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HomeMy WebLinkAboutMinutes_Special Meeting_02/28/2005VILLAGE OF TEQUESTA • SPECIAL VILLAGE COUNCIL MEETING MINUTES FEBRUARY 28, 2005 I. Call to Order and Roll Call The Tequesta Village Council held a Village Council Special Meeting at the Emergency Operations Center (EOC) at the Public Safety Facility, 357 Tequesta Drive, Tequesta, Florida, on Monday, February 28, 2005. Village Manager Couzzo telephoned Vice Mayor Genco at her hotel in Arizona. He mentioned to her, he was conferencing her in for the Special Council Meeting. The meeting was called to order at 11:16 a.m. A roll call was taken by Gwen Carlisle, Village Clerk. Council Members present were: Mayor Pat Watkins, Vice Mayor Geraldine A. Genco, Council Member Edward D. Resnik, Council Member Russell J. von Frank, and Council Member Jim Humpage. Also in attendance were: Village Attorney Scott Hawkins, Attorney Peter Lichtman, Attorney Scott McMullen, Village Manager Michael R. Couzzo, Jr., and Village Clerk Gwen Carlisle, and incoming Council Member Tom Paterno. II. APPROVAL OF AGENDA • MOTION: Councilmember von Frank moved to approve the agenda; seconded by Council Member Humpage, motion passed 5-0. 1) DISCUSSION AND POSSIBLE ACTION REGARDING THE VILLAGE OF TEQUESTA VS HATTIE SIEGEL LITIGATION -Case No. 02-5834AB. Mayor Watkins stated she would like to pass the gavel to Vice Mayor Genco so she could propose a motion. Consensus of Council had no objections to Mayor Watkins passing the gavel. MOTION: Mayor Watkins moved to accept the proposal from Silver Fidelity Trust to acquire the judgment and lien for $300,000.00, closing on March 1, 2005, and authorizing the Village Manager to undertake all steps necessary to facilitate that action, and to work with and assist the owner Ms. Siegel, and to facilitate any actions related to this transaction; seconded by Council Member von Frank. Vice Mayor Genco indicated the only discussion she had was that a decision was made to adjoin these properties for the purpose of the foreclosure, and that Council did not participate in that position, and the reason we are making the decision now was to sell the four pieces as a whole. • • VILLAGE COUNCIL SPECIAL MEETING MINUTES February 28, 2005 Page 2 Attorney Hawkins stated it was always his understanding that the foreclosure action was to be initiated against all the properties encumbered by the Village of Tequesta lien, en masse. Vice Mayor Genco questioned when was that decided by Council. Attorney Hawkins indicated when he took over the litigation, that was the way the litigation was set up. He noted when he inquired about it he understood that was the Village's position. Vice Mayor Genco stated she did not ever recollect that was brought to their attention, and stated whether that was in error it was not brought to their attention was one thing, but noted it was the situation the Village was in right now, so regardless that was what happened. Mayor Watkins asked if there was any further discussion by Council. Public Comment - Mr. Brent Henderson, resident of 169`" Court North, Jupiter questioned whether the Village was foreclosing on all the Siegel properties in Palm Beach County. Mayor Watkins responded in the affirmative. Mr. Henderson asked what the amount of the judgment was at this time. Mayor Watkins indicated the amount was $1.7 million. Attorney Hawkins indicated it was $1.7 million plus more. Mr. Henderson commented all the properties were not worth that much, and felt that was the most the Village could receive. He asked what would the Village take to be done with this, and have her yard • cleaned and maintained. He stated he did not know anything about this, until two days ago. He commented he had known of her for a yeaz, because she had a property next door to a business partner of his out in the Farms. He noted he had always used her property, and he called her the other day, and Ms. Siegel mentioned the Village was going to take her property, and that she had a million dollazs in liens to pay. He mentioned he had never met her before, and he drove by her house, and remembered he had read about her property in the paper. He commented if Ms. Siegel had mentioned the situation to him in 1999, he would have taken care of her yard forever, for the piece of property next to his. He noted now it was beyond that. He felt the property next to his was not worth that much because the State owned everything azound it. He mentioned it was only worth something to someone