HomeMy WebLinkAboutMemorandumCITY OF MIAMI
OFFICE OF THE CITY ATTORNEY
MEMORANDUM
TO: Honorable Mayor and Members of the City Commission
FROM: George K. Wysong III, City Attorney klifrs,t2z-
DATE: November 20, 2025
RE: City Commission Meeting — November 20, 2025
Proposed settlement of Pedro J. Garcia, as property appraiser for Miami -Dade
County v. City Of Miami, BH3 Ig Developers, LLC and Jim Zingale, as Executive
Director Department of Revenue, in the 11th Judicial Circuit in and for Miami -
Dade County, Civil Case No. 2024-013804-CA-01, agreeing to a tax assessment
value for folio number 01-3231-061-0010 and 01-3231-061-0020 for tax year
2023 of $102,335,443.00, tax year 2024 of $104,484,928.00, and tax year 2025
of $104,490,418.00 and for which Flagstone Island Gardens, LLC and/or BH3 IG
Developers, LLC will be responsible for payment.
File No.: 18478
The attached proposed Resolution seeks authorization to a settle a lawsuit
brought by the Miami -Dade Property Appraiser contesting the tax assessment value of
City of Miami ("City") owned property currently leased to Flagstone Island Gardens, LLC
("Flagstone"). This agreement would set the tax assessment value of 01-3231-061-0010
and 01-3231-061-0020, now joined as a single folio, for tax year 2023 at a value of
$102,335,443.00, tax year 2024 at a value of $104,484,928.00 and tax year 2025 at a
value $104,490,418.00. Pursuant to the Master Development Agreement Flagstone and
their agent BH3 IG Developers, LLC ("BH3") are responsible for payment of the taxes
for these folios.
As lessee of City -owned property, Flagstone appealed the tax assessment value
of the folios for tax year 2023 to the Miami -Dade County Value Adjustment Board. The
Value Adjustment Board greatly reduced the tax assessment value based on the
appeal. The Miami -Dade Property Appraiser then filed suit against the City, as owner of
the property, and the Florida Department of Revenue contesting the Value Adjustment
Board's reduction. The City tendered defense and indemnification of the lawsuit to
Flagstone and their agent, BH3. Flagstone and BH3 accepted the tender and has paid
all fee/costs associated with the lawsuit. Flagstone and BH3 have agreed to the
settlement terms including payment of the taxes and requests the City's approval as the
City maintains ownership of the folios.
The Office of the City Attorney has investigated and evaluated this case and has
approved the recommendation of this settlement.
cc: Art Noriega, V, City Manager
Miriam M. Santana, Agenda Coordinator
Attachment(s)
City of Miami
Legislation
Resolution
Enactment Number: R-25-0496
City Hall
3500 Pan American Drive
Miami, FL 33133
www.miamigov.com
File Number: 18478 Final Action Date:11/20/2025
A RESOLUTION OF THE MIAMI CITY COMMISSION AUTHORIZING THE
SETTLEMENT OF PEDRO J. GARCIA, AS PROPERTY APPRAISER FOR MIAMI-
DADE COUNTY V. CITY OF MIAMI, BH3 IG DEVELOPERS, LLC AND JIM ZINGALE,
AS EXECUTIVE DIRECTOR DEPARTMENT OF REVENUE, IN THE 11TH JUDICIAL
CIRCUIT IN AND FOR MIAMI-DADE COUNTY, CIVIL CASE NUMBER 2024-013804-
CA-01, AGREEING TO A TAX ASSESSMENT VALUE FOR FOLIO NUMBER 01-3231-
061-0010 AND 01-3231-061-0020 FOR TAX YEAR 2023 OF $102,335,443.00, TAX
YEAR 2024 OF $104,484,928.00 AND TAX YEAR 2025 OF $104,490,418.00, AND
FOR WHICH FLAGSTONE ISLAND GARDENS, LLC AND/OR BH3 IG DEVELOPERS,
LLC WILL BE RESPONSIBLE FOR PAYMENT PURSUANT TO THE MASTER
DEVELOPMENT AGREEMENT DATED APRIL 20, 2020, IN FULL AND COMPLETE
SETTLEMENT OF ANY AND ALL CLAIMS AND DEMANDS BETWEEN THE
PARTIES, INCLUDING ALL CLAIMS FOR ATTORNEYS' FEES AND COSTS FOR
EACH PARTY.
WHEREAS, Flagstone Island Gardens, LLC ("Flagstone") entered in a Master
Development Agreement ("MDA") with the City of Miami ("City") on April 13, 2020, which
included folios 01-3231-061-0010 AND 01-3231-061-0020; and
WHEREAS, the MDA requires Flagstone to defend, indemnify and hold harmless the
CITY OF MIAMI against any claims, action or liabilities, including ad valorum taxes; and
WHEREAS, Flagstone successfully petitioned the Miami -Dade County Value Adjustment
Board ("VAB") to reduce the tax assessment value for folios 01-3231-061-0010 and 01-3231-
061-0020 for tax year 2023; and
WHEREAS, Pedro J. Garcia, as Property Appraiser of Miami -Dade County ("Property
Appraiser") filed suit in the 11th Judicial Circuit in and for Miami -Dade County, Civil Case
Number 2024-013804-CA-01, against the City as the owner of folios 01-3231-061-0010 AND
01-3231-061-0020 ("Lawsuit") challenging the VAB's reduction; and
WHEREAS, the City tendered the defense of the Lawsuit to Flagstone and Flagstone
and their agent BH3 IG Developers, LLC accepted the tender, joined the litigation as a party and
have defended the City in the Lawsuit; and
WHEREAS, Flagstone, BH3 IG Developers, LLC and Property Appriaser have reached
a settlement with an agreement to enter into a Stipulated Final Judgment setting the ad valorem
tax value for folios 01-3231-061-0010 AND 01-3231-061-0020 for tax year 2023 at the
combined value of $102,335,443.00, for which Flagstone and/or BH3 IG Developers, LLC will
be responsible for payment; and
WHEREAS, in 2024, folio 01-3231-061-0020 was combined into folio 01-3231-061-0010,
and Flagstone, BH3 IG Developers, LLC and Property Appraiser, have further agreed that for
tax years 2024 and 2025 the ad valorem tax value for folio 01-3231-061-0010 shall be
$104,484,928.00 and $104,490,418.00, respectively, for which Flagstone and/or BH3 IG
Develoers, LLC will be responsible for payment;
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 fully set forth in this Section.
Section 2. The City agrees to the entry of a Stipulated Final Judgment by the Court in
the Lawsuit setting the 2023 ad valorem tax rate for folios 01-3231-061-0010 AND 01-3231-061-
0020 for tax year 2023 at the combined value of $102,335,443.00.
Section 3. The City further agrees that the ad valorem tax value for folio 01-3231-061-
0010 for tax years 2024 and 2025 shall be $104,484,928.00 and $104,490,418.00, respectively,
as agreed to by Flagstone, BH3 Developers, LLC and Property Appraiser, for which Flagstone
and/or BH3 IG Developers, LLC, will be responsible for payment.
Section 3. The City Manager is authorized' to enter into any release required to affirm
this settlement.
Section 4. This Resolution shall become effective immediately upon its adoption.
APPROVED AS TO FORM AND CORRECTNESS:
ge = . Wyy ng III, C y tor' -y 11/7/2025
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.