Agenda 05/11/2010 Item #16K 5Agenda Item No. 16K5
May 11, 2010
Page 1 of 3
EXECUTIVE SUMMARY
Recommendation to approve a letter agreement with the FDIC, acting as Receiver for
Florida Community Bank, to pay the County's $200,613.87 in operational and demolition
costs of the Bayshore Club, also known as the Arboretum Property, in exchange for waiver
of in excess of $1,000,000 in fines and release of all code liens.
OBJECTIVE: To obtain Board approval of an offer from the FDIC to pay the County's
$200,613.87 in operational and demolition costs of the Bayshore Club, also known as the
Arboretum Property, in exchange for waiver of in excess of $ I ,000,000 in fines and release of all
code liens.
CONSIDERATIONS: The property commonly known as the Bayshore Club, located at the
northwest corner of Bayshore Drive and Thomasson Avenue, is in significant Code violation,
and has been ordered to be demolished. The property is also the subj ect of two separate and
highly contentious foreclosure proceedings. Code violation fines continue to accrue, with the
present fines exceeding $ I ,000,000.
The property poses a public significant health and safety threat and needs to be dcmolished. The
cost to the County to demolish the property is $199,590.80.
Given the pending foreclosure litigations the County wanted assurance that if it demolished the
property its costs would be repaid. In furtherance of such, we have negotiated a letter agreement
with the FDIC, which is acting as the receiver for the Florida Community Bank, which holds the
primary mortgage, The FDIC has agreed to reimburse the County for the costs of demolition
plus repay the County's operational costs in exchange for a release of the code liens. Once the
property is demolished, the code violations will cease.
As an aside, there is a $100 error in the proposed letter agreement. This is being corrected and a
substitute letter agreement will be delivered to the Board.
FISCAL IMPACT: Because approval of this letter agreement involves a commitment to waive
over $ I ,000,000 in accrued fines, upon complete performance of the letter agreement, these
accrued penalties would be eliminated. The agreed payment amount will reimburse the County
for all of its out-of-pocket costs.
GROWTH MANAGEMENT IMPACT: None.
LEGAL CONSIDERATIONS: This item is legally sufficient for Board action. -JAK
RECOMMENDATION: That the Board approves and authorizes the Chairman to sign the
attached letter agreement with the FDIC.
PREPARED BY: Jeffrey A. Klatzkow, County Attorney
Agenda Item No. 16K5
May 11, 2010
Page 2 of 3
COLLIER COUNTY
BOARD OF COUNTY COMMISSIONERS
Item Number:
Item Summary:
16K5
Meeting Date:
Recommendation to approve a letter agreement with the FDIC, acting as Receiver for Florida
Community Bank, to pay the Countys $200,613.87 in operational and demolition costs of the
Bayshore Club, also known as the Arboretum Property, in exchange for waiver of in excess
of $1 ,000,000 in fines and release of all code liens.
5/11/20109:00:00 AM
Prepared By
Jeff Wright
Assistant County Attorney
Date
County Attorney
County Attorney
5/5/2010 11:09:25AM
Approved By
Jeff Klatzkow
County Attorney
Date
5/5/201011:53 AM
Approved By
Leo E. Ochs, Jr.
County Manager
Date
County Managers Office
County Managers Office
5/5/201012:42 PM
FDICi
Agenda Item No. 16K5
May 11, 2010
Page 3 of 3
Federal Deposit Insurance Corporation
1261 Homestead Road, Ste 201, Lehigh Acres, FL 33936-B088
As Receiver for Flonda Community Bank, immokalee, Flonda
Diane Flagg, Director
Collier County Code Enforcement
Collier County, Florida
May 4, 2010
Re: Collier County Code Enforcement
Special Magistrate Orders issued in
Case Nos: CEAU-2009-0003065
CEPM-2009-00o3069
Dear Ms. Flagg,
Please be advised that Sam C. Hill, III is the attorney-in-fact for the FDIC as Receiver (the "Receiver") of Florida
Community Bank, Immokalee, Florida (the "Receiversbip") and is duly authorized to act on bebalf of the Receiver.
Tbe Receiversbip balds mortgages whicb encumber the real properties (the "Arboretum Properties") which are the
subject matter of the referenced orders (the "Orders").
Mr. Hill bas the power to autborize and bas authorized payment by the Receiver to Collier County, Florida ("tbe
County") of the sum of $199,590.80 for reimbursement (the "Reimbursement") of certain demolition work (tbe
"Work") to be undertaken by the County wbicb would completely abate the violations described in tbe referenced
orders.
The County bas agreed to undertake the Work and to complete it, and upon its completion. the County shall issue
to the Receiver an Affidavit of Compliance indicating that all violations cited in the Orders bave been completely
abated. Upon the issuance of the Affidavit of Compliance and upon tbe payment by the Receiver to the County of
the sum of $200,513.87, wbicb represents the sum of $199,590.80 for Reimbursement for the Work and for
$1,023.07 for operational costs, the Collier County Department of Code Enforcement shall petition the Collier
County Board of Corrunissioners to have the fines described in the Orders to be rescinded, leaving the Arboretum
Properties free of any liens arising in connection wi th the Wark.
If this proposal meets with the approval of the Collier County, Florida Department of Code Enforcement, and the
Board of County Commissioners, please signify such approval by the signature below of a person authorized to act
on behalf of Collier County, Florida.
The FDIC as Receiver
for Florida Community Bank,
Immokalee, Florida
By: sam~~in-Fact
Approved by the Board of County Commissioners, Cot her County, Florida
DATED: BOARD OF COUNTY COMMISSIONERS
ATTEST: COLLIER COUNTY, FLORIDA
DWIGHT E. BROCK, CLERK
By:
, Deputy Clerk
FRED W. COYLE, Cbairman