Extend payment deadline for $141,174 code enforcement fine at 6700 SW 132 Street

DATE: July 10, 2023 TO: Yocelyn Galiano Gomez, ICMA-CM Village Manager FROM: Stephen R. Olmsted, AICP, LEED-GA Planning Director RE: Request for Extension of Time to Pay Outstanding Code Enforcement Fine Todd and Samantha Migon, 6700 SW 132 Street PETITION REQUEST On July 11, 2022, the Village Council considered a request submitted by property owners Todd and Samantha Migon (Samantha Loud Migon Trust) for mitigation of code enforcement fines and penalties in the amount of $141,174.48 that accrued related to a code enforcement violation at their property located at 6700 SW 132 Street. After review and discussion of the request, the Village Council approved a reduction in accrued fines to $110,000 with the condition that it be paid within 12 months, and if not paid, interest will accrue on the reduced amount of $110,000. Accordingly, if not paid by July 11, 2023, daily interest will begin to accrue on the outstanding amount at an annualized rate of 4.82%, compounded monthly. Recently, on June 8, 2023, the Village was notified by Mr. Migon that he has not been able to sell his property for reasons outlined in his request (attached), and will not be able to pay the reduced fine and penalties by the due date of July 11, 2023. Mr. Migon is requesting an extension of time, and will be available at the Village Council meeting on July 18, 2023 to present his request to the Village Council, and explain the circumstances related to his request. CASE HISTORY The Village of Pinecrest issued a Building Permit for renovations and additions at the existing residence on August 21, 2012. Although some inspections were completed and approved, the final building inspection required completion of additional work. The work was not 2 completed within the time frame of the issued permit and the permit subsequently expired on July 3, 2017. The permit was not renewed as required and a Notice of Violation was issued on May 7, 2018. A Hearing before the Special Magistrate was convened on September 5, 2018 and the owners were given 30 days to renew the expired permit. The permit was not renewed as required and fines in the amount of $100 per day accrued pursuant to the provisions of the Special Magistrate’s Order. The permit was renewed on May 13, 2022 (Permit BL2022-0555) and all required work was inspected and found to be complete on May 16, 2022. Pursuant to Division 2-150 of the Village’s Code of Ordinances, the Village Council considered the requested reduction in code enforcement penalties and approved a reduced fine in the amount of $110,000 to be paid within one year, by July 11, 2023. STAFF RECOMEMNDATION Staff recommends that the Village Council grant Mr. Migon an additional 6 months to pay the reduced fine in the amount of $110,000, extending the required deadline for payment from July 11, 2023 to January 11, 2024, with the condition that if not paid within 6 months, interest on the outstanding fine shall accrue. June 03, 2023 VILLAGE OF PINECREST V. SAMANTHA LOUD MIGON TRUST 6700 SW 132 ST PINECREST, FL. 33156-6926 FOLIO: 2050140060070 DATE OF VIOLATION: 05/07/2018 ISSUE DATE: 07/30/2018 CASE #: BC18-0044 OFFICER: ESTHER CABRERA DEPARTMENT: DPZ FINE / PENALTY: ($110,000) BUILDING PERMIT #: BL2022-0555 BL2011-1422 VIOLATIONS: 1. FLORIDA BUILDING CODE 105.4.1.1 Permit BL2011-1422 is expired. A new permit is required. 2. FLORIDA BUILDING CODE 110.1 Failure to obtain required inspection. BRIEF HISTORY: The building violation is for Building Permit BL2011-1422 which was issued on 08/21/2012 for renovations and additions to the residence located at 6700 SW 132 ST. All work inspections were completed and finalized including zoning by 11/01/2016 except for final building. Final building walk through was on 11/02/2016 and was failed. Final Building was denied because finish work still needed to be completed such as interior stairwell, railing system as well as other unfished interior works. The cause for unfinished interior work at the time was due to the lack of funds to complete the renovations do to foreclosed properties and settlements made with Total Bank and creditors through the United States Bankruptcy Court, Southern District of Florida, Miami Division. As for the violation BC18-0044 created on 07/30/18 and for the hearing that took place 09/05/2018 in front of the Magistrate. As of July 11th, 2022, at the Village Council Meeting an agreement was made to extend a 1 year grace period to pay fines. I am hereby writing to the City Manager and esteemed council members asking for additional time to pay the fines while we continue to sell the house to pay for the funds. Unfortunately, the housing market was strong the first quarter of 2023 but saw a significant decline in the second quarter when this agreement was made. With our realtors optimistic and hopeful thoughts, she thought our beautiful Pinecrest home would sell. Unfortunately, it is a year later with two price reductions but still no buyers. We currently have our house listed competitively to sell at 6.8 million from the original asking price of 8.5 million. Some, thoughts from my realtor as to why our house has not sold yet as well as some attached articles: • Heavy traffic on Ludlam Road/ 67th Ave. • Loud noise due to traffic and lack of privacy in backyard because of Ludlam Road/ 67th Ave. • Too far South in Pinecrest—many buyers consider the location to be Palmetto Bay because of the proximity to 136th St. • School zone is NOT Pinecrest Elementary. Many Buyers with small children want to send their children to Pinecrest Elementary. • Missed the window of opportunity of the “seller’s market” during the Pandemic. Listed the home when the real estate market shifted from a “seller’s market” to a “buyer’s market”. • Homeowners, Flood, and Windstorm Insurance costs are astronomically high. Several interested Buyer’s backed out of making formal offers because of the cost to insure the home and finding quality fair priced Homeowner’s Insurance in general. • The market has shifted to a Buyer’s Market causing an increase of properties for sale in Pinecrest. Buyers are not in a rush to purchase because of the high interest rates, inflation, uncertainty of the economy, and looming recession. • The home is custom making it much larger and more lavish than any other property in the area due to the unique custom details and build outs in the home. It takes longer to find a Buyer who appreciates the extensive high-end finishes and custom details. (Example: Indoor Walnut wooden hand carved custom slide in family room). • Large shift in the real estate market since June 2022: * Inflation * Interest Rates have close to double since the beginning of the Pandemic * Buyers are waiting to purchase until inflation stabilizes. Please take our request into considerations. Sincerely, Todd A. Migon Samantha L. Migon