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Res 16-99RESOLUTION NO. 16-99 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF DELRAY BEACH, FLORIDA, AUTHORIZING THE CITY TO PURCHASE FROM SELLER 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 SELLER AND THE CITY OF DELRAY BEACH, FLORIDA. WHEREAS, the City of Delray Beach, Florida, wishes to acquire certain property located at the northwest corner of S.W. 10th Street and Swinton Avenue; and WHEREAS, the Seller, Miguel Hernandez, desires to sell the property hereinafter described to the City of Delray Beach, Florida; and WHEREAS, it is in the best interest of the City of Delray Beach, Florida, to purchase said property for the purpose of the construction of affordable single family housing units. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF DELRAY BEACH, FLORIDA, AS FOLLOWS: Section 1. That the City Commission, as Buyer, hereby agrees to purchase from Miguel Hernandez, as Seller, land for the purchase price of One Hundred Sixty Thousand Dollars ($160,000.00), and other good and valuable consideration; said parcel being more particularly described as follows: Subdivision of Section 20-46-43, being the SE 1/4 of Lot 12 (Less W 173 FT S 25 FT SW 10th St & E 25 FT & RET Curve Area Swinton Avenue R/WS). Said vacant property located at the northwest corner of S.W. 10th Street and Swinton Avenue, Delray Beach, Florida; containing 3.~5 acres, more or less. Section 2. That the terms and conditions in the contract for sale and purchase and addenda thereto between the City of Delray Beach, Florida, and Miguel Hernandez are attached hereto as Attachment A and incorporated herein. PASSED AND ADOPTED in special session on this March, 1999. ATTEST: City Cl~k / the 10th day of CONTRACT FOR SALE AND PURCHASE MIGUEL HERNANDEZ, ("Seller"), of Miami, Florida, and CITY OF DELRAY BEACH, a Florida municipal corporation, ("Buyer"), hereby agree that the Buyer shall buy the following real property ("Real Property") upon the following terms and conditions: I. DESCRIPTION: Subdivision of Section 20, Township 46 South, Range 43 East, being the SE 1/4 of Lot 12 (Less W 173 ft. S 25 ft. SW 10th St. & E 25 ft. & RET Curve Area Swimon Avenue RJWS). Said vacant property located at the northwest corner of S.W. 10th Street and Swinton Avenue, Delray Beach, Florida; containing 3.15 acres, more or less. II. PURCHASE PRICE ................ $160,000.00 III. TIME FOR ACCEPTANCE; EFFECTIVE DATE: If this offer is not executed by and delivered to all parties OR FACT OF EXECUTION communicated in writing between the parties on or before April 15, 1999, the offer will, at Buyer's option, be withdrawn. The date of this Contract ("Effective Date") will be the date when the last one of the Buyer and the Seller has signed this offer. IV. TITLE EVIDENCE: At least 7 days before closing date, Buyer shall obtain a title insurance commitment. V. CLOSING DATE: This transaction shall be closed and the deed and other closing papers delivered on or before May 1, 1999, unless extended by other provisions of Contract. VI. RESTRICTIONS; EASEMENTS; LIMITATIONS: Buyer shall take title subject to: 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 iA 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 and 'none of them prevents the use of Real Property for residential purpose. VII. OCCUPANCY: Seller warrants that 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 shall be stated herein, and the tenant(s) or occupants disclosed pursuant to Standard D. Seller agrees to deliver occupancy of Property 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 their existing condition as of time of taking occupancy unless otherwise stated herein or in a separate writing. VIII. TYPEWRITTEN OR HANDWRITTEN PROVISIONS: Typewritten or handwritten provisions shall control all printed provisions of Contract in conflict with them. IX. ASSIGNABILITY: Buyer may not assign Contract. STANDARDS FOR REAL ESTATE TRANSACTIONS A. Evidence of Title: A title insurance commitment issued by a Florida licensed title insurer agreeing to issue to Buyer, upon recording of the deed to Buyer, an owner's policy of title insurance in the amount of the purchase price, insuring Buyer's title to real property, subject only to liens, encumbrances, exceptions or qualification set forth in this agreement 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 qualifications set forth in this agreement and those which shall be discharged by Seller at or before closing. Marketable title shall be determined according to applicable title standards adopted by authority of The Florida Bar