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11-01-63SpMtg 491 NOVEMBER l, 1963 A special m~eting was held in the Council Chamber~ at 10:00 A.M., Friday, November leto 1963, with Mayor Walter Dietz in the Chair, City Manager Robert J. Holland, City Attorney John Ross Adams, and Councilmen A1 C..Avery, Emery J. Barrow, ~eorge Talbot, Jr. and Oliver W. Woodard, Jr., being present .... Mayor Dietz called the meeting to order and announced that ~ame had been called for the purpose of further conbideratio~ relative to providing additional parking facilities in the central business area and fo= any other business which.may come before the meeting. An opening prayer was delivered by City Clerk Worthing. Mayor Dietz suggested, that the entire parking outline as studied be explained by Mr. Woodard and no vote would be in order until the Council is satisfied that everything has been explore~. In reviewing the parking situation, Mr. Woodard ~efeFred to a report authorized by the Council in 1955 on traffic and parking that the City paid $3,500.00 for, and as a result of that report had floated a $110,000.00 bond issue to provide a parking lot and at the rate of 3% the City .to date had paid $17,490.00 interest on said bond issue. Mr. woo~ard also referred to a report the Council had author- ized at a cost of $10,000.0~ prepared by Mr. George Simons, it being a two volume report which is a comprehensive City plan and .in- cludes all of the various economic and social factors and projected growth of the City of Delray Beach. I~ was .s~at~d'by Mr~ wood&rd that th~ plahs:in that reporthad not been carried out. Mr. Woodard said the Atlantic Avenue business people are con- fronted with economic growth primarily from shopping centers, and that today there ~re well located, available properties the City can obtain and use for parking, and that the committee consisting of James~ Sinks,'LeRoy Merritt, Kenneth Ellingsworth, James Love, City Manager Holland, Police Chief Croft, Fire Chief Gregory and himself appointed on May 2?th, 1963 by the Council had studied this situation thoroughly and had presented proposals for exchange of properties to the Council for their consideration. The Traffic and Parking Committee feels the City-owned property at S. E. 10th Street is of no benefit to the City and serving no purpose and as long as an equitable trade could be made, assets that are not being used could be put to beneficial use and it would be beneficial to the City at this t/~e to authorize an exchange of prol potties. Mr. Woodard read the following letter from the Planning Board, dated October 29, 1963, as a result of the Council having referred this item to their Board: "The Planning and Zoning Board have examined the proposed'matter in regard to solving the parking problem east of 6th Avenue and make the following recommendations; In order to give the City sufficient time to study the entire Atlantic Avenue parking problem from Swinton Avenue to the ocean which would include additional detail study on the proposals already m.~de, including the King proposal and the Brown-Dodson proposal, we recommend, as a temporary solution, lease the Vos property for one year with a non-cancellation clause until May 1st, 1964 and that all business houses in the area between 6th Avenue and Patio Delray insist that all personnel park in the parking lot or at i92 least one block from Atlantic Avenue. A'survey ~ade by this Board findsthSt there are .seventy-seven employees.and employees parking in this The Boer~ also feels it is not the entire responsi- bility of the City to provide parking for the merchants andtheir employees in other words some of the cost should be borne by the landlordsor property owners. This recommendation was'approved unanimously by the Plannlng Board." Mr. Woodard said he concurred with what the Planning Board had "~to say-but didn't think it'had been carried far enough, a'nd' referred to'the City budget which is supported fifty per cent by ~eal estate taxes, and stated'that the other fifty per cent of'that budget comes from the economic stability of DelraY Beach, from licenses, fees, utility and excise taxes, etc. Mr;'woodard referred to the amount of money that is anticipated from the: Cigarette Taxalone and said that is the reason he feels the City can, on a sound basis, proceed to exchange its City-owned propertyand.pay for the cost of paving the parking lots, because of the. additional revenues into the City funds from sources other than real estate tax. Mr. Woodard said he felt the things'the Committee is recommend- i~g