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Agenda 04/13/2010 Item #16A 8 EXECUTIVE SUMMARY Agenda Item No. 16A8 April 13, 2010 Page 1 of 9 Recommendation to accept an offer to settle and release two code enforcement liens, with a combined accrued value of $231,528, for payment of $65,000 in the Code Enforcement Actions entitled Board of County Commissioners vs. 6240 Collier Group, Inc., Case Nos, CEB 2007-080153 and OSM 2007-080327, relating to property known as 6220 and 6240 Collier Boulevard, Collier County, Florida. OBJECTIVE: To have the Board of County Commissioners accept an offer to settle and release two code enforcement liens, with a combined accrued value of $231,528, for payment of $65,000, in relation to two Code Enforcement Board actions entitled Board of County Commissioners VS. 6240 Collier Group, Inc, CONSIDERATIONS: This settlement offers involves two liens - one imposed by the Special Magistrate and one imposed by the Code Enforcement Board. Special Maoistrate Lien: On June 6, 2008, the Code Enforcement Special Magistrate found 6240 Collier Group, Inc. (Respondent) in violation of the Collier County Property Maintenance Ordinance for having a roof soffit and fascia, and interior ceiling, in disrepair. Respondent was ordered to correct the violations by "obtaining all required building permits, inspections, certificate of completion, and repair all damage to roof, fascia, soffit and ceiling" on or before August 6, 2008, or a fine of $250 per day would be imposed until the violation is abated. The order was recorded in the Official Public Records on June 23, 2008, in OR Book 4372, Pages 434, et seq. Due to non-compliance and based on the above order, the Special Magistrate entered an order dated September 5, 2008, imposing a lien ("OSM Lien"). The OSM Lien was recorded in the Official Public Records on September 16, 2008, at O.R. Book 4394, Pages 995, et seq. This violation was brought into compliance on March 8, 2010. Based on 577 days of noncompliance, at $250 per day, plus $340.30 in operational costs, the accrued lien amount is $144,590.30. Code Enforcement Board Lien: On May 22, 2008, the Code Enforcement Board found Respondent in violation of the Collier County Land Development Code, for landscape violations, Respondent was ordered to correct the violations by "replacing dead and failing plant material" on or before August 28, 2008, or a fine of $150 per day would be imposed until the violation is abated. The order was recorded in the Official Public Records on May 30,2008, in OR, Book 4365, Pages 1428, et seq. Due to non-compliance and based on the above order, the Code Enforcement Board entered an order dated October 2, 2008, imposing a lien ("CEB Lien"). The CEB Lien Agenda Item No, 16A8 Aprii 13,2010 Page 2 of9 was recorded in the Official Public Records on October 6, 2008, at O.R. Book 4398, Pages 3861, et seq. This violation was brought into compliance on March 19, 2010. Based on 576 days of noncompliance, at $150 per day, plus $537.93 in operational costs, the accrued lien amount is $86,937.93, On April 9, 2009, 6240 Collier Group conveyed the property (encumbered by the liens above) to second mortgage holder S&G Financial. In June 2009, first mortgage holder Interamerican Bank filed a foreclosure action against the property and named the County as a defendant. Because the County held these liens, they were asserted in a counterclaim in the foreclosure action. Following commencement of the foreclosure action, S&G Financial (the current property owner) filed for bankruptcy. The bankruptcy filing could adversely impact the County's ability to pursue S&G Financial for payment of the liens without potentially expending considerable financial resources and time. The foreclosure plaintiff, Interamerican Bank, has been working with the U.S. Bankruptcy Trustee and the County in an effort to avoid litigation. The Bankruptcy Trustee, with the assistance of Interamerican Bank, has offered to settle both liens for $65,000, and they are requesting a waiver of the remaining accrued fines of $166,528 in accrued fines and releases of the liens. Interamerican Bank has been proactive in achieving compliance, and has expended approximately $52,385 to bring the property into compliance. It is expected that these improvements will reduce potential blight and allow functioning businesses to reoccupy the space. FISCAL IMPACT: The U.S. Bankruptcy Trustee is offering to pay a total of $65,000 to settle these liens. If this offer is accepted by the Board, accrued fines in the amount of $166,528 will be waived. GROWTH MANAGEMENT IMPACT: There is no growth management impact associated with this Executive Summary. LEGAL CONSIDERATIONS: This item is legally sufficient for Board action. If approved, the County's counterclaim in the foreclosure action (see above) will be voluntarily dismissed and the liens will be forever relinquished. -JW RECOMMENDATION: That the Board accept the settlement offer described herein. PREPARED BY: Jen Waldron, Code Enforcement Supervisor Agenda Item No. 16A8 April 13, 2010 Page 3 of 9 This Instrument Prepared By: Jeff E. Wright, Assistant County Attorney Office of the Collier County Attorney 3301 East Tamiami Trail, 8th Floor Naples, Florida 34112 (239) 252-8400 RELEASE AND SATISFACTION OF LIEN KNOW ALL MEN BY THESE PRESENTS: That the BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, FLORIDA is the owner and holder of a certain lien against all real and personal property owned by: 6240 Collier Group, Inc., Respondent The lien was recorded on October 6,2008, in Official Records Book 439B, Pages 3861, sf seq., in the Official Records of Collier County, State of Florida. The lien secures the accrued sum of eighty-six thousand nine hundred thirty-seven dollars and ninety-three cents, inclusive of costs, accrued interest, and penalties, if any, and imposes certain obligations against real property situated in Collier County, Florida, which property is described as follows: 6240 Collier Boulevard, Naples, Florida 34114, folio #00731840005 (and 6220 Collier Boulevard, folio #00736200501, as a result of post-lien lot split) Collier County, a political subdivision of the State of Florida, by execution of this Release and Satisfaction of Lien, acknowledges full satisfaction of the lien and any related underlying orders, and hereby cancels said lien. The Clerk of the Circuit Court is hereby directed to record this Release and Satisfaction of Lien in the Official Records of Collier County, Florida, to acknowledge that the lien ceases to exist. IN WITNESS WHEREOF, the Board of County Commissioners of Collier County, Florida, acting through its Chairman, directs execution and recording of this Release and Satisfaction of Lien, by action of the Board on this day of ,2010. ATTEST DWIGHT E. BROCK, Clerk BOARD OF COUNTY COMMISSIONERS COLLIER COUNTY, FLORIDA By: Deputy Clerk By: Fred W. Coyle, Chairman Approved as to form and legal sufficiency Jeff E. Wright Assistant County Attorney ~ Agenda Item No. 16A8 April 13, 2010 Page 4 of9 This Instrument Prepared By: Jeff E. Wright, Assistant County Attorney Office of the Collier County Attorney 3301 East Tamiami Trail, 81/1 Floor Naples, Florida 34112 (239) 252-8400 RELEASE AND SATISFACTION OF LIEN KNOW ALL MEN BY THESE PRESENTS: That the BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, FLORIDA is the owner and holder of a certain lien against all real and personal property owned by: 6240 Collier Group, Inc., Respondent The lien was recorded on October 6, 2008, in Official Records Book 4394, Pages 995, et seq., in the Official Records of Collier County, State of Florida. The lien secures the accrued sum of one hundred forty-four thousand five hundred ninety dollars and thirty cents, Inclusive of costs, accrued interest, and penalties, if any, and imposes certain obligations against real property situated in Collier County, Florida, which property is described as follows: 6240 Collier Boulevard, Naples, Florida 34114, folio #00731840005 (and 6220 Collier Boulevard, folio #00736200501, as a result of post-lien lot split) Collier County, a political subdivision of the State of Florida, by execution of this Release and Satisfaction of Lien, acknowledges full satisfaction of the lien and any related underlying orders, and hereby cancels said lien. The Clerk of the Circuit Court is hereby directed to record this Release and Satisfaction