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10-1995 - Townhouse Apartments LTDDate: To: From: RE: Police Department "A CFA Accredited Law Enforcement Agency" 100 E. Boynton Beach Boulevard P.0. Box 310 Boynton Beach, Florida 33425-0310 Phone: (561) 742-6700 Fax., (561) 742-6185 G. Matthew Immler, Chief of Police Code Compliance Phone. (561) 742-6120 Fax: (561) 742-6383 June 3, 2013 City Commission Code Compliance Division Code Compliance Case #10-1995 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: Ej 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) u 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. ij 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 2011, America's Gatez.vay to the Gulfstream oil Michele Costantino, Chair Gary Cole, Second Vice Chair Alan Borrelli Carol Brenner RoseMarie Yerzy Kathleen Carroll • Shana Bridgeman, Assistant City Attorney Diane Springer, Code Compliance Coordinator Chair Costantino called the meeting to order at 6:29 p.m. A quorum was present. 11. Approval of Agenda Diane Springer, Code Compliance Coordinator, requested Case No. 12-1787 be tabled to the next Code meeting on June 19, 2013, Motion Ms. Yerzy moved that the aforementioned case be tabled until the Code Compliance Board meeting to be held on June 19, 2013, Vice Chair Cole seconded the motion that unanimously passed. Ill. Swearing in of Witnesses Attorney Bridgeman explained the hearing procedures and administered an oath to all those intending to testify. She confirmed with the applicants they were notified of the process to be followed. IV. New Business Case No. 10-1995 Townhouse Apartments LTD 301 N Federal Hwy. Ms. Springer presented the case. The notice of violation was sent on July 8, 2010, for violations pertaining to restoring the landscaping back to the plan on file with the City and to remove the dead Palm Tree. The case was heard on September 15, 1 Meeting Minutes Code Compliance Lien Reduction Boynton Beach, PL May 22, 2013 2010, and no one appeared. The compliance date and fine set by the Board was to comply by October 15, 2010, or a fine of $150 per day would be incurred thereafter. The violations were corrected on April 23, 2013, having 920 days of non-compliance and a fine of $138,000 accrued. The case met all the requirements for a lien reduction, and the application fee was paid. Ms. Springer was first contacted by Attorney Gary Resnick through the City Attorney's Office on February 7, 2013, and she received an email requesting information on how to obtain the original site plans from the City. He was referred to Planning and Zoning for assistance, and they responded back on April 4, 2013, explaining what needed to be done. Another email dated April 11, 2013, indicated that all but the benches were finished. The benches were ordered and on April 20, 2013, another email was received indicating the work was complete. The work was inspected and verified. The City's Arborist also emailed indicating the landscaping was brought up to Code, Gary Resnick, Esq. from the firm of Gray Robinson, 401 E. Las Olas Boulevard, Ft. Lauderdale, was present with Alberto Perez, the CVS Regional Manager. Attorney Resnick explained CVS values its relationship with the City. They have always taken steps to correct any violations when brought to their attention. In this case, the violation was sent to CVS's landlord in 2010 and CVS did not learn about the lien until January 2013, Once they learned of it, a CVS representative contacted City staff and then contacted him and they worked to correct the violations as quickly as possible. CVS spent over $46,000 to restore the landscaping. The landscaping was done in six weeks and they installed new benches, All the violations were corrected within 10 weeks. They are a good corporate partner. They pay in excess of $160,000 in property taxes to the City and employ over 100 people who participate in numerous activities, such as providing free flu shots to indigent residents and other community services. CVS was requesting the Board waive the fines and pay the administrative fees in the amount of $634.12. Chair Costantino inquired why the Board was addressing CVS and not Townhouse Apartments, Ltd. Ms. Springer learned CVS is responsible for taking care of the property, but the Board cites the property owner. Attorney Resnick explained he represents both the property owner and CVS. The property owner is not Townhouse Apartments, Ltd. It was LPG Bessamer A.L. LLC, a Texas company. Townhouse Apartments, Ltd. merged with Bermuda company in 2006, and in January of this year, Bermuda company sold the property to LPG Bessamer A.L. LLC. It was in the course of that sale the title search was done and they learned of the lien and contacted CVS. It was also thought that transaction may explain why Townhouse Apartments never notified CVS. K Meeting Minutes Code Compliance Lien Reduction Boynton Beach, FL May 22, 2013 5R"!" --HER In the past, when Townhouse received a notice of violation concerning its properties, they would forward it to CVS. There were a few minor violations in 2004 and 2005 that CVS corrected, but there were no notices received from 2005 to the present, Attorney Resnick learned, through the City's file, that staff sent the notice of violation to Townhouse Apartments Ltd. at a Miami address and two individuals from Townhouse Apartments. The return receipt was only returned by Townhouse Apartments Ltd,, but the information was never forwarded. Chair Costantino inquired if the company notified the Property Appraiser's Office about the change in ownership so in the event future issues arose, the County records would accurately reflect the owner. Attorney Resnick was aware the transaction only recently closed and would check with the corporate attorney. Ms. Springer stated for the record, she checked the Property Appraiser's Office. As of May 17th, it still listed Townhouse Apartments as the property owner; however, the County is four to six weeks behind in their recording. While