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Res 53-04RESOLUTION NO. 53-04 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF DELRAY BEACH, FLORIDA, AUTHORIZING THE CITY TO SELL TO BUYER CERTAIN ~ PROPERTY IN PALM BEACH COUNTY, FLORIDA, AS DESCRIBED HEREIN, HEREBY INCORPORATING AND ACCEPTING THE CONTRACT STATING THE TERMS AND CONDITIONS FOR THE SALE AND PURCHASE BETWEEN THE BUYER AND THE CITY OF DELRAY BEACH, FLORIDA. WHEREAS, the City of Delray Beach, Florida, wishes to sell certain property located on S.W. 9th Avenue; and WHEREAS, the Buyer hereinafter named de~zres to buy the property hereinafter described from the City of Delray Beach Florida; and WHEREAS, it is in the best interest of the City of Delray Beach, Florida, to sell said property. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF DELRAY BEACH, FLORIDA, AS FOLLOWS: Section 1. That the City Commission of the City of Delray Beach, Florida, as Seller, hereby agrees to sell to Universal Beach Service Coqa., as Buyer, for the purchase price of One Hundred Thousand Dollars ($100,000.00), said property being more particularly described as follows: See Exhibit "A" Segfion 2. That the costs of closing and transactions, tide insurance, document preparation and attorney's fees shall be borne by the Buyer. Section 3. That the terms and conditions contained in the contract for sale and purchase and addenda thereto between the City of Delray Beach, Florida, and the Buyer as hereinabove named are incorporated herein as Exhibit "B". Ok~"-V"X{ PASSED AND ADOtrl~D in regular session on the {D"' day of ,2004. I ATTEST: Acting City Clerk 2 ORD. NO. 53-04 EXHIBIT "A" Esquire Sub S 80 ft. of E 150 ft. of Lt. 12. The above being the real property described under Tax Certificate Number 15599 in the Tax Deed recorded in Official Record Book 13878, Page 1379, Public Records of PaLm Beach County, Florida. 3 ORD. NO. 53-04 [ITY OF DELRI1¥ BEI1[H CITY ATTORNEY'S OFFICE 200 NW Ist AVENUE · DELRAY BEACH, FLORIDA 33444 TELEPHONE 561/243-7090 · FACSIMILE 561/278-4755 DELRAY BEACH DATE: June 14, 2004 MEMORANDUM Wdter's Direct Line: 561/243-7091 TO: FROM: City Commission David Harden, C.j~.Manager Brian Shutt, Assistant City Attorney SUBJECT: Sale of Parcel The attached contracts are for the purchase and sale of the vacant parcel located at 15549 SW 9th Avenue. The parcel consists of approximately 12,000 square feet. The City received this parcel from Palm Beach County off of the lands available list. The City has been contacted by two potential purchasers for this parcel. An executed contract from each one is attached to this memo. It is my understanding that Harvest Moon Realty is the contract purchaser for the larger vacant parcel that is adjacent to this parcel and wishes to include this parcel in their site plan. It is also my understanding that Universal Beach Service Corp. wishes to relocate their business to this address from its current location which is just south of N.E. 4th Street and adjacent to the FEC railroad. Both potential purchasers shall be in attendance to answer any further questions. Our office requests that this item be placed on the July 6, 2004 City Commission agenda. Please call if you have any questions. Attachment cc: Chevelle Nubin, Acting City Clerk RESOLUTION NO. 53-04 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF DELRAY BEACH, FLORIDA, AUTHORIZING THE CITY TO SELL TO BUYER CERTAIN REAL PROPERTY IN PALM BEACH COUNTY, FLORIDA, AS DESCRIBED HEREIN, HEREBY INCORPORATING AND ACCEPTING THE CONTRACT STATING THE TERMS AND CONDITIONS FOR THE SALE AND PURCHASE BETWEEN THE BUYER AND THE CITY OF DELRAY BEACH, FLORIDA. WHEREAS, the City of Delray Beach, Florida, wishes to sell certain property located on S.W. 9th Avenue; and WHEREAS, the Buyer hereinafter named desires to buy the property hereinafter described fi.om the City of Delray Beach Florida; and WHEREAS, it is in the best interest of the City of Delray Beach, Florida, to sell said property. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF DELRAY BEACH, FLORIDA, AS FOLLOWS: Section 1. That the City Commission of the City of Delray Beach, Florida, as Seller, hereby agrees to sell to ., as Buyer, for the purchase price of _, said property being more particularly described as follows: See Exhibit "A" Section 2. That the costs of closing and transactions, title insurance, document preparation and attorney's fees shall be borne by the Buyer. Section 3. That the terms and conditions contained in the contract for sale and purchase and addenda thereto between the City of Delray Beach, Florida, and the Buyer as hereinabove named are incorporated herein as Exhibit "B". PASSED AND ADOPTED in regular session on the __ day of ., 2004. ATTEST: M A Y O R City Clerk EXHIBIT "A" Esquire Sub S 80 ft. of E 150 ft. of Lt. 12. The above being the real property described under Tax Certificate Number 15599 in the Tax Deed recorded in Official Record Book 13878, Page 1379, Public Records of Palm Beach County, Florida. 