at this time should be put into effect and that these measures be incorporated in an over-all plan and program that would be a final solution to the existing parking problems. Mr.. Woodard mentioned the establishment of a Parking Au~h.ority .in which the City, property owners and business people could all contribute to the solution of the parking problem,.'but that same would have to-be created by the State Legislature which does not convene agai~ u~til 1965. Mr. Woodard said the three specific alternatives'that have been brought before the Council in a temporary solution to the' parking problem, which the committee feels are sound, would be the exchange of two pieces of City property and the investigation of the purchase of a third piece of property and in the meantime the City could lease the third piece of property with the hope that it 'could be purchased. this property being the north half of Block 1'24 owned by Mr. Robert A. Vos. Further, that if this piece of property was obtained he would like the tennis courts moved to that location which is directly W~st of the City Park and that it could also be used for parking. Mr. Woodard read the following proposed lease that had been prepared by City AttOrney Adams with the intention of forwarding same to Mr. Vos for his consideration. Mr. Woodard rea~ and commented on the following letter of October 5th and the proposal for exchange also dateO October 5th, from the GraceyBrothers= "Attn= Mr. O. W. Woodard, Jr. Chairman Off Street Parking Committee Re= Proposed exchange of properties in Block 109 for City property on the west side of $. E. 5th Avenue south of 10th Street, to a depth of 150 feet measured from S. E. 5th AvenUe. ~93 "Pursuant to the request of. both you and Mr. Ken Ellingeworth we are, as agents for Mess~s. Earl G. Brown, Curtis H. Dodson, FrankX. Marino and J~ LeRoy Croft, submitting to the City of Delray Beach, Florida, a proposal whereby the City may acquire exceptionally fine land forparking purposes 'in exchange for City owned property at the southwest corner of S. B. 5th Avenue and S. E. 10th Street in the City of Delray Beach. Attached hereto is a detailed proposal for the exchange and asketch showing the subject properties in Block 109. Of the above ,named property owners only Messrs. Brown and. Dodson will consider available City property in exchange for their Highway frontage in Block 109. Messrs. Brown and Dodson will~ therefore, arrange to purchase the Marino and Croft pro- perties and either convey them to the City or have t~em con- veyed directlybyMessrs. Marino and Croft. It is usual in the exchange of rea~ estate for the broker~who brings about the transaction to receive full brokerage com- mission from both parties to.the exchange, the commission being based upon the market values of the respective lands. Due to the public service nature'of this transaction, Gracey Bros. has agreed to waive commission on the lands to be conveyed by the City of Delray Beach and will receive commissions.'only on the properties to be conveyed to the City. However, as the City will receive lands which are appraised-for a value greater than the property to be conveyed by the City, it is a condition of~che exchange that the City pay $690.00 of the commission due Gracey Bros. by Messrs. Brown and Dodson and handle the legal details through the City Attorney. The appraisal referred to in the preceding paragrap~ is the actual market Value appraisal made by the Eric Ahrenborg Co. for the City Of Delray Beach in 1961, and not assessed val- uations. As the Eric Ahrenborg Co. did. not appraise, the land south of 10th Street, the valuation assigned that property is based upon the Eric Ahrenborg Co. appraisal north of 10th Street which is obviously, if anything, of greater value. know of no method more fair or impartial of comparing the properties involved in the exchange. It should be pointed out that the Marino property is leased on a month to month basis. At least 30 days~ notice must be given the tenant in order to terminate this lease. It is also important to note that the Marino offer to sell at ~12,500 will expire November 30, 1963. As soon as the City agrees to the proposed exchange an appro- priate formal contract can be prepared and executed by parties concerned. In the meanwhile, it must be understood that prior sale of any of the. lands involved would nullify the entire proposal. For this reason it is suggested that the City of Delray Beach reach its decision as quickly as is. reasonably possible. We are sure it is not necessary for us to elaborate upon