2007-26601 ResoRESOLUTION NO. 2007-26601
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF
THE CITY OF MIAMI BEACH, FLORIDA, APPROVING THE
SETTLEMENT OF CITY LIENS ON THE REAL PROPERTY
LOCATED AT 3101 INDIAN CREEK DRIVE (SOUTH BEACH
BAYSIDE 1 CONDOMINIUM), MIAMI BEACH, FLORIDA,
RESULTING FROM SPECIAL MASTER CASE NOS. J98F0019;
J99F0214; JB00000423; AND JB990011, AND PROVIDING
THAT SAID LIENS, IN THE AMOUNT OF $1,354,366.20 PLUS
INTEREST, BE SETTLED IN CONSIDERATION OF $71,797.16,
PREVIOUSLY PAID TO THE CITY AS PARTIAL LIEN
RELEASES; AND FURTHER AUTHORIZING THE CITY
MANAGER TO TAKE SUCH ACTION(S) AND EXECUTE ANY
AND ALL NECESSARY DOCUMENTS TO COMPLETE SUCH
LIEN RELEASES AND SETTLEMENT.
WHEREAS, the property located at 3101 Indian Creek Drive (South Beach
Bayside 1 Condominium or the "Property") has accumulated liens, in the amount of
$1,354,366.20, plus interest; and
WHEREAS, the Property has four different Building and Fire Violations dating
back to 1998, 1999, and 2000, respectively, which were for non-compliance with a forty
year building recertification, and a series of fire violations and elevator violations on the
condominium structure; and
WHEREAS, the total of liens on the Property, in the amount of $1,354,366.20, is
clearly well in excess of any fines that would be appropriate to be paid for the period of
non-compliance for any one or the total collection of violations on the Property; and
WHEREAS, the current Board of Directors has been very diligent in bringing the
Property into compliance and has expended significant amounts of money to achieve
compliance, as well as in its pursuit of an accurate historic renovation of the Property;
and
WHEREAS, the City Administration has noted that $71,797.16 has already been
paid to the City, in order to allow individual units to be released for sale over the last
several years, and represents an amount that is in excess of a cash settlement that
would have been recommended to the City Commission with regard to settlement of the
aforestated liens; and
WHEREAS, the Administration would therefore recommend that the $71,797.16,
already paid to the City, be accepted as full and complete settlement for the existing
$1,354,366.20 lien amount, and that said liens be released.
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 the settlement for the outstanding City liens on the real
property located at 3101 Indian Creek Drive (South Beach Bayside 1 Condominium),
Miami Beach, Florida, resulting from Special Master Case Nos. J98F0019; J99F0214;
J600000423; and JB990011, and providing that said liens, in the amount of
$1,354,366.20 be settled in consideration of $71,797.16 previously paid to the City as
partial lien releases; and further authorizing the City Manager to take such action(s) and
execute any and all necessary documents to ,e~omplete !such lien releases and
settlement.
PASSED and ADOPTED this 11th day~bf July// ~_~ , 2007.
C.~ v.....,...
A ' T: ppI~ A~ David Dermer
WV
CITY CLERK
Robert Parcher
F:\cmgr\$ALL\BOB\3101 I ndCreekliensettlemreso.doc
APPROVED AS TO
FORM 8~ LANGUAGE
COMMISSION ITEM SUMMARY
A Resolution approving the settlement of City liens at 3101 Indian Creek Drive providing that the liens in
the amount of $1,354,366.20 plus interest be settled in consideration of $71,797.16 previously paid to the
City as partial lien releases.
Condensed Title:
Key Intended Outcome Supported:
Increase resident satisfaction with the level of Code Enforcement.
Supporting Data (Surveys, Environmental Scan, etc.): 61 % of residents are either very satisfied
', or satisfied with the fairness and consistency of the enforcement of code and ordinances in their
neighborhood.
Shall the City Commission approve the settlement of City liens on real property at 3101 Indian Creek
Drive?
