HomeMy WebLinkAboutResolution 193-2025 Resolution No. 193 - 2025
A RESOLUTION OF THE BOARD OF COUNTY
COMMISSIONERS OF MONROE COUNTY FLORIDA
AUTHORIZING THE COUNTY ATTORNEY TO ENTER A
SETTLEMENT AGREEMENT IN CASE ADV. NO. 25-4-RMB
AND CASE NO. 22-11191-RMB AND TO REDUCE THE LIEN
IN CODE COMPLIANCE CASE CE20010126.
Whereas, the County initiated Code Compliance case CE20010126 against the
property located at 132 North Indies Drive, Duck Key, initially owned by King Street Family
Ltd. Partnership ("Duck Key Property"). The Duck Key Property changed ownership
several times but with the same underlying representative, Bernard Seidling; and
Whereas, the County initiated foreclosure litigation to enforce the code compliance
lien which was imposed in CE20010126, Monroe County v. Bernard Seidling and Jay Hall
as Trustee of Jay Hall Irrevocable Trust, 23-CA-249-M; and
Whereas, Bernard Seidling filed a petition for relief under Title 11, United States
Code, in the United States Bankruptcy Court for the Western District of Wisconsin, Case
No. 22-11191-rmb; and
Whereas, due to the bankruptcy case, automatic stay provisions pursuant to 11
USC 362 apply to the County's foreclosure case, and 23-CA-249-M has been stayed
accordingly; and
Whereas, in a separate foreclosure matter, Regions Bank v. Griffith, 22-CA-322-
K, Monroe County was listed as a defendant due to an outstanding SHIP mortgage for
the property located at 303 Grinnell Street, Unit 404B, Key West ("Key West Property").
Following a foreclosure sale, Monroe County received $45,000 of surplus funds to satisfy
the SHIP mortgage. The County's lien against the Key West Property was released since
it had been satisfied; and
Whereas, an adversarial proceeding, Adv. No. 25-4-rmb, was initiated by the
Chapter 7 Trustee against Bernard Seidling, Jay Hall as trustee of the Jay Hall Irrevocable
Trust, and those parties that received funds disbursed in 22-CA-322-K, including Monroe
County. The complaint alleges that Bernard Seidling submitted the winning bid in the
foreclosure sale of the Key West Property as Kang Street LP and in payment thereof
transferred property of the bankruptcy estate. The Trustee is seeking to recover all funds
disbursed, including the $45,000 issued to Monroe County; and
Whereas, another adversarial proceeding, Adv. No. 24-50-rmb, has been filed by
the Trustee, seeking in part to recover the ownership interest of the Duck Key Property
for the bankruptcy estate. Monroe County is not a party to this action; and
Whereas, the Trustee is attempting to sell the Duck Key Property, subject to the
curing of the code compliance violations and judgment from the bankruptcy court in Adv.
No. 24-50-rmb determining the Duck Key Property belongs to the bankruptcy estate; and
Whereas, the Trustee has offered the County a settlement in Adv. No. 25-4-rmb
and Case No. 22-11191-rmb with the following terms:
Monroe County would agree to reduce the code compliance lien in CE20010126
against the Duck Key Property by $457000.
In exchange, the Trustee would agree not to seek the return of the $45,000 issued
to Monroe County in 22-CA-322-K, currently a subject of Adv. No. 25-4-rmb.
The Duck Key Property will be brought into compliance prior to its sale by the
Trustee.
Whereas, the amount of the fine in CE20010126 as of May 14, 2025, is
$145,300.00, and continues to accrue at $100 per day as the case remains non-
compliant. The costs as of May 14, 2025, are $15,681.43; and
Whereas, the County may amend its answer in Adv. No. 25-4-rmb to seek an
equitable claim against the bankruptcy estate, allowing the County to seek recovery of
the $45,000 upon sale of the Key West Property by the estate.
Now therefore, be it resolved by the Board of County Commissioners of
Monroe County, Florida that:
1. The above-stated recitals are incorporated herein as findings of fact.
2. The Board of County Commissioners hereby authorizes the County Attorney to
enter into the proposed settlement in Adv. No. 25-4-rmb and Case No. 22-
11191-rmb as outlined herein. The County Attorney may direct outside counsel
to do so on his behalf.
3. The Board of County Commissioners hereby authorizes the County Attorney to
reduce by $45,000 the currently accruing code compliance lien arising from
CE20010126, which the County is seeking to recover in 23-CA-249-M in
consideration of the settlement agreement reference in and authorized by
Paragraph 2.
PASSED AND ADOPTED by the Board of County Commissioners of Monroe County,
Florida, at a regular meeting held on the 21 st day of May, 2025, held in Key West, Florida.
Mayor James K. Scholl Yes
Mayor Pro Tern Michelle Lincoln Yes
Commissioner Craig Cates Yes
Commissioner David Rice Yes
Commissioner Holly Merrill Raschein Yes
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Aroved for form and legal sufficiency
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Kelly Dugan
Assistant Monroe County Attorney -, • : .
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