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HomeMy WebLinkAboutDocumentation_Regular_Tab 20_11/12/2015 0 � CORQETT WH , ITE, �� DAV[S nNl� ASHTON, ��n. KEITH W. DAVIS ATTORNEY AT LAW 6o�zrd Certified in Citf, Comrh� nnd Locnl Goz>ernutei�f Lazv MEMORANDUM TO: Mayor Brennan, Vice Mayor Arena, Council Members D'Ambra, Okun and Paterno CC: Manager Couzzo�;'�le.�k McWiiliams, FROM: Attorney Davis �; �, ; DATE: November 3, 2015' RE: Agenda item — Settlement of Village Square Code Compiiance Matters The following describes in detail the above referenced agenda item: The Village currently has one code compliance lien recorded against the above property for a closed case from several years ago, the lien amount is approximately $56,000.00. In addition, the Village has one code compliance lien recorded against the above property for a case with open violations, the lien began accruing at the rate of $150.00 per day in July. By the close of the calendar year, the approximate dollar amount of both liens combined will be $80,000.00. The Respondent has expressed a desire to bring the entire property into compliance with all Village code requirements. The Respondent has indicated that the existence of the above liens prohibits them from obtaining financing to pay for the work necessary to do so, and make other tenant related improvements. In an effort to eliminate this situation, the Respondent has agreed to the terms of the Joint Stipulation, which in essence provide the following: 1. Respondent will post a surety in the amount of $80,000.00 in favor of the Village. 2. The Village will release its liens upon receipt of said surety. 3. The Respondent will bring its property into complete compliance with all outstanding code issues to the satisfaction of the Code Compliance Officer by December 31, 2015 (with a provision that as long as Respondent works diligently from the execution of the agreement continually through obtaining complete compliance, if unforeseen circumstances delay completion through no fault of Respondent, the deadline can go to January 31). 4. The Respondent will pay the Village $10,000.00 in fines. 5. If the Respondent fails to meet the above conditions, the Village has the right to take the entire $80,000.00 surety with no further process or hearing. In addition, upon default by the Respondent, the Village may, at its option, enter the property and obtain compliance with the surety funds. 6. Finally, the Village will also have the right to file new code compliance cases for any outstanding violations upon default by the Respondent. As discussed at the Council workshop, this is a much preferred course of action over foreclosing on liens, since, as explained, courts notoriously reduce the lien values by large percentages; the litigation process is lengthy and expensive; and it does not result in the desired end result of code compliance. JOINT CODE COMPLIANCE STIPULATION VILLAGE OF TEQUESTA, FLORIDA VILLAG� OF TEQUESTA, Petitioner, Case Nos. 2015-40021 vs• 2015-00173 2010-00109 TEQUESTA INVESTORS, LP, Respondent. J RE: V iolation of Sections 14-152, ] 4153, 14-1 SA, 14-155, 30-336, 50-213, 70-44, 78-177, 78-399, 7$-410, 78-700, 78-701, and 78-745 of the Code of Ordinances of the Viliage of Tequesta. Address: 221 U.S. Highway l Tequesta, Florida 33469 (Tequesta Square) Legal Description: WATERWAY VILLAGE LOT A PCN: 60-43-40-30-OS-000-0901 This Joint Cade Compliance Stipulation is entered into by the Village of Tequesta (hereinafter the "Village"), and Tequesta Investors, LP (hereinafter "Respondent") in order to resolve the Code Compliance cases identified above in a fair and amicable manner. The Village and Respondent hereby agree and stipulate as follows: � l. On April 23, 2015, RespondenYs above referenced property was found to be in violation of the above referenced Village codes (Orders Finding Violation). Respondent was given until October 2l, 2015 to comply with the violations found to exist in Case No. 2015-00173, or statutory penalti�s for failure to obtain valid business tax receipts would be assessed. Respondent was given until July 22, 2015 to comply with the violations found to exist in Case No. 2015-00021. On July 23, 2015, the violations in Case No. 2015-00021 had not been cured and a daily fine of $150.00 per day was assessed against the property, to accrue daily until compliance is achieved. Respondent was also assessed administrative costs of $231.46 (Order Assessing Fine). 2. Although some items have been corrected (most notably the electrical issues iltat were deemed to be a threat to the public health, safety and welfare), others have not. Specifical[y, the following violations (some of which Respond�nt advises that it has addressed, but are still subject to the Village's inspection and approval) remain on the subject property at this time: a. Parking lot must be sealed and restriped; b. Landscaping work recently completed at the front of the site will either need to be permitted, or will need to be returned back to original condition (prior to rocks being installed). Rear landscape buffer (located on the west side of the rear fence(wall) shall be mulched after completion of parking }ot seal and stripe. To the extent Respondent slects to return the property back to original condition (prior to rocks being instal(ed), the Village agrees that no peimit shall be required; c:. Trip hazards along front sidewalk must be repaired. However, the Village agrees that the trip hazards ar� a maintenance issue and, therefore, na permit shall be required for such Page 1 of 3 repairs; d. Tenant Hog Snappers Restaurant's grease trap will be maintained in accordance with applicable state, cpunty and Village codes; �. T�nant 3 Natives' Business Tax Receipt requirEment (including parking, access and accessibility issues) wili be complied with. 3. In addition to the above, the subject properiy has a lien recorded against it for previous code compliance case 2010-00109. The total lien amount being $56,550.00. 