Issue•
Item Summa /Recommendation:
The South Beach Bayside 1 Condominium located at 3101 Indian Creek Drive (formerly the Green Brier
Hotel) has accumulated liens in the amount of $1,354,366.20. Four liens have been imposed on the
property dating back to 1998.
Three liens constitute the majority of the total amount. In 1999, a fire lien in the amount of $490,415.84,
in 1999, a building lien in the amount of $632,266.06, and a 2000 building lien in the amount of
$227,465.30 constitute the largest of liens imposed on the property. The largest lien is for non-
compliancewith aforty year building recertification, while the other liens are for a series of fire violations
and elevator violations. To date, all violations on the property have been corrected.
The total of liens on the property is clearly well in excess of any fines that would be appropriate to be paid
for the period of non-compliance for any one or the total collection of violations on the property. It is
significant to note, that the current Board of Directors have been very diligent in bringing the building into
compliance and have expended significant amounts to achieve compliance, as well as in their pursuit of
an accurate historic renovation of the structure.
In the review of the lien history, it has been discovered that $71,797.16 has already been paid to the City
in order to allow individual units to be released for sale over the last several years. The $71,797.16
represents an amount that is in excess of a cash settlement amount that would have been recommended
for the City Commission on this project. Typically, liens and violations of this nature are settled for
substantially less amounts of money. As the $71,797.16 was paid by former owners more closely
associated with the periods of violation, it is appropriate that the City retain this amount. Since over 50%
of the units have turned over to new ownership it is also recommended that no new funds be required
from the current owners b the Ci in settlement of the several liens.
Adviso Board Recommendation:
N/A
Financial Information:
Source of Amount Account
Funds: ~
0 2
OBPI Total
Financial Impact Summary:
Sian-Offs:
AGENDA ITEM
^~r ~~1 Y 1~ ~~~ DATE 7"~~~07
Ci Clerk's Office Le islative Trackin
m MIAMIBEACH
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 Cit Commission
FROM: Jorge M. Gonzalez, City Manager ~
DATE: July 11, 2007
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 3101 INDIAN CREEK DRIVE(SOUTH
BEACH BAYSIDE 1 CONDOMINIUM), MIAMI BEACH, FLORIDA, RESULTING
FROM SPECIAL MASTER CASE NOS. J98F0019; J99F0214; J600000423;
AND JB990011, AND PROVIDING THAT SAID LIENS, IN THE AMOUNT OF
$1,354,366.20 PLUS INTEREST, BE SETTLED IN CONSIDERATION OF
$71,797.16 PREVIOUSLY PAID TO THE CITY AS PARTIAL LIEN RELEASES,
AND FURTHER AUTHORIZING THE CITY MANAGER TO TAKE SUCH
ACTION(S) AND EXECUTE ANY AND ALL NECESSARY DOCUMENTS TO
COMPLETE SUCH LIEN RELEASES AND SETTLEMENT.
ADMINISTRATION RECOMMENDATION
Adopt the Resolution.
ANALYSIS
The South Beach Bayside 1 Condominium located at 3101 Indian Creek Drive (formerly the
Green Brier Hotel) has accumulated liens in the amount of $1,354,366.20. Four liens have
been imposed on the property dating back to 1998.
Three liens constitute the majority of the total amount. In 1999, a fire lien in the amount of
$490,415.84, in 1999, a building lien in the amount of $632,266.06, and a 2000 building lien
in the amount of $227,465.30 constitute the largest of liens imposed on the property. The
largest lien is for non-compliance with a forty year building recertification, while the other
liens are for a series of ire violations and elevator violations. To date, all violations on the
property have been corrected.
