Item Q03BOARD OF COUNTY COMMISSIONERS
AGENDA ITEM SUMMARY
Meeting Date: March 18, 2015 MAR Division: County Attorney
Bulk Item: Yes XX No _ Staff Contact Phone #:_Lisa Granger 305-292-3470
AGENDA ITEM WORDING Approval of a settlement agreement in code case CE0320083 between Monroe
County and Magnolia TC 2 REO, LLC regarding a property located at 28213 Helen Avenue, Little Torch Key.
ITEM BACKGROUND: Under the proposed settlement agreement, Magnolia TC 2 REO, LLC ("Magnolia"), the
current property owner, would pay a total of $23,000 on or before April 7, 2015 and demolish the non -compliant
structures on or before April 17, 2015 in exchange for a partial release of code lien. Under the proposed agreement,
if these deadlines are not met, the fine amount reverts to the original amount.
Magnolia was not the owner who caused the violations but rather a company that purchases tax certificates and
purchased the property along with the County's lien through a tax deed on November 6, 2013 for $11,940.46. The
County's lien survived the tax sale and deed by operation of law. This property was before the Board on December
10, 2014 when the property owner offered to pay $16,350 ($10,000 for the fines and $6,350.00 for the costs). The
Board rejected that offer and directed staff to negotiate further with the property owner.
The underlying violations arose when the prior owners Christopher and Laurie Conn made extensive renovations to
the mobile home without permits, inspections or approvals. The fines and costs that accrued during the time of the
Conns' ownership total $1,777,550.00. The accrued amount of the fines since Magnolia's ownership total
$184,800.00. The outstanding costs are $6,350.00. The total amount of the County's lien is $1,968,700.00. The
County obtained a judgment against the Conns on April 7, 2011.
Based upon the circumstances of the ownership of the property and the willingness of the new owner to gain
compliance, the County Attorney is recommending that the County accept payment of a reduced fine in the amount
of $16,650 and full payment of costs in the amount of $6,350.00, provided that the deadlines set forth in the
proposed settlement agreement are met. The settlement agreement will not alter the County's judgment against the
original property owners.
PREVIOUS RELEVANT BOCC ACTION: On December 10, 2014 the BOCC rejected an offer by
Magnolia.
CONTRACT/AGREEMENT CHANGES: N/A
STAFF RECOMMENDATIONS: Approval of Settlement Agreement.
TOTAL COST: INDIRECT COST: BUDGETED: Yes No
DIFFERENTIAL OF LOCAL PREFERENCE:
COST TO COUNTY: SOURCE OF FUNDS:
REVENUE PRODUCING: Yes o_ AMOUNT PER MONTH Year
APPROVED BY: County Atty - MB/Purchasing _ Risk Management
DOCUMENTATION: Included X Not Required
DISPOSITION: AGENDA ITEM #
* REVISED * - includes executed revised
Settlement Agreement rcvd/stamped 3/6/1.5.
u,.
MONROE COUNTY, FLORIDA BOARD
COUNTY COMMISSIONERS, Case No.: CE03120083
Petitioner,
V.
RECEIVED
MAGNOLIA TC 2 REO, LLC, MAR - 6 2015
Respondent.
SETTLEMENT AGREEMENT
Petitioner, The Monroe County Board of County Commissioners ("Monroe County")
and Magnolia TC 2 REO, LLC ("Respondent"), successor in interest to Christopher and Laurie
Conn, hereby agree to settle the lien imposed in Code Compliance Case No.: CE03120083
("Case") and recorded at Book 2672, Page 1113 of the Official Records of Monroe County
regarding real property owned by Respondent and further described as:
Block 3, Lot 16, The Ladies Acre, Is'Addition, PB5-102, Little Torch Key A/K/A
28213 Helen Avenue, Little Torch Key, Monroe County Florida, RE: 00223240-
000000 ("Subject Property").
Settlement terms, subject to approval by the Monroe County Board of County
Commissioners (`BOCC") are as follows:
1. The Settlement Agreement will be presented for approval to the BOCC at its
regular meeting scheduled for March 18, 2015; said Settlement Agreement will not be deemed
final until it has been executed by the BOCC; if the BOCC does not to approve this settlement
agreement, this agreement shall be null and void and the parties' positions will remain as they
were prior to execution of this instrument.
2. On or before April 7, 2015, Respondent shall remit, either by certified check or
money order, the amount of Twenty -Three Thousand and No/100ths Dollars ($23,000.00)
("Settlement Amount"), payable to the Monroe County Code Compliance Department. Upon
deposit of the Settlement Amount, Monroe County shall provide a receipt to Respondent.
3. On or before April 14, 2015, Respondent shall apply to the County for a permit to
demolish all structures located at 28213 Helen Avenue, Little Torch Key, Florida that were
found in violation under the case.
4. Respondent shall take all necessary steps pursuant to the demolition permit to
bring the Subject Property into compliance on or before April 28, 2015. "Necessary steps" shall
include demolition of all structures located at 28213 Helen Avenue, Little Torch Key, Florida
that were found in violation under the Case and receipt of passed final inspection under the
demolition permit.
5. Once the Respondent has made full payment and achieved compliance of the
Subject Property, the County will provide the Respondent with(a) a Partial Satisfaction of lien
releasing Respondent Magnolia TC 2 REO, LLC and the subject property from the lien; and (b)
written documentation of closure of Code Compliance Case No.: CE03120083. The partial
release of lien issued in favor of Magnolia TC 2 REO, LLC and the subject property shall not be
construed to release Christopher and Laurie Conn, the original violators in the matter, or any
property other than the subject property from the underlying lien.
6. If the Respondent fails to make payment in the full amount ($23,000.00) by April
7, 2015 and/or cure the violations to the satisfaction of the Monroe County Code Compliance
Department by April 30, 2015, then the amount of the fines and costs shall revert to the full
amount, the County will not issue a Partial Release of Lien and may at its option take further
steps to enforce the Monroe County Codes.
17. Each party shall each bear its own costs and attorney's fees.
AGREED AND ACKNOWLEDGED, as of the last date set forth below.
RESPONDENT
MAGNOLIA TC 2, LLC,
by its Manager/Member:
Magnolia TC 2, LLC,
by its Manager/Member:
Magnolia TC 2 MM, LLC,
by its Manager/Member
Magnolia Advisors, LLC,
by its Manager/Member
Magnolia FW]ridfi, LLC
By:
Manager
Printed Name:
Witness as to Manager t�l
Sworn to d subscribed before me this day of , 2015, by
Y _ _ , who (is personally known to me) (or produced the following form of
government -issued, photographic identification):
LANCE REIBELING
:•� '."9 Notary Public - State of Florida
My Comm. Expires Jul 14, 2018
�'•�fo.��o�� Commission # FF 141589 muu�
f
(SEAL)
Attest: Amy Heavilin, Clerk
Deputy Clerk
Date
Notary Public —,,oatie4 Florida at Large
MONROE COUNTY BOARD OF
COUNTY COMMISSIONERS
Danny L. Kolhage
Mayor
Date
ATTORNEY