the espanola way of doing things

MIAMI MIRROR – TRUE REFLECTIONS

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27 February 2015

UPDATE to Letter to Overseer Joe Jimenez, Assistant City Manager

Further research in regards to the 13 February letter to Overseer Jimenez (below) to which not a single party responded indicates that Mr. Robins’ property on Espanola Way is not actually within Flamingo’s residential zone covered by Sec 142-1111, which provided a window for legal certification of transient residential usage in the residential neighborhood, but is rather on the end of Espanola Way that is zoned commercial, where transient public lodgings in contributing historical structures would be locally permitted subject to fire protection standards including fire sprinklers or systems “equivalent” or “superior” in their effect to sprinklers.

Although one might think that fire sprinklers = fire sprinklers shown to reduce death from fires by 80% in homes at least, there exists latitude in definition of the term according to the desires of interested parties to save the character of historical structures, not to mention extraordinary expense. That is, equivalency or better may be determined by local officials thus making policy as a matter of art rather than science, allowing for considerable discretion, which has proven problematic whenever officials are arrested for corruption.

According to knowledgeable sources, it is a mystery why Mr. Robins, whose office has not responded directly to the letter below, would apply for a change from his state-licensed transient usage of Espanola Way Suites to transient hotel usage since the


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current zoning permits transient apartments, or why his local application for transient apartment usage was denied because the engineer needed documents appertaining to any previous certificate of use and occupancy, of which there was none found. Perhaps his Espanola Way Suites was unintentionally left in the lurch of official bungling as a dead issue – a lurch was a sort of gate in churchyards where coffins were left for pickup to be taken to the cemetery.

Although the case is before the city magistrate, no more than an arm of the city administration, especially since City Manager Jimmy Morales got rid of special masters who were trying to apply the law, saying he wanted to take the special master facility “in a new direction,” officials have yet, to the best of my knowledge, pursued the collection of the city’s share of the resort tax, which would be 3% of revenues from the Suites over several years. If cooperative with tax authorities, city officials would share information to see if the balance of 10% tax on revenues was regularly paid to county and state, and if the revenue was reported on federal income tax returns.

Finally, the building department has not, to the best of my knowledge, yet responded to repeated calls for inspection of what appears to be unpermitted construction, which, if in fact not permitted, would call for the closure of the facility, applications for permits, and a double the permit fee fine

David Arthur Walters

13 February 2015

Joe Jimenez, Overseer Building Department Code Compliance Department Ethics Department CITY OF MIAMI BEACH

Subject: Scott Robin’s Espanola Way Suites

Dear Sir:

Attached please find my file on Espanola Way Suites, an apartment hotel located at 443 Espanola Way. I assume that Scott Robins owns the business by virtue of privity with the owner of record as he does the parcel where it is located. Mr. Robins, as you know, is a prominent developer and public figure with considerable political influence, and is a friend and business partner with our current mayor, with whom he most notably


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partnered with in a Sunset Harbour development in a joint-business with the City of Miami Beach.

Espanola Way Suites obtained state license TAP2329515 on 15 November 2011 to operate as a transient apartment facility. However, the city denied its application for that use on 22 December 2011 yet allowed it to operate as such ever since until the Code Compliance Department was pressed by private parties to issue a violation notice on 12 November 2014. Since then it was referred to the Special Master, who recently permitted the continued operation of the facility with a two month continuance.

The problem with the usage appears to be that transient apartments may not be operated within the Espanola Way Historic District. Miami Beach Ordinance Sec. 142-1111 for short-term rental of apartment units or townhomes, effective 19 June 2010, allowed existing transient apartment owners in the Flamingo Park and Espanola Way Historic Districts six months after that date to apply for permits for that usage provided that certain provisions were met for certification. That ordinance was virtually ad hoc since it was reported in the formal preliminaries to the legislation that only one owner with four buildings in the Flamingo District would be affected. To what usage Mr. Robin’s 12 apartments, at what was formerly called the Grace Apartments and Grace Hotel, were being put since he purchased the entire parcel in 1989 is a matter for further inquiry.

[Further inquiry indicates that Mr. Robins’ property on Espanola Road is not actually within Flamingo’s residential zone covered by Sec 142-1111 but is rather on the end of the Road that is zoned commercial, where transient public lodgings in contributing historical structures would be permitted subject to fire protection standards including fire sprinklers or systems “equivalent” or “superior” in effect. According to knowledgeable sources, it is a mystery why Mr. Robins would apply for a change from his state-licensed transient usage to transient hotel usage since the current zoning permits transient apartments, or why his local application for transient apartment usage was denied because the engineer needed documents appertaining to any previous certificate of use and occupancy, and there was none. Although the case is before the city magistrate, an arm of the city administration, officials have to the best of my knowledge have not pursued the collection of the city’s share of the resort tax, which would be 3% of revenues from the Suites over several years, nor have they checked to see if the balance of 10% tax on revenues were paid to county and state, and if the revenue was reported in federal income tax returns. Neither has the building department yet responded to repeated calls for inspection of what appears to be unpermitted construction, which, if in fact not permitted, would call for the closure of the facility, applications for permits, and a double the permit fee fine.]


