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Res 09-13 (Denied)RESOLUTION NO. 09 -13 A RESOLUTION OF THE CITY COMMISSION OF OF E DELRAY BEACH, FLORIDA, AUTHORIZING TH CI O BUYER CERTAIN REAL PROPERTY IN PALM 13- CH COU FLORIDA, AS DESCRIBED HEREIN, HEREBY_ ORPORATI AND ACCEPTING THE CONTRACT STATIN T'-', RMS AND CONDITIONS FOR THE SALE AND PULSE � EN THE BUYER AND THE CITY OF DELRAY BEAk, FLORIDA. r` \ WHEREAS, the City of Delray Beach, F ' ' wishes t ll certain S.W. corner of Pineapple Grove Way and Northeast 15 beet; $1 WHEREAS, the Buyer hereinaft desires y the hereinafter described from the City of Delray Mach Flo d WHEREAS, it is in the best intere f the City, cif Delray Be located at the for public purposes Florida, to sell said property. NOW, THEREFOR,; I.3E, -IT ORDAD BY THE CITY COMMISSION OF THE CITY OF DELRAY BEACH, FLORIDA; AS FOLLOWS —r- Section 1. That flit: City 094iinission of the �Ay of Delray Beach, Florida, as Seller, hereby agrees to sell to S &F A.cquisitions� Inc. a related entity of Schmier & Feurring Properties, Inc., as Buyer, interior space on the first floor of the Old Sch S are Parking Garage, for the purchase price of Two Million Five Hundied' hbusand and,, 001400 1 rs ($2,500,000.00), and other good and valuable consideration, said property being more partic*tly escribe.d as follows: §ee Exhibit "A" Section 2, the terns and conditions contained in the contract for sale and purchase and addenda to between City of Delray Beach, Florida, and the Buyer as hereinabove named are incorporate as Exl7ibi ". P AW ADOPTED in regular session on the day of 32013. ATTEST: MAYOR City Clerk Coversheet MEMORANDUM TO: Mayor and City Commissioners FROM: R. Brian Shutt, City Attorney DATE: April 10, 2013 Page 1 of 2 SUBJECT: AGENDA ITEM 11.C. - REGULAR COMMISSION MEETING OF APRIL 16, 2013 PURCHASE AND SALE AGREEMENT: OLD SCHOOL SQUARE GARAGE RETAIL SPACE ITEM BEFORE COMMISSION The items before the City Commission are three Resolutions each of which adopts and includes a proposed Contract for Sale and Purchase of the Old School Square retail space. Resolutions 8 -13 and 24 -13 provide for the sale to the Law Offices of Kanner & Pintaluga, P.A. while Resolution 9 -13 provides for the sale to S &F Acquisitions, Inc., a related entity of Schmier & Feurring Properties, Inc. BACKGROUND Resolution No. 08 -13 adopts and includes the Contract for Sale and Purchase between the City of Delray Beach, Florida and The Law Offices of Kanner & Pintaluga, P.A. for the interior space on the first floor of the Old School Square Parking Garage located on the S.W. corner of Pineapple Grove Way and Northeast 1St Street. The cost of the purchase is Two Million Five Hundred Thousand Dollars ($2,500,000.00). The City will provide the Buyer with 20 assigned parking spaces and 30 parking passes. The Buyer will pay the City a closing charge of 1.3% of the total purchase price as well as the documentary stamps on closing. The City shall pay the broker fees of 6 %. The Buyer shall take title subject to the City's lease agreement with the CRA. Resolution No. 09 -13 adopts and includes the Contract for Sale and Purchase between the City of Delray Beach, Florida and S & F Acquisitions, Inc. a related entity of Schmier & Feurring Properties, Inc. for the interior space on the first floor of the Old School Square Parking Garage located on the S.W. corner of Pineapple Grove Way and Northeast 1St Street. The cost of the purchase is Two Million Five Hundred Thousand Dollars ($2,500,000.00). The City will provide the Buyer with 15 assigned parking spaces and 25 parking passes. The Buyer will pay the City a closing charge of 1.3% of the total purchase price as well as the documentary stamps on closing. The City shall pay the broker fees of 6 %. The Buyer shall take title subject to the City's lease agreement with the CRA. This contract is contingent upon the Buyer providing the CCC the ability to occupy the space (Arts Garage Space) for a period of 10 years, with the option to purchase by the CCC at the end of the 10 year period, and