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Item C3 lAND AUTHORITY GOVERNING BOARD AGENDA ITEM SUMMARY Meeting Date: January 18, 2001 Bulk Item: Yes No X Department: Land Authority Agenda Item Wording: Approval of a contract to purchase 629 Caroline Street in Key West In partnership with the Bahama Conch Community Land Trust. Item Background: The City of Key West has nominated this five-apartment conch house for purchase by the Land Authority in partnership with the Bahama Conch Community Land Trust (BCCL T) as an affordable housing site. The property is encumbered with a life estate in favor of Auwina Weed, who presently lives in one apartment and manages the other four apartments for the overseas owner. Following acquisition of the property, Ms. Weed has agreed to continue serving as the property manager. The proposed sequence of events for this acquisition is as follows: 1) the Land Authority will purchase the property, subject to Ms. Weed's life estate; 2) at closing, the Land Authority will convey the property to BCCL T and impose affordable housing deed restrictions; 3) Ms. Weed will serve as BCCL T's on-site property manager, receive title to the structure from BCCL T, and enter into a ground lease with BCCL T requiring that she maintain the structure and rent out four of the apartments as affordable housing; and 4) upon Ms. Weed's death, title to the structure will revert to BCCL 1. The Board's action on this agenda item will only approve step 1 and the closing will be contingent upon additional Board action at a future date approving conveyance of the property to BCCL 1. Funding for this purchase will come from the tourist impact tax collected in Key West. The property's tax folio number, purchase price, and closing costs are included in the agenda packet spreadsheet. Advisory Committee Action: This item will be considered at the January 11, 2001 Advisory Committee meeting. Previous Governing Board Action: On February 10, 1999 the Board approved adding this property to the Acquisition List. Staff Recommendation: Approval. Total Cost: $ 373,881.00 Budgeted : Yes No Cost to land Authority: $ 373,881.00 Executive Director Approval: OMB/Purc~ _ ~.~ 1-~ ark J. Rosch Risk Management Approved By: Attorney ~ Documentation: Included: X To Follow: X Not Required: Disposition: Agenda Item LA #3 Property 629 Caroline Street RE #00000920 Storm van Leeuwen Purchase Price $370,000.00 PURCHASE CONTRACTS 01/18/01 Envr. Audit, Survey or Clean-up N/A Title Insurance $2,025.00 Attorney Fee $1,850.00 Recording Fee $6.00 Acquisition Total $373,881.00 RESOLUTION NO. UO-J8 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF KEY WEST, FLORIDA, NOMINATING TO THE MONROE COUNTY LAND AUTHORITY FIVE PROPERTIES FOR AFFORDABLE HOUSING; PROVIDING FOR AN EFFECTIVE DATE BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF KEY WEST, FLORIDA, AS FOLLOWS: section 1: That the following five properties are hereby nominated on behalf of the Bahama Conch Community Land Trust for consideration by the Monroe County Land Authority for purchase for affordable housing: 629 Caroline street, 907-909 Emma Street, 315 Virginia Street, 1018 White Street, and 812 Carsten Lane section 2: That this Resolution shall go into effect immediately upon its passage and adoption and authentication by the signature of the presiding officer and the Clerk of the Commission. Passed and adopted by the City Commission at a meeting held this 19TH day of JANUARY , 2000. Authenticated by the presiding officer and Clerk of the commission on JANUARY 20 , 2000. Filed with the Clerk , 2000. AGREEMENT FOR THE PURCHASE OF LANDS THIS AGREEMENT is made and entered into this and between day of , 2000, is by Willem Storm van Leeuwen hereinafter style the Seller(s), for themselves, their heirs, executors, administrators, successors and assigns, and the MONROE COUNTY COMPREHENSIVE PLAN LAND AUTHORITY (hereinafter, "Land Authority") acting by and through the Chairman of the LAND AUTHORITY. WITNESSETH: 1. In consideration of One Dollar ($1.00) in hand, paid by the LAND AUTHORITY, the receipt of which is hereby acknowledged, the Seller(s) agree to sell to the LAND AUTHORITY certain lands upon the terms and