Friday, September 21, 2012

Some City Residents Accuse Key West Of Giving 'Bailout' To Greedy Bankster In Code Compliance Dispute

In Key West, Florida, the Florida Keys Keynoter reports:

  • After rejecting a $20,000 code compliance settlement from the Bank of New York Mellon, the Key West City Commission on Wednesday agreed to take $30,000.

    Mellon bank via foreclosure bought the house at 923 Eaton Street from the mortgage holder, JP Morgan Chase in 2009. The property fell into disrepair, eventually becoming the subject of action from the city's Code Compliance Department, leading to a $186,750 accrued fine.

    Although commissioners on Aug. 21 voted 5-2 to reject the $20,000 offer, City Attorney Shawn Smith said this week he had done more research on the property and found the city's lien on the property could be invalidated.

    "The current offer of $30,000 is something the city should accept given the fact there are questions to the validity of the lien," Smith said. "$30,000 certainly is far in excess of the actual cost the city has in this particular issue."

    Smith also pointed out that the $30,000 figure equates to the fines related to the 120 days that Mellon owned the house and it was not in compliance with municipal code.

    Residents opposing continued to frame their objection in terms of little Key West giving a bailout to a greedy financial giant.

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