of Lien in the Official Records of Collier County, Florida, to acknowledge that the lien ceases to exist. IN WITNESS WHEREOF, the Board of County Commissioners of Collier County, Florida, acting through its Chairman, directs execution and recording of this Release and Satisfaction of Lien, by action of the Board on this day of ,2010. ATTEST DWIGHT E. BROCK, Clerk BOARD OF COUNTY COMMISSIONERS COLLIER COUNTY, FLORIDA By: Deputy Clerk By: Fred W. Coyle, Chairman Approved as to form and legal sufficiency Jeff E. Wright Assistant County Attorney '~ Item Number: Item Summary: Meeting Date: Agenda item No. 16A8 April 13, 2010 Page 5 of 9 COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS 16A8 Recommendation to accept an offer to settle and release two code enforcement liens, with a combined accrued value of $231 ,528 for payment of $65,000 in the Code Enforcement Actions entitled Board of County Commissioners vs, 6240 Collier Group, Inc" Case Nos, CEB 2007-080153 and OSM 2007-080327, reiating to property known as 6220 and 6240 Collier Boulevard, Collier County, Florida. 4/13/20109:00:00 AM Date Prepared By Marlene Serrano Community Development & Environmental Services Manager - Code Enforcement Operations Code Enforcement 3/18/20104:13:08 PM Date Approved By Diane B. Flagg Community Development & Environmental Services Director ~ Code Enforcement Code Enforcement 3/19/201011:10 AM Approved By Date r-- Judy Puig Community Development & Environmental Services Operations Analyst Community Development & Environmental Services 3/25/20103:53 PM Approved By Date Jeff Wright County Attorney Assistant County Attorney County Attorney 3125/201010:27 AM Date Approved By Jeff Klatzkow County Attorney 3130/20108:58 AM Date Approved By Nick Casalanguida Transportation Division Director - Transportation Planning Transportation Planning 3/31/20108:29 AM Date Approved By OMS Coordinator County Manager's Office Office of Management & Budget 4/1/20109:06 AM Date Approved By Michael Sheffield ,--- Assistant to the County Manager County Managers Office 4/6/20108:49 AM MORTGAGE ACCOUNT Agenda Item N\l,;l.W Aprii HI, 1lg:1~ 3 1BIDteramericaD BaDk,. Page 6 of 9 91t1lCORl\LWAY !4AMl,FLORIDA.13165 63-8n6-267('l PAY r DATE "''''/''/'/';'''''''''''''/:5000' .,' 00 I ;.~:~-~~f:;~'~'<':~::'~'~'i::':.'~~, .. OC{:~ ~(>1S 3/25/10 f DOLLARS$ -65,OOO.00til I ~b~.l TO TIiE ORDER OF CCBCC 11"08028 :ill": 2 b 708 7 n, '11: 00~0"2~bb7I1' Agenda Item No. 16A8 April 13, 2010 Page 7 of 9 LORENZO & RODRIGUEZ-RAMS JAY J. loRENZO, P.A. ORLANOO RoORIGUEZ-RAMs, D.M.D. A1TORNEYS AT LAW 9192 CORAL WAY. SUITE 201 MIAMI, FLORIDA 33]65 TEL.' (3051 227-0727 FAX' (305) 227-1086 JENIFER GOMEZ Certified Legal Assistant March 25, 2010 ~ = Jeff E. Wright, Esq., Asst County Atty County Board of Commissioners Code Enforcement Board 3301 E. Tamiami Trail, 8th Floor Naples, Florida 34112 "'" :x 'P. o $2~. z-n :<r~: 2:4c, -1,. 0_ :rJ::t zrr r71 -< Bv Federal Exoress :1C 'J>> :::0 N C1' "For Settlement Purposes Only" RE: lnteramerican Bank v. S & G Financial Services of S. Fla., Inc. Case No. 09-5387 CA Property Address: 6220 and 6240 Collier Blvd., Naples, Florida Our File No. 01-1339-09 Dear Jeff: ~'. Enclosed please find check no.: 80283 in the amount of$65,000.00 constituting settlement proceeds for code enforcement liens referenced in e-mail agreements attached hereto. It is our understanding that you will hold the check in safekeeping pending Board approval on April 13, 2010. In the event the Board rejects the settlement offer, you have agreed to return the check to the undersigned. Thank you very much for your valuable cooperation in this matter. Very truly yours, ~~ -=-=-:''> B:: 'J;y IT~z;S For the Firm -- JJUjpg d:\ib\1339-Q9\wright enc cc: Jorge H. Ramos, Esq, Agustin Velasco, CEO, Interamerican Bank, FSB Carlos Lopez, SVP, Interamerican Bank, FSB Agenda ItRag~d. o:!i~8 April 13, 2010 Page 8 of 9 Jay Lorenzo From: WrightJeff [JeffWright@oolliergovnet] Sent: Wednesday, March 24, 2010 3:26 PM To: Jay Lorenzo Cc: Jorge H. Ramos; flag9-d; WaldronJennifer Subject: FW: PRIVILEGED & CONFIDENTIAL: 6220 & 6240 Collier Blvd Jay- As we discussed this afternoon, this is to confirm that, upon receipt of payment of $65,000 