In the review of this condominium association lien history, an on-site inspection was
conducted, as well as a number of meetings were held with several of the members of the
condominium Board of Directors. The condominium owners have been very helpful in
recreating and documenting the history associated with the project. Attached for
Commission review is a detailed timeline for the building dating from 1941 the time the
Green Brier Hotel opened as an L. Murray Dixon structure, until 2007. Also attached are
three letters from the condominium association President which clearly details the history of
the condominium building and the rather substantial efforts that the Board of Directors has
taken over time to bring the building into compliance, as well as to achieve a historical
renovation of the structure.
The history of the condominium project as stated by the President concurs with the written
records maintained by the City both as to the timeline, the violations and the compliance
dates. The condominium association has added uniquely their individual perspectives to the
project that explains the various ups and downs which the condominium association has had
to address.
The total of liens on the property is clearly well in excess of any fines that would be
appropriate to be paid for the period ofnon-compliance for any one or the total collection of
violations on the property. It is significant to note, that the current Board of Directors have
been very diligent in bringing the building into compliance and have expended significant
amounts to achieve compliance, as well as in their pursuit of an accurate historic renovation
of the structure.
In the review of the lien history, it has been discovered that $71,797.16 has already been
paid to the City in order to allow individual units to be released for sale over the last several
years. The $71,797.16 represents an amount that is in excess of a cash settlement amount
that would have been recommended for the City Commission on this project. Typically, liens
and violations of this nature are settled for substantially less amounts of money. As the
$71,797.16 was paid by former owners more closely associated with the periods of violation,
it is appropriate that the City retain this amount. Since over 50% of the units have turned
over to new ownership it is also recommended that no new funds be required from the
current owners by the City in settlement of the several liens.
The condominium association is very comfortable with a settlement that would accept the
$71,797.16 already paid to the City in full settlement of the liens and that no further funds be
required. It is recommended that the $71,797.16 already paid be accepted as full and
complete settlement and that the lien amount of $1,354,366.20 be reduced to zero and the
liens released.
JMG\RCM\sam
F:\cmg r\$ALL\BOB\3101 I ndCreekliensettlemencommemo. doc
Attachments
2
Date: 05/21/2007
Robert Middaugh
Assistant City Manager
City of Miami Beach
1700 Convention Center Drive
Miami Beach, F133139
Dear Bob,
Thank you for the opportunity to meet with you on Friday May 18, 2007. We
have enclosed all of the written documents which you have previously
received as well as an additional Time Line document and photographs of the
building. The changes to the earlier documents are minor but please discard
them for complete consistency and consider this the cover letter for the
complete current document set. Please request any additional information that
you may require from our onsite manager Estrella Lima who as we previously
indicated is familiar with all details of the project and the history of our
Condominium.
As indicated there is still a great deal to accomplish in the Restoration of the
Property and we are actively engaged in these activities. We are hoping that
we may be able to raise further funds for restoration by either Special
Assessment or the use of credit and not for the fines and liens that have
accrued to date over a long period of time. Final settlement of this matter will
free us to move ahead with such projects as may be necessary.
As a side note the placement of the waste receptacle by the bus stop across
Indian Creek is proving effective in making our neighbored a better
environment and has been noted by other owners in our building.
Looking forward to hearing from you on these matters and associated
scheduling. We offer any and all support in bringing this matter to closure.
Estrella Lima may be reached as follows:
By Telephone at 305 761 3732
By Email at ~3/Y?~}j~}~2~~,4j~ y ~~
By Regular Mail to the
South Beach Bayside Condominium Association
3101 Indian Creek Drive, Miami Beach 33140
.~~
Sincerely, ~,~_ ~ ~ o
Joel Cohen ~ 7 ~ ~ /~ ~I p~~~ Cp~~~f
Date: 05/21/2007
Robert Middaugh
Assistant City Manager
City of Miami Beach
1700 Convention Center Drive
Miami Beach, F133139
Dear Mr Middaugh:
South Beach Bayside Condominium 1 is a sma1142 unit residential
condominium association located at 3101 Indian Creek Drive. We have the
following four outstanding City of Miami Beach liens aggregating $1,362,722:
J98F0019 $4243
J99F0214 $493,456
JB00000423 $228,929
JB990011 $636,094
Compliance Date 2/09/1998
Compliance Date 4/04/2003
Compliance Date 11/03/2003
Compliance Date 11/07/2006
All underlying violations have been cured and Affidavits of Compliance have
been issued.
