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Item N10 N.10 BOARD OF COUNTY COMMISSIONERS County of Monroe Mayor Heather Carruthers,District 3 IleOI1da Keys Mayor Pro Tern Michelle Coldiron,District 2 - p �pw° Danny L.Kolhage,District I aµ David Rice,District 4 Sylvia J.Murphy,District 5 County Commission Meeting December 11, 2019 Agenda Item Number: N.10 Agenda Item Summary #6359 BULK ITEM: Yes DEPARTMENT: County Attorney's Office TIME APPROXIMATE: STAFF CONTACT: Bob Shillinger(305) 292-3470 9:15 A.M. AGENDA ITEM WORDING: Update on Monroe County's purchase of the Conch Trailer Court property on Conch Key for affordable housing. ITEM BACKGROUND: The County has an option agreement to purchase the Conch Trailer Court property on Conch Key for affordable housing. The target closing date for this transaction is on or before December 26, 2019. Staff will brief the Board on the status of this transaction and request direction should there be any matters requiring Board action in preparation for the closing. PREVIOUS RELEVANT BOCC ACTION: On 1/23/19 the Board approved entering into an option agreement to purchase the property. On 7/17/19 the Board approved the first amendment to the option agreement clarifying the County's remedies for default include specific performance. On 10/16/19 the Board approved exercising the purchase option, waiving the requirement for the Seller to deliver the property free of tenants, and funding the purchase using County infrastructure sales tax revenue in anticipation of reimbursement by the Florida Housing Finance Corporation. On 11/20/19 the Board approved expending up to $400,000 on closing expenses and relocation expenses for up to 11 eligible households. CONTRACT/AGREEMENT CHANGES: N/A STAFF RECOMMENDATION: Approval DOCUMENTATION: ConchTrailerCourt-FirstAmendment&Agreement FINANCIAL IMPACT: Packet Pg. 1221 N.10 Effective Date: December 11, 2019 Expiration Date: None Total Dollar Value of Contract: $1,000,000.00 plus estimated closing costs of$120,000.00 Total Cost to County: Approximately $1,120,000.00 Current Year Portion: Approximately $1,120,000.00 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: $1,000,000.00 plus estimated closing costs of$120,000.00 None 12/11/19 316-23013 - LAND AUTHORITY $1,120,000.00 PE1602 REVIEWED BY: Charles Pattison Completed 11/25/2019 1:50 PM Bob Shillinger Completed 11/25/2019 3:07 PM Budget and Finance Completed 11/25/2019 4:01 PM Maria Slavik Completed 11/25/2019 4:23 PM Kathy Peters Completed 11/25/2019 4:27 PM Board of County Commissioners Pending 12/11/2019 9:00 AM Packet Pg. 1222 N.10.a FIRST AMENDMENT TO OPTION AGREEMENT FOR THE PURCHASE OF LANDS 0 THIS FIRST AMENDMENT modifies that certain Option Agreement for the Purchase of Lands (hereinafter "Agreement") between JDLC, Inc., a New York corporation (hereinafter "Seller(s)") and Monroe County, Florida, (hereinafter "COUNTY"), executed by the Seller(s) on January 7, 2019 and executed by the COUNTY on January 23, 2019. a� The parties hereby mutually agree as follows: 1. The COUNTY'S remedy for default on the part of the Seller(s) includes or is specific performance. 2. All other provisions of the Agreement shall remain in effect. 0 IN WITNESS WHEREOF, the parties have hereunto signed their names and affixed their U) respective seals. Seller/ JDLC, Inc., a New York corporation CL By: Jeff Olson, President r f.. t brn c rn Signatu Dat r '::70 �. MONROE COUNTY, FLORIDA acting by and through its MAYOR, has execute hTs A r on behalf of MONROE COUNTY, FLORIDA this 17,tA- day of o 2019. { Buyer/ COUNTY: MONROE COUNTY, FLORIDA E KEVIN MADOK, CPA, Clerk 06 By: Clerk Sylvia J. Murphy, Mayor Ur �a e J U +�raD CCU-" I— MONROE COUNTY ATTORNEY APPRO AS TO IORM: g, R ER .SHILLiS��"`ER,JR. pate COU Packet Pg. 1223 OPTION AGREEMENT FOR THE PURCHASE OF LANDS THIS AGREEMENT is made and entered into this day of 1 �� , 2019 by and between JDLC, Inc., a New York corporation �s (hereinafter "Seller(s)"), for themselves, their heirs, executors, administrators, successors and assigns, and MONROE COUNTY, FLORIDA (hereinafter"COUNTY"). WITNESSETH: �s 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, U) 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: All of Lot 13, the Easterly 30 feet of Lot 14, the Easterly 39 feet of Lot 30, and all of Lot 31, Conch Key(PB 2-130), more particularly described in Exhibit A. RE#00385780-000000 The rights being conveyed in this transaction include the rights to 12 permanent residential dwelling units exempt from the ROGO permit allocation system referenced in the December 18, 2007 letter from the Monroe County Planning and Environmental Resources Department to Joel Reed. Seller(s) shall retain the rights to the 5 transient residential units referenced in said letter. 