2 ORD. NO. COI~TR~CT FOR S~.T.~E ~ PURCHASE P~,RTIES~ The CITY OF DNLR~Y REACH, ("Seller"), of 100 NW 18t Avenue, Delray Beach, FL 33444 (Phone: 561-243-7000), and UNIVERSAL BEACH SERVICE CORP. a Florida corporation, ("Buyer"), of 107 NW 9tn Street, Delray Beach, FL 33444 (Phone:561- 276-8968) hereby agree that the Seller shall sell and Buyer shall buy the following described Real Property and Personal Property (collectively "Property") upon the following terms and conditions, which INCLUDE the Standards for Real Estate Transactions ("Standard(s)") on the reverse side hereof or attached hereto and riders and any addenda to this Contract for Sale and Purchase ("Contract"). DESCRIPTIONs (a)Legal description of the Real Property located in Palm Beach County, Florida: Esquire Sub S 80 ft of B 150 ft. of Lt 12. The above being the real property described under Tax Certificate Number 15599 in the Tax Deed recorded in Official Record Book 13878, Page 1379, Public Records of Palm Beach County, Florida (b) Street address, city, zip, of the Property is: 15549 SW 9th Avenue, Delray Beach, FL 33444 (c) Personal Property: None II. PUNCHASE PRICEs ................................... $74,000.00 PAI'MENT~ (a) Deposit(s) to be held in escrow by Robert W. Federspiel Trust Account in the amount of (b) Balance to close (U.S. cash, LOCALLY DRAWN certified or cashier's check), subject to adjustments or prorations $ 1,000.00 $ 73,000.00 III. TI~ FOR ACCEPTANCE; EFFECTIVE DATE; FACSIMILE~ If this offer is not executed by and delivered to all parties OR FACT OF EXECUTION communicated in writing between the parties, the deposit(s) will, at Buyer's option, be returned and this offer withdrawn. The date of Contract ("Effective Date") will be the date when the .last one of the Buyer and the Seller has signed this offer. A facsimile copy of this Contract and any signatures thereon shall be considered for all purposes as originals. IV. TITLE EViD~CE~ Prior to closing: nSeller shall, at Seller's expense, deliver to Buyer or Buyer's attorney; OR IBuyer shall at Buyer's expense obtain (CHECK ONLY ONE}: Dabstract of title or Ititle insurance commitment (with legible copies of instruments listed as exceptions attached thereto) and, after closing, an owner's policy of title insurance. V. CLOSIN~ DATEr This transaction shall be closed and the deed and other closing papers delivered on September 15, 2004, unless modified by other provisions of Contract. VI. RESTRICTIONS; EASemENTS; LIMITATIONS~ Buyer shall take title subject to: comprehensive land use plans, zoning, restrictions, prohibitions and other requirements imposed by governmental authority; restrictions and matters appearing on the plat or otherwise common to the subdivision; public utility easements of record (easements are to be located contiguous to Real Property lines and not more than 10 feet in width as to the rear or front lines and 7~ feet in width as to the side lines, unless otherwise stated herein); taxes for Page I of 8 year of closing and subsequent years; assumed mortgages and purchase money mortgages, if.any (if additional items, see addendum); provided that there exists at closing no violation of the foregoing and none prevent use of the Property for industrial purposes. VII. OCC~PANCY~ Seller warrants there are no parties in occupancy other than Seller; but if Property is intended to be rented or occupied beyond closing, the fact and terms thereof and the tenant(s) or occupants shall be disclosed pursuant to Standard F. Seller shall deliver occupancy of Property to Buyer at time of closing unless otherwise stated herein. If occupancy is to be delivered before closing, Buyer assumes all risk of loss to Property from date of occupancy, shall be responsible and liable for maintenance from that date, and shall be deemed to have accepted Property in its existing condition as of time of taking occupancy unless otherwise stated herein. VIII. TYPEWRITTEN OR HANDWRITTEN PROVISIONS: Typewritten or handwritten provisions, riders and addenda shall control all printed provisions of this Contract in conflict with them. IX. RiDERS~ (CHECK those riders which are applicable AND are attached to this Contract): (a)D'Coastal Construction Control Line (b) DCondominium (c)~Foreign Investment in Real Property Tax Act (d) ~VA/FHA (e)[~Insulation (f) [~"As Is" (g)~Homeowners' Association Disclosure (h)~Residential Lead-Based Hazard Disclosure ( i ) [3Mold X. ASSIGNABILITY~ (CHECK ONLY ONE): Buyer (1) Dmay assign and thereby be released from:any further liability under this Contract; Imay assign but not be released from liability under this Contract; or ~may not assign this Contract. XI. DISCLOSURES: (a) Radon is a naturally occurring radioactive gas that, when accumulated in a building in sufficient quantities, may present health risks to persons who are exposed to it over time. Levels of radon that exceed federal and state guidelines have been found in bgildings in Florida. Additional information regarding Radon or Radon testing may be obtained from your County Public Health unit. (b) B~yer may have determined the energy efficiency rating of the residential building, if any is located on the Real Property. (c) If the Real Property includes pre-1978 residential housing then Paragraph IX(h) is mandatory. XII. MAXIMUM REPAIR COSTS: Seller shall not be responsible for payments in (a) $i0- for treatment and repair under Standard D (if blank, then 2% of the Purchase Price). (b) $~0- for repair and replacement under Standard N (if blank, then 3% of the Purchase Price). XIII. SPECIAL CLAUSlS; ADDENDA~ If additional terms are to be provided, attach addendum and CHECK HEREI. Page 2 of 8 //Jo~/n] ~_. P~a~tDate // ~esident CITY OF DELRAY BEACH By: Tax ID No. 59-6000308 Date Deposit(s) under Paragraph II(a) received; IF OTHER THAN CASH, THEN SUBJECT TO CLEARANCE: ROBERT.~FEDERSPIEL,~.A. (Escrow Agent) By: /~/ I Page 3 of 8 SELLER: BUYER: PROPERTY ADDRESS: ADDENDUM TO CONTP. ACT FOR SALE AND P~IRC~ASE CITY OF DERLAY BEACH UNIVERSAL BEACH SERVICE CORP. 15549 SW 9th Avenue, Delray Beach, FL 33444 XIII. SPECIAL CLAUSES; ADDENDA (Continued): A. RADON GAS: Radon gas is naturally occurring radioactive gas that, when it has accumulated in a building in sufficient quantities, may present health risks to persons who are exposed to it over time. Levels of radon that exceed federal and state guidelines have been found in buildings in Florida. Additional information regarding radon and radon testing may be obtained from your county public health unit. Paragraph N of the Standards for Real Estate Transactions attached to this contract is hereby deemed to include an inspection for radon gas. B. FOREIGN INVESTMENT IN REAL PROPERTY TAX ACT ("FIRPTA"): The parties shall comply with the provisions of Internal Revenue Code Section 1445 and applicable Treasury Regulations issued thereunder. If the Seller is a U.S. person for Internal Revenue Code Section 1445 purposes, then on demand of the Buyer and prior to closing the Seller shall provide the Buyer with a certificate of non- foreign status in the manner provided in Treasury Requlations Section 1.1445-2. If the Seller provides the Buyer with such certificate, and if the Buyer is otherwise permitted to rely on such certificate under those Regulations, the Buyer shall not withhold under Internal Revenue Code Section 1445. If the Seller is a 'foreign person' as defined by the Internal Revenue Code, the Buyer generally is required to withhold 10% of the gross sales price from the Seller at closing and to pay the withheld amount over to the Internal Revenue Service (IRS) unless an applicable exemption from withholding or a limitation on the amount to be withheld is available. To the extent that the cash to be paid over to the Seller at closing is insufficient to cover the Buyer's withholding obligation, the Seller shall provide to the Buyer at closing cash equal to such excess for purposes of making such withholding payment. If the Seller's federal income tax on the gain is less than the applicable withholding amount, the Seller may make advance application to the IRS for reduced withholding and, if granted, the Buyer shall withhold only the authorized reduced amount. If such ruling has not been received by closing, the parties at closing shall enter into an escrow agreement reasonably satisfactory to the Buyer and Seller pending receipt of the ruling, provided that at closing the Seller shall have the obligation to provide to the escrow agent from the closing proceeds (or from the Seller's other resources if necessary) cash equal to the maximum required withholding, with any excess withholding being refundable to the Seller upon receipt of a favorable ruling from the IRS. Buyer and Seller understand that the IRS requires the Buyer and the Seller to have a U.S. federal taxpayer identification number and to supply that number on the foregoing forms. A foreign individual may acquire an International Taxpayer Identification Number for this purpose. Since it may take several weeks to receive the number after application and the IRS will not process these forms without the