The last special master case, JB990011, involved the 40 year recertification of
our building. We had to raise $750,000 from an Association whose 2003 annual
budget was $15 8,000. Following the special assessment, there were ten
foreclosures, as documented in Special Master Synopsis. Capital raising and
restoration began in January 2004 and included structural concrete/rebar
repairs, electrical upgrade, a new roof, inside/outside painting, elevator repairs
and related projects. The majority of the work required for the 40 year
recertification was completed by January 2006 and presented to the Special
Master. During the final inspection, our engineer determined that a large lobby
concrete slab needed to be structurally repaired. This project was undertaken
and completed in November 2006.
The Association is now requesting that the outstanding fines be mitigated to
cover the amount of the special master expenses incurred by the City of Miami
Beach. We believe these expenses have been more than covered since $70,440
has already been paid to date to the City of Miami Beach in Partial Release of
Lien procedures.
Since 2004 the Association and a new management company have worked
diligently with City departments and our contractors to have the building
recertified. Our residents feel that further payment of fines would be unfair and
extremely burdensome given how much money they have had to invest in
fixing up the building.
We respectfully request that all of the remaining liens be cancelled and
discharged without further payment.
After you review the file, I would appreciate the opportunity to meet with you
to discuss any questions you might have about our mitigation request.
Sincere ,
oel Cohen -Association President
305-812-0153
sabatuti(cr~hotmail com
Date: 05/21 /2007
Robert Middaugh
Assistant City Manager
City of Miami Beach
1700 Convention Center Drive
Miami Beach, F133139
Dear Mr. Middaugh:
In my initial letter I gave a broad outline of the current circumstance of the
South Beach Bayside 1 Association and their nearly $1,400,000 in liens and
fines. I have since been further familiarized with the details and you have
visited the property. In terms of delay and time consumed I feel that the 40- yr
cert projects were always at the core of our problem.
The 41 unit building in question, originally a hotel built in 1941 was
converted to a condominium in the early 90's. The Association Owners took
control from the developer, Grand plaza & Associates Inc., in 1995. In
reviewing early financials it seems that the developer projected very low
maintenances to begin with and the owners whom subsequently took control
were very naive in budgeting and very neglectful in maintenance.
By 1999 when the building became due for its 40yr re-certification nearly half
the owners had stopped paying their maintenance. It became apparent that the
building needed substantial additional investment in structural and electrical
infrastructure aside from the visible deterioration from a lack of ordinary
maintenance. At that point the Association was heading toward a financial
breakdown, which finally occurred in late 2001. Dismayed owners started
`dropping out and non-payments for assessments accelerated.
When a new (and our current) management company, Property Management
Services Corp (PMSC), was hired in late 2001 their first Balance Sheet
indicated $159,000 of uncollected assessments and outstanding liabilities of
$27,793. In January of 2002 the electricity was turned off for lack of payment
and the City of Miami Beach shut the building down as unsafe and all resident
were forced to leave.
When the building was reopened a few weeks later aggressive foreclosure
proceedings began and there was no real way to raise the capital for the
recertification until much of that was completed. The process was exacerbated
by the difficulty new buyers encountered when attempting to obtain financing
because of the outstanding liens with the City. By the end of 2003 all
violations except the 40 yr re-cert were cured and remained accruing interest,
awaiting 40 yr re-cert completion which continued to accrue fines and interest.
Under a new board in Jan 2004, $350,000 was Special Assessed and
aggressively collected over 6 months allowing the 40yr re-cert projects to
commence. I became President of the Association in Nov 2005 after much of
the work had been completed. The organization was once again out of project
funds. Vendors were owed $90,000. We applied at three different banks to
borrow funds to complete vendor payments and were turned down by all
because of the accruing liens on the building. By the end of December our
engineer issued a conditional certification subject to execution of the newly
discovered lobby slab lack of structural steel.