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During my cursory investigation of the usage, I noticed that advertisements for the apartment hotel portrayed new construction within the apartments. I did not see any permits for that construction, so I repeatedly contacted your building official, Mariano Fernandez so that he could make sure that permits were obtained and double fees assessed if there were not permits, and to ensure that the premises were safe for habitation since they are currently occupied by tourists. Mr. Fernandez did not respond to my request, nor did he or several officials whom I copied take any action to the best of my knowledge.

One of the conditions set by Sec. 142-1111 for the operation of short-term rental facilities is that they must comply with the Florida Building Code, Florida Fire Prevention Code and with all other applicable life safety standards. But the building official and fire marshal have discretion to set policy in that regard; past history has taught us that such discretion, which was intentional provided by the commission, provides considerable opportunity for unmitigated corruption.

Since it appears impossible for Mr. Robins to comply with the provisions for transient apartment usage, he has on 1 December 2014 applied for a change of use from apartment to hotel. The attached file includes a copy of official notes incidental to that application (B1501177).

You will notice, if you have not already dismissed this inquiry out of hand, that fire sprinklers are apparently absent in some locations. Also attached are two fire inspection reports dated August and September 2013 that do not report any missing fire sprinklers. If they were and are missing, the violations should be cited.

I understand that that process, as well as unpermitted construction, may require closure of the apartment hotel to ensure public safety until the appropriate remedies are made. I recall that that was done at the Sadigo Courtyard Apartment Hotel. The owner, who was arrested there after his guests were tossed out with their belongings, claimed he was being retaliated against for complaining about official corruption and maladministration, and sued the city under a section of the Ku Klux Klan Act of 1871. The federal judge dismissed the case on a technicality granting the city immunity on the denial that the fire marshal had policymaking discretion.

I do not wish to make inappropriate inductions of unethical conduct on the part of several high level city officials from the superficial facts of my preliminary investigation in this matter. However, given the facts collected in this matter in addition to my examination of official actions in regards to last year’s Black Week event at Mr. Robins’ 743 Washington Avenue nightclub, and in respect to the unpermitted special event fiasco on Espanola Way this last New Year’s Eve, anyone with common sense would


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reasonably suspect that several officials have abused their offices to grant special favors to Mr. Robins.

Not that I have any axe to grind with Mr. Robins. He is the sort of man who employed me for many years, one of whom I still admire to this very day. It is the administration that I am unsatisfied with at this juncture despite the currently resounding applause of the overwhelming majority.

You will probably summarily dismiss my concerns if you respond at all to the issues I have raised herein including the ethical issue. Still, there is some chance for improvement no matter how blind an institution may be, therefore I remain,

Sincerely Yours,


Cc:

Jimmy Morales, City Manager Mariano Fernandez, Building Official Hernan Cardeno, Director Code Compliance Department Joe Centorino, Director, Miami-Dade County Ethics Commission

MIAMIBEACHBuilding Department1700 Convention Center Drive, 2nd FloorMiami Beach, FL 33139Tel: (305) 673-7610Fax: (305) 673-7857

Bldg Small Work PermitRequired and Optional Approvals

Printed on: 01-06-2015Activity Number:

Site Address:

B1501177

443 ESPANOLA WY MBCH

II

==================================================================================================

LIST OF APPROVALS

Item: 00072 Permit Intake12/01/2014 LC Action: CO Expired permit

Item: 00027 Extension ApprovedItem: 00024 Notice of CommencementItem: 00001 Zoning Section

12/15/2014 DB Action: DN Zoning: CD-2. Structure is within Espanola Way Historic DistrictComments:1. Per Sec. 142-1105, this structure is considered a suite hotel, and must comply with the following

conditions:

(3)The building shall be maintained and operated as a hotel.II (5)The building shall contain a registration desk and a lobby.II (6) The building shall have central air conditioning or flush-mounted wall units; however no air

conditioningequipment may face a street, bay or ocean.2. There is no concurrency or parking impact fees for this project.3. Is the handrail extension on the exterior of the property? If so, please provide color photographs

of therailings. Proposed railings must return to the ground and the must have a flat profile.4. Are there any other exterior work being done under this permit?

Comments by:Daniella Bonilla, [email protected]

PLEASE NOTE: These comments are provided as a preliminary review of the proposed work, andmay be subject to

additions andlor deletions pending further review. Should you have any questions or would like todiscuss these

comments in greater detail, please do not hesitate to contact me.

[BAPPRV14]

Administrator

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MIAMIBEp,CHBuilding Department1700 Convention Center Drive, 2nd FloorMiami Beach, FL 33139Tel: (305) 673-7610Fax: (305) 673-7857

Bldg Small Work PermitRequired and Optional Approvals

Printed on: 01-06-2015Activity Number:

Site Address:

B1501177

443 ESPANOLA WY MBCH

==================================================================================================ENCLOSED TRASH ROOM IS IN COMPLIANCE WITH CITY OF MIAMI BEACH ORDINANCES.