property may have closed, it was still not recorded in the Property Appraiser's Office. Chair Costantino thought the first change in 2006 should have been reflected, but Attorney Resnick explained the corporate entity kept the property. Vice Chair Cole inquired why a Code Officer had not made contact with CVS since the fines started. Ms. Springer explained once the lien is placed on the property, staff does not have the manpower to continuously follow-up on a property that has a lien. If something else arises, they make contact. Vice Chair Cole found it hard to believe CVS had no knowledge of the matter, Ms. Springer explained the case was initiated by Officer John Herring who was no longer with the City and she had no further information, An inquiry was made whether a lien search was done in relation to the merger in 2006. Attorney Resnick explained he was not representing CVS or the property owner at that time and CVS would not have been involved in the merger. It was a matter between the landlord and the company it merged with, CVS only received notice from the new landlord to pay rent to a different address. Ms. Brenner inquired about CVS's protocol to take care of their properties, and Ms. Springer distributed photographs of the property to the Respondent and the Board. Alberto Perez, CVS Regional Manager, explained they use GroundsGroup Landscaping, who is a licensed vendor and they service their properties. In this case, there was missing or dead vegetation, which they may have removed when they cleaned up the property, Typically, if the corporate office notifies him of a violation, it is addressed right away, and they hire a vendor to ascertain what is occurring. In this case, he was not aware of the violation, but once they learned of the lien, he contacted the consultant to meet on the premises, CVS had to obtain the original landscape plans, and when they did, he found out there were several items missing, They then addressed the matter according to the plan. The landscaper may not have held to the 3 Meeting Minutes Code Compliance Lien Reduction Boynton Beach, FL May 22, 2013 landscape plan on file, which may have caused the disconnection. Mr. Perez also noted there was a revision made to the plan and staff would find dead vegetation that did not belong there. They assured the members CVS would spend the money to meet the plan, but some of the landscaping that is currently onsite does not belong there and will die and it will be replaced with something that will survive, Chair Costantino inquired how often Mr. Perez inspects the property. Mr. Perez explained he does what he can, but he runs 1,200 stores. If something is noticed, he is contacted and the matter is addressed. Mr. Perez started with CVS in October of 2012 and started noticing many things. He pointed out there is another store nearby which already had trees replaced and mulch added. Based on 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. Yerzy moved that this Board reduce the fines instituted in the aforementioned case by virtue of this Board's Order of September 15, 2013, to an amount of $12,634.12, including administrative costs. Vice Chair Cole seconded the motion that unanimously passed. Case No. 11-136 Deutsche Bank Trust Co. 1019 Fairfax Circle Ms. Springer presented the case. The notice of violation was sent on January 20, 2011, for violations pertaining to registration of foreclosed properties. The case was heard On March 16, 2011, and no one appeared. The compliance date and fine set by the Board was to comply by March 26, 2011, or a fine of $100 per day would be incurred thereafter. The case complied on December 22, 2011, having 270 days of non- compliance and a fine of $27,000 accrued. Ms. Springer was first contacted in March for the lien reduction. An inspection occurred on March 4, 2013, and it was eligible for lien reduction at that point. They had no other violations on the property, and the property taxes and water bills were current. She complimented the Respondent that the property was in perfect condition when they inspected it for the lien reduction meeting. Richard Cary, representing Housevilla LLC and Kristin and Terry Burnstein, was present and explained Deutsche Bank no longer owned the property. It was bought by Housevilla LLC at a foreclosure sale on July 5, 2012, six months after the violations occurred- By that time, the property was already brought to Code by Deutsche Bank. There were several mortgages on the property. The second mortgage was first foreclosed on by Deutsche Bank, and was then foreclosed on by the senior mortgagee, another Deutsche Bank. His client was the owner who purchased the property at the 4 CITY OF BOYNTON BEACH Petitioner, vs. TOWNHOUSE APARTMENTS LTD, Respondent(s). CODE COMPLIANCE BOARD CITY OF BOYNTON BEACH, FLORIDA CASE NO. 10-1995 LIEN MODIFICATION ORDER THIS CAUSE came before the City of Boynton Beach Code Compliance Board on the Respondent's application for lien reduction on May 22, 2013, 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: 1. 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 FSeptember 15, 2010 on the Property located at 301 N. Federal Hwy., Boynton Beach, Florida, with the legal description of: ROBERT ADD, ELY 81.11 FT OF BLK 7 LYG N OF & ADJ TO BOYNTON BEACH BLVD R/W, BLK 8 (LESS S 40 FT BOYNTON BEACH BLVD & E 35 FT DIXIE HWY R/WS) & ABND 20 FT ALLEY LYG BET, according to the plat thereof as recorded in Plat Book 1, Page 51, of the Public Records of Palm Beach County, Florida, PCN: 08-43"45-21-26-007-0020 is REDUCED TO $12,634.12. The City shall prepare a release and satisfaction consistent with this Order. The release and satisfaction shall be recorded in the public records of Palm Beach County at the Respondent's expense. 5. 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 day of 2013. ATTEST: AM C Y CLERK copies furnished: Honorable Mayor and the City Commission City Attorney City Clerk Respondent \,M�a3a� Michele Costantino, Chairperson CODE COMPLIANCE BOARD