Broward County Commission Regular Meeting
Director's Name: Lary S. Mahoney
Department: Public Works Division: Real Property and Real Estate Development
Information
Requested Action
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MOTION TO APPROVE Lien Settlement Agreement (“Agreement”) among the City of Fort Lauderdale (“City”), Broward County (“County”), and Commercial Blvd Realty, LLC (“Seller”) for the settlement of City code enforcement fines levied against Seller on the property located at 2000 W. Commercial Boulevard, Fort Lauderdale (“Property”), in substantially the form as Exhibit 1; and authorize the County Administrator to execute the Agreement with any required modifications, provided such modifications do not impose any additional, material financial risk on the County, and subject to review and approval as to legal sufficiency by the Office of the County Attorney. (Commission District 8)
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Why Action is Necessary
Board approval is required for Broward County to execute the settlement agreement.
What Action Accomplishes
The Agreement serves to settle the open City liens on the Property and enables the County to purchase the Property without the ongoing accrual of City liens.
Goal Related Icon(s)
☐County Commission
☐Go Green
☐MAP Broward
Previous Action Taken
None.
Summary Explanation/Background
PUBLIC WORKS/REAL PROPERTY AND REAL ESTATE DEVELOPMENT DIVISION RECOMMEND APPROVAL OF THIS ITEM.
On May 2, 2023, Broward County entered into a Purchase and Sale Agreement with Commercial Blvd Realty, LLC (“Seller”) for the acquisition of a property located at 2000 W Commercial Boulevard, Fort Lauderdale, Florida 33309 (“Property”). After the County acquires the Property, the County will move as quickly as possible to demolish the existing structure on the Property to allow for a future planned use.
During due diligence prior to closing on the property, the County became aware of liens on the property from the City of Fort Lauderdale. Specifically, the City of Fort Lauderdale (“City”) recorded two code enforcement liens against the Property (“City Liens”): 1) Case Number BE21100086, which has accumulated a current total fine of $44,600 and 2) Case Number CE23010152, which has accumulated a current total fine of $11,500. The fines continue to accrue at a daily rate of $100 per violation until paid in full or until the Property is brought into compliance.
A condition precedent to closing on the purchase and sale transaction between Seller and County is the removal of the current City Liens. Seller has requested from City a settlement of the City Liens, to be paid in full by the Seller. As part of the Seller and City’s settlement of the City Liens, City requires County to enter into the Lien Settlement Agreement (“Agreement”) to set forth the settlement terms between the City and Seller and to set forth the County’s plan to bring the Property into compliance with the City’s Building Code (“Code”) after County takes ownership of the Property. Pursuant to the Agreement, the County shall meet certain Code compliance milestones and demolish the illegally built structures after the acquisition of the Property within twelve and a half months. Per the terms of the Agreement, the City shall reinstate the fines if County fails to satisfy the requirements of County to bring the Property into compliance with the Code. In certain instances, including acts of God and delays caused by City, County may request, and City may grant County reasonable extensions to meet certain milestones as set forth in the Agreement.
The County and Seller will be required to execute the Agreement within seven calendar days after receiving City Commission approval and, upon full execution of the Agreement, Seller shall pay $12,975 to City to settle the City Liens.
The Agreement is currently being finalized between the three parties and will be distributed as additional material.
All documents have been reviewed and approved as to form by the Office of the County Attorney.
Source of Additional Information
Lary S. Mahoney, Director of Real Property and Real Estate Development, Public Works Department, (954) 357-7357
Trevor M.A. Fisher, P.E., MBA, Director, Public Works Department, (954) 357-6410
Fiscal Impact
Fiscal Impact/Cost Summary
There is no fiscal impact to County on this item provided the County meets the Code compliance milestones in the time period provided.