Item R11 R11
BOARD OF COUNTY COMMISSIONERS
COUNTY of MONROE �� i Mayor Holly Merrill Raschein,District 5
The Florida Keys Mayor Pro Tern James K.Scholl,District 3
Craig Cates,District 1
Michelle Lincoln,District 2
' David Rice,District 4
Board of County Commissioners Meeting
October 16, 2024
Agenda Item Number: R11
2023-3145
BULK ITEM: No DEPARTMENT: County Attorney
TIME APPROXIMATE: STAFF CONTACT: Kelly Dugan
N/A
AGENDA ITEM WORDING: Consideration of settlement offer in the matter of Monroe County,
Florida v. Jakku Properties, LLC, Case No. 22-CA-64-P.
ITEM BACKGROUND:
This is a lien foreclosure case stemming from Code Compliance Case CE17110029. CE17110029 was
compliant as of 3/11/22, with fines of$540,500.00 and code compliance costs of$3,114.60. Legal fees
and costs stemming from the litigation are approximately $27,000.
The purpose of this agenda item is to convey and consider a settlement offer presented by counsel for
Jakku Properties, LLC. Defendant offers to settle this case with a total offer of$50,000.00, including
all fees.
PREVIOUS RELEVANT BOCC ACTION:
The BOCC approved litigation in this matter at the 06/16/2021 Board of County Commissioners
meeting.
The BOCC rejected a previous offer in this matter at the 10/18/2023 Board of County Commissioner
meeting.
INSURANCE REQUIRED:
No
CONTRACT/AGREEMENT CHANGES:
N/A
STAFF RECOMMENDATION: Consideration of settlement offer.
DOCUMENTATION:
CF'20240911 HLY to Velo & Schillinger.pdf
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FINANCIAL IMPACT:
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September 11, 2024
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Stephanie Velo, Esquire Bob Shillinger
Vose Law Finn LLP County Attorney
324 W. Morse Boulevard Monroe County Attorney's Office
Winter Park, Florida 32789 1111 12th Street, Suite 408
Key West, FL 33040
RE: Monroe County, Florida vs. Jakku Properties LLC; Case No.: 22-CA-64-P
Dear Ms. Velo and Mr. Shillinger:
With respect to the above-captioned case, I am writing to provide additional context and to extend
a revised settlement offer on behalf of my client,Donald J. Wood, owner of Jakku Properties LLC.
Donald J. Wood, is the owner, manager, and registered agent of Jakku Properties, LLC, a Florida
limited liability company. Jakku Properties, LLC (Jakku) is the current record owner of real
property located at 100760 Overseas Highway, Key Largo, FL that is the subject of the County's
instant foreclosure action ("Subject Property" or "Property"). Mr. Wood is also the owner of
Rainbow Reef Dive Center("Rainbow Reef"), a dive shop which operates from a building located
on the Subject Property. Unfortunately, the Property became the subject of a code enforcement
case due to events following Hurricane Irma.
The Violation & Mitigation
In September 2017, Hurricane Irma made landfall in the Florida Keys causing significant tree and
vegetation damage to the Subject Property. The storm caused a very large tree limb to fall on a
fence and in a pool located on the Property. While Jakku now owns the Subject Property, in
September 2017 Rainbow Reef was merely a tenant in the building located on the Property. In an
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effort to promptly restore operations, an intern for Rainbow Reef was tasked with removing the
fallen limb and clearing debris. Unfortunately,the intern went beyond his instructions and cleared
a 20 x 35 area of undamaged vegetation.
Recognizing the mistake, the property's then-owner took immediate steps to rectify the situation,
ordering $7,500 worth of trees and shrubs to replace the lost vegetation; all of which was paid for
by Rainbow Reef. At the time of the planting, Mr. Wood was under the impression that the owner
of the property (as noted above,Rainbow Reef was only a tenant at the time)had received approval
for the restoration plan from the County. A review of County Records shows that the previous
owner did apply for a restoration permit in December 2017, following a code violation recorded
in October 2017. However, for reasons unknown, the permit was abandoned and the property was
eventually sold to Jakku in June 2019.
In late November 2019, Mr. Wood received a notice of hearing before the Code Enforcement
Special Master scheduled for January 20, 2020. Upon receiving this notice, Mr. Wood reached out
to the County and learned that they were pursuing the case despite the fact that the violation
occurred before Jakku purchased the property.