actual number, a party lacking a TIN is advised to apply immediately. C. Notwithstanding any provision of this parties represent and warrant that there is transaction to whom a commission would be due. Contract to the contrary, the no broker involved in this D. The parties hereby agree that the subject property is being sold in its "as is" condition and, in lieu of the provisions set forth in Standards D and N herein, the Buyer shall have the right to make a full and complete inspection of the subject premises and improvements thereon within forty-five (45) days from the effective date of this Contract. In the event the Buyer determines within said inspection period that the property shall be in a condition unacceptable to Buyer, the Buyer shall have the right to cancel this Contract by delivering written notice thereof within said inspection period to Seller and receive a full refund of his deposit paid under this Contract. In the event the Buyer does not cancel this Contract as aforesaid, the Buyer expressly waives any and all claims against Seller with respect to the condition of the subject property and the Buyer accepts the subject property in its "as is" condition. Seller hereby notifies Buyer that Seller is unaware of any defects or repairs required to the subject property. Page 5 of 8 STANDAKDB FOR REAL ESTATE TP.;~NSACTIONS Page 6 of 8 Page 7 of 8 Page 8 of 8 Seth I, Cohen, RA, Mitchell C, Fogel, EA. Saara J, Pekale* Tami L, Augen Fo- el Cohen Also Admitted in New York July 2, 2004 VIA HAND DELIVERY R. Brian Shutt, Assistant City Attorney City of Delray Beach 200 N.W. 1st Avenue Delray Beach, Florida 33444 Re: Harvest Moon Realty, LLC Proposed Purchase of .25 +/- Acre Vacant Parcel from the City of Delray Beach / Property Location: 15549 SW 9th Avenue, Delray Beach / Legal Description: Esquire Sub S 80 feet of E 150 feet of Lot 12, Plat Book 23, Page 43 / Folio No.: 12-43-46-20-18-000-0122 ("Property") Dear Brian: After discussing your last email concerning the Property with my client, please be advised that Harvest Moon Realty, LLC, is willing to increase its offer to purchase the parcel to $74,000.00. Please allow this letter to serve as an amendment to the Contract for Sale and Purchase my client submitted to your office on June 11, 2004. In preparation for the City Commission heating on Tuesday, July 6, 2004, please amend the package materials to reflect this updated offer. Thank you for your time and attention to this matter. For the Finn SIC/~p cc: Mr. Donald Brodsky Crystal Corporate Center · 2500 N. Military Trail * Suite 111 · Boca Eaton, Florida 33431 Telephone: 561-393-9111 Facsimile: 561 -393-9707 Seth I, Cohen, RA, Mitchell C, Fogel, RA, Saara J. Pekale* Tami L. Augen Fo el' Cohen · Also Admitted In New York July 1, 2004 VIA HA_ND DELIVERY City Commission/City of Delray Beach c/o R. Brian Shutt, Assistant City Attorney City of Delray Beach 200 N.W. 1st Avenue Delray Beach, Florida 33444 Re-' Harvest Moon Realty, LLC Proposed Purchase of.25 +/- Acre Vacant Parcel from the City of Delray Beach / Property Location: 15549 SW 9th Avenue, Delray Beach / Legal Description: Esquire Sub S 80 feet of E 150 feet of Lot 12, Plat Book 23, Page 43 / Folio No.: 12-43-46-20-18-000-0122 ("Property") To Whom It May Concern: This office represents Harvest Moon Realty, LLC ("Harvest Moon") in connection with its efforts to acquire the Property from the City of Delray Beach ("City"). In this regard, my office has presented a Contract for Sale and Pumhase ("Contract") to the City utilizing the City's form document. I understand that the City Commission will be reviewing and voting on whether to accept the Contract at the City Commission hearing that is scheduled for the evening of Tuesday, July 6, 2004 (the "Hearing"). In that acquiring the Property is important to Harvest Moon, my client has requested that I prepare this letter to better explain who the entity is and what they intend on doing with the parcel if acquired. To begin, it is important for the City Commission to know that the managing member of Harvest Moon is also the owner of House of Floors of Palm Beach, Inc., a Florida corporation ("House of Floors"). House of Floors is currently under contract with David and Felice Ledbetter to pumhase that certain 1.3 +/- acre vacant parcel of land adjacent to the Property to the southeast ("Adjacent Parcel"). House of Floors currently operates a flooring business in Delray Beach on Poinsettia Drive. House of Floors started as a husband and wife operation in 1997. The company has since grown and now has a staff of over sixty (60) individuals. Based on the nature Crystal Corporate Center · 2500 N. Military Troll * Suite 111 · Boca Rotan, Florida 