Item G4
BOARD OF COUNTY COMMISSIONERS
AGENDA ITEM SUMMARY
Meeting Date: May 16,2006 - KL
Bulk Item: Y es ~ No
Division: Growth Management
Department:Growth Management
Staff Contact Person: Ty Symroski
Jerry D. Sanders, Esq.
AGENDA ITEM WORDING: Approval of development agreement proposed under Section 380,
Florida Statutes, for the purchase of land located on Stock Island by Monroe County from Overseas
Redevelopment Company, LLC.
ITEM BACKGROUND: To preserve workforce housing in Monroe County, steps must be taken to
preserve existing workforce housing in existing trailer parks. To meet the needs of Overseas
Redevelopment Company, LLC, the County plans to agree to pay $2.5 million for the purchase of the
property (formerly owned by Bounty Fisheries, Inc. and known as Overseas Trailer Park), which is less
than 65% of appraised fair market value, and allocate 18 affordable ROGO credits to the seller. Overseas
Redevelopment Company, LLC may then transfer offsite 18 market rate ROGO permits and it's over
density market rate RaGa permits (approximately 14) to offsite locations. The County will lease the
property to the developer for 99 years. Seller will build on County land 49 workforce housing units to
sell to qualified buyers over the next two years. The Planning Commission considered the proposed 380
agreement on May 10, 2006 and recommended approval with some minor changes which have been
incorporated. The site plan will require hearings by the Planning Commission. The 380 agreement will
require approval by the Department of Community Affairs after final BOCC action.
PREVIOUS RELEVANT BOCe ACTION:
4/19/2006 BOCC approval of Letter of Understanding with FL Department of Community Affairs
concerning affordable ROGO allocations.
4/19/2006 BOCC approval of Ordinance 017-2006 amending Sections 9.5-4 and 9.5-266, Monroe County
Land Development Regulations, regarding multi-unit development and redevelopment for affordable
housing.
3/15/2006 enacted Ordinance No. 005-2006 implementing an Affordable and Employee Housing
purchase and development program.
3/15/2006 BaCC directed staff to continue to negotiate an Agreement with Overseas Redevelopment
Company, LLC (formerly known as Bounty Fisheries, Inc.j.
2/15/06 Bacc approval to advertise for one public hearing to be held March 15, 2006 in Marathon to
consider adoption of County Ordinance establishing Affordable Housing Purchase and Development
Program.
1118/2006 BaCC directed staff to work with Bounty Fisheries, Inc. to draft the proposed Development
Agreement with Monroe County and the FL Department of Community Affairs under Chapters 163 and
380.
1/18/2006 BaCC approval of Request for Proposals for the purchase of land by the County and its
development for affordable housing and advertisement for the opening of sealed proposals to be received
on April 3, 1006 for this purpose.
CONTRACT/AGREEMENT CHANGES:NI A
STAFF RECOMMENDATIONS: Approval
TOT AL COST: $2.5 Million
COST TO COUNTY: $2.5 Million
BUDGETED: Yes No
SOURCE OF FUNDS:Previously budgeted
and as otherwise directed by BOCC
No AMOUNT PER MONTH_ Year
OMB/Purchasing _ Risk Management _
r!t(z- 6
t
T;r,~
REVENUE PRODUCING: Yes
APPROVED BY: County Atty ~
DIVISION DIRECTOR APPROVAL:
DOCUMENT A TION:
DISPOSITION:
Included X
Not Required ~
AGENDA ITEM #
AGREEMENT
Pursuant to Section 380.032(3), Florida Statutes
THIS SECTION 380.032 AGREEMENT is entered into between the Department
of Community Affairs, an agency of the State of Florida (hereinafter referred to as
"DCA" or Department"), Overseas Redevelopment Company, LLC (hereinafter
referred to as "ORC"), and Monroe County, a political subdivision of the State of
Florida (hereinafter referred to as "County"), pursuant to the terms and conditions herein
and 9 380.032(3), Florida Statutes.
WHEREAS, Monroe County, Florida includes within its boundaries all of the
Florida Keys and is known as an Area of Critical State Concern, as designated under
Sections 380.05, Florida Statutes, and Chapter 28-36, F.A.G; and
WHEREAS, the DCA is the state land planning agency having the power and
duty to exercise general supervision of the administration and enforcement of Chapter
380, Florida Statutes, the Environmental Land and Water Management Act (the "Act"),
which includes provisions relating to areas of critical state concern; and
WHEREAS, DCA is authorized by S 380.032(3), Florida Statutes, to enter into an
agreement with any landowner, developer or other governmental agency as may be
necessary to effectuate the provisions and purposes of the Act, or any related rule; and
WHEREAS, in March, 2005 ORC entered into a contract to purchase a parcel of
real property located on Stock Island, Florida comprising approximately 3.56 acres, as is
more fully described in Appendix "A", also known Overseas Trailer Park (the
"Property"), pursuant to which contract ORC, as contract vendee, is entitled to seek and
obtain government approvals for the development of the Property; and
WHEREAS, after acquiring the Property, ORC presented an application for an
amendment to a conditional use to the County to convert sixty-three (63) mobile home
sites to forty-nine (49) market rate housing units on the property; and
WHEREAS, ORC negotiated with the County the terms of an agreement to
resolve vested rights and other development issues that were the subject of protracted
discussions between the County and ORC; and
May 3, 2006
Page 1 of6
WHEREAS, the focus of the discussions was to seek a means to change the
development plans away from aRC's entitlement to build market rate units and toward a
plan that would create workforce housing units on the Property; and
WHEREAS, DCA in a letter dated June 16, 2005 indicated that it would not
appeal the rezoning necessary for aRC to redevelop the Property but indicated in said
letter that lladditional protection is needed to maintain properties that were formerly
mobile home parks as part of the affordable [workforce] housing stock"; and
WHEREAS, it is in the public interest and consistent with current County
ordinances and planning initiatives that Overseas Trailer Park be developed as workforce
housing, rather than market rate units; and
WHEREAS, it is in the public interest and consistent with County planning
initiatives that private lands capable of supporting workforce housing developments be
purchased and brought into public ownership when possible; and
WHEREAS, the County recognizes that to achieve this public purpose it is
necessary to provide Rate of Growth Ordinance rights (ROGO units) as part of the
purchase price incentive to private landowners in the position of ORC.
NOW, THEREFORE, in consideration of the mutual covenants and the terms and
conditions set forth hereafter, the County, ORC and DCA agree as follows:
1. Incorporation of Recitals. All of the foregoing recitals are incorporated into
this Agreement.
2. Development A2reements.
2.1. The parties agree that the Property that is subject of this agreement,
based on the most accurate historical information available, has sixty-three (63) RaGa
units allocated to the Property.
2.2. The parties agree that ORC currently has the lawful right to
construct forty-nine (49) market rate units on the Property.
2.3. The parties agree that there presently are an additional fourteen
(14) market rate ROGO units on the Property that may be transferred off site by ORC.
2.4. The County will purchase the Property from aRC pursuant to the
following terms and conditions:
May 3, 2006
Page 2 of6
May 3, 2006
a. The County will pay to ORC the sum of Two Million Five
Hundred Thousand Dollars ($2,500,000.00) in cash in exchange
for the transfer of ORC's fee simple ownership in the Property.
b. The County will lease the Property back to ORC in a lease
format approved by the County and ORC for a term of ninety-nine
(99) years for a rental rate of Ten Dollars ($10.00) per year. As
tenant, ORC shall assume all expenses and obligations of
ownership of the Property. As set forth below, ORC will
redevelop the Property into a workforce housing community,
which ORC will operate and manage consistent with the County's
workforce housing regulations, as amended from time to time,
including oversight by the County Housing Authority.
c. The County will allocate eighteen (18) of its affordable ROGO
units in its inventory to ORC for the redevelopment project, and
ORC will provide thirty-one (31) of its ROGO units to the project.
Said eighteen (18) County units and thirty-one (31) ORC units
shall be used by ORC to redevelop the Property into a forty-nine
(49) unit workforce housing community. The County may
substitute thirty-one (31) of its affordable housing ROGO
allocations for the 31 ORC units and in which event ORe will
assign the 31 ORe market rate ROGO allocations to the County
for its use. Thereafter, ORC shall own all forty-nine (49) units and
shall be able to sell the same to third parties in accordance with the
County's workforce housing guidelines. The parties agree that
aRC shall have the greatest possible latitude under the workforce
housing guidelines in its selling of units in the community, and
shall be able to sell such units at the maximum prices permissible
under the workforce housing guidelines, including but not limited
to those prices chargeable to people in the "moderate" income
classification.
Page 3 of6
d. The remaining thirty-two (32) market rate ROGO units retained
by ORC may be sold by ORe upon such terms and conditions as it
in its sole and absolute discretion deems appropriate, and such
units may be transferred off the Property singly, in groups or all
together to a receiver site or sites. ORe shall be entitled to transfer
such units at such time as it has been issued a building permit for
the redevelopment of the Property as set forth above. Each of the
thirty-two (32) ROGO units to be transferred off the Property is
deemed to meet the transfer criteria established by eounty
regulations and ordinances and shall be transferable as of right to a
receiver site. The units transferred off may not be transferred
beyond the Lower Keys District boundaries unless and until the
nutrient reduction system is officially dispensed with as a result of
official state action or judicial decree. The units being transferred
off may not be transferred in a Tier 1 zoning district or a special
protection area if the construction of the units within either
description would require clearing of natural habitat.
e. The transfer of affordable units from one owner to another will
be monitored by the County in a manner to be determined by the
County from time to time.
f. Until such time as Monroe County shall adopt "workforce
housing" regulations ORe shall comply in all respects with the
definition of "affordable housing" in the Monroe County Code and
shall additionally require each unit purchaser or adult occupant to
be a member of the Monroe County workforce, i.e. to be gainfully
employed, full time, in Monroe County at the time of purchase or
occupancy and to remain so employed for not less than five years
thereafter.
3. Construction of the A2reement. The parties hereto have entered into this
Section 380.032 agreement in recognition of the unique circumstances applicable to the
Property, and in consideration of the public benefits to be obtained by preserving
May 3, 2006
Page 4 of6
workforce housing stock Accordingly, this Section 380.032 Agreement should not be
construed as establishing precedent or procedure for any other development application.
4. General Provisions. The eounty will not take any official action through its
agents or employees which would contravene, interfere with or alter any provision in this
agreement.
5. Authorized Si2natures. The Board of County Commissioners of Monroe
County, or its authorized designee, shall execute this Section 380.032 Agreement on
behalf of the eounty following approval of this Agreement by the Board of County
Commissioners. The Director of the Division of Community Planning, or his/her
authorized designee, shall execute this Agreement on behalf of DCA. ORC shall execute
this Agreement by its duly-authorized officer.
6. Entirety of A2reement. The County, DCA and ORe further agree that this
Section 380.032 Agreement contains the entire and exclusive understanding and
agreement among the parties and may not be modified in any manner except by an
instrument in writing and duly signed by the eounty, DCA and ORe.
7. Duplicated OrieJnals. This Section 380.032 Agreement may be executed in
any number of originals, all of which evidence one agreement, and only one of which
need be produced for any purpose.
8. Enforcement. In the event of a breach of this Section 380.032 Agreement, or
failure to comply with any condition of it, the County, DCA and ORC may enforce this
Agreement pursuant to SS 380.05 and 380.11, Florida Statutes, or as otherwise provided
by law.
9. Scope of Authority. This Section 380.032 Agreement affects the rights and
obligations of the County, DCA and aRC as provided under the terms herein and
Chapter 380, Florida Statutes. This Section 380.032 Agreement is not intended to
influence or determine the authority or decisions of any other state or local government or
agency in issuance of any other permits or approvals that might be required by state law
or local ordinance for any development authorized by this Agreement except as otherwise
provided herein.
10. Effective Date. This Agreement shall take effect upon signature of the last
of the parties to sign this Agreement.
May 3, 2006
. Page 5 of 6
IN WITNESS WHEREOF, the parties by and through their respective
undersigned duly authorized representatives have executed this Agreement on the dates
and year below written.
COUNTY OF MONROE
OVERSEAS REDEVELOPMENT
COMPANY, LLC
DCA
County Manager
by: Joe Cleghorn, its
Manager
Director Division of
Community
Planning, DCA
Date signed
Date signed
Date signed
May 3, 2006
Page 6of6
AGREEMENT
Pursuant to Section 380.032(3), Florida Statutes
THIS SECTION 380.032 AGREEMENT is entered into between the Department
of Community Affairs, an agency of the State of Florida (hereinafter referred to as
"DCA" or Department"), Overseas Redevelopment Company, LLC (hereinafter
referred to as "ORC"), and Monroe County, a political subdivision of the State of
Florida (hereinafter referred to as "County"), pursuant to the terms and conditions herein
and S 380.032(3), Florida Statutes.
WHEREAS, Monroe County, Florida includes within its boundaries all of the
Florida Keys and is known as an Area of Critical State Concern, as designated under
Sections 380.05, Florida Statutes. and Chapter 28-36, F.A.C.; and
WHEREAS, the DCA is the state land planning agency having the power and
duty to exercise general supervision of the administration and enforcement of Chapter
380, Florida Statutes. the Environmental Land and Water Management Act (the "Act"),
which includes provisions relating to areas of critical state concern; and
WHEREAS, DCA is authorized by S 380.032(3), Florida Statutes, to enter into an
agreement with any landowner, developer or other governmental agency as may be
necessary to effectuate the provisions and purposes of the Act, or any related rule; and
WHEREAS, in March, 2005 ORC entered into a contract to purchase a parcel of
real property located on Stock Island, Florida comprising approximately 3.56 acres, as is
more fully described in Appendix "A", also known Overseas Trailer Park (the
"Property"), pursuant to which contract ORC, as contract vendee, is entitled to seek and
obtain government approvals for the development of the Property; and
WHEREAS, after acquiring the Property, ORC presented an application for an
amendment to a conditional use to the County to convert sixty-three (63) mobile home
sites to forty-nine (49) market rate housing units on the property; and
WHEREAS, ORC negotiated with the County the terms of an agreement to
resolve vested rights and other development issues that were the subject of protracted
discussions between the County and ORC; and
WHEREAS, the focus of the discussions was to seek a means to change the
development plans away from aRC's entitlement to build market rate units and toward a
plan that would create workforce housing units on the Property; and
WHEREAS, DCA in a letter dated June 16, 2005 indicated that it would not
appeal the rezoning necessary for aRC to redevelop the Property but indicated in said
letter that "additional protection is needed to maintain properties that were formerly
mobile home parks as part of the affordable [workforce] housing stock"; and
WHEREAS, it is in the public interest and consistent with current County
ordinances and planning initiatives that Overseas Trailer Park be developed as workforce
housing, rather than market rate units; and
WHEREAS, it is in the public interest and consistent with County planning
initiatives that private lands capable of supporting workforce housing developments be
purchased and brought into public ownership when possible; and
WHEREAS, the County recognizes that to achieve this public purpose it is
necessary to provide Rate of Growth Ordinance rights (RaGa units) as part of the
purchase price incentive to private landowners in the position of aRC.
