Item Q08 Q.8
t, BOARD OF COUNTY COMMISSIONERS
County of Monroe Mayor Sylvia Murphy,District 5
The Florida Keys l'U � � Mayor Pro Tern Danny Kolhage,District 1
�pw° Michelle Coldiron,District 2
Heather Carruthers,District 3
David Rice,District 4
County Commission Meeting
October 16, 2019
Agenda Item Number: Q.8
Agenda Item Summary #6179
BULK ITEM: Yes DEPARTMENT: County Attorney's Office
TIME APPROXIMATE: STAFF CONTACT: Bob Shillinger(305) 292-3470
N/A
AGENDA ITEM WORDING: Approval to exercise the option to purchase the Howards Haven
Trailer Park property, to waive the contract provision requiring the Seller to deliver the property free
of any tenant or occupancy, to fund the purchase using Land Authority revenue in anticipation of
reimbursement by the Florida Housing Finance Corporation through a Community Development
Block Grant — Disaster Recovery, and to execute an affordable housing deed restriction in favor of
the Land Authority.
ITEM BACKGROUND: The County has entered into an Option Agreement to purchase Howards
Haven Trailer Park as an affordable housing site in response to the Board's post-Hurricane Irma
direction to acquire and redevelop trailer parks as workforce housing. The option period expires
March 31, 2020. In order to complete the necessary due diligence activities, it is time to begin
preparing to close the transaction.
Subject to favorable underwriting review, the County has been awarded Community Development
Block Grant — Disaster Recovery (CDBG-DR) funding for land acqusition and construction for this
site. However, the Florida Housing Finance Corporation (FHFC) underwriting review process is not
expected to be complete until March 31, 2020 or later. It is therefore necessary to fund the purchase
with other revenue until the Florida Housing Finance Corporation can reimburse the County. If
CDBG-DR funds are not forthcoming, there would be no reimbursement.
In order to avoid jeopardizing the FHFC financing by displacing the trailer park's existing residents,
staff recommends that the Board opt to waive the contract provision requiring the Seller to deliver
the property free of any tenants or occupancy.
Land Authority Resolution 08-2018 authorizes the Land Authority to pay the County's purchase
price and associated acquisition costs provided the County executes an affordable housing deed
restriction in favor of the Land Authority.
PREVIOUS RELEVANT BOCC ACTION: On December 19, 2018 the Board approved entering
into an Option Agreement to purchase the subject property. On July 17, 2019 the Board approved
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Q.8
the First Amendment to the agreement clarifying that the County's remedies for default include
specific performance and extending the option period to March 31, 2020.
CONTRACT/AGREEMENT CHANGES:
N/A
STAFF RECOMMENDATION: Approval
DOCUMENTATION:
HH-Agreement
HH-FirstAmendment
MCLA-Resol.08-2018
FINANCIAL IMPACT:
Effective Date: None
Expiration Date: None
Total Dollar Value of Contract: N/A
Total Cost to County: N/A
Current Year Portion: N/A
Budgeted: Yes
Source of Funds: 304 Funds infrastructure sales surtax
CPI: N/A
Indirect Costs: N/A
Estimated Ongoing Costs Not Included in above dollar amounts: N/A
Revenue Producing: No If yes, amount:
Grant: No
County Match: N/A
Insurance Required: N/A
Additional Details: N/A
None
10/16/19 NEW COST CENTER ADDED $0.00
REVIEWED BY:
Charles Pattison Completed 10/01/2019 4:17 PM
Bob Shillinger Completed 10/01/2019 4:33 PM
Budget and Finance Completed 10/01/2019 4:52 PM
Maria Slavik Completed 10/01/2019 6:08 PM
Kathy Peters Completed 10/01/2019 6:09 PM
Board of County Commissioners Pending 10/16/2019 9:00 AM
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Q.8.a
OPTION AGREEMENT FOR THE PURCHASE OF LANDS
THIS AGREEMENT is made and entered into this day of �`J9-�� � , 2018, by
and between
Howard's Haven, LLC
(hereinafter "Seller(s)"), for themselves, their heirs, executors, administrators, successors and
assigns, and MONROE COUNTY, FLORIDA (hereinafter "COUNTY").