providing the City evidence of such agreement. Resolution No. 24 -13 adopts and includes the Contract for Sale and Purchase between the City of Delray Beach, Florida and The Law Offices of Kanner & Pintaluga, P.A. for the interior space on the http: // itwebapp / Agendalntranet /Bluesheet.aspx ?ItemID= 6689 &MeetingID =446 4/22/2013 Coversheet Page 2 of 2 first floor of the Old School Square Parking Garage, currently occupied by the Puppetry Center, located on the S.W. corner of Pineapple Grove Way and Northeast 1St Street. The cost of the purchase is One Million Dollars ($1,000,000.00). The City will provide the Buyer with 10 assigned parking spaces and 15 parking passes. The Buyer will pay the City a closing charge of 1.3% of the total purchase price as well as the documentary stamps on closing. The City shall pay the broker fees of 6 %. The Buyer shall take title subject to the City's lease agreement with the CRA. I have also attached a letter from the Arts Garage, dated November 29, 2012, providing that they would like to purchase the entire space for an amount up to $2,500,000.00. A contract has not been drafted regarding this proposal as it is my understanding that a payment plan would need to be developed regarding this offer. RECOMMENDATION City Commission discretion. http: // itwebapp/ AgendaIntranet /Bluesheet.aspx ?ItemID= 6689 &MeetingID =446 4/22/2013 ARTS GARAGE 180 NE 1st Street Delray Beach, FL 33444 April 10, 2013 Commissioners & City Attorney City of Delray Beach 100 NW 1stAvenue Delray Beach, FL 33444 Dear Commissioners & Mr. Shutt; In February, 2006 the City of Delray Beach adopted the Delray Beach Cultural Plan, a community driven blueprint designed to identify and leverage Delray's unique character. The plan called on Delray Beach to develop cultural assets that were "creative, authentic and intimate" noting that Delray Beach was one of the only places in Florida where you "can park your car - -or leave it at home and walk to the beach, to 50 great restaurants, to galleries, parks, museums, historic districts and businesses." Two years ago, the Creative City Collaborative with the help of the CRA launched "Arts Garage" which has embodied the Cultural Plan's creative, authentic and intimate principles. By quickly becoming a valuable cultural asset for Delray Beach, The Arts Garage has become a cultural beacon in South Florida drawing in standing room only crowds, earning publicity, connecting with the youth of this community though education and outreach programs and driving economic development in Pineapple Grove, downtown, and the entire Delray Beach community. We and all of our patrons have grown to love and appreciate our success in our current location. We would like this letter to serve as a nonbinding letter of intent for our organization, The Creative City Collaborative of Delray Beach, Inc., to purchase the space (approximately 10,000 square feet) in the City's Garage Building at a price up to $2,500,000. Our board is strongly committed to Arts Garage and its current location. We are prepared to immediately embark on a capital campaign to remain in the garage and to develop the Arts Warehouse as incubator space. We feel confident in our ability to raise the necessary funds for this facility and it would also substantially reduce the investment cost needed at the Warehouse location initially. We feel that our success at this location has been so great for our entire community and we do not want to lose that for our town. We have been fortunate to have people travel in specifically for our programing from areas as far as Miami, Tampa, and even out of the State. Arts Garage continues to fulfill important aspects of the Cultural Plan by offering educational classes in our facility during the day to make Delray Beach a "learning city ", an aspect of the plan that its authors felt would position the city strongly on a national basis. We have been able to offer classes to people of all ages, but have great programs specifically for youth in the community. We strongly believe Arts Garage is