NOW, THEREFORE, in consideration of the mutual covenants and the terms and
conditions set forth hereafter, the County, aRC and DCA agree as follows:
1. IncorDoration of Recitals. All of the foregoing recitals are incorporated into
this Agreement.
2. DeveloDment Al!:reements.
2.1. The parties agree that the Property that is subject of this agreement,
based on the most accurate historical information available, has sixty-three (63) RaGa
units allocated to the Property.
2.2. The parties agree that aRC currently has the lawful right to
construct forty-nine (49) market rate units on the Property.
2.3. The parties agree that there presently are an additional fourteen
(14) market rate RaGa units on the Property that may be transferred off site by aRC.
2.4. The County will purchase the Property from aRC pursuant to the
following terms and conditions:
May 3, 2006
Page 2 of 6
a. The County will pay to aRC the sum of Two Million Five
Hundred Thousand Dollars ($2,500,000.00) in cash in exchange
for the transfer of aRC's fee simple ownership in the Property.
b. The County will lease the Property back to aRC in a lease
format approved by the County and aRC for a term of ninety-nine
(99) years for a rental rate of Ten Dollars ($10.00) per year. As
tenant, aRC shall assume all expenses and obligations of
ownership of the Property. As set forth below, aRC will
redevelop the Property into a workforce housing community,
which aRC will operate and manage consistent with the County's
workforce housing regulations, as amended from time to time,
including oversight by the County Housing Authority.
c. The County will allocate eighteen (18) of its affordable RaGa
units in its inventory to aRC for the redevelopment project, and
aRC will provide thirty-one (31) of its RaGa units to the project.
Said eighteen (18) County units and thirty-one (31) aRC units
shall be used by aRC to redevelop the Property into a forty-nine
(49) unit workforce housing community. The County may
substitute thirty-one (31) of its affordable housing RaGa
allocations for the 31 aRC units and in which event aRC will
assign the 31 aRC market rate RaGa allocations to the County
for its use. Thereafter, aRC shall own all forty-nine (49) units and
shall be able to sell the same to third parties in accordance with the
County's workforce housing guidelines. The parties agree that
aRC shall have the greatest possible latitude under the workforce
housing guidelines in its selling of units in the community, and
shall be able to sell such units at the maximum prices permissible
under the workforce housing guidelines, including but not limited
to those prices chargeable to people in the "moderate" income
classification.
May 3, 2006
Page 3 of6
c,~
9~
@The remaining thirty-two (32) market rate RaGa units retained
by aRC may be sold by aRC upon such terms and conditions as it
in its sole and absolute discretion deems appropriate, and such
units may be transferred off the Property singly, in groups or all
together to a receiver site or sites. aRC shall be entitled to transfer
such units at such time as it has been issued a building permit for
the redevelopment of the Property as set forth above. Each of the
thirty-two (32) RaGa units to be transferred off the Property is
deemed to meet the transfer criteria established by County
regulations and ordinances and shall be transferable as of right to a
receiver site. ~e units transferred off may not be transferred
beyond the Lower Keys District boundaries unless and until the
nutrient reduction system is officially dispensed with as a result of
official state action or judicial decree. The units being transferred _
off may not be transferred in a Tier I zoning district or a special
protection area if the construction of the units within either
description would require clearing of natural habita~
e. The transfer of affordable units from one owner to another will
be monitored by the County in a manner to be determined by the
County from time to time.
f. Until such time as Monroe County shall adopt "workforce
housing" regulations aRC shall comply in all respects with the
definition of "affordable housing" in the Monroe County Code and
shall additionally require each unit purchaser or adult occupant to
be a member of the Monroe County workforce, i.e. to be gainfully
employed, full time, in Monroe County at the time of purchase or
occupancy and to remain so employed for not less than five years
thereafter.
3. Construction of the Al!reement. The parties hereto have entered into this
Section 380.032 agreement in recognition of the unique circumstances applicable to the
Property, and in consideration of the public benefits to be obtained by preserving
May 3, 2006
Page 4 of 6
-.<-'
",1"<'':;1 (1) Authorized Silmatures. The Board of County Commissioners of Monroe
~oIo'" '(>0... County, or its authorized designee, shall execute this Section 380.032 Agreement on
.."
;.~ >c;O behalf of the County following approval of this Agreement by the Board of County
4"" o..V (
o;t' J ,.jt>
"V- (1'''/
workforce housing stock, Accordingly, this Section 380.032 Agreement should not be
construed as establishing precedent or procedure for any other development application.
4. General Provisions.
~ a. This Agreement is contingent upon the final approval of the terms and
C ~ conditions of the contemplated Agreement for Sale and Purchase and a 99
~ year lease from the County to ORC.
b. The County will not take any official action through its agents or
employees which would contravene, interfere with or alter any provision
in this agreement.
Commissioners.
The Director of the Division of Community Planning, or his/her
authorized designee, shall execute this Agreement on behalf of DCA. ORC shall execute
this Agreement by its duly-authorized officer.
6. Entiretv of A2reement. The County, DCA and ORC further agree that this
Section 380.032 Agreement contains the entire and exclusive understanding and
agreement among the parties and may not be modified in any manner except by an
instrument in writing and duly signed by the County, DCA and ORC.
7. Duplicated Ori2inals. This Section 380.032 Agreement may be executed in
any number of originals, all of which evidence one agreement, and only one of which
need be produced for any purpose.
8. Enforcement. In the event of a breach of this Section 380.032 Agreement, or
failure to comply with any condition of it, the County, DCA and ORC may enforce this
Agreement pursuant to SS 380.05 and 380.11, Florida Statutes, or as otherwise provided
bylaw.
9. Scope of Authoritv. This Section 380.032 Agreement affects the rights and
obligations of the County, DCA and ORC as provided under the terms herein and
Chapter 380, Florida Statutes. This Section 380.032 Agreement is not intended to
influence or determine the authority or decisions of any other state or local government or
agency in issuance of any other permits or approvals that might be required by state law
May 3, 2006
Page 5 of6
or local ordinance for any development authorized by this Agreemetlt except as otherwise
provided herein.
10. Effective Date. This Agreement shall take effect upon signature of the last
of the parties to sign this Agreement.
IN WITNESS WHEREOF, the parties by and through their respective
undersigned duly authorized representatives have executed this Agreement on the dates
and year below written.
COUNTY OF MONROE
OVERSEAS REDEVELOPMENT
COMPANY, LLC
DCA
m~o\
by: Joe Cleghorn, its
Manager
Director Division of
Community
Planning, DCA
C~nlRiy ~'\dRliRi3tI att.l
Date signed
Date signed
Date signed
May 3, 2006
Page 6 of6
Project:
Real Estate No. 00125350-000000
AGREEMENT FOR SALE AND PURCHASE
THIS AGREEMENT is made this day of May, 2006, between OVERSEAS REDEVELOPMENT
COMPANY, LLC as "Sellers" whose address is and the BOARD OF COUNTY
COMMISSIONERS FOR MONROE COUNTY, FLORIDA, a political subdivision of the State of Florida, as
"Purchaser", clo Thomas Willi, County Administrator, 1100 Simonton Street, Room 2-205, Key West, Florida 33040.
1. In consideration of the mutual promises contained herein, Sellers hereby agree to sell to Purchaser the real
property located in Monroe County, Florida, described below, together with all improvements, easements, rights and
appurtenances ("Property"), in ac~ord:m.....~e........~i.~...~. ..~..g~?y.j.s.}?n....~...,?f.~.}.~. .~lr....~.....~..~.~.:.........T?}~.......~..lr~.....m..~n......t...~7..~.?~~.~,.!~.Jl..~.....}lY.:.
bmdm u on executiOn b the artles bmllli\ll;ili9:M:ll'le:a lillltllilillllOi\!liif "il>j:jQll.:~~$litillllIlliMifoeliM~llril.:
g p y. P.... ". ........ ". ...... .... ....... .... .....Jl........... .... ....... ~... ..... ....I!llI! .... ............. X..... ......... ... ............. ........ .., .., ......... ......... ........ ...5
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2. DESCRIPTION OF PROPERTY. The property which the Sellers agree to sell and the Purchaser agrees to buy
pursuant to the terms of this Agreement is that property situated on , Monroe County, Florida, and
more particularly described as:
RE No.: 00125350-000000
3. TOTAL PURCHASE PRICE. The total purchase price ("Total Purchase Price") for the Property is Two
Million Five Hundred Thousand Dollars ($2,500,000.00) which will be paid by Purchaser at closing. Seller hereby
authorizes Purchaser to issue a County check or warrant directly to an escrow agent who is authorized by law to receive
such payment, and who is acceptable to Purchaser, and to require the escrow agent to pay customary and any other
agreed Seller's expenses of sale and real estate taxes. Should Purchaser's funds not be available for any reason,
Purchaser or Seller may elect to terminate this Agreement by written notice to the parties without liability to any party.
Conveyance of the Property in fee simple from Seller to Purchaser will take place at the closing, in exchange for the
payments and other considerations to be made to Seller at closing as set forth herein and in any related agreements.
4.A. ENVIRONMENTAL SITE ASSESSMENT. Seller shall, at Sellers sole cost and expense and at least 45
days prior to the closing, furnish to Purchaser an environmental site assessment of the Property which meets the
standard of practice of the American Society of Testing Materials ("ASTM"). Seller shall use the services of
competent, professional consultants with expertise in the environmental site assessing process to determine the
existence and extent, if any, of Hazardous Materials on the Property. For 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 (as hereinafter defined in paragraph 4.B.). The examination of hazardous
materials contamination shall be performed to the standard of practice of the ASTM. For Phase 1 environmental site
assessment, such standard of practice shall be the ASTM Practice E 1527. If the Findings and Conclusions section
of the assessment reports evidence of recognized environmental conditions, then a Phase II Environmental Site
Assessment shall be performed at Seller's expense to address any suspicions raised in the Phase I environmental site
assessment and to confirm the presence of contaminants on site. The environmental site assessment(s) shall be
certified to Purchaser and the date of certification shall be within 45 days before the date of closing.
4.B. HAZARDOUS MATERIALS. In the event that the environmental site assessment provided for in
paragraph 4.A. confirms the presence of Hazardous Materials on the Property, Purchaser, at its sole option, may
Page l
G.~
elect to terminate this Agreement and neither party shall have any further obligations under this Agreement. Should
Purchaser elect not to terminate this Agreement, Seller shall, at his sole cost and expense and prior to the closing,
promptly commence and diligently pursue any assessment, clean up and monitoring of the Property necessary to
bring the Property into full compliance with any and all applicable federal, state or local laws, statutes, ordinances,
rules, regulations or other govermnental restrictions regulating, relating to, or imposing liability or standards of
conduct concerning Hazardous Materials ("Environmental Law"). However, should the estimated cost of clean up
of Hazardous Materials exceed a sum which is equal to I % of the Total Purchase Price as stated in paragraph 3,
Seller may elect to terminate this Agreement and no party shall have any further obligations under this Agreement.
5. SURVEY. Seller shall, at Sellers sole cost and expense and not less than 25 business days prior to closing,
deliver to Purchaser a current boundary survey of the Property prepared by a professional land surveyor licensed by
the State of Florida. The Survey shall be certified to Purchaser, title insurer and any other of its designees, and the
date of certification shall be within 90 days before the date of closing, unless this 90 day time period is waived by
Purchaser and by the title insurer for purposes of deleting the standard exceptions for survey matters and easements
or claims of easements not shown by the public records from the owner's title policy. If the Survey shows any
encroachment on the Property or that improvements intended to be located on the Property encroach on the land of
others, the same shall be treated as a title defect.
6. TITLE INSURANCE. Seller shall, at Seller's sole cost and expense and at least 25 business days prior to
closing, furnish to Purchaser a marketable title insurance commitment, to be followed by an owner's marketable title
insurance policy (AL TA Form "B") from a title insurance company, insuring marketable title to the Property in the
amount of the Purchase Price. Seller shall require that the title insurer delete the standard exceptions of such policy
referring to: (a) all taxes, (b) unrecorded rights or claims of parties in p()s~~sSiO~,(~!~~~J?~tler~,(~)~e~?~~~d
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7. DEFECTS IN TITLE. If the title insurance commitment or survey furnished to Purchaser pursuant to this
Agreement discloses any defects in title which are not acceptable to Purchaser, Seller shall, within 90 days after notice
from Purchaser, remove said defects in title. Seller agrees to use diligent effort to correct the defects in title within the
time provided therefor, including the bringing of necessary suits. If Seller is unsuccessful in removing the title defects
within said time or if Seller fails to make a diligent effort to correct the title defects, Purchaser shall have the option to
either: (a) accept the title as it then is with a reduction in the Total Purchase Price by an amount agreed to by the parties,
(b) accept the title as it then is with no reduction in the Total Purchase Price, (c) extend the amount of time that Seller
has to cure the defects in title, or (d) terminate this Agreement, thereupon releasing Purchaser and Seller from all further
obligations under this Agreement.
8. INTEREST CONVEYED. At closing, Seller shall execute and deliver to Purchaser a warranty deed, conveying
marketable title to the Property in fee simple free and clear of all liens, reservations, restrictions, easements, leases,
tenancies and other encumbrances, except for those that are of record and acceptable encumbrances in the opinion of
Purchaser and do not impair the marketability of the title to the Property.
9. PREPARATION OF CLOSING DOCUMENTS. Upon execution of this Agreement, Seller shall submit to
Purchaser a properly completed and executed beneficial interest affidavit and disclosure statement as required by
Sections 286.23, and 380.08(2), Florida Statutes. Seller shall prepare the deed described in paragraph 8. of this
Agreement, Seller's closing statement, the title, possession and lien affidavit certified to Purchaser and title insurer in
Page 2
accordance with Section 627.7842, Florida Statutes, an environmental affidavit and all other documents and instruments
customary to similar transactions in Monroe County. All prepared documents shall be submitted to Purchaser for review
and approval at least 25 business days prior to closing.
10. PURCHASER REVIEW FOR CLOSING. Purchaser will approve orreject each item required to be provided
by Seller under this Agreement within 20 business days after receipt by Purchaser of all of the required items. Seller will
have 20 business days thereafter to cure and resubmit any rejected item to Purchaser. In the event Seller fails to timely
deliver any item, or Purchaser rejects any item after delivery, Purchaser may in its discretion extend the closing date.
II. EXPENSES. Seller will pay the documentary revenue stamp tax and all other taxes or costs associated with the
conveyance, including the cost of recording the deed described in paragraph 8. of this Agreement and any other
recordable instruments which Purchaser deems necessary to assure good and marketable title to the Property, as well as
any associated leases and other instruments and related agreements.
12. TAXES AND ASSESSMENTS. All real estate taxes and assessments which are or which may become a lien
against the Property shall be satisfied of record by Seller at closing. In the event the Purchaser acquires fee title to the
Property between January I and November I, Seller shall, in accordance with Section 196.295, Florida Statutes, place in
escrow with the county tax collector an amount equal to the current taxes prorated to the date of transfer, based upon the
current assessment and millage rates on the Property. In the event the Purchaser acquires fee title to the Property on or
after November I, Seller shall pay to the county tax collector an amount equal to the taxes that are determined to be
legally due and payable by the county tax collector.
