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Item O6 BOARD OF COUNTY CONMSSIONERS AGENDA ITEM SUMMARY Meeting Date: September 17,2013 Division: County Administrator Bulk Item: Yes _ No X Staff Contact Person: Natileene Cassel Phone#: 292-3470 AGENDA ITEM WORDING: Approval to enter into Agreement for Sale and Purchase of the property known as Rowell's Marina, including Tracts 1 and 2,plus peninsular,Parcel"A" and rock jetty and land,Parcel`B", located at 104550 Overseas Highway,Key Largo for the purchase price of no more than Five Million Dollars and no/cents. ITEM BACKGROUND: This is a Sale and Purchase Agreement in which the County offers to Purchase from the property in Key Largo formerly known as Rowell's Marina, including Tracts 1 and 2,Highlands Shores, according to the map or plat thereof recorded in P133-39 of the Public Records of Monroe County Florida and including the adjoining Parcels"A"and`B".The agreement contains certain contingencies: the seller must provide a good and sufficient deed of warranty conveying the property to the County, must submit to a Phase I Environmental Study and if the environmental site assessment identifies the presence of hazardous materials on the property,the Seller must bring the property into compliance with all applicable federal, state or local laws. If the Seller refuses to act or fails to act to bring the property into full compliance with any and all applicable federal, state or local laws, the County shall have the option of either accepting the property as it then is, renegotiating the purchase price or rescinding the contract herein;thereupon the County and the Seller shall release one another of all further obligations under this Agreement. PREVIOUS RELEVANT BOCC ACTION: On April 17, the BOCC authorized the County Administrator to obtain two appraisals of Tracts 1 and 2,Highland Shores Subdivision and adjoining Parcels"A"and`B" (formerly Rowell's Marina)to determine the feasibility and value of the property.On August 21, 2013, the BOCC gave the County Administrator authority to negotiate a purchase price for the property. CONTRACT/AGREEMENT CHANGES: none STAFF RECOMMENDATIONS: TOTAL COST: Up to$5,000,000.00 INDIRECT COST: BUDGETED: Yes No X DIFFERENTIAL OF LOCAL PREFERENCE: N/A COST TO COUNTY: SOURCE OF FUNDS: REVENUE PRODUCING: Yes_ No AMOUNT PER MONTH Year �v APPROVED BY: County Atty N OMB/Purchasing Risk Management DOCUMENTATION: Included Not Required DISPOSITION: AGENDA ITEM# Revised 7/09 AGREEMENT FOR SALE AND PURCHASE THIS AGREEMENT is made this_day of ,2013,between MONROE COUNTY, FLORIDA,a political subdivision of the State of Florida, as "Purchaser" or"COUNTY", c\o County Administrator, 1100 Simonton Street,Room 2-205,Key West,Florida 33040,and Largo Sun Vista Acquisition Company, LLC , as "Seller", whose address is 550 SW 121h Avenue Suite 550,Deerfield Beach,Florida 33442. 1. In consideration of Ten Dollars($10.00) in hand,paid by the COUNTY,the receipt of which is hereby acknowledged, the Seller(s)agree to sell to the COUNTY certain lands upon the terms and conditions hereinafter set forth,and for the purchase price of FIVE Million Dollars and No/Cents ($5,000,000.00) for all of the lands and other interests, which lands shall include all tenements, hereditaments, together with all water and other rights,easements,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 in paragraph 2 and Exhibit"A" below. 2. The property which the Seller agrees to sell and the Purchaser agrees to buy pursuant to the terms of this Agreement is that property situated at 104550 Overseas Highway, Key Largo,Monroe County, Florida,and more particularly described as:The former Rowell's Marina,Tracts 1 (Alternate Key# 1626015, Parcel ID#00508200-000000) and Tract 2(Alternate Key# 1626023,Parcel ID#00508210- 000000), Highland Shores Subdivision,PB3-39,plus adjoining Parcels"A" and"B". a) The Legal Description is attached hereto and made a part hereof as Exhibit"A"to this Agreement. 3. If the Seller(s) wish to proceed with this transaction,the Seller(s) have until October 1,2013,to sign and return this Agreement to the County Administrator at: Mr.Roman Gastesi 1100 Simonton Street,Room 2-205 Key West,Florida 33040 Execution of this Agreement by Seller(s) shall serve to warranty that Largo Sun Vista Acquisition Company, LLC is the sole owner of the property, holds a certificate of good standing with the Florida Division of Corporations,Florida Department of State, and holds good and sufficient title to the property. 4. 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,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. 