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Agenda 07/09/2024 Item #10A (Provide additional information to the BCC for partial refund of $141,540.90)10.A 07/09/2024 EXECUTIVE SUMMARY Recommendation to provide additional information to the Board of County Commissioners regarding the request for a partial refund of $141,540.90 for funds received to release a code enforcement lien with an accrued value of $167,500 in the code enforcement action titled Board of County Commissioners vs. Krista L. Irizarry and Marcial John Irizarry, relating to previously owned property located at 105 16' St. SE, Collier County, Florida. OBJECTIVE: To provide additional information to the Board of County Commissioners (BCC) for their consideration related to the request of a partial refund of $141,540.90. These funds were received from the sale of the property at 105 16th St. SE in August 2023 and were applied to release a code enforcement lien with an accrued value of $167,500 in relation to Code Enforcement Special Magistrate Case No. CEV20100018622. CONSIDERATIONS: At the June 11, 2024, Board of County Commissioners meeting, the Board of County Commissioners directed Code Enforcement staff to provide additional information related to Mr. Irizarry's request for a partial refund of $141,540.90. As a result of an ongoing code violation at 105 16' St. SE, the Code Enforcement Board (CEB) ordered the imposition of a lien against Krista L. and Marcial John Irizzary in Case No. CEV20100018622. The violation consisted of many unlicensed, inoperable vans, cars, and commercial trailers on an estates -zoned property. An Imposition of Fines Hearing was held on November 22, 2011, and a continuance was granted for an additional 180 days, however, the property owners failed to achieve compliance by the deadline of May 15, 2012. The lien was recorded on July 12, 2012, at O.R. Book 4816, Pages 1528-1529, in the amount of $4,480. Fines continued to accrue ($100 per day for 1,675 days), The property was found to be in compliance on December 15, 2016, resulting in a lien amount of $167,500. Code Enforcement staff conducted a total of 65 inspections and made numerous attempts to contact the owners during this time. On July 11, 2023, Mr. Irizarry came to Growth Management Community Development (GMCD) to apply for lien relief and paid $80 in operational costs and the $150 Code Lien Relief Application fee. When the application was received, Mr. Irizarry was advised to resolve any outstanding issues with Permit PRBD20180106002 related to a solar installation on an unpermitted, unattached garage conversion. Either the solar installation needed to be removed or the unpermitted conversion work needed to be correctly permitted. Staff advised Mr. Irizarry numerous times to contact a legal representative for advice as the property did not meet the criteria for lien relief as set forth in Resolution 2023-90. The Irizarry's sold the property in August 2023, prior to paying delinquent fees or having a settlement of the lien amount due. At the time of sale, permit PRBD20180106002, which expired in December 2019, remained in expired status; therefore, the criteria for a reduction of lien recommendation per Resolution 2023-90 had not been met. The title company withheld funds from the property sale to pay the full lien amount. On August 26, 2023, the County received a payment of $167,500 from the title company, Lottes Law Group, PLLC, a Release of Lien was recorded on September 22, 2023, at OR 6290 PG 446, and the new owners received a clean/clear title. The new property owners proceeded to pay the outstanding fees for permit PRBD20180106002 and obtained the Certificate of Completion for the solar panels on May 7, 2024. Subsequently, Code Case No. CESD20240003513 was opened against the new property owners to address the existing unpermitted, unattached garage conversion and other possible unpermitted structures that required investigation. Pursuant to Resolution No. 2023-90, a request for reduction of fines may be considered, in part, when a lien encumbers property under new ownership, and the new owner has diligently pursued abatement and achieved compliance and/or when payment of the lien would impose a severe financial hardship on the owner. Packet Pg. 13 10.A 07/09/2024 FISCAL IMPACT: Approval of a refund of $141,540.90 would reduce the lien settlement payment to $25,959.10, which correlates to what is outlined in Collier County Resolution 2023-90. GROWTH MANAGEMENT IMPACT: No growth management impact is associated with this action. LEGAL CONSIDERATIONS: The County Attorney's Office has reviewed this item and approved it as to form and legality. Majority support is required for approval--RTT. RECOMMENDATION: To advise if a partial refund of $141,540.90 to Mr. Irizarry can be approved and accept the reduced payment of $25,959.10 to satisfy the lien, which correlates to what is outlined in Collier County Resolution 2023-90. Prepared by: Tom Iandimarino, Director, Code Enforcement Division ATTACHMENT(S) 1. 