Item O11
Meeting Date: January 28, 2009
Bulle Item: Yes XX No
BOARD OF COUNTY COMMISSIONERS
AGENDA ITEM SUMMARY
Division: County Attorney
Staff Contact Person: Cynthia L. Hall x 3174
AGENDA ITEM WORDING:
Request by property owner HSBC Bank USA for mitigation of fInes in Code Enforcement Cases
CE07060155 and CE07070042 to $5,300.00.
ITEM BACKGROUND: The property located at 3606 Gulfstream S1. on Big Pine Key, Florida
(RE# 029430-000000), formerly owned by James P. Collins, was the subject of Monroe County Code
Enforcement Case Nos. CE07060 155 (abandoned vessel) and CE07070042 (unsafe ~ railings removed
on 2nd and 3rd story balconies without penllits). The violations in both of these cases were COlTected
by the prior owner. Fines due in Case CE07060155 total $7,750.00 plus $100 administrative costs.
Fines due in Case CE07070042 total $45,500 plus $118.50 in administrative costs.
HSBC acquired the property through foreclosure in August 2008 and is now under contract to sell the
property to a new buyer. The principal due on the loan at time of foreclosure was approx. $650K
HSBC has sold the property for $294K Under Section 48.23, Florida Statutes, because the County's
lien was recorded after the lis pendens filed by HSBC, the County's lien was statutorily discharged as
to this property, although the County retains the right to pursue other property owned by James
Collins. However, property owners and title companies prefer to get a recordable formal release or
settlement document rather than rely on the unrecorded nature of the statutory discharge. The County
Attomey has taken the position for at least 18 years that there is no public purpose to be served for the
County to issue any documents of satisfaction or release of liens without payment. In accordance with
Resolution 148-2008 (passed by the BOCC in May 2008), the County Attomey's Office has offered to
settle the fines for 25% of the accrued amount, or $13,531.00. The bank has placed this amount in
escrow, but is requesting a further reduction.
The property is also the subject of a third code enforcement case, CE07030016, in which the former
property owner was found to have installed an illegal lower enclosure. The buyer for this property has
committed to cOlTecting this violation. The bank is not requesting mitigation on this case.
PREVIOUS RELEVANT BOCC ACTION: None
CONTRACT/AGREEMENT CHANGES:
N/A
STAFF RECOMMENDATIONS: Approval of reduction to $5,300 to cover most of the costs of the
code enforcement personnel and the County Attomey's Office in enforcing the codes of this County.
TOTAL COST: $0
COST TO COUNTY:
BUDGETED: Yes No
SOURCE OF FUNDS:
REVENUE PRODUCING: Yes X No AMOUNT PER MONTH Year
V--~/ -
APPROVED BY: County Atty if OMB/Purchasing _ Risk Management_
DOCUMENTATION:
DISPOSITION:
Included x
Not Required_
AGENDA ITEM #