Item R08 R.8
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
October 19, 2022
Agenda Item Number: R.8
Agenda Item Summary #11206
BULK ITEM: No DEPARTMENT: County Attorney's Office
TIME APPROXIMATE: STAFF CONTACT: Kelly Dugan 3052953170
No
AGENDA ITEM WORDING: Approval of Settlement Agreement between Monroe County and
KRZ, LLC, in Code Case CE19060068, and authorization for County Attorney or his designee to
execute all settlement documents.
ITEM BACKGROUND: This is a proposed settlement of Code Case CE19060068. The property
owner, KRZ, LLC ("KRZ"), a limited liability company registered in Florida, was previously found
in violation by the Special Magistrate of Monroe County Code (MCC) 110-140.(a), landclearing,
and MCC 118-10.(d),placement of fill. Following an appeal to the Circuit Court, the violation of
MCC 110-140.(a)was affirmed, while the violation of MCC 118-10.(d)was reversed. The fine has
therefore accrued for the violation of MCC 110-140.(a) at$250 per day. The violation is not in
compliance, therefore the fine continues to accrue.
Monroe County holds a lien against KRZ. As of October 19, 2022, the fine is $152,000 and the
costs are $849.28. Fines continue to accrue at$250 per day due to noncompliance.
The properties found in violation are Block 4, Lots 2 through 7, Hibiscus Park, Key Largo
(RE400508100-000000, RE400508110-000000, RE400508120-000000, RE400508130-000000,
RE400508140-000000, RE400508150-000000). KRZ also owns Block 4, Lot 1, and Block 1, Lots 1
through 16 and Lots 18 through 21 (RE400508090-000000, RE400507230-000000, RE400507240-
000000, RE400507250-000000, RE400507260-000000, RE400507270-000000, RE400507280-
000000, RE400507290-000000, RE400507300-000000, RE400507310-000000, RE400507320-
000000, RE400507330-000000, RE400507340-000000, RE400507350-000000, RE400507360-
000000, RE400507370-000000, RE400507380-000000, RE400507400-000000, RE400507410-
000000, RE400507420-000000, RE400507430-000000).
KRZ has offered a settlement of the matter: to transfer the 27 lots (Lots 1 through 16 and Lots 18
through 21, Block 1 Hibiscus Park, and Lots 1 through 7, Block 4 Hibiscus Park)to the Monroe
County Land Authority in exchange for forgiveness of the lien stemming from this code case. Under
the proposed agreement, KRZ would transfer ownership of the 27 lots over to the Monroe County
Land Authority within 30 days of the BOCC's approval of the proposed Settlement Agreement. In
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exchange, the County would release the lien stemming from Code Case CE19060068. Each parry
agrees that they shall bear their own fees, costs, and expenses.
According the Monroe County Property Appraiser, the Just Market Value of each lot is $100 per lot,
for a total of$2700. The lots were purchased by KRZ at auction for $120,000 in 2017. The
combined ROGO dedication points for the lots are 40.5, with an estimated value of$931,500.
The Monroe County Land Authority would take ownership of the lots, including management of
restoration for the lots in violation. A rough estimate for cost of removal of fill and planting is
$50,000.
PREVIOUS RELEVANT BOCC ACTION: N/A
CONTRACT/AGREEMENT CHANGES:
N/A
STAFF RECOMMENDATION: Approval.
DOCUMENTATION:
Signed Settlement Agreement
Lots
KRZ LLC Hibiscus Lane ROGO Dedication Point Analysis
FINANCIAL IMPACT:
Effective Date: Upon execution by both parties
Total Dollar Value of Contract:
Total Cost to County: None
Current Year Portion:
Budgeted:
Source of Funds:
CPI:
Indirect Costs: Restoration cost to MCLA, estimated $50,000
Estimated Ongoing Costs Not Included in above dollar amounts:
Revenue Producing: N/A If yes, amount:
Grant:
County Match:
Insurance Required: N/A
Additional Details:
N/A
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REVIEWED BY:
Kelly Dugan Completed 10/04/2022 3:23 PM
Bob Shillinger Completed 10/04/2022 3:49 PM
Purchasing Skipped 10/04/2022 1:25 PM
Budget and Finance Skipped 10/04/2022 1:25 PM
Brian Bradley Skipped 10/04/2022 1:25 PM
Lindsey Ballard Completed 10/04/2022 3:54 PM
Board of County Commissioners Pending 10/19/2022 9:00 AM
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BOARD OF COUNTY COMMISSIONERS
OF MONROE COUNTY, FLORIDA, Case No.: CE19060068
a political subdivision of the State of Florida,
Plaintiff,
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KRZ, LLC, 0
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Respondent. U
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SETTLEMENT AGREEMENT E
The Plaintiff, Board of County Commissioners of Monroe County("County") and E
Respondent, KRZ, LLC, ("Respondent') (collectively,the 'Parties")agree to settle the above-
styled matter as follows:
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1. The County brought this Code Compliance case, CE19060068, for violations of
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the County Code at six parcels in Key Largo:
RE#00508100-000000, Bk 4 Lot 2 Hibiscus Park
RE#00508110-000000, Bk 4 Lot 3 Hibiscus Park
RE#00508120-000000, Bk 4 Lot 4 Hibiscus Park
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RE#00508130-000000, Bk 4 Lot 5 Hibiscus Park
RE#00508140-000000, Bk 4 Lot 6 Hibiscus Park
RE#00508150-000000, Bk 4 Lot 7 Hibiscus Park
2. The Respondent owns the above six parcels, and took title to them,with
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additional parcels, pursuant to a Certificate of Sale, recorded in the Official Records of Monroe
County on or about May 10, 2017, at Book 2853, Page 1316, Document Number 2122342.
