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Agenda 07/28/2009 Item #10CAgenda Item No. 10C July 28, 2009 Page 1 of 5 EXECUTIVE SUMMARY Recommendation to consider a Proposed Settlement providing for Compromise and Release of Liens in the Code Enforcement Action entitled Deutsche Bank Trust Co., CEB No. 2007080008 relating to property located at 2414 58th Avenue NE, Naples, Florida. OBJECTIVE: ' That the Board of County Commissioners consider a proposed settlement with Watson Title Insurance Inc. on behalf of Deutsche Bank Trust Co., to release code enforcement liens, fines, civil penalties and operational costs in the total amount of $71,399.19 in exchange for payment of $2,979.19, in the Code Enforcement Board action entitled Collier County v. Deutsche Bank Trust Co, CEB No. 2007080008. CONSIDERATIONS: On April 24, 2008, The Code Enforcement Board found Melkys Borrego (Respondent) in violation of the Collier County Land Development Code for a garage enclosure with no permits, converted into living space with full size bathroom, kitchen, living room, laundry room, and bedrooms. Respondent was ordered, to obtain a Collier County Building Permit or Demolition Permit for the garage enclosure and alterations, all inspections, and obtain a certificate of occupancy within 120 days, or a fine of $250 per day would be imposed until the property was brought into compliance. Based on the above order, the Code Enforcement Board entered an order (dated May 28, 2009) imposing the lien. The Order Imposing Fine/Lien, which provided for continuing accrual of fines, was recorded at O.R. Book 4460, Page 2907, et seq., of the Official Public Records of Collier County. The property was brought into compliance by Deutsche Bank (who acquired the property through foreclosure action) by removing the unpermitted enclosure on June 2, 2009. When calculated at $250 per day for the noncompliance period of 284 days, combined with $399.19 in operational costs, the accrued lien amount is $71,399.19, Deutsche Bank has proposed to settle this matter for less than five percent (5%) of the lien amount; $2,979.19. Other bank settlement offers have been in the range of fifty percent of the lien amount. FISCAL IMPACT: The Bank has paid the $2,979.19 for consideration of this settlement offer. These funds have been deposited into the Code Enforcement Board Fines Revenue Account MSTD General Fund 111. If the settlement offer is approved by the Board, the remaining fines in the amount of $68,420.00 will be waived. GROWTH MANAGEMENT IMPACT: There is no growth management impact associated with this Executive Summary. Agenda Item No. IOC July 28, 2009 Page 2 of 5 LEGAL CONSIDERATIONS: This item has been reviewed for legal sufficiency and there are no outstanding legal considerations. This item is not quasi-judicial, and no ex parte disclosures are required. Approval of settlement offer requires a simple majority vote. This item is legally sufficient for Board action. -JW RECOMMENDATION:i The proposal settlement offer is less than five percent (5%) of the lien amount and staff does not recommend acceptance as historically the Board has accepted bank settlement offers of approximately fifty percent of the lien amount. If the Board approves the proposed settlement offer, authorize the Chairman to sign the attached Release and Satisfactions of Lien. PREPARED BY: Diane Flagg, Code Enforcement Director Page 1 of 1 Agenda Item No. 10C July 28, 2009 Page 3 of 5 COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS Item Number: 10C Item Summary: Recommendation to consider a Proposed Settlement providing for Compromise and Release of Liens in the Code Enforcement Action entitled Deutsche Bank Trust Co.. CEB No. 2007080008 relating to property located at 2414 58th Avenue NE, Naples, Florida. Diane B. Flagg, Director, Code Enforcement, CDES) Meeting Date: 