by Friday (details below), we will hold the funds in safekeeping pending the outcome of the Board meeting on April 13, 2009. In the statistically unlikely event that the Board rejects the offer, we will return the funds to their originator (or as instructed by the originator). Please let me know if you need additional information. Thanks. Jeff Jeff E. Wright Assistant County Attorney Office of the Collier County Attorney 3301 Tamiami Trail, East Harmon Turner Building, 8th Floor Naples, Florida 34112 239-252-8400 239-252-6300 (fax) PREPARED IN ANTtCIPA TION OF LITIGATION, REFLECTS THE MENTAL IMPRESSIONS, LITIGATION STRA TEGtES AND LEGAL THEORIES OF THE UNDERSIGNED ATTORNEY AND IS EXEMPT FROM PUBLIC RECORDS DISCLOSURE PURSUANT TO i 119,07t(IXd), FLA STAT, THIS MESSAGE IS INTENDED FOR THE RECIPIENT ONLY. IF YOU RECEIVED THtS COMMUNICATION IN ERROR, PLEASE NOTIFY THE SENDER IMMEDlA TEL Y. USE OR DISSEMINATJON BY ANY PERSON OTHER THAN THE INTENDED RECIPtENT tS STRlCTL Y PROHtBlTED. From: WrightJeff Sent: Friday, March 19, 20104:40 PM To: 'Jay Lorenzo'; Jorge H. Ramos Cc: f1agg_d; WaldronJennifer; KlatzkowJeff Subject: PRMLEGED & CONFIDENTIAL: 6220 & 6240 Collier Blvd Jay and Jorge- Thanks for taking the time to meet with us on Wednesday. I think it was time well spent for all involved, and I appreciate all of your efforts. My understanding of the "agreement" we reached during our meeting is as follows: 1. Upon receipt of payment of $65,000 (in good funds), the Code Enforcement Director will forward a recommendation to the Board of County Commissioners to accept the offer to settle two outstanding code enforcement liens, in exchange for full settlement, release and satisfaction of the liens (which, upon Board approval, will be recorded at the County's expense). 2. The liens at issue are recorded at O,R. Book 4394, Pages 995, et seq., and at O.R. 3/25/20 I 0 Agenda Ili!agllla. 6Ms AprTI 13, 2010 Page 9 of9 Book 4398, Pages 3861, ef seq. 3. If accepted by our Board, in consideration of the payment provided, the County will file full and final release and satisfactions of any and all liens and encumbrances of record now held by the County, and will relinquish any interest that it may have in or against (1) Property now known as 6220 and 6240 Collier Boulevard, (2) the Trustee, his agents, employees, representatives and professionals in case no. 10-15516-LMI, in the U.S. Bankruptcy Court, Southern District of Florida, and (3) the Bankruptcy Estate in said case. 4. If accepted by our Board, the County will file a motion to dismiss, with prejudice, its counterclaim ("Countercomplaint and Cross Complaint") and affirmative defenses in Case No. 09-05387, now pending in the Circuit Court, Twentieth Judicial Circuit (Collier County). 5. The offeror is Mr. Ramos, on behalf of the U.S. Bankruptcy Trustee (in case no. 10- 15516-LMI, in the U.S. Bankruptcy Court, Southern District of Florida). 6. If we receive payment by Friday, March 26th, we will place this settlement offer on the Board's April 13th meeting (otherwise it would have to go on the April 27th, or later depending on date of receipt of guaranteed funds). Please let me know if this is consistent with your understanding. Thanks again for your ongoing cooperation. Jeff E. Wright Assistant County Attorney Office of the Collier County Attorney 3301 Tamiami Trail, East Harmon Turner Building, 8th Floor Naples, Florida 34112 239-252-8400 239-252-6300 (fax) PREPARED IN ANTICIPATION OF LITIGATION, REFLECTS mE MENTAl. IMPRESSIONS, LITIGATION STRATEGIES AND LEGAL THEORIES OF mE UNDERSIGNED A TIORNEY AND IS EXEMPT FROM PUBLIC RECORDS DISCLOSURE PURSUANT TO ~ I I9.07t(I)(d), FLA. STAT. THIS MESSAGE IS INTENDED FOR THE RECIPIENT ONLY. IF YOU RECEIVED THIS COMMUNtCATION IN ERROR, PLEASE NOTIFY THE SENDER tMMEDlATEL Y. USE OR DISSEMINATION BY ANY PERSON OTHER mAN THE INTENDED RECtPIENT tS STRICTLY PROHIBITED. From: Jay Lorenzo [mailto:Jlorenzo@lccclaw.com] sent: Thursday, March 18, 2010 5:20 PM To: WrightJeff Cc: Jorge H. Ramos Subject: Jeff, When you are ready to transmit your emailtomorrow, please send it directly to Jorge Ramos so that he can immediately forward it to Mr. Brown. Thanks gain, Jay J. Lorenzo, Esq. 3/25/2010