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Item P5 P.5 Coty f � ,�� ,' BOARD OF COUNTY COMMISSIONERS �� Mayor David Rice,District 4 The Florida Keys � Mayor Pro Tem Craig Cates,District 1 y Michelle Coldiron,District 2 James K.Scholl,District 3 Ij Holly Merrill Raschein,District 5 County Commission Meeting September 21, 2022 Agenda Item Number: P.5 Agenda Item Summary #11023 BULK ITEM: No DEPARTMENT: County Attorney's Office TIME APPROXIMATE: STAFF CONTACT: Bob Shillinger(305) 292-3470 TBD (time certain requested) AGENDA ITEM WORDING: Presentation of a settlement offer in the case of Monroe County v. Buirley and Jay Archbell, P.A., Case No. 19-CA-565-K; also, authorization for the County Attorney to draft and execute documents consistent with the Board's direction. ITEM BACKGROUND: The purpose of this agenda item is to present a settlement offer from Defendant Jay Archbell, P.A., in the code compliance lien foreclosure case of Monroe County v. Buirley and Jay Archbell, P.A., 161h Jud. Cir. Case 19-CA-565-K. The case involves property located at 3 El Monte Lane, Big Coppitt (RE 4 00157130-000000) ("Property"). In October 2018 the Building Official determined that the mobile home structure on the Property, which was substantially destroyed by Hurricane Irma, was so dilapidated that it was unsafe and a fire hazard and should be repaired or demolished. When the property owners at the time (Kenneth and Anita Buirley) failed to do so, the matter was referred to Code Compliance which initiated code cases CE 18050033 and CE 18070008. The Buirleys, who lived in Mississippi, failed to take any action, and a Final Order was issued by the Special Magistrate in February 2019. The Final Order was recorded in the Official Records of Monroe County, book 2935 pages 1170-1171, and thereafter became a lien on the Property per F.S. 162.09. The two code compliance cases alleged that the property owners violated a total of six (6) Code sections of the Monroe County Code, as follows: Daily fine per Final Order CE18050033: Permitting an unsafe nuisance on improved MCC 21-76 roe $150 Packet Pg. 3330 P.5 Unsafe building condition with respect to fire MCC 6-27 b 1 b. hazard or ingress/egress $150 MCC 6-27 b 2 b. Unsafe structure, dilapidation $150 MCC 6-27 b 2 c. Unsafe structure, building partially destroyed. $150 CE18070008: MCC 21-20 a Premises to be cleaned $100 MCC 21-20 b Premises to be mowed $100 Following BOCC approval to initiate litigation, the complaint was filed on 6/21/2019 and a notice of lis pendens was recorded in the Official Records of Monroe County on the same day. Clerk's default judgments were entered against the Buirleys on 10/10/2019 and default judgments were entered against the Buirleys on 8/14/2020. However, on 4/15/2021, the Buirleys were able to sell the Property to Jay Archbell, P.A., ("Archbell") for $1,000.00. Therefore, on 7/7/2022, at the County's request, the Court issued an order adding Archbell as a party defendant. Under Florida law, the violations on the Property "run with the land." Therefore, Archbell took title to the Property subject to the lien and the accumulated fines and costs. The causes of action in the complaint were for(1) injunctive relief(to compel the property owners to correct the violations); (2) foreclosure; (3) writ of execution; and (4) money judgment. On 11/9/2020, the Court entered an Order granting a motion from the County, giving the County permission to demolish the structures on the Property and to clear and mow the Property, in order to abate the hazards. However, when Archbell acquired the Property, he took steps to demolish the structures and clean up the Property. The property is now vacant. Code Compliance confirmed that the code violations were corrected and the Property was compliant on 6/24/2021 (70 days after Archbell took title to the Property). (Mr. Archbell advises that he spent approximately $30,000 on demolition, cleanup, and the payment of two years' of back taxes on the Property.) Fines stopped accumulating as of 6/24/2021. Accumulated fines and costs to that date are as follows: CE18070008: Fines $195,800.00 + costs of $ $ 1030.42 CE18050033: Fines $507,600.00 + costs of$ 2590.36 Total: $707,020.78 ($703,400 fines + $3,620.78 costs) County Resolution No. 148-2008 states that the County will accept a minimum of 25% of accrued fines and costs in settlement once the code violations have been corrected. In January 2022, Archbell offered to settle the fines and costs for $16,500. This offer was rejected. In July 2022, Archbell offered to settle fines and costs for $75,000. Factors in support of accepting the settlement offer: - Once he purchased the Property, Archbell corrected the code violations promptly, within 70 Packet Pg. 3331 P.5 days. - If Mr. Archbell were only held responsible for fines and costs that accrued during the 70 days that he owned the Property, total fines and costs would be as follows, and his settlement offer would exceed the fines and costs during the time that he owned the Property: o CE18050033 $ 4 counts at $150/day each from 4/15/2021 to 06-24-21 (compliant) (70 days) = $42,000.00 o CE18070008 2 counts at $100/day each from 4/15/2021 to 06-24-21 (compliant) (70 days) = $14,000.00 Total: $56,000 fines + $3,853.99 costs - Resolution of the code liens and the court case will increase the likelihood that the Property will return to being a productive piece of property generating property taxes. Factors in favor of rejecting offer: ffer: - The settlement sum represents only 10.6% of accumulated fines and costs. Even if the figure of $30,000 to correct the code violations (including payment of taxes) were added, the resulting amount is still only 15% of total fines and costs. - Accepting this low settlement offer will allow Archbell to reap a windfall. The estimated value of the property according to Zillow is approximately $390,000. He will have paid $76,000 ($1,000 purchase price + $75,000 settlement) for a property worth approximately $390,000 according to Zillow. Under the Florida Rules of Professional Conduct, the County Attorney's Office is obligated to present this offer to the BOCC for consideration. The settlement offer, is accepted, will be paid within 15 days. If the settlement offer is rejected, the County Attorney's Office will continue to litigate the lien foreclosure case, and will likely be filing a motion for summary judgment shortly. PREVIOUS RELEVANT BOCC ACTION: 4/20/2022: closed session held CONTRACT/AGREEMENT CHANGES: N/A STAFF RECOMMENDATION: Reject settlement offer as drafted unless owner accepts additional requirement to deed restrict the property as an affordable housing unit for 99 years; otherwise seek foreclosure or full payment. DOCUMENTATION: BOCC Ltr_000878 FINANCIAL IMPACT: Packet Pg. 3332 P.5 Effective Date: Expiration Date: Total Dollar Value of Contract: Total Cost to County: Court Reporter Costs Current Year Portion: Budgeted: Yes Source of Funds: CPI: Indirect Costs: Estimated Ongoing Costs Not Included in above dollar amounts: Revenue Producing: If yes, amount: Grant: County Match: Insurance Required: Additional Details: REVIEWED BY: Cynthia Hall Completed 08/26/2022 6:11 PM Bob Shillinger Completed 08/28/2022 3:15 PM Budget and Finance Skipped 08/28/2022 3:14 PM Lindsey Ballard Completed 08/31/2022 12:06 PM Board of County Commissioners Pending 09/21/2022 9:00 AM Packet Pg. 3333 August 8, 2022 Dear Cynthia Hall,Assistant Attorney Monroe County Board of County Commissioners, I aim writing to request a lien miitig,aition and or payoff to the BOCC or the liens on 3 Cl Monte Ln:.Coppitt Key Florida. Here are two factors that are pertinent,and I hope the BOCC and yourself will:at least consider the following,. First factor is I did not create the liens and the property was in compliance as,soon as humanly possible. LO W The previous owners, Mr.& Mrs,. Bull were elderly and frail when Hurricane Irma caused damage to LO their home. They received the property from a friend they cared for who was terminally ill. The Buirleys' had no money to fix or repair and subsequently moved back to Kentucky. They received the notices and, it is my understanding, ignored them because they had no money. I do understand it is a big no-no not to respond but not sure it would have changed the circumstances, found the property on the county's llist of properties being sold for taxes in,April 202 1. 