Extraordinary Circumstances
The COVID-19 pandemic brought unprecedented challenges to businesses worldwide, and the
Florida Keys were no exception. Starting in early 2020, strict travel restrictions and health
mandates severely impacted the local economy, particularly the tourism sector upon which many
businesses rely. As the owner of a dive and snorkel enterprise, Mr. Wood faced significant
financial hardship during this period. Visitor prohibitions and ongoing mask and social distancing
requirements led to a dramatic decline in revenue, leaving Rainbow Reef struggling to stay afloat.
Despite these overwhelming obstacles, Mr. Wood demonstrated remarkable resilience and
commitment to his employees and community. Utilizing the Payroll Protection Program alongside
his personal resources, he successfully prevented staff layoffs and avoided bankruptcy, gradually
adapting operations to comply with evolving health guidelines. By the summer of 2020, Rainbow
Reef's operations had adapted to the ongoing restrictions, but business remained well below pre-
pandemic levels.
Amid these ongoing economic struggles, Mr. Wood faced another daunting challenge when he
was diagnosed with squamous carcinoma cancer in September 2020. The subsequent months were
consumed by intensive treatment including surgery, chemotherapy, and radiation, profoundly
affecting his personal and professional life until mid-2021.
Even under such extraordinary and trying circumstances, Mr. Wood remained committed to
addressing the Property's restoration issues. He engaged environmental expert Susan Sprunt to
develop an effective restoration plan and, in March 2022, applied for a second restoration permit.
Through diligent collaboration and extensive discussions with county staff, an agreeable plan was
finalized and a permit issued on August 16, 2022. The required inspection was successfully
completed and approved on December 1, 2022, bringing the property into full compliance.
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Mr. Wood's unwavering dedication to resolving this matter, despite facing unparalleled personal
and economic adversity, underscores his responsibility and commitment as a business owner and
community member. We respectfully ask that these exceptional circumstances be given due
consideration in reaching a fair and equitable resolution to this case.
Dedication to Environmental Protection
Mr. Wood is not only the owner of the largest dive operation in the Upper Keys, he is also a
dedicated environmentalist. Through his not-for-profit organization, Ocean Conservation
Foundation, Mr. Wood has been instrumental in efforts to preserve and restore the coral reefs in
the Florida Keys. His work has directly contributed to the health and sustainability of the marine
ecosystem,benefiting both the environment and the local community.
Mr. Wood's commitment to ocean conservation is evidenced by the substantial resources he has
devoted to protecting the reefs, including funding scientific research,promoting sustainable diving
practices, and leading restoration projects that have saved significant portions of the reef from
degradation. His dedication to these causes underscores his deep respect for the natural
environment and his desire to ensure that future generations can continue to enjoy the beauty and
diversity of the Florida Keys.
An Equitable Resolution
Given the extraordinary efforts Mr. Wood has made to mitigate the impact of the violation and his
unwavering commitment to environmental stewardship, we believe it is appropriate to
significantly reduce the fines associated with this case. As previously detailed, the underlying
violation was the result of an intern's error during a large-scale cleanup effort following Hurricane
Irmaa mistake that Mr. Wood attempted to rectify immediately, even as a tenant. Despite these
efforts, the challenges posed by the COVID-19 pandemic and Mr. Wood's subsequent battle with
cancer further delayed resolution. However, compliance has now been achieved, and the property
has been fully restored. We hope that Monroe County will recognize Mr. Wood's ongoing efforts
to be a responsible property owner and a champion for the environment.
Accordingly, Mr. Wood is prepared to increase his settlement offer to Fifty Thousand Dollars
($50,000.00)to release the lien and satisfy all claims asserted against the Defendant,together with
a dismissal of the above-referenced case,with prejudice and each parry to bear their own attorney's
fees and costs. This amount would cover a portion of the fines and costs incurred, while
acknowledging the significant contributions Mr. Wood has made to the community and the
environment. We trust that this increased offer will be seen as a fair resolution, allowing all parties
to move forward in a positive manner.
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Please advise if your client is agreeable to the proposal set forth herein.
Respectfully submitted,
Russell A. Yagel, Esq.
RAY/tld
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