13. CLOSING PLACE AND DATE. The closing shall be on or before 90 days after fmal conclusion of the last
required approvals of the related Section 380.032(3), F. S. agreement and lease; provided, however, that if a defect exists
in the title to the Property, title commitment, Survey, environmental site assessment, or any other documents required to
be provided or completed and executed by Seller, the closing shall occur either on the original closing date or within 60
days after receipt of documentation curing the defects, whichever is later. The date, time and place of closing shall be set
by Purchaser.
14. RISK OF LOSS AND CONDITION OF REAL PROPERTY. Seller assumes all risk ofloss or damage to the
Property prior to the date of closing (and after closing pursuant to the related lease of the property by Purchaser to Seller)
and warrants that the Property shall be transferred and conveyed to the Purchaser in the same or essentially the same
condition as of the date of Seller's execution of this Agreement, ordinary wear and tear excepted. However, in the event
the condition of the Property is altered by an act of God or other natural force beyond the control of Seller, Purchaser
may elect, at its sole option, to terminate this Agreement and neither party shall have any further obligations under this
Agreement. Seller represents and warrants that there are no parties other than Seller in occupancy or possession of any
part of the Property other than those occupants set forth in a complete listing of same to be provided by Seller in the time
in which to deliver evidence of title. Seller agrees to clean up and remove all abandoned personal property, refuse,
garbage, junk, rubbish, trash and debris from the Property to the satisfaction of Purchaser prior to closing.
15. RIGHT TO ENTER PROPERTY AND POSSESSION. Seller agrees that from the date this Agreement is
executed by Seller, Purchaser and its agents, upon reasonable notice, shall have the right to enter the Property for all
lawful purposes in connection with the this Agreement and any related agreements or leases. Seller shall retain
possession of the Property at closing pursuant to a contemporaneously executed lease.
16. ACCESS. Seller warrants that there is legal ingress and egress for the Property over public roads or valid,
recorded easements that benefit the Property.
17. DEF AUL T. If Seller defaults under this Agreement, Purchaser may waive the default and proceed to closing,
seek specific performance, or refuse to close and elect to receive the retum of any money paid, each without waiving any
action for damages, or any other remedy permitted by law or in equity resulting from Seller's default. In connection with
Page 3
any dispute arising out of this Agreement, including without limitation litigation and appeals, Purchaser will be entitled
to recover reasonable attorney's fees and costs.
18. BROKERS. Seller warrants that no persons, firms, corporations or other entities are entitled to a real estate
commission or other fees as a result of this Agreement or subsequent closing, except as accurately disclosed on the
disclosure statement required in paragraph 9. Seller shall indemnify and hold Purchaser harmless from any and all such
claims, whether disclosed or undisclosed.
19. RECORDING. This Agreement, or notice of it, and the contemporaneously executed lease may be recorded by
Purchaser in the Official records of Monroe County.
20. ASSIGNMENT. This Agreement may not be assigned by either Party without the prior written consent of the
other Party.
21. TIME. Time is of essence with regard to all dates or times set forth in this Agreement.
22. SEVERABILITY. In the event any of the provisions of this Agreement are deemed to be unenforceable, the
enforceability of the remaining provisions of this Agreement shall not be affected.
23. SUCCESSORS IN INTEREST. Upon Seller's execution of this Agreement, Seller's heirs, legal representatives,
successors and assigns will be bound by it. Upon Purchaser's approval of this Agreement and receipt of all required
public approvals, Purchaser and Purchaser's successors and assigns will be bound by it. Whenever used, the singular
shall include the plural and one gender shall include all genders.
24. ENTIRE AGREEMENT. This Agreement is to be contingent upon the full effectiveness of any related
agreements executed pursuant to Section 380.032(3), F.S., and a related 99-year lease from Purchaser to Seller
(substantially conforming to that attached hereto), as reasonably modified to reflect any differences emanating from
unique Property Characteristics and requirements of the 380 Agreement, such agreements containing the entire
agreement between the parties pertaining to the subject matter contained therein and superseding all prior and
contemporaneous agreements, representations and understandings of the parties. No supplement, modification or
amendment to these Agreements shall be binding unless executed in writing by the parties.
25. WAIVER. Failure of Purchaser to insist upon strict performance of any covenant or condition of this
Agreement, or to exercise any right herein contained, shall not be construed as a waiver or relinquishment for the future
of any such covenant, condition or right; but the same shall remain in full force and effect.
26. AGREEMENT EFFECTIVE. This Agreement or any modification, amendment or alteration thereto, shall not
be effective or binding upon any of the parties hereto until it has been executed by all of the parties hereto, and [mally
approved pursuant to any legal or regulatory requirements.
27. ADDENDUM. AHy-~ addendum attached hereto that is signed by the parties shall be deemed a part of this
Agreement.
28. NOTICE. Whenever either party desires or is required to give notice unto the other, it must be given by written
notice, and either delivered personally or mailed to the appropriate address indicated on the first page of this Agreement,
or such other address as is designated in writing by a party to this Agreement.
29. SURVIVAL. The covenants, warranties, representations, indemnities and undertakings of Seller set forth in this
Agreement shall survive the closing, the delivery and recording of the deed described in paragraph 8. of this Agreement
and Local Government's title to or possession of the Property.
Page 4
THIS IS TO BE A LEGALLY BINDING CONTRACT. IF NOT FULLY UNDERSTOOD, SEEK THE ADVICE OF
AN ATTORNEY PRIOR TO SIGNING.
REMAINDER OF PAGE IS BLANK
Page 5
Property Tax I.D.#:
AGREEMENT FOR SALE AND PURCHASE
SIGNATURE PAGE 1 of2
SELLERS
Witness
By:
Witness
STATE OF Florida )
COUNTY OF Monroe)
The foregoing instrument was acknowledged before me this day of
by He is personally known to me or produced
,2005,
as identification.
(NOTARY PUBLIC)
SEAL
Notary Public
(Printed, Typed or Stamped Name of
Notary Public)
Commission No.:
My Commission Expires:
Witness
By:
Witness
STATE OF Florida )
COUNTY OF Monroe)
The foregoing instrument was acknowledged before me this
. She is personally known to me or produced
day of
,2005, by
as identification.
(NOTARY PUBLIC)
SEAL
Notary Public
(Printed, Typed or Stamped Name of
Notary Public)
Commission No.:
My Commission Expires:
Page 6
(SEAL)
Property Tax I.D.#:
Attest_DANNY L. KOLHAGE, CLERK
By:
Deputy Clerk
Approved as to Form
By:
Date:
AGREEMENT FOR SALE AND PURCHASE
SIGNATURE PAGE 2 of2
Page 7
PURCHASER
MONROE COUNTY, FLORIDA
By:
MAYOR
ADDENDUM
(IMPROVEMENTS/PURCHASER)
A. Radon Gas. Radon is a naturally occurring radioactive gas that, when it has accumulated
in a bUlldlng In sufficient quantities, may present health risks to persons who are exposed to it
over time. Levels of radon that exceed federal and state guidelines have been found in buildings
in Florida. Additional information regarding radon and radon testing may be obtained from your
county public health unit. This notice is being provided in accordance with Section 404.056(8),
Florida Statutes. Purchaser may, at its sole cost and expense, have the buildings that will
remain on the Property inspected and tested for radon gas or radon progeny by a qualified
professional properly certified by the Florida Department of Health and Rehabilitative Services.
If radon gas or radon progeny is discovered, Purchaser shall have the option to either: (a)
accept the Property as it then is with no reduction in the Purchase Price or (b) terminate this
Agreement, thereupon releasing Purchaser and Seller from all further obligations under this
Agreement.
B. Wood Destroyinq Orqanis~ Inspection Report. Purchaser may, at its sole cost and expense,
obtain a Wood Destroying Organ~s~ Inspect~on Report made by a state licensed pest control firm
showing the buildings that are to remain on the Property to be visibly free of infestation or
damage by termites or other wood-destroying pests. If the report shows such infestation or
damage, Purchaser shall have the option to either: (a) accept the Property as it then is with no
reduction in the Purchase Price or (b) terminate this Agreement, thereupon releasing Purchaser
and Seller from all further obligations under this Agreement.
C. Maintenance of ImFrovements. Seller shall, if required by Purchaser, maintain the roofs,
doors, floors, steps, w~ndows, exterior walls, foundations, all other structural components,
major appliances and heating, cooling, electrical and plumbing syste~ on all improvements that
will remain on the Property in good working order and repair up to the date of closing.
Purchaser may, at its expense, have inspections made of said items by licensed persons dealing in
the repair and maintenance thereof. If the inspection reveals that any of the improvements that
will remain on the Property are in need of repair, Purchaser shall have the option to either:
(a) accept the Property as it then is with no reduction in the Purchase Price or (b) terminate
this Agreement, thereupon releasing Purchaser and Seller from all further obligations under this
Agreement.
SELLERS
PURCHASER
MONROE COUNTY, FLORIDA
By:
By:
Mayor
Date signed by Purchaser
Date s~gned by Seller
By:
Date signed by Seller
Page 8
MEMORANDUM
TO:
Planning eommission
FROM:
Heather Beckmann, Senior Planner
Through:
Aref Joulani, Planning Director
DATE:
May 3,2006
RE:
Overseas Redevelopment Company, LLC; Section 380.032 Agreement
I. Proposal
An agreement between the Department of Community Affairs (DCA),
Overseas Redevelopment Company, LLC (ORC), and Monroe County,
pursuant to the terms and conditions herein and S 380.032(3), Florida Statutes.
II. BACKGROUND
On January 18,2005 a pre-application meeting was held between Monroe County
and the applicants Scott Oropeza, Joe Cleghorn, Freddie Sayer and Tim Koenig to
determine the amount of lawfully established units at the Overseas Trailer Park.
At that time, the applicant was interested in demolishing the existing units and
building equal number of manufactured homes in a gated community with a
common pool and park.
FolIO\ving that meeting, staff produced a letter of understanding. Based on the
guidelines outlined in AI 03-108, permit history and the supporting evidence
supported fifty-six (56) residential units. Upon request by the applicant, Staff
revisited the LOU and further reviewed the documents including the utility
records and determined that an additional seven (7) lawfully established units
existed on the subject property, making the total sixty-three (63) residential units.
The current owners of Overseas Trailer Park, known as Overseas Redevelopment
Company, LLC (aRC) have drafted the attached 380 Agreement to redevelop
their site with workforce housing units as defined in the agreement.
III. ANALYSIS
DCA is authorized by S 380.032(3), Florida Statutes, to enter into an agreement
with any landowner, developer or other governmental agency as may be necessary
to effectuate the provisions and purposes of the Act, or any related rule.
Overseas Redevelopment Company, LLC - 380 Agreement
The 380 agreement requested is for the redevelopment of Overseas Trailer Park.
Specifically, ORC is requesting to redevelop Overseas Trailer Park with
'workforce housing' rather than market rate units. According to the agreement,
ORe will be redeveloped into a 'workforce housing' community. The eounty
intends on allocating 18 affordable ROGO units to ORe for the redevelopment
project and ORC will provide the County with 31 on-site ROGO exempt for a total
of 49 units of workforce housing to be built on-site. The County may substitute
thirty-one (31) of its affordable housing ROGO allocations for 31 ORC - ROGO
exemption units in which event ORC will assign the 31 ORC market rate RaGa
allocations to the eounty for its use. ORC shall be able to sell such units at the
maximum prices permissible under the workforce housing guidelines, including
but not limited to those prices in the moderate-income range. Currently, the
moderate income range as adopted by the Board at their April 2006 meeting is
160% ofthc median monthly household income for Monroe County.
In addition, ORC shall be able to transfer the remaining 32 market-rate ROGO
units off-site as market rate units as of right.
The County will pay to ORe the sum of Two Million Five Hundred Thousand
Dollars ($2,500,000.00) in cash in exchange for the transfer of aRC's fee simple
ovvnership in the property. The County will lease the property back to ORe for a
term of ninety-nine (99) years for a rental rate of Ten Dollars ($ 10.00) per year.
As tenant, ORe shall assume all the expenses and obligations of ownership of the
property.
IV FINDINGS OF FACT
1. Pursuant to Section 9.5-4, Monroe County eode does not have a definition for
'workforce housing'. Pursuant to the Agreement, until such time as Monroe
County shall adopt "workforce housing" regulations ORC shall comply in all
respect with the definition of Affordable housing: in the Monroe County eode
and shall additional require each unit purchaser or occupant to be a Member of the
Monroe eounty workforce, i.e. to be gainfully employed, full time in Monroe
eounty at the time of purchase or occupancy and to remain so employed for not
less than five (5) years thereafter.
2. All the remaining market rate units may be transferred o[f'-site as market rate as-
of-right through a certificate process. The receiver of the ROGO exemptions must
comply with all the applicable Monroe County regulations.
V RECOMMENDATION
Based on the findings of Fact the Planning and Environmental Resources staff
recommends APPROVAL to the Planning Commission of the proposed 380
Agreement.
Overseas Redevelopment Company, LLC.. 380 Agreement
2
PLANNING DEPARTMENT
Suite 400
2798 Overseas Highway
Marathon, Florida 33050
Voice: (305) 2892500
FAX: (305) 2892536
BOARD OF COUNTY COMMISSIONERS
Mayor Dixie M. Spehar, District I
Mayor Pro Tern, Charles McCoy, District 3
Comm. Murray E. Nelson, District 5
Comm. George Neugent. District 2
Camm. David P. Rice, District 4
March 17, 2005
Joe Cleghorn
5300 MacDonald Avenue
Key West, FL 33040
SUBJECT: PRE-APPLICATIONMEETING LETTER OF UNDERST ANDING FOR
BOUNTY FISHERIES, STOCK ISLAND, 00125350.000000.
Dear Mr. Cleghorn:
Pursuant to Section 9.5~43 of the Monroe County Code, this document shall constitute a letter of
understanding. On January 18, 2005, a pre-application conference regarding the subject property
was held in the Monroe County Planning Department in Marathon.
Attendees at the meeting included Scott Oropeza, Joe Cleghorn, Freddie Sayer, Tim Koenig
(hereafter referred to as the "Applicant"); and Ralph Gouldy, Senior Administrator of
Environmental Resources, Aref Joulani, Senior Administrator of Development Review and
Design, Tom Williams, Senior Planner and Heather Beckmann, Planner (hereafter collectively
referred to as "Staff' for the Planning Department).
Materials presented prior to the meeting included:
1) Pre-application conference request form; and
2) Site Plan "B" by Thomas E. Pope, P .A., Architect dated 08/06/04; and
3) Boundary Survey by Norby & O'Flynn Surveying, Inc., drawn by J.L.O dated 072804; and
4) Boundary Survey by Phillips & Trice Surveying, Inc.; and
5) Monroe County Property Map displaying each lot; and
6) Monroe County Property Record Card dated 09/28/04; and
7) State of Florida Department of Health Operating Permit #445400025 for Mobile Home/RV
Park Home Park issued on 09/16/03.
Page 1 of 15
At the pre-application meeting, the following items were discussed and/or agreed upon:
1. The applicant is interested in demolishing the existing fifty-six (56) mobile homes and seven
(7) RV spaces (Source: Florida Department of Health Permit) and building forty-seven (47)
manufactured homes in a gated community with a common pool and park.
