Placement: New Business
Action Requested: Motion / Vote
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Request to Lift Permit Freeze Imposed by Notice of Violation Recorded in Book 4321, Page 2372 of the Public Records of St. Lucie County, Florida.
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Submitted By: Elizabeth L. Hertz, Deputy City Attorney, City Attorney’s Office.
Strategic Plan Link: The City's Goal of high-quality infrastructure and facilities.
Executive Summary (General Business): The City has received a joint request by Paar Estates Developing, LLC and Paar Estates at Sawgrass Property Owners Association (“POA)” advising the City that the parties have reached a settlement regarding their differences with respect to the final improvements to the real property in Phase 3A and Phase 3B of the Sawgrass Lakes development. The parties have requested that the City remove the building permit freeze on lots within the Sawgrass Lakes 3A and 3B subdivision plats owned by Paar Estates Developing, LLC or John and Susie Rynard, individually (“Developer Lots”) in order to help facilitate the settlement between the parties.
Presentation Information: Questions will be answered upon request.
Staff Recommendation: Move that the Council enter an order finding that the building permit freeze is lifted as to the Developer Lots, and direct staff to record a Notice in the Public Records of St. Lucie County advising that the permit freeze has been lifted.
Alternate Recommendations:
1. Move that the Council amend the recommendation, enter an order finding the building permit freeze is lifted, and direct staff to record a Notice in the Public Records of St. Lucie County regarding same.
2. Move that the Council not lift the permit freeze and provide staff with direction.
Background: Chapter 156 of the City’s Code of Ordinances “Subdivision Regulations” establishes procedures for the surveying and platting of land in the City of Port St. Lucie. The Subdivision Regulations provide, among other things, that certain required improvements be constructed within each subdivision in the City to ensure property infrastructure is provided. See Section 156.147 of the City’s Code. In fact, the Subdivision Regulations specifically state that the City may require a guarantee before it approves the recording of a final subdivision plat. See Section 156.146 of the City’s Code. A certain plat of a subdivision in Port St. Lucie, Florida, known as Sawgrass Lakes Phase 3A was recorded February 23, 2005 at Plat Book 45, Page 15 of the Official Records of St. Lucie County and another subdivision plat of a subdivision in Port St. Lucie, Florida, known as Sawgrass Lakes Phase 3B was recorded February 23, 2005 at Plat Book 45, Page 18 in the Official Records of St. Lucie County, (collectively “Sawgrass Lakes Plat”). The plat approval for the Sawgrass Lakes Plat was submitted by Sawgrass Developers, LLC. The Resolution (City Resolution 04-R62) approving the Sawgrass Lakes Plat was conditioned on a performance guarantee being provided to the City as the required improvements were not complete at the time the Resolution came before the City Council. The required improvements were determined by virtue of the City Code and the Sawgrass Lakes PUD (the zoning document for the Sawgrass Lakes Plat). A bond was posted by Sawgrass Developer, LLC in conformance with the requirements. After submitting the Sawgrass Lakes Plat Sawgrass Developers, LLC merged with Paramount Quality Homes, Corp. Paramount Quality Homes became the successor developer. Paramount Quality Homes, Corp. defaulted on its loan and a foreclosure was initiated by the bank on the property that secured the loan (which included lots within Sawgrass Lakes Phase 3A and 3B). A final judgment of foreclosure was entered against Paramount Quality Homes, and others, on September 15, 2008. On December 9, 2008, a Certificate of Title in favor of the bank transferring title of 63 lots within Sawgrass Lakes Phase 3A and 3B to the bank was executed. On December 22, 2009, a Special Warranty Deed conveying 63 lots within Sawgrass Lakes Phase 3A and 3B to Paar Estate Developing, LLC was executed (there are only 75 lots within Phase 3A and 3B, cumulatively). John Rynard is the managing member of Paar Estates Developing, LLC. An assignment of Developer’s Rights assigning rights as the Developer of subdivision to Paar Estates Developing, LLC was executed on January 22, 2010, shortly after the conveyance of the 63 lots to Paar Estates Developing, LLC.
While the prior developer, Sawgrass Lakes, LLC, put a surety in place (a bond), that bond expired during the real estate downturn without the City being aware. The expiration of the bond was not discovered until an inquiry regarding missing improvements in the Sawgrass Lakes community was made; a subsequent staff investigation confirmed this fact. On March 18, 2019, the City issued a Notice of Violation of Resolution 04-R62 and placed a permit freeze on the lots within the Sawgrass Lakes Plat owned by Paar Estates Developing, LLC, in order to preserve the status quo. Mr. Rynard requested a hearing on the matter via email on March 18, 2019. A hearing on the matter was held on May 13, 2019, where the City Council voted to enter an ordering finding that the Developer was in violation of City Resolution 01-R62, to preserve the building permit freeze on the Developer owned lots, and direct staff to record a Notice of Violation in the Public Records of St. Lucie County.
