOB\Pollifronelien912-71 Slreelcommemo.doc 3 MARK BLUMSTEIN, ESQ. 4000 PEPPER TREE DRIVE WESTON, FLORIDA 33332 EMAIL: mibpa@yahoo.com E: f7 ~ iJ ""05 C'.-" r) ."~ ZU.. :'1"1..' " { ""b.. c.....v p '~ ;".: ! ',nu' t,; . J; I I : Mark I. Blumstein ,'-'." Phone: (954)' 343:S85:f -,.,- Fax: (954) 343-8853 ( uJ..O E<,S4) -d'"tY -oq 3 September 22, 2005 TO: THE CITY OF MIAMI BEACH RE: 910 71sT STREET, MIAMI BEACH, FLORIDA This letter is a brief history relating to Mr. Pollifrone's ownership of the above referenced property (which has been vacant since prior to his acquisition of the property). Mr. Pollifrone acquired the property in 1996 by way of a Deed in Lieu of Foreclosure as a result of unpaid monies owed to him by the former owner of the property (Bonaventure Ripa). At the time Mr. Pollifrone acquired the property (1996) he was owed in excess of $487,550.00. At the time it was the only tangible asset of Mr. Ripa and therefore Mr. Pollifrone accepted the property. The property has not been open for business since prior to his acquisition of the property. In 2003 Ronald V olk filed a lawsuit against Mr. Pollifrone for specific performance forcing Mr. Pollifrone to sell the property to him for $500,000.00. Although the property is worth in excess of $650,000.00, Mr. Volk has, through the Court system, obtained a Court Order requiring Mr. Pollifrone to clear up the liens on the property and sell the property to him for $500,000.00. Mr. Pollifrone is 85 years old. When he sells the property it will be for a substantial loss. The money he receives from this sale is all of the money he will have to live off of for the rest of his life. As many employees of the City of Miami Beach can attest, Mr. Pollifrone has attempted to resolve the matter on his own for many years. Finally with the help of professionals he has been able to bring this matter to its conclusion. Thank you for your time and attention to this matter. Sincerely,_ /i d ~/t. -~--C....--_._-_. /- " ".;/ / /' / - ..' - (./.>1, / j/ !,~ .A( ~/ ~"1.-/ . Mark Blumstein ' '- _. IN mE CIRCUIT COURT OF THE 11 'IE JUDICIAL CIRCUIT IN .AND FOR MIAM1-DADE COUNTY, FLORIDA GENERAL JURISDICTION DMSION CASE NO. 03-22176 CA 11 RONALD VOLK., . Plaintiff, VB. .ANTHO~'Y POLLIFRONE, Defendant. . I ORDER GRANTING PLAINTIFF'S MOTION TO AFPOlNT RECEIVER AND DE~TflNG DEFENDANT'S ORE TENUS MQTION TO STAY APPOINTMENT OF RECEIVER THIS CAUSE came before the Court apon notice on July 7,2005, regarding Plamtiffs Motion to Appoint Receiver and the Defendanf s Ore Tenus Motion to Stay the Appointm.ent of Receiver. The Plaintiff appearedwitb. his attorney, John L. Penson., and the Defendant, Anthony Pollifrone, appeared with his attorney, Timothy Nies. The Court having taken testimony, having heard argument of counsel, considered the court file, and being otherwise fully advised in the premises, the Court finds as follows: (A) Despite the fact that the Parties entered j.nto a settlement agreement during the pendency of this case which was approved by prior Order of . this Court,.the Defendant, Anthony Pollifrone, refuses to clear the title to the subj ect property sucb. that title may conveyed to the Plaintiff free and clear of alllien.s and encumbrances. (B) . that the rea.l property that is the subj ect matter oftbisactionis now under contract and shall be sold to the Plaintiff, RonaldVolk" in short order. Nov;r THEREFORE IT IS HEREBY ORDERED, ADJUDGED AND DECREED: . 