Item R5
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BOARD OF COUNTY COMMISSIONERS
AGENDA ITEM SUMMARY
Meeting Date:
October 16, 2002
Division:
County Attorney
AGENDA ITEM WORDING:
Approval of Pre-litigation Notice concerning the purchase of the Quay Property
in Key Largo.
ITEM BACKGROUND:
PREVIOUS RELEVANT BOCC AcnON:
Approval of Resolution No. 354-2002, dated September 11, 2002 authorizing the use of the
Statutory Quick Take Condemnation of the Quay property for use as a Marina and government
offices.
CONTRACT I AGREEMENT CHANGES:
STAFF RECOMMENDAnONS:
TOTAL COST: BUDGETED: Yes 0 No 0
COST TO COUNTY:
APPROVED BY: County Attorney _ OMB/Purchaslng 0 Risk Management 0
DOCUMENTAnON:
Included 0
To Follow 0
Not Required 0
DIVISION DIRECTOR APPROVAL:
AGENDA ITEM #
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(305) 294-4641
BOARD OF COUNTY COMMISSIONERS
MAYOR Charles 'Sonny. McCoy, District 3
Mayor Pro tern Dixie Spehar, District 1
Murray Nelson, District 5
George Neugent, District 2
Bert Jimenez, District 4
Office of the County Attorney
PO Box 1026
Key West, FL 33041-1026
305/292-3470 - Phone
305/292-3516 - Fax
.
DRAFT
October _' 2002
VIA CERTIFIED MAIL 70020860000778327881 ahd 70020460000292828417
Chris A. Economou, Esq.
645 E. Dania Beach Blvd.
Dania Beach, FL 33004
Robert E. Gallagher, Jr" Esq,
150 West Flagler Street
Museum Tower, Ste. 220
Miami, FL 33130
RE: Quay Property, Key Largo Pre-Litigation Notice
Dear Sirs:
In compliance with Florida Statutes, 973,015, I am required to provide you with a written
offer, which I hereby state is $1,840,000. As you are no doubt aware, Monroe County desires to
acquire the Quay Property, which is in the estate of Konstantinos Boulis, for purposes of
establishing a government center in Key Largo. In order to do so, the Board of County
Commissioners of Monroe County, Florida, passed Resolution 354-2002, a. copy of which is
enclosed for your reference. Copies of the cover letters of the two appraisal reports are also
enclosed for your reference. One appraisal is in the amount of $1,840,000 and the second is in
the amount of$ 1 ,790,000.
Within 15 days of a request for a copy of the appraisal report upon which the offer is
made, one shall be provided to you. The County is also required to provide copies of any
drawings, plans, etc., for construction within 15 days of request. At this time, there are no such
drawings or plans.
Florida Statutes, 973.0511 requires notice to be given to you of your statutory rights
under 973.091,
Section 73.091 of the Florida Statutes provides the following:
(1) The petitioner shall pay attorney's fees as provided in 973.092 as well as all
reasonable costs incurred in the defense of the proceedings in the circuit court,
including, but not limited to, reasonable appraisal fees and, when business
damages are compensable, a reasonable accountant's fee, to be assessed by that
court. No prejudgment interest shall be paid on costs or attorney's fees.
(2) At least 30 days prior to a hearing to assess costs under this section, the
condemnee's attorney shall submit to the condemning authority for each expert
witness complete time records and a detailed statement of services rendered by
date, nature of services performed, time spent performing such services, and costs
Economou/Gallagher
Quay Property
October _, 2002
Page 2
incurred, and a copy of any fee agreement which may exist between the expert
and the condemnee or the condemnee's attorney,
(3) In assessing costs, the court shall consider all factors relevant to the
reasonableness of the costs, including, but not limited to, the fees paid to similar
experts retained in the case by the condemning authority or other parties and the
reasonable costs of similar services by similarly qualified persons.