conditions hereinafter set forth, and for the price of $370,000.00 for all of the lands and other interests, which lands shall include all tenements, hereditaments, together with all water and other rights, easements and appurtenances thereunto belonging, owned by them, situate and lying in the County of Monroe, State of Florida, more particularly described as follows; to-wit: 629 Caroline Street in Key West, particularly described in Attachment A RE# 00000920-000000 2. The Seller(s) agree that they have full right, power and authority to convey, and that they will convey to the LAND AUTHORITY 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 LAND AUTHORITY, at the LAND AUTHORITY'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, 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 LAND AUTHORITY shall have sixty (60) days from the effective date of this contract to examine title. If title is found defective, the LAND AUTHORITY 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), failing which the LAND AUTHORITY shall have the option of either accepting the title as it then is or rescinding the contract herein; thereupon the LAND AUTHORITY and the Seller(s) shall release one another of all further obligations under this Agreement. The Seller(s) will, if title is found unmarketable, use diligent effort to correct defect(s) in title within the time provided therefore, including the bringing of necessary suits. 1 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 LAND AUTHORITY shall have sixty (60) days from the effective date of this contract to examine title. If title is found defective, the LAND AUTHORITY 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), failing which the LAND AUTHORITY shall have the option of either accepting the title as it then is or rescinding the contract herein; thereupon the LAND AUTHORITY and the Seller(s) shall release one another of all further obligations under this Agreement. The Seller(s) will, if title is found unmarketable, use diligent effort to correct defect(s) in title within the time provided therefore, including the bringing of necessary suits. 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. It is further agreed that any loss or damage occurring prior to the vesting of satisfactory title in the LAND AUTHORITY shall be borne by the Seller(s); and that, in the event any such loss or damage occurs, the LAND AUTHORITY may refuse, without liability, to accept conveyance of said lands, or it may elect to accept conveyance upon an equitable adjustment of the purchase price. 4. The Seller(s) further agree that during the period covered by this instrument officers and accredited agents of the LAND AUTHORITY shall have at all proper times the unrestricted right and privilege to enter upon said lands for all proper and lawful purposes, including examination of said lands and the resources upon them. 5. The Seller(s) will execute and deliver upon demand of the proper officials and agents of the LAND AUTHORITY a good and sufficient deed of warranty conveying to the LAND AUTHORITY a safe title to the said lands of such character as to be satisfactory to the legal counsel of the LAND AUTHORITY 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 LAND AUTHORITY governing the use, occupation, protection and administration of lands. 6. In consideration whereof the LAND AUTHORITY agrees that it will purchase all of said lands and other interests at the price of $370,000.00. The LAND AUTHORITY further agrees that, after the preparation, execution, delivery and recordation of the deed, and after the legal counsel of the LAND AUTHORITY shall have approved the title thus vested in the LAND AUTHORITY, it will cause to be paid to the Seller(s) the purchase price by a check drawn on the account of the LAND AUTHORITY. The LAND AUTHORITY 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 LAND AUTHORITY, 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. Full possession of the premises shall pass to the LAND AUTHORITY 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 LAND AUTHORITY will be 2 obtained by the LAND AUTHORITY at its expense. The Seller(s) expressly agree herein to furnish to the LAND AUTHORITY 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 is mutually understood and agreed that the LAND AUTHORITY may assign this contract. 