the many advantages to the City of the land it will receive. We know of no other way in which the City could acquire, for such reasonable consideration, parking on both the north and south bound lanes of U. S. Highway %10 so near the heart of the Atlantic Avenue business district. This exchange will also make possible the highest and best use of the City 40~ lot on §th Avenue which, until now, baa been of but little use to the City due to its small frontage. -3-: 11-1-63 "The writer will be happy to meet with the City Council, City A~torne~, or'other representatives of the City at any time." · - '.."PROPOSAL FOR EXCHANGE OF CITY PROPERTY ON S. E. 5th AVENUE. SOU~H OF 10th STREET FOR PARKING AREAS ON S. E. 5th and 8th AVENUES SOUTH OF ATLANTIC AVENUE. Messrs. Earl G. Brown and Curtis H. Dodson propose to convey or have conveyed to the City of Delray Beach the following properties: 1. 45.53' of frontage on the east side of S. E. 5th Avenue immediately south of the City 40' parking lot~ described as, the S. 24' of Lot 8 and all of Lot 9, Block 109, less the south 42.$' thereof~ subject to an easement for ingress and egress over the north 11 feet of the south 53.5 feet of said Lot 9. This easement is for the benefit of the land to the south now leased t~ County Title & Abstract Co. 2. The Marino property having 43.2' of frontage on S. E. 6th Avenue, described as all of Lot 16, Block 109. 3. The Croft property having 26.33' of frontage on S. E. 6th Avenue, described as, the N. 26.33' of Lot 17, Block 109~ subject to an easement for in- gress and egress over the south 11' thereof. This easement shall be for benefit ofthe adjoining land to the south. In exchange the City of Delray Beach is to convey to. Messrs. Brown 'and Dodson that property belonging to the City lying to the south of S. E. 10th Street and to the west of S. E. 5th Avenue having north-south dimension of approximately 306~ and depth of 150' from S. E. 5th Avenue to the west. COMPARATIVE VALUES BASED UPON MARKET VALUE APPRAISAL MADE FOR THE CITY OF DELRAY BEACH BY ERIC E~REEBORG CO. IN 1961 PROPERTIES TO BE CONVEYED TO CITY OF DELRAY BEACH Property ~1 (Brown & Dodson) 45.53' ~ $228 S10,380.84 Property ~2 (Marino) 43.2' ~ $258.75 $11,178.00 Dwelling 3~358.00 14,536.00 P,Fopert¥ %9 (Croft) ~.~33' ~ $258.75 6,812.89 ~ TOTAL APPRAISED VALUE $31,729.73 Less Dwelling .,: 3~358.00 PROPERTYTO BE CONVEYED BY CITY OF DELRAY ,BEACH TO MESSRS. BROWN a DODSON. Land o~ west side of S. E. 5th Avenue south of 10th Street, based ~ appraised values of S. E. 5th Avenue frontage -4: 11-1-6~ "north of 10th Street adjusted for 150' depth. N. 50' (inCluding 30%"corner influence) ~'$111.15 $ 5,557.50 256' inside frontage ~ ~85.50 2ii880.00 TOTAL APPRAISED LAND VALUE $ 27,437.50 RECAPITULATION Appraised value of property to be conveyed to City $31,729.73 Appraised value of property to b'e con- veyed to Messrs. Brown and Dodson 27f437.~0 GAIN TO CITY IN PROPERTY VALUE $ 4,292.23 Less appraised value of dwelling 3r~58.00 GAIN TO CITY IN LAND VALUE $ 934.23 CONTRACT BASIS OF EXCHANGE Properties t9 b9 conveyed to City Property %1 (Brown & Dodson) 45~53' '~ $330 fr. ft. ($300 fr~ ft.. price paid plus 10% costs and carrying charges) $15,024.90 Property%2 (Marino) Actual cost to Brown & Dodson 12,500.00 Property %3 (Croft) 26.33' ~ $250 Actual cost:to Brown & Dodson 6i582.50 $34,107.40 Properties to be conveyed by City t? Brown~~ Dodson N. 100' (corner) ~ $150 fr. ft. $15,000.00 Next 125' ~ $100 fr. ft. 12/500.00 Remaining 81' ~ $75. f~. ft. 6r075.00 $33;575.00 Gracey Bros., Realtors who brought about this exchange, will be paid commissions by Marino and Croft in their sales. Flat fee of $1,380 agreed upon for exchange of BrOwn - DOdson pro- perty to be divided equally between City of Delray Beach and Messrs. Brown and Dodson. OTHER TERMS AND CONDITIONS OF EXCHANGE 1. As the property to be conveyed to Messrs. Brown and Dodson by the City of Delray Beach is unplatted, the City shall furnish a certified survey of this land. The transaction shall be subject to the survey showing north-south dimensions ofnotless than 305 feet. 2. Each party shall furnish a Title 'Insurance policy to the .other on .the lands~it conveys. "3. The entire transaction is subject to simultaneous closing between the four o~nerships involved. Deeds to the City shall be Special Warranty Deeds and shall, at the option of Messrs. Brown and Dodson~ be. either from Messrs. Brown and Dodson or direct from the various owners to the City. 4. All contracts, deeds and other legal documents shall be prepared and handled by the