(4) In assessing costs to be paid by the petitioner, the court shall be guided by the
amount the defendant would ordinarily have been expected to pay for the services
rendered if the petitioner were not responsible for the costs.
(5) The court shall make specific findings that justify each sum awarded as an
expert witness fee.
It is expected that a complaint and condemnation for the property described below will be
filed within 30 days of your receipt of this letter, unless an agreement can be reached earlier.
Description
The Quay Restaurant, 102050 Overseas Highway, Mile Marker 102, Bayside, Key Largo,
Florida, more particularly described as the northerly one-half of Tract 8 and all of Tract 9 and 10
of Lee Shores Subdivision, Key Largo, as recorded in Plat Book 2, Page 97 of the Public
Records of Monroe County, Florida, along with a parcel of filled sovereignty land (baybottom)
containing approximately 0.14 acres, as well as a 50 foot wide parcel ofland on the southeasterly
boundary of the property deeded by the Florida DOT containing approximately 15,745 square
feet, for a total of 183,255 square feet or 4.21 acres,
Sincerely,
Suzanne A. Hutton
Assistant County Attorney
SAH:dct
Enclosures
cc: James L. Roberts
Mark Rosch
FILED FOR RECORD Board of County Commissioners
2002 Sf? , RESOLUnON NO. 3Stl- - 2002
3 AM 8: 5J
A RBA~AOi= THE BOARD OF COUNTY COMMISSIONERS OF
MO....'C~~1l*A FLORIDA AUTHORIZING THE USE OF THE
STATUTORY QUiCK 'rAKE CONDEMNAnON OF PROPERTY PROCEDURE
OF CHAPTER 74, FLORIDA STATUTES FOR THE QUAY PROPERTY IN
KEY LARGO
WHEREAS, the citizens of the Upper Keys need, and deserve to have available to
serve them, a County office building located on Key Largo; and
WHEREAS, the BOCC hereby determines that the Quay site on Key Largo is
appropriate for a County office building and that the taking of the site by the eminent
domain procedure of Chapters 74 and 127, FS, will serves a County purpose; now,
therefore
BE IT RESOLVED BY THE BOARD OF COUNlY COMMISSIONERS OF MONROE
COUNTY, FLORIDA:
Section 1. County staff Is hereby directed to negotiate purchase of the Quay site at
a price not to exceed $1,840,000, and if acceptable terms have not been agreed within 15
days hence, to proceed pursuant to Chapter 74, FS, Proceeding Supplemental to Eminent
Domain, to obtain title and possession to the Quay property, Key Largo, as expeditiously as
possible.
Section 2. The Clerk Is authorized to pay Into the registry of the Court a pre-final
judgment amount equal to $1,840,000, the highest appraisal for the property obtained by
the Land Authority or such amount that the Court may order.
PASSED AND ADOPTED by the Board of County Commissioners of Monroe County,
Florida, at a special meeting of said Board held on the 11th day of September, 2002.
Mayor McCoy
Mayor Pro Tern Spehar
Commissioner Nelson
o loner Neugent
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REAr. ESTATE APPRAISERS & CONSULTANTS
THEODORE W. SLACK, MAl
(1902. (992)
THEODORE C. SLACK, MAl (Retired)
ST. CERT. GEN. REA RZ.OOOO870
SUE BARRETI SLACK, MAl
ST. CERT. GEN. REA RZ.OOOO875
July 5, 2002
L. GLENN JOHNSTON, MAl
ST. CERT. GEN. REA RZ0000443
ANDREW H. MAGENHEIMER, MAl
ST. CERT. GEN. REA RZOOOI073
Mr. Mark J. Rosch
Executive Director
Monroe County Land Authority
1200 Truman Avenue, Suite 207
Key West, Florida 33040
RE: Appraisal of Real Property
The Quay Key Largo Restaurant Property
102050 Overseas Highway
Mile Marker 102.5, Bayside
Key Largo, Monroe County, Florida
Owner: Constantin Gus Boulis (Estate of)
S & J Appraisal No. 02655
Dear Mr. Rosch:
At your request, we have prepared a complete appraisal ofthe market value of the fee simple interest,
as of June 24,2002, of the property known as the Quay Key Largo restaurant and currently under the
ownership of the Estate of Constantin Gus Boulis. The subject property consists of two buildings
which were fonnerly operated as The Quay Key Largo restaurant. The buildings are situated on a
waterfront, commercially-zoned site fronting on Overseas Highway at Mile Marker 102.5, bayside,
in Key Largo, Monroe County, Florida. The site contains a total of 4.20 acres. According to the
Monroe County Property Appraiser's records, approximately 4.06 acres are upland and .14 acres are
submerged, bay bottom. The two buildings contain a total enclosed area of9,21O square feet.