and in accordance with law. If title is found defective, Buyer shall notify Seller in writing specifying defect(s). If the defect(s) render title unmarketable, Seller will have one hundred twenty (120) days from receipt of notice 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 unmarketable, use diligent effort to correct defect(s) in title within the time provided therefor, including the bringing of necessary suits. B. Survey: Buyer, at Buyer's expense, within time allowed to deliver evidence of title and to examine same, may have real property surveyed and certified by a registered Florida surveyor. If survey shows encroachment on real property or that improvements located on real property encroach on setback lines, easements, lands of others, or violate any restrictions, agreement covenants or applicable governmental regulation, the same shall constitute a title defect. C. Ingress and Egress: Seller warrants and represents that there is ingress and egress to the real property sufficient for the intended use as described herein, title to which is in accordance with Standard A. D. Leases: Seller shall, not less than fifteen (15) days before closing, furnish to Buyer copies of all written leases and estoppel letters from each tenant specifying the nature and duration of the tenant's occupancy, rental rates, advanced rent and security deposits paid by tenant. If Seller is unable to obtain such letter from each tenant, the same information shall be furnished by Seller to Buyer within that time period in the form of a Seller's affidavit, and Buyer may thereafter contact tenants to confirm such information. Seller shall, at closing, deliver and assign all original leases to Buyer. -2- E. Liens: Seller shall furnish 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 attesting that there have been no improvements or repairs to property for ninety (90) days immediately preceding date of closing. If property has been improved, or repaired within that time, Seller shall deliver releases or waivers of mechanics' 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, subcontractors, suppliers and materialmen and further affirming that all charges for improvements or repairs 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. F. Place of Closing: Closing shall be held in the county where real property is located, at the office of the attorney or other closing agent designated by Buyer. G. Time: Time is of the essence of this agreement. Time periods herein of less than six (6) days shall in the computation exclude Saturdays, Sundays and state or national legal holidays, and any time period provided for herein which shall end on Saturday, Sunday or legal holiday shall extend to 5:00 p.m. of the next business day. 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. I. Expenses: Documentary stamps on the deed shall be paid by Seller. J. Prorations; credits: Taxes, assessments, rent, interest, insurance and other expenses and revenue of property shall be prorated through day before closing· Buyer shall have the option to taking over any existing policies of insurance, if assumable, in which event premiums shall be prorated. Cash at closing shall be increased or decreased as may be required by prorations. Prorations will be made through day prior to occupancy if occupancy occurs before closing. Advance rent and security deposits will be credited to Buyer and escrow deposits held by mortgagee will be credited to Seller· Taxes shall be prorated based on the current year's tax with due allowance made for maximum allowable discount,homestead and other exemptions. If closing occurs at a date when the current year's milage is not fixed, and current year's assessments is availablq, taxes will be prorated based upon such assessment and the prior year's milage. If current year's assessment is not available, then taxes will be prorated on the prior year's tax. If there are completed improvements on real property by January 1st of year of closing which improvements were not in existence on January 1st of the prior year then taxes shall be prorated based upon the prior year's milage and at an equitable assessment to be agreed upon between the parties, failing which, request will be made to the County Property Appraiser for an informal assessment taking into consideration available exemptions. Any tax proration based on an estimate may, at request of either Buyer or Seller, be subsequently readjusted upon receipt of tax bill on condition that a statement to that effect is in the closing statement. -3- K. Special 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, confirmed 