1 AUG O:J 2005 .:-' -- 1. That John Herin, Esq.,ishereby appointed Recei,rer and is to. serve as the Receiver in this matter -until further order of this Court of the real and personal property (liThe Property")that constitutes the subj ect IIlatter of tbis. action. The Property consists primarily of one vacant commercial property that was formerly used as a restaurant. The real property is located at 912 71 Stree~ Miami Beach, Florida and legally described as follows: LOT 7 BLOCK 5 ISLE OF NORMANDY OCEANSIDE SECTION ACCORDING TO THE PLAT THEREOF RECORDED lNPL..~TBOOK25 PAGE 60 PUBLIC RECORDS MIAMI-DADE COUNTY~ FLORIDA 2. That the Receiver shall withintwenty (20) days oftms Order file an Oath or Receiver with this Court. 3. That said Receiver is not directed to obtain a surety bond. IT IS FURTHER ORDERED, ADJ1JDGED AND DECREED that subsequent to the filing of this Oath. of Receiver: 4. The Receiver is hereby .authorized to acquire and keep in effect, fire, extended coverage, property damage and liability insurance with respect to the real and personal property in appropriate amounts. 5 The Receiver is hereby authorizedto take possession ofand operate the aforesaid real property, including but not by way of limitation, all personal property and fixturesielating to the operation of the property that is within the jurisdiction oftbis Court and shall retain custody of all such property until further order of this Court. 6. The Receiver shall undertake all lawful acts in order to clear the title to . The Property such that the property shill rightfully conveyed to the Plaintiff, Ronald Yolk, in this cause. . 7. The Receiver is hereby authorized to represent Defendant to settle any liens, fines, and/or penalties lodged against said real property 'With the City of Miami Beach or any other party. The Receiver has full aUi.:hority 1:0 enter into a monetary or other settlement, or hearings before any governmental authorities or court. . 2 ..-. '- 8. The Receiver shall have authority to hire construction professionals, if required by the City of Miami Beach, in order to bring the property into compliance, as required to be perfbrroed as a prerequisiteto mitigate any liens. .Any payments made to bring the property into compliance shall be paid from the Deposit paid.by Plaintiff and now held in escrow. 9. Tbe Receiver may em.ploy ind~endent legal cOUIlsel and/or architects, contractors and/or the like' for such pUfJ?oses as may be deemed . necessary during the period of said receivership, including the clearing of title to the property for the closing. The Receiver is empowered to pay such parties as an operating cost, subjecthowev:er, to the prior approval . of the Court. 10, The Receiver shall, under oath, prepare and file with the Court on or before August 15, 2005, or sooner, a full and detailed report of the status of the title of The PropertY, of all the personal property, assets and effects of every nature involved ,in the premises of wbich. he is hereby given custodY1 11. The Receiver is directed to timely prepare all documents for the closing for the sale of the property to close and to file the same Virith this Court for approval prior to closing. The closing shall take place in a reasonable and timely m~mner. . 12. The Defendant, his agents, servants, employees, representatives, and attorneys are hereby enjoined from interfering with the management of the property b~ the Receiver until further order of this Court. 13. }.J1 persons or corporations now or thereafter in possession of the real or personal property conatituting the subj ect matter oftbis action, including the deposit, or any part thereor shaJlforthwith surrender such possession to the Receiver. . 14. The Court hereby reserves jurisdiction 'to enter to enter such orders that are necessary and proper i.:o.cluding a Final Judgment in favor of the Plaintiff, together with any damages' born by the Plaintiff due to the Defendant's failure to close which sbill also include legal fees, receiver fees. costs, and any other teliefjust underthe circumstaJ:ices. 15 . The . Receiver shall be entitled to deduct a fee foT' his services in an 3 ...