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The following report states our opinion of the market value, subject to various assumptions and
limiting conditions as set forth therein. The physical inspection and analysis that fonn the basis of
our valuation of the subject properties have been performed by the undersigned. The appraisal has
been prepared in accordance with the Uniform Standards of Professional Appraisal Practice
(USPAP) as adopted by the Appraisal Standards Board of the Appraisal Foundation and in
accordance with the Supplemental Appraisal Standards for the Board of Trustees Land Acquisitions,
State of Florida Department of Environmental Protection.
of
SlACK & JOHNSTON, INC. . LICENSED REAL ESTATE BROKER
7300 North Kendall Drive. Suite 520 . Miami, Florida. 33 156
Telephone (305) 670-2111. Facsimile (305) 670-1002. E-mail: sjmiami@aol.com
Mr. Mark J. Rosch
July 5, 2002
Page Two
Our estimate of the market value of the fee simple estate of the subject property, in its "as is"
condition, exclusive of furniture, fixtures and equipment, as of June 24, 2002, is as follows:
ONE MILLION EIGHT HUNDRED FORTY THOUSAND DOLLARS
($1,840,000)
..
Respectfully submitted,
im~d~elme'
St. Cert. Gen. REA RZOOO1386
Slack & Johnston
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co.
3229 Flagler Avenue, Suite #101
P. O. Box 2152
Key West, Florida 33045.2152
Telephone: (305) 296-4568
Fax: (305) 296-0493
APPRAISAL
OF KEY WEST, INC.
Website: f1a-keysappraisals.com
Emall: :richardp@fla-keysappraisals..com
July 10,2002
Mr. Mark J. Rosch, Executive Director
MONROE COUNTY LAND AUTHORITY
1200 Truman Avenue, Suite 207
Key West, Florida 33040
Appraisal Report:
Owner: Constantin (Gus) Boulis (Deceased)
Subject: The Quay Restaurant
102 Mile Marker, Bayside
102050 Overseas Highway
Key Largo Key, Florida 33037
Our File No,: 385-02
Dear Mr. Rosch:
We have performed a Complete, Self-Contained Appraisal Assignment and formed our opinion of
the Market Value of the above referenced property as of June 17,2002. The assumptions and the
real estate referenced above are more clearly defined in the General and Extraordinary Assumptions
and Limiting Conditions plus in the Property Description section of this report, The attached
Complete, Self-Contained Appraisal Report has been prepared to comply with our understanding of
the requirements of the Uniform Standards of Professional Appraisal Practice.
