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10-3244 - 2600 Quantum LLC Boca Tanning ClubThe City o f Boynton Beach Police Department "A CFA Accredited Lau, Enforcement Agenci 100 E. Boynton Beach Boulevard P.O. Box 310 Boynton Beach, Florida 334250310 Phone: (561) 742 -6100 Fax: (561) 7426185 G. Matthew Immler, Chief of Police Code Compliance Phone: (561 ) 742 -6120 Fax: (561) 7426383 LIEN REDUCTION TRANSMITTAL MEMORANDUM Date: August 9, 2011 To: City Commission From: Code Compliance Division RE: Code Compliance Case #10 -3244 In accordance with Ordinance number 001 -07, the enclosed "Final Lien Modification Order" is hereby forwarded to you for review. As required by Ordinance number 001 -07, the following procedures are to be followed: a A City Commissioner has seven (7) days from the rendition of the Order to request the City Manager's Office to place the case on a City Commission Agenda for review. (Space provided below for transmittal purposes) ❑ Said review must occur within thirty (30) days of the request for review. o Upon such review, the City Commission may take one of the following actions: a. Uphold the Code Compliance Board's recommendation in full. b. Over -rule the Board's decision in full. c. Modify the Board's Final Order. ❑ The City Commission shall direct staff to take action consistent with their review of the "Lien Modification Order". I, , hereby request the City Manager's Office to place the above referenced case on the next available City Commission Agenda for review. Signed on this date, the day of 2011. America's Gateway to the Gulfstream Meeting Minutes Code Compliance Board Boynton Beach, FL Motion July 20, 2011 Based on the testimony and evidence presented in the aforementioned case, and having been advised that the Respondent has complied with all lien reduction procedures set forth in Section 2 -84 through 2 -89 of the City of Boynton Beach Code of Ordinances, Vice Chair Yerzy moved that this Board reduce the fine instituted in the aforementioned case by virtue of this Board's Order of March 16, 2011 to an amount of $634.12 including administrative costs. Ms. Carroll seconded the motion that unanimously passed. Case No. 09 -3182 GMAC Mortgage LLC 112 SW 6th Avenue Officer Roy reviewed the case. The notice of violation date was October 1, 2009 for violations pertaining to the Property Registration Ordinance and trimming the palm tree. The hearing was held on January 20, 2010 and no one appeared. The compliance date established was February 4, 2010 or incur a fine of $150 per day. Compliance was documented on May 5, 2010 having 89 days of non - compliance. Steve Petrucci, 112 SW 6th Avenue, purchased the home from the Bank. Mr. Petrucci testified they painted the house, laid sod and brought the property into compliance before it was purchased. It was purchased with the existing issue. Larry Bell, 2711 W. Cypress Creek Road, Ft. Lauderdale, testified the lien did not show on the lien search. He stated this issue was a common problem with foreclosures. They purchase the property, obtained permits, improved them and when they find out about violations, they fix them. They closed on the property in February, 2011. The lien showed a few days prior to closing. Since they did not want to lose their deposit, they moved forward and closed. They then contacted Ms. Springer. Mr. Petrucci testified he spent $30,000 to $35,000 and they spent about $50,000 for the home. Chair Costantino explained the liens and fines run with the property and not the property owners. Motion Based on the testimony and evidence presented in the aforementioned case, and having been advised that the Respondent has complied with all lien reduction procedures set forth in Section 2 -84 through 2 -89 of the City of Boynton Beach Code of Ordinances, Ms. Carroll moved that this Board reduce the fine instituted in the aforementioned case by virtue of this Board's Order of January 20, 2010 to an amount of $2,634.12 including administrative costs. Vice Chair Yerzy seconded the motion that unanimously passed. Case No. 10 -3244 2600 Quantum LLC Boca Tanning Club 1035 Gateway Blvd #210 Meeting Minutes Code Compliance Board Boynton Beach, FL July 20, 2011 Officer Roy reviewed the case. The notice of violation date was November 5, 2010 for violations pertaining to non - payment of fire inspection fees. The hearing was held on December 15, 2010 and no one appeared. The compliance date established was December 30, 2010 or incur a fine of $150 per day. Compliance was documented on April 18, 2011 having 108 days of non - compliance. Dennis O'Shea, 112 S. Liquoria Park Road, Ft. Lauderdale, the court- appointed Receiver in a State Foreclosure Procedure known as Bank Atlantic vs. MPG Gateway and Monroe Presquege Group, testified the request was for a reduction to administrative costs. Mr. O'Shea explained there was a notice issue. The fee owner of the property is the entity that was cited, which is 2600 Quantum LLC, Quantum LLC is not the debtor, the developer of the property, nor was it the bank. It was the fee owner who gave the land lease to the debtor, that went into foreclosure with the bank, and ended in bankruptcy. He testified he is the court appointed Receiver in the State foreclosure action, but was allowed to continue to maintain the property by the bankruptcy court in Tampa. The first notice he received as the Receiver was in March 2011, when they were assessed the Order imposing penalties against 2600 Quantum. He commented the date stamp was unreadable on the receipt. In early April, he contacted Ms. Richardson and inquired about the procedure. He was told the property would be inspected and if it passed, they would pay a fee to come before the Board. A month later, the property had not been inspected. It ultimately took place, it passed, he paid the fee and was appearing to have the lien reduced. He commented if the members viewed the Center, it was in much better condition since the Receiver took over possession and all inspections were passed by the Fire Department. He requested the fines be reduced to administrative costs. When asked why the fee was not paid, Mr. O'Shea responded they continue to make demand on Boca