2007-26670 ResoRESOLUTION NO. 2007-26670
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF
THE CITY OF MIAMI BEACH, FLORIDA, APPROVING THE
SUBORDINATION AND SETTLEMENT OF CITY LIENS ON THE
REAL PROPERTY LOCATED AT 533 COLLINS AVENUE
(COUNCIL TOWERS), MIAMI BEACH, FLORIDA, RESULTING
FROM SPECIAL MASTER CASE NOS. JB00000604 AND
JB00000605, AND PROVIDING THAT SAID LIENS, IN THE
AMOUNT OF $120,639.98 PLUS INTEREST, BE WAIVED UPON
COMPLETION OF ELEVATOR REPAIRS; AND FURTHER
AUTHORIZING THE CITY MANAGER TO TAKE SUCH
ACTION(S) AN O COMPLETEASUCH LEN RELEASESSAND
DOCUMENTS T
SETTLEMENT.
WHEREAS, the property located at 533 Collins Avenue (Council Towers or the
Property) has accumulated liens, in the amount of $120,639.98, plus interest; and
WHEREAS, in 1999, the Property was cited for two separate elevator violations
and compliance was achieved in 2001; and
WHEREAS, the Property is occupied by senior citizens and provides rent
subsidized housing; and
WHEREAS, any amounts which would be obtained by the City in settlement of
the liens would be relatively insignificant in the scheme of the City's entire budget and
would have the effect of further stressing the financial resources of a senior subsidized
housing complex; and
WHEREAS, the Administration recommends subordinating the City liens to allow
Council Towers to secure financing for elevator repair work and upon the completion of
the repair work to waive the outstanding liens associated with elevator violations at the
Council Tower property at 533 Collins Avenue, Miami Beach, Florida.
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 subordination of City liens and subsequent to
completion of elevator repairs a settlement for the outstanding City liens on the real
property located at 533 Collins Avenue (Council Towers), Miami Beach, Florida,
resulting from Special Master Case Nos. JB00000604 and JB00000605, and providing
that said liens, in the amount of $120,639.98 plus interest, be waived, in full settlement
of these liens; and furtheressahori documentsl~to compeeteo such I'len relelases and
execute any and all nec ry
settlement. ~
PASSED and ADOPTED this 17th day of
A T:
CITY CLERK
Robert Parcher
F:\cmgr\$ALL\BOB\533CollinsAveliensettlementreso.doc
Octbber~_, 2007.
/('Mayor
David Dermer
gPPRO~.~ED AS TO
FORM & LANGUAGE
~ FOR EXECUTION
/D~ y~v
Date
COMMISSION ITEM SUMMARY
Condensed Title:
A Resolution approving the subordination and settlement of City liens at 533 Collins Avenue providing tha
the liens in the amount of $120,639.98 lus interest, be waived.
Ce Intended Outcome Su or<ea:
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
Issue:
Shall the City Commission approve the subordination and settlement of City liens on real property at 53
Collins Avenue?
Item Summa (Recommendation:
Council Towers is a 125 unit multi-family dwelling located at 533 Collins Avenue. to 1999, the facility was
cited for two separate elevator violations and compliance was achieved in 2001. Over the nearly two years
of non-compliance, the elevator violations accumulated to $60,357.49 and $60,282.49 for a total of
$120,639.98.
The Council Towers facility is occupied by senior citizens and provides rent subsidized housing. The
majority of the operating income for the facility is provided indirect subsidy from the Federal Department of
Housing and Urban Development. Each individual tenants rent is a fixed percentage of their gross salary.
As part of the Administration's due diligence, meetings have been conducted with the owner's
representative and their financial statements have also been reviewed. The Administration has confirmed
that any amount of funds which are required to be paid in settlement of the lien might have an adverse
impact on the annual operating budget of the facility particularly as it is applied to facility maintenance.
Normally, the City Administration would recommend a settlement amount for a violation of this nature, in
this specific instance a complete waiver of the outstanding lien amounts is recommended for City
Commission consideration. Subordination of the City lien is recommended first to allow the project
financing to be secured, followed by waiver/release of the liens upon the completion of the scheduled
elevator repair work.
