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HomeMy WebLinkAboutItem S03 BOARD OF COUNTY COMMISSIONERS COUNTY of MONROE Mayor Michelle Lincoln, District 2 Mayor Pro Tem David Rice, District 4 The Florida Keys Craig Cates, District 1 James K. Scholl, District 3 Holly Merrill Raschein, District 5 Regular Meeting March 11, 2026 Agenda Item Number: {{section.number}}{{item.number}} 26-0666 BULK ITEM: No DEPARTMENT: County Attorney TIME APPROXIMATE:STAFF CONTACT: Kelly Dugan AGENDA ITEM WORDING: Approval of a resolution authorizing the County Attorney to enter into a settlement in Case Nos. 22-11191-rmb and 23-CA-249-M, including a reduction of the lien in Code Compliance Case CE20010126 to $40,000. ITEM BACKGROUND: Monroe County Code Compliance initiated Code Compliance Case CE20010126 against the property located at 132 North Indies Dr, Duck Key. The property has changed ownership several times but with the same underlying representative, Bernard Seidling. The County initiated Case 23-CA-249-M to enforce its lien stemming from CE20010126. That case has been stayed due to a pending bankruptcy matter. Bernard Seidling has a pending bankruptcy case in the United States Bankruptcy Court for the Western District of Wisconsin, Case No. 22-11191-rmb. The property at 132 North Indies Dr has been determined to be an asset of the bankruptcy estate. The bankruptcy Trustee is seeking to effectuate a sale of the property. A settlement has been proposed, which includes reducing the County’s lien to $40,000. The amount of the lien as of 3/5/26 is $176,945.70, and continues to accrue at $100 per day. Staff is recommending approval for reasons to be elaborated on during the closed session scheduled for 3/11/26. The proposed settlement amount falls outside the County Attorney’s settlement authority and therefore requires approval from the BOCC for the County Attorney to enter into such settlement. PREVIOUS RELEVANT BOCC ACTION: At the 2/18/26 BOCC meeting, the County Attorney requested that a closed session be held at the 3/11/26 meeting in the related matters of Monroe County v. Bernard Seidling and Jay Hall as Trustee of Jay Hall Irrevocable Trust, 23-CA-249-M; In re: Bernard Seidling, Case No. 22-11191-rmb; Block v. Regions Bank d/b/a Regions Mortgage et. al., 1- 25-00004-rmb; and Code Compliance Case CE20010126. The BOCC granted that request and the closed session is scheduled for 3/11/26. INSURANCE REQUIRED: No CONTRACT/AGREEMENT CHANGES: STAFF RECOMMENDATION Staff is recommending approval, as will be explained in further detail in the closed session. DOCUMENTATION: FINANCIAL IMPACT: Reduction of code compliance lien Effective Date: Expiration Date: Total Dollar Value of Contract: Total Cost to County: Current Year Portion: Budgeted: Source of Funds: CPI: Indirect Costs: Estimated Ongoing Costs Not Included in above dollar amounts: Revenue Producing:If yes, amount: Grant: County Match: Insurance Required: Resolution No. ___ - 2026 A RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS OF MONROE COUNTY FLORIDA AUTHORIZING THE COUNTY ATTORNEY TO ENTER A SETTLEMENT AGREEMENT IN CASE NO. 22-11191-RMB AND CASE NO. 23-CA-249-M 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 PropThe 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 has a pending bankruptcy case under Chapter 7 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 -CA-249-M has been stayed accordingly; and Whereas, the Duck Key Property has been determined to be part of the bankruptcy estate; and Whereas, the Trustee is pursuing a sale the Duck Key Property, in which the new owner will accept responsibility for curing the outstanding code compliance violations and seeks to pay a reduced fine to settle the lien and effectuate the sale; and Whereas, the proposed settlement includes the following terms and is subject to approval by the bankruptcy court: Monroe County would agree to reduce the code compliance lien in CE20010126 to $40,000. Allow sufficient time for payment in order for the settlement to be approved and the sale to occur. The Duck Key Property will be brought into compliance by the new owner, with a grace period to achieve compliance prior to fines beginning to accrue again. Whereas, the amount of the fine in CE20010126 as of March 5, 2026, is $174,800.00, and continues to accrue at $100 per day as the case remains non- compliant. The costs as of March 5, 2026, are $2,145.70; and Whereas, the settlement authority as set forth in Section 2-185(b) because of the amount and because the property is not currently in compliance; and Whereas, this property has been the subject of repeated complaints from members of the community surrounding the property; and Whereas, the Board finds that entering into a settlement agreement that incorporates terms as set forth in this resolution represents the best opportunity for this property to be brought into compliance. 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 authorizes the County Attorney to reduce the currently accruing code compliance lien arising from CE20010126 to $40,000. 3. The Board authorizes the County Attorney to enter into a settlement agreement in Case No. 22-11191-rmb and/or Case No. 23-CA-249-M, despite the property not being in compliance, should the remaining settlement terms be acceptable to the County Attorney. PASSED AND ADOPTED by the Board of County Commissioners of Monroe County, Florida, at a regular meeting held on the 11th day of March, 2026, held in Key Largo, Florida. Mayor Michelle Lincoln _______ Mayor Pro Tem David Rice _______ Commissioner Craig Cates _______ Commissioner James Scholl _______ Commissioner Holly Merrill Raschein _______ (SEAL) BOARD OF COUNTY COMMISSIONERS Attest: KEVIN MADOK, Clerk OF MONROE COUNTY, FLORIDA By: ____________________________ By: ___________________________ As Deputy Clerk Mayor Approved for form and legal sufficiency Ejhjubmmz!tjhofe!cz!Lfmmz!Evhbo! Lfmmz!Evhbo Ebuf;!3137/14/16!21;64;45!.16(11( _______________________________ Kelly Dugan Assistant Monroe County Attorney