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WITNESSETH:
1. The Seller(s) hereby grant to the COUNTY the exclusive option to purchase certain lands upon
the terms and conditions hereinafter set forth, for all of the lands and other interests, which lands
shall include all tenements, hereditaments, together with all water and other rights, easements,
appurtenances, and any and all of the Seller's rights in or arising by reason of ownership
thereunto belonging, owned by them, situate and lying in the County of Monroe, State of Florida,
more particularly described as follows; to-wit:
Block 22, Lots 1, 2, 3, and 4, Sands (PB 1-65)
RE# 00302670-000000 and 00302680-000000
The rights being conveyed in this transaction include the rights to 13 residential
dwelling units and 100 square feet of nonresidential floor area exempt from the ROGO
and NROGO permit allocation systems referenced in the December 14, 2017 and July U
27, 2018 letters from the Monroe County Planning and Environmental Resources
Department to Luther Ackiss.
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The consideration for the option granted by this Agreement is $10,000.00 (hereinafter "Option
Payment"). Within five business days of execution of this Agreement by the COUNTY, the
COUNTY shall issue a check in the amount of the Option Payment and forward same to the
escrow agent to hold for the benefit of the Seller(s). The period covered by the option shall
commence on December 27, 2018 and shall expire on December 26, 2019 at 5:00 pm (hereinafter
"Option Period"). The COUNTY shall have the right to exercise the option by providing the
Seller(s) written notice (hereinafter "Option Notice") and to close the real estate transaction at any
time within the Option Period after the expiration or termination of the existing lease between the
Seller(s) and the Federal Emergency Management Agency or any extension of said lease. If the
COUNTY does not exercise its option within the Option Period, then the escrow agent is directed E
to release and disburse the Option Payment to Seller(s) the day after the Option Period expires. If
the COUNTY does timely exercise its option, then the escrow agent shall credit the Option
Payment toward the purchase price paid by the COUNTY at closing.
2. The Seller(s) agree that they have full right, power and authority to convey, and that they will
convey to the COUNTY the fee simple title together with legal and practical access thereto clear, E
free and unencumbered, except subject to the following easements or reservations:
Existing easements for canals, ditches, flumes, pipelines, railroads, public highways and roads,
telephone, telegraph, power transmission lines and public utilities.
The COUNTY, at the COUNTY'S expense, within the time allowed to deliver evidence of title and
to examine same, may have the real property surveyed and certified by a registered Florida
surveyor. If the survey discloses encroachments on the real property or that improvements
located thereon encroach on setback lines, easements, lands of others, or violate any restrictions,
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• Q.8.a
contract covenants, or applicable governmental regulations, the same shall constitute a title
defect.
Seller(s) shall convey a marketable title subject only to the aforementioned liens, encumbrances,
exceptions or qualification set forth herein. Marketable title shall be determined according to
applicable title standards adopted by authority of the Florida Bar and in accordance with law. The
COUNTY shall have sixty (60) days from the date of Option Notice in which to examine title. If title
is found defective, the COUNTY shall, within this specified time period, notify Seller(s) in writing
specifying defect(s). If the defect(s) render title unmarketable the Seller(s) will have one hundred
twenty (120) days from receipt of notice within which to remove the defect(s). The Seller(s) will
use diligent effort to correct defect(s) in title within the time provided therefore, including the
bringing of necessary suits, failing which the COUNTY shall have the option of either accepting
the title as it then is or rescinding the Agreement herein.
3. The Seller(s) further agree not to do, or suffer others to do, any act by which the value or title to
said lands may be diminished or encumbered while this Agreement is pending. It is further agreed
that any loss or damage occurring prior to the vesting of satisfactory title in the COUNTY by
reasons of the unauthorized cutting or removal of products therefrom, or because of fire, shall be
borne by the Seller(s); and that, in the event any such loss or damage occurs, the COUNTY may,
without liability, refuse to accept conveyance of said lands.
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4. The Seller(s) further agree that during the period covered by this instrument officers and
accredited agents of the COUNTY shall have at all reasonable times the unrestricted right and
privilege to enter upon said lands for all proper and lawful purposes, including examination of said U)
lands and the resources upon them. The Seller(s) hereby waive their rights to any and all claims
against the COUNTY, Monroe County, or the State of Florida associated with, or arising from
ownership of, said lands and this waiver shall survive closing.
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5. The Seller(s) will execute and deliver upon demand of the proper officials and agents of the
COUNTY a good and sufficient deed of warranty conveying to the COUNTY a marketable title to
the said lands of such character as to be satisfactory to the legal counsel of the COUNTY and said
deed shall provide that the use, occupation and operation of the rights-of-way, easements and
reservations retained therein, shall be subordinate to and subject to such rules and regulations as
may be prescribed by the COUNTY governing the use, occupation, protection and administration
of lands.
