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HomeMy WebLinkAboutMemorandumCITY OF MIAMI OFFICE OF THE CITY ATTORNEY MEMORANDUM TO: Honorable Mayor and Members of the City Commission FROM: Victoria Mendez, City Attorney DATE: July 23, 2020 RE: Proposed Settlement for City Commission Meeting — May14, 2020 3384 Day Avenue Investments, Inc. v City of Miami, pending in the in the Circuit Court for the Eleventh Judicial Circuit in Miami -Dade County, Florida Case No.: 2019 -23993 -CA -11 File No.: 7404 The attached proposed Resolution seeks authorization for settlement of all claims brought against the City of Miami ("City") in matter of 3384 Day Avenue Investments, Inc. v City of Miami pending in the in the Circuit Court for the Eleventh Judicial Circuit in Miami -Dade County, Florida, Case No.: 2019 -23993 -CA -11. This litigation arises from a dispute between the Plaintiff and the City stemming from existing violations of the Florida Building Code ("Building Code") and Miami 21 ("Zoning Code") on the property located at 3374 Day Ave, Miami, Florida 33133 ("the Property") and an abutting property located at 3384 Day Ave, Miami, Florida 33133 ("the Abutting Property"), both owned by the Plaintiff. The aforementioned violations of the Building and Zoning Codes on the Property and the Abutting Property were rooted in the April 5, 2016 release of a unity of title between the two properties by the City, which was erroneous and based in large part on misrepresentations contained in the application to release the unity of title. The release of the unity of title resulted in a situation where the existing structure on the Abutting Property was located directedly on the newly formed property line, with no set back as required under the Zoning Code. Although plans for a new structure on the Property were approved with the minimum five-foot set back required under the Zoning Code, because the structure on the Abutting Property is located directly on the property line, the construction of the new structure on the Property resulted in a number of life -safety related Building Code violations because of the sheer lack of physical distance between the two structures. When the City became aware of the existing Zoning and Building Code violations on the Property and the Abutting Property, the Building Official placed a hold on the building permit for the new structure on the Property ("Property Permit").The Plaintiff then filed the instant lawsuit, seeking mandamus relief from the court to force the City to lift the Building Official's hold on the Property Permit. The litigation in this matter is presently stayed, pending proceedings before the Miami -Dade County Board of Rules and Appeals ("BORA"). In lieu of proceedings before BORA, the parties have mutually negotiated a settlement agreement that would address the life -safety issues created by the Building Code violations present and protect the interests of the City with respect to the existing Zoning Code violations with respect to any future development on the Abutting Property. The proposed mutually negotiated settlement provides that (1) the Plaintiff shall, within thirty (30) days of the execution of the settlement agreement, submit the pre - approved and jointly negotiated plans for modifications to the existing structure on the Abutting Property for a permit ("Abutting Permit"), in order to address the life -safety related building code violations now present on both the Property and the Abutting Property; (2) the City shall, within forty-eight (48) hours of the submission of the above- mentioned plans, lift the hold on the Property Permit for the construction of the new structure on the Property; (3) the Plaintiff shall complete the work under the Abutting Permit within twelve (12) months; (4) notwithstanding the release of the unity of title, Plaintiff shall not convey or sell separately the Property or the Abutting Property, except for leases not to exceed twelve (12) months, until the work contemplated in the Abutting Permit is completed; and (4) the Plaintiff shall execute and record a restrictive covenant running with the land for the Abutting Property, within thirty (30) days of the execution of the settlement agreement, providing that in the event of the demolition of the existing structure on the Abutting Property, any new structure on the Abutting Property will be constructed in compliance with the Florida Building Code and Miami 21, both as amended. The Office of the City Attorney has investigated and evaluated this case and has approved the recommendation of this settlement. Attachment(s) cc: Arthur Noriega V, City Manager Miriam Santana, Agenda Coordinator VM/BLM/KLM/vja Attachment(s) 7404 Submittal -Vice Chair Russell -Photograph -3384 Day Avenue Investments, LLC Gl�Y OF Nw r City of Miami City Hall 3500 Pan American Drive * INCRRP RRRREI * Legislation Miami, FL 33133 IR 96 � L°Q R t� www.miamigov.com Resolution Enactment Number: R-20-0240 File Number: 7404 Final Action Date:7/23/2020 A RESOLUTION OF THE MIAMI CITY COMMISSION AUTHORIZING THE CITY MANAGER TO EXECUTE ANY AND ALL SETTLEMENT DOCUMENTS, ALL IN A FORM ACCEPTABLE TO THE CITY ATTORNEY, WITHOUT ADMISSION OF LIABILITY, IN SETTLEMENT OF THE CLAIMS AND DEMANDS, INCLUDING ALL CLAIMS FOR ATTORNEYS' FEES, AS MORE SPECIFICALLY DETAILED IN THE SETTLEMENT AGREEMENT, AGAINST THE CITY OF MIAMI AND ITS OFFICERS, AGENTS, AND EMPLOYEES IN THE CASE STYLED 3384 DAY AVENUE INVESTMENTS, INC. VS. CITY OF MIAMI, PENDING IN THE CIRCUIT COURT FOR THE ELEVENTH JUDICIAL CIRCUIT IN AND FOR MIAMI-DADE COUNTY, FLORIDA, CASE