if they owned the property next to it, and the County was paying $20,000.00 acre azound it. He asked whether there was a number, and if the Village would take $10,000.00 and make sure the yazd was cleaned for the rest of her living life on that property, and be done with it. Mayor Watkins indicated the motion the Council was entertaining was an offer from a potential buyer to acquire the Village's judgment and lien for $300,000.00, and for him to negotiate the sale of the properties. Mr. Henderson stated it was not going to go to foreclosure then, and that basically he was buying the lien from the Village for $300,000.00. Mayor Watkins responded in the affirmative. Attorney Hawkins stated he did not know, but assumed the buyer would take it to foreclosure on March 3, 2005. Mr. Henderson stated he would pay the Village $325,000.00 for the Judgment, and stated that • was a ridiculous price. Mayor Watkins questioned whether the Village could enter into negotiations. Vice Mayor Genco asked whether Council could take this motion off the • VILLAGE COUNCIL SPECIAL MEETING MINUTES February 28, 2005 Page 3 table and go to auction. Attorney Hawkins indicated Council could reject the motion, and proceed. He noted there was a motion, which had been seconded, and Council was in discussion. He commented if the motion was defeated, then Council could entertain a second motion. Council Member von Frank questioned if the motion was to be defeated could Council bring it back again for a vote. Attorney Hawkins responded in the affirmative. Council Member Resnik mentioned if this gentleman were to buy the lien for $325,000.00 the check would need to be in the Village's hands by tomorrow. Mr. Henderson indicated he had no way to get a check in the amount of $325,000.00 by tomorrow. Mr. Tom Paterno, resident of River Drive and incoming Council Member noted if Council were to defeat the motion and take up his offer, it would need to be done in such a way that he has to come up with the money very quickly, instantaneously, with a Cashier's check. He explained that he was just mentioning that otherwise Council could end up going to March 3, 2005. Attorney Hawkins agreed that was a good point. He noted at the foreclosure sale on Thursday, March 3, which would be like an auction, the successful buyer would be required to deliver by the close of the business day cleared funds to cover the price. He asked Attorney McMullen if that was correct. Attorney • McMullen noted they would have to put a deposit up at the sale and would have to come up with the money in a very short period of time. Attorney Hawkins commented it was a very meaningful deposit. Mr. Henderson questioned whether they would have to come up with a full deposit on each individual property. Attorney Hawkins responded in the affirmative, and explained on the one sale price. He noted there would be one sale price on March 3, 2005, covering four parcels. Mayor Watkins questioned whether the Village would be under the obligation to hold some type of public auction. She indicated if this gentleman wanted to make an offer, maybe someone else would want to offer the Village a price, also. Attorney Hawkins indicated that was what would occur on March 3, 2005. Mr. Henderson indicated Council would know on Thursday that they would have a minimum price of $325,000.00, and that the public would probably go higher because there would be other people, besides himself, and Silver Fidelity Investments interested. Vice Mayor Genco suggested that the person who made the motion on the floor withdraw it. Mayor Watkins pointed out the Village has been in negotiations over the last two meetings on whether or not to accept a motion or the proposal. She noted the Council came to an agreement at the Attorney Client session to accept the $300,000.00 and have the funds by close of tomorrow. She stated she was of the opinion to hold to the proposal, and did not want to pursue any further. She felt this could lead to a fire sale, and was not in favor of that. Council Member Resnik mentioned the firm (Silver Fidelity Investments) • that was buying the judgment and lien would be at the auction/sale and they would be the ones accepting offers from the bidders. • VILLAGE COUNCIL SPECIAL MEETING MINUTES February 28, 2005 Page 4 Council Member Resnik felt it would be no different whether Council was there or Silver Fidelity was there, noting everyone would still have the opportunity to bid on March 3 for the package. Attorney Hawkins noted Mr. Henderson did not