105 16th St SE - Worksheet rev 06.11.2024 (PDF) 2. Resolution 2023-090 (PDF) Packet Pg. 14 10.A 07/09/2024 COLLIER COUNTY Board of County Commissioners Item Number: 10.A Doc ID: 29304 Item Summary: Recommendation to provide additional information to the Board of County Commissioners regarding the request for a partial refund of $141,540.90 for funds received to release a code enforcement lien with an accrued value of $167,500 in the code enforcement action titled Board of County Commissioners vs. Krista L. Irizarry and Marcial John Irizarry, relating to previously owned property located at 105 16th St. SE, Collier County, Florida. Meeting Date: 07/09/2024 Prepared by: Title: Legal Assistant — County Attorney's Office Name: Wanda Rodriguez 06/24/2024 2:00 PM Submitted by: Title: County Attorney — County Attorney's Office Name: Jeffrey A. Klatzkow 06/24/2024 2:00 PM Approved By: Review: County Attorney's Office Wanda Rodriguez CAO Reviewer Code Enforcement Thomas landimarino GMCDD Reviewer County Attorney's Office Ronald Tomasko Level 2 Attorney of Record Review Growth Management Community Development Department James C French Office of Management and Budget County Attorney's Office Office of Management and Budget County Manager's Office Board of County Commissioners Debra Windsor Level 3 OMB Gatekeeper Review Skipped 06/24/2024 1:58 PM Completed 06/24/2024 4:40 PM Completed 06/24/2024 4:52 PM Growth Management Completed 07/03/2024 10:06 AM Completed 07/03/2024 10:14 AM Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 07/03/2024 10:20 AM Laura Zautcke OMB Reviewer Completed 07/03/2024 10:21 AM Amy Patterson Level 4 County Manager Review Geoffrey Willig Meeting Pending Completed 07/03/2024 10:43 AM 07/09/2024 9:00 AM Packet Pg. 15 10.A.a Code Enforcement Lien Relief Program Resolution 2023-90 Krista L Irizarry & Marcial John Irizarry 105 16TH ST SE Naples, FL 34117 Folio # 39210380002 Legal: Golden Gate Est Unit 48 N 1/2 of Tr 135 Section 1: Property Overview RESOLUTION NO. 2023-90 Case Number: CEV20100018622, many unlicensed and inoperable vehicles and trailers on the estates zoned property. • 9-17-10 Original Date Case Opened • Lien OR 4816 PG 1528-1529 (Release OR 6290 PG 446) • Date of Compliance: 12-15-2016, operational costs paid 7/11/23. Has the applicant been found to have repeat violations in the past five years: No History of other violations: • 2006011085: 1/26/2006, running business from garage. Occupational license obtained. Trucks relocated. Case closed 3/2/06. • 2006020435: 2/2/2006, additional driveway of crushed rock and fill connecting to Golden Gate Blvd. Owner could not obtain permit — vegetation covered driveway. Case closed 1 /24/2007. Open Code Case: New owners, CESD20240003513, opened 4/15/2024, Unpermitted unattached garage conversion into living area, and possible other unpermitted structures. Section 2: In order to qualify for the Lien Relief Program, the following criteria must be met by the applicant: • Property taxes and utilities are current. • Other Collier County liens: No • Expired permit: None, PRBD20180106002 CC on 5/7/2024 • Other properties owned by the applicant in Collier County: None • Property use consistent with Zoning laws: Yes, Residential • Application fee of $150 paid 7/11/23, ineligible at time of application. • Operational costs paid 7/11/23 Section 3: Eligibility Lien Relief Attachments: c d 1. Code Lien Relief Application - 105 16th St SE z c� Packet Pg. 16 10.A.a Code Enforcement Lien Relief Program Resolution 2023-90 7. CEV20100018622 Code Case Details - 2023-07-11 for additional details. Section 4: Collier County Property Appraiser's Assessed Value as of July 2023 Land Value $ 128,179 (+) Improved Value $ 231,044 (_) Market Value $ 359,223 (-) 10% Non -Homestead Cap $ 99,632 (_) Assessed Value $ 259,591 CEV20100018622: 7/6/2012 Code Enforcement Board imposition of fines order OR 4816 PG 1528 recorded on 7/12/2012, $100 day fine from 5/16/2012 through 6/28/2012. Fines continued to accrue through compliance date 12/15/2016 for a total of 1675 days. Order Items: $100/day fine x 1,675 days (5/16/2012 — 12/15/2016) plus, operational costs Operational costs paid 7/11/2023) Total Fines: 8/26/2023 Payment in full for lien received from Lottes Law Group, PLLC Recommended refund amount: 10% of Assessed Value: 2 $ 167,500.00 $ 80.00 ($ 80.00) $167,500.00 ($167,500.00) ($ 141, 540.90) $ 25,959.10 a Packet Pg. 17 10.A. b RESOLUTION NO.2023 -9 0 A RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, FLORIDA, REPEALING AND REPLACING RESOLUTION NO. 2012-46, THE CODE ENFORCEMENT LIEN RELIEF