Board Recommendation:
Financial Information:
Source of Amount
Funds: 1
2
3
pgpl Total
Financial Impact Summary:
Clerk's Office Legislative
Si n-Offs:
Department Director
~ MIAMIBEACH
City Manager
Account
City Manager
(AGENDA ITEM
CAE
aAT~ /o / 7-a ~
~_- 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 City Commission
FROM: Jorge M. Gonzalez, City Manager
DATE: October 17, 2007
SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, PROVIDING FOR THE SUBORDINATION OF CITY
LIENS AND FOR THE SETTLEMENT OF CITY LIENS ON REAL PROPERTY
LOCATED AT 533 COLLINS AVENUE (COUNCIL TOWERS), MIAMI BEACH,
FLORIDA, RESULTING FROM SPECIAL MASTER CASE NOS. JB00000604
AND JB00000605, AND PROVIDING THAT SAID LIENS, IN THE AMOUNT OF
$120,639.98 PLUS INTEREST, BE WAIVED UPON COMPLETION OF
ELEVATOR REPAIRS; AND FURTHER AUTHORIZING THE CITY MANAGER
TO TAKE SUC O COMPLETE SUCH LEEN RELEASESNAND SETTLEMENRY
DOCUMENTS T
ADMINISTRATION RECOMMENDATION
Adopt the Resolution.
ANALYSIS
Council Towers is a 125 unit multi-family dwelling located at 533 Collins Avenue. In 1999,
the facility was cited for two separate elevator violations and compliance was achieved in
2001. Over the nearly two years ofnon-compliance, the elevator violations accumulated to
$60,357.49 and $60,282.49 for a total of $120,639.98.
The Council Towers facility is occupied by senior citizens and provides rent subsidized
housing. The majority of the operating income for the facility is provided in direct subsidy
from the Federal Department of Housing and Urban Development. Each individual tenants
rent is a fixed percentage of their gross salary. The facility is owned by a corporation named
the Miami Beach Senior Citizens Housing Development Corporation, Inc. which contracts
with the Elderly Housing Development and Operations Corporation (EHDOC), as the
management entity. The EHDOC is a nationally owned business that manages senior
citizens subsidized housing in approximately fifty different locations across the country.
The request to have a reduced settlement for the outstanding liens on Council Towers was
prompted by an attempt of the building owner to finance certain improvements which would
include the replacement of the elevators that had been cited in 1999. The initial request was
to subordinate the City lien to allow the financing to proceed. Administratively it was
determined that it was more appropriate to simply deal with and dispense with the lien rather
than only subordinate our interest and allow the lien to remain.
As part of the Administration's due diligence, meetings have been conducted with the
owner's representative and their financial statements have also been reviewed. The
Administration has no ~f rht haveaan adve seuimpa ton the alnnua operating budgepofdthe
settlement of the Ile g
facility particularly as it is applied to facility maintenance.
Normally, the City Administration would recommend a settlement amount for a violation of
this nature, in this specific instance a complete waiver of the outstanding lien amounts is
recommended for City Commission consideration. Any amounts which would be obtained
by the City in settlement of the liens would be relatively insignificant in the scheme of the
City's entire budget and would have the effect of further stressing the financial resources of
a senior subsidized housing complex. The ownership corporation is struggling to meet
annual operating maintenance requirements, as well as significant increases in insurance
and other operating expenses being experienced in this market.
In order to allow the elevator repairs to proceed, it is suggested that the City first subordinate
our interest in the lien to a second position. The Council Towers owner will be able to
proceed to secure the elevator financing at that point. Upon completion of the repair work
the City would then waive the lien.
It is recommended that the City Commission approve the attached Resolution which first
subordinates the City interest and then waives the outstanding liens associated with elevator
violations at the Council Towers property at 533 Collins Avenue.
JMG\RCM\sam
F:\cmgr\$ALL\BOB\533CollinsAveliensettlementcommemo.doc
2