5. Title to Property: Seller(s)shall convey a marketable title subject only to the aforementioned liens,encumbrances,exceptions or qualifications set forth herein. Marketable title shall be a good and sufficient deed of warranty determined according to applicable title standards adopted by authority of the Florida Bar and in accordance with law. a) The COUNTY shall have sixty(60)days from receipt of an acceptable environmental site assessment in which to examine title. If title is found defective,the COUNTY shall, within this Agreement for Sale and Purchase Page 1 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 COUNTY shall have the option of either accepting the title as it then is or rescinding the contract herein; thereupon the COUNTY and the Seller(s) shall release one another without liability to either party of all further obligations under this Agreement. b)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. 6. 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 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 refuse, without liability, to accept conveyance of said lands, or it may elect to accept conveyance upon an equitable adjustment of the purchase price. 7. The Seller(s)further agree that during the period covered by this instrument officers and accredited agents of the COUNTY 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. The Seller(s) hereby waive their rights to any and all claims against the COUNTY associated with, or arising from ownership of, said lands and this waiver shall survive closing. 8. 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 safe 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. 9. Prior Environmental Site Assessment. Seller has provided County a Phase 1 Environmental Assessment of the Rowell's Marina Facility,prepared by Envirochek, Inc. in March 2005. According to this document one contaminated site was located on the property,a recommendation was made that all the fuel storage tanks be removed,and that the 2005 purchaser should request a clean"Closure Report" on all tanks. Seller shall a minimum of thirty(30)days before closing provide the following: a) A written indemnification related to petroleum contamination,and b) A copy of the clean"Closure Report'on all tanks from a reputable source. 10. Current Environmental Site Assessment.The COUNTY,at its own expense,shall have sixty(60) days from the effective date of this Agreement in which to conduct a current Phase 1 Environmental Site Assessment to determine the existence and extent, if any,of any hazardous materials on the property. For the purposes of this Agreement, "hazardous materials" shall mean any hazardous or toxic substance, material or waste of any kind or any other substance which is regulated by any environmental law. a) If the environmental site assessment identifies the presence of hazardous materials on the property,the COUNTY shall, within this specified time period,notify Seller(s) in writing of the findings. b) The Seller(s) will then have one hundred twenty(120)days from receipt of notice within which to pursue, at Seller(s)'sole cost and expense, any assessment,clean-up,and monitoring of the Agreement for Sale and Purchase Page 2 property necessary to bring the property into full compliance with any and all applicable federal, state or local laws. c) If the Sellers refuse to act or fail to act to bring the property into full compliance with any and all applicable federal, state or local laws,the COUNTY shall have the option of either accepting the property as it then is, renegotiating the purchase price or rescinding the contract herein; thereupon the COUNTY and the Seller(s)shall release one another of all further obligations under this Agreement. 11. Closing shall take place on or before the 31st day of January,2014.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 safe 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.Closing on this property may occur prior to that date if all contingencies in this agreement have been met and both parties agree in writing to an earlier date. 12. In consideration whereof the COUNTY agrees that it will purchase all of said lands and other interests at the price of$5,000,000.00. The COUNTY further agrees that,after the preparation, execution,delivery and recordation 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 purchase price by a check drawn on the account of the COUNTY. 13. The COUNTY shall pay the following expenses associated with the conveyance of the property: deed recording fees,abstract fees, the Buyer's attorney's fees,and 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. 