City Attorney at the City's expense." Mr. Woodard then read and commented on the following letter and fact sheet from Mr. Ray Bonne11 concerning the King property that he and H, V. Dally, Inc. had been working on: "I am enclosing herewith a sketch showing the'parking plan for the King property. You will notice-that~by parking the cars with the lines running from east to west, we can get six to eight more cars, provided the alley is used as a turn around. We do not recommend this because the plan as laid out here and approved by Elliott Gross & Associates shows ninety two cars and is much more practi~al parking lot than it would be with the lines ru~ning east to west. I am attaching also a reproduction of the City map showing the location of the property which consists of 223.9 ft. approximately on U.S. Highway %1 north.bound, running back to the alley 130 ft. We are also enclosing a survey map showing the location of the property on 10th Street between Federal Highway north and Federal Highway south. The property on Federal Highway south of course, is ten blocks south of the main street in Delray, and as you know, the value of property depreciates rapidly as you go south from Atlantic AvenUe. In fact, the last sale of any size made in that locality wes made by Bonne11 Realty, Inc., and .consisted of 175 ft. run- ning from the corner of 9th street south on the east side of the Highway. This sale was at $90.00 a foot. Doubling that for the City property, would be $i80.00 a foot, having two frontages and 225 ft. deep. The last property sold near Atlantic Avenue was that on which the County Title and Abstract building now stands, and that was sold at $300.00 a foot. That property by the way, was exactly the same location from Atlantic Avenue as the King property, and the King property at $300.00 a foot would be valued at $67,170.00, which shows the difference ~ physical value on the basis of recent sales which are the only accurate measurement of value of real estate, of $26,670.00. Add to this the fill necessary to bring the City property up to grade which.haS, been estimated at a minimum of:IS,000 yards, at a cost of 50¢ a yard only, would be an additional expense of $7!S00.00. It is my studied opinion that the City is getting very much the-best end of this deal aa far as physical values are con- cerned. Mrs. King will in all probability immediately, develop the pro- perry south of 10th Street which will immeasurably add to the City's ~ax ro11. I trust that this memorandum answers the questions you have iN mind, and if not, I will be glad to embellish this report any way you feel necessary." .-6- 11-1-63 497 Mr. Woodardsaid the two realtors involved in this proposed transaction were so interested in this Project that,~hey.had agreed to waive'their commission of $6,250.00 so there would be,no charge to the City in this transaction. During discussion it was made known that if these =esl estate transactions were made there would be four bui. ldings tha~ would have to be removed. Ther~ was discussion about the location of two of the proposed parking areas in relation to each other and the best access to them. Following lengthy general discussion, Mr. Talbot moved that the Council accept the three propositions presented by Mr. Woodard, speCifically the composite piece of property, the King piece of pro- perty and the Vos piece of property and that all of the expense come from the new capital improvement· fund, the motion being Seconded by Mr. Avery. Mayor Dietz said it was his understanding that if the City leased the vos property and then decided to purchase'same, the $1,000.00 paid on the lease w0uld apply on the purchase price, and City Clerk Worthing said that was true. City Attorney Adams said he felt it was alright to generally authorize this but all of the parties would have to reduce the terms and conditions to writing. Upon call of roll to accept the three propositions, the motion carried unanimously. Concerning the Vos property, City Attorney Adams said the lease submitted was in accordance with a letter the City Clerk had received, and Mayor Dietz asked if he could have a motion that the-City Attorney be authorized to'draw·up a lease agreement, in accord&nce with what ,the Council bps understood here today, and it be submitted to Mr. Vos and if he is agreeable to that this motion will have okayed the Mayor the right to sign.the lease, it being so'moved by Mr. Talbot. The motion was seconded by Mr. Barrow and carried unanimously. City Attorney Adams advised as follows: "On the other two pieces' of property, there