Agenda 12/13/2011 Item #16A2312/13/2011 Item 16.A.23.
EXECUTIVE SUMMARY
Recommendation to accept an offer to settle seven (7) foreclosure cases for payment of principal (and waiver
of accrued interest) on impact fee deferral liens at Botanical Place condominium.
OBJECTIVE: To obtain Board acceptance of an offer to settle seven (7) foreclosure cases for payment of
principal on impact fee deferral liens encumbering units at Botanical Place condominium.
CONSIDERATIONS: Several units at the Botanical Place condominium, located approximately 1,000 feet north
of the Naples Botanical Gardens on the east side of Bayshore Drive, have fallen into foreclosure. Many of the
foreclosures involve bank attempts to foreclose County impact fee deferral liens.
The law firm of Adams & Reese LLP, out of its Sarasota offices, has challenged the priority of the County's impact
fee deferral liens on behalf of several banking clients. Adams & Reese is currently counsel in seven Botanical
Place foreclosure cases against the County. In all of these cases, their bank clients are seeking to foreclose the
County's impact fee deferral liens, arguing that their purchase money mortgage is superior to the County's lien.
To date, the County has been successful in asserting priority of its impact fee deferral liens, and has overcome all
summary judgment attempts by the lenders (involving three of the seven cases to date). Following the most recent
summary judgment denial on November 4, 2011, Adams & Reese (on behalf of its several bank clients) offered to
settle all seven cases by paying the full principal amount due, and waiving all interest due, on the impact fee
deferrals. If this offer is accepted, the parties will file appropriate dismissal paperwork with the court
These cases are summarized as follows:
Case No.
Abbreviated case style
Amount due
w /interest
Proposed
settlement amount
09- 7673 -CA —
Fifth Third v. Hayes
$8,947.84
$7,158.27
10- 3095 -CA
Suntrust v. Jurek
$8,947.84.
$7158.27
10- 4512 -CA
Suntrust v. Cooney
$8,947.84
$7,158.27
11- 566 -CA
Harris Bank v. Arnold
$8,712.70
$6,970.16
11- 1329 -CA
Harris Bank v. Callis
$8,712.70
$6,970.16
10- 4020 -CA
Fifth Third v. Walton
$8,712.70
$6,970.16
09- 6807 -CA
Fifth Third v. Reyes
$8P947 . 84
$7,158.27
TOTAL
$61,929.46
S49,543.56
FISCAL i1VIPAM The law firm of Adams & Reese has provided a "good faith" payment in the amount of
$49,543.56, in support of its clients' settlement offer. Because this payment represents principal only, if this item is
approved, accrued interest (capped at 25 % of the original principal amount) will be waived; the net effect of this
proposed settlement is a 20% reduction in the total amount due. The cost of going forward with litigation is
uncertain, but will most likely exceed the waiver amount. The funds will be deposited in the appropriate impact fee
trust fund(s).
GROWTH MANAGEMENT IWACT: There is no growth management impact associated with this Executive
Summary.
LEGAL CONSIDERATIONS: This item is legally sufficient for Board action, and requires a majority vote for
approval. If approved, this settlement would result in dismissal of seven lawsuits involving the County, and would
limit further expenditure of County resources in these cases. — JW
SS _ RECOMMENDATION: That the Board accept the settlement offer described above, and authorize the
Chairman to sign releases of lien for the impact fee deferral liens at issue.
PREPARED BY: Amy Patterson, Impact Fee and Economic Development Manager
Jeff E. Wright, Assistant County Attorney
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COLLIER COUNTY
Board of County Commissioners
Item Number: 16.A.23.
12/13/2011 Item 16.A.23.
Item Summary: Recommendation to accept an offer to settle seven (7) foreclosure cases
for payment of principal (and waiver of accrued interest) on impact fee deferral liens at
Botanical Place condominium.
Meeting Date: 12/13/2011
Prepared By
Name: PattersonAmy
Title: Manager - Impact Fees & EDC,Business Management &
11/23/20119:15:06 AM
Approved By
n Name: PuigJudy
Title: Operations Analyst, CDES
Date: 11/23/2011 9:39:00 AM
Name: CasalanguidaNick
Title: Deputy Administrator - GMD,Business Management & Budget Office
Date: 11/23/20119:52:01 AM
Name: FederNorman
Title: Administrator - Growth Management Div,Transportati
Date: 11/23/2011 10:32:43 AM
Name: WrightJeff
Title: Assistant County Attomey,County Attorney
Date: 11/28/2011 8:36:04 AM
Name: KlatzkowJeff
Title: County Attorney,
Date: 11/28/2011 1:22:23 PM
Name: UsherSusan
Title: Management/Budget Analyst, Senior,Office of Manage
Date: 12/1/20113:29:40 PM
Packet Page -1761-
12/13/2011 Item 16.A.23.
Name: SheffieldMichael
Title: Manager- Business Operations, CMO
Date: 12/2/2011 10:18:03 AM
Packet Page -1762-