PROGRAM. WHEREAS, Article VIII, Section 1, Fla. Const., provides the Board of County Commissioners (hereinafter "Board") as the governing body of Collier County, with powers of self-government as provided for by general or special law; and WHEREAS, certain of these powers have been enumerated in Section 125.01(1), Fla. Stat., to include: (1) the power to adopt resolutions necessary for the exercise of its powers and prescribe fines and penalties for the violation of ordinances in accordance with law, and (2) the power to perform any other acts not inconsistent with law; and WHEREAS, Section 125.01(3), Fla. Stat., provides all implied powers necessary or incident to the carrying out of the powers in Section 125.01, and states that Section 125.01 shall be liberally construed in order to effectively carry out the purposes of this section and to secure for the counties the broad exercise of home rule powers; and WHEREAS, the County Manager is responsible for the administration of all departments of the county government which the Board has authority to control pursuant to Chapter 125, Part III, the general laws of Florida and other applicable legislation; and WHEREAS, pursuant to Chapter 162, Fla. Stat., the Collier County Code Enforcement Board and Special Magistrate may, upon factual findings of a violation and the violator's failure to correct or abate the violation pursuant to a previous Order by the Code Enforcement Board or Special Magistrate, impose fines, and costs to repair, by virtue of an Order Imposing Fine/Lien; and WHEREAS, Section 162.09, Fla. Stat., provides that the Code Enforcement Board or Special Magistrate may authorize the Office of the County Attorney to foreclose the lien or to sue to recover a money judgment for the amount of the lien in the event the fine/lien remains paid three months after recording of the Order Imposing Fine/Lien; and WHEREAS, Section 162.09, Fla. Stat., also authorizes the County to petition the court for enforcement of the order imposing fine and further provides for execution and levy to the same extent as a civil judgment; and WHEREAS, foreclosure, execution and levy, or suits for money judgments, are often not effective methods for the recovery of code enforcement liens; and WHEREAS, Collier County adopted Resolution No. 2012-46 to establish criteria for the Code Enforcement Director with respect to the reduction Code Enforcement liens; and WHEREAS, Resolution No. 2012-46 was adopted in part to help deal with the foreclosure crisis [2 1 -CED-02044/1790942/1 ] Packet Pg. 18 10.A. b that resulted from the Great Recession, and WHEREAS, utilizing the most cost-effective means of enforcing and collecting code enforcement fines and liens imposed by the Collier County Code Enforcement Board or Special Magistrate is in the best interest of the County; and WHEREAS, with changing times the Board finds that updating and amending the Code Enforcement Lien Relief Program for Collier County is in the public interest and in the best interest of the health, safety and welfare of the citizens of Collier County by encouraging property owners to bring the property into compliance with County codes. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY COMIMSSIONERS OF COLLIER COUNTY, FLORIDA, that: 1. The County Manager or his/her designee (hereinafter the "County Manager") shall develop a formal, written application for use with the Lien Relief Program to be reviewed and approved by the Board. Only liens resulting from code violations are eligible. 2. In order to qualify for the Lien Relief Program the following criteria must be met by the applicant: A. The formal, written application shall be completed in its entirety and submitted to the County Manager. The County Manager may request additional information in order to process the application. All code liens associated with the applicant's parcel shall be included in the application. B. The non-refundable application fee for the lien reduction of $150 shall be paid upon submittal of the application. The application fee is meant to offset the County's cost in evaluating the application, including the need to review case files and the compliance status of the property. C. All administrative fees and hard costs associated with the code lien(s) must be paid at the time of the submission of the application. D. The underlying violation(s) that resulted in the fine/lien must have been abated or corrected and the fine/lien amount is fixed and no longer accruing on a periodic basis. E. As part of the application, the applicant shall provide a list of all properties owned by the applicant. The applicant must not have any active code violations on any other property in Collier County. F. All ad valorem property taxes, special assessments, Collier County utility charges or other