33431 Telephone: 561-393-9111 Facsimile: 561 -393-9707 City Commission c/o R. Brian Shutt, Assistant City Attomey July 1, 2004 Page 2 of its business and the success that the company has attained, House of Floors has been instrumental in attracting new business to the Delray Beach area. Specifically, House of Floors promoted Delray Beach and the benefits the City offers local businesses when communicating with a flooring distributor and recycling company with whom it does business. As a result, these companies now operate their respective businesses in Detray Beach. It is the intention of House of Floors to acquire the Adjacent Parcel to construct a warehouse/office facility from which it can expand and operate/ts existing business. In preparation for House of Floors' acquisition of the Adjacent Parcel, it has retained the services of Kenneth Carlson Architects and Itasca Construction Corporation to prepare a site plan that satisfies the City's requirement in all respects. In fact, House of Floors has already submitted the site plan to the City and received DRC comments on June 17, 2004. My client informs me that the City was pleased with the initial submission and only had limited comments thereto. Enclosed please find a copy of the DRC comments received from the City for your review and edification. Upon learning that the City owned the Property and that it was for sale, my client immediately contacted the City Attorney's office to begin discussing the possibility of acquiring this additional land. In order for my client to best utilize the Adjacent Parcel and expand its business in Delray Beach, acquiring the Property is significant. As mentioned in the attached letter from Kenneth Carlson Architects, acquiring the Property will, among other things, (i) eliminate congestion in the area as the additional land will enable my client to create a better staging area for trucks that deliver and pick up goods; (ii) allow the loading docks to be relocated to a more inconspicuous area; and (iii) create additional parking so that my client is able to expand its business, hire additional staff, and more efficiently operate its business. Further, my client informs me that at the June 17th heating, members of the Architectural Review' Board ("Board") indicated tha~ they would like to see the owner of the Adjacent Parcel construct a landscape feature on the property that would help embellish the site as well as the overall community. In that the location of the Property and Adjacent Parcel represent the entryway into the City's recently rezoned district, the Board expressed that such landscape feature would serve as a gateway and/or welcome into this new and revitalized neighborhood. My client is desirous of satisfying the Board's suggestion; however, in order to do so my client would need to acquire the Property in order to ensure it had sufficient land to construct both its facility in accordance with the approved site plan and the additional landscape feature. In summation, my client is hopeful that the members of the City Commission acknowledge that House of Floors' use of the Adjacent Parcel is beneficial to the City of Delray Beach, and that its ability to acquire the Property will only serve to enhance and improve such use, and support the recently enacted rezoning ordinance. Fo e Cohen City Commission c/o R. Brian Shutt, Assistant City Attorney July 1, 2004 Page 2 Thank you for your anticipated consideration. R~ yo,urs~ ,~ 'Seth I. Cohe/~ For the Firm SIC/~p Enclosures cc: Mr. Donald Brodsky Fo e Cohen CONTRACT FOR SALE AND PURCHASE This Contract for Sale and Purchase, dated this day of June, 2004, is entered into by and between CITY OF DELRAY BEACH, a Florida municipal corporation, ("Seller"), of 100 N.W. 1st Avenue,'Delray Beach, FL 334a.n. (Phone: 561-243-7000) and HARVEST MOON REALTY, a. Florida hmited liabiliW. _comvany,_ _ (Buyer), of 33qqq 1. DESCRIPTION: See Exhibit "A" 2. PURCHASE PRICE: The Purchase' Price for the Property, subject to the contingencies set foFah betow~ shall be payable in the following manner: Purchase Price $67,000.00 Earnest Money Deposit payable to Escrow Agent upon full execution of the Agreement $ 1,000.00 Financing (90% of Purchase Price) $60,300.00 Balance of funds due from Buyer in the form of U.S, Currency, certified or cashier's check or immediately available federal funds on Closing and delivery of deed (subject to applicable prorations at closing) $ 5,700.00 TOTAL PURCHASE PRICE $67,000.00 Buyer shall be prepared to close on the Closing Date and tender the balance of the Purchase Price in lawful money of the United States of America. The balance of the Purchase Price shall be tendered in the form of an interbank wire transfer or cashier's check. 