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Home My Public Portal About18-9450 Lien Settlement Agreement w/Cuyahoga w/Castle Opa, LLC Sponsored by: City Manager RESOLUTION NO. 18-9450 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF OPA-LOCKA, FLORIDA, APPROVING THE PROPOSED LIEN SETTLEMENT WITH CASTLE OPA, LLC FOR THE CUYAHOGA PROPERTY SITE, LOCATED AT 1700 SERVICE ROAD, OPA-LOCKA, FLORIDA, RESULTING IN A 25% REDUCTION OF THE $261,000.00 LIEN AMOUNT TO $195,000.00, WITH A PAYMENT OF $150,000.00 UPON CITY COMMISSION APPROVAL TO BE PAID BY JANUARY 15, 2018 AND THE $45,000.00 BALANCE TO BE PAID OVER AN 18 MONTH PERIOD UNTIL JUNE 30, 2019; ANY UNPAID BALANCE AS OF JUNE 30, 2019 CAUSES THE LIEN TO REVERT TO THE ORIGINAL AMOUNT OF $261,000 WITH THE REMAINING UNPAID BALANCE TO BE PAID NO LATER THAN JULY 31, 2019; PROVIDING FOR INCORPORATION OF RECITALS; PROVIDING FOR AN EFFECTIVE DATE. WHEREAS,the property located at 1700 Service Road known as the Cuyahoga Site has been a major issue of concern since the late 1980's; and WHEREAS, the site has been identified as a brownfield site with an unknown level of contamination which must be addressed; and WHEREAS, the site has been neglected and not properly maintained and through enforcement actions liens have been recorded for this site; and WHEREAS, Castle Opa, LLC has determined they want to develop this site and will therefore be required to settle the brownfield issues and the liens; and WHEREAS, the City Commission is interested in the development of this site and the resolutions of the issues at this site; and WHEREAS, the City Commission desires to reduce the liens by 25% and allow Castle Opa, LLC to pay$150,000.00 now and the balance of$45,000 by June 30, 2019; and WHEREAS, any unpaid balance as of June 30, 2019 would cause the lien amount to revert to the original amount of$261,000 and the unpaid balance would be due by July 31, 2019; and WHEREAS, the lien settlement is limited to the City of Opa-Locka and Castle Opa, LLC, subject to the closing of the sale and satisfaction of the lien settlement agreement within 30-days; if the sale does not close, the original lien amount remains in effect against the present owner, Miller Legg. Resolution No. 18-9450 NOW,THEREFORE,BE IT DULY RESOLVED BY THE CITY COMMISSION OF THE CITY OF OPA-LOCKA,FLORIDA: Section 1. RECITALS ADOPTED The recitals to the preamble herein are incorporated by reference. Section 2. AUTHORIZATION The City Commission of the City of Opa-Locka, Florida, hereby directs and authorizes the City Manager to execute the lien settlement agreement as described in this legislation. SECTION 3. SCRIVENER'S ERRORS. Sections of this Resolution may be renumbered or re-lettered and corrections of typographical errors which do not affect the intent may be authorized by the City Manager, or the City Manager's designee, without need of public hearing, by filing a corrected copy of same with the City Clerk. Section 4. EFFECTIVE DATE This Resolution shall take effect immediately upon adoption and is subject to the approval of the Governor or his designee. PASSED AND ADOPTED this 12`h day of Januar 2018. .rte - ? a L. T. i or ayor Attest to: Approved as to form and legal sufficiency: t Jo (t)n6'—'‘L-.1a Flores Vincent T. Brown, Esq. `�- City Clerk The Brown Law Group, LLC City Attorney Moved by: VICE MAYOR KELLEY Seconded by: COMMISSIONER RILEY Commissioner Vote: 3-1 Commissioner Holmes: NOT PRESENT Commissioner Riley: YES Commissioner Pigatt: NO Vice Mayor Kelley: YES Mayor Taylor: YES cvp:ocKa,.. City of Opa-Locka Agenda Cover Memo Department Department f' Director: Gregory Gay Director Signature: ---ter �""�'° ' Budget Budget Administrator: Ernesto Reyes Administrator Signature: Finance Director: Bryan Hamilton FD Signature: Department Asst City Manager: William Green ACM Signature: 4, City Manager: Ed Brown CM Signature: Commission Item Type: Resolution Ordinance --Other Meeting Date: 12/13/17 X (EnterXin box) Fiscal Impact: Ordinance Reading: 1st Reading 2nd Reading (EnterXin box) Yes No (EnterXin box) Public Hearing: Yes No Yes No X (EnterXin box) X Funding Source: (Enter Fund& Advertising Requirement: Yes No Dept) (EnterXin box) Ex: X Account#: Contract/P.O. Yes No RFP/RFQ/Bi#: Required: (EnterXin box) X Strategic Plan Yes No Strategic Plan Priority Area: Strategic Plan Obj./Strategy: (list Related Enhance Organizational (] the specific objective/strategy this item will (EnterXin box) X Bus.