Tanning to pay the fee, pay the rent, and they said they would. They produced various agreements to amend the lease, they worked with them and then they disappeared. He advised Boca Tanning also filed for bankruptcy. They owe $137,000 in rent. His point was the entity cited, 2600 Quantum did not have anything to do with the non- compliance of Boca Tanning, and as a Receiver, his job is to get the tenant to comply, not pay for them. When they vacated the property, he initiated the process. Motion Based on the testimony and evidence presented in the aforementioned case, and having been advised that the Respondent has complied with all lien reduction procedures set forth in Section 2 -84 through 2 -89 of the City of Boynton Beach Code of Ordinances, Vice Chair Yerzy moved that this Board reduce the fine instituted in the 7 Meeting Minutes Code Compliance Board Boynton Beach, FL aforementioned case by amount of $500 including unanimously passed. Case No. 09 -3474 July 20, 2011 virtue of this Board's Order of December 15, 2010 to an administrative costs. Ms. Carroll seconded the motion that Krause Lund Associates LLC 1599 SW 30th Ave. #14 Bold Construction Corp. Officer Roy reviewed the case. The notice of violation date was November 3, 2009 for violations pertaining to non- payment of fire inspection fees. The hearing was held on December 16, 2009 and no one appeared. The compliance date established was December 26, 2009 or incur a fine of $50 per day. Compliance was documented on July 5, 2011 having 555 days of non - compliance. Daniel Lewis, D.P. Lewis and Associates, the agent for the owner who was U.S. Bank National Association as Trustee, testified the Bank took title via a foreclosure action. They conducted a title search in March or April and no liens were found at that time. The property is under contract and during the contract process, another title search was done at the end of June and in early July learned about the lien. The fee was to be paid for by Krause Lund Associates or Lund and Associates or Bold Construction. The 2009 fees were not paid, but the 2010 fees were paid. When Lewis and Associates learned of the fee, they immediately spoke with Code. It was a title problem and the Trustee wants to clear the title and apply for a reduction for administrative costs only. Motion Based on the testimony and evidence presented in the aforementioned case, and having been advised that the Respondents have complied with all lien reduction procedures set forth in Section 2 -84 through 2 -89 of the City of Boynton Beach Code of Ordinances, Vice Chair Yerzy moved that this Board reduce the fine instituted in the aforementioned case by virtue of this Board's Order of December 16, 2009 to an amount of $1,134.12 including administrative costs. Ms. Carroll seconded the motion that unanimously passed. Case No. 10 -2534 General Electric Capital Corp. 3210 SW 14th Place Officer Roy reviewed the case. The notice of violation date was August 27, 2010 for violations pertaining to the Property Registration Ordinance and to mow overgrown yard, trim vegetation and remove trash and debris. The hearing was held on November 17, 2010 and no one appeared. The compliance date established was December 2, 2010 or incur a fine of $200 per day. Compliance was documented on June 30, 2011, having 209 days of non - compliance. Craig Barnett, Esq, Greenburg Traurig, 401 E. Los Olas Blvd, Suite 2000, Ft. Lauderdale, Counsel for General Electric explained his client spent over $20,000 to bring the property to a sellable state. The foreclosure began in February of 2009, prior CODE COMPLIANCE BOARD CITY OF BOYNTON BEACH, FLORIDA CITY OF BOYNTON BEACH Petitioner, vs. CASE NO. 10 -3244 2600 QUANTUM LLC BOCA TANNING CLUB Respondent(s). 1 LIEN MODIFICATION ORDER THIS CAUSE came before the City of Boynton Beach Code Compliance Board on the Respondent's application for lien reduction on July 20, 2011, pursuant to Chapter two, Article five of the City Code of Ordinances. The Board having considered the application, all the facts regarding the specific code or codes the appealing party was in violation of, the date of the original board hearing, the date the affidavit of compliance was issued, the current lien amount and all pertinent information relating to the specific case and being otherwise duly advised in the premises, it is hereupon, ORDERED AND ADJUDGED that: This Board has subject matter jurisdiction of this cause and jurisdiction over the Respondent. 2. The Respondent has met all the lien reduction procedures established by the City Code of Ordinances. 3. The lien imposed by the Board on December 15, 2010 on the Property located at 1035 Gatewav Blvd. #210, Boynton Beach, Florida, with the legal description of: QUANTUM PK AT BOYNTON BCH PL 8 PF OF LTS 83 & 84 LTG S OF & ADJ TO PB 100P26, LT 85, LTS 86 & 97 LYG S OF & ADJ TO PB 100P26, according to the plat thereof as recorded in Plat Book 57, Page 196, of the Public Records of Palm Beach County, Florida, PCN: 08- 43- 45- 16 -32- 000 -0832 is REDUCED TO $500.00. 1 4. The City shall prepare a release and satisfaction consistent with this Order. 5. The release and satisfaction shall be recorded in the public records of Palm Beach County at the Respondent's expense. 6. This Order is not final until the time period for appeal under the Code has elapsed and if appealed is properly disposed by the City Commission. 7. In the event that the property owner does not comply with the Code Compliance Board order, as approved or modified by the City Commission, within ninety (90) days of Commission's action, the Lien Reduction Order shall be of no further force or effect, and the original lien shall remain on the property. No extensions of the ninety (90) day period shall be permitted, and no further action by the Code Compliance Board or the City Commission shall be permitted regarding lien reduction. DONE AND ORDERED after hearing at City of Boynton Beach, Palm Beach County, Florida this n rr i day of , 2011. —&-t Michele Costantino, Chairperson CODE COMPLIANCE BOARD (3Y CLERK FILED AUG 0.8 2011 copies furnished: CITY CLERK'S OFFICE Honorable Mayor and the City Commission City Attorney City Clerk Respondent 2