Once again we turned to the ownership fora $405,000 Special Assessment to
be paid in six monthly installments. I wrote a detailed analysis in Jan of 2006
explaining what had occurred financially since the first Special Assessment.
On receiving the first payments in March 2006 the Association began the
second phases reengineering and reinforcing the concrete slab, a major
undertaking. This last phase took nine months from design to acceptance and
was completed by Nov 2006, exceeding our expectation in result.
In summary the SBBC 1 Association and its various boards from the beginning
naively managed unrealistic budgets, allowed property deterioration, hit
bottom with a shutdown just when major work for re-cert was due. New
management raised the operating budgets by 65%, aggressively pursued
foreclosure and raised $750,000 directly from the owners. The entire building
was turned around over the next two years as owner turnover took its natural
course. It took a very long time to reestablish the financial strength of the
condominium and integrity of the building. It would be a great burden to the
Association to once again be assessed for something they have paid for and
could once again unhinge our financial stability.
During the entire period under consideration partial release payments to the
city were $71,830 and progress reports were maintained with the Special
Master Department. The current ownership has been heavily assessed to meet
and exceed the curing of all violations and continues enthusiastically to
restore the property which perhaps was visible during your visit. I would hope
the city will consider our accomplishments and needs and rule that we need
not make any further payments to obtain full release.
Sincerely,
Joel Cohen
Association President
5/21 /2007
Note: Association Search Found the Following Partial Release Payments
made to the City of Miami Beach
Date Amount Unit
8/2/2000 $ 1,768.00 202
8/2/2000 $ 2,100.00 202
4/4/2001 $ 5,019.73 102
4/24/2001 $ 4,638.00 102
8/8/2001 $ 620.87 205
8/8/2001 $ 1,895.35 205
8/8/2001 $ 728.91 205
8/8/2001 $ 1,938.15 205
8/8/2001 $ 6,576.00 211
9/19/2001 $ 1,522.94 311
10/31/2001 $ 2,115.53 110
12/11/2001 $ 2,124.34 208
10/22/2003 $ 2,247.94 310
5/19/2004 $ 2,374.19 210
4/21 /2005 $ 1, 938.15 205
5/19/2005 $ 5,673.21 403
5/19/2005 $16,058.63 403
5/19/2005 $12,349.72 403
5/19/2005 $ 107.50 403
Total ----> $ 71,797.16
Condominium Time Line - Ending 5-21-2007
1941 Art Deco Green Brier Hotel Opened, Designed by L. Murray Dixon
1994 Conversion by Grand Plaza Associates to South Beach Bayside
Condominium I (SBBC 1) 41 Units Completed and units for sale.
Association Responsible for All Utilities.
1995 Control Transferred to Condo Association, Three Person Board -
First Special Assessment for $22,000 for Water & Sewer, Insurance &
Building Repairs.
1996 In December Special Assessment for $40,000 for Plumbing, Electrical
& Roofing Engineering and Repairs.
1997 Data Not Available
1998 $106,000 budget, 35% for Utilities, $70,000 to mange property!
J98F0019 Affidavit of Compliance issued on Feb 9`h
1999 Building Due for 40 yr recertification
2000 Budget Data Not Available
2001 November, Change of Management Company. Balance sheet
shows $159,000 in uncollected assessments and liabilities of $27,793.
Annual Budget of $119,000 has major shortfalls. Foreclosure
procedures initiated.
2002 March, Building Shutdown for three weeks due to lack of payment
of Electricity, Natural Gas and Waste Collection. Budget increased
62% to $193,000 to reopen building and proceed.