Collier County fees or liens against the subject real property and all other properties owned by the applicant must be current. G. There are no expired permits on the subject property or any property owned by the [21 -CED-02044/1790942/11 [04-CED-01058/1785212/11 Packet Pg. 19 10.A. b applicant or managing member of the applicant in the county. H. The property is being used consistent with the permitted uses and is in compliance with the zoning laws of the County. I. If the applicant for the Lien Relief Program is a new owner the application must include the title insurance policy and/or closing documents, if any, related to the purchase of the property. If the title policy noted the outstanding code lien, or if the applicant failed to obtain a title report prior to purchase, a lien reduction may not be granted. 3. The County Manager shall review the application to determine if the applicant is eligible for the requested relief prior to making a recommendation to the Board of County Commissioners. The recommendation may be to approve or deny the request or to approve the request with conditions. Before a lien settlement is recommended to the Board, the following conditions must be taken into consideration: A. Lien amount is fixed and no longer accruing on a periodic basis. B. Underlying violation(s) resulting in the lien has been abated. C. History of violations involving the applicant. D. Extent to which payment of the full lien would impose a severe financial hardship on the property owner and the measurable expenses incurred when bringing the property into compliance. E. The diligent pursuit of the applicant to bring the property into compliance. 4. If the recommendation is for approval, the lien shall be reduced to a sum not to exceed ten percent (10%) of the assessed value of the property. The "assessed value" shall be the Collier County Property Appraiser's assessed value established at the time of filing a fully completed application for a lien reduction and payment of the applicable fee. If the applicant has been found to have repeat violations as determined by the Code Enforcement Board or Special Magistrate at the subject property or any other property within the last 5 years, the reduced lien shall not exceed twenty percent (20%) of the assessed value of the property as determined by the most recent value as set forth by the Collier County Property Appraiser. 5. The Board, on good cause shown, may elect to deny any recommendation for approval, or impose conditions for approval it deems appropriate. The Board may deny any application made one year after the recording of the lien. 6. Once a code enforcement lien has been compromised by Board approval and full payment of the compromised amount has been received by the County, as verified by the County Manager, a Satisfaction and/or Release of Lien shall be prepared for the Board Chairman's signature. Within thirty (30) days of Board approval, and upon payment of the reduced lien, the County Manager shall effectuate recording of the releasing instrument. If [21-CED-02044/1790942/1] [04-CED-01058/1785212/11 Packet Pg. 20 10.A. b payment is not timely received, the application will be deemed denied ab initio and no reduction shall take place. 7. The County Manager shall report annually and upon request to the Board of County Commissioners with a report containing the code case information, amount of invoiced costs incurred by the County for abatement related services, total amount of fines accrued, whether the property is homestead property and whether the underlying violation has been abated. 8. In addition to the reduction of liens described above, the County Manager shall be authorized to execute a release of a code lien which has been deemed by the County Attorney's Office to be legally unenforceable or uncollectible in that the statute of limitations relating to the lien has expired; the lien was properly foreclosed by order of an appropriate court with jurisdiction; the lien was properly discharged in a bankruptcy proceeding by order of a bankruptcy court; the property encumbered by the lien is currently owned by the county; and for any other reason as determined by the County Attorney that establishes the legal unenforceability or uncollectibility of a lien. If issued, the county shall record the release of lien in the official records for the county. 9. Nothing contained herein is intended or shall be construed to create any rights, entitlements or remedies to the enforcement and collection of a code enforcement lien in a particular manner by any person or entity. The procedures in this Resolution are not intended to create additional substantive rights or procedural due process rights as the considerations and determinations within this Resolution are administrative actions as to whether to accept less for a debt owed to the County. 