is a Cha~ter requirement that we have to. publish the terms and conditions which we have to reduce to writing first. Then we publish that for two weeks before theResolution can be prepared." Mayor.Dietz said if the Vos property is obtained then it,can be put to use while the legality of the other two properties is being taken care of. Concerning authorization for publishing the terms and conditions of the transfers of property, City Attorney Adams commented: "If I feel, when we have drafted'this, if I feel that all the terms and conditions are agreeable, then we could go on and publish it and pass a Resolution authorizing it." It was so moved byMr. Avery. Mayor Dietz explained that the motion meant that the City Attorney be authorized to proceed as soon as it was legally.possible to do so. The motion was seconded by Mr. Talbot and carried unanimously. City Attorney Adams was advised that there are tenants on both pieces of property who are subject to thirty days notice, and Attorney Adams advised the Council that it would probably be sometime in December before these transactions could be completed. City Clerk Worth~ng called Council attention to twelve letters he had received from property owners East of the Intracoastal Water- 498 way stating they appreciated what the Council is doing and asking that all possible be done to relieve the condition there as pertains to the sanitary sewer instaXlation. - Mr. Avery said .the Council had taken positive action concerning clean-up, etc., on Wednesday night and suggested that Mr. Woodard reply to each one of these letters. Mr. WoOdard said he would personally inspect each of the areas referred to in the letters and answer same. Mayor Dietz said he felt it ~a~ ti~e, if a contractor does not move, that the ~ncilby certifi~d.mail declare him.i~ defaul~ and notify the Bonding Company, and he believed that would get action. Mr. WoOdard informed the Council he had spent several hours with the contractors yesterday and that he and the City Manager have plan- ned a tour of inspection of the sewer project this afternoon, further, that he and the City Manager plan to tour and inspect the entire pro- ject at least twice a week and keep the pressure on the engineers toward getting the work accomplished. Mr. Woodard informed the Council that some members of the Planning Board desire to investigate further the feasibility of a Parking Authority, and asked if the Council had any objection to that possibility being further investigated. Mayor Dietz. said he felt it would be alright for them to proceed with same as a study only and not with the thought that the Council would take any action on same, to which other Councilmen express,d agreement. Mr. Talbot said as far as he was personally concerned he ' did not intend to approve of any payments to the sewer project con- tractors submitted to the Council on any work ~hat is done or pro- posed until the streets are in shape. Mayor Dietz reported that Mr. Daniel Neff had Btud~ed thesewer. contract very carefully and says that if th~ Council.takes some action they will get action. City Manager Holland commented as follows: "I understood Wednes- day night at the~ Council meeting when I requested Mr. Woodard remain on this Board, ! feel that if he conti~ues in his capacity there, with the program we have set up now that he and I both agree With, also the resident engineer, that there will be no digging until they clean up and wi11 be the answer to get out and be situated by December first, except in one short session of time, agreeing with the con- tract." Mr. Nathan Sharp informe~ the Council that establishment of a Parking Authority was an excellent idea ae the town would someday probably become large enough to require further parking provisions 'and a PaTking Authority could do some financing if it became necessary. City Clerk worthing informed the Council that the next regular meeting would be held on Tuesday, November 12t~ inasmuch as Monday is a holiday. Mr. Woodard moved that the regUlar Council meeting of November llth be changed to November 12th, the motion being seconded by Mr. Barrow.and unanimously carrie~. Mr. Jim W~sOn, Chairman of the ~erchants committee of the Chamber of Commerce, said they were deeply appreciative and grateful for the fine constructive action taken, this morning concerning park- ing, and the merchants would like to go on record as being most 11-1-63 appreciative of the fine job that Mr. Woodard has done" . The meeting adjourned at 11:40 A.M. by order of Mayor Dietz. R. D. ,WORTHING City ~Clerk APPROVED = MAYOR