6. The purchase price for said lands and other interests, subject to adjustments and prorations, is
$850,000.00. The COUNTY further agrees that, after credit for the Option Payment, after the
preparation, execution, and delivery of the deed, and after the legal counsel of the COUNTY shall
have approved the title thus vested in the COUNTY, it will cause to be paid to the Seller(s) the
balance of the purchase price. The COUNTY shall pay the following expenses associated with
the conveyance of the property: deed recording fees, settlement fees, abstract fees, title
examination fees, the Buyer's attorney's fees, and title insurance, as well as the prorata share of
prepaid real property taxes allocable to the period subsequent to the vesting of title in the
COUNTY, or the effective date of possession of such real property by the same, whichever is
earlier. The Seller(s) shall pay the expenses of documentary stamps to be affixed to the deed and
real estate commissions, if any. Full possession of the premises shall pass to the COUNTY as of
the date payment is made to the Seller(s) subject only to the reservations stated in Section 2
above.
7. It is mutually agreed that an abstract, title insurance policy or other evidence of title to the property
herein contracted to be sold, satisfactory to the legal counsel of the COUNTY will be obtained by
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the COUNTY at its expense. The Seller(s) expressly agree herein to furnish to the COUNTY any
documents in Seller(s)'s possession establishing evidence of title including, but not limited to,
abstracts, title commitments, title policies and opinions of title.
8. It shall be the obligation of the Seller(s) to pay all taxes and assessments outstanding as liens at
the date title vests of record in the COUNTY, whether or not such taxes and assessments are then
due and payable.
9. It is mutually understood and agreed that notice of acceptance of this Agreement shall be given to
the Seller(s) by mail addressed to the Seller(s) at the following address:
PO Box 430271
Big Pine Key, FL 33043
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and shall be effective upon date of mailing and shall be binding upon all of the Seller(s) without
sending a separate notice to each, except as such obligation may be affected by the provisions of
paragraph 6 hereof.
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10. It is mutually understood and agreed that the COUNTY may assign this Agreement.
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11.. Unless waived by the COUNTY as to one or more existing tenants, the property shall be delivered
at closing free of any tenant or occupancy.
12. Seller(s) shall close any open building permits or code enforcement proceedings prior to closing
and provide proof of same to the COUNTY.
13. The effective date of this Agreement shall be that date when the last one of the Seller(s) and the
COUNTY has signed this Agreement.
14. If the Seller(s) wish to proceed with this transaction, the Seller(s) have until December 4, 2018 to
sign and return this Agreement to the COUNTY. This, Agreement may be executed in
counterparts.
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15. In the event the transaction is not closed within the Option Period, at any time thereafter both the
COUNTY and the Seller(s) shall each have the right to terminate this Agreement by providing
written notice, at which point both parties shall be released of all further obligations under this
Agreement.
IN WITNESS WHEREOF, the parties have hereunto signed their names and affixed their respective
seals.
Seller/ Howard's Haven, LLC
By: Luther S. Ackiss, Manager
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Signature Da e Phone Number
MONROE COUNTY, FLORIDA acting by and through its MAYOR, has executed this Agreement on
behalf of MONROE COUNTY, FLORIDA this 19.t day of A14 , 2018.
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Buyer/ COUNTY: MONROE COUNTY, FLORIDA
KEVIN MADOK, CPA, Clerk U)
By: :mac- 4
Depuy-C erk Sylvi J. Murphy, Mayor a� M o
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ltiwy+.fnn. 11 20�9 - -"Date:
MONROE COUNTY ATTORNEY
A:PRO�/ FOR
EAT ._SHILLING ER,JR.
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Q.8.b
FIRST AMENDMENT TO OPTION AGREEMENT FOR THE PURCHASE OF LANDS
THIS FIRST AMENDMENT modifies that certain Option Agreement for the Purchase of Lands
(hereinafter "Agreement") between Howard's Haven, LLC (hereinafter "Seller(s)") and Monroe
County, Florida, (hereinafter"COUNTY"), dated December 19, 2018.
The parties hereby mutually agree as follows:
0.
1. The COUNTY'S remedy for default on the part of the Seller(s) includes or is specific
performance.
2. The expiration date of the Option Period is hereby extended from December 26, 2019 at
5:00 pm to March 31, 2020 at 5:00 pm.