14. The Seller(s) shall pay the expenses of documentary stamps to be affixed to the deed,an abstract, title examination fees and real estate commissions, if any, title insurance policy or other evidence of title to the property herein contracted to be sold, satisfactory to the legal counsel of the COUNTY and for the removal of trash and debris from the property, 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 this agreement. 15, 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. 16. 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: Largo Sun Vista Acquisition Company,LLC 550 SW 121h Avenue,Suite 550 Deerfield Beach,Florida 33442 and shall be effective upon date of mailing and shall be binding upon all of the Seller(s). 17. The property shall be delivered at closing free of any tenant or occupancy whatsoever. 18. 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. Agreement for Sale and Purchase Page 3 18. This Agreement may be executed in counterparts. Notwithstanding any provision of this Agreement to the contrary, the closing of this transaction is contingent upon approval by the Board of County Commissioners failing which the COUNTY and the Seller(s) shall release one another of all further obligations under this Agreement. IN WITNESS WHEREOF,the Seller(s) have hereunto signed their names and affixed their respective seals on the day first above written and therefore the Seller(s)for and in consideration of the Ten Dollars ($10.00) hereinabove acknowledge as received, have and do hereby grant unto the COUNTY or its authorized representative,or any other office or agent of the COUNTY 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 Seller(s),and to purchase said lands as herein provided. THIS IS TO BE A LEGALLY BINDING CONTRACT. IF NOT FULLY UNDERSTOOD, SEEK THE ADVICE OF AN ATTORNEY PRIOR TO SIGNING SELLER: Authorized Signature Date Phone Number Print Name Print Title PURCHASER: MONROE COUNTY, FLORIDA By: Amy Heavilin,Clerk Mayor BY: Date: Deputy Clerk MONROE COUNTY ATTORNE AP ROVED AS TO FOR 1117 NATILEENE W. CASSEL ASSISTANT COUNTY ATTORNEY Date Agreement for Sale and Purchase Page 4 Exhibit"A" Legal Description Marina Parcel: Tracts 1 and 2, HIGHLAND SHORES, according to the map or plat thereof recorded in Plat Book 3, Page 39,of the Public Records of Monroe County,Florida. Sovereign Lands Parcel: PARCEL"A" A PARCEL OF SOVEREIGN LAND LYING WESTERLY OF AND ADJACENT TO TRACT 1, HIGHLAND SHORES ON KEY LARGO, ACCORDING TO THE PLAT THEREOF, RECORDED IN PLAT BOOK 3, AT PAGE 39 OF THE PUBLIC RECORDS OF MONROE COUNTY, FLORIDA. SAID PARCEL BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCING AT THE INTERSECTION OF THE NORTHEASTERLY RIGHT-OF-WAY OF STATE ROAD NUMBER 5, U.S. HIGHWAY NO. 1, AND THE NORTHERLY PROPERTY LINE OF TRACT 1 ACCORDING TO SAID PLAT, RUN S89004'36"W, 773.50 FEET MORE OR LESS TO A POINT ON THE ORIGINAL SHORELINE OF BLACKWATER SOUND, SAID POINT BEING THE POINT OF BEGINNING OF THE DESCRIPTION OF PARCEL A. FROM SAID POINT OF BEGINNING, RUN N72051'52"W, 9.95 FEET ALONG THE SOUTHERLY BOUNDARY OF THE TRUSTEES OF THE INTERNAL IMPROVEMENT FUND DEED NUMBER 22,017. THENCE FOLLOW THE BOUNDARY OF SAID PARCEL A FOR THE FOLLOWING TWENTY-SEVEN (27) COURSES: LINE BEARING LENGTH LINE BEARNG LENGTH Ll S36050'26"W 6.57' L15 S21010'20"W 44.38' L2 N89020'05"W 22.43' L16 S23030'36"W 40.93' L3 S89011'08"W 22.50' L17 S20014'24"W 30.32' L4 N88034'06"W 18.95' L18 S68026'51"E 12.54' L5 S73011'30"E 8.52' L19 N27028'42"E 29.75' L6 S09035'30"W 14.12' L20 N25000'38"E 27.93' L7 N87052'46"W 12.08' L21 N21026'38"E 28.28' L8 S65011'57"W 31.82' L22 N2005 P41"E 37.60' L9 S57030'44"W 10.71' L23 N24017'59"E 44.80' L10 S83049'08"W 10.38' L24 N58059'02"E 11.60' 1,11 S29052'36"W 7.20' L25 N31059'59"E 16.09' L12 S25031'37"E 11.07' L26 S57047'25"E 39.79' L13 S16022'44"W 25.33' L27 S59040'35"E 22.86' L14 S23038'17"W 26.70' THENCE CONTINUE N28008'57"E ALONG THE ORIGINAL SHORELINE FOR 84.59 FEET TO THE SAID POINT OF BEGINNING OF THE HEREIN DESCRIBED PARCEL A. PARCEL"B" A PARCEL OF SOVEREIGN LAND LYING WESTERLY OF AND ADJACENT TO TRACT 2, HIGHLAND SHORES ON KEY LARGO, ACCORDING TO THE PLAT THEREOF, RECORDED IN PLAT BOOK 3, AT PAGE 39 OF THE PUBLIC RECORDS OF MONROE COUNTY, FLORIDA. SAID PARCEL BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCING AT THE INTERSECTION OF THE NORTHEASTERLY RIGHT-OF-WAY OF STATE ROAD NUMBER 5, U.S. HIGHWAY NO. 1, AND THE SOUTHERLY PROPERTY LINE OF TRACT 2 ACCORDING TO SAID PLAT, RUN S89013'53"W, 617.10 FEET MORE OR LESS TO A POINT ON THE ORIGINAL SHORELINE OF BLACKWATER SOUND, SAID POINT BEING THE POINT OF BEGINNING OF THE DESCRIPTION OF PARCEL A. FROM SAID POINT OF Agreement for Sale and Purchase Page 5 BEGINNING, PROCEED N67038'25"W, 9.95 FEET ALONG A RIPARIAN LINE 46.11 FEET TO A POINT