Item: 00006 Fire Section12/03/2014firenewr Action:CO B1501177:General:1. Wall legend refers to detail on A-1. No detail exists on this sheet.2. Provide site plan with adjacent buildings, alleys etc.3. Provide scope of work on the drawings.4. Provide additional building information: building height, construction type.5. Provide categories of rehabilitation per NFPA 101, chapter 436. Fire alarm and fire sprinklers must meet FFPC requirements for NEW HOTEL.7. Drawing design signed and sealed by a licensed professional shall be provided to verify

compliance with FFPCfor New Hotel.LS drawings:1. Missing fire sprinkler coverage for areas marked with yellow dots (Job Copy)2. Fire Alarm notification devices missing in areas marked with blue dots (Job Copy)3. Missing sprinkler coverage in the AC/WH closets throughout.4. Missing emergency lighting for lobby and along stairs (top, bottom and landings).5. Missing emergency lighting at top and bottom of exit stairs.

Item: 00080 M. D. W. A. S. DItem: 00023 Accessibility SectionItem: 00010 D.E.R.M. (Env Res Man)

12/02/2014 GS Action: INFO 3RD SET FOR DERM SUBMITTED.12/02/2014 GS Action: INFO Tracking No. 021500230712/02/2014 GS Action: INFO MDC UPFRONT FEES SHALL BE PAID AT:http://www.miamidade.gov/permits/make-payments.asp

12/04/2014 sm Action: INFO Tracking #0215002307 uploaded to MDC.12/10/2014 GS Action: INFO MDC UPFRONT FEES SHALL BE PAID AT:http://www.miamidade.gov/permits/make-payments.asp

Item: 00021 Dade County Impact fees?Item: 00065 Elevator

[BAPPRV14]

Administrator

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Info Inspections Status Payment History

Case / Application / Permit Number B1501177 Type / Classification BSBUILD

ALTRMD: Alteration/Remodeling BLDG: Building

Address 443 ESPANOLA WY Miami Beach, FL 33139

Parcel Number

32340150010

File Date 2014-12-01 Status APPLIED

Status Date N/A Valuation $1.00

Fees $132.08 Payments $125.60

Balance

$6.48 Online Payment There is an outstanding balance. You can make online payment here by clicking on the link above. This agency accepts:

Description change of use from residential (R2) (apartments) to residential (R1) Hotel.

View Map(Click the "Back" button on the browser to return to Permit Manager.) Contacts

Name R G FIFER INC Business N/A

Relationship CONTRACTOR Phone N/A

Name ENGINEER NOT APPLICABLE Business N/A

Relationship ENGINEER Phone N/A

Name ESPANOLA WAY ASSOCIATES LTD Business N/A

Relationship OWNER Phone N/A

Name JUAN C. DAVID R.A. Business N/A

Relationship ARCHITECT Phone N/A

Name R G FIFER INC Business N/A

Relationship APPLICANT Phone N/A

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(R) Manager of Picolla from 440 Espanola across the street hustling Espanola Way Suites guests in front of 443

Espanola in violation of city’s solicitation ordinance

MISCELLANEOUS CORRESPONDENCE

Dec. 14, 2014

From: David Arthur Walters To: Hernan Cardeno, Esq., FBI Liaison

From: "David Arthur Walters" [email protected] Date: Dec 14, 2014 1:34 PM Subject: 443 Espanola Way

Mr. Cardeno:

I suspect from a recently posted public record that an attempt is being made to cover up misconduct regarding apparently unpermitted construction at 443 Espanola Way Suites that I alerted the Building Official to recently. There is a possibility that city officials may be involved. Since Agent Fowler is no longer investigating corruption here, please advise to whom I may send along information at the FBI. An email address for transmittal of records will be appreciated. Thank you, David Arthur Walters [NO RESPONSE]

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Dec. 8, 2014

From: Michael Chaves, Miami‐Dade Appraiser To: David Arthur Walters

Mr. Walters

This will confirm our telephone conversation today RE: 405 Espanola Way. Items discussed were the subject property’s certificate of use, business tax receipts, stated construction costs on building permits and assessment discrepancies.

I’ll request our Office conduct a unit count field inspection. as we discussed, the concern is access may be restricted. It’s also possible the buildings use is in transition with on‐going construction.

In any event, I’ll contact you once our field inspection results are completed.