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 E escrow agent to hold for the benefit of the Seller(s). The period covered by the option shall commence on January 30, 2019 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. If the COUNTY does not exercise its option within the Option Period, then the escrow agent is directed to release and disburse the Option Payment to Seller(s) 5 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. Ur 2. The Seller(s) agree that they have full right, power and authority to convey, and that they will 0 convey to the COUNTY the fee simple title together with legal and practical access thereto clear, 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 5 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, 1 Packet Pg. 1224 0 contract covenants, or applicable governmental regulations, the same shall constitute a title defect. 0 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 0 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 M 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 0 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. 4- 0 3. The Seller(s) further agree not to do, or suffer others to do, any act by which the value or title to U) 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. 0 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 lands and the structures 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. 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 $1,000,000.00. 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 Ur 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 0 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 °E 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 2 Packet Pg. 1225 0 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. 0 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. a� 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: 0 1241 Route 9P with a copy to: Josh Mothner Saratoga Springs, NY 12866 Coldwell Banker Schmitt Real Estate josh@soldinthekeys.com U) 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. 10. It is mutually understood and agreed that the COUNTY may assign this Agreement. 0 U 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. 0 12. Within 60 days of the COUNTY giving Option Notice, Seller(s) shall remedy all exigent health and safety code violations on the property identified by the COUNTY. Seller(s) shall close any open building permits or code enforcement proceedings prior to closing and provide proof of same to the COUNTY. Completion of these activities are conditions of the COUNTY'S obligation to close. 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 January 8, 2019 to sign and return this Agreement to the COUNTY. This Agreement may be executed in 06 counterparts. [The remainder of this page is intentionally blank.] ur �s a� 0 U 3 Packet Pg. 1226 0 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. 0 �s IN WITNESS WHEREOF, the parties have hereunto signed their names and affixed their respective seals. Seller/ JDLC, In a New York corporation By: Jeff - on,4 ident Signatu D to Phone Number c� MONROE COUNTY, FLORIDA acting by and through its MAY , has executed this Agreement on 0. behalf of MONROE COUNTY, FLORIDA this 7.3A-t day of , 2019. 0 Buyer/COUNTY: MONROE COUNTY, FLORIDA 0 0 KEVIN MADOK, CPA, Clerk <D'eputyC�l��k Syl a J. Murphy, Mayor (Sea� �� Date: Z3 2a1 q E 06 MONROE COU AP ORNgY TO ORM: Ok3ER .-SML ER,JR. Date COULL i a . Chi ca 4 Packet Pg. 1227 N.10.a 0 EXHIBIT A 0 Pared U. All of Ut 13,the Ewterly 30 feot of Lot 14,the Rastaerly 39 t of Lot 30 and AM of Lot 31 of CONt9 XZY,being a +eombination or the following two Parma of Laud:A Part of mats 13 and 30 sail All taf Lot 31 of CONCR XEY,as � recorded in fiat Dook 2,Page 130,of the Public lards of Monroe County,Florida,and ling nwe,p►artiniarig described by mew awl bounds as followssCmumenemg at the Northtm corner of Lot 31,said torner to be awn as the Point of Begivaing of the Tract of Laand. hereinafter descd'b4 burr North 61P 4Y West,srlong the Southerly � Right-*�Wqy ghat of North+Conch.Avennc,131M feet thentm bear South 23"1.SI Wtst,70 feet;thwet bear!North 6e 4V We O,39 fu#theme bear South 23° lac WeM 70 feet to the Northwesterly Right-ofWalr lute of South Conch Avenue them bear Sow+660 48*fit,36=feet to the Northerly Right-oMay!late of U.S,Rjoway No.1;thence � bear North 6V 09 Ezs4 along the Nordmiy Rigkt-of-Way gate of U.S. Highway No. 1, 19US t' t; theum In a 4- NOrWrly fttdistis, 7.48 fae4 back to the Point of.BtgionlaZANDA Parew of Lad 14 ta,Part of Lob 13 and 14 of CONCH XZY,as recorded In Pht Book 2,Page 130, of the Public records of Monroe Coustw l rbia,and beft U) mart particularly describe4 by mates and boumb as follows: Cmweneing at the Southwest corner of Lot 14,bear � South W 4511 l t,along the Northerly Ptight-ofWay tine+oaf'South Cam Avenue*'76led to the Point of Iitgkmkg of Go Pocel of Land hereinafter describes!;from said Point of De&dw&bear North 231 VP FAd,fit#feet;them hear South 6ir V Ust 52 feet;them bear South 2-T 1V Vast,70 fed to the Northerly RighW-Way line of South Coach Avenue thence bear North W 43'Wet,,along the Northerly NW-of-Way lint of South Conch A.veens,SZ fret back to tho Twat orBefflanins:, 0 0 0 cm 0 Packet Pg. 1228