2. According to the Property Record Cards, the size of the combined properties is 3.22 acres or
one-hundred forty~thousand six-hundred ninety-eight (140,698) square feet. The property is
physically located at 5300 MacDonald Avenue and further described as Stock Island Maloney
Subdivision PB155 lots Ithru 20 square 38 and part disclaimed First Avenue, Stock Island,
Monroe County, Florida. The Real Estate Number is 00125350.000000.
3. The property is zoned Urban Residential Mobile Home-Limited (URM-L). The applicant has
submitted an application for an amendment to the current land use map. The future land use
designation is Residential High (RH).
4. The applicant claims that the existing site contains Rate of Growth Ordinance (ROGO)
exempt dwelling units. The applicant is seeking a determination from the Planning Department
as to their lawful establishment. Administrative Interpretation 03-108 provides a consistent
method to determine the amount of lawfully established units for properties entitled to ROGO
exemptions. The goal is to determine that the units were on site in 1990, the year the 1990
census was counted and used to determine the number of existing residential units, which is
the basis of ROGO. The lawful establishment test is composed of two tiers of review. The first
Tier entails a review of permit history from the Division of Growth Management for the units
and/or floor area. Building Pennit history substantiates that there are thirty-eight (38) lawfully
established units on the subject parcels. The permits used to quantify this are outlines below:
A. Mom
oe County Bull lll? ermlt HIstory
Year Purpose of Lot Supporting Lawful
Permit # Issued Permit # Documentation Establishment
A8276 1974 install ac 16 n
electric and
M34 1975 ac 68 n
A329 1975 ttd 70 v
A159 1975 trailer 71 v
trailer
A124 1975 replacement 14 v
trailer
A115 1975 replacement 14 v
A168 1975 electric 14 n
A554 1975 sePtic tank 14 trailer imaae v
A 1356 1976 ttd 67 v
A1352 1976 ttd 2 zonino RU5P v
A1343 1976 ttd 34 v
A1041 1976 fence 63 n
. d' P
Page2of15
"
1 utility to I
A1035 I 1976 mobile home 2 v
install mobile I
home block I
A 1599 1976 and ttd 12 v
A1812 1976 ttd 38 v
A1222 1976 ttd 31 v
A1260 1976 ttd 48 v
A 1286 1976 screen room 30 v
A3189 1977 ttd 19 v
sun porch on
A2437 1977 slab 14 v
A2594 1977 ttd 30 v
A1943 1977 reolace trailer 69 v
A3528 1978 ooen Dorch 37 trailer imaoe v
A3546 1978 ttd 15 v
replace
A3910 1978 mobile home 28 v
A3963 1978 install AC 28 n
A4128 1978 reolace trailer 15 y
ttd and
replacement
A4495 1978 of trailer 38 v
install sub
A4491 1978 amo 38 n
A4415 1978 reolace trailer 29 v
A3153 1978 ttd 67 v
A3216 1978 ttd 56 v
I replace
A3710 1978 mobile home 12 zonina RU5P v
replace
A3308 1978 mobile home 69 v
install 200
A5389 1979 amp 8 SUDD to 53408 n
replace
A5340 1979 mobile home 8 n v
electric
A5676 1979 uodate 36 n
replace
A5516 1979 mobile home 36 v
replace existing trailer
A5856 1979 mobile home 57 imaoe v
replace
A4857 1979 mobile home 48 v
A4872 1979 electric 48 n
replace
A5051 1979 mobile home 8 v
A4709 1979 ttd 69 v
rebuild
A7460 1980 service 66 n
Page 3 of 15
A7222 I hook up
1980 trailer 24 v
replace
A7178 1980 mobile home 24 v
replace
A7047 1980 mobile home 69 v
install new
A6763 1980 center Dole 17 n
A8319 1981 new electric 14 n
A8276 1981 ttd 17 v
replace
A7908 1981 mobile home 61 v
uninstall amp
A7951 1981 subMfeed 61 v
A9842 1982 fence n
repair utility
A9258 1982 buildina
A9343 1982 ttd 26 mobile home y
electric
storage
A9352 1982 OUfDoses on Iv n
A9185 1982 electric 15 trailer reference v
A9185 1982 electric 16 trailer reference v
patio 8X32 trailer
A10020 1982 enclosure 5 picture v
sun porch on
A9937 1982 slab 16 trailer imaae y
A11217 1983 electric 52
. replace
A10549 1983 mobile home 57 v
A10333 1983 reoair seotic
existing trailer
A10219 1983 Dorch & fence 58 imaae v
Ai 0533 1983 fill n
A12079 1984 electric 17 n
A12079 1984 electric 18 n
A12079 1984 electric 18a n
A12079 1984 electric 19 n
A12676 1984 fill n
A15471 1986 TTD 60 v
A 17508 1987 Dorch & fence 22 v
showing just a
A 17408 1987 fence 38 slab n
ttd and
I A17124 1987 reolacement 23 v
A18419 1987 electric 65
trailer
A18682 1987 reolacement 18A trailer v
ttd and
A17679 1987 reolacement 19 v
8812047 1988 new sidina 20 v
Page 4 of1S
8812067 replace
1988 mobile home 23 v
8810913 1988 lattice fence 38 n
8810914 1988 wood fence 48 n
wood fence
8810998 1988 and shed 50 n
RV Itrailer
8810603 1988 replacement 7 y
remove trailer
and replace
8812300 1988 new 35 v
8810440 1988 build a shed 48 n
trailer
replacement
8811126 1988 and tie down 6 v
replace
electric to 3
existing and
8810353 1988 trailers 4 v
mobile home
8810783 1988 reolacement 50 v
improvement
8911337 1989 s 12 n
8911760 1989 shed repair 51 n
demolition of
8911666 1989 roof 45 V
fence along
8912282 1989 property n
trailer
replacement
8811223 1989 and tie down 3 v
9011253 1990 repair roof 27A n
connect trailer
9011556 1990 to sewer 18A v
connect trailer
9011557 1990 to sewer 60 v
9011307 1990 RV tie down 7 v
septic tank
9011545 1990 repair n
9011378 1990 RV tie down 5 v
trailer 22
replacement and
9010802 1990 and tie down 23 v
Interior
9112177 1991 renovations 29 v
52
and
9112311 1991 reoair septic 53 v
9112596 1991 fill n
demolition of
asphalt
9112597 1991 roadway n
Page 5 of 15
9113671 trailer for
1991 future office 39 y
33
repair two and
9113440 1991 meter centers 34 y
demolition of 12
double wide and
9113840 1991 trailer 13 y
demolition of 20
double wide &
91138341 1991 trailer 21 y
10,
build electric 11,
9213941 1992 meter 12 n
demolition of
9214991 1992 mobile home 31 y
30,
31,
9215270 1992 new electric 32 y
45,
48,
upgrade 47,
9215490 1992 electric 54 y
upgrade
electric and 28
replace and
9315865 1993 service 29 y
upgrade
9316463 1993 electric 35 y
21
and
9316520 1993 RV tie down 1 y
24,
25,
26
Upgrade and
9316714 1993 electric 27 v
remove
asphalt road
9315531 1993 top n
upgrade to trailer in
9410197 1994 electric 22 notes y
upgrade
9410197 1994 electric 23 y
roof
replacement
on 600 sq foot
9410095 1994 commercial commercial n
demolish
deck and
replace
9411404 1994 mobile 60 Y
Page 6 of 15
951154 1995 replace meter 55 ?
951154 1995 replace meter 60 ?
951154 1995 replace meter 61 ?
951154 1995 replace meter 19A ?
install
windows and
repair comm PRe from 1995
951440 1995 blda 35 built in 1944 n
fence
9510736 1995 replacement 35 includes survey v
upgrade
9511263 1996 electric 63 maD with trailer V
upgrade
9511263 1996 electric 64 maD with trailer V
upgrade
9511263 1996 electric 65 map with trailer v
*ttd - Trailer Tie Down
. In conclusion, between 1974 and 1990, a total of forty (40) units received permits from
Momoe County. The units at the time had the following corresponding lot numbers; 2, 3, 4,
5,6, 7, 8, 12, 14, 15, 16, 17, 18A, 19,20,22,23,24,26,28,29,30,31,34,35,36,37,38,
45,48, 50, 56, 57, 58, 60, 61, 67, 69, 70, and 71. In 1990, unit #'s 8 and 56 no longer
existed and the permits received for these units came from the late 70's. Therefore, the
permit history lawfully establishes thirty-eight (38) units.
. The most substantial pieces of evidence from the records search was a Boundary Survey
dated 7/5/1990 by Phillips and Trice Surveying, lne (with Permit # 9510736) and a 1991
sketch (with permit # 9112311) of each lot numbered. The Boundary Survey shows there
were fifty-six (56) units on site in 1990; and the 1991 sketch indicates the same amount.
These two pieces of additional information clearly identify the exact amount of units on
site in 1990.
B. The second Tier of review may be used to establish that the property was lawfully-established if
a permit or other Growth Management approval is not available. This Tier includes the following;
. Aerial Photographs showing existence of the dwelling unit structure prior to 1986; and
. County property record card showing the existence of the unit prior to 1986; and
. Utility records that show the use being served; and
. The use could have been a permitted use prior under the pre 1986 zoning of the property;
and
. Occupational Licenses (1986 to 1991) if available.
The results from this information for this parcel are outlined below;
. Aerial photos show units, but the amount is unclear; and
. 1990 County Property Record Card indicate that the use served was a commercial, mobile
home park; and
Page 7 of 15
. 1995 Permit # 9510154 for the replacement of electric meters. Included in this permit are
Lot #'s and the date the meters were installed and removed. According to this piece of
information, fifty-nine (59) residential meters were active in 1990; and
. Florida Keys Aqueduct Authority
o Letter from Kip E. Waite dated 06/23/04 indicating sixty-three (63) units have been
active since 1985; and
. 1986 zoning - BU-2 medium business district. 1987 zoning URM Urban Residential
Mobile Home.
C. Mobile home and RV parks require additional information and include the following;
. Mobile home parks surveys taken in the 1980's and 1990's by the County; and
. Health Department Licenses; and
. Demolition permits.
The results from this information are outlined below;
. Monroe County Mobile Home Count of 1988
o 35 mobile homes and eleven (11) RV's for a total of forty-six (46) units.
. Monroe County List ofRV Parks dated on February 19, 1992
o 54 mobile homes and seven (7) RV's for a total of sixty-one (61) units.
. State of Florida Department of Health Permit
o No historical permits available.
5. in conclusion, the following evidence supports that there were fifty-six (56) residential units on
the property in 1990. Of those, forty-nine (49) were permanent and seven (7) were RV. Note:
One of the spaces on the survey has historically been used as an office site and was not counted
as a residential unit (pennit # 90 I 0802).
6. Pursuant to Section 9.5-268 of the Monroe County Code (MCC), the owners of land upon
which a dwelling unit or a mobile home used as a principle residence prior to the effective date
of the Plan was lawful on the effective date of this Chapter shall be entitled to a density of one
(1) dwelling unit for each such unit in existence on the effective date of the Chapter. Therefore,
the allocated density for the property's land use district is not applicable for this development.
The applicant may replace all permanent dwelling units that have been lawfully established
regardless of the land use density.
7. Section 9.5-268 of the MCC also distinguishes between a principle and a transient residence.
Lawfully established transient residential units shall not be entitled to one (1) dwelling unit for
each such unit in existence. Section 9.5-4 (T -4) of the MeC defines a transient residential unit
as a dwelling unit used for transient housing such as a hotel or motel room, or space for
parking a RV or travel trailer.
Page 8 of15
8. A letter and a map of the site depicting which lUlits were long term (permanent) RV spaces was
submitted by Tim J. Koenig dated February 3, 2005. These units were Wed 1, 2, 10, 12, 12, 13,
18, and 63. Staff reviewed permit history, compared the units on site to the 1990 Boundary
Survey and Sketch, and conducted a site visit to aid in determining if in fact the RV's were
used as a permanent residence.
9. Staffhas determined that all seven (7) units are in fact used for transient purposes. An outline
of the evidence used for the determination is attached below;
No-
new
1 RV 1.JPG Mar-05 no model
Man said he's
been there for 6
2 RV 2.JPG months. Dee-05 es NO
12 RV 12.JPG Se -05 no NO
13 RV 13.JPG as No
Remaining
part of Lot
14 48 RV 14.JPG For Sale No
Used to
be part of
one lot
(lots 18,
18 19,20 No late No
63 RV 63.JPG Mar-OS no No
(pictures are included at the end of this letter as well as the 1990 survey comparing the existing
units to those in 1990)
10. The applicant expressed an interest in replacing all the lawfully established units with new
manufactured homes. The County's Floodplain Administrator discussed with Staff the
manufactured home requirements from FEMA Specifically, manufactured homes must be
reinforced with three (3) foot FEMA approved piers in order to meet the State anchoring
requirements, New Manufactured homes must be built to withstand Wind Zone 3, Exposure C
(HUD Sticker). If the applicant chooses to replace the current units with used manufactured;
the used manufactured must have been built after July of 1994.
Page 9ofl5
11. The applicant plans to condominiumize the land; which would relinquish the applicant from
subdividing and platting the parceL The applicant shall comply with Chapter 718 of the Florida
Statutes while including a management plan for the common, shared and private areas.
12. In addition to the requirements of Florida Statutes pertaining to condominiums; Staff requests
an emergency exit and an on site laundry facility. Further, the process of redeveloping the site
must be taken through the Minor Conditional Use process.
13. The minimum yard requirements for the URM~L zoning district are as follows: a front yard
setback of ten (10), a rear yard setback of ten feet (10), and a side yard setback such that one
side yard must be ten (10) feet for a combined total of twenty (20) feet. However, to remain
consistent with the community character and the setback of the surrounding properties; staff is
requesting the applicant apply a twentyMfive (25) foot front yard setback along MacDonald
Avenue.
14. The subject property is in an AE-9 Flood Insurance Rate Map (Fl.RJ.\1) panel 1798.
15. For any portion of the proposed development in the A-Zone, Section 9.5317 (b) (1) d of the
MCC applies which requires the space below the lowest floor of an elevated structure shall be
used exclusively for parking of vehicles, elevators, limited storage or building access purposes.
As required by Federal Emergency Management Agency (FEMA), the ground floor enclosure
can be built to a maximum of two-hundred ninety-nine (299) square feet using opaque
materials. Any additional portion of an enclosed area of greater than two~hundred ninety-nine
(299) square feet shall only be enclosed with screen or lattice.
16. Single family dwelling units require a minimum of two (2) parking spaces per unit as stated in
Section 9.5-232. Parking shall not be located in the required setbacks. Given the forty-seven
(47) lawfully established units, the applicant must provide at a minimum ninety-four (94)
parking spaces.