Sincerely,

Michael Chaves CAE, CFE Commercial Division Director

TELECON NOTE:

The county appraiser’s office called me and said the building will be looked into if access can be gained, and that the owner has a reduction of taxes case pending before the adjustment board, and that eventually all this shall have good results because it is coming to the attention of various public officials

Nov. 8, 2014

From: David Arthur Walters To: Hernan Cardeno, Esq., FBI Liaison, Code Compliance Director

Mr. Cardeno:

As you know very well, Espanola Way Suites, owned by a Scott Robbins entity at 443 Espanola Way, has allegedly been operating with impunity as a transient apartment tourist lodging for about three years now without a Certificate of Use or Business Tax receipt, at least according to a search of the city's records. As you can see from the online advertisements, for example at Trip Advisor and other websites, the establishment is highly rated by visitors, potential witnesses to the alleged violations.

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You will also notice from the photographs that the ancient premises appear to be newly renovated, so your investigation should include research for the necessary building permits.

Yes, permits have been pulled for renovations underway at the Washington Avenue end of the parcel, falling under the address of 405 Espanola Way. That is not relevant to the operation at 443 Espanola Way, the usage of which can be plainly seen by public and private investigators ‐ residents coming and going via the elevator lobby.

I previously recommended that, since you are a sworn police officer, that you go undercover, make a reservation, and check in to get the evidence you need for prosecuting what appears to be a flagrant violation of law, given the records that have been made available thus far. I recalled to you by previous email a similarity to the fiasco at the Sadigo some time back, in which tourists were swiftly tossed onto the street and the owner arrested.

A lot of essential time has passed since this issue was raised; time to alert the persons responsible for the alleged violations because this matter is already on the grapevine.

Of course my objective is not to get in front of the baggage train and try to stop it, but to report on it after it arrives, something I am looking forward to.

Sincerely,


ATTACHED INTERNET REVIEWS

Espanola Way Suites 23 reviews "Home Away from Home"

Reviewed June 24, 2014: My stay here was awesome! The place is clean, location great, and 3‐5minutes away from beach. The pictures on website are exactly what you see in person. My whole...

“Amazing XMAS and New Year (Dec 2013 ‐ Jan 2014)”

Reviewed January 6, 2014: We've stayed 10 days here and everything was perfect! We've been in Suite 301 facing Espanola Way (which is “pedestrians only” after 6 pm). The suite was spotless. We've paid 30 $ extra and we've got one cleaning day ‐ new sheets and towels and an all‐over cleaning. The kitchenette has a stove/oven, toaster, coffee maker, big fridge, spoons, forks, plates, etc. The rooms are exactly like in the pictures from their website. We've used only the coffee maker and the fridge, since there are so many different places to eat outside (we didn't eat twice in the same restaurant). The bathroom is large, and has nice storage space. Entering the building and suite was very easy: you just have to use the code given to you. There is an elevator. The noise mentioned in many other reviews is real :‐) so if you like to go to bed

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at 11 pm maybe this suite is not for you – ask for a suite facing Drexel Street or the back of the building. But this was not what bothered us the most. The sidewalk cleaning at 8 am with heavy machinery each morning was really not a pleasant wakeup – so you go to sleep at 1‐2 am and wake up at 8 am. But we’ve slept on the beach :‐) :‐)� South Beach is amazing and Espanola Way with all nice restaurants is really a nice spot ! I will go back tomorrow if possible! Thank you, Espanola Way Suite for making our stay a pleasant one! We hope that next year we will be back. Stayed December 2013, traveled as a couple.

[NO RESPONSE]

Nov. 14, 2014

Hernan Cardeno, Esq. Director Code Compliance Department, FBI Liaison

BTW my guess is the paperwork is in process to.meet the 10 day deadline and that no consequences will ensue for at least 2 years of illegal activity.

Nov. 14, 2014

TO: [email protected]

Notice of Violation has been issued for Operating a hotel (Espanola way suites) at 443 Espanola Way without a business tax receipt or certificate of use. There is no active BTR/CU for any residential use at this location (apartment rooms, hotel, etc.). CE15001651

Hernan D. Cardeno, Esq. Director

From: "Cardeno, Hernan" [email protected] Date: Nov 14, 2014 1:09 PM Subject: RE: 443 Espanola Way Suites To: "David Arthur Walters" <[email protected]>

David,

Process was hand-delivered to SRC office on November 13, 2014.

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Hernan D. Cardeno, Esq. Director

Nov. 9, 2014 Hernan Cardeno, Esq. Director Code Compliance Department, FBI Liaison George Castell, Administrator, Code Compliance Department Jimmy Morales, Esq., City Manager Raul Aguila, Esq. City Attorney

I spoke with these two tourists in photo this afternoon, one from Brasil, one from Uruguay. They had checked into Espanola Way Suites at 443 Espanola, on the recommendation of a friend who had stayed there, and were solicited by a waiter (1) in front of its lobby door. I saved them from complimentary champagne and took them to a better restaurant to see the menu and get out of the rain. How can this transient apartment business be conducted for three years without a CU and BTR? Finance said there is no license. Did the city or the Scott Robins company find one? Or is our due process past due process? Thanks.

