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Minutes 06-17-20 MINUTES OF THE COMMUNITY STANDARDS SPECIAL MAGISTRATE CODE COMPLIANCE/LIEN REDUCTION HEARINGS HELD ONLINE VIA ZOOM BOYNTON BEACH, FLORIDA ON WEDNESDAY, JUNE 17, 2020, AT 9 A.M. PRESENT: Hilary Zalman, Esq., Community Standards Special Magistrate Adam Temple, Community Standards Director Vestiguerne Pierre, Community Standards Supervisor Tanya Guim, Community Standards Associate I. CALL TO ORDER Hilary Zalman, Community Standards Special Magistrate, called the Hearings to Order at 9:02 a.m. She thanked all for joining the online meeting and explained how the meeting would proceed. She explained how liens are incurred and advised the City will present its case first and then the respondents will present theirs. All testimony is given under oath. Respondents are able to present witnesses and question the officers and she will consider the arguments, recommendations and evidence of both parties, the gravity of the violations, efforts to comply and prior violations by the respondents, and make a ruling. Respondents will receive an order in the mail following the hearing. If the respondent wants to appeal her determination from this hearing, they are appealable to the City Commission. If a transcript is required, Florida Statutes require the respondent obtain one. Once the case is closed, the respondent can leave the meeting Once payment is made, the City will release the lien. II. INTRODUCTION AND SWEARING IN OF WITNESSES Tanya Guim, Community Standards Outreach Coordinator, administered an oath to all those intending to testify. IV. LIEN REDUCTION HEARINGS Case Hearing 1. Case No. 11-1196 Brent and Michele Kaufman Property Address: 602 NW 24th Avenue Type of Property: Single-Family Violation(s): Per the Notice of Violation Avi Amir, the new owner of the subject property, was present. The former owner was Green Point Mortgage Funding Inc. Mr. Amir explained he purchased the property under the name of DNA LLC Real Estate and he is listed as the manager. Hearing Minutes Community Standards Boynton Beach, Florida June 17, 2020 Officer Pierre, Supervisor, Community Standards, explained the subject property is located at 602 NW 24th Avenue. The prior property owner was Green Point Mortgage. Funding. The notice of violation was issued on May 12, 2011. The Code Compliance Hearing date was July 20, 2011, and no one appeared. The compliance date and fine was July 31, 2011, or incur a$100 a day fine.The violations were corrected on November 16, 2011, having 107 days of non-compliance and accruing a fine of $10,700 plus administrative fees. The respondents complied with all lien reduction requirements to appear. Ms. Zalman noted DNA Real Estate purchased the property with the liens and asked if they were aware of them at the time of purchase. Mr. Amir responded when they purchased the property, there were no open violations or liens. They tried to get the bank, who took title to the property in a judicial sale in 2011, to pay for it. The bank complied about 100 days after the violation, on November 16, 2011, but they did not request a lien reduction and it has been nine years the lien has been outstanding. As of today, their property has no liens or violations and his company never has. Mr. Amir requested the lien be reduced because there was a title defect on the property, due to commercial bank procedures and the banks failure to apply for a lien reduction or hearing. The property is a commercial property with a tenant. Ms. Zalman asked for the City's recommendation. Officer Pierre recommended 10% of the amount, which was $1,070 plus administrative fees of$730.15. Mr. Amir reiterated the violations were not due to them and they did not want to pay anything. They purchased the property three months ago. Ms. Zalman received confirmation DNA LLC did not have to do anything to bring the property into compliance as it was already in compliance. Ms. Zalman ordered a reduction to 7% plus administrative fees and costs for a total of $1,430.15. An order will be sent in the mail. 2. Case 15-2504 Morguard Boynton Town Center Inc. Property Address: 600 N. Congress Avenue Type of Property: Single-Family Violation(s): Per the Notice of Violation Andrew Hoyt, PNC Bank, was present, as the tenant for the building. They have a lease with Morguard on the facility. Mr. Hoyt explained the building is a vacant building PNC Leased to Mattress One in the 2013/2014 timeframe and Mattress One was cited. Ultimately, Morguard is responsible as the owner. Mr. Hoyt was present as the direct lease holder with Morguard as their lease language holds them responsible for all actions on the property. Mr. Hoyt is the regional vice president for PNC Realty Services and his group manages all of their real estate in Florida. . Officer Pierre presented the case. The notice of violation was issued November 6, 2015, as stated in the notice of violation. The compliance hearing date was December 16, 2015, and no one appeared. The compliance date and proposed fine was to comply by December 26, 2015, or incur a fine of$200 a day. The violations were corrected on May 2 Hearing Minutes Community Standards Boynton Beach, Florida June 17, 2020 9, 2016, having 134 days of non-compliance accruing a total fine of $26,800, plus administrative fees. They complied with all lien reduction processes to appear. Ms. Zalman inquired who brought the property into compliance. The violation