17. Monroe County Code requires a vegetated buffer along land use district boundary buffers.
This property will require several of these buffers. The northern property line shall require a
class "C" district boundary buffer. This buffer must run the entire length of 500 feet. Staff
recommends a width often (10) feet for this buffer due to setback requirements. At this length
and width the buffer will require a total of twenty five (25) canopy trees, ten (10) understory
trees and 100 shrubs. The eastern and the western property lines will both require a district
boundary buffer of class "C". These buffers shall run along both property lines for the full
distance of 310 linear feet. Staff recommends a width of ten (10) feet for both of these
required buffers. At this width and length, these two buffers will each require a total of sixteen
(16) canopy trees, seven (7) understory trees and sixty two (62) shrubs. Along the rear property
line the land use changes approximately one third of the total distance from the eastern comer,
thus the rear property line will need two different classes of buffer. The western two thirds of
this property line is a boundary between the URM-L and the NA land use districts. This
portion ofthe property shall require a class "E". The minimum width allowable for this buffer
is thirty (30) feet. This buffer shall commence at the south western comer andwn a total
Page 10 of15
length of310 linear feet. At a width of thirty (30) feet and a length of310 feet this buffer will
require a total of thirty eight (38) canopy trees, nineteen (19) understory trees and 112 shrubs.
The remainder 0 the rear property line shall have a class "c" buffer running a length of 190
feet. Staff recommends that this buffer be a width of ten (10) feet. This buffer will require a
total of ten (10) canopy trees, four understory trees and thirty eight (38) shrubs.
18. Monroe County Code requires that all applications for development include a stonnwater
management plan which includes a detailed description of how and where stonnwater will be
retained on site. This plan shall be included with any application for development and shall be
approved by the county biologist or engineer as appropriate.
19. The current edition of the United States Fish and Wildlife Habitat Listing for Monroe County
does include this parcel as habitat which requires coordination upon application for
development. This means additional coordination with the United States Fish and Wildlife
Service will be required to obtain development approval on this parcel.
20. The rear property line for this property also coincides with 310 linear feet of wetland area. This
will require a vegetated setback. However, a buffer is also required along this area of the
property and it will suffice for the vegetated setback.
21. As stated above the applicant will be required to provide at minimum ninety-four (94) parking
spaces based on the submitted site plan. Monroe County code requires that a development
proposing more than six (6) parking spaces shall be required to install and maintain parking lot
landscaping. Based on a land use designation of URM-L a landscaping standard of class "e"
shall be applied. This will require a total planting area of 1,684 square feet. Within this
planting area, which must be located within five feet of parking areas, a total of eight (8)
canopy trees and forty (40) shrubs are required.
If this property is subject to a conditional use approval, the Planning Commission is empowered
under Section 9.563 to modify or deny any application based on their review of the
appropriateness of the proposed development within the context of surrounding properties and
compliance with the LDRs and 2010 Comprehensive Plan. In Section 9.5-65 the Planning
Commission and the Planning Director are required to consider all aspects of the development,
impacts on the community and consistency with the goals, objectives and standards of the plan and
LDRs before granting conditional use approval, approval with conditions or denial of a project.
Therefore, the intensities, densities and possibilities for setback waivers detailed in this LOU are
subject to the Planning Commission and/or the Planning Director conditional use review and
approval.
Pursuant to Section 9.543 of the Monroe County Land Development Regulations (LDRs), you are
entitled to rely upon the representations set forth in this letter of understanding as accurate under
the regulations currently in effect. This letter does not provide any vesting to the existing
regulations, if the Plan or LDRs are amended the property and/or project will be required to be
consistent with all goals, objectives and standards at the time of development approval. The
Planning Department acknowledges that all items required as a part of the application for
Page 11 of 15
development approval may not have been addressed at the January 18, 2005 meeting, and
consequently reserves the right for additional department comment. The information provided in
this letter may be relied upon, with the previous disclaimers, for a period of three years. The
Planning Director upon the request of the landowner may review and reaffirm the representations
set forth in this letter for an additional period oftime.
We trust that this information is of assistance. If you have any questions regarding the contents of
this letter, or if we may further assist you with your project, please feel free to contact our
Marathon office at (305) 289-2500.
Sincerely yours,
d'
J:,IY~ ~d
K. Marlene Conaway, Director
Planning and Environmental Resources
CC: Ervin Higgs, Property Appraiser
Timothy J. McGarry, Alep, Director of Growth Management
Beth Lafleur, Director ofIsland Planning
Aref Joulani, Senior Administrator of Development Review
Andrew Trivette, Senior Biologist
Ronda Nonnan, Director of Code Enforcement
Tom Williams, Senior Planner
Heather Beckmann, Planner
Page 12 of 15
RV -1
RV~2
RV - 12
Page 13 of 15
RV - 13
RV- 14
RV - 63
Page 14 of 15
(
"
RV-8
(not included, clearly an RV)
Page 15 of 15
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PROPOSED LEASE
LEASE
BET\VEEN
MONROE COUNTY
"LESSOR"
AND
"LESSEE"
DATED
,2006
Table of Contents
Article Title Page No.
I Definitions 3
II Demised Premises 5
III Term 6
IV Rent 6
V Non-Subordination 7
VI Payment of Taxes 8
VII Mechanics' Liens 9
VIII Governing Law, Cumulative Remedies 10
IX Indemnification of Lessor 10
X Insurance 11
XI Insurance Premiums 15
XII Assignment 15
XIII Condemnation 20
XIV Construction 21
XV Mortgage Financing 23
XVI Default 28
XVII Repair Obligations 31
XVIII Additional Covenants of Lessee, Lessor 31
XIX Representations, Warranties of Title and Quiet 33
Enjoyment
XX Miscellaneous 33
Page 2 of 39
GROUND LEASE AGREEMENT
THIS LEASE made and entered into in Key West, Monroe County, Florida, on this
_ day of ,2006, by and between MONROE COUNTY (referred to as
the "Lessor") and (referred to as the "Lessee").
RECITALS
WHEREAS, Lessor is the OVVller in fee simple of the property located at
, Monroe County, Florida, and more particularly described on the
attached Exhibit "A" (hereinafter "Property"); and,
WHEREAS, it is Lessor's intent that the Property be developed to provide affordable
housing for Monroe County; and,
WHEREAS, Lessee desires to develop the Property and build at
least affordable units (provided allowed by County regulations and
hereinafter the "Affordable Housing Units"), and Initial Lessee may rent/lease any units not
sold to qualified owner-occupants; and,
WHEREAS, in order to preserve the affordability of the units to be developed on the
Property, Lessor desires to lease the Property to Lessee for ninety-nine (99) years, subject to
the Affordable Restrictions as set forth herein; and,
NOW THEREFORE, in consideration of the mutual covenants and obligations
contained herein, the receipt and sufficiency of which are hereby acknowledged, the parties
agree as follows:
ARTICLE I
Definitions
"Affordable Housing Unit" shall mean a residential housing unit that meets the
moderate income requirements set forth in Chapter 9.5 and any other applicable sections of
the Monroe County Land Development Regulations, as may be amended from time to time,
said restrictions to encumber the Property for a term of ninety-nine (99) years.
"Affordable Restrictions" shall mean the affordable guidelines as set forth in Chapter
9.5 and any other applicable sections of the Monroe County Land Development
Regulations, and as hereinafter amended, except that in no event shall the lawfully
permissible sales price for the Affordable Housing Unit be more than the sales price for
moderate income housing as set forth in the Land Development Regulations in effect at the
time of execution of this Lease. The substance of the Affordable Restrictions may be
amended in the Lessor's legislative discretion, particularly with respect to administrative,
Page 3 of 39
monitoring and enforcement mechanisms, but shall not materially diminish the resale value
or reasonable alienability of an Affordable Unit. It is the intent and purpose and shall be
the effect of this Lease and any Affordable Restrictions to ensure that the affordability of
affordable units and dedicated real property is maintained and enforced such that any
administrative rule, policy or interpretation thereof, made by Lessor or its designees
relating to the maximum total amount permitted to be in any way involved in a purchase or
rental transaction (including but not limited to purchase price, lease assignment fees or any
other compensation received in or outside of a related transaction) shall never exceed the
affordability criteria reasonably established by Monroe County for the dwelling units
involved. In every case construction and interpretation of terms, conditions and
restrictions imposed by this Lease and the Affordability Restrictions shall be made in favor
of an interpretation that ensures long term affordable values.
"Association" shall mean the condominium, homeowners or similar community
association customarily used in planned developments to manage certain aspects of
community or planned development living (e.g., infrastructure management, rules and
regulations, enforcement mechanisms and recreational facilities).
"Commencement Date" shall mean the date when all constructed Affordable Housing
Units contemplated herein have received certificates of occupancy.
"Demised Premises" shall mean the property leased pursuant to this Lease for
development of the Affordable Housing Units. The Demised Premises is depicted on
attached Exhibit "B" and legally described on attached Exhibit "A". Demised Premises,
where the context requires and the construction is most appropriate, shall also mean
portions of the Demised Premises and any improvements erected thereon.
"Effective Date" shall mean the date this Lease is fully executed and delivered by all
parties and the date that the Lessee shall be entitled to begin to occupy the Demised
Premises for purposes of development and construction of the Project.
"Initial Lessee" means
developer of the Affordable Units.
"Lease" shall mean this lease for the creation of the Affordable Housing Units on the
Demised Premises, and where the context so requires, any similar authorized master lease
provided for herein.
"Lease Year" shall mean the twelve (12) month period beginning on the
Commencement Date and each twelve month period thereafter throughout the Term of this
Lease.
"Lessor" means MONROE COUNTY, or its assigns or designees. Lessor as used
herein, where the context requires, shall mean an agency or party designated by the Lessor
to administer or enforce the provisions of this Lease.
Page 4 of 39
"Lessee" means the Initial Lessee and its successors and assigns, including the
Association created for the unit owners/tenants, as well as the individual unit
owners/tenants.
"Project" shall mean the required development of the Demised Premises, primarily
the required construction of forty (40) Affordable Housing Units, but also including related
infrastructure, securing of required development approvals and permits, financing and
marketing of the Affordable Units and creation of any required governing Association.
"Rent" shall mean any sum of money due to the Lessor under this Lease for any
reason. The term Rent as used herein, should not be misconstrued to preclude definition of
rent, rental rates and other such other meanings as may be provided for in Subleases and/ or
the Affordable Restrictions.
"Sale" and Sell" as used herein shall be broadly and liberally construed so as to
encompass, where contextually appropriate, any lease, sale, grant, rental, assignment or
other conveyance of an interest in a portion of the Demised Premises, but excluding any
security, mortgage, note or other interest of a form and type customarily used with purchase
money or home equity loans.
"Sublease" shall mean any combination of instruments that grant, conveyor
otherwise transfer a possessory and or title interest to any portion of the Demised Premises,
but excluding any security, mortgage, note or other interest of a form and type customarily
used with purchase money or home equity loans. The title or exact nomenclature used to
describe such instruments may vary to suit particular circumstances and shall lie within
Initial Lessee's reasonable discretion and still remain within the meaning herein intended
(e.g., a "deed of improvements" may in a given context be construed as an effective sublease
for purposes herein). It is intended that a Sublease constitute such instruments that
effectuate qualified end-user, title, possession and/or use of Affordable Units developed on
the Demised Premises. A Sublease, as used herein, regardless of final form and substance,
must be approved by the Lessor, which approval shall not be unreasonably withheld.
"Term" shall mean the date when all constructed Affordable Housing Units
contemplated herein have received certificates of occupancy, and continuing for ninety-nine
(99) years, plus any agreed upon extension of this Lease.
ARTICLE II
Demised Premises
Section 2.01 Lessor's Demise. Upon the terms and conditions hereinafter set forth,
and in consideration of the payment of the rents and the prompt performance by the Lessee
of the covenants and agreements, to be kept and performed by the Lessee, the Lessor does
lease, let, and demise to the Lessee and the Lessee hereby leases from the Lessor, the
following described premises, situate, lying and being in Monroe County, Florida:
Page 5 of 39
See Attached Exhibits "A" and "B"
Section 2.02 Conditions. The demise is likewise made subject to the following:
(a) Conditions, restrictions and limitations, if any, now appearing of
record;
(b) Zoning ordinances ofthe County of Monroe, State of Florida, and any
other applicable governmental body now existing or which may hereafter exist by reason of
any legal authority during the life of this Lease;
( c) The proper performance by the Lessee of all of the terms and
conditions contained in this Lease.
ARTICLE III
Term
To have and to hold the Demised Premises for a term of ninety-nine (99) years
commencing the date the Affordable Housing Units have been completed and issued
certificates of occupancy, the Commencement Date, and ending ninety-nine (99) years
thereafter, both dates inclusive, unless sooner terminated, or extended, as hereinafter
provided. Lessee shall be given possession on the Effective Date and the terms and
conditions set forth herein shall be binding on the parties as of the Effective Date. Lessee
shall have the right to occupy the Demised Premises as of the Effective Date in order to
allow Lessee to commence construction, as well as other activities related to the
development and construction of the Project. As herein set forth, the Term will not
commence until the Affordable Housing Units are completed and certificates of occupancy
have been issued for all such Affordable Units, said date to be evidenced by the
Commencement Date Agreement that the parties will execute in substantially the same
form as that set forth in Schedule 1, upon completion of construction.
ARTICLE IV
Rent
Section 4.01. Lessee covenants and agrees to pay to Lessor promptly when due,
without notice or demand, and without deduction or offset, Rent for the Demised Premises
during the Term as follows:
(a) Annual Base Rent. Lessee shall pay to Lessor Annual Base Rent
throughout the term of this Lease beginning on the Commencement Date, in the
amount ofTen Dollars ($10.00) per Lease Year or partial Lease Year. Lessee shall
Page 6 of 39
pay to Landlord said Annual Base Rent on the first day of the second month of each
Lease Year throughout the term of this Lease without notice or demand.
Section 4.02. All amounts payable under Section 4.01 hereof, as well as all other
amounts payable by Lessee to Lessor under the terms of this Lease, shall be payable in
lawful money of the United States which shall be legal tender in payment of all debts and
dues, public and private, at the time of payment, each payment to be paid to Lessor at the
address set forth herein or at such other place within the continental limits of the United
States as Lessor shall from time to time designate by notice to Lessee. Except for any
income tax payable by the Lessor, Lessee shall pay any and all taxes, including any local
surcharge or other tax, on the Rent payable pursuant to this Lease in addition to the sums
othervvise set forth herein.
Section 4.0~. It is intended that the Rent provided for in this Lease shall be
absolutely net to Lessor throughout the Term, free of any taxes, costs, utilities, insurance
expenses, liabilities, charges or other deductions whatsoever, with respect to the Demised
Premises and/ or the ownership, leasing, operation, maintenance, repair, rebuilding, use or
occupation thereof.