A Notice of Violation was recorded in the public records on May 24, 2019, and subsequently amended twice, resulting in the current form of the Notice, attached hereto as Exhibit “A”.
Subsequent to the Notice of Violation being recorded in the public records there were disputes between the Developer, the residents who owned lots within the Sawgrass Lakes Plat, and the POA regarding the missing infrastructure. The POA decided to relieve some of the obligations relating to the missing infrastructure and pursued an amendment to the Sawgrass Lakes Planned Unit Development (“PUD”) (P20-152) in order to update the conceptual plan to add a right-of way-typical for Phase 3A and Phase 3B of Sawgrass Lakes without the sidewalks and to relocate required streets trees to the preserve area. The PUD is one of the documents (as mentioned above) that controls these requirements as they relate to the required improvements necessitated by the Sawgrass Lakes Plat.
During the first reading of the request to approve the Amendment of the PUD, on December 14, 2020, the City Council directed staff to meet with the Developer, a third-party builder (“Holiday Builders”) and the POA to work on solutions. A via memo was provided to Council regarding those discussions. During the second reading of the PUD Amendment on January 11, 2021, City Council approved the item and directed the City Manager to challenge staff to work with the POA to develop a plan to ensure removal of the already placed sidewalks and installation of the final lift of asphalt within the above-mentioned residential subdivision. Following this approval, the City entered into right of entry agreements with the relevant property owners and POA, and the City completed the removal of existing sidewalks within Phase 3A and 3B which is the area of concern within this development.
Notwithstanding the PUD Amendment, Sawgrass Lakes Phase 3A and 3B is still not in compliance with its PUD document or plat approval as a final lift of asphalt, trees, and additional sidewalk had not yet been installed and no bond has been posted. Additionally, there appears to be a continuing dispute regarding who was responsible for the outstanding items - the Developer or the POA.
Issues/Analysis: The City received a letter on June 2, 2021, advising the City that Developer and POA have reached a settlement regarding the required improvements within Sawgrass Lakes Phase 3A and 3B. The relevant parts of the settlement agreement provide the following:
• Developer shall pay a total sum of $100,000.00 to the POA as full and final payment for required improvements, and other outstanding items.
• $50,000.00 of the $100,000.00 shall be held in escrow pending: approval of the settlement by the City, lifting of the permit freeze by the City, and expiration of appeals period of said approval.
• $50,000.00 of the $100,000.00 will be secured by a mortgage on Lot 36 of Phase 3A and the amount will be paid upon the closing on Lot 28 as set forth in the settlement agreement
• The settlement funds shall only be used by the POA to complete the development requirements of the PUD, including but not limited to installation of trees, road paving, and the entry gate and shall also constitute a full and final payment for all assessments, late fees, attorney’s fees and costs associated with collection of assessments from Developer through June 30,2021.
• Developer shall have no further obligation to carry out any infrastructure repairs or maintenance or infrastructure improvements in POA, including but not limited to the final lift of asphalt, installation of entry gate and installation of trees, or other improvements as required by the governmental agencies or the plat.
• The POA by execution of the settlement agreement shall assume those responsibilities.
The POA and Developer have joined in a request that an agenda item be added to the next meeting of the City Council to approve a lifting of the permit freeze under effect under the Notice of Violation issued by the City to the Developer. The POA has indicated it is in agreement, that as a result of the settlement between the Developer and the POA, the permit freeze should be lifted on all lots owned by Paar and John and Susie Rynard, individually, if any.
Financial Information: N/A
Special Consideration: The City will no longer have a freeze on building permits as an enforcement mechanism for the missing infrastructure.
Location of Project: Sawgrass Lakes Plat 3A and 3B
Attachments:
1. Letter Requesting Permit Freeze Lift
2. Settlement Agreement
3. Notice of Violation - Exhibit “A”
NOTE: All of the listed items in the “Attachment” section above are in the custody of the City Clerk. Any item(s) not provided in City Council packets are available upon request from the City Clerk.
Internal Reference Number: 6659
Legal Sufficiency Review:
Reviewed by Elizabeth L. Hertz, Deputy City Attorney. Approved as to Legal form and sufficiency by James D. Stokes, City Attorney.