Agenda 02/11/2020 Item #16B 2 (CRAB Settlement Agreement)02/11/2020
EXECUTIVE SUMMARY
Recommendation that the Board of County Commissioners, acting as the Community
Redevelopment Agency Board, approve and authorize the Chair to execute a settlement agreement
in the lawsuits styled Bayshore-Marco Island, LLC v. CRA (Case No. 18-CA-3850), Naples Funding,
LLC v. CRA (Case No. 18-CA-3853), and Lendequity, LLC v. CRA (Case No. 18-CA-3857) for
payment by Plaintiffs of $360,000 and homes built on all lots in 5 phases over the next 36 months.
OBJECTIVE: That the Board of County Commissioners, acting as the Community Redevelopment
Agency Board (CRAB), approve and authorize the Chair to execute a settlement agreement in the
lawsuits styled Bayshore-Marco Island, LLC v. CRA, Naples Funding, LLC v. CRA, and Lendequity, LLC
v. CRA to resolve the litigation and move forward on ensuring the construction of single -family homes in
the Bayshore Gateway Triangle Community Redevelopment Area (BGTCRA).
CONSIDERATIONS:
Background
In 2000, the Bayshore CRA commenced a Neighborhood Focus Initiative to acquire and demolish
substandard housing from willing sellers, and have single-family homes built on the acquired properties.
This program eventually led to the purchase of 18 lots by Love and Legacy LLC for a net price of
$14,167 per lot, which was below fair market value. The deeds contained a reverter clause which
required the construction of single-family homes on each lot within two years of purchase.
Love and Legacy LLC finished construction on three homes, shortly after the deadline. Love and Legacy
experienced financial difficulty, and on October 1, 2016, Plaintiff Naples Funding LLC took an
assignment of a mortgage on the remaining fifteen lots. On April 4, 2017, Love and Legacy LLC sold six
of the fifteen lots to Plaintiff Lendequity, LLC. In 2018, Love and Legacy, executed a deed in lieu of
foreclosure to Plaintiff Bayshore-Marco Island, LLC on the remaining nine of the fifteen lots. No
additional homes have since been built.
At the December 11, 2018 meeting, the Board of County Commissioners, acting as the Community
Redevelopment Agency Board, authorized the County Attorney’s office to take all action necessary to
clear title on three developed parcels and, if necessary, file a Quiet Title action on fifteen lots, previously
owned by Love and Legacy LLC. Several days after the December 2018 meeting the Plaintiffs filed three
legal actions, in attempt to also quiet title on the fifteen lots.
In the three actions the Plaintiffs allege that Love and Legacy LLC did not inform them of the reverter
clauses on the fifteen lots and, after it was discovered, it was their understanding that the reverter clauses
would not be enforced if they moved forward on the construction of the homes.
The Settlement Proposal
After a year of litigation, a tentative settlement has been reached. The Plaintiffs agree to pay an
additional $24,000.00 for each of the 15 parcels, for a total of $360,000. Plaintiffs further agree to a
timeline with specific deadlines to monitor progress, penalties for missed deadlines, and to have the
construction of the single-family homes completed in 5 phases within the next 36 months. The homes
must also contain certain aesthetics and the time to construct may only be extended under limited
conditions.
Both the CRA Director and County Attorney support the agreement as this timely level of construction
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would rapidly add to the revitalization occurring in the area and provide an increased tax basis on the
properties.
FISCAL IMPACT: The CRA will receive an additional $360,000 for the fifteen lots and the County
will begin to receive additional property taxes as the homes are completed.
GROWTH MANAGEMENT IMPACT: This project meets the current Growth Management Plan and
is consistent with the amended Community Redevelopment Plan adopted by Resolution 2019-75 that
includes Neighborhood Focus Initiatives.
LEGAL CONSIDERATIONS: This item is approved for form and legality and requires a majority vote
for approval. -KLN
RECOMMENDATION: That the Board of County Commissioners, acting as the Community
Redevelopment Agency Board (CRAB), approve and authorize the Chair to execute a settlement
agreement in the lawsuits styled Bayshore-Marco Island, LLC v. CRA- Case No. 18-CA-3850, Naples
Funding, LLC v. CRA- Case No. 18-CA-3853 and Lendequity, LLC v. CRA-Case No. 18-CA-3857 now
pending in the Circuit Court of the Twentieth Judicial Circuit in and for Collier County.
Prepared by: Jeffrey A. Klatzkow, County Attorney
Kevin Noell, Assistant County Attorney,
Debrah Forester, CRA Director
ATTACHMENT(S)
1. Settlement Agreement (2) (PDF)
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02/11/2020
COLLIER COUNTY
Board of County Commissioners
Item Number: 16.B.2
Doc ID: 11576
Item Summary: Recommendation that the Board of County Commissioners, acting as the
Community Redevelopment Agency Board, approve and authorize the Chair to execute a settlement
agreement in the lawsuits styled Bayshore-Marco Island, LLC v. CRA (Case No. 18-CA-3850), Naples
Funding, LLC v. CRA (Case No. 18-CA-3853), and Lendequity, LLC v. CRA (Case No. 18-CA-3857)
for payment by Plaintiffs of $360,000 and homes built on all lots in 5 phases over the next 36 months.
Meeting Date: 02/11/2020
Prepared by:
Title: – Corporate Business Operations
Name: Sean Callahan
02/05/2020 12:06 PM
Submitted by:
Title: – County Manager's Office
Name: Debrah Forester
02/05/2020 12:06 PM
Approved By:
Review:
County Manager's Office MaryJo Brock Director - CRAs Skipped 02/05/2020 2:56 PM
Corporate Business Operations Sean Callahan Executive Director- Corp Business Ops Completed 02/05/2020 3:02 PM
County Attorney's Office Kevin Noell Level 2 Attorney Review Completed 02/05/2020 3:36 PM
Office of Management and Budget MaryJo Brock Level 3 OMB Gatekeeper Review Skipped 02/05/2020 2:06 PM
County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 02/05/2020 3:42 PM
County Manager's Office Leo E. Ochs Level 4 County Manager Review Completed 02/05/2020 3:44 PM
Board of County Commissioners MaryJo Brock Meeting Pending 02/11/2020 9:00 AM
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