3. TIME FOR ACCEPTANCE; EFFECTIVE DATE; FACSIMILE: If this offer is not executed by and delivered to all parties on or before July 13, 2004, the deposit(s), if any, will, at Buyer's option, be returned and this offer withdrawn. The date of this Contract ("Effective Date") will be the date when (i) the last one of the Buyer and the Seller has signed this offer, and (ii) the date the City Commission of the City of Dc[ray Beach approves this Contract. A facsimile copy of this Contract and any signature thereon shall be ennsidered for all purposes as originals. shall do so at least 7 days before the closing date. TITLE EVIDENCE: If Buyer chooses to obtain a title insurance commitment, Buyer 5. CLOSING DATE: This transaction shall be closed and the deed and other closing papers delivered within twenty (20) days after the expiration of the feasibility study period as provided for in Paragraph L, unless extended by other provisions of the Contract. 6. RESTRICTIONS; EASEMENTS; LIMITATIONS: Buyer shall take title subject to: comprehensive land use plans, zoning, restrictions, prohibitions and other requirements imposed by governmental authority; restrictions and matters appearing on the plat or otherwise common to the subdivision; public utility easements of record (easements are to be located contiguous to Real Property lines and not more than 10 feet in width as to the rear or front lines and 7 ½ feet in width as to the side lines, unless otherwise specified herein); taxes for year of closing and subsequent years; assumed mortgages and purchase money mortgages, if any; provided, that there exists at closing no violation of the foregoing. 7. OCCUPANCY: Seller warrants that there are no parties in occupancy other than Seller. Seller shall deliver occupancy of Property to Buyer at time of closing unless otherwise stated herein. If occupancy is to be delivered before closing, Buyer assumes all risk of loss to Property from date of occupancy, shall be responsible and liable for maintenance fi.om that date, and shall be deemed to have accepted Property in its existing condition as of time of taking occupancy unless otherwise stated herein. 8. TYPEWRITTEN OR HANDWRITTEN PROVISIONS: Typewritten or handwritten provisions shall control all printed provisions of this Contract in conflict with them. 9. ASSIGNABILITY: Buyer may assign Contract. 10. DISCLOSURES: Radon is a naturally occun-ing radioactive gas that, when accumulated in a building in sufficient quantities, may present health risks to persons who are exposed to it over time. Levels of radon that exceed federal and state guidelines have been found in buildings in Florida. Additional information regarding Radon or Radon testing may be obtained from your County Public Health Unit. STANDARDS FOR REAL ESTATE TRANSACTIONS A. Evidence of Title: A title insurance con ,,,itment issued by a Florida licensed ~tlc insurer agreeing to issue to Buyer, upon recording of the deed to Buyer, an owner's policy of tire insurance in the mount of the purchase price, insUring Buyer's title to real property, subject only to Hens, encumbrances, exceptions or qualification set forth in tl~ Cun~act and those which shall be discharged by Seller at or before closing. Seller shall convey a marketable title subject only to liens, encumbrances, exceptions or qualffications set forth in this Contract and those wkich shall be discharged by Seller at or before closing. Marketable tire shall bc determined according to applicable title standards adopted by authority of The Florida Bar and in accordance w/th law. Buyer shall have 5 days from the date of receiving a tire commitment to examine it. If tire is found defective, Buyer shall, within 5 days thereai~er, notify Seller in writing specifying defect(s). If the defect(s) render title urrmarketablc, Seller will have thirty (30) days from receipt of untice within which to remove the defect(s), failing which Buyer shall have the option of either accepting the title as it then is or demanding a refund of deposit(s) paid which shall immediately be returned to Buyer; thereupon Buyer and Seller shall release one another of all further obligations under the agreement. Seller will, if title is found nnmarketable, use diligent effort to correct defect(s) in title within the time provided therefor, including the bringing of necessary suits. -2- B. Survey: Buyer, at Buyer's expense, within time allowed to deliver evidence of rifle and to examine same, may have Real Property surveyed and certified by a registered Florida surveyor. If the survey discloses encroachment on Real Property or that improvements located thereon encroach on setback lines, easements, lands