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LTC 421-2020 Deauville Beach Resort, 6701 Collins Avenue - UpdateMIAMI ACH City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florido 33139, www.miomibeochfl.gov LETTER TO COMMISSION LTC No. 421-2020 TO: Mayor Dan Gelber and Members of the City Commission FROM: Jimmy L. Morales, City Manager� Raul J. Aguila, City At�V u DATE: November 24, 2020 SUBJECT: Deauville Beach Resort, 6701 Collins Avenue -Update The purpose of this Letter to Commission is to provide an update on the City's pending litigation regarding the Deauville Beach Resort ("Deauville"), as well as recent violations issued by the City. These actions are consistent with the City Commission's direction at its meeting on November 18, 2020, to prevent demolition by neglect, and ensure that the owner undertakes corrective action to secure the property. Specifically, on November 18th , the City Commission adopted Resolution No. 2020-31509, reaffirming the City's commitment to safeguard the Deauville, which is a contributing building within the North Beach Resort Local Historic District; directing the City Manager and City Attorney to investigate and pursue any and all additional enforcement and legal remedies with regard to the Deauville, in order to fulfill the City Commission's mandate that the litigation be prosecuted to the fullest extent possible; and directing the Building Director and Code Compliance Director, in consultation with the City Attorney, to identify any outstanding City Code and Florida Building Code violations, and pursue any and all remedies available under applicable law, in order to secure the property, protect the historic Deauville Beach Resort building, and mitigate any public nuisances on the property. The following summary has been provided to update the City Commission on actions taken by the Building, Code Compliance, and Fire Departments, as well as the City Attorney's Office. Building Department After many months of extensions, and in anticip ation of progress towards essential building repairs and recertification of the structural and electrical elements of the building, the City of Miami Beach Building Department presented its case to the Miami-Dade L e tt e r to C o mm is si on - D e a u vi lle B e a c h R e s o rt, 6 7 0 1 C o lli n s A v en u e - U p d a te N o v e m b e r 2 4 , 2 0 2 0 P a g e 2 County Unsafe Structures Board in October 2018. Following a hearing on December 12, 2018, the Unsafe Structures Board upheld the Building Official's recommendation and required permits to be obtained for temporary power, repairs to the structure and submission of the 40-year recertification package. Additional history on measures taken by the Building Department is as follows: • The 40-year recertification report was due on April 28, 2017 ( 40YR1700676). o Extensions were requested by the property owner; o No action was taken by the property owner to submit a signed and sealed report certifying the structure and electrical system; and o The City referred the open violation and lack of compliance to the Unsafe Structures Board in October 2018, and a hearing was held on December 12, 2018. • An electrical fire forced an evacuation of the building on July 25, 2017. o The permit for replacement of the damaged items was: ■Applied for on October 13, 2017; ■Issued on April 2, 2018; and ■Finalized without energizing on July 6, 2018. • FPL vault issue. o The Building Official, representatives from the Deauville and FPL attended a meeting on June 7, 2018. o The property owner failed to take any action to obtain a permit for temporary power. • The Building Official proceeded to seek enforcement by the Unsafe Structures Board, and the Board ordered the following: o The structure(s) are to be maintained secure, clean and sanitary, free of debris, overgrown grass or weeds and free of discoloration or graffiti; o A temporary electrical power permit must be applied for within thirty (30) days of the date of the ruling. The building permit(s) to repair windows and for concrete spalling must be applied for within sixty (60) days after obtaining the L e tt e r to C om m is si on - D e a u vi lle B e a c h R e s o rt, 6 7 0 1 C o llin s A v en u e - Up d a te N o v e m b e r 24, 2020 Page 3 temporary electrical permit, with the understanding that no work can be performed until the temporary power permit is issued; and to obtain the temporary power and work on obtaining the permits to repair the windows and the permit for concrete restoration, with the understanding that no work can commence until the temporary electrical permit is issued; and o A 40-Year Recertification Report shall be submitted, within one hundred twenty (120) days from obtaining the temporary electrical permit, to the City of Miami Beach Building Official as required in standard form signed and sealed by a structural and electrical engineer. • Prior to November 18, 2020, the open unsafe structural violations on the property