NO. 2019 -23993 -CA -11. WHEREAS, on August 14, 2019, 3384 Day Avenue Investments, Inc. ("Plaintiff') served a lawsuit against the City of Miami ("City") in the Circuit Court for the Eleventh Judicial Circuit in and for Miami -Dade County, Florida, Case No. 2019 -23993 -CA -11; and WHEREAS, the litigation arises from a dispute between the Plaintiff and the City stemming from existing violations of the Florida Building Code ("Building Code") and Ordinance No. 13114, as amended, the Zoning Ordinance of the City of Miami, Florida ("Zoning Code"), on the property located at 3374 Day Ave, Miami, Florida 33133 ("Property") and an abutting property located at 3384 Day Ave, Miami, Florida 33133 ("Abutting Property"), both owned by the Plaintiff; and WHEREAS, the aforementioned violations of the Building Code and Zoning Code on the Property and the Abutting Property were rooted in the April 5, 2016 release of a unity of title between the two (2) properties by the City, which was erroneous and based in large part on misrepresentations contained in the Plaintiffs application to release the unity of title; and WHEREAS, the release of the unity of title resulted in a situation where the existing structure on the Abutting Property was located directedly on the newly formed property line, with no set back as required under the Zoning Code; and WHEREAS, although plans for a new structure on the Property were approved with the minimum five-foot (5") set back required under the Zoning Code, because the structure on the Abutting Property is located directly on the property line, the construction of the new structure on the Property resulted in a number of life -safety related Building Code violations because of the sheer lack of physical distance between the two (2) structures; and WHEREAS, when the City became aware of the existing Zoning Code and Building Code violations on the Property and the Abutting Property, the Building Official placed a hold on the building permit for the new structure on the Property ("Property Permit"); and WHEREAS, the Plaintiff then filed the instant lawsuit, seeking mandamus relief from the court to force the City to lift the Building Official's hold on the Property Permit; and WHEREAS, the litigation in this matter is presently stayed pending proceedings before the Miami -Dade County Board of Rules and Appeals ("BORA"); and WHEREAS, in lieu of proceedings before BORA, the parties have mutually negotiated a settlement agreement that would address the life -safety issues created by the Building Code violations present and protect the interests of the City with respect to the existing Zoning Code violations with respect to any future development on the Abutting Property; and WHEREAS, the parties have agreed that (1) the Plaintiff shall, within thirty (30) days of the execution of the settlement agreement, submit the pre -approved and jointly negotiated plans for modifications to the existing structure on the Abutting Property for a permit ("Abutting Permit") in order to address the life -safety related Building Code violations now present on both the Property and the Abutting Property; (2) the City shall, within forty-eight (48) hours of the submission of the above-mentioned plans, lift the hold on the Property Permit for the construction of the new structure on the Property; (3) the Plaintiff shall complete the work under the Abutting Permit within twelve (12) months; (4) notwithstanding the release of the unity of title, the Plaintiff shall not convey or sell separately the Property or the Abutting Property, except for leases not to exceed twelve (12) months, until the work contemplated in the Abutting Permit is completed; and (4) the Plaintiff shall execute and record a restrictive covenant running with the land for the Abutting Property within thirty (30) days of the execution of the settlement agreement providing that in the event of the demolition of the existing structure on the Abutting Property, any new structure on the Abutting Property will be constructed in compliance with the Building Code and Coning Code, both as amended; and WHEREAS, the parties have agreed to execute a written settlement agreement memorializing the terms of the settlement; and WHEREAS, the Office of the City Attorney has investigated this claim and lawsuit and recommends that said claim and lawsuit be settled for the terms summarized above and as memorialized in a written settlement agreement; NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: Section 1. The recitals and findings contained in the Preamble to this Resolution are adopted by reference and incorporated as if fully set forth in this Section. Section 2. The City Manager is authorized' to execute any and all settlement documents, all in forms acceptable to the City Attorney, without admission of liability, for settlement of the Plaintiff's claims against the City, its agents, officers, and employees in the case styled 3384 Day Avenue Investments, Inc. vs. City of Miami, pending in the Circuit Court for the Eleventh Judicial Circuit in and for Miami -Dade County, Florida, Case No. 2019 -23993 - CA -11. Section 3. This Resolution shall become effective immediately upon its adoption. ' The herein authorization is further subject to compliance with all legal requirements that may be imposed, including but not limited to, those prescribed by applicable City Charter and City Code provisions. APPROVED AS TO FORM AND CORRECTNESS: i ria ndez, C ity Attor iey 5/5/2020 Pursuant to the resolution, this item became effective immediately upon adoption by the Commission.