of others, or violate any restrictions, Contract covenants or applicable governmental regulation, the same shall co.nstitute a title defect· C. ~: Seller warrants and represents that there is in, ess and e~ess to the Real Property sufficient for the intended use as daseribed in Paragraph 6, hereof, tide to which is in accordance with Standard A. D. Conduct Not Permitted: Once the Contract is fully executed, Seller shall not record any insmmaent~ deed, easement, lien, declaration, memorandum or related document in the Public Records of Palm Beach County or with the State of Florida that in any way affects title to the Property. E. Liens: Seller shall ftmaish to Buyer at time of closing an affidavit attesting to the absence, unless otherwise provided for herein, of any financing statements, claims of lien or potential lienors known to Seller and further attesthag that there have been no improvements or repairs to property for ninety (90) days tmm-ediately preceding date of closing. If property has been improved, or repaired w/thin that time, Seller shall deliver releases or waivers of machanles' liens executed by all general contractors, subcontractors, suppliers, and materialmen in addition to Seller's lien affidavit setting forth the names of all such general contractors, subcon- tractors, suppliers and materialmen and further affu'ming that all charges for improvements or repah's which could serve as a basis for a mechanic's line or a claim for damages have been paid or will be paid at closing of this Contract. F. Place of Closln_~: Closing shall be held in the county where the Real Property is located, at the office of the attorney or other closing agent designated by Seller. G. Time: In computing time periods of less than six (6) days, Saturdays, Stmdays and state or national legal holidays shall be excluded. Any time periods provided for herein which shall end on Saturday, Sunday or a legal holiday shall extend to 5:00 p.m. of the next business day. Time is of the essence in this Contract. H. Documents for Closing: Seller shall furnish deed, bill of sale, mechanic's lien affidavit, assignments of leases, tenant and mortgagee estoppel letters and corrective instruments. Buyer shall furnish closing statement, mortgage, mortgage note, security agreement, and financial statements. be paid by Buyer. Exoenses: Docamenhuy stamps on the deed and recording corrective instruments shall J. Taxes: Assessments~ Expense: Taxes, assessments and expenses relative to the property shall be paid through the date of closing. In the event an interim tax bill is not available as of the closing · the seller shall escrow adequate funds for the payment of such taxes based upun the closing agants estimate. K. S eeial Assessment Liens: Certified, confirmed and ratified special assessment liens as of date of closing (and not as of Effective Date) are to be paid by Seller. Pending liens as of date of closing shall be assumed by Buyer. If the improvement has been substantially completed as of Effective Date, such pending lien shall be considered as certified, annfirmed or ratified and Seller shall, at closing, be charged an amount equal to the last estimate of assessment for the improvement by the public body. L. Feasibility studies: The Buyer shall have sixty (60) business days following the Effective Date of this Contract within which to conduct any and all feasibility studies and determinations relative to the suitability for the acquisition of the subject property by the Buyer and the Buyer reserves the express right to terminate this Conlract at uny time during said period for any reason or no reason, in Buyer's sole discretion, whereupon Buyer shall receive a full refund of all deposit monies paid hereunder. Buyer shall be granted reasonable f access to the premises to conduct such feasibility studies and determinations, including environmental assays, core drilling, surveys, soil sampling and other such testing. M. Risk of Loss: If the property is damaged by fire or other casualty before closing and cost of restoration .does not exceed 3% of the assessed valuation of the Property so damaged, cost of restoration shall be an obligarion of the Seller and closing shall proceed pursuant to the terms of the Contract with restoration costs escrowed at closing. If the cost of the restoration exceeds three percent (3%) of the assessed valuation of the improvements so damaged, Buyer shall have the option of either taking property as is, together with either the three percent (3%) or any insurance proceeds payable by virtue of such loss or damage, or of canceling the agreement and receiving return of deposit(s). N. .Escrow: Any escrow agent ("Agent',) receiving funds