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. Inspection~ Repair and Maintenance: Seller warrants that, as of ten (10) days prior to closing, the ceiling, roof (including the fascia and soffits) and exterior and interior walls do not have any VISIBLE EVIDENCE of leaks or water damage and that the septic tank, pool, all major appliances, heating, cooling, electrical, plumbing systems and machinery are in WORKING CONDITION. Buyer may, at Buyer's expense, having inspections made of those items by an appropriately Florida license person dealing in the construction, repair or maintenance of those items and shall report in writing to Seller such items that do not meet the above standards as to defects together with the cost of correcting them, prior to Buyer's occupancy or not less than ten (10) days prior to closing, whichever occurs first. Unless Buyer reports such defects within that time Buyer shall be deemed to have waived Seller's warranties as to defects not reported. If repairs or replacement are required, Seller shall pay up to three percent (3 %) of the purchase price for such repairs or replacements by an appropriately Florida licensed person selected by Seller. If the cost for such repairs or replacement exceeds three percent (3%) of the purchase price, Buyer or Seller may elect to pay such excess, failing which either party may cancel this agreement. If Seller is unable to correct the defects prior to closing, the cost thereof shall be paid into escrow at closing. Seller will, upon reasonable notice, provide utilities service for inspections. Between the effective date and the closing, Seller shall maintain property including but not limited to the lawn and shrubbery, in the condition herein warranted, ordinary wear and tear excepted. Buyer shall be permitted access for inspection of property prior to closing in order to confirm compliance with this standard. M. Risk of Loss: If the property is damaged by fire or other casualty before closing and cost of restoration does not exceed the purchase price of the properly so damaged, cost of restoration shall be an obligation of the Seller and closing shall proceed pursuant to the term so the agreement 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 agrees by acceptance of them to deposit them promptly, hold same in escrow and, subject to clearance, disburse them in accordance with terms and conditions of agreement. Failure of clearance of funds shall not excuse Buyer's performance. If in doubt as to Agent's duties or liabilities under the provisions of agreement, 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 -4- 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. (1997), 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 incurred 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 misdelivery to Buyer or Seller of items subject to this escrow, unless such misdelivery is due to willful breach of contract or gross negligence of Agent. O. Failure of Performance: If Buyer fails to perform this Contract 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 this Contract and in full settlement of any claims; whereupon, Buyer and Seller shall be relieved of all obligations under Contract; or Seller, at Seller's option, may proceed in equity to enforce Seller's rights under this Contract. If, for any reason other than failure of Seller to make Seller's title marketable after diligent effort, Seller fails, neglects or refuses to perform this Contract, the Buyer may seek specific performance or elect to receive the return of Buyer's deposit(s) without thereby waiving any action for damages resulting from Seller's breach. P. Agreement Not Recordable; Persons Bound; Notice: Neither this agreement nor any notice of it shall be recorded in any public records. This agreement shall bind and enure to the benefit of the parties 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. Conveyance: Seller shall convey the property by way of Warranty Deed subject to an easement for any utilities that may exist and lie on the property. R. Other Agreements: No prior or present agreements or representations shall be binding upon Buyer or Seller unless included in this Contract. No modification or change in this Contract shall be valid or binding upon the parties unless in writing and executed by the party or parties intended tb be bound by it. -5- S. Warranties: Seller warrants that there are no facts known to Seller materially affecting the value of the real property which are not readily observable by Buyer or which have not been disclosed to Buyer. BUYER: City of Delray Beach SELLER: By: By:. Mayor, Jay Alperin Miguel Hernandez ATTEST: By:. City Clerk Approved as to Form: By: City Attorney State of Florida County of Palm Beach The foregoing instrument was acknowledged before me this day of , 1999 by MIGUEL HERNANDEZ, who is personally known to me or who has produced .