Item Coversheet

CITY OF RIVIERA BEACH CITY COUNCIL
AGENDA ITEM SUMMARY

Meeting Date: 10/22/2019 
Agenda Category:CONSENT RESOLUTION
Subject: 

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RIVIERA BEACH, PALM BEACH COUNTY, FLORIDA, APPROVING THE RELEASE OF CODE ENFORCEMENT FINES AND LIENS; APPROVING THE RELEASE OF RECORD AND RESTATED SETTLEMENT AGREEMENT BY AND BETWEEN THE CITY OF RIVIERA BEACH AND STONYBROOK FL, LLC, REGARDING THE PAYMENT AND SATISFACTION OF EXISTING CODE ENFORCEMENT FINES AND LIENS ASSOCIATED WITH  THE REAL PROPERTY ADDRESSED AS 1555 DR. MARTIN LUTHER KING JR. BLVD., PARCEL CONTROL NUMBER 56-43-42-32-06-000-0090, COMMONLY KNOWN AS THE STONYBROOK APARTMENTS; APPROVING THE HUD AMENDMENT TO THE RESTRICTIVE COVENANT REGARDING THE SETTLEMENT AGREEMENT; AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE THE AFOREMENTIONED DOCUMENTS; AND PROVIDING FOR AN EFFECTIVE DATE.

Recommendation/Motion: 

The City Attorney recommends approval of the Release of Code Enforcement Fines and Liens, the Release of the Settlement Agreement, the Restated Settlement Agreement, and the HUD Amendment to the Restrictive Covenant.  

Originating Dept City Attorney  Costs  
User Dept. Funding Source
AdvertisedNo Budget Account Number
Date   
Paper   
Affected PartiesNot Required   
Background/Summary: 

Stonybrook FL, LLC, is the current owner of Stonybrook Apartments located at 1555 Dr. Martin Luther King, Jr, Blvd., Riviera Beach, Florida, parcel control number 56-43- 42-32-06-000-0090.  In 2018, the City and Stonybrook FL, LLC, entered a settlement agreement for the payment and satisfaction of existing code enforcement fines and liens associated with Stonybrook Apartments (“Settlement Agreement”).

 

Under the Settlement Agreement, Stonybrook FL, LLC, was required to pay the City $286,000 and record a Restrictive Covenant in the Official Records regarding Stonybrook FL, LLC’s, on-going obligation for properly maintaining Stonybrook Apartments, completing the planned redevelopment of the same and for other matters.  The Settlement Agreement was recorded in the Official Records;

 

The City has received the settlement payment of $286,000 from Stonybrook FL, LLC, and a Restrictive Covenant regarding the Settlement Agreement has been recorded in the Official Records.  Under the terms of the Settlement Agreement, the City must execute the Release of the Code Enforcement Fines and Liens.

 

Stonybrook FL, LLC, has requested that the Settlement Agreement be released of record from the Official Records in order to obtain financing to redevelop Stonybrook Apartments and transfer ownership to Azure Estates, FL TC, LP, a Florida limited partnership (“Azure Estates”).  The release of record requested by Stonybrook FL, LLC, for the Settlement Agreement is attached to this Resolution.

 

Moreover, Azure Estates has agreed to assume all of Stonybrook FL, LLC’s obligations as set forth in the Settlement Agreement and perform the same as stated in the Restated Settlement Agreement, which is also attached to the Resolution.

 

In order for Stonybrook FL, LLC, to obtain financing to redevelop Stonybrook Apartments and in order for the United States Department of Housing and Urban Development (“HUD”) to insure said financing, Stonybrook FL, LLC, and HUD have requested that the City approve the HUD Amendment to the Restrictive Covenant, which is also attached to this Resolution.  

 

In the Settlement Agreement, the City agreed to subordinate the Restrictive Covenant to the extent requested by Stonybrook FL, LLC’s mortgage lender.

 

The City Council desires to approve the Release of Code Enforcement Fines and Liens, the Release of the Settlement Agreement, the Restated Settlement Agreement, and the HUD Amendment to the Restrictive Covenant, and finds there is a valid public purpose for the same.

 
Fiscal Years
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Program Income (city)
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Net Fiscal Impact
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(cumulative)

III. Review Comments

A. Finance Department Comments:
 
B. Purchasing/Intergovernmental Relations/Grants Comments:
 
C. Department Director Review:
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Contract End Date
Renewal Start Date
Renewal End Date
Number of 12 month terms this renewal
Dollar Amount
Contractor Company Name
Contractor Contact
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Describe
ATTACHMENTS:
File NameDescriptionUpload DateType
Resolution_approving_Releases_Restated_and_HUD_Amendment_for_Stonybrook_10.14.2019_with_signature_page.docxResolution Approving the Release of Code Enforcement Liens Stonybrook10/15/2019Cover Memo
Final_Release_of_Code_Enforcement_Liens_10.14.2019.docxRelease of Code Enforcement Fines and Liens Exhibit A 10/15/2019Cover Memo
FINAL_Release_of_Settlement_Agreement_10.14.2019.docxSettlement Agreement of Record Exhibit B10/15/2019Cover Memo
Final_Restated_Code_Enforcement_Release_of_Lien_Settlement_Agreement_10.14.2019.docxRestated Code Enforcement Settlement Agreement Exhibit C10/15/2019Cover Memo
FINAL_HUD_Amendment_To_Restrictive_Covenants_-_4847-8855-9002_8.docxHUD Amendment to Restrictive Covenants10/15/2019Cover Memo
REVIEWERS:
DepartmentReviewerActionDate
AttorneyWynn, DawnApproved10/15/2019 - 4:03 PM
PurchasingAnswererApproved10/16/2019 - 6:43 AM
FinanceReynolds, NydiaApproved10/16/2019 - 6:11 PM
AttorneyJacobs, DeirdreApproved10/16/2019 - 6:55 PM
City ClerkJacobs, DeirdreApproved10/16/2019 - 6:55 PM
City ManagerJacobs, DeirdreApproved10/16/2019 - 6:55 PM