10. Resolution No. 2012-46 is hereby repealed in its entirety and superseded by this Resolution. THIS RESOLUTION ADOPTED upon majority vote this day of , 2023 ATTEST: ,n Crystal, Kinzel, Courts By. Attest as to Chairmah Cler Sig nfture_only .. 5� I_1 Jeffrey and legality: , County Attorney BOARD OF COUNTY COMMISSIONERS COLLIER COUNTY, FLORIDA c Rick LoCastro, Chairman [2 1 -CED-02044/1790942/1 ] [04-CED-01058/1785212/1 1 Packet Pg. 21 07/09/2024 EXECUTIVE SUMMARY Recommendation to approve and adopt a Resolution authorizing the condemnation of those fee simple and easement interests necessary for the construction of roadway, drainage and utility improvements required for the extension of Vanderbilt Beach Road from 16th Street NE to Everglades Boulevard. (Project No. 60249). Estimated fiscal impact: $17,195,000. OBJECTIVE: To acquire the fee simple and easement parcels necessary for the construction of Vanderbilt Beach Road Extension (Project No. 60249) from 16th Street NE to Everglades Boulevard (the Project). CONSIDERATIONS: On April 23, 2024, the Board of County Commissioners (the "Board") adopted Resolution No. 2024-72, authorizing the acquisition by gift or purchase of the real property interests necessary for construction of the Project. Authority is now being sought to condemn these parcels. Construction of the Project is scheduled to commence in the second half of 2025. Condemnation proceedings will only be filed if it becomes necessary to do so to meet Project scheduling requirements. In the meanwhile, staff will use best endeavors to acquire as many parcels as possible without resorting to litigation. The Board's professional Transportation Engineering Division staff and consultants have considered various factors during the design of the Project, including alternative alignments, public health, safety and welfare, long range planning needs, environmental impacts, and cost. The Board is referred to the attached Right -of -Way Acquisition Report, dated May 9, 2024, prepared by Kimley Horn. Staff recommends that with the Board's review of the Right -of -Way Acquisition Report, approval of this Executive Summary, the back-up documentation, and the proposed Resolution, the Board finds that the fee simple and easement parcels (as depicted in the legal descriptions attached to the Condemnation Resolution) represent the most feasible location and are required for construction of the proposed improvements. Staff further recommends that the Board make a finding that it is necessary and, in the public's, best interest to acquire, by condemnation, if necessary, the fee simple and easement interests specified on each legal description attached to the Condemnation Resolution. In addition to the direct cost of the fee simple parcels and easements required for construction, the county is also required, where applicable, to pay severance damages and/or costs to mitigate damages to remaining properties ("cost -to -cure" expenses) caused as a result of the part taken to construct the Project, or caused as a result of construction of the proposed improvements, business damages, all expenses for title work, real estate appraisals, and those expenses related to condemnation when necessary, such as property owner attorney fees and expert witness fees, as required by Sections 73.091 and 73.092, Florida Statutes. These costs are included in the estimated fiscal impact below. To the extent settlements are achieved in lieu of litigation, these costs will be reduced significantly. All settlements are subject to approval by the Board. This item is consistent with the Collier County strategic plan objective to design and maintain an effective transportation system to reduce traffic congestion and improve the mobility of our residents and visitors. FISCAL IMPACT: The fiscal impact associated with this item is estimated to be $17,195,000. The primary funding source for the acquisition of right-of-way is through Road Impact Fee District Funds (3090, 3091, 3092, 3093, 3094, 3095), Growth Management Transportation Capital Fund (3081) and Road Construction Gas Tax Fund (3083), in the Vanderbilt Beach Road from 16th to Everglades Project (60249). Should impact fees not be sufficient within a particular project, the secondary funding source will be gas taxes and general funds. No maintenance costs are anticipated until such time as the Project is constructed. GROWTH MANAGEMENT IMPACT: This recommendation is consistent with the Long -Range Transportation Plan and Objective 1 of the Transportation Element of the Collier County Growth Management Plan to maintain the major roadway system at an acceptable Level of Service. LEGAL CONSIDERATIONS: This item has been reviewed is approved as to form and legality and requires a Packet Pg. 22