(type of identification) and who did (did not) take an oath. Signature of Notary Public- State of Florida -6- WATER ST¸ STREET LINTON SHIP/~DBG THE pLAZA AT Dr LRAY AFFORDABLE D~LRA Y BOULEVARD HOUSING MEMORANDUM TO: FROM: SUBJECT: MAYOR AND CITY COMMISSIONERS CITY MANAGER~ AGENDA ITEM ~ P~- SPECIAL MEETING OF MARCH 10, 199D RESOLUTION NO. 16-99 (AUTHORIZING ACQUISITION PROPERTY AT NORTHWEST CORNER OF OF SWINTON AVENUE AND S.W. 10TH STREET) DATE: MARCH 5, 1999 On April 7, 1998, the City Commission approved the issuance of a formal notice of intent to acquire the vacant, 3-acre parcel of land at the northwest corner of Swinton Avenue and S.W. 10th Street. A copy of the minutes from that meeting are attached. Staff pursued acquisition of the property and in January, 1999, extended an offer to purchase in the amount of $160,000.00. The offer was accepted by Mr. Hernandez, the property owner, on February 1st. In order to proceed with the closing, formal approval of the sale and purchase is required from the City Commission by adoption of an authorizing resolution. I recommend approval of Resolution No. 16-99. ref:agmemoll [lTV DF i]ELRrI9 BErl[H DELRAY BEACH · ~l~-~ledcaL~january 26, 1999 1993 Miguel Hernandez 7200 Miller Drive Miami, FL 33155-5502 10o N,W. 1st AVENUE · D-'=LRAY BEACH, FLORIDA 33444 (561) 243-7000 RE: Off. e_~ for Purchese Dear Mr. Hemandez: Pursuant to the authorization given to me by formal acdon of the City Commission, please accept this letter as the City of Dekay Beach's formal offer to purchase your property identified as: 12-43-46-20-01-012-0010; SUB of SEC 20-46-43, SE ¼ of Lot 12 (Less W 173 ET S 25 FT SW l0b St & E 25 FT & RET Curve Area Swinton Avenue R/WS). The City is offering to purchase your property in the amount of $160,000. The proposed purchase price is b~.ase..d on ,the appraise.d, value established in June, 1998 by Jenkins Appraisal Services, Inc. ana our rmctmgs from the preliminary Soil Profiles done by AM Engineering and Testing, Inc., in December, 1998. Consideration is also given to infrastructUre costs to develop the property and other soft costs necessary to consh'uct affordable single family homes for our residents. If the proposed sale price is acceptable to you, please sign in the area provided at the bottom of this letter. If you plan to counter the offer, please do so in writing at your earliest convenience. We appreciate your patience with us, considering the length of ffrne it has ~aken to get to this point. It is out intent to work toward finalizing the purchase of this property within the next 30 days. Sincerely, ~ Director, Community Improvement Please feel free to contact me at 561-243-7204 if you have any questions regarding this letter. I Iook forward to your response. ~t~ ~0 "~y .~.~.-/~./~ /..~- ~. I accept the offer for purchase in the amount of $160,000 CC: David Harden C~tarles Bender la_~k z/. Date Signed THE EFFORT ALWAYS MATTERS to purchase this lot in the West Settlers Historic District, but the lot has several liens on it from City-initiated activity. The CRA is negotiating with the property owner to acquire the lot at the appraised value of $11,500. The owner desires to realize a net profit of $6,000 from the sale of the property. The City has been abating nuisances on the property since 1986 and demol- /shed an unsafe structure in 1990, with actual out-of-pocket costs totaling $3,572.73. The CRA is asking for the waiver of the interest and administrative fees totaling $4,947.41. Staff recommends that the owner be required to pay the City's actual out-of-pocket costs in the amount of $3,572.73. Mr. Egan moved to approve the CRA's request to waive accumulated interest and administrative fees levied against property located at 309 N.W. 1st Street (Lot 16, Block 35, Town of Delray), with the City to be reimbursed for actual out-of- pocket costs in the amount of $3,572.73. The motion was seconded by Mr. Schmidt. Upon roll call the Commission voted as follows: Mr. Ellingsworth . Yes; Mr. Randolph Yes; Mayor Alperin - Yes; Mr. Schmidt - Yes; Mr. Egan - Yes Said motion passed with a 5 to 0 vote. ' ,,,, .... ~ T RE R PERTY WI.