(1) The “waiter” happened to be the new manager from Italy, of the Picolla restaurant across the street

Sep 27, 2014

To Hernan Cardeno, Esq. Director FBI Liaison Code Compliance Department CITY OF MIAMI BEACH

Mr. Cardeno,

Thank you for following up on this. I find it incredible that a prominent real estate professional and member of the power elite that seized the city could be so remiss if this information is valid. I trust that you will follow up on it. There must be some mistake.

I have other concerns, for instance with the failure of high officials in the City of Miami and City of Miami Beach Building Departments, Miami Beach City Manager's and City Attorney's Office , CMB Commission, and County Ethics Commission Staff to follow up on information provided at risk to livelihood and life, and to collect substantial permit fees indicative a pattern involving the loss of millions of dollars in public funds, excused by the specious doctrine of sovereign discretion that supposedly excuses misprision.

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That matter I referred to local federal agents, and soon to Washington, and your federal colleagues can fill you in on the status of any investigation, but I have a budding hypothesis about the "new" regime that you may find interesting from your independent perspective as a police officer.

As you know, I am not the only person that has serious doubts about local government officials. Since public investigators are sorely underfunded, I advise well heeled patriots do hire private detectives to obtain evidence.

Have a fantastic weekend,

David

Sept. 26, 2014

To Hernan Cardeno, Esq. Director FBI Liaison Code Compliance Department CITY OF MIAMI BEACH

Mr. Cardeno,

Would you independently verify my finding that this establishment controlled by Scott Robins has operated without a CU and BTR for three years? If that is true, it is difficult to believe that the absence of approvals has been a mere oversight. Jose Smith advised me to report suspicions to the FBI. Since you liaison with the FBI, if you find I am correct, then would you please refer the matter to that agency as the information may be helpful in other current investigations.

Thanks!

David

From: "David Arthur Walters" [email protected] Date: Sep 26, 2014 1:23 PM Subject: Here is DENIED CU for Espanola Way Suites To: "Hernan Cardeno" [email protected] |Cc: "Jimmy Morales" <[email protected]>

Mr. Cardeno, If the operator does not have a CU and BTR all this time, it would only be fair for the city manager to order it closed immediately. David Arthur Walters

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From: "David Arthur Walters" <[email protected]> Date: Sep 26, 2014 11:35 AM Subject: Here is DENIED CU for EspanolaWaySuites To: "Cardeno, Hernan" <[email protected]>

Hernan, As per our conversation, I scoured the city record but could not find a city approval. The state site has it approved as transient apartment operation. Please advise. David

Case / Application / Permit Number BCU1200221

Type / Classification BCU

PRIMARY: Primary Certificate of Use

BLDG: Building

Address

405 ESPANOLA WY Miami Beach, FL 33139

Parcel Number 32340150010

File Date 2011-12-22

Status DENIED

Status Date N/A

Valuation $0.00

Fees $0.00

Payments $0.00

Balance $0.00

Description

TRANSIENT APARTMENT BUILDING @ 443 ESPANOLAWAY; 12 UNITS

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2 December 2014

Michael J. Postell Sr. Property Appraiser Supervisor MIAMI‐DADE COUNTY

405 Espanola Way Folio 02‐3234‐015‐0010 Espanola Villas 1st Addition

Dear Mr. Postell:

First of all, thank you for referring my doubts about the role played by constructions costs in appraisals of the Sunset Harbour towers to condominium appraiser Ciro Capote, who affirmed that costs are looked at but are not a factor in condominium appraisals because fair market value based on sales data is virtually god of that realm. However, he promised to take a look at several Sunset Harbour issues that have been raised including that one during the impending cycle.

I have discovered what may be a serious anomaly in the county’s evaluation of one of four parcels at the historic Spanish Village, now known as Espanola Way Village, built a year before the 1926 Great Hurricane. Construction costs of the irreproducible structures do appear to have a bearing in the appraisals of those four parcels, in addition to the fair market value of the land. They are all income properties, so I do not know what bearing the income approach may have had in the appraisals.

Attached you will find an Excel spreadsheet summarizing the data I took from the county appraiser’s web pages.

As you can see, the value of the building with which I am concerned, related to the parcel addressed as 405 Espanola Way, is a mere $6.40 per square foot, as compared to a value running from $37.48 to $89.23 per square foot on the other three parcels. This results in a total market value of $123.39 per square foot on the 405 Espanola Way parcel, in comparison to a total market value from $161.26 to $239.86 on the other three parcels.

Now the 405 Espanola Way and 1434 Washington Avenue parcels are identical in lot size and land value, and the structures are nearly twins, but 405 Espanola has a building value of a mere $317,818 as compared with structures valued at $1,849,771 at 1434 Washington.

My concern is with where the appraiser got the building values. If construction costs on permits were a factor, then the appraiser should know that our building department has been scandalized by understated construction costs on permits, an allegedly customary practice that

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by some estimates has cost the city millions of dollars in permit fees, and has raised the question as to what extent if any real estate tax assessments would be impacted.

Mr. Capote, by the way, informed me that when the county appraiser looks at construction costs on permits, the costs are considered to be “estimates.” Allow me to explain why they may even be worse than estimates.