make a bid, that he only asked a question. Mr. Henderson indicated he would make a bid as long as he did not have to have the money by the end of the business day today, and noted by the end of the day March 3, was fine. Attorney Peter Lichtman commented on behalf of the Village. He noted the purpose of the previous Executive session, and this current public session was to deal with the pending litigation in an effort to resolve it. He indicated as part of the discussions it was decided that this motion would be made. He explained Council has a motion to resolve this issue for $300,000.00 at which time the Village tomorrow would receive the payment, and give up its rights, and assign its lien rights to a third entity. He pointed out if Council were not to follow this motion today, he stated Council could not engage in the process of bidding to solve this matter, other than where you would public notice and have the auction, which the Village was already set for anyway. He mentioned by avoiding the auction and waiting the few days was so that the Village could resolve this matter before the issues of homestead or intervention by other parties came up. He stated the real issue was does the Council want to accept the $300,000.00 offer and be done, or • eject that and allow it to take its course at public auction. He felt even though the citizen in attendance that made the generous offer could not bid in this forum, and has to wait to the public auction. Mr. Henderson questioned whether Hattie Siegel had ever had legal representation in a meeting at the Village. Attorney Hawkins indicated she has had several orders. Mayor Watkins pointed out this has been going on for about 15 years, and the Village has worked hard with her to negotiate throughout this process. She mentioned this motion was addressing the purchase of the judgment and lien. She mentioned when Thursday comes, the auction, people are going to go there and bid actually to purchase the property as two separate money items. Attorney Hawkins explained what is going to happen is there will be a foreclosure sale, this property will be called for sale, and the people will be gathered. He noted when it is called for sale people will bid as they deem appropriate. The Village of Tequesta will have the capacity to credit bid, which means it can bid up to the full amount of its judgment. He indicated this means the Village can bid up to over $1.7 million dollars, because the amount of its judgment is worth over that, and the Village can credit bid without having to lay out any cash, because the Village's judgment is the equivalent of money. Council Member Resnik felt anybody who buys the lien from the Village has the same authority. Attorney Hawkins stated that was correct. Vice Mayor Genco indicated Council really had not changed anything as far as the property goes, cleaning up the property or anything else, and that Council had just assigned the lien to somebody else. Mayor Watkins indicated that was correct. Mr. Henderson commented • then it would be up to someone else to try and get an attorney to get her out of the house. • VILLAGE COUNCIL SPECIAL MEETING MINUTES February 28, 2005 Page 5 Attorney Hawkins indicated that was correct. He stated they would have to get a Writ of possession or negotiate a resolution with her. Mr. Henderson commented that could be a long process. Attorney Hawkins mentioned that would be taken over by the new titleholder as opposed to the Village. Mayor Watkins mentioned there was a motion, and second on the floor, and asked if there was any further discussion to the motion. Council Member von Frank stated he was withdrawing his second. Mayor Watkins indicated she was not withdrawing her motion, and asked whether there was another second. Council Member Humpage stated he would second the motion. Mayor Watkins asked if there was any other discussion on the motion. Vice Mayor Genco questioned whether Council should take a ballot vote. Mayor Watkins stated she would take a roll call vote as the motion stands. Mayor Watkins called for all in favor. Mayor Watkins -Aye. Village Clerk Carlisle called for the vote: • Council Member von Frank - No Council Member Humpage -Aye Council Member Resnik -Aye Vice Mayor Genco - No Motion passes 3-2. (Vice Mayor Genco and Council Member von Frank dissenting) MOTION: Council Member Resnik moved to adjourn the Special Meeting; seconded by Council Member Humpage, motion passed S-0. The Meeting was adjourned at 11:35 A.M. t~~'1 Village Clerk Gwen Carlisle •