08-26-91 Budget Workshop
CITY OF DELRAY BEACH, FLORIDA - CITY COMMISSION
BUDGET WORKSHOP MEETING - AUGUST 26, 1991 - 6:00 P.M.
FIRST FLOOR CONFERENCE ROOM
AGENDA
Please be advised that if a person decides to appeal any decision
made by the City Commission with respect to any matter considered
at this meeting or hearing, such persons will need a record of
these proceedings, and for this purpose such persons may need to
ensure that a verbatim record of the proceedings is made, which
record includes the testimony and evidence upon which the appeal
is to be based. The City does not provide or prepare such
record.
1. Update of Lavers Property Matter.
2. Budget discussions:
A. Fire Department
B. Police Department
C. Human Resources
D. Golf Course
E. General
3. Commission Comments.
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[ITY DF DELRAY BEA[H
CITY ATTORNEY'S OFFICE 200 NW 1st AVENUE' DELRAY BEACH, FLORIDA 33444
FACSIMILE 407/278-4755 Wr1.tcar9.. D.:1.:rftct:. l..1.r'1G
(407) 243-7092
MEMORANDUM
Date: August 2 , 1991
To: City Commission
From: Jeffrey S. Kurtz, City Attorney
Subject: Update of Lavers Property Matter
Our File #02-89.005
The City Attorney's Office has been advised by Ray Kennedy of
FDIC in Orlando that the first of the two appraisals ordered by
the FDIC was rejected because the appraiser submitted an
incomplete appraisal. This first appraisal is expected to be
received. by the FDIC sometime next week, The second appraisal
has been ordered but not yet received. It is expected to be
received on or about August 7th.
The FDIC is in the process of soliciting outside real estate
brokers ìl1 a sealed bid procedure. The real estate brokers
have 30 days to respond to a questionnaire (which has just been
sent out) . When the FDIC receives the responses to their
questionnaire, they will review them and select a real estate
broker within one week. Thereafter, advertisements will be
placed for a minimum time period of 30-45 days and offers will
be received. The FDIC will directly provide the City with a
quote form and an updated asking price for your consideration
and response.
By copy of this memorandum to the City Manager, I am requesting
that this item be placed on the City Commission's regular
agenda for discussion at their August 26, 1991 meeting.
Should you have any further questions regarding this matter,
please do not hesitate to contact the City Attorney's Office.
JSK: jw
cc: David Harden, City Manager
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[ITY DF DELRAY BEA[H . ,
CITY ATTORNEY'S OFFICE 200 NW Is! AVE¡-;UE . DELRAY BEACH, FLORIDA 33444
FACSIMILE 407/278-4755 Writer's Direct Line
(407) 243-7092
MEMORANDUM
Date: June 27, 1991
To: City Commission
From: Jeffrey S. Kurtz, City Attorney
Subject: Status of the Lavers Property
Our File #02-89.005
On June 13, 1991 I met with Mr. Ray Kennedy who is a Liquida-
tion Assistant with FDIC in Orlando. At that meeting we
reviewed the status of the Lavers property and anticipated time
tables and procedures for the disposing of the property. The
following is a report on these items:
FDIC's time tables and problems:
The FDIè'nas ordered two new appraisals of the property because
of the age of the previously-existing appraisals. One of the
appraisals had already been received by the office and the
other was expected within thirty days of our meeting. Under no
circumstances will either the appraisals be available to the
general public, and it is based on those appraisals in large
part that FDIC will set the parameters of what they would
accept in a bid and actually set an asking price for the sale
of the property. In seeking title commitments on the property,
FDIC has become concerned about what they actually acquired and
whether they have complete title to the common areas that exist
on the property. It is their present anticipation that within
thirty days of our meeting or approximately July 15th, they
will have resolved the title problems and be able to set an
asking price. Simultaneously with that decision, they will
begin a sealed bid process which will be advertised approxi-
mately forty-five days and then held open for two weeks or so
after the last date the ad is run. All of the information on
the specifics of the bidding process will be included in that
advertisement and we will get direct notice of the institut.ion
of that process from FDIC.
Mr. Kennedy informed me that FDIC and RTC have very differing
parameters for disposing of the property since RTC's charge is
to liquidate all assets and FDIC's charge is to preserve as
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Memo to City Commission
July 27, 1991 '
Page 2
much money as possible for the government's insurance fund.
Because of that, they cannot be as liberal as RTC would be in
disposing of this property.
I was informed that bidders, including the City, could put in
any number of permutations that they desired, including
multiple bids on their own or with multiple bidding partners.
Mr. Kennedy also indicated that in the bidding process, the
FDIC would consider bids for only a portion of the property.
Once the sealed bids are received they are reviewed by Mr.
Kennedy, who would make a recommendation to a committee in
Orlando who would forward on any positive recommendations to
the Chicago office where it would then again be reviewed by a
committee and because of the anticipated value that will be
placed by the appraisers on this property, the likelihood is
that it will require approval by yet another committee in
Washington, D.C. Therefore, a reasonable time frame for
completion of this process is four months from receipt of bids
and at least two months in the review process before a contract
could be approved. Mr. Kennedy did indicate, however, that he
could give a prospective bidder a response with respect to what
his initial recommendation would be to the Orlando committee
within a 48 hour time table. It also appeared to me that at
any time once the asking price was set, that a purchaser could
offer tfie-~ asking price and such an offer would be accepted
assuming that the purchaser had adequate financing.