1 contacted the Buirleys' and they expressed the lack of funds to pay the$9444.88 in black taxes to redeem the taxes and stop the salte/auction. I paid a minimal fee to purchase the property on April 15, 2021. 1 was not told of any liens. 11 searched 1public records and found the county sued the aind had a judgement to remove the mobile, I also saw liens for$100 per day and $150 per day, but there was no total and it 0 9= was beyond comprehension the liens would be many times higher than the property value. 0 E Please consider the timeline of getting the property in compliance, On April 21, 20211 recorded the purchase with the Monroe County Clerk and paid taxes in the amount of$9444.88. The following week I U) called the County Code Department and spoke with an Attorney. I was notified of the aimount of liens. I asked for a lien mitigation and was told the property must be in compliance before any reduction of 0 liens will be considered, To show the county I would take care of it, and to same money, II told the U) 0 aittorney I would have the property cleared and graded. Within the,week 11 contacted Charley Topplino& Sons Inc.Construction Company. When I gave them the address the representative said the address 00 sounds,familiar. He,expressed that the county had already contracted to have I- lve the property cleared but 00 Q has now put it on hold. On May 10,20211 signed a contract with Charley ToppInio and Sons.The permitting was dosed on June 26,2021 and job finished. The cost was$,12,000,00. When the 2021 $1600 tax Mill came in the mail I paid it immediately. I was showing good faith to the county that I would U fix the property and maintain the property. But I feel like I got played. At the time I had no idea,the U0 B,uirleys'were being sued for the full amount of liens and no one at the county told, me. I understand it M is my fault. I am just asking for consideration. E Secondly, there are two main liens on the property with multiple fines. I ask the BOCC to consider modifying the liens. Case CE 1805033 darted February 28, 2019 the Buirleys'were adjudicated four fines for almost the same violation. Code 21-76.(f)$150.001 per day . In shot it is for Unnecessary Sanitary Nuisance. Code 6-27,(b)(1)b$1501.00 per day. In short it is for Building Condition Ingress and Egress. Code 6-27.(b)(2)b$150,00per day, In short it is for Deteriorating Structure. Packet Pg. 3334 .... ......... --------------- ....... ............... ....................--- ............ ............................ .............------------------- Code 6-27(b)(2)c$150,00 per day. Abbreviated is Building Partially Destoyed, f would bed the BOCC to consider mitigating these violations to one violation : Code 21-76(f) Unnecessary Sanitary Nuisance, Case CE 1807008 dated October 18,2018 the Buirteys'were adjudicated on Code Violation 21-20(a) $100 per day. In short it is for Debris Yard Waste Litter, And Code 21-20(b)$100,00 per day. In short it is for Not mowing the yard. I would beg the BO,CC to consider mitigating these violations to one.Code 21-20(a) Debris'Yard Waste LO Litter. W LO According to the County the mitigated amounts would be $125400.00 and $96900.0 respectively, quantified would be$222,300.00, With Code enforcement and compliance ability to reduce the amount by one forth, the payment would be$55,575.0O plus administrative costs. In closing, if this is acceptable, I ask for 15 days to pay. If the above proposal is not acceptable to the BOCC I am offering$75,000,00 to satisfy the Hens. I don't have any more money to offer, that's a l I I can afford. 0 Regards, E Jay Archbell 00 I- 00 Q Q Q U U 0 M E Packet Pg. 3335 ................... . ........ ........ ........................................................................................................... ......................................................................................... ................................................. 111111-11.........................................