Section 4.04. All amounts payable by Lessee to Lessor under any of the provisions
of this Lease, if not paid when due as provided for in this Lease, shall bear interest at the
highest rate allowable under Florida law from the time they become due until paid in full by
Lessee. In addition, Lessee shall pay a late fee in the amount of ten (10%) percent of any
amount due from Lessee to Lessor which is not paid within ten (10) days of the due date for
such payment as to any sums due for Rent and within thirty (30) days for any other sums
due from Lessee pursuant to this Lease; provided, however, such payment shall not excuse
or cure any default by Lessee under this Lease. It is agreed by the parties hereto that said
late fee should be used for setoff against reimbursement to Lessor for collection charges
incurred as a result of the overdue rent which may include but shall not be limited to related
attorneys' fees, regardless of whether suit is brought. Such late fee shall be in addition to
any interest payable by Lessee as set forth herein from Lessee's failure to pay any Rent due
hereunder. In the event that any check, bank draft, order for payment or negotiable
instrument given to Lessor for any payment under this Lease shall be dishonored for any
reason whatsoever not attributable to Lessor, Lessor shall be entitled to charge Lessee an
administrative charge of Fifty Dollars ($50.00). In addition, Lessor shall be reimbursed by
Lessee for any costs incurred by Lessor as a result of said instrument being dishonored.
ARTICLE V
Non-Subordination
Notwithstanding anything to the contrary contained in this Lease, the fee simple
interest in the Demised Premises shall not be subordinated to any leasehold mortgage, lien
or encumbrance of any nature whatsoever. Furthermore, the Lessor's right to receive
payment or performance under the terms of this Lease or adherence to any of its conditions
Page 7 of 39
(or those of any Sublease or related conveyance) shall not be subordinated to any debt or
equity financing, leasehold mortgage} lien, encumbrance or obligation of any nature
whatsoever.
ARTICLE VI
Payment of Taxes and Utilities
Section 6.01 Lessee's Obligations. As additional Rent, the Lessee shall pay and
discharge, as they become due, promptly and before delinquency} all taxes, assessments,
water and sewer rents, rates and charges, transit taxes} charges for public utilities, excises,
levies, licenses and permit fees and other governmental charges, general and special,
ordinary and extraordinary, unforeseen and foreseen, of any kind and nature, whatsoever,
which at any time during the term of this Lease may be assessed, levied} confirmed,
im posed upon, or grow or become due and payable out of or in respect of} or become a lien
on, the Demised Premises, or any part thereof or any appurtenance thereto, or otherwise
arising out of the income received by the Lessee from the sale of the affordable units to
subtenants, or any document (to which the Lessee is a party) creating or transferring an
interest or estate in the Demised Premises. With regards to special assessments, if the right
is given to pay either in one sum or in installments, Lessee may elect either mode of
payment and Lessee's election shall be binding on Lessor.
Section 6.02 Obligations Altered. Nothing herein shall require the Lessee to pay
municipal, state, or federal income taxes assessed against the Lessor, municipal, state, or
federal capital levy, estate, gift, succession, inheritance or transfer taxes of the Lessor, or
Lessor's legal representative, corporate franchise taxes imposed upon any corporate owner
of the fee of the Demised Premises; provided, however, that if at any time during the term of
this Lease the methods of taxation prevailing at the commencement of the term hereof shall
be altered so as to cause the whole or any part of the taxes, assessments, levies, impositions
or charges now levied, assessed and imposed, wholly or partially as a capital levy, or
otherwise, on the rents received therefrom, or of any tax, corporation franchise tax,
assessments, levy (including, but not limited to any municipal, state or federal levy),
imposition or charge, or any part thereof, shall be measured by or based in whole or in part
upon the Demised Premises and shall be imposed upon the Lessor, then all such taxes,
assessments, levies, impositions or charges} or the part thereof so measured or based, shall
be paid and discharged by the Lessee. All rebates on account of any taxes, rates, levies,
charges or assessments required to be paid shall belong to Lessee.
Section 6.0~ Mode of Payment. The Lessee shall pay the taxes and other charges as
enumerated in this Article and shall deliver official receipts evidencing such payment to the
Lessor, which payment of taxes shall be made and the receipts delivered, at least thirty (30)
days before the tax, itself, would become delinquent in accordance with the law then in
force governing the payment of such tax or taxes. If, however, the Lessee desires to contest
the validity of any tax or tax claim, the Lessee may do so without being in default hereunder,
provided the Lessee gives the Lessor notice of the Lessee's intention to do so and furnishes
Page 8 of 39
the Lessor or the applicable governmental agency with a bond with a surety made by a
surety company qualified to do business in the State of Florida or pays cash to a recognized
escrow agent in Monroe County, one and one half (1112) times the amount of the tax item or
items intended to be contested, conditioned to pay such tax or tax items when the validity
thereof shall have been determined, and which vvritten notice and bond or equivalent cash
shall be given by the Lessee to the Lessor, not later than sixty (60) days before the tax item
or items proposed to be contested would otherwise become delinquent.
Section 6.04 Lessee's Default. If the Lessee shall fail, refuse or neglect to make any
of the payments required in this Article, then the Lessor may pay the same, and the amount
or amounts of money so paid, including reasonable attorneys' fees and expenses which
might have been reasonably incurred because of or in connection with such payments,
together with interest on all such amounts, at the highest rate allowed by law shall be repaid
by the Lessee to the Lessor, upon the demand of the Lessor, and the payment thereof may
be collected or enforced by the Lessor in the same manner as though such amount were an
installment of rent specifically required by the terms of this Lease to be paid by the Lessee
to the Lessor, upon the day when the Lessor demands repayment thereof or reimbursement
therefor of and from the Lessee; but the election of the Lessor to pay such taxes shall not
waive the default thus committed by the Lessee.
Section 6.05 Proration. The foregoing notwithstanding, the parties hereto
understand and agree that the taxes for the first year (beginning on the Effective Date) and
the last year of the Term shall be prorated proportionately between the Lessor and the
Lessee.
ARTICLE VII
Mechanic's Liens
Section 7.01 No Lien. The Lessee shall not have the power to subject the interest of
the Lessor in the Demised Premises to any mechanic's or materialmen's liens or lien of any
kind.
Section 7.02 Release of Lien. The Lessee will not permit or suffer to be filed or
claimed against the interest of the Lessor in the Demised Premises during the continuance
of this Lease, any lien or claim of any kind (excepting for the mortgagees) referred to in
Article XV), and if such lien be claimed or filed, it shall be the duty of the Lessee, within
thirty (30) days after the Lessee shall have been given written notice of such a claim having
been filed, or within thirty (30) days after the Lessor shall have been given written notice of
such claim and shall have transmitted written notice of the receipt of such claim unto the
Lessee (whichever thirty (30) day period expires earlier) to cause the Demised Premises to
be released from such claim, either by payment or by the posting of bond or by the payment
to a court of competent jurisdiction of the amount necessary to relieve and release the
Demised Premises from such claim, or in any other manner which, as a matter oflaw, \\rill
result, within such period of thirty (30) days, in releasing the Lessor and the title of the
Lessor from such claim; and the Lessee covenants and agrees, within such period of thirty
Page 9 of 39
(30) days, so as to cause the Demised Premises and the Lessor's interest therein to be
released from the legal effect of such claim.
Section 7.0~ Lessee's Default. If the Lessee shall fail, refuse, or neglect to perform
its obligations as required in this Article, then the Lessor may pay any sums required to
cause the Demised Premises and the Lessor's interest therein to be released from the legal
effect of such claim and the amount or amounts of money so paid, including reasonable
attorneys' fees and expenses which might have been reasonably incurred because of or in
connection with such payments, together with interest on all such amounts at the highest
rate allowed by law shall be repaid by the Lessee to the Lessor, upon the demand of the
Lessor, and the payment thereof may be collected or enforced by the Lessor in the same
manner as though such amount were an installment of rent specifically required by the
terms of this Lease to be paid by the Lessee to the Lessor, upon the day when the Lessor
demands repayment thereof or reimbursement therefor of and from the Lessee; but the
election of the Lessor to pay such amount shall not waive the default thus committed by the
Lessee.
ARTICLE VIII
Governing Law, Cumulative Remedies
Section 8.01 Governing Law. All of the rights and remedies of the respective parties
shall be governed by the provisions of this instrument and by the laws of the State of
Florida.
Section 8.02 Cumulative Remedies. During the continuance of the Lease, the Lessor
shall have all rights and remedies which this Lease and the laws of the State of Florida
assure to it. All rights and remedies accruing to the Lessor shall be assignable in whole or in
part and be cumulative, that is, the Lessor may pursue such rights as the law and this Lease
afford to it in whatever order the Lessor desires and the law otherwise permits vvithout
being compelled to resort to anyone remedy in advance or in waiver or compromise of any
other.
ARTICLE IX
Indemnification of Lessor
Section Q.Ol Indemnification by Lessee. During the Term of the Lease, the Lessee
will indemnify, defend and save harmless the Lessor against any and all claims, debts,
demands or obligations which may be made against the Lessor or against the Lessor's title
in the Demised Premises, arising out of, or in connection with, or in any way related to the
Demised Premises, except to the extent such claims may be caused by negligence or
misconduct of the Lessor (or its agents or employees in the conduct of work for or at the
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direction of the Lessor); and if it becomes necessary for the Lessor to respond to any claim,
demand or unanticipated matter or to defend any action seeking to impose any such
liability, the Lessee will pay the Lessor all costs of court and reasonable attorneys' fees
incurred by the Lessor in effecting, preparing for or anticipating such response or defense in
addition to any other reasonable sums which the Lessor may be called upon to pay by
reason of the entry of a judgment against the Lessor in any proceeding in which such claim
is asserted.
Except for loss or damage arising out of Lessor's grossly negligent or intentional acts,
Lessor shall not be liable to Lessee, or to Lessee's assignees or Sublessees or the employees,
agents, contractors or invites of any such person, firm or entity, for any injury or damage to
person or property in or about the Demised Premises. Lessee, on its and its assignees' and
successors in interests' (whole or partial) behalves, including on behalf of any future
Sublessees, grantees or licensees of the Initial Lessee, Lessee or Association, hereby
assumes or otherwise covenants for the acceptance by such persons sole responsibility and
liability to all persons and authorities related to or arising from the possession, occupancy
and use of any portion of the Leased Premises, and also for all such future occupants,
owners, Lessees, Sublessees and licensees waives and releases forever all claims, demands
and causes of action against Lessor and its employees, agents, successors, assigns and
representatives for loss of life or injury to person or property, of whatever nature, other
than that arising out of such parties' intentionally wrongful acts.
Section Q.02 Insurance. On the Effective Date the Lessee shall cause to be written
and put in full force and effect a policy or policies of insurance as noted in Article X insuring
the Lessee against any and all claims and demands made by any person or persons
whomsoever for injuries received in connection with the operation and maintenance of the
Demised Premises. All such policies shall name the Lessee and the Lessor (and any lender
holding a mortgage on the Demised Premises), as their respective interests may appear, as
the persons insured by such policies. Any loss adjustment shall require the written consent
of both the Lessor and Lessee.
Section Q.03 Policy Limit Changes. The policy limits for the comprehensive liability
insurance may be reviewed by Lessor every five (5) years and adjusted upward, if, in the
reasonable discretion of Lessor such increase in coverage is prudent or if similar projects
have begun to require greater insurance coverage.
ARTICLE X
Insurance
Section 10.01 Property Insurance. From and after the Effective Date, the Lessee
",ill keep insured any and all buildings and improvements upon the Demised Premises
against all loss or damage by fire, flood and windstorm, together with "all risks" "extended
coverage," which said insurance will be maintained in an amount sufficient to prevent any
party in interest from being or becoming a co-insurer on any part of the risk, which amount
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shall not be less than full Replacement Cost value of the Demised Premises, and all of such
policies of insurance shall include the name of the Lessor as an additional insured and shall
fully protect both the Lessor and the Lessee as their respective interests may appear. In the
event of destruction of the said buildings or improvements by fire, flood, windstorm or
other casualty for which insurance shall be payable and as often as such insurance money
shall have been paid to the Lessor and the Lessee, said sums so paid shall be deposited in a
joint account of the Lessor and the Lessee in a bank located in the County in which the
Demised Premises is located designated by the Lessee, and shall be made available to the
Lessee for the construction or repair, (including any modification to the improvements
sought by the Lessee and approved in writing by the Lessor with Lessor's approval not
unreasonably withheld) as the case may be, of any building or buildings damaged or
destroyed by fire, flood, windstorm or other casualty for which insurance money shall be
payable and shall be paid out by the Lessor and the Lessee from said joint account from
time to time on the estimate of any reliable architect licensed in the State of Florida having
jurisdiction of such reconstruction and repair, certifying that the amount of such estimate is
being applied to the payment of the reconstruction or repair and at a reasonable cost
therefor; provided, however, that the total amount of money necessary for the
reconstruction or repair of any building or buildings destroyed or injured has been provided
by the Lessee for such purpose and its application for such purpose assured. In the event of
the destruction or damage of the buildings and improvements or any part thereof, and as
often as any building or improvement on said Demised Premises shall be destroyed or
damaged by fire, flood, windstorm or other casualty, the Lessee shall rebuild and repair the
same in such manner that the building or improvement so rebuilt and repaired, and the
personal property so replaced or repaired, shall be of the same or higher value as the said
building or improvement and the personal property upon the Demised Premises prior to
such damage or destruction, and shall diligently prosecute the reconstruction or repairs
without delay and have the same rebuilt and ready for occupancy as soon as reasonably
possible from the time when the loss or destruction occurred. The 1s-month period for
reconstruction shall be enlarged by delays caused without fault or neglect on the part of the
Lessee, by act of God, strikes, lockouts, or other conditions (other than matters of
refinancing the property) beyond the Lessee's control. Notwithstanding the foregoing,
and only with respect to insurance proceeds, the reasonable provisions of any
leasehold mortgage substantially comporting with customary institutional
lending industry standards and the foregoing Lessor's interests shall control
as to the use and disbursement of insurance funds for reconstruction of the
improvements in the event of any casualty or damage to such improvements.
While the Project, or any replacement thereof, is in the course of construction, and
whenever appropriate while any alterations are in the course of being made, the aforesaid
fire and extended coverage insurance shall be carried by Lessee in builder's risk form
'NTitten on a completed value basis.
Notwithstanding anything to the contrary in the immediately preceding paragraph,
in case of destruction of all of the improvements on the Demised Premises from any cause
so as to make all units untenantable occurring during the last ten (10) years of the Term of
this Lease, Lessee, if not then in default under this Lease and if there is no leasehold
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mortgage or other similar encumbrance on the Lessee's interest in the Demised Premises,
may elect to terminate this Lease by written notice to Lessor within thirty (30) days after
the occurrence of the destruction. In the event this Lease has been assigned to the
Association, the Association must obtain any necessary vote to terminate. In the event of
termination, there shall be no obligation on the part of Lessee to restore or repair the
improvements on the Demised Premises, nor any right of the Lessee to receive any proceeds
collected under any insurance policies covering the improvements. If Lessee elects not to
terminate this Lease in the event of destruction during the last ten (10) years of this Lease,
the proceeds of all insurance covering the improvements shall be made available to Lessee
for repairs, and Lessee shall be obligated to repair as set forth above.
Section 10.02 Commercial General Liability Insurance. The Initial Lessee and the
Association (upon assignment to the Association) shall maintain Commercial General
Liability Insurance beginning on the Effective Date and continuing during the entire Term
of this Lease. The Commercial General Liability Insurance shall cover those sources of
liability which would be covered by the latest edition of the standard Commercial General
Liability Coverage Form [ISO Form CG 00-01] as filed for use in Florida without the
attachment of restrictive endorsements other than the elimination of medical payments and
fire damage legal liability.
