Miami's Coconut Grove takes pride in its eclectic look and character, so it's no surprise that community opposition blossomed after a duplex developer was accused of breaking setback rules.

3384 Day Avenue Investments Inc. was building a duplex with interior work remaining when the city issued a hold on the building permit a year ago, citing setback violations. Setback regulations setting minimum distances between buildings allow room for fire safety, rain runoff and community aesthetics.

Miami city officials say there is a "sheer lack of physical distance between" buildings at 3374 and 3384 Day Ave. in violation of the Miami 21 zoning code and the Florida Building Code, prompting Building Department Deputy Director Maurice Pons to halt construction.

The developer sued the city and Pons last August in Miami-Dade Circuit Court to remove the permit hold.

The Miami City Commission out the settlement on its agenda Thursday amid rising opposition after more than 100 residents signed up to oppose the settlement and a resident asked to intervene in the suit.

Rather than decide the question, commissioners deferred a vote and decided to discuss the proposed settlement in a closed-door session.

Commission Vice Chair Ken Russell, whose district includes the Grove, said the city has grounds to fight the case and asked City Attorney Victoria Méndez to work on a city defense if commissioners decide to fight in court.

"I believe the judge will see this isn't about everyone splitting the baby and going home," Russell said. "This is about setting the proper example for developers about following the code."

Méndez pushed for settlement as a money loser, but Russell said the issue is about fighting a "deceptive" developer who acted in "bad faith" from the start.

Miami attorney and civic activist David Winker, who filed the motion to intervene on behalf of Melissa Meyer, said the settlement calls for window-dressing changes like blocking windows with concrete blocks.

State corporate records tie 3384 Day Avenue Investments to Miami commercial real estate investor and manager Midtown Capital Partners. Both are led by Alejandro Velez as Midtown CEO and the signatory on state filings for 3384 Day Avenue Investments.

Peterson, Baldor & Maranges partner Matthew Maranges, who represents the developer, declined comment.

Unity of Title

The city staff approved an April 5, 2016, release of a unity of title on both lots. The city concedes making a mistake, but meeting agenda documents blamed it on "misrepresentations contained in the application to release the unity of title."

Save Real Estate LLC, which sold the properties to 3384 Day Avenue Investments, obtained the unity of title release. Velez is tied to both companies and Midtown Capital in corporate filings.

3384 Day Investments bought 3374 Day Ave. for $540,000 in February 2018 and 3384 Day Ave. for $1.3 million in September 2016 from Save Real Estate, according to the Miami-Dade property records. Save Real Estate bought both in December 2015 for $1.2 million from West End II 3384 REO LLC with a duplex at 3384 Day Ave. 3374 Day Ave. vacant.

The unity of title release was needed to develop the second duplex and sell them individually.

Former Miami Zoning Director Devin Cejas met with Save Real Estate's attorney in 2015 and allowed for the unity of title release.

A permit halt was issued in October 2018, lifted the following month and imposed again the following July.

Pons told Save Real Estate's contractor the hold was placed "for the same — albeit unidentified and unarticulated — reason as the initial hold on October 2018," according to the complaint.

The existing duplex at 3384 Day Ave. ended up on the new property line without any setback. At 3374 Day Ave., window openings were directly abutting the interior lot line and rain running off the roof could hit the neighboring building.

Winker said the minimum building separation should be 10 feet, or 5 feet from each building to the property line. He said the current wall-to-wall distance is only about 4 feet.

Winker's letter to the city said Cejas "approved this project, despite its obvious and glaring noncompliance. And the developer would have gotten away with it if it wasn't for Melissa Meyer and other neighbors who saw the setback problem and didn't give up until we got the city to finally admit that there was a violation."

The city didn't immediately send a copy of the settlement document but in its agenda documents included an outline of the terms.

If approved, the developer is to submit jointly negotiated plans within a month to modify the duplex at 3384 Day Ave. The permit would be restored two days later, and the developer would have a year to reconfigure the building. If demolished, a replacement must be built to code.

Miami-Dade Circuit Judge Mavel Ruiz stayed the developer's lawsuit pending its pleadings in front of the Miami-Dade Board of Rules and Appeals. A status conference is scheduled for 10 a.m. Friday.