9. 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 LAND AUTHORITY, whether or not such taxes and assessments are then due and payable. 10. 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: J. Haydnlaan 57 2324 AR Leiden The Netherlands Phone: 011-31-71-576-7845 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. 11. Except for the warranties and representations contained in this Agreement, the parties agree that the property is being purchased in its "as is" condition. 12. In the event of litigation arising out of this Agreement, the prevailing party shall be entitled to recover reasonable attorneys' fees and costs. 13. The parties represent and warrant, each to the other, that they have not employed or contracted with any real estate broker. 14. This Agreement shall be governed by and construed in accordance with the laws of the State of Florida. If litigation becomes necessary, the parties agree that venue will be proper in Monroe County, Florida. 15. The parties acknowledge title to the property is currently encumbered with a life estate in favor of Ms. Auwina Weed, said Stipulation and Agreement being dated July 26, 1990. Notwithstanding the provisions of Paragraph 2 above, the LAND AUTHORITY agrees to accept title subject to this life estate and the leases of tenants currently occupying the property. 16. The closing of this transaction is contingent upon a simultaneous transfer of title to the Bahama Conch Community Land Trust of Key West Inc. following the LAND AUTHORITY'S imposition of affordable housing deed restrictions. In event the LAND AUTHORITY determines, at the LAND AUTHORITY'S sole discretion, that Bahama Conch Community Land Trust of Key West Inc. is unwilling to accept title with said restrictions, the LAND AUTHORITY shall have the right to terminate this contract with no further obligation to the Seller(s). 17. If the Seller(s) wish to proceed with this transaction, the Seller(s) have until January 2, 2001 to sign and return this contract to the LAND AUTHORITY. 3 IN WITNESS WHEREOF, the Seller(s) have hereunto signed their names and affixed their respective seals on the day first above written, with the understanding that this Agreement for Purchase cannot be executed by the LAND AUTHORITY until after it is reported to it for its consideration, and therefore the Seller(s) for and in consideration of the One Dollar ($1.00) hereinabove acknowledge as received, have and do hereby grant unto the LAND AUTHORITY or its authorized representative, or any other office or agent of the LAND AUTHORITY authorized to purchase said lands, the option and right to enter into this Agreement for Purchase within sixty (60) days from the execution thereof by the LAND AUTHORITY, and to purchase said lands as herein provided. ,2000 Sellerl Willem Storm van Leeuwen The MONROE COUNTY COMPREHENSIVE PLAN LAND AUTHORITY, acting by and through its CHAIRMAN, has executed this agreement on behalf of the MONROE COUNTY COMPREHENSIVE PLAN LAND AUTHORITY this day of , 2001. ATTEST: MONROE COUNTY COMPREHENSIVE PLAN LAND AUTHORITY (Seal) Mark J. Rosch, Executive Director Nora Williams, Chairman 4 C3 is:~ Oeo ...J u.. UJ ~ J7~~ Sig <( o is: o ....J u.. u.. o en l:: ~ t; UJ Q~ 0:::.:: :::> o :eo :s- ::Sll) :& L!fe E\.tate Appraisal Report 629 Caroline Street, Unit /I 5, Key West, FL PLAT MAP ~ ~ 1~~. JAMES EDWIN FELTON 'ffiUSTEE 1 . o. . '---. . ~M , . I 1--________ - ------, , I STRUNK LUM8E~ YARD, INC. ~----------_.~----~---- I ~ REI 29 ;., 31.6' I ~ -.:;;:) ~ N I -------, I ,.-.. I e N___&:r.+l\Jl>Jl(-iLUM8ER YARD. INC. , I 130' ------ --r--- --- I I RB 24 I I I I I 74' I GT .10" -----r-,------- I I 1 : I I I I I I I I I : I I 1 I I I I I 86'.5" 001 .0 560.6" RE 2/ r~8' )11.8 5S '0' .8.4' - ~ , o '.. ., ;;; K(K'<T)4 II. K[JIN:TH a. . .. C"f'N~lANO<<:I..SC'l'NTHIANO<lLS"'"" $.ANOt4JSL"t $.UOKUS()oI'" .;, -... RE38 RE31' 57.3' 55 .f' ~ 4- CITY OF KEY WEST r ,,--,--, I , L..._ .. " " " ,- - ,- oJ .... "- I .... "- "- "- 3 I, .... "- "- "- , "- I , .... 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