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Lots 1 through 16 and Lots 18 through 21,Block 1 Hibiscus Park, and Lots 1
through 7,Block 4 Hibiscus Park,according to the Plat thereof, as recorded
in Plat Book 3,Page 166 of the Public Records of Monroe County,Florida.
Legal description (hereinafter the "Property").
3. The County holds a valid code compliance lien against the Respondent due to
fines imposed by the Code Compliance Special Magistrate on November 19, 2020. The Final
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Order is recorded in the Official Records of Monroe County on or about May 4, 2022, at Book
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3171, Page 1889, Document Number 2373978. The underlying violation has not been brought
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into compliance.
Section 1 -Recitals.The foregoing recitals are true and correct and are hereby incorporated
as if fully set forth herein.
Section 2- Settlement. The parties have entered into this Settlement Agreement knowingly,
freely, and voluntarily, having determined that they have adequate information upon which to
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make informed decisions and having decided that it is in their best interests to amicably resolve 76
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this action. CL
a. Neither party is under coercion or duress. Neither has been forced into this
Agreement or threatened in any way.
b. Neither party knows of any fact or circumstance, which would cause this
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Agreement to be void or unenforceable.
c. Except as provided herein, the parties agree that each party shall bear its own
attorneys' fees, costs and expenses arising out of, in connection with, or
related to, this litigation, whether such fees, costs or expenses have been
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incurred prior to the execution of this Agreement or will be incurred after its
execution.
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d. Respondent warrants and represents he has not conveyed the Property or any
interest therein to any person or entity.
e. Respondent agrees to, within thirty(30) calendar days of the County's EF
approval of this Agreement, convey the below-described parcels over to the
Monroe County Land Authority, such approval being evidenced in the form of U
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the undersigned Monroe County Attorney's executed approval of this U
Agreement and ratifying approval by the County's Board of County o
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Commissioners.
Lots 1 through 16 and Lots 18 through 21,Block 1 Hibiscus Park, and
Lots 1 through 7,Block 4 Hibiscus Park,according to the Plat thereof, as
recorded in Plat Book 3,Page 166 of the Public Records of Monroe
County,Florida. -
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RE#00507230-000000, Bk 1 Lot 1 Hibiscus Park
RE#00507240-000000, Bk 1 Lot 2 Hibiscus Park
RE#00507250-000000, Bk 1 Lot 3 Hibiscus Park
RE#00507260-000000, Bk 1 Lot 4 Hibiscus Park
RE#00507270-000000, Bk 1 Lot 5 Hibiscus Park
RE#00507280-000000, Bk 1 Lot 6 Hibiscus Park
RE#00507290-000000, Bk 1 Lot 7 Hibiscus Park
RE#00507300-000000, Bk 1 Lot 8 Hibiscus Park
RE#00507310-000000, Bk 1 Lot 9 Hibiscus Park E
RE#00507320-000000, Bk 1 Lot 10 Hibiscus Park
RE#00507330-000000, Bk 1 Lot 11 Hibiscus Park
RE#00507340-000000, Bk 1 Lot 12 Hibiscus Park
RE#00507350-000000, Bk 1 Lot 13 Hibiscus Park
RE#00507360-000000, Bk 1 Lot 14 Hibiscus Park n
RE#00507370-000000, Bk 1 Lot 15 Hibiscus Park
RE#00507380-000000, Bk 1 Lot 16 Hibiscus Park E
RE#00507400-000000, Bk 1 Lot 18 Hibiscus Park
RE#00507410-000000, Bk 1 Lot 19 Hibiscus Park
RE#00507420-000000, Bk 1 Lot 20 Hibiscus Park
RE#00507430-000000, Bk 1 Lot 21 Hibiscus Park
RE#00508090-000000, Bk 4 Lot 1 Hibiscus Park
RE#00508100-000000, Bk 4 Lot 2 Hibiscus Park
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RE#00508 1 1 0-000000, Bk 4 Lot 3 Hibiscus Park
RE#00508120-000000, Bk 4 Lot 4 Hibiscus Park
RE#00508130-000000, Bk 4 Lot 5 Hibiscus Park
RE#00508140-000000, Bk 4 Lot 6 Hibiscus Park
RE#00508150-000000, Bk 4 Lot 7 Hibiscus Park
f. Within fifteen (15) days following completion of the transfer of the properties
in Paragraph e, the County will record a Release and Satisfaction of the code U
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compliance lien in CE19060068. The current amount of the lien, as of U
October 19, 2022, is $152,849.28. (Fines continue to accrue at$250 per day.) 0
Such Release shall specifically state that Respondent is forever released from
the County's code compliance lien recorded in the Official Records of
Monroe County on or about May 4, 2022, at Book 3171, Page 1889,
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Document Number 2373978.