~_~ N .W. 10TH ~ Conside? authorizing staff to zssu . intent to acquire the 3 acre, e a formal notice of vacant property located at the northwest corner of Swinton Avenue and S.W. 10th Street for use under the City,s affordable housing program. Lula Butler, Director of Community Improvement, stated The request is for the City Commission to grant approval for the zssuance of a formal notice of the City,s intent to acquire the three acre, vacant property located at the northwest corner of Swinton Avenue and S.W. 10th Street. The property is zoned R-lA (Single Family Residential) District and the intent is to pur- chase the property with State Housing Initiatives Program (SHIP) funds and/or Community Development Block Grant (CDBG) funds for ultimate development as an affordable housing opportunity for moderate income households. The actual acquisition would proba- bly occur during the 1998/99 fiscal year. ~r. Ellingsworth moved to approve the issuance of a formal notice of intent to acquire the three-acre, vacant proper- ty located at the northwest corner of Swinton Avenue and S.W. 10th Street; seconded by Mr. Randolph. Upon roll call the Commission voted as follows: Mr. Randolph - Yes; Mayor Alperin Yes; Mr. Schmidt - Yes; Mr. Egan - Yes; Mr. Ellingsworth Yes. Said motion passed with a 5 to 0 vote. 9.G, ~T~ENSION ~ ~v~ ,,~ ....... ~ N . TREET FEC Consider the preliminary cost estimate and authorization for staff to proceed with the design for extending the right turn lane on N.B. 4th Street from N.B. 5th Avenue west to just east of the FEC Railroad tracks. -12- 4/07/98 CITY OF DELRRY BEACH CITY ATTORNEY'S OFFICE DELRAY 8EACH AII,Amedca City 1993 DATE: TO: FROM: 200 NW 1st AVENUE · DELRAY BEACH, FLORIDA 33444 TELEPHONE 561/243-7090 · FACSIMILE 561/278-4755 Writer's Direct Line: 561/243-7091 MEMORANDUM March 9, 1999 Alison MacGregor Harty, City Clerk Brian Shutt, Assistant City Attorney SUBJECT: Agreement for Purchase of Property from Miguel Hernandez Attached please find an agreement for the purchase of property from Miguel Hernandez. Please call if you have any questions. CC: David Harden, City Manager Lula Butler, Community Improvement Director ,~oca Raton News, Monday, March 8, 1999 Boca Raton News, Thursday, March 4, 1999 NOTICE OF INTENT TO ACQUIRE REAL PROPERTY NOTICE IS HEREBY GIVEN that the City of Delray Beach, Florida, has determined it to be in the best interest of the City to purchase certain real property for the purchase price of One Hundred Sixty Thousand and 00/100 Dollars ($160,000.00), and other good and valuable consideration, for municipal purposes, more particularly described as follows: Subdivision of Section 20-46-43, being the SE 1/4 of Lot 12 (Less W 173 FT S 25 FT SW 10th St & E 25 FT & RET Curve Area Swinton Avenue R/WS). Said vacant property located on the northwest corner of S.W. 10th Street and Swinton Avenue, Delray Beach, Florida; containing 3.15 acres, more or less. A Resolution of the City Commission of the City of Delray Beach, Florida, authorizing the purchase of the above referenced property, on the terms and conditions contained in the Contract for Sale and Purchase, will be considered for adoption by the City Commission at a special meeting to be held at 6:00 p.m. on Wednesday, March 10, 1999, in the First Floor Conference Room at City Hall, 100 N.W. 1st Avenue, Delray Beach, Florida. Pursuant to Section 36.04 of the Code of Ordinances of the City of Delray Beach, Florida. PUBLISH: The News March 4, 1999 March 8, 1999 CITY OF DELP~AY BEACH Alison MacGregor Harry City Clerk Instructions to Newspaper: This is a standard legal ad to be placed in the legal/classified section of the newspaper. Thank you. BUTLER~L~ RAL004~D (Opt.11) PID~: 12 43 Legal Line 1 .... Legal Line 2 .... Legal Line 3 .... Legal Line 4 .... Legal Line 5 .... Legal Line 6... Legal Line 7... Legal Line 8... Legal Line 9... Legal Line 10.. Legal Line 11.. Legal Line 12.. Legal Line 13.. Legal Line 14.. N.A.L. COUNTY TAPES INQUIRY Le~al DesCription 46 20 01 012 0010 SUB OF SEC 20-46-43, SE 1/4 OF LT 12 (LESS W 173 FT S 25 FT SW 10TH ST & E 25 FT & RET CURVE AREA SWINTON AVE R/WS) 14:14:22 1/26/99 CF3: End CF12: Backup CF4: Menu CF6: Search Enter: Next Fl: HELP RA~006ID (Opt.l) PID#: 12 Prop. Addr Prop. Descrp Owner Name: Owner Addrl: Owner Addr2: Owner Addr3: Legal Descrp: CF3: End CITY OF DELRAY BEACII M.A.F. COUNTY TAPES INQUIRY GENERAL I N F 0 R MA T I 0 N ~1 43 46 20 01 012 0010 SW 10TH ST A/C Type: VACANT Bathrooms~ Stories: HERNANDEZ MIGUEL 7200 MILLER DR MIAMI FL 33155 SUB OF SEC 20-46-43, SE 1/4 OF LT 12 (LESS W 173 FT S 25 FT SW 10TH ST & E 25 FT Roof Structure: Roof Cover: Heating Fuel: Heating Type: Ext Wall-l: Ext Wall~2: Iht Wall-l: Iht Wall-2: Iht Floor-l: Iht Floor-2: CF12: Backup CF4: Menu CF6: Search Enter: Next 14:14:28 /26/99 Fl: HELP