-. .~, amount to be determined by the Court at a subsequent hearing. DONE AND ORDERED in Chambers atMi~mQj~-M~P~, 2005 JUL 28;2005 ~ N ~r.O\lJ.. Jr. CIRCUIT CO . . E~rt Judge cc: John L.,Penson, Esquire (Plaintiff's Counsel) Timothy Nies, Esq. (Defendant's Counsel) Anthony Pollifrone, {Defendant), 65lY5 Pletcher Street) Hollywood, FL 33023 John Herin, Esq. (Court Appointed Receiver) 4 ar~d~- z~ 373 SETTLEMENT AND RELEASE OF LIEN(S) AUTHORIZATION PROPERTY ADDRESS: 9l2 7l~` Street, Miami Beach, Florida PROPERTY OWNER: Anthony Pollifrone CASE NUMBER(S): Special Master Case #JB970094 NATURE OF LIEN(S): Building Violation LIEN AMOUNT(S): $1,234,405.28 LEGAL DESCRIPTION: OCEAN SIDE SEC ISLE OF NORMANDY PB 25-60 LOT 7 BLK 5 LOT SIZE 25.000 X 122 OR 17241-4799 17466-3808 0696 5 NICHOLAS & RICHARD BORGINE DONATO & ANTONIO & LUCIANO MORRA OR 9230- 888 0276 1 VINCENZO MORRA & W ELENA L1EN RECORD BKPG: Book 18189, Page 0560 Pursuant to the authority vested in the City Charter to enter into Settlement Agreements for liens against property filed by the City of Miami Beach, this Settlement Agreement is entered into with Anthony Pollifrone, the property owner at 912 71 S` Street, Miami Beach, Florida, to settle and provide for the release of the lien(s) as indicated herein. The City Clerk of the City of Miami Beach is hereby directed and authorized to release the above referenced lien(s) imposed upon the real property at 912 71'` Street, Miami Beach, Florida, pursuant to conditions herein and as described herein. Condition(s) of Settlement: This lien in the amount of $1,234,405.28 is settled in consideration of receipt ol~ $34,000.00 (per the attached Resolution) receipt of which is hereby acknowledged. The property owner warrants that subject property is in compliance with City Codes. - J .___ ge onzalez City Manager 2 ~' a r Date G i' f '~ ~^ ~~ Robert C. ddaugh ~ Assistant City Manager A ~ .. Z ~_ Date AGREEMENT TO SETTLEMENT AND RELEASE AUTHORIZATION I have read this SETTLEMENT AND RELEASE OF LIEN(S) AUTHORIZATION, regarding 912 715` Street, Miami Beach, Florida, Special Master Case Number JB970094 and lien amount of $1,234,405.28 and I understand and agree to its terms and have executed same for its purposes herein stated. Accepted by: John Herin, as Anthony Po 'fi ne, Property Owner STATE OF FLORIDA ) v SS COUNTY OF MIAMI-DADE ) The foregoing instrument was acknowledged before me this ~ day of j ~ ~ 2007, by S~ ~N /~~/e//ti/ who has produced ~e~/his driver's license as identification and who did/did not take an oath. MY COMMISSION EXPIRES NOT Y LIC, TATS OF FLORIDA 1~ar ~~e •r:•_.~~~~., ita:e JI ~ IuHJa~ PRIN I~ ~ ,. • :,~•~ OF ~~ : poi::,., ~,iy,l)b12O10 P:Acmgrl$r'1LL'~,ROBlliensctU~mentpollifrour,912-71~tStreeLdoc ....~,..... 1 ani la ]ATE: 51 tAFiIVJ vt/tHVttS ivn~~~n, e- cu. Client: OUR FILE: CHECK DATE: CHECK AMOUNT: BILLING ATTORNEY: DESCRIPTION DADE COUNTY CIRCUIT COURT 31437.0002 02/01 /07 34000.00 John R. Herin, Jr. MCS/JH -Lien Mitigation Client: OUR FILE: CHECK DATE: CHECK AMOUNT: BILLING ATTORNEY: DADE COUNTY CIRCUIT COURT 31437.0002 02/01 /07 34000.00 John R. Herin, Jr. CHECK DATE 02/01 /07 BANK OF AMERICA MIAMI, FLORIDA STEARNS WEAVER MILLER WEISSLER AI.HADEFF & SITTERSON, P.A. ATTORNEYS AT LAW MIAMI, FLORIDA *** THIRTY FOUR THOUSAND DOLLAR AND no CENTS PAY City of Miami Beach TO THE ORDER OF . n 63-1121660 • G • c CHECK # 1 VO 1 V Not valid after 90 days CHECK AMOUNT $ 34,000.00 _ .. .. -,..aqua ~~• L60 L6ii' x:063 X00 277: 0008 2 200 2809~I'