HomeMy WebLinkAboutSEOPW-CRA-M-01-0151LEGAULITIGATION
ITEM 23
STATUS REPORT ON ARENA TOWERS PROJECT
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Law Offices
HOLLAND & KNIGHT LLP
701 Brickell Avenue
Suite 3000
P.O. Box 015441(ZIP 33101-5441)
Miami, Florida 33131
305-3744M
FAX 305-759-7799
http:/Mw.hkiaw.com
December 6, 2001
ITEM 23
December 11, 2001
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WILLIAM R BLOOM
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Internet Address: owbloom@jlklaw.com
STATUS REPORT ARENA TOWERS PROJECT
The City of Miami entered into the Southeast Overtown/Park West Lease
and Development Agreement (the "Lease") with Park West, Ltd. in June of
1988. The City of Miami subsequently conveyed fee simple title to the property
and assigned the Lease to the CRA. Condor One, Ltd. ("Condor One") acquired
the interest of Park West, Ltd; in 1996 through to a foreclosure action.
Pursuant to the terms , and provisions of the Lease, Condor One is
obligated to pay real estate taxes and assessments on the fee simple title to the
property owned by the CRA in the event that it is determined that the property
is not exempt from taxation as a result of being owned by the City of Miami or
the CRA. In 1993 the property was placed on the tax roll by the Property
Appraiser. The City of Miami contested the assessment. The Court ultimately
ruled in favor of the Property Appraiser and the property was put on the tax
rolls. In 1994 the City of Miami once again contested the tax assessment.
Again the Court ruled in favor of the Property Appraiser that the property was
taxable.
Real estate taxes and assessments on the fee simple title to the property
have not been paid since 1993, the first year the property was put on the tax
rolls. The total outstanding taxes, together with interest, is now approximately
$1,200,000.00. The CRA has made demand on Condor One to pay the
outstanding real estate taxes as provided for by the terms and provisions of the
Lease. Representatives of Condor One met with the Executive Director of the
CRA on November 15, 2001 to discuss this issue. At that time, the CRA agreed
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ITEM 23
December 11, 2001
not to commence eviction proceedings under the Lease without further written
notice to Condor One to give Condor One the opportunity to investigate the
status of the taxes with the Miami Dade County Tax Appraiser's Office and
determine whether the County is willing to waive the accrued interest on the
unpaid taxes.
Based upon recent discussions with the County Attorney's Office the
County takes the position that there is no legal authority to enable the County
to waive the interest accruing on the unpaid taxes and it is the County
Attorney's Office position that payment in full will be required. This
information has been communicated to the representatives of Condor One.
While Condor One recognizes that it has an obligation to pay the real estate
taxes pursuant to the terms and provisions of the Lease is quite possible that
Condor One will raise the following defenses to its obligation to pay the real
estate taxes:
1. When Condor One acgiired the property in December of 1996 it
obtained an Estoppel Certificate from the CRA. The Estoppel
Certificate made no mention of the unpaid real estate taxes. (Since
the Final Judgments in favor of the tax assessor were not entered
until December, 1996, the CRA would not have been aware that there
was an issue with respect to real estate taxes at that time since the
assessments were still in dispute).
2. Condor One will claim that CRA failed to forward tax bills to Condor
One for payment.
3. Condor One will claim that if the CRA had made it aware that it was
obligated to pay real estate taxes that it would have contested the
taxes which would have then lowered the assessment which would, in
turn, have reduced their obligation.
We are currently analyzing the ability of Miami -Dade County to waive the
interest assessed on the unpaid taxes in an attempt to resolve the issues with
Condor One in an amicable fashion.
MIAI #1095979 v1
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