General Aggregate $1,000,000
Products/Completed Operations $2,000,000
[coverage for 3 years after project completion]
Each Occurrence $1,000,000
Contractual Liability $1,000,000
Additional Named Insured: Lessor, or its assigns or designees, as from time to time
designated, shall be included as additional insureds for Commercial General Liability.
Section 10.0~ Environmental Impairment Responsibility. The Lessee and/or its
contractors acknowledge that the performance of this Lease is, or may be, subject to
Federal, State and local laws and regulations enacted for the purpose of protecting,
preserving or restoring the environment. The Lessee shall at the sole cost of the Lessee or
its Contractors, be responsible for full compliance with any such laws or regulations.
Section 10.04 Other Insurance. Lessee shall maintain such other insurance and in
such amounts as may from time to time be reasonably required by the Lessor against other
insurable hazards which at the time are commonly insured against in the case of
construction of buildings and/ or in the case of premises similarly situated, due regard being
or to be given to the location, construction, use and occupancy. In the event the Lessee
believes the Lessor's requirement for such additional insurance is unreasonable the
reasonableness of Lessor's request shall be determined in accordance with the rules of the
American Arbitration Association. Such determination as to the requirement of coverage
and the proper and reasonable limits for such insurance then to be carried shall be binding
on the parties and such insurance shall be carried with the limits as thus determined until
such limits shall again be changed pursuant to the provisions of this Section. The expenses
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of such determination shall be borne equally by the parties. This procedure may only be
requested on each five (5) year anniversary date of the Lease.
Section 10.0."\ Proceeds Payable to Mortgagee. If any mortgagee holding a mortgage
created pursuant to the provisions of Article XV elects, in accordance with the terms of such
mortgage, to require that the proceeds of the insurance be paid to the mortgagee, then such
payment shall be made, but in such event, it shall still be obligatory upon the Lessee to
create the complete fund with the leasehold mortgagee in the manner set forth in this
Article to assure and complete the payment for the work of reconstruction and repair. Any
mortgagee holding insurance proceeds shall require such proceeds are properly used to
ensure repairs.
Section 10.06 Damages~ Insurance Proceeds; Joint Bank Account. Any excess of
money received from insurance remaining in the joint bank account after the reconstruction
or repair of such building or buildings, if the Lessee is not in default, shall be paid to the
Lessee, and in the case of the Lessee not entering into the reconstruction or repair of the
building or buildings within a period of six months from the date of payment of the loss,
after damage or destruction occasioned by fire, windstorm, flood or other cause, and
diligently prosecuting the same with such dispatch as may be necessary to complete the
same in as short a period of time as is reasonable under the circumstances after the
occurrence of such damage or destruction, then the amount so collected, or the balance
thereof remaining in the joint account, as the case may be, shall be paid to the Lessor and it
will be at the Lessor's option to terminate the Lease, unless terminated by Lessee within the
last ten (10) years of the Lease as set forth above, and retain such amount as liquidated and
agreed upon damages resulting from the failure of the Lessee to promptly, within the time
specified, complete such work of reconstruction and repair.
Section 10.07 Direct Repayment. The foregoing notwithstanding, in the event the
insurance proceeds are the sum of One Hundred Thousand and 00/100 Dollars
($100,000.00) or less, then such proceeds shall be paid directly to the Lessee without the
necessity of creating the joint bank account, and Lessee shall use such funds to make the
replacements or repairs. Lessee shall provide proof satisfactory to Lessor that repairs are
com pleted as required within 180 days of the receipt of such insurance proceeds.
Section 10.08 General Requirements. All insurance to be provided by Lessee under
this Lease shall be effected under valid and enforceable policies in such forms, issued by
insurers of recognized financial responsibility qualified to do business in Florida which have
been approved by Lessor, which approval shall not be unreasonably withheld. All policies of
insurance provided for in this Article shall, to the extent obtainable, contain clauses or
endorsements to the effect that (a) no act or negligence of Lessee or anyone acting for
Lessee or for any Sublessee or occupant of the Demised Premises which might otherwise
result in a forfeiture of such insurance or any part thereof shall in any way affect the validity
or enforceability of such insurance insofar as Lessor, and that (b) such policy of insurance
shall not be changed or cancelled without at least thirty (30) days written notice to the
Lessor, and that (c) the Lessor shall not be liable for any premiums thereon or subject to
any assessments thereunder.
Page 14 of 39
Section 10.0Q Subsequent Lessees. Assignees, Sublessees and Grantees. Any parties
who subsequently become holders of any title or possessory interest to a portion of the
Demised Premises, shall upon request provide, in a form satisfactory to Lessor, proof of
customary and reasonable insurance adequate and sufficient to cover and protect all
interests of the Lessor as set forth in this Article above, at least to the extent and value of
that subsequent interest holder's insurable interest. The same procedures for the use and
application of insurance proceeds as set forth above may be required for such subsequent
interest holders and the same remedies for failure to comply with such insurance
requirements available to Lessor with respect to the Initial Lessee shall also be available to
Lessor as to any future interest holder in the Demised Premises, and such future interest
holder shall name Lessor as an additional insured on any required insurance policies
hereunder.
ARTICLE XI
Insurance Premiums
The Lessee shall pay premiums for all of the insurance policies which the Lessee is
obligated to carry under the terms of this Lease. In the event Lessee fails to obtain and pay
for the necessary insurance, Lessor shall have the right, but not the obligation, without
notice to Lessee, to procure such insurance and/ or pay the premiums of such insurance, in
which case Lessee shall repay Lessor immediately upon demand by Lessor as additional
rent. The Lessor shall have the same rights and remedies with respect to procurement of
such insurance and/or payment of such insurance premiums in the event a future
subsequent partial interest holder (e.g., Sublessee, Association) fails to obtain and pay for
the necessary insurance.
ARTICLE XII
Assignment/Transfer
Section 12.01 Assignment by Initial Lessee. Without the "V\<Titten consent of Lessor,
first obtained in each case, Initial Lessee shall not assign or sublet any portion of the
Demised Premises, or change management of the Demised Premises, except as otherwise
provided herein. Notwithstanding the foregoing, Lessor acknowledges and agrees that the
Affordable Housing Units are to be developed as units for sale or rent to moderate income
qualified third parties, as defined in the Affordable Restrictions; therefore, these units may
be sold, rented and occupied without the Initial Lessee obtaining consent from Lessor for
such sale/ subletting, provided that Initial Lessee shall follow the guidelines set forth herein.
In the event a unit is to be rented to a qualified third party, Lessor and Initial Lessee agree
that said unit shall be rented by Initial Lessee at rates allowable for Affordable Housing for
moderate income qualified third parties.
Upon the transfer/sale of each unit to be sold by Initial Lessee, or any successor
Page 15 of 39
Lessee hereunder, Lessor or its designee shall attorn to the rights of Initial Lessee, or
subsequent Lessee, as the case may be, with respect to each transferred/sold unit. In
conjunction and contemporaneously with the sale or transfer of each such unit, Initial
Lessee, or any successor Lessee, shall ensure the release of any and all mortgage, mechanic's
lien or other similar claims with respect to the relevant portion of the Demised Premises
other than new Sublessee purchase money mortgages and the like, as permitted in Article
XV. Upon the transfer/sale of the last unit to be sold by Initial Lessee, Initial Lessee will be
authorized to assign this Lease for any remaining property (common area) to a
homeowners' condominium or similar Association to be created by the Initial Lessee for the
unit owners. Any such Association and its related declaration, articles of incorporation,
bylaws and any documents, exhibits or attachments, as may be amended, shall first be
approved by Monroe County for compliance with the goals, purposes and intent of the
Affordable Restrictions, which approval shall not be unreasonably withheld. No declaration
or covenant related to such Association shall materially alter or impair the affordability and
enforcement administration provisions of this Lease. Upon such assignment, Initial Lessee
will be released from any liability related to this Lease, including but not limited to any
liability discussed in Article IX, except that Initial Lessee shall remain liable to the extent
Initial Lessee remains the owner of any units and is renting such units, notwithstanding
design, construction and other defects for which developer/builders are otherwise
responsible under the law. The unit owners (as Sublessees) and the Association shall
assume all responsibilities of the Initial Lessee (with the exception of the consent for
assignment of a sublease). Notwithstanding the foregoing, Initial Lessee's duty to find or
identify a qualified purchaser, as set forth below, shall become the responsibility of the
Lessor (unless assigned by Lessor as set forth below) for the resale of the Affordable
Housing Units and shall not become the responsibility of the Association. It is hereby
acknowledged that Lessor shall have the right to assign its duties and rights related to the
assignment of subleases, i.e. finding a qualified purchaser for resales, or renter(s), in the
case of rental units, to the Monroe County Housing Authority, or to any other governmental
entity or profit or non-profit organization designated and approved by Monroe County. In
the event this duty is assigned, reference to "Lessor" in this Section 12.01 shall also refer to
that entity which accepts the duty.
Section 12.02 Initial Sale/Lease of Unit By Developer/Initial Lessee. Initial Lessee
acknowledges that these units are being developed for affordable housing. Furthermore,
Initial Lessee acknowledges that there shall be reserved by appropriate deed restriction, in a
form approved by Lessor, a right of first refusal in favor of Lessor to purchase or designate
purchasers for any affordable units offered for sale or lease. Initial Lessee shall provide
Lessor with "Written notice of its intent to commence marketing efforts and Lessor shall have
ninety (go) days from the date of receipt of the notice to Lessor to enter into a reservation
agreement with Initial Lessee for the purchase/lease of all or a portion of the units. The
Monroe County Housing Authority may provide the Initial Lessee with a list of pre-qualified
individuals who shall be given first opportunity to purchase/lease a specified number of
units at a purchase price/rental rate allowable under the Affordable Restrictions, but must
do so reasonably promptly within the ninety (go) day notice period which Initial Lessee
need not extend for this purpose. In the event that Lessor does not elect to purchase or
designate purchasers for the units offered to it pursuant to such right of first refusal, Initial
Page 16 of 39
Lessee shall be free to sell the units to individuals otherwise qualified to own/rent such
units and subject to all other affordable housing covenants of record. Notwithstanding
anything contained herein to the contrary, all purchasers/lessees of such affordable units
shall meet Monroe County's requirements of moderate or lesser income affordable housing,
adjusted for family size. All purchasers/lessees of the affordable units shall be required to
execute a letter of acknowledgement in a form substantially as attached hereto and found
on Exhibit
Section 12.0~ Assignment/Transfer by Sublessees. Lessor and Initial Lessee agree
that Initial Lessee shall sublet each individual unit to the buyers of said units or the tenants
of said units. At such time as any individual unit owner ("Sublessee") desires to sell, assign
or otherwise transfer their units and interests, the Sublessee shall be required to follow the
procedures set forth herein and such reasonable implementing procedures authorized or
directed by Monroe County and any conveyance, transfer or other disposition and the
acceptance of such transfers shall be deemed an automatic and irrevocable agreement to the
conditions set forth herein.
Section 12.04 Required Notice of Restrictions. Any conveyance, lease, assignment,
grant or other disposition of any interest made with respect to any portion of the Demised
Premises other than those mortgage interests provided for in Article XV, shall contain the
following required Notice of Restrictions in a conspicuous location on the upper one-half of
the first page of the relevant instrument effectuating the interest, in bold capital typed
letters greater than or equal to 14 point font:
NOTICE OF RESTRICTIONS
ANY INSTRUMENT OF CONVEYANCE, LEASE, ASSIGNMENT, GRANT
OR OTHER DISPOSITION OF ANY INTEREST IN OR TO ANY PORTION OF
THE DEMISED PREMISES OR TO ANY IMPROVEMENTS ERECTED
THEREON WILL BE SUBJECT TO CERTAIN RESTRICfIONS INCLUDING Bur
NOT LIMITED TO RIGHTS OF FIRST REFUSAL, USE, OCCUPANCY, INCOME,
MEANS, RESALE PRICE, RENTAL AND MORTGAGE LIMITATIONS,
INCLUDING Bur NOT LIMITED TO THOSE SET FORTH IN OFFICIAL
RECORDS BOOK _, PAGE _ OF THE PUBLIC RECORDS OF MONROE
COUNTY, FLORIDA.
The recorded book and page of this Lease and any other relevant previously recorded
restrictions (e.g., homeowners' association governing documents or master
unsatisfied/unreleased mortgages) affecting the respective portion of the Demised Premises
shall be set forth in the Notice of Restrictions. Any instrument of conveyance, lease,
assignment or other disposition made without following the notice procedures set forth
herein shall be void and confer no rights upon any third person, though such instruments
may in some cases be validated by fully correcting them according to procedures established
by Lessor, as determined in Lessor's sole discretion so as to ensure compliance with the
public affordability purposes furthered by this Lease and the Affordable Restrictions.
Page 17 of 39
Section 12.0!) Follow-on Sales or Rentals of Units and Assignments of Lease
Requirements. In order for an owner or subsequent owner to sell or rent their unit and
assign their Sublease they shall be required to comply with the following:
a. Sublessee shall notify the Lessor in writing of their desire to sell or rent the
unit and assign the sublease, said notice hereinafter referred to as a "Transfer
Notice." The Transfer Notice shall include the proposed purchase price for
the Affordable Housing Unit, and any other compensation permitted the
Seller relating to the proposed sale, which shall be in accordance with the
Affordable Restrictions.
b. Lessor shall have forty-five (45) days from date of receipt of the written
Transfer Notice to find or identify an income qualified purchaser or renter
who meets the moderate or lesser income requirements for purchasing or
renting the affordable unit. Lessor may require that any unit
originally sold as an affordable "ownership" and occupancy unit
that is made the subiect of any offer to rent or attempted or actual
rental be deemed an irrevocable offer to sell pursuant to the terms
of this Lease.
1. The sales price shall be the lesser of (i) the purchase price set
forth in the Transfer Notice or (ii) the highest price permitted
under the Mfordable Restrictions. All additional terms of the
contract shall be consistent with the Affordable Restrictions.
Sublessee hereby agrees to execute a contract with a pre-
qualified purchaser identified by the Lessor and to cooperate
with reasonable closing procedures so long as they meet the
Affordable Restrictions.
2. In the event Lessor finds an income qualified purchaser, Lessor
will assist in coordinating the closing on the affordable unit.
