03-23-95SpMtg MARCH 23, 1995
A Special Meeting of the City Commission of the City of Delray
Beach, Florida, was called to order by Mayor Thomas E. Lynch in the
City Manager's Conference Room at City Hall at 5:15 p.m. on Thursday,
March 23, 1995.
Roll call showed:
Present - Commissioner Jay Alperin
Commissioner Ken Ellingsworth
Commissioner David Randolph
Mayor Thomas E. Lynch
Absent - Commissioner Barbara Smith
Also present were City Manager David T. Harden and City Attorney
Susan A. Ruby.
Mayor Lynch called the meeting to order and announced that it
had been called for the purpose of considering the following item:
(1) Consider purchase of the McGraw building at 306 N.E. 2nd Street
for the Crossroads Club.
City Attorney Susan A. Ruby presented for consideration a Letter
of Intent to purchase the McGraw property located at 306 N.E. 2nd
Street in Delray Beach. The terms include a purchase price of
$280,000.00, with closing to occur on or before December 31, 1995.
The City will tender $1,000.00, payable to the owner in consideration
for the Letter of Intent. The $1,000.00 payment will be deducted
from the purchase price upon closing. Ms. Ruby advised that she had
discussed the matter with Mr. McGraw earlier in the day. He reviewed
the Letter of Intent and it was acceptable to him.
The City Attorney then reviewed correspondence received from The
CRC Recovery Foundation, Inc. which essentially agrees to the terms
set forth by the City Commission during the discussion of this matter
at the regular meeting on March 21, 1995. During the first two
years, the consideration would be $10.00 in each of those years, and
during those years the CRC Recovery Foundation will do certain
renovations, including installing an elevator. After the first two
years, until the year 2001, the Foundation will pay to the City the
amount of 856,000.00 annually, which would essentially cover the
purchase price. As a result, the City's ultimate contribution to the
acquisition of the property is free interest.
Ms. Ruby then stated that the Commission had discussed the
possibility of a reverter if the property was not used for alcohol
and/or drug recovery purposes. In light of the fact that the CRC
Recovery Foundation will be paying the City the entire purchase price
over a period of time, they do not want to give the City a reverter.
Discussion followed on this point, with direction to the City
Attorney to incorporate a "right of first refusal" clause in favor of
the City during the term of the mortgage, at the original purchase
price of $280,000.00.
Mr. Randolph moved to approve the Letter of Intent to Purchase
Real Property located at 306 N.E. 2nd Street at the purchase price of
$280,000.00, seconded by Mr. Ellingsworth. Upon roll call the
Commission voted as follows: Dr. Alperin - Yes; Mr. Ellingsworth -
Yes; Mr. Randolph - Yes; Mayor Lynch - Yes. Said motion passed by a
vote of 4 to 0.
Prior to roll call, discussion was had concerning the City's
policy for assisting organizations which provide services to the
community that in the long run may help to prevent future problems
and additional demands on the City's resources. The consensus was.to
discuss this matter further at a future workshop.
There being no further business, Mayor Lynch declared the
special meeting adjourned at 5:45 p.m.
ATTES~----~
· M A Y~/~
The undersigned is the City Clerk of the City of Delray Beach,
Florida, and the information provided herein is the Minutes of the
Special Meeting of the City Commission held on March 23, 1995, which
Minu~es were formally approved and adopted by the City Commission on
-- - ~* City Cl~rk
NOTE TO READER:
If the Minutes you have received are not completed as indicated
above, this means they are not the official Minutes of the City
Commission. They will become the official Minutes only after review
and approval which may involve amendments, additions or deletions to
the Minutes as set forth above.
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