&Economic Dev • address) Public Safety Quality of Education Qual.of Life&City Image 1M Communcation p _ Sponsor Name City Manager Department: Planning&Community City Manager Development Short Title: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF OPA-LOCKA, FLORIDA, TO APPROVE THE PROPOSED LIEN SETTLEMENT FOR THE CUYAHOGA PROPERTY SITE BY ROYAL CASTLE COMPANIES IN WHICH THEY AGREED TO A 25% REDUCTION OF THE $261,000 LIEN AND ROYAL CASTLE COMPANIES WILL PAY$195,000. THEY AGREE TO A PAYMENT OF$150,000 UPON CITY COMMISSION APPROVAL TO BE PAID BY DECEMBER 31, 2017; THE $45,000 BALANCE WIL BE PAID OVER AN 18 MONTH PERIOD UNTIL JUNE 30, 2019; IF THERE IS AN UNPAID BALANCE ON JUNE 30, 2019 THEN THE LIEN GOES BACK TO THE ORIGINAL AMOUNT DUE OF $261,000 WITH THE REMAINING UNPAID BALANCE DUE NO LATER THAN JULY 31, 2019; PROVIDING FO A SERVIBILITY CLAUSE; PROVIDING FOR A CONFLICT AND REPEALER CLAUSE AND RESCINDING ALL ORDINANCES IN CONFLICT; PROVIDING FOR AN EFFECTIVE DATE. Staff Summary: A Resolution of the Mayor and City Commission of the City of Opa-locka, Florida, to approve the proposed lien settlement for the Cuyahoga property site by Royal Castle Companies in which they agreed to a 25% reduction of the $261,000 lien and Royal Castle Companies will pay$195,000. They agree to a payment of$150,000 upon City Commission approval to be paid by December 31, 2017; the$45,000 balance wil be paid over an 18 month period until June 30, 2019; If there is an unpaid balance on June 30, 2019 then the lien goes back to the original amount due of $261,000 with the remaining unpaid balance due no later than July 31, 2019; Providing fo a servibility clause; Providing for a conflict and repealer clause and rescinding all ordinances in conflict; Providing for an effective date. BACKGROUND: Mr. Eliot Stone of Royal Castle Development has submitted a letter to mitigate the liens on the Cuyahoga site. He and his development team seeks to acquire this property, clean up the contamination, and develop as a mixed use commercial/residential complex comprised of 254 residential units and 26,000SF of commercial/retail space. The liens that the City has information on is estimated to be in excess of$250K. Mr. Stone seeks to pay a percentage of the liens that the City has on record. The Cuyahoga Property has been a major issue of concern since the late 1980s. For the past 4+ years, the City Attorney along with Staff have been trying to resolve the immediate issues which related to the overgrowth of the property and the proliferation of animal life that has become a major nuisance to the residential community to the west. The Property has also been identified as a brownfield site with an unknown levels of contamination which has been a long term issues that must be addressed. On November 3rd, 2016, PCD staff and Vincent Brown, City Attorney met with Mr. Reese Stigliano and Mr. Peter Messina of Brenner Real Estate Group and their client, Mr. Elliot Stone of Royal Castle Companies. Mr. Stone has made an offer to purchase the Cuyahoga Property from Miller Legg Capital Holdings. While he is under contract and seeking to close on the property around the end of this year, Mr. Stone has a short time period to conduct his due diligence on the conditions/issues related to the property. Miller Legg had at one time proffered a solution to the former City attorney to address some of the concerns, but no actions were taken. Due to overgrowth and existing conditions, the property has been cited by the City's Code Enforcement Office and liens have been placed on the property. Attorney Brown made the new potential buyer aware the liens on the property and that this would need to be resolved. Proposed