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08-16-78 AUGUST 16, 1978 A Special Meeting of the City Council of the City of Delray Beach, Florida, was held in the Council Chambers at 7:00 P.M., Wednes- day, August 16, 1978, with Mayor Leon M. Weekes presiding, City Manager J. Eldon Mariott, City Attorney Roger Saberson, and Council Members Robert D. Chapin0 Charlotte G. Durante, Aaron I. Sanson, IV., and James H. Scheifley present. Mayor Weekes called the meeting to order and announced that same had been called for the purpose of considering purchase of the Delray Beach Country Club. The City Attorney called attention to paragraph 2 on page 2 of the contract wherein the provision was made that in the event of a default the purchaser would have to pay liquidated damages of $140,000; it was agreed that this would be stricken and in place of that each party would just be left to their usual contract remedies. The City Attorney advised he discussed this subject with Mr. Kelly, Mrs. Harris' son-in-law, and Mr. Kelly advised he would like the City to prepare the contract as we would like to have it prepared and they will react to it at that point. The City Attorney stated that if it is necessary for either party to pursue a remedy, the prevailing party would be entitled to their cost and fees. The City Attorney advised that in regard to reimbursement of the memberships, the seller is going to reimburse the unused portion of the membership fees and the fees will be determined as of the date of the closing. He further stated that the seller would not permit the City to use any of the equipment or personal property for any period of time after closing, so a clause was inserted that the seller would remove any of their property remaining on the premises within 30 days after closing at their expense. The City Attorney stated that with regard to Schedule A there is going to be an amendment to the legal description under encroach- ments as at present the 6th green encroaches on the seller's property and there are two buildings of theirs that would encroach on our property. The legal description would be amended so that the encroach- ments would be corrected and each side would receive an equal amount of property in exchange to clear the encroachments. There will be a survey and the cost of the survey will be split equally between the parties. The City Attorney advised that the seller has requested the use of the road that goes from Congress Avenue through to Homewood Boulevard for 90 days after closing for the transporting of their carts and equipment. The City Attorney advised he would recommend Council authorize the execution of the agreement along the lines that he has outlined and also that Council further authorize the City Attorney, in conjunc- tion with the City Administration, to finalize the details and make minor changes as needed to finalize the contract transaction. Mr. Chapin moved that the City Council authorize the Mayor to execute a contract exercising the City's option for repurchase of the acreage that was deeded away by the City in 1958, subject to non-sub- stantive minor technical revisions that may be suggested and approved by the City Administration and City Attorney, seconded by Mr. Scheifley. Said motion passed unanimously. The City Attorney explained that the second contract is for the purchase of the small additional acreage. It is a standard real estate contract with the closing of this particular parcel simultan- eous with the closing on the option for the overall Country Club. The purchase price is $85,000 with a 10% downpayment to be held in trust by the seller's attorney, and provides that the seller will supply the City with title insurance at seller's expense. One clause on the second page provides for conveyance by Special Warranty Deed; that should be deleted and it should read "Statutory Warranty Deed". The contract is set up whereby it provides that in the event of a default the 10% deposit would be forfeited. Mr. Chapin moved that Council authorize the Mayor to enter into the contract for the purchase of approximately 5.9 acres as described by the City Attorney subject to any technical or non- substantive or procedural recommendations that may be made by the City Attorney or the City Administration, seconded by Mrs. Durante. Said motion passed unanimously. The City Attorney advised that the hearing for the bond validation is going to be on October 26, 1978, at 9:30 A.M., the earliest possible hearing date he could get. The appeal time of 30 days will run from that date, to November 26, 1978, and the earli- est possible date the City could receive the money would be November 27, 1978. The Finance Director stated upon question by Mr. Sanson that it would probably be mid December or early January, 1979, before we would receive the money. Mr. Scheifley moved at 7:17 P.M., for the adjournment of the meeting, seconded by Mrs. Durante. Said motion passed unanimously. APPROVED: MAYOR The undersigned is the City Clerk of the City of Delray Beach and the information provided herein is the minutes of the meeting of said City Council of August 16, 1978, which minutes were formally ap- proved and adopted by the City Council on ~, ~., ~/~f . - J- City Clerk NOTE TO READER: If the minutes that you have received are not completed as indicated above, then this means that these are not the official minutes of the City Council. They will become the official minutes only after they have been reviewed and approved which may involve some amendments, additions, or deletions to the minutes as set forth above. - 2 - 8-16-78