By Joseph Wiedeman, Interning Correspondent for The Apopka Voice
In Summary:
A proposed $30,000 settlement for code enforcement violations totaling $5.6 million at 718 S. Park Ave. drew questions from Apopka commissioners during Wednesday’s meeting. Staff said the amount exceeded the minimum required under a policy based on the lower of the property’s value or accumulated fines, while public comments focused on tenants’ living conditions. Commissioners unanimously rejected the settlement following a motion by Commissioner Yesenia Baron calling for a policy review.
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The Apopka City Commission unanimously rejected a proposed $30,000 settlement involving nearly eight years of code enforcement violations totaling $5.6 million at a South Park Avenue rental property, following questions about the city’s settlement policy and the conditions tenants had endured.
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Vice Mayor Diane Velazquez raised concerns about the first consent agenda item during Wednesday’s meeting, questioning how a business with years of accumulated fines could settle its case for $30,000.
The violations involved minimum property standards under the Apopka municipal code. Smart Services LLC owns the property at 718 S. Park Ave., where fines began accruing on August 17, 2018.
According to its Facebook page, Smart Services is a debris-removal and real estate brokerage service based in Apopka. The property is identified in the draft’s cited Orange County Property Appraiser records as the company’s only property in the county.
The fines accrued at $250 a day through August 19, according to the proposal described during the meeting. The proposed settlement would have required a $30,000 payment to the city in exchange for releasing the code enforcement liens associated with the case.
“I got an email from residents today that this did not satisfy,” Velazquez said. “How did they even get a settlement of $30,000?”
Apopka Code Enforcement representatives Alexia DeCaul and John Hansen responded, explaining that the city’s settlement policy sets a minimum of 5% of either the property’s value or the accumulated fines, whichever is lower. Staff used the property’s $437,780 valuation to calculate the settlement threshold.
“We can change that policy if you'd like,” Mayor Nick Nesta said. “Previous administrations were using code enforcement fines to help balance the budget, and I just felt that was not the proper approach.”
Velazquez said she wanted to ensure properties could not remain out of compliance for years without significant consequences. Commissioner Nadia Anderson said the issue ultimately came down to code enforcement.
“We can’t force anyone into compliance with their own property,” DeCaul said. “This is something we started in 2023 when we brought it into the foreclosure process. I can't speak on behalf of the owner as to why it took them so long.
She also explained that a property must be up to code before it can negotiate a settlement.
In settling violations, we can’t make a settlement until the property comes into compliance,” DeCaul said. “We will not go into a settlement agreement if it is not in compliance. So the properties at this point are in compliance. There’s no violations at the property at this moment. As far as them updating, I have no idea of that.”
Tenants’ conditions draw criticism
During public comment, Dr. Phyllis Olmstead urged commissioners to consider the property’s use as a rental business and the conditions residents had experienced.
“This is a commercial business of renting out properties,” Olmstead said. “It may be zoned residential but it is a money making business that is living off the backs of people that they are permitting to live squalor.”
Olmstead said the property had experienced roof leaks, inoperable doors and windows, and other problems for years. She argued that it should have faced the same enforcement expectations as rental properties in northern Apopka.
“I don’t think a single one of you would have wanted to live in that property,” Olmstead continued. “[The settlement] was negotiated on the wrong value; it was negotiated on a piece of paper or a computer instead of the emotions, feelings, and health of those people.”
Commissioner Yesenia Baron thanked Olmstead for her comments and said she had raised questions earlier because she was concerned for the tenants. She asked whether the city could provide any form of redress for residents who had rented the property. The commission also asked City Attorney Andrew Hand whether they retained the authority to reject the proposed settlement.
“The commission always has the option,” Hand said. “There’s a little bit more to it, but as a commission you do have an option and certain parties could look back at settling, but I have not reviewed the policy in advance of the meeting.”
Policy questions lead to rejection
Nesta urged commissioners to base their decision on the facts and avoid allowing emotion or bias to determine the outcome. Velazquez sought further clarification about rejecting the settlement, and Nesta said staff’s work and recommendations did not obligate commissioners to accept it.
“Keep that in mind,” Nesta said. “Just because staff has done certain amounts of work or attorneys have recommended, you never have to approve or deny anything. It’s up to you and the facts you have at that time.”
Commissioner Nadia Anderson emphasized the importance of applying the city’s existing policy consistently.
“I just strongly feel when there's a policy put in place, I think we should follow the policy,” Anderson said. “To go back on our policy because we have people online upset, I just don't think this is the time to do it.”
Baron ultimately moved to reject the settlement so the policy could be reviewed. The motion passed unanimously, leaving the proposed $30,000 agreement unapproved.
Key Points:
- The proposed settlement involved a rental property owned by Smart Services LLC at 718 S. Park Ave.
- Code enforcement fines began accruing on August 17, 2018, totaling $5.6 million.
- Staff said the $30,000 settlement exceeded the policy’s minimum based on the property’s $437,780 valuation.
- Dr. Phyllis Olmstead criticized the property’s past conditions and urged commissioners to consider the impact on tenants.
- Commissioners unanimously rejected the proposed settlement so they could review the policy.
PHOTOS BY ISABEL LECOMPTE (@ISASBEL.LECOMPTE), INTERNING PHOTOGRAPHER FOR THE APOPKA VOICE.