Mr. Kennedy indicated two things that FDIC would not do. It
would not get involved as a financing agent on the purchase of
this property, nor would it get involved as a developer on a
speculative basis. However, if a prospective bidder requires
as a condition of their bid that certain site plan changes or
rezonings take place, the FDIC, if they found the bid to be
acceptable, would participate to whatever extent is necessary
in order to accomplish the revision of the site plan or the
zoning problem. Therefore, based on my assumption that the
process to accept a bid will take at least six months, it would
be my feeling that actual transfer in ownership would be at
least nine months to a year away allowing time for site plan
modifications and financing to take place prior to a closing.
If the initial round of bidding is unsuccessful in that an
acceptable bid is not placed, Mr. Kennedy indicated that the
"parameters" would be revised, obviously indicating that their
pricing on the property would be more flexible at that time.
Mr. Kennedy also indicated that because of the anticipated
invol vement by the City, at least from the prospective of
making land use adjustments, he would recommend to any bidder
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Memo to City Commission
July 27, 1991 ' ,
Page 3
that contacted him with interest that they also get in touch
with our office to discuss the situation.
Status of the Quiet Title Action on Tennis Court Property:
We anticipate being able to notice the case for trial in
September and depending on the judge's calendar have the matter
heard by next spring. A delay has arisen because one of the
McGrew heirs had left their estate to a dozen or so charitable
institutions and two fo those have not concurred in the choice
of joint counsel and will have to be served individually.
Should you desire a more substantial update on this matter,
please do not hesitate to contact the City Attorney's Office.
Recommendations:
At this point in time it would be my recommendation to the City
Commission that they authorize staff to prepare a sketch plan
of what staff determines to be the most convenient and minimum
area needed for our needs along with updates as to the costs of
making improvements to the property and on that basis the City
Commission then put together a bid for a portion of the
property. In addition, the City staff should remain open to
any and all prospective bidders to work in conjunction with
them ana'-also to contact prospective purchasers who have made
themselves known to us and inquire as to their plans in order
to report back to the Commission. Should you wish any further
details concerning my conversations with Mr. Kennedy or the
status of the litigation, please do not hesitate to contact my
office prior to that time.
JSK: jw
cc: David Harden, City Manager
Joe Weldon, Director of Parks and Recreation
David Kovacs, Director of Planning and Zoning
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[ITY OF DELRRY BER[H
100 N.W. 1st AVENUE DELRAY BEACH, FLORIDA 33444 407/243-7000
MEMORANDUM
TO: David T. Harden, City Manager
FROM: {If!; Robert A. Barcinski, Assistant City Manager/
Administrative Services
SUBJECT: Golf Course Budget FY '91-92
DATE: August 20, 1991
Mr. Dubin has requested a meeting with you and/or City Commission on
August 26th to discuss the FY '91-92 budget. He wishes to discuss the
following items:
1. Prepaid Green Fees - Mr. Dubin wants to increase these rates.
I recommended and we budgeted NO rate increases.
2. Capital Improvements - Mr. Dubin wants to add the following
capital improvements to the budget thus reducing the projected
surplus.
a. Landscape Improvements $50,000
b. Re-roof Club House $35,000
I concur with the re-roofing. Additional landscaping might be
purchased if there are bond funds left.
3. XETA Tee Time System - Need to budget an expense of $12,500
left out. Mr. Dubin also wants to charge the prepaid permit
holders the $25.00 fee. We did not do this last year. I
recommend we again do not charge the fee to the prepaid permit
holders.
Please advise how you want to proceed.
RAB:kwg
THE EFFORT ALWAYS MATTERS 0/5 :# d. /J.
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COeQhaý CBeach Cout\thY CQub
Men's Qolf Association
2200 Hi9~lanJ Avenue
Delray Beac~ 'Jlorida 3311115
August 19, 1991
The Honorable Thomas Lynch
Mayor of Delray Beach
100 N.W. 1st Avenue
Delray Beach, FL 33444 ~ ~ t.'»- ~~);0'1~'
Dear Sir: . ~--~'
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It is disappointing to be made aware of a proposed rate increase
for the members of the Delray Beach Golf Club. If my memory serves
me correctly, we were informed at a commissioners meeting the Golf
Club enjoyed a favorable. profit for 1990/91.
We of the Delray Beach Men's Golf Association(185 men) support this
Golf Club whole heartily both winter and summer. Certainly, we en-
joy the blocked out tee times and special event privileges. Perhaps
it has never been published, but from November of 1990 thru June of
1991, the Men's Club put into the pro shop a little better than
$8,800.00 in prize money. Not to mention out-of-pocket spending by
our membership. This contributes to the success and profits of the
Delray Beach Golf Club.
Therefore, I am suggesting that· the proposed rate increase be de-
layed for at least another year.
WLA/kb
cc: David Harden
Robert Barcinski~
William Andrews
David Randolph
Jay Alperin
Armand Mouw
Brahm Dubin
Rich Hinton
Helen Kline, President
Ladies Golf Association