Our former city manager, Jorge Gonzalez, established a procedure to curb criminal and moral corruption in the building industry by requiring the submission of invoices and sworn affidavits as to value on completion of work.

However, that system was abandoned, according to word I received on 18 June 2012 from former building official Stephen Scott, Esq., in favor of assessing permit fees on a square footage basis rather than on construction costs. He declared that construction value statements are still required only when costs exceed 10% of the permit fee, so that the owner can get a rebate of the excess, a process that I am now informed ceased some time ago.

A private inspector told me that Mr. Scott was mistaken, so I followed up with operations manager Tony Gonzalez, who stated on 5 February 2013 that the permit fee system was changed on 1 February 2010 from a valuation basis to square footage basis, yet values are still asked for on permit applications because a portion of the fees are supposed to go city sanitation, county code compliance, and FEMA for flood mitigation on a construction cost valuation basis.

I had discovered several instances of deliberate under‐evaluations by a general contractor who claimed that everybody does what he does, everybody knows it, and nobody cares, so I wondered why anyone would continue understating job values if fees were charged on a square footage basis. Of course understating values would cost sanitation, code compliance, and FEMA considerable amounts if the practice was widespread.

Wherefore I kept following up with the building department, where Mr. Scott had been demoted to assistance building official under Mariano Fernandez, the new building official brought in from the City of Miami by the new city manager Jimmy Morales, Esq., shortly after he was appointed on April Fool’s Day 2013 to curb corruption on the beach.

Using the Sunset Harbour job, which had a declared value of $400,000 that officials accepted although they had contractor invoices on hand for $1,000,000, an amount that the owner could have been questioned on before the work was completed, I was greeted with either a stone wall or prevarications until Mr. Morales finally referred me to his assistant, whom he identified as being in charge of the building department, Joe Jimenez, Esq.

“Yes, Mr. Jimenez confirmed 3 November 2013. “The cost of construction stated to the city determines the permit fee. However, there is a minimum construction cost per square foot,”. He correctly stated that undervaluation of construction costs would not have an effect on appraised values of condominiums.

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He failed, as every other official questioned had done, to provide me with a demonstration of the mathematical calculations applied in the Sunset Harbour instance and/or with a pro forma calculation of what they would have been at $1,000,000.

City clerk Rafael Granado, Esq., declined to refer my request on the basis that there was no such public record. Apparently the fee calculation formula is proprietary, owned by city officials and not by the citizens.

Mr. Jimenez did not deny that, at most, the shortfall in fees could have been as much as $70,418.25. He implied that no attempt would be made to collect whatever the shortfall might have been, because, he said, the building department is not a revenue department:

“It is important to note that the Building Department is not a revenue generating department. Permit fees are intended to cover the cost of operating the Department and should not provide a windfall to the City. Granted, there are years when the building boom provides the City with a surplus, which may only be used for the operation of the Department in future years when development slows.”

Mr. Morales has not responded to the exceptions I took to Mr. Jimenez’ finding, including my opinion that officials do not have the discretion to violate laws passed by legislatures, so he stands on that finding, Qui tacet consentire videtur.

Now the 405 Espanola Way parcel is not a condominium, and the buildings on it are historically unique even for South Beach. A hotel has been run for years upstairs on one end of the block without a certificate of use and business tax receipt, so I suppose that revenue would be included in the income approach. There is a suspicion that some construction has been conducted that has not been reported, and that could be a factor in the low appraised value.

Therefore with the above in mind as well as the information I attach to this communication, I pray that the county appraiser will explain the exceedingly low building value in the appraisal of 405 Espanola Way Folio 02‐3234‐015‐0010 Espanola Villas 1st Addition.

Very truly yours,


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ADDRESS Lot Sq. Ft Adjusted Land Building Features Market Land/SqFt Bldg/SqFt Mkt/SqFt516 Espanola Way 8,5 80 16, 274 2,35 9,500 6 09,976 21,061 2,990,537 275 37.48 183.76 1434 Washington 25,2 72 47, 809 5,81 2,560 1,8 49,771 47,111 7,709,442 230 38.69 161.26 1444 Drexel 8,5 80 16, 333 2,35 9,500 1,4 57,345 100,830 3,917,675 275 89.23 239.86 405 Espanola Way 25,2 72 49, 683 5,81 2,560 3 17,818 ‐ 6,130,378 230 6.40 123.39

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1 December 2014

Mariano Fernandez BUILDING OFFICIAL City of Miami Beach

Re: Renovations of Espanola Way Suites at 443 Espanola Way

Dear Sir:

I am attaching a Timeline on this matter for your convenience, along with photographs of the apparently refurbished apartments of Espanola Way Suites at 443 Espanola Way, previously known as the Grace Apartments, apparently owned and operated by Scott Robins’ interests.

The owner of the transient apartment hotel should have been served a long time ago with a Notice of Violation for operating the facility for several years without a certificate of use and business tax receipt, and has finally been served this month.