Action: Staff recommended approval for this legislation Attachment: Draft Resolution accepting the lien settlement payment plan Royal Castle Companies Lien Payment/Agreement Letter e- �9 � a Og4q F+A—b0,.' Memorandum TO: Myra L.Taylor, Mayor Joseph Kelley, Vice Mayor Matthew Pigatt, Commissioner John B. Riley, Commissioner Timothy Holmes, Commissioner FROM: Ed Brown, Interim City Manager DATE: November 21, 2017 RE: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF OPA-LOCKA, FLORIDA, TO APPROVE THE PROPOSED LIEN SETTLEMENT FOR THE CUYAHOGA PROPERTY SITE BY ROYAL CASTLE COMPANIES PROVIDING FOR A SERVIBILITY CLAUSE; PROVIDING FOR A CONFLICT AND REPEALER CLAUSE AND RESCINDING ALL RESOLUTIONS IN CONFLICT; PROVIDING FOR AN EFFECTIVE DATE. Request: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF OPA-LOCKA, FLORIDA, TO APPROVE THE PROPOSED LIEN SETTLEMENT FOR THE CUYAHOGA PROPERTY SITE BY ROYAL CASTLE COMPANIES IN WHICH THEY AGREED TO A 25% REDUCTION OF THE $261,000 LIEN AND ROYAL CASTLE COMPANIES WILL PAY $195,000. THEY AGREE TO A PAYMENT OF $150,000 UPON CITY COMMISSION APPROVAL TO BE PAID BY DECEMBER 31, 2017; THE $45,000 BALANCE WILL BE PAID OVER AN 18 MONTH PERIOD UNTIL JUNE 30, 2019; IF THERE IS AN UNPAID BALANCE ON JUNE 30, 2019 THEN THE LIEN GOES BACK TO THE ORIGINAL AMOUNT DUE OF $261,000 WITH THE REMAINING UNPAID BALANCE DUE NO LATER THAN JULY 31, 2019; PROVIDING FOR SEVERABILITY CLAUSE; PROVIDING FOR A CONFLICT AND REPEALER CLAUSE AND RESCINDING ALL RESOLUTIONS IN CONFLICT; PROVIDING FOR AN EFFECTIVE DATE. Background: Mr. Eliot Stone of Royal Castle Development has submitted a letter to mitigate the liens on the Cuyahoga site. He and his development team seeks to acquire this property, clean up the contamination, and develop as a mixed use commercial/residential complex comprised of 254 residential units and 26,000SF of commercial/retail space. The liens that the City has information on is estimated to be in excess of $250K. Mr. Stone seeks to pay a percentage of the liens that the City has on record. The Cuyahoga Property has been a major issue of concern since the late 1980s. For the past 4+ years, the City Attorney along with Staff have been trying to resolve the immediate issues which related to the overgrowth of the property and the proliferation of animal life that has become a major nuisance to the residential community to the west. Resolution —Cuyahoga Lien Settlement-11-21-17 The Property has also been identified as a brownfield site with an unknown levels of contamination which has been a long term issues that must be addressed. On November 3rd, 2016, PCD staff and Vincent Brown, City Attorney met with Mr. Reese Stigliano and Mr. Peter Messina of Brenner Real Estate Group and their client, Mr. Elliot Stone of Royal Castle Companies. Mr. Stone has made an offer to purchase the Cuyahoga Property from Miller Legg Capital Holdings. While he is under contract and seeking to close on the property around the end of this year, Mr. Stone has a short time period to conduct his due diligence on the conditions/issues related to the property. Miller Legg had at one time proffered a solution to the former City attorney to address some of the concerns, but no actions were taken. Due to overgrowth and existing conditions, the property has been cited by the City's Code Enforcement Office and liens have been placed on the property. Attorney Brown made the new potential buyer aware the liens on the property and that this would need to be resolved. Financial Impact: The City will collect the lien settlement amount. The City will not expend any funds because of the approval of this resolution. Implementation Time Line: Immediately Legislative History: None Staff Recommendation: Staff recommends approval of this legislation Planning Council Recommendation: N/A Attachment(s) Draft Resolution accepting the lien settlement payment plan Royal Castle Companies Lien Payment/Agreement Letter Prepared By: Planning & Community Development Dept Gregory Gay, Director Gerald Lee, Zoning Official Resolution —Cuyahoga Lien Settlement-11-21-17 2