3. The consideration for said extension to the Option Period shall be $2,500.00, shall be
paid by the COUNTY to the escrow agent within thirty business days of the COUNTY'S >
execution of this First Amendment, and shall be otherwise governed by the same terms
as the Option Payment in the Agreement.
4. The COUNTY will use the subject property for the provision of affordable housing. The
COUNTY may use the subject property as temporary relocation housing only for the
current residents of Howard's Haven while permanent housing is being built. The
COUNTY will not use the subject property as a Recreational Vehicle park.
5. All other provisions of the Agreement shall remain in effect. U)
IN WITNESS WHEREOF, the parties have hereunto signed their 'names and affixed their
respective seals.
Seller/ Howard's Haven LLC
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By: Luther S. Ackiss, Manager
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n ure Date CD
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MONROE COUNTY, FLORIDA acting by and through its MAYOR, has executed t412 Agreerrpt-: E
on behalf of MONROE COUNTY, FLORIDA this IV& day of d-
2019.
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Buyer/ COUNTY: MONROE COUNTY, FLORIDA
KEVIN MADOK, CPA, Clerk
ep lerk Sylvia J. Murphy, Mayor
MONROE OOUN
a APPR0 D TMAMRNEY
TO F M:
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Q.8.c
RESOLUTION NO. 08-2018
A RESOLUTION OF THE MONROE COUNTY
COMPREHENSIVE PLAN LAND AUTHORITY ADDING BLOCK
22, LOTS 1 THROUGH 4, SANDS TO THE ACQUISITION LIST
AS AN AFFORDABLE HOUSING SITE TO BE PURCHASED BY
MONROE COUNTY AND APPROVING ACQUISITION FUNDING
SUBJECT TO CONDITIONS.
CL
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WHEREAS, Block 22, Lots 1 through 4, Sands (RE #00302670-000000 and 00302680-000000),
is a 20,000 square foot site located on Avenue C on Big Pine Key (hereinafter "Subject
Property"); and
WHEREAS, Monroe County is considering entering into an option contract to purchase the
Subject Property for an option fee of$10,000 and a purchase price of$850,000; and
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WHEREAS, Monroe County intends to submit an application for a Community Development
Block Grant — Disaster Recovery (CDBG-DR) grant to fund the purchase and redevelopment of
the Subject Property; and
WHEREAS, the Monroe County Comprehensive Plan Land Authority (hereinafter "Land
Authority") desires to assist Monroe County with the acquisition of the Subject Property; and
WHEREAS, on June 27, 2018 the Land Authority Advisory Committee voted 3/0 to approve
adding the Subject Property to the Acquisition List as an affordable housing site; and
WHEREAS, on October 31, 2018 the Land Authority Advisory Committee voted 5/0 to approve
funding to the degree necessary until December 31, 2019 for either Monroe County or the
Monroe County Housing Authority to purchase the Subject Property; NOW, THEREFORE,
BE IT RESOLVED BY THE MONROE COUNTY COMPREHENSIVE PLAN LAND AUTHORITY:
Section 1. The Subject Property is hereby added to the Acquisition List as an affordable
housing site to be purchased by Monroe County. 00
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Section 2. Land Authority funding toward Monroe County's purchase of the Subject Property is 00
hereby approved as follows:
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A. The Land Authority is authorized to pay Monroe County's $10,000 purchase option fee.
B. The Land Authority is authorized to pay Monroe County's $850,000 purchase price and
associated acquisition costs for the subject property to the degree said acquisition costs are
not funded by the CDBG-DR grant.
C. At closing, Monroe County shall execute an instrument in favor of the Land Authority
restricting the Subject Property to affordable housing. E
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D. The funding commitments in this resolution shall expire on December 31, 2019.
PASSED AND ADOPTED by the Monroe County Comprehensive Plan Land Authority at a
regular meeting on this 1901 day of December 2018.
Chairman Heather Carruthers Yes
CL
Vice Chairman David Rice Yes 0
Commissioner Michelle Coldiron Yes CL
Commissioner Danny Kolhage Yes
Commissioner Sylvia Murphy Yes (L
A MONROE COUNTY COMPREHENSIVE
PLAN LAND AUTHORITY
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Charles G. Pattison Chair n ea er Carruthers
0
Executive Director
Approved as to form and legality
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Adele V. Stones 0
0
A
X
00
00
R
0
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