ON THE EXISTING SHORELINE OF BLACKWATER SOUND, THENCE FOLLOW THE BOUNDARY OF PARCEL B FOR THE FOLLOWING SEVENTEEN(17)COURSES: LINE BEARING LENGTH LINE BEARNG LENGTH L1 N36013'50"E 4.89' L10 S57034'12"E 12.71' L2 N17047'06"E 24.30' L11 S24037'06"W 61.58' L3 N13001'17"W 23.43' L12 S26026'40"W 55.16' L4 N42006'23"W 23.00' L 13 S240 15'51"W 28.84' L5 N 14035'11"W 21.14' L 14 S01000'47"E 14.56' L6 N23046'18"E 38.89' L15 S49034'20"E 18.26' L7 S87013'20"E 9.09, L16 S75038'49"E 21.66' L8 N23047'03"E 58.87' L17 S83004'34"E 32.42' L9 N22000'56"E 52.45' THENCE CONTINUE S20036'26"E, 73.17 ALONG NE ORIGINAL SHORELINE OF BLACKWATER SOUND TO THE SAID POINT OF BEGINNING OF THE HEREIN DESCRIBED PARCEL B. Agreement for Sale and Purchase Page 6 tl W 7 Nw Monroe County Board of County Commissioners a RE: Potential Rowell's Marina Property Acquisition September 17, 2013 Dear Commissioners: You have been previously told of the broad community support the potential oll's Marina property purchase. What may have been missed is this is the last opportunity for a waterfront public venue to facilitate the needs of the Key Largo citizens. There simply are no other parcels of land that have S-1 frontage and water access. Public events do well when they have the visual exposure of beingon US-1. Events that we have attempted o host on off S-1 properties do not fare well. We have a very caring community. Our civic clubs and other charitable organization have hosted many successful events at the Rowell's property. These charitable organizations pay reasonable rent for the use, and they raise significant revenue that directly benefits the less fortunate in our area. Some events raise scholarship monies for our children to further their educations. The oll's property represents the ability of these groups to better benefit our citizens. e also have commercial ventures that pay a market rate rent for the property to host events. These events bring many out of town guests who in turn use our hotels and restaurants. Besides direct sales tax revenue, these events put heads in beds that generate significant bed taxes. Your T C sees these as worthy ventures as they have provided marketingmonies over the years. These commercial users and civic organizations would be willing to work hand and hand with the Recreational District and County Administrator to create a viable business plan. Please support this purchase for the citizens of this community, and do not let this last chance to acquire this singularly unique property. Yours Truly, m Saun ers Bayview Homes, Point of View Key Largo RV Resort, Keys Lake Villas Apartments 99198 Overseas Highway Suite 2 Key Largo, Florida 33037 99198 Overseas Highway, Suite 2, Ivey I aro, FL 33037 Tel 305. 53. 521 • 305. 53.4522 •www.bayviewhornes.biz D.- Good aftemoon Commissioners, My name is Kay Thacker; I reside in Key Largo, thank you for allowing me to speak with you today about the purchase of Rowell's Marina Acquiring Rowell's Marina history in the Upper Keys goes way back in time. 15 plus residents' started meeting here in Key Largo as far back as 2005 and continues meeting to this day. Commissioner Murphy you know how long we have been investigating this property... County Administrator Gastesi also knows how far back we have held meetings, close to 24 meetings throughout Key Largo about Rowell's marina purchase. The purchase of Rowell's Marina by the BOCC is not a whim as was the purchase of Hickory House by "The Gang of Three". The County is of its due diligence by requiring a "clear title and environmental amassment", contaminated tanks were removed in 2005, but county is requiring clean closure reports, the county would have 60 days to conduct its own environmental review, if any contaminants are found the owner is given 120 days on his dime to clean it up. These groups that stared meeting are made up of respectable business owners, taxpayers, residents, community leaders have also of our own due diligence these as 8 years. We have scrutinized in detail, inspected roads into the property and surroundings, layout of property, looked at ways this property could be self- sustaining business and not a drain on our taxpayers. You know what an advocate I arn for saving our taxes and getting the best bang for our hard ea d bucks. I believe we have three out of 5 of you that are supporting this purchase which would be a boost in the arm of Key Largo and he support our businesses and community, but this vote, will take 4 out of the 5 Commissioners to get this job done. I am reaching out to all of you Commissioners for this vote of confidence...that we will try to make this a non cost tothe taxpayers of Monroe County. Kay Thacker