was for failure to obtain a Business Tax Receipt and Mattress One brought the property into compliance in 2016. She commented the problem with these types of cases, is they last so long and no one was not responds to the notices from the City. There is an owner, tenant and subtenant. PNC learned of the lien in November 2019 after they evicted Mattress One for default and Mattress One vacated the property on October 31, 2019. PNC worked with Officer Pierre and he inspected the property. Currently, the property is vacant and PNC is maintaining the facility. Ms. Zalman asked if PNC filed suit for damages. Mr. Hoyt responded they have, but he was unaware of the amount that was discussed regarding a judgement and if the lien was included. She noted PNC can collect those fees. Mr. Hoyt did not believe they would collect much and wanted the reduction to limit their losses. Officer Pierre recommended a reduction of 10% of the amount, which would be $2,280 plus administrative fees of $730.15. Mr. Hoyt accepted the amount. The total was $3,010.15. 3. Case 19-2975 1701 S. Congress Avenue LLC Property Address: 1701 S. Congress Avenue Type of Property: Single-Family Violation(s): Per the Notice of Violation Officer Pierre presented the case. The notice of violation was issued on October 9, 2019, as stated in the notice. The hearing date was November 20, 2019, and no one appeared. The compliance date and fine was to comply by December 10, 2019, or incur a fine of $100 a day. The violations were corrected on May 27, 2020, having 168 days of non- compliance accruing a fine of $16,800 plus administrative fees. They complied with all lien reduction processes to appear. Issac Masracki was a member of the LLC and was the administrator/developer. He explained they have owned the property for 25 years. The registered agent was Daniel Statlander and the problem started when the mail was going to the post office box. He was told in December, everything was fine. He spoke with the City and updated the address and phone with the City to his phone and spoke with Officer Pierre a few times. Then he realized the notices were going to different location. This was the first time this happened in 25 years. Ms. Zalman requested documentation he was the owner as she did not know if he had the authority to appear to argue for the lien reduction. If he did not have the paperwork, they could suspend the hearing and he could return. Ms. Zalman explained the owner or a managing member of 1701 S. Congress Avenue LLC must sign and notarize an affidavit giving him permission to speak and argue for a lien reduction. Officer Pierre only had documentation of Statlander, and correspondence from Mazracki. Ms. Zalman tabled the hearing and advised he did not have the legal authority to appear. The City will forward the paperwork to him to ensure Mr. Statlander approves of him appearing. 3 Hearing Minutes Community Standards Boynton Beach, Florida June 17, 2020 4. Case 10-2442 Former Owner Shane McKean and Marc Langson Property Address: 124 NE 11th Avenue Type of Property: Single-Family Violation(s): Per the Notice of Violation Officer Pierre presented the case as stated. The notice of violation date was August 8 2010. The hearing date was October 10, 2010, and no one appeared. The compliance date and fine was to comply by October 30, 2010, or incur a fine of $100 a day. The violations were corrected on January 25, 2013, having 817 days of non-compliance at $100 a day, accruing a fine of $81,700 plus administrative fees. Officer Pierre reported the respondent complied with all lien reduction processes to appear. Ms. Mattis, the current owner of the property, purchased the property in November 2018 in her name as an investment property. The property originally was a vacant lot and the violations occurred with the prior owner. She was unaware of the lien as she purchased the property through a tax deed sale in November 2018. Officer Pierre confirmed the violations were corrected in 2013. Ms. Mattis explained when they purchased the property, there were issues with dumping that they took care of including trimming trees and brush. They then cleared the property and built a home. Ms. Mattis learned about the outstanding liens when they went to sell the home. The house cost$190K to build and they paid lot mowing liens prior to attending. The property is currently under contract for$274K. Ms. Mattis did a good job and beautified the property, built a home and cleared many issues. Ms. Zalman sought a recommendation. The City recommended a reduction to 5%, which was $4,085 plus administrative fees of$730.15 totaling $4,815.15. She explained the order would be sent via mail. Ms. Zalman concluded the hearings, tabling case number three and the other three orders will be sent in the mail. Mr. Temple explained for next month's hearings they will hear all of the fine certifications prior to COVID-19 and depending on how she ruled, it may change the order. The hearings are still case-by-case, but there are some unusual cases, which may require two different orders depending on how she rules. Ms. Zalman explained they will have hear from the City if the fines continued to accrue or if there was a hold instituted. She would have to calculate whatever the city procedures were. Mr. Temple explained the plan is to have an in person meeting next month at the new location. The hearings were concluded at 9:40 a.m. Catherine Cherry Minutes Specialist 4