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14-836 - 521 NE 2nd StreetPolice Department "A CFA Accredited Law Enforcement Agency" 100 E. Boynton Beach Boulevard Boynton Beach, Florida 33425-0310 Phone, (561) 742-6100 Jeffrey Katz Chief of Police Code Compliance Division Phone: (561) 742-6120 FAX: (561) 742-6838 LIEN REDUCTION TRANSMITTAL MEMORANDUM Date: January 22, 2015 To: City Commission From: Code Compliance Division RE: Code Compliance Case #14-836 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: o 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) Lj Said review must occur within thirty (30) days of the request for review. Lj 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. u The City Commission shall direct staff to take action consistent with their review of the "Lien Modification Order". 1, , 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 , 20_. Meeting Minutes Code Compliance Special Magistrate Hearings Boynton Beach, Florida November 19, 2014 Based on the testimony, Ms. Ellis reduced the $59,000 lien to $2,000 plus $730.50 in administrative costs. Case No. 13-1459 Lynn Cave 423 Bayfront Drive Ms. Springer explained a Notice of Violation was sent on July 10, 2013, regarding an inspection for a Business Tax Receipt. The case was heard October 16, 2013, and no one appeared. The compliance date was to comply by October 31, 2013, or a fine of $150 a day would be imposed thereafter. The violations were corrected on October 17, 2014, accruing a fine of $53,500 and administrative fees of $634.12. Ms. Springer explained she was contacted on October 16, 2014, for lien reduction information. An inspection revealed the property was in compliance and all was up to date, Lynn Cave, the property owner and Bracy Livingston, the settlement attorney for the current sale of the property, were present. Ms. Cave explained she was selling the property at a great loss and in conducting the title search, learned of the lien. She advised she never got a letter or notice about the matter. She emailed Ms. Springer and made application to come, but had not paid the $60 because she did not know where to pay. Ms. Cave advised the property was rented about 50% of the time. Since staff could not determine when it was rented, they used the date the Code Officer verified it was vacant. The address used was from the Property Appraiser and Tax Collector. She did not know a Business Tax Receipt was needed to have a rental property, Attorney Livingston commented when she presented Ms. Cave with information on the lien, she had no idea of it. She called immediately, and the home was being sold. She hoped this would not be an issue with the sale. V , -� Based on the testimony of eligible for the lien reduction administrative costs $634.12 the City and Respondent and given the Respondent is . Ms. Ellis reduced the lien from $52,500 to $2,000 plus Antonio Reale 521 NE 2 d Streei Ms. Springer explained the Notice of Violation was sent on April 8, 2014, regarding a Business Tax Receipt and inspection, outside storage, trash and debris. The case was heard June 18, 2014, and Heather Grimes appeared. The compliance date and fine was June 28, 2014, or a fine of $50 a day would be imposed thereafter. The violations were corrected on September 22, 2014, accruing a fine of $4,250 and administrative fees of $634.12 [us Meeting Minutes Code Compliance Special Magistrate Hearings Boynton Beach, Florida November 19, 2014 Ms. Springer did not remember when Mr, Reale contacted her. He thought he was in compliance because he applied for the Business Tax Receipt, but he had not called for the inspection, When an inspection occurred, the Business Tax Receipt was issued. She was contacted again for a lien reduction inspection and there were some minor violations, which Ms. Springer reviewed, and a water bill of $431.03 to be paid. When the property was re-inspected October 16, 2014, it was eligible for lien reduction. Heather Grimes, for Property Manager for Mr. Reale, explained she had attended the hearing in June and she was advised they had 90 days to comply, Mr. Reale was in the process of selling the property, which sold on October 1, 2014. The new owner made all the repairs. Prior to that, she called several times for an inspection. Each time there were issues, and it took 85 days to address them. She did not know they were being charged for each inspection. Ms. Springer apprised Ms. Grimes they were not charged for the Business Tax Receipt inspection. There were four inspections involved with the entire case. Given the testimony by the City and the Respondent and staff indicates the property is eligible, Ms, Ellis reduced the lien from $4,250 to $800 plus $634,12. Case No. 11-2952 American Asset Holdings LLC 1660 Renaissance Commons Blvd. 2124 Ms. Springer explained a Notice of Violation for this property was sent on October 24, 2011, for permits for interior renovations and demolition. The case was heard on January 18, 2012, and no one appeared. The compliance date and fine set was January 28, 2012, or a fine of $250 a day would be imposed thereafter. The violations were corrected on June 12, 2014, accruing a fine of $216,250 plus administrative costs. The case initiated from a red tag from the Building Department. Ms. Springer was contacted in March 2014 and was advised the matter pertained to Chinese drywall and there was litigation ongoing between Renaissance Commons and the unit owner. A Stop Work Order was issued by the Building Department so they had to wait for litigation to conclude before they could do anything. There were also outstanding property taxes. Wayne Schwartz, Counsel for Jason Banks, the property owner, explained the property was in the name of a corporation because his accountant advised him to put it in the name of a company when he was divorcing. Mr. Banks obtained the property in 2011 and then learned the unit had the toxic Chinese drywall. He made arrangements with Scott Design and Construction to do the interior demolition and remove the drywall. The complex has about 300 units. All of the members in this complex were part of a class action suit in 2009 against manufacturers of the drywall. There was companion 11 CITY OF BOYNTON BEACH Petitioner, vs. ANTONIO REALE Respondent(s), CITY OF BOYNTON BEACH, FLORIDA CASE NO. 14-836 LIEN MODIFICATION ORDER THIS CAUSE came before the City of Boynton Beach Code Compliance Magistrate on the Respondent's application for lien reduction on November 19 2014, pursuant to Chapter Two, Article Five of the City Code olOrdinances. The Magistrate 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 Magistrate 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: I , This Magistrate 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 Magistrate on June 18, 2014 on the Property located at 521 NE 2"" St., Boynton Beach, Florida, with the legal description of. C W COPPS ADD LTS 74 & 76/LESS W 25 FT STR/W, according to the plat thereof as recorded in Plat Book 7 Page 56, of the Public Records of Palm Beach County, Florida, PCN: 08-43-45-21-05-000-0740 is REDUCED TO $1,434, 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 Magistrate's order, as approved or modified by the City Commission, within ninety (90) days of Commission's action, the Lien Reduction Order shalt 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 ftirther action by the Code Compliance Magistrate or the City Commission shall be permitted regarding lien reduction. [SON 5 AND ORDE ED after hearing at City of Boynton Beach, Palm Beach County, Florida this/ � day of Carol D. Ellis CODE COMPLIANCE MAGISTRATE ATTEST-. , CITY CLERK copies furnished I lonorable Mayor and the City Commission City Attorney City Clerk Respondent JED 2514 CI