I respectfully suggest that you have a public inspector examine Espanola Way Suites at 443 Espanola Way for renovations that may have been made without a permit, providing your records coincide with my conclusion from my perusal of Permit Manager online, that there were no adequate permits pulled for extensive renovation of the apartment hotel aspect of the 1925 structure since it was taken over by Scott Robins’ interests in 1989.

As you know from previous correspondence, I expressed concern with whether or not the structures on the entire parcel, addressed as 405 Espanola Way at the east end of the block, had been recertified. I received a copy of the engineer’s report certifying that everything was good.

However, some information, including but not limited to code complaints and a statement made by Scott Robins to the press, indicates that all was not so good with the structures, therefore I suggest that an engineer directly employed by the government re‐examine the records and the structures to ascertain whether the private engineer’s report was true, and, if not, ascertain if the structures are presently safe.

Mind you that I have no axe to grind with Mr. Robins, whose integrity as a general contractor and real estate developer is reportedly unimpeachable, and whose character is even more highly regarded than that of our esteemed mayor, his friend and partner, Honorable Philip

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Levine. My interest is in good government. There may be nothing bad about it in this instance if all the facts are known. If that is the case, I beg your pardon in advance for my ignorance, and look forward to your findings.

Sincerely,


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AVERIGUAR ESPAÑOLA WAY SUITES

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1926 Advertisement

TIMELINE

ESPANOLA WAY SUITES Formerly GRACE APARTMENTS 12 Transient Apartment Units 443 Espanola Way Parcel 32340150010 (Parcel Address 405 Espanola Way)

1989‐06‐26 (405) Deed entire parcel Morris/Lewis to Espanola Way Associates Ltd

1990‐05‐18 (443) Operating without license CLOSED CC890928

1990‐06‐25 (443) License violation $700 CLOSED L9001130

1996‐04‐11 (443) License violation “LICV” unexplained CLOSED CL950750

1998‐06‐25 (443) Public relations office CO approved BCO98166

1990‐06‐29 (443) Flooding, electrical violations unexplained CLOSED CC892686

1992‐07‐08 (443) Unsanitary, ACLF 2nd floor violations unexplained CLOSED CC923574

1998‐11‐18 (443) $75 charge unexplained “RESERVED” SM Case JB990249

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AVERIGUAR ESPAÑOLA WAY SUITES 1999‐03‐29 (443) Grace Hotel “BVO OTHER” unexplained CLOSED BV981146

1999‐05‐18 (443) Informer Group office Ste 205 unexplained CLOSED BV990062

1999‐06‐17 (443) SM dismissed unexplained Grace Hotel “OTH” violation JB980704

2002‐11‐08 (443) Application Pending CO Office Ste 203 BCO 03033

2005‐01‐18 (443) Elevator violations file unexplained CLOSED no fine BVO4000913

2005‐01‐20 (443) Elevator violations unexplained DISMISSED no fines JBO4000495

2007‐01‐01 (443) dba Grace Hotel Tangible Property Assessed $1,053

2008‐01‐01 (443) dba Grace Hotel Tangible Property Assessed $ 838

2009‐01‐01 (443) dba Grace Hotel Tangible Property Assessed $670

2010‐01‐01 (443) Tangible Property Assessed $586


2011‐07‐21 (405) entire parcel with 24 living units engineer Recertifies no bad marks BR110122

2011‐11‐15 (443) State Issuance Transient Apartment License TAP2329515

2011‐12‐22 (443) City Application for CU Denied BCU1200221 – engineering information needed from previous CU not available because there was no previous CU for this use, owner contacted next year but did not provide information.


2012‐02‐21 (405) Violation Failure to get Recertification BV12000310

2013‐01‐01 (443) Tangible Property Taxable $ 153,772

2013‐03‐01 (405‐419B) Adjustment Board approves increase from 36 units to 44. This does not include 443, which has 12 units. County appraiser has only 24 units for entire parcel now, and the engineer who recertified the whole building appended that county record.

2013‐04‐18 (405) Press Report: Tenants vacated from areas in the eastern portion of partial because, Scott Robins said, “"The building is 85 years old and in desperate need of repairs.”

2013‐05‐13 (443) State Inspection TAP2329513 passed except license not displayed in lobby

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AVERIGUAR ESPAÑOLA WAY SUITES 2014‐02‐18 (443) State Inspection Failed – no balcony inspection certificate available ‐ follow up required – (why was this not noted the previous year?)

2014‐09‐26 (443) Finance Department confirms there is no CU or BTR for Espanola Way Suites

2014‐09‐26 (443) Code Compliance Director and City Manager notified there is no CU or BTR, wherefore Espanola Way Suites should be closed immediately as was the practice elsewhere. No response.

2014‐10‐02 (443) Building Official notified of lack of CU and potential safety issues, and absence of 40‐year Recertification record in Permit Manager system. No response to CU concern. Recertification record (for 405 or 24 units) obtained.