the highest and best use of this space. The Arts Garage's strategic location near the Delray Beach Center for the Arts and in the heart of Pineapple Grove brings vibrancy and culture to the area helping local businesses, hotels and restaurants. It also helps tie the downtown into Pineapple Grove by offering vibrant activities at all times of the day and into the night. The CCC has strived to develop partnerships with nearby businesses in an effort to drive business to our neighbors. In return, we have received enormous support from residents, visitors and the Pineapple Grove Association. Arts Garage has delighted audiences and has become a popular place for the community to gather and enjoy a wide variety of experiences. Based on this tremendous support from the community over the past two years, we are confident in our ability to succeed and to pay the city a fair market value for the site. We believe we bring both tangible and intangible benefits to Delray Beach that can best be developed and amplified if we stay in our current location. We have proven our viability as a cultural asset and we are poised for an even brighter future. We are willing to work with the city on capital raising benchmarks to ensure that taxpayer's interests are served. In general this location being the bridge between East Atlantic Avenue and the Pineapple Grove Arts District is too important of a location to put an office use in. There are many reasons why office is not permitted on the ground floor of East Atlantic Avenue and feel those same reasons apply to this space too. As the Bridge between Pineapple Grove and East Atlantic Avenue we as well as the community believe it is important to keep the area brimming with excitement at night and be inviting to locals and tourists. A dark office space does not accomplish this. We ask that the City take the time and look at this from a perspective of land planning and future use looking 10 years into the future. The fact the City is in a position to control what the next uses are to occupy a property as important to the City as this location will need your deepest considerations. Proposed Terms: • A Purchase Price not to exceed 2.5 million dollars for the entire 10,000 square feet Work with City and CRA to provide a total of five years of continued lease term • Currently we have 2 years of term left and are asking for 3 additional years • The Organization would be able to develop a capital campaign for both the Garage Space as well as the Warehouse at one time. • The security of having the space for 5 years is quintessential to being able to set up a true capital campaign • Move into a Purchase and Sale contract and provide this organization the time to secure the capital needed as a contingency. o Having the property on the market sends mixed messages to possible donors. We appreciate your consideration and are happy to discuss this further or answer any questions. We are being represented by the following: Brian L. Rosen Marcus & Millichap Phone: 954 - 245 -3513 Cell: 305 - 753 -0808 brian.rosen @marcusmillichap.com Best Regards, Allen Glass President on behalf of the Board Creative City Collaborative /Arts Garage E10 PALMBEACHPOST.CpM I REAL NEWS STARTS HERE THE PALM BEACHPR,, -. (561 ) 82D4343 'I FRIDAY, FEBRLlARY6,2D13 I � PUBLIC HEARING NOTICE OF INTENTTO SELL REAL PUBLIC HEARING PROPERTY NOTICE NOTICE OF INTENT TO SELL REAL IS HEREBY GIVEN that Ihe:,Crty - f PROPERTY Delray Beach, Fonda, has determined to sell the following real prop tiv SW corner NOTICE IS HEREBY GIVEN, that the Ci f De €ray Beach, Florida d :Sf pPneapple Grove Way and Northeast 1 M treet M re paHc dy described on Exhibit A aNa hen M1nroln -TM1e a has detennln :to sell the fcllowm11 real props SW co 6rofPlnea �Iy PPIe Grove "Wav and be fhe My !9 13 on Oat ' tla. N OLD ?ARK EING "IT't P)"'12 INTY 2RYY TION . f0 E FOR 2AD FEET 10 E FOR I2 00 FM )F BEGINNING SAID I. PALMS BEEA.CCH I BEACH - CONTAINING' 'EET.OR:0.24 ACRES OR LESS EAST:I REAL PROP WBET'p" R'ccaa scry Post 11MISIT "p., - PUB The Pal Beach Post 201.13 #4948