or equivalent is authorized and ~grees by acceptance of them to deposit them promptly, hold same in escrow and, subject to clearance, disburse them m accordance with terms and condirions of this Contract. Failure of clearance of funds shall, not excuse Buyer's performance. If/ti doubt as to Agent's duties or liabilities under the provisions of this Contract, Agent may, at Agent's option, continue to hold the subject matter of the escrow until the parties mutually agree to its disbursement, or until a judgment of a court of competent jurisdiction shall determine the rights of the parties or Agent may deposit with the clerk of the circuit court having jurisdiction of the dispute. Upon notifying all parties concerned of such action, all liability on the part of Agent shall fully terminate, except to the extent of accounting for any items previously delivered out of escrow. If a licensed real estate broker, Agent will comply with provisions of Chapter 475, F.S., as amended. Any suit between Buyer and Seller where Agent is made a party because of acting as Agent hereunder, or in any suit wherein Agent interpleads the subject matter of the escrow, Agent shall recover reasonable attorney's fees and costs recurred with the fees and costs to be charged and assessed as court costs in favor of the prevailing party. Parties agree that Agent shall not be liable to any party or person for misdehvery to Buyer or Seller of items subject to this escrow, unless suet misdelivery is due to willful breach of euntract or gross negligence of Agent. O. Failure of Performance: If Buyer fails to perform this Con~ract within the time specified (including payment of all deposit(s)), the deposit(s) paid by Buyer may be retained by or for the account of Seller as agreed upon liquidated damages, consideration for the execution of fuis Contract and in full settlement of any claims; whereupon, Buyer and Seller shall be relieved of all obligarions under Conwact; or Seller, at Seller's option, may proceed in equity to enforce Seller's fights under this Con~ract. If, for any reason other than failure of Seller to make Sellers rifle marketable after diligent effort, Seller fails, neglects or refuses to perform this Cunttact, the Buyer may seek specific performance or elect to receive the return of Buyers deposit(s) without thereby waiving any action for damages resulting from Seller's breach. P. Contract Not Reeordable: Persons BoundI Notice. Neither this Contract nor any notice of it shall be recorded in any public records. This Contract shall bind and enure to the benefit of the parries and their successors in interest. Whenever the context permits, singular shall include plural and one gender shall include all. Notice given by or to the attorney for any party shall be as effective as if given by or to that party. Q. ~: Seller shall convey title to Real Property by Quit Claim Deed, subject only to matters contained in Paragraph 6 and those otherwise accepted by Buyer. Personal Property shall, at reques~ of Buyer, be transferred by an absolute bill of sale with warranty of rifle, subject only to such matters as may be otherwise provided for herein. R. ~: No prior or present agreements or representations shall be binding upon Buyer or Seller unless included in this Contract. No modification or change m this Contract shall be valid or binding upon the parties unless in writing and executed by the party or parties intended to be bound by it. < . ~ v ,,~, ~,-,~ ~ aot reaauy oeservao_m oy Buyer or whch have not been ~closed to Buyer. ~: ~,o,~e~y~a~h ~: ~oo~.~, ~,~ F~o~da 1~ li~ ~mp~y ATTEST: Ira: M~g M~ber By:. Ci~ Clerk Approved as to Form: By: City Attorney STATE OF FLORIDA COUNTY OF PALM BEACH The foregoing instrument was acknowledged before me tkis __ day of 200_ by who is personally known to me or who has produced (type of identification) as identification. Signature of Notary Public- State of Florida -5- Exhibit "A" Legal Description from Surveyor and/or Appraiser to be Attached Upon Receipt MelTtO To: City Commission From: David Harden~ Date: July 2, 2004 Re: House of Floors Site Plan Mr. Brodsky, President of House of Floors, has asked that we include with this agenda item their proposed site plan if we sell them our property. I have also attached the site plan they submitted several weeks ago, which did not include our property. As I understand it, Universal Beach Cleaning plans to construct a building on the property if they are the successful purchasers. A building will certainly bring the City more tax revenue in the future than a parking/loading area. I I : I _1 20 Monday, June 28, 2004 - Boca Raton/Delray Beach News · WVA~bOcanews.com lOO ANNOUNCEMENTS I..~r.u. Nonces