2014‐11‐12 (443) Notice of Violation finally (!) issued no CU no BTR CE1500165

ADVERTISEMENTS FOR RENOVATED APARTMENT HOTEL SUITES BELOW

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Press reports indicate that the whole building is in bad state of disrepair, as admitted to by the owner when evicting tenants, and that the upstairs portion of the NE corner has been closed for renovation into an 8 unit hotel. Espanola Way Suites, formerly the Grace Apartments, appears to have not had a certificate of use or business tax license for years despite the fact it has been rented out. If that is true, sales tax and income tax returns should be checked by the state Revenue department and the IRS. The engineer’s glowing building recertification report should be examined closely. The county appraiser should be asked to give personal attention to see that the parcel is appropriately appraised. An independent inspection should be called for to ascertain whether the building is really safe. The owner, a local general contractor and real estate tsar, is a public figure acclaimed for his success, generosity, and political influence.

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STATE LICENSING DBPR ONLINE RECORD ESPANOLA WAY ASSOCIATES LTD

ESPANOLA WAY SUITES 443 Espanola Way, Miami Beach

Apartment ESPANOLA WAY SUITES DBA TAP2329515 Transient Apt

Current, Active 10/01/2015

License Location Address*:

443 ESPANOLA WAY MIAMI BEACH, FL 33139

Main Address*: 230 5 ST MIAMI BEACH, FL 33139

Mailing Address*: 230 5 ST MIAMI BEACH, FL 33139

Licensee Details

Licensee Information

Name: ESPANOLA WAY ASSOCIATES LTD (Primary

Name) ESPANOLA WAY SUITES (DBA Name)

Main Address: 230 5 ST

MIAMI BEACH Florida 33139 County: DADE

License Mailing: 230 5 ST

MIAMI BEACH FL 33139 County: DADE

LicenseLocation: 443 ESPANOLA WAY

MIAMI BEACH FL 33139 County: DADE

License Information

License Type: Apartment Rank: Transient Apt License Number: TAP2329515

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Status: Current,Active Licensure Date: 11/15/2011 Expires: 10/01/2015

Special Qualifications

Qualification Effective

Dade OCT 11/15/2011 2-25 TRAN 11/15/2011

Licensee

Name: ESPANOLA WAY SUITES

License Number: TAP2329515

Rank: Transient Apt License Expiration Date:

10/01/2015

Primary Status:

Current Secondary Status:

Active

Location Address:


Inspection Information (click the Inspection Date for details)

Inspection Detail Inspection Type Inspection Result

02/18/2014 Routine ‐ Lodging Follow-up Inspection Required

05/13/2013 Routine ‐ Lodging Met Inspection Standards

Licensee



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10/01/2015

Primary Status:


Active

Location Address:


Inspection Information

Inspection Type

Inspection Date

Result

High Priority Violatio

ns

Intermediate

Violations

Basic Violatio

ns

Routine - Lodging

05/13/2013

Met Inspection Standards

During This Visit More information about

inspections.

0 0 1

Violations:

A summary of the violations found during the inspection are listed below. The department cites violations of Florida's sanitation and safety laws, which are based on the standards of U.S. Food and Drug Administration's Food Code. High Priority violations are those which could contribute directly to a foodborne illness or injury and include items such as cooking, reheating, cooling and hand-washing. Intermediate violations are those which, if not addressed, could lead to risk factors that contribute to foodborne illness or injury. These violations include personnel training, documentation or record keeping and labeling. Basic violations are those which are considered best practices to implement. While most establishments correct all violations in a timely manner (often during the inspection), the division's procedures are designed to compel compliance with all violations through follow-up visits,

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administration action or closure when necessary.

Violation Observation

38‐03‐4 Basic - Current license from the Division of Hotels and Restaurants not displayed in the office or lobby.




10/01/2015

Primary Status:


Active

Location Address:


Inspection Information

Inspectio

n Type

Inspectio

n Date

Result

High Priority

Violations

Intermediate Violati

ons

Basic Violations

Routine - Lodgi

ng

02/18/2014

Follow-up Inspection Required Violations require further review, but are not an immediate threat to the public.

More information about inspections.

1 0 0

Violations:

A summary of the violations found during the inspection are listed below. The department cites violations of Florida's sanitation and safety laws, which are based on the standards of U.S. Food and Drug Administration's Food

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Code. High Priority violations are those which could contribute directly to a foodborne illness or injury and include items such as cooking, reheating, cooling and hand-washing. Intermediate violations are those which, if not addressed, could lead to risk factors that contribute to foodborne illness or injury. These violations include personnel training, documentation or record keeping and labeling. Basic violations are those which are considered best practices to implement. While most establishments correct all violations in a timely manner (often during the inspection), the division's procedures are designed to compel compliance with all violations through follow-up visits, administration action or closure when necessary.

Violation Observation

12‐10‐4 High Priority - Certificate of Balcony Inspection stamped by the Division's district office not available.

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the espanola way of doing things

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