7/28/2009 9:00 00 AM Prepared By Community Development & Date Marlene Serrano Investigative Supervisor Date CDES Code Enforcement 7/13/2009 9:21:59 AM Approved By Environmental Services Admin. Jeff Wright Assistant County Attorney Date County Attorney County Attorney Office 7/16/2009 8:21 AM Approved By Office of Management & Budget 7/1712009 10:13 AM Jeff Klatzkow County Attorney Date County Attorney County Attorney Office 7/16/2009 10:53 AM Approved By Office of Management & Budget 7/17/2009 1:28 PM Diane B. Flagg Code Enforcement Director Date Community Development & Code Enforcement 7116/2009 4:41 PM Environmental Services Approved By Judy Puig Operations Analyst Date Community Development & Community Development & 711612009 4:56 PM Environmental Services Environmental Services Admin. Approved By Joseph K. Schmitt Community Development & Date Environmental Services Adminstrator Community Development & Community Development & 711612009 5:26 PM Environmental Services Environmental Services Admin. Approved By OMB Coordinator OMB Coordinator Date County Manager's Office Office of Management & Budget 7/1712009 10:13 AM Approved By Mark Isackson Budget Analyst Date County Manager's Office Office of Management & Budget 7/17/2009 1:28 PM Approved By Leo E. Ochs, Jr. Deputy County Manager Date Board of County County Manager's Office 712112009 1:03 PM Commissioners f le: / /C:\AgendaTest\ Export\ 133 -July% 2028,% 202009 \10. %2000UNTY %20MANAGER %... 7/22/2009 WATSON TITLE INSURANCE, INC. July 8, 2009 Ms. Diane Flagg Director of Code Enforcement Collier County — Code Enforcement 2800 Horseshoe Drive N. Naples, Florida 34104 Agenda Item No. 10C July 28, 2009 1901 West Cypress Creek Road, 3f0 Floor Page 4 of 5 Fort Lauderdale, FL 33309 Main: (954) 771 -5522 Ext.647 Fax: (954) 928 -1563 EMail: andrew.velez @marshallwatson.com RE: Lien Reduction Request for CEB No. 2007080008 2414 58 h Avenue NE, Naples, Florida 34120 Folio #: 38840840007 Our file No. 28- 05857 -FL Dear Ms. Flagg; On behalf of our client Deutsche Bank, enclosed please find a proposed settlement offer for the lien filed in favor of Collier County for the above referenced property. I seek to obtain a partial release for real property only. I respectfully request that you consider in favor of the offer to reduce the lien to $2,979.19 based on the following facts: • The property was acquired through foreclosure action. • The previous owner committed the violations. • The violations were corrected and property was set into compliance. • The bank has incurred the cost of the repairs and corrections. • The bank has and continues to incur the cost of property maintenance. Our client would like to provide clear marketable title to new ownership as soon as possible. I request consideration in favor so as to not to burden the potential sale of the subject property. Thank you for your assistance and attention to this matter. Please don't hesitate to contact me, should you have any questions or require any additional information. Respectfully, Andrew J. Velez WATSON TITLE INSURANCE, INC. July 8, 2009 Agenda Item No. 10C July 28, 2009 1901 West Cypress Creek Road, 3f° Floor Page 5 of 5 Fort Lauderdale, FL 33309 Main: (954) 771 -5522 Ext.647 Fax: (954) 928 -1563 EMail: andrew.velez @marshallwatson.com SETTLEMENT OFFER FOR RELEASE OF LIEN Lien: OR Book: 4356 PG: 1845 CEB No. 2007080008 Property Owner. Deutsche Bank Trust Company Americas as Trustee Property Address: 2414 58`h Avenue NE Naples, Florida 34120 Folio #: 38840840007 LIEN AMOUNT: $71,399.19 ($71,000 lien + $399.19 operational cost) REQUESTED LIEN REDUCTION CONSIDERATION: $14,200.00 (20 % of lien amount) TOTAL EXPENDITURES (Cost to Property Owner) $11,620.00 Property maintenance to date $1,320.00 Cost of code repairs $8,800.00 - Misc costs $1,500.00 SETTLEMENT OFFER: $2,979.19 ($2,880.00 + 399.19(operationai cost))