2003 Foreclosure Proceedings Accelerated. $41,000 in Bank & Legal
Expenses Incurred. Three of Four Violations receive Affidavits of
Compliance. Remaining non compliance with Recertification
Requirements. J98F0214 Affidavit of Compliance issued on Apr 25
J98F000043 Affidavit of Compliance issued on Nov3rd
2004 January, $350,000 Special Assessment for Recertification Passed
August, Structural Recertification Specifications Completed.
Roof Replaced for $62,000.
2005 January, Structural Recertification Contracted to CSI South East
Inc. Initial Bid $327,043.
December, Structural Recertification Engineering Acceptance.
December Association Informed of Phase II requirement for lobby
concrete slab reengineering.
2006 March, $403,000 Special Assessment for Phase II Passed.
2007 February, Engineers Approve Final Recertification.
City of Miami Beach Grants Letter of Building Recertification,
with expiration date of June 2016. Association request meeting with
Assistant City Manger for mitigation of outstanding Fine & Liens.
JB990011 Affidavit of Compliance issued on 11 /07/2006
amp r- ~ G ~ ~ ~
SETTLEMENT AND RELEASE OF LIEN(S) AUTHORIZATION
PROPERTY ADDRESS
PROPERTY OWNER:
CASE NUMBER(S):
NATURE OF LIEN(S):
LIEN AMOUNT(S):
LEGAL DESCRIPTION:
LIEN RECORD BKIPG:
3101 Indian Creek Drive, Miami Beach, Florida
South Beach Bayside 1 Condominium Association
Special Master Cases #J98F0019, .199F0214, JB00000423
& JB990011
Building and Fire Violations
$1,354,366.20
MIAMI BEACH IMP CO SUB PB 5-8 LOT 10 & W l OFT
LOT 8 & LOT 13 & OUT LOT 13 & LOT 14 & OUT LOT
14 BLK 16 LOT SIZE IRREGULAR OR 13525-439 l 187
Book 18726, Page 718; Book 19053, Page 4688; Book
19370, Page 1664; and Book 18896, Page 3792
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 South Beach Bayside 1 Condominium Association, the property owner
at 3101 Indian Creek Drive, Miami Beach, Florida, to settle and provide for the release of
the lien(s) as indicated above.
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 3101 Indian Creek Drive,
Miami Beach, Florida, pursuant to conditions herein and as described herein.
Condition(s) of Settlement:
The subject lien(s), in the amount of $1,354,366.20, are settled in consideration pursuant
to the conditions as approved in City of Miami Beach Resolution No_ 2007-26601 (as
attached hereto). As additional consideration for the settlement of the above referenced
liens, the South Beach Bayside 1 Condominium Association further agrees to indemnify
and hold the City of Miami Beach, and/or its officers, directors, employees, and agents,
harmless from and against any and all claims, whether now existing or arising in the
future, that may arise out of, or as a result of, any of the partial release of liens previously
paid (totaling $71,797.16) to the City of Miami Beach (as referenced in the attached
Resolution).
The property owner warrants that subject property is in compliance with City Codes.
orge i~1. onzalez ~`~
City ager `~
. f'~- . -
Robert . Middaug ;
Assistant City Manager
~-IS-o?
Date
7_ 17-~~
Date
AGREEMENT TO SETTLEMENT AND RELEASE AUTHORIZATION
I have read this SETTLEMENT AND RELEASE OF LIEN(S) AUTHORIZATION,
regarding 3101 Indian Creek Drive, Miami Beach, Florida, Special Master Case Numbers
J98F0019, J99F0214, JB00000423 and JB990011 and lien amount of $1,354,366.20 and I
understand and agree to its terms and have executed same for its purposes herein stated.
Accepted by:
oel
STATE OF FLORIDA
President of South Beach Bayside 1 Condominium
COUNTY OF MIAMI-DADE
SS
The foregoing instrument was acknowledged before me this ~~ day of
2007, by ~ ~hP~y1 who has produced her/his
driver's 1 cense as identification and who did/did not take an oath.
MY COMMISSION EXPIRES:
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