are as follows: o US2017-01686. This violation was issued on July 25, 2017 for the overheated and burned bust duct exiting the FPL vault. Power had been disconnected by FPL. The Deauville was required to submit an engineer report signed and sealed by electrical engineer to evaluate the cause of the fire, the extent of the damages and methods of repairs. Additionally, the Deauville needed to obtain an approved permit for the required repairs and an approved final inspection to reconnect the power in the building. o US2018-02859. This violation was issued on October 26, 2018 for the 40-year recertification process (40YR1700676) not being in compliance with the Florida Building Code and Miami-Dade County Chapter 8-5 (6), as the property is deemed unsafe if a 40-year recertification report is not completed. Deauville was required to complete the 40-year recertification within thirty calendar days from the posting of the notice of violation. Deauville failed to do so and a $500 penalty was assessed. o US2020-03373. This violation was issued on February 26, 2020 for a structural failure of the rear area of the structure adjacent to the beach walk as there was evidence of concrete pieces on the beach walk and surrounding areas. The Deauville was required to provide pedestrian overhead protection in compliance with Chapter 33 of the Florida Building Code. The beach walk was to remain closed until such time as proper protections were implemented. ■The beach walk was closed on February 27, 2020 and reopened on March 27, 2020. ■120' of scaffolding was added to the beach walk on March 26, 2020 and remained until May 21, 2020. ■The Deauville pulled a permit to install debris netting on the east façade of the Deauville Tower and completed installation on May 12, 2020. L e tt e r to C om m is si on - D e a u vi ll e B e a c h R e s o r t, 6 7 0 1 C o llin s A v en u e - U p d a te N o v e m b e r 24, 2020 Page 4 • O n Novem ber 19, 2020, the Building Department issued a new violation, BVB20000705, to the Deauville fo r its failure to com ply with the Miami-Dade County Unsafe Structures Board Order in connection wi th US2018-02859 and a Stop W ork Order fo r all unauthorized w ork being perform ed. All perm its have been locked by the Building Official. Com pliance w ith the Unsafe Structures Board O rder is required in order for any w ork to continue. In the event of non-compliance, this violation w ill be referred to the Special Master for further pro ceedings in accordance w ith Chapter 30 of the City Code. Code Compliance Department • A total of thirty-nine (39) violations have been issued to the Deauville: o Pro perty M aintenance violations (pursuant to Chapter 58 of the City Code): all of these have been cured. o S anitation violations (pursuant to Chapter 90 of the City Code): all of these violations have been cured. o Zoning violations (pursuant to Section 138-140 of the City Code - vacant storefr ont coverings): all of these violations have been cured. o Noise violation fo r a generator (Section 46-152 of the City Code): ■The generators are no longer operating. ■Fines are ow ed to the City in the am ount of $26,250.00. o On Novem ber 20, 2020, the Code Compliance Departm ent issued violation ZV2020-03121 for a violation of Section 118-532(g ) of the City Code for the Deauville's continued failure to prevent dem olition by neglect. The Deauville has ten (1 O) days to com ply. In the event of non-compliance, this m atter will be referred to the Special Master, and the City w ill request the m aximum daily fine of $5,000 per day. Fire Department C urrently pending befo re the Special M aster is an open fire violation. The Deauville is not in com pliance, and the next scheduled hearing is on December 17, 2020. A lien has been recorded against the pro perty, and fines to date are in excess of $252,000. L e tt e r to C o m m is si on - D e a u vi lle B e a c h R e so rt, 6 7 0 1 C o llin s A ven u e - U p d a te N o v e m b e r 2 4 , 2 0 2 0 P a g e 5 Office of the City Attorney In connection with the pending litigation, on November 19, 2020, the City Attorney's Office contacted the Judge's Judicial Assistant to schedule a hearing on the City's pending Renewed Motion for Appointment of Receiver, Motion for Temporary Injunction, Motion for Compliance with prior Court Orders, and Motion for Sanctions. The City Attorney's office obtained an expedited preliminary hearing (which took place this morning), and recognizing the Deauville's failure to comply with the prior court orders in this matter, the Circuit Court Judge scheduled a hearing on December 3, 2020 to address the City's Motion to Compel and Motion for Sanctions. Pursuant to the City Commission's direction on November 18, 2020, the City Attorney has scheduled individual briefings with each member of the City Commission to provide an update on the litigation. Please do not hesitate to contact either the City Manager or City Attorney if you have any questions. JLM/RJA/AB/SHR/ag