g. The Parties agree to waive and release any and all claims against the other that -
could have been raised in Code Enforcement Case CE19060068. 0
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Section 3 -Good Faith. These settlement negotiations have been undertaken by the
parties in good faith.
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Section 4-Choice of Law; Governing Law; Jurisdiction; Venue. This Agreement is
not subject to arbitration and shall be governed by, and construed and enforced in accordance
with, the laws of the State of Florida, and venue for all claims, controversies, or disputes relating
to this Agreement shall be in the Circuit Court of the 16th Judicial Circuit in and for Monroe
County, Florida.
Section 5- Binding Effect. It is agreed and understood that this Settlement Agreement
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shall be and is forever binding upon the parties, including their successors-in-interest.
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Section 6-Construction of Agreement; Divisions and Headings.s. Captions and
paragraph headings, where used herein, are inserted for convenience only and are not intended to
descriptively limit the scope and intent of the particular paragraph or text to which they refer.
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Section 7- Inconsistency, Partial Invalidit Severabilily,and Survival of Provisions.
If any condition, provision, reservation, restriction, right, or term of this Agreement, or any
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portion(s)thereof, is/are held to be invalid or unenforceable by any administrative hearing officer
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or by a court of competent jurisdiction, the invalidity or unenforceability of such condition, o
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provision, reservation, restriction, right, or term, or any portion(s)thereof, shall neither limit nor
impair the operation, enforceability, or validity of any other condition, provision, reservation,
restriction, right,term, or any remaining portion(s)thereof. All such other conditions, provisions,
reservations, restrictions, rights, terms, and remaining portion(s)thereof shall continue
unimpaired in full force and effect.
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Section 8 -Integration. This Settlement Agreement constitutes the entire Agreement and >
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any representation or understanding of any kind preceding the date of the parties' written final CL
approval of this Agreement not specifically and expressly memorialized herein is not binding on
either of the parties except to the extent that it has been specifically and expressly memorialized
in this Agreement.
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Section 9- Non-Reliance by Third-Parties.No non-signatory person(s) or entity(ies)
shall be entitled to rely upon any conditions, provisions, or terms of this Agreement to enforce or
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to attempt to enforce any third-party claim(s) or entitlement(s)to or benefit(s) from any
conditions, provisions, or terms hereunder.
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Section 10 - Execution in Counterparts. The parties acknowledge and agree that this
Settlement Agreement may be executed in one or more counterparts, each counterpart shall be
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considered an original portion of this Agreement, and all of which shall constitute a single
instrument.
Section 11 -Scrivener's Errors. The Monroe County Board of County Commissioners
authorizes the Monroe County Attorney and counsel representing the Monroe County Attorney's
Office in this matter to correct any scrivener's errors within this Agreement, prior to written W
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execution of this Agreement on the County's behalf as authorized and approved by the Board of
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County Commissioners following a duly noticed public meeting of the Monroe County Board of o
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County Commissioners at which this Settlement Agreement is considered.
Section 12 -Effective Date. Once fully and finally executed by the Parties, this
Agreement shall be considered legally effective and forever binding on the parties.