4. Respondent has asserted that it desires to bring all cunrent violations into compliance as soon as possible and requests an on-sits meeting with the appropriate representatives of tl�e Village for �urther clarification on such violations; however, the existence of the code compliance lien for Case No. 2010-00109 (recorded at Official Records Book 24312 Page 1683) prevents R�spondent from obtaining financing to pay for the required improvements. Typically, the Village will not release a lien prior to the property being brought into compliance and the debt being satisfied. In order to eliminate this "Catch 22" situation, the parties have agreed to the following ternis and conditions which will settle all outstanding code compliance matters on the subject property: a. Respondent shall post a surety, in a form satisfactory to the Vitlage Attorney, with the Village in the amount of $80,000, representing the approximate full value of the Vitlage's lien against the subject property from Case No. 2010-OQ 109, plus the approximate value of the lien against the subject property from Case No. 2015-0002 i through December 31, 2015. Said surety shall be posted within ten business days of the execution of this Settlement Agreennent. In the event that Respondent fails to comply with the remaining terms of this SEttlement Agreement, the Village shall be entitled, without further hearing of other process of any kind whatsoever, to retain forever the full value of the surety ($80,000.00). Notkvithstanding the foregoing, prior to the Village accessing any amounts from the surety, the Village will provide the Respondent with prior written notice that details with reasonable specificity Respondent's non-compliance. It is Respondent's understanding that any amounts recovered by the Village under the surety may first be utilized by the Village towards correcting all remaining outstanding code violations; with the Village retaining the remainder. To the extent this should occur, Respondent hereby grants the Village permission to enter and rernain upon its property and to do all things necessary to complete such work, at the Village's sole discretion. Upon receipt of said surety, the Village shall release the lien from Case No. 2010-00109, as well as any lien recorded against the subject property from Case No. 20 1 5-0002 1. b. Respondent shall bring the subject property into complete compliance with all Village codes as specified in Section 2. of this Settlement Agreement no later than Decerrtber 31, ZQ15. However, if Respondent diligentty commences to cure such cod� violations immediately, and continues without pause or delay to use its diligent good faith efforts at all times to cure all outstanding code violations, but nevertheless has not completely cured all outstanding code violations on Decerr►ber 31, 2015, Respondent will have up to an additional thirty (30) days to complete the work in progress to cure all outstanding code violations. The Code Compliance Officer's detennination regarding compliance, and regarding the use of diligent good faith efforts, shall be binding and final for purposes of this Settlement Agreement. ' c. Respondent shall pay the Viflage $10,000.00 no later than December 31, 2015, which the Vil(age shall retain as full payment and settlement of a11 outstanding liens, fines, and administrative costs for all outstanding code compliance cases (2010-00109, 2015-00021 and ZO l5 00173) against the subject property. Page 2 of 3 d. Upon achieving complete compliance with all Village codes as specified in Section 2. of this Settlement Agreement, and payment to the Village of $10,000.00 as specified in Section 4.d. of this Settlement Agreement, the Village shall execute an Affidavit of Compliance, and shall issue a Letter of Release to release the Surety Bond. This Letter of Release shall be issned within seven (7} days of the first day of compliance. r. Should Respondent fail to bring the subject property into complete compliance with all Village codes as specified in Section 2. of this Settlement Agreement no later than December 31, 2015, and/or fail to pay the Village $10,000.00 as specified in Section 4.d. of this Settlement Agreement no later than December 31, 2015, subject to the potential thirty (30) day extension contemplated by Section 4.c, above, in addition to retaining the full value of the surety as stated in part 4.a. above, the Village may institute a new code compliance case against the subject property for any and all code violations r�maining on the subject properiy. The Code Compliance Officer's determii�ation regat•ding compliance shall be binding and final for purposes ofthis Settlement Agreement. This Joint Code Compliance Stipulation is hereby executed this �-,' �<i day of , 2415, by the following parties: TEQUESTA INVESTORS, LP: �; , , ;; , ; ,� , General Partner " 1 -- ; THE VILLAGE OF TEQUESTA: Keith W. Davis, Village Attorney CODE COMPLIANCE SPECIAL MAGISTRATE BY: Kevin Wagner, Special Magistrate f Page 3 of 3