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Item L4 L4 BOARD OF COUNTY COMMISSIONERS COUNTY of MONROE 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 November 19, 2024 Agenda Item Number: L4 2023-3192 BULK ITEM: No DEPARTMENT: County Attorney TIME APPROXIMATE: STAFF CONTACT: Kelly Dugan N/A AGENDA ITEM WORDING: An Attorney-Client Closed Session in the matter of Monroe County, Florida v. Jakku Properties, LLC, Case No. 22-CA-64-P. ITEM BACKGROUND: Per F.S. 286.011(8), the subject matter of the meeting shall be confined to settlement negotiations or strategy sessions related to litigation expenditures. Present at the meeting will be the County Commissioners, County Administrator Christine Hurley, County Attorney Bob Shillinger, Senior Assistant County Attorney Cynthia Hall, Assistant County Attorney Kelly Dugan, and a certified court reporter. 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. 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. On 10/16/24 the BOCC approved holding a closed session at the regular BOCC meeting on 11/19/24 in Key West at 9:00 a.m. or as soon thereafter as may be heard. INSURANCE REQUIRED: No CONTRACT/AGREEMENT CHANGES: N/A STAFF RECOMMENDATION: Hold the closed session. 4046 DOCUMENTATION: Closed Session Script for Jaldc-u Properties Nov 19 2024.docx CF2024091 I—HLY—to—Velo Schillinger.pdf FINANCIAL IMPACT: Total Cost to County: Court Reporter Costs Budgeted: Yes Source of Funds: 67501-530330 4047 Mayor's Script For the day of Closed Session The following should be read at the appropriate point during the day of the closed session. 1. Prior to going into closed session. A closed attorney-client session pursuant to Section 286.011(8), Florida Statutes, will now be held concerning the matter of Monroe County, Florida v. Jakku Properties, LLC, Case No. 22-CA-64-P. It is estimated that this meeting will take approximately thirty (30) minutes. The persons attending the closed meeting will be the County Commissioners, County Administrator Christine Hurley, County Attorney Bob Shillinger, Senior Assistant County Attorney Cynthia Hall, Assistant County Attorney Kelly Dugan, and a certified court reporter. Since the law prohibits any other person from being present at the closed session, the commissioners, the Acting County Administrator, the attorneys for the County, and the court reporter will now remain in this meeting room, and all other persons are required to leave the room. When the closed session is over,we will re-convene and re-open the public meeting. This public meeting is now closed. 2. At the beginning of the closed session. I now call this closed session to order. For the record, this meeting is being held upon the request of the County Attorney Bob Shillinger who announced at a prior BOCC Meeting held on 10/16/24 that he needed advice in the matter of Monroe County, Florida v. Jakku Properties, LLC, Case No. 22-CA-64-P. At that meeting, the Board approved holding a closed session and public notice was given through public announcement of the meeting at the 10/16/24 BOCC meeting and through publication of the 11/19/24 BOCC meeting agendas on the County's website. For the record, and the benefit of the court reporter, each of us will state our name and position starting with the commission. (After all have identified themselves) —Thank you. Just as a reminder, we will only be discussing settlement negotiations or strategy related to litigation expenditures. We cannot take any decisive action at this meeting. We can only provide information and direction to the attorneys. Any decisions this Board makes concerning this claim must be done in a meeting open to the public. Let's start our discussion with the County Attorney. 3. At the end of the closed session,prior to going into open session. This closed session is now terminated and we will now reconvene in the public meeting. 4. After the public session has been re-opened. The attorney-client closed session has been terminated, and we are now re-opening this public meeting. 4048 HU111 Y Hershoff,Lupino&Yagel,LLP A noRm.)s.m 1-vx Altoriw�s At 1,avN AL I CORRESPONDEM h.T0 JAYA.I IERSIAOU F 98539 OVFRSFAS HIGHWAY JAW�S,I�UPJNO IANERNIER,FLORIDA 33070 Rk,ssi:u.ANAOLL vykvvv.[hNiaw.corn (305)852-9440 EvN(305)852-8849 Jusqw1%L.Ron1FNffl-,RG M W111 01 FK E ROBF,R-1 C.SIOBIT 9350 S DINIF HIGHWW SuITF 1470 Diiioitml A.SERAI INI MIANH,FLORIDA 33156 VICTORIA G MIRAMM JOANNE M.PLRI�IRA September 11, 2024 Via Email Transmission Via Email Transmission svelo(a)lvoselaw.corn S'hillitiger-Bob(a)lMotiroe('Oiitity-F,/.Gov 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 Page 1 of 4 4049 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. Page 2 of 4 4050 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. Page 3 of 4 4051 Please advise if your client is agreeable to the proposal set forth herein. Respectfully submitted, Russell A. Yagel, Esq. RAY/tld Page 4 of 4 4052