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Signature
Printed Name
Representative for KRZ, LLC
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Date
STATE OF �}Q COUNTY OF oq r-0
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The foregoing Settlemen t Agr went,w s acknowledged and attested before me this day
Cj. �_�. __.. rson;.all known to me or of �� 12tad who is _
produced, � � as � .. ...identification � -„ ._�._...�_. _�
p and did take an oath.
roof of ident
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tA-Ur r l�'aablic (Print N e)
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Jody M.Flanagan
Comm.:HH 213958
, I' Expires:Feb.14,2026
Public-State of Florida
Notary Public Seal Not Public(Si ture)
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Robert Shillinger Date U
Monroe County Attorney
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KRZ LLC Hibiscus Lane ROGO Dedication Point Analysis
parcel# Subdivision Block Lot TIER LUD FLUM Habitat upland s.f. ROGO Value
points
00507430-000000 Hibiscus Park 1 21 1 NA RC Developed Land/ 5,230 0.5 $11,500
Buttonwood
00507420-000000 Hibiscus Park 1 20 1 NA RC Developed Land/ 41732 0.5 $11,500
Buttonwood
00507410-000000 Hibiscus Park 1 19 1 NA RC Developed land/ 2,601 0.5 $11,500 f)
buttonwood
buttonwood/
00507400-000000 Hibiscus Park 1 18 1 NA RC mangrove(assumes 0 2 $46,000 f)
buttonwood habitat is
wetland)
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00507230-000000 Hibiscus Park 1 16 1 NA RC mangrove 0 2 $46,000 ()
00507240-000000 Hibiscus Park 1 15 1 NA RC mangrove 0 2 $46,000
00507250-000000 Hibiscus Park 1 14 1 NA RC mangrove 0 2 $46,000 ,
00507260-000000 Hibiscus Park 1 13 1 NA RC mangrove 0 2 $46,000
00507270-000000 Hibiscus Park 1 12 1 NA RC mangrove 0 2 $46,000
00507280-000000 Hibiscus Park 1 11 1 NA RC mangrove 0 2 $46,000
00507290-000000 Hibiscus Park 1 10 1 NA RC mangrove 0 2 $46,000
00507300-000000 Hibiscus Park 1 9 I NA RC mangrove 0 2 $46,000
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00507310-000000 Hibiscus Park 1 8 1 NA RC mangrove 0 2 $46,000
00507320-000000 Hibiscus Park 1 7 1 NA RC mangrove 0 2 $46,000
00507330-000000 Hibiscus Park 1 6 1 NA RC mangrove 0 2 $46,000
00507340-000000 Hibiscus Park 1 5 1 NA RC mangrove 0 2 $46,000
00507350-000000 Hibiscus Park 1 4 1 NA RC mangrove 0 2 $46,000
00507360-000000 Hibiscus Park 1 3 1 NA RC mangrove 0 2 $46,000 LO
00507370-000000 Hibiscus Park 1 2 1 NA RC mangrove 0 2 $46,0001 4-
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00507380-000000 Hibiscus Park 1 1 1 NA RC mangrove 0 2 $46,000
**00508090-000000 Hibiscus Park 4 1 1 NA RC mangrove/ 0 2 $46,000 0
undeveloped land
mangrove/ I
Hibiscus Park 4 2 1 NA RC 4,089 0.5 $11,500 I
00508100-000000 undeveloped land
Hibiscus Park 4 3 1 NA RC mangrove/ 4,214 0.5 $11,500
00508110-000000 undeveloped land
Hibiscus Park 4 4 I NA RC mangrove/ 4,234 0.5 $11,500
00508120-000000 undeveloped land M
mangrove/
Hibiscus Park 4 5 1 NA RC 4,247 0.5 $11,500
00508130-000000 undeveloped land ,
mangrove/developed
Hibiscus Park 4 6 1 NA RC land/undeveloped 4,360 0.5 $11,500 0
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00508140-000000 land C=
Hibiscus Park 4 7 I NA RC mangrove/ 5,747 0.5 $11,500
00508150-000000 undeveloped land M
TOTAL 40.5 $931,500 2
* Assumes developed land and undeveloped land is UPLAND **
Parcel 00508090-000000 is mapped in CIS as undeveloped land,however the existing vegetation on this lot is wetland
+0.5 for each platted Proposes dedication to Monroe County of one(1)vacant,legally platted lot within a Tier I area,designated as
lot Residential Conservation containing a minimum of 2,000 square feet of uplands.Each additional vacant,legally
platted lot that meets the aforementioned requirements will earn points as specified.
Proposes dedication to Monroe County of one(1)vacant,legally platted lot which contains undisturbed wetlands.
+2 for each platted lot Each additional vacant,legally platted lot that meets the aforementioned requirements will earn points as U)
specified.
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