According to the Monroe County Property Records, the subject property includes the Northerly One-
Half ofIot 8 and all of Tract 9 and 10 of the Lee Shores subdivision, Key Largo, as recorded in Plat
Book 2, Page 97. In addition, the property includes a parcel of filled Sovereignty Land (Bay
Bottom),containing approximately 0.14 acres, as well as a 50 foot wide parcel of land on the
southeasterly boundary of the property deeded by the Florida D.O.T. containing approximately
15,745 square feet. Therefore, the property consists of a total 183,255 square foot or 4.21 acre site
fronting approximately 314 feet on the northerly side ofU .S, Highway No.1 at Mile Marker 102 and
extending northerly to Tarpon Basin with direct access to the Gulf of Mexico. The Monroe County
Tax Appraiser's records were referenced for the site area calculations. The subject property was most
_ Individual Meu.b..no
Your Prnr~..ion.J Commerc:ial.'nye-armenl Real Eat.le- Source
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Mr. Mark J. Rosch, Executive Director
Monroe County Land Authority
July 10, 2002
Page 2
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recently utilized and operated as the Quay Restaurant, a 394 licensed-seat restaurant, which closed
in late 2001. The property is improved with two combination CBS/masonry and wood framed
structures; the main restaurant building and a separate structure used as the raw bar, According to
the Monroe County tax assessor's records the main restaurant building was built in 1958 and the raw
bar added in 1988. The structures contain a total of 9,411 square feet of gross building area. The
property is improved with swimming pool, two wood piers extending into Tarpon Basin, a sandy
beach and extensive wood decking and patio areas. The waterfront is improved with a concrete
seawall/dock with riprap along part ofthe shoreline. In addition there is a small structure containing
two restrooms as well as a chickee hut and two wood gazebos. The property has it's own sewage
treatment plant.
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The subject property and improvements were personally inspected by the appraisers with building
measurements taken from a survey prepared by Mr. Frederick H. Hildebrandt, Professional Land
Surveyor, dated July 16, 1980 and updated February 20, 1988, Job Number 90-288. According to
the survey, a wood pier at the southwesterly comer of the subject property appears to extend beyond
the subject's boundary line. It does not appear that a land lease is in place for the submerged land
beneath the pier.
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Market Value is defined as the most probable price in cash (or its equivalency) for which the
appraised property will sell in a competitive market under all conditions requisite to a fair sale.
Market value assumes a normal or reasonable time for exposure on the open market.
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The Leased Fee Interest is an ownership interest held by the landlord, who conveys the rights of use
and occupancy to a tenant by lease. The landlord's rights include the right to receive rent and the
right of possession at the end of the lease period. In the case at hand, the subject property was vacant
at the time of inspection. As a result, since there are no long-term leases encumbering the subject
property, a Leased Fee valuation was not applicable; thus, only a Fee Simple valuation was
considered herein.
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Based on inspection and research, it is our opinion that the "As Is" Market Value of the Fee Simple
Interest of the subject property, commonly known as the Quay Restaurant, at Mile Marker 102,
102050 Overseas Highway, Key Largo, Florida, subject to definitions, assumptions and limiting
conditions, as of June 17, 2002 is:
ONE MILLION SEVEN HUNDRED NINETY THOUSAND DOLLARS
( $ 1,790,000 )
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The valuation herein includes typical restaurant/bar fixtures and equipment including range hood and
fire extinguishing system, walk-in cold storage units, restaurant sinks, and ice bins, with a
contributory value estimated at $18.000 (rounded). No other personal property has been included
herein.
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.Mr. M ark J. Rosch, Executive Director
Monroe County Land Authority
July 10, 2002
Page 3
The date of value in this assignment is after September II, 200 I, the date of the terrorist attacks in
New York City and Washington, D.C. These attacks, and the events that have ensued, have
impacted the U.S. economy in a variety of ways. In analyzing market conditions in this appraisal
assignment, the appraisers have applied the best available means to measure the effect of these
attacks and ensuing events. However, the client and intended users of this appraisal are cautioned
that limited information is available at this time to measure this effect.
A Summary of Facts and Conclusions is provided in the front of this report in Part I. The
Assumptions and Limiting Conditions, as well as the,Certification of Value may also be found in
Part I. If you have any questions regarding this appraisal report, feel free to contact us. Thank you
for giving us the opportunity to provide this service for you.
Respectfully submitted,
,~ // // --'
C7~~ .!e/~ -
Kevin Dalton
State-Reg. Assist. Real Estate Appraiser
License No. RI 0006878
Report Attached:
G :\Comm-02\3 85-02\Comm-02-385-02 A. wpd