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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 DATE: April 9, 2020 RE: Proposed Settlement for City Commission Meeting — April 9, 2020 3637 Corp., Inc. vs. City of Miami, pending in the United States District Court for the Southern District of Florida. Case No.: 18-CV-20367-RS File No.: 7353 The attached proposed Resolution seeks authorization for settlement of all claims brought against the City of Miami ("City") in matter of 3637 Corp., Inc. vs. City of Miami, pending in the United States District Court for the Southern District of Florida, Case No.: 18-CV-20367-RS. The proposed settlement provides that 3637 Corp., Inc. ("Plaintiff') will be issued a certificate of use for an adult entertainment establishment for the subject property, based on equitable estoppel grounds. Further, because Plaintiff has been deprived of the adult entertainment establishment use on the subject property during the pendency of the longstanding dispute over the permissible uses on the property, the City will allow an extension of the current legal nonconforming adult entertainment use on the property for three years and nine months. The parties will stay the legal proceedings in this matter, and the Plaintiff will waive all right to any attorney's fees accrued, to date, arising out of or related to this dispute. Note that the proposed settlement is part of a two -phased settlement that has been negotiated between the parties. The Plaintiff intends to apply for an exception for an extension on their legal nonconforming adult entertainment use on the subject property, which will be brought before the City Commission. If that exception is approved on by the City Commission, the matter will be dismissed, and all potential damages will be released. 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 City of Miami Legislation Resolution Enactment Number: R-20-0099 City Hall 3500 Pan American Drive Miami, FL 33133 www.miamigov.com File Number: 7353 Final Action Date:4/9/2020 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 3637 CORP., INC. VS. CITY OF MIAMI, PENDING IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF FLORIDA, CASE NO.: 18-CV-20367-RS.RIDA, CASE NO.: 18-CV-20367-RS. WHEREAS, on February 6, 2018, 3637 Corp., Inc. ("Plaintiff") served a lawsuit against the City of Miami ("City") in the United States District Court for the Southern District of Florida, Case No.: 18-CV-20367-RS; and WHEREAS, the trial of this matter is scheduled for May 11, 2020; and WHEREAS, the Plaintiff and the City (collectively, "Parties") have been involved in a longstanding dispute with regard to the permissible uses for the Plaintiff's property located at 2663 Northwest 36 Street, Miami, Florida 33142 ("Property"); and WHEREAS, after extensive discovery, the Parties have mutually negotiated a two - phased settlement agreement; and WHEREAS, in Phase I, the Parties have agreed that (1) the City will issue the Plaintiff a certificate of use for an adult entertainment establishment use for the property; (2) the City will extend the legal nonconforming adult entertainment use for the entire 11,500 square feet footprint of the original 2000 certificate of use for three (3) years and nine (9) months; (3) the Plaintiff will irrevocably waive all claims for attorneys' fee arising out of or related to this dispute to date —estimated at present to be valued around $500,000; and (4) the Parties will request a stay of the instant lawsuit; and WHEREAS, in Phase II, the Parties have agreed that (1) immediately after Phase I of the settlement is approved, the Plaintiff will apply for an Exception under Ordinance No. 13114, as amended, the Zoning Ordinance of the City of Miami Florida, to extend its legal nonconforming adult entertainment use for twenty (20) years; (2) the City Administration will support that application; (3) if the City Commission approves the Exception, which is in no manner guaranteed by this agreement, the Parties will enter into a joint stipulation to dismiss the instant litigation; and (4) the Plaintiff will waive all claims to any and all damages, any further attorneys' fees (accrued after approval of the Phase I settlement), and costs arising out of or related to this dispute; 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 3637 Corp., Inc. vs. City of Miami, pending in the United States District Court for the Southern District of Florida, Case No.: 18-CV-20367-RS. Section 3. This Resolution shall become effective immediately upon its adoption. APPROVED AS TO FORM AND CORRECTNESS: 1 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.