The closing shall be scheduled to occur within seventy-five (75)
days from the effective date of the contract for the sale of the
unit, unless extended by the mutual agreement of the parties.
c. In the event Lessor fails to identify an income qualified purchaser who enters
into a purchase contract within forty-five (45) days and who closes as
provided above, and provided that Sublessee has fully complied with all
required Lease and related procedures, Sublessee shall be entitled to sell the
property to an income qualified purchaser pursuant to the terms set forth in
the complying Transfer Notice. In this event, Sublessee shall first obtain
approval from the Lessor in order to allow Lessor the ability to review the
proposed contract terms to ensure that the purchase terms and the potential
purchaser meet the requirements for purchasing the affordable housing unit,
which approval shall not be unreasonably withheld. Sublessee shall provide
Lessor with a full copy of a written purchase and sale contract (and all
Page 18 of 39
addenda) within three (3) business days of full execution of the purchase and
sale contract, and said contract shall state that it and the proposed purchaser
are subject to the approval of the Lessor. Lessor shall have fifteen (15)
business days to review the terms of the purchase and sale contract. In the
event Lessor fails to provide Sublessee with written approval or any written
objections within fifteen (15) business days from receipt of the contract,
Lessor shall be deemed to have given the necessary approval of the proposed
form and substance of the contract. Sublessee and the potential buyer shall
also provide any other information Lessor reasonably deems necessary to
verify purchaser/Sublessee qualifications. All purchase and sale contracts
shall be deemed to be contingent on buyer and transaction qualifications
under the Mfordable Restrictions. Lessor and the proposed parties to a
transfer transaction may agree to additional time periods necessary to verify
full compliance with all aspects of the Affordable Restrictions. In no case
shall Lessor, or its designees, be deemed to waive with respect to any party
any requirement applicable to that party under the Mfordable Restrictions
where it turns out that such requirement was not in fact met, true or
complied with, even in cases where a transaction might be customarily
considered to have "closed." Lessor reserves, to itself and to its designees, all
legal and equitable rights it deems necessary or appropriate to ensure that all
portions of the Demised Premises are used for the public purposes for which
they were intended.
d. Lessor shall be deemed reasonable in withholding its approval for any
proposed sale if the purchase terms and purchaser do not meet the
requirements as set forth in the Affordable Restrictions. After the Lessor has
reviewed and approved a contract, Sublessee shall not have the ability to
amend the terms of the contract unless Sublessee obtains Lessor's approval.
The Sublessee shall only transfer their leasehold interest to an approved
income qualified person, as defined by the Affordable Restrictions for
moderate or lesser income, or to Lessor in the event Lessor and Sublessee are
unable to find an income qualified purchaser, and so long as Lessor chooses
to purchase the Affordable Housing Unit, in Lessor's sole and absolute
discretion. Additionally, after the expiration of the forty-five (45) day period
described in Paragraph b above, and before Sublessee has found an income
qualified purchaser, Lessor may, but is not obligated to, continue the search
for an income qualified purchaser. In the event Lessor finds and identifies an
income qualified purchaser prior to Sublessee doing so, the procedure set
forth in Paragraph 2 shall be followed.
e. Lessor hereby agrees that the procedures set forth in Paragraph b. above for
"resales" shall also be adopted as required and used in the event the unit is
used as a rental.
Section 12.06 Assignment by Lessor. This Lease is freely assignable by the Lessor,
and upon such assignment, the Lessor's liability shall cease and Lessor shall be released
Page 19 of 39
from any further liability. In the event the ovvnership of the land comprising the Leased
Premises is conveyed or transferred (whether vol untarily or involuntarily) by Lessor to any
other person or entity, this Lease shall not cease, but shall remain binding and unaffected.
Section 12.07 Death of a Unit Owner. In the event a unit owner dies, Lessor shall,
unless for good cause shown, consent to a transfer of the leasehold interest to the spouse or
child(ren) of the unit owner provided that such heirs state, in writing, that they have
reviewed the terms of this Lease, and that they understand and accept the terms of this
Lease by signing an acknowledgement, which is substantially in a form similar to that
attached hereto as Exhibit _' All heirs, devisees or legatees must demonstrate to the
Lessor's reasonable satisfaction that they qualify for affordable housing as provided in the
Affordable Restrictions. All estates and leasehold or other interests granted in or conveyed
with respect to any of the Demised Premises do not extend to any degree so as to limit or
inhibit the intent and operation of this Lease and the Affordable Restrictions, it being
expressly and irrevocably accepted on behalf of all future Sublessees and all those who
would or might succeed to their interests, that these Demised Premises and each and every
portion thereof, for the entire Term of this Lease, are to be used as affordable housing
according to the Mfordable Restrictions. In the event the heirs of the decedent do not meet
the requirements for affordable housing, such heirs shall not occupy the premises and shall
not be entitled to possession, except and only to the extent that the Lessor permits same,
under conditions that it determines furthers the goals and public purposes of this Lease and
the Affordable Restrictions. Therefore, in such event, the heirs of the decedent shall
transfer their interest in the unit in accordance with the provisions of this Article XII and
cooperate with the Lessor in seeing that this is accomplished.
Section 12.08 Administrative Fees. The Lessor or its designee shall be entitled to
charge three and one-half percent (31/2%) ofthe Purchase Price of the allowed and agreed
purchase price for any transferred interest (other than simple security mortgage interests,
which may be subject to other reasonable processing fees), as an administrative fee for
coordinating the closing on any unit or Sublease, said fee to be paid by the selling unit
Ovvner at the time of closing. This fee does not include other seller and buyer closing related
costs such as title insurance, documentary stamps, intangible taxes, prorated taxes,
insurance, homeowners' assessments, loan expenses and the like. The Lessor or its
designee shall be authorized to designate closing, escrow and title agents involved in all
transactions subject to this Lease. Lessor or its designee may, from time to time, establish,
promulgate and revise fees related to the administration of this Lease and any Subleases.
ARTICLE XIII
Condemnation
Section 1~.01 Eminent Domain~ Cancellation. If, at any time during the continuance
of this Lease, the Demised Premises or any portion thereof is taken or appropriated or
condemned by reason of eminent domain, there shall be such division of the proceeds and
awards in such condemnation proceedings and such abatement of the rent and other
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adjustments made as shall be just and equitable under the circumstances. If the Lessor and
the Lessee are unable to agree upon what division, annual abatement of rent or other
adjustments as are just and equitable, within thirty (30) days after such award has been
made, then the matters in dispute shall be determined in accordance with the rules of the
American Arbitration Association. Such determination made by the arbitration shall be
binding on the parties. If the legal title to the entire Demised Premises be wholly taken by
condemnation, the Lease shall be cancelled.
Section 1~.02 Apportionment. Although the title to the building and improvements
placed by the Lessee upon the Demised Premises will pass to the Lessor, nevertheless, for
purpose of condemnation, the fact that the Lessee placed such buildings on the Demised
Premises shall be taken into account, and the deprivation of the Lessee's use (and any use of
a Sublessee) of such buildings and improvements shall, together with the term of the Lease
remaining, be an item of damage in determining the portion of the condemnation award to
which the Lessee or Sublessee is entitled. In general, it is the intent of this Section that,
upon condemnation, the parties hereto shall share in their awards to the extent that their
interests, respectively, are depreciated, damaged, or destroyed by the exercise of the right of
eminent domain. In this connection, if the condemnation is total, the parties agree that the
condemnation award shall be allocated so that the then value of the property, as though it
were unimproved property, shall be allocated to the Lessor, and the then value of the
building or buildings thereon shall be allocated between the Lessor and Lessee after giving
due consideration to the number of years remaining in the term of this Lease and the
condition of the buildings at the time of condemnation.
ARTICLE XIV
Construction
Section 14.01 Requirement to Construct Prolect.
(a) Initial Lessee shall commence construction ofthe Project no later than
ninety (90) days after the affordable unit allocations are tendered to Initial Lessee
necessary for the construction of the Project, and shall substantially complete
construction of all forty (40) units within twelve (12) months thereafter. The
foregoing limitation of time for the completion of the Project may be extended by
""Titten agreement between the parties hereto.
(b) During the course of construction of the Project, Initial Lessee shall
provide to the Lessor quarterly written status reports on the Project, and such other
reports as may reasonably be requested by Lessor.
( c) The Project shall be constructed in accordance ,,\lith the requirements
of all laws, ordinances, codes, orders, rules and regulations of all governmental
entities having jurisdiction over the Project, including, but not limited to, the Lessor.
Page 21 of 39
(d) The Initial Lessee shall apply for and prosecute, with reasonable
diligence, all necessary approvals, permits and licenses required by applicable
Governmental Authorities for the construction, development, zoning, use and
occupation of the Project. Lessor agrees to cooperate .with and publicly support the
Initial Lessee's effort to obtain such approvals, permits and licenses, provided that
such approvals, permits and licenses shall be obtained at Initial Lessee's sole cost
and expense. Nothing in this Lease is intended to or shall be construed to obviate or
lessen any requirements for customary development approvals from any permitting
authority, including the Lessor. Nothing in this Lease shall be construed as the
Lessor's delegation or abdication of its zoning authority or powers and no zoning
approval that Initial Lessee may require to complete its performance under this
Lease has been or shall be deemed agreed to by this Lease.
(e) Construction of the Project on the Demised Premises during the Term
of this Lease shall be performed in a good and workmanlike manner, pursuant to
written contracts with licensed contractors and in accordance with any and all
requirements oflocal ordinances and with all rules, regulations and requirements of
all departments, boards, officials and authorities having jurisdiction thereof. It is
understood and agreed that the plans and specifications for all construction shall be
prepared by duly qualified architects/engineers licensed in the State of Florida.
14.02 Access to the Project and Inspection. The Lessor or its duly appointed agents
shall have the right, at all reasonable times upon the furnishing of reasonable notice under
the circumstances (except in an emergency, when no notice shall be necessary), to enter
upon the Leased Premises to examine and inspect the Project. The Initial Lessee hereby
covenants to execute, acknowledge and deliver all such further documents and do all such
other acts and things necessary to grant to the Lessor such right of entry. This right of
access and inspection shall survive completion of the Project and shall be broadly construed
to permit Lessor, or its designees, rights of access and inspection to any portion of the
Demised Premises to the extent that such access and inspection are reasonably justified to
protect and further the Lessor's continuing interest in the Demised Premises, as determined
in Lessor's reasonable discretion. Lessor's designees, for purposes of this Article 14.02,
shall include city, county or State code or building inspectors, and the like, without
limitation.
14.0~ Forced Delay in Performance. Notwithstanding any other provisions of this
Lease to the contrary, the Initial Lessee shall not be deemed to be in default under this
Lease where delay in the construction or performance of the obligations imposed by this
Lease are caused by war, revolution, labor strikes, lockouts, riots, floods, earthquakes, fires,
casualties, acts of God, labor disputes, governmental restrictions, embargoes, litigation
(excluding litigation between the Lessor and the Initial Lessee), tornadoes, severe tropical
or other severe weather events, inability to obtain or secure necessary labor, materials or
tools, delays of any contractor, subcontractor, or supplier, acts or failures to act by the
Lessor, or any other causes beyond the reasonable control of the Initial Lessee. The time of
performance hereunder shall be extended for the period of any forced delay or delays
caused or resulting from any of the foregoing causes.
Page 22 of 39
ARTICLE XV
Mortgage Financing
Section 1.hi.Ol Construction Financing By Initial Lessee. Initial Lessee shall have the
right to mortgage its interests in the Demised Premises.
(a) The Initial Lessee shall have the right to encumber by mortgage or
other proper instrument, Initial Lessee's interest under this Lease, together with all
buildings and improvements placed by Initial Lessee on the Demised Premises, to a Federal
or State Savings & Loan Association, Bank or Trust Company, Insurance Company, Pension
Fund or Trust (or to a private lender so long as the terms and conditions of the financing
from private lender are on substantially similar terms to those then existing by the other
lenders referred to in this section), or similar lending institution authorized to make
leasehold mortgage loans in the State of Florida, subject to the requirements that any
conveyance, mortgage, note, lease, assignment, grant or other disposition or encumbrance
of any interest made with respect to any portion of the Demised Premises shall contain the
following required Notice of Restrictions in a conspicuous location on the upper one-half of
the first page of the relevant instrument relating to the interest, in bold and capital typed
letters greater than or equal to 14 point font:
NOTICE OF RESTRICTIONS
ANY INSTRUMENT OF CONVEYANCE, MORTGAGE, NOTE, LEASE,
ASSIGNMENT, GRANT OR OTHER DISPOSITION OR ENCUMBRANCE OF
ANY INTEREST OF ANY PORTION OF THE DEMISED PREMISES WILL BE
SUBJECf TO CERTAIN RESTRICfIONS INCLUDING BUT NOT LIMITED TO
RIGHTS OF FIRST REFUSAL, USE, OCCUPANCY, INCOME, MEANS, RESALE
PRICE, RENTAL AND MORTGAGE LIMITATIONS, INCLUDING BUT NOT
LIMITED TO THOSE SET FORTH IN OFFICIAL RECORDS BOOK _, PAGE_
OF THE PUBLIC RECORDS OF MONROE COUNTY, FLORIDA.
The recorded book and page of this Lease and any other relevant previously recorded
restrictions (e.g., homeowners' association governing documents or master
unsatisfiedjunreleased mortgages) affecting the respective portion of the Demised Premises
shall be included in the Notice of Restrictions; and,
(b) Initial Lessee shall present a full copy of any proposed mortgagees) or
other instrument(s) (and any addenda) to and obtain written approval from Lessor, which
approval shall not be unreasonably withheld.
(c) Until the time the leasehold mortgagees) shall be satisfied of record,
when giving notice to the Initial Lessee with respect to any default under the provisions of
this Lease, the Lessor shall also serve a copy of such notice upon the Initial Lessee's
Page 23 of 39
leasehold mortgagee(s) who have previously provided written notice to Lessor of their
contact address information for such notice purposes, including any changes thereto. No
such notice to the Initial Lessee shall be deemed to have been given unless a copy of such
notice has been mailed to such leasehold mortgagee(s), which notice must specify the
nature of each such default.
(d) In case the Initial Lessee shall default under any of the provisions of
this Lease, the Initial Lessee's leasehold mortgagee shall have the right to cure such default
whether the same consists of the failure to pay rent or the failure to perform any other
matter or thing which the Initial Lessee is required to do or perform and the Lessor shall
accept such performance on the part of the leasehold mortgagee as though the same had
been done or performed by the Initial Lessee. The leasehold mortgagee, upon the date of
mailing by Lessor ofthe notice referred to in subparagraph (c) ofthis Section 15.01 shall
have, in addition to any period of grace extended to the Initial Lessee under the terms and
conditions of this Lease for a non-monetary default, a period of sixty (60) days within which
to cure any non-monetary default or cause the same to be cured or to commence to cure
such default with diligence and continuity; provided, however, that as to any default of the
Initial Lessee for failure to pay rent, or failure to pay any amount otherwise required under
the terms ofthis Lease (e.g., including, but not limited to, taxes or assessments), the lease-
hold mortgagee shall have thirty (30) days from the date the notice of default was mailed to
the mortgagee within which to cure such default.
(e) In the event of the termination of this Lease with Initial Lessee for
defaults described in this Article XV, or of any succeeding Lease made pursuant to the
provisions of this Section 1s.01(e) prior to the cure provisions set forth in this Section
lS.01( d) above, the Lessor will enter into a new Lease of the Demised Premises with the
Initial Lessee's leasehold mortgagee, or, at the request of such leasehold mortgagee, to a
corporation formed by or on behalf of such leasehold mortgage or by or on behalf of the
holder of the note secured by the leasehold mortgage held by such leasehold mortgagee, for
the remainder of the term, effective on the date of such termination, at the rent and upon
the covenants, agreements, terms, provisions and limitations contained in this Lease,
provided that such leasehold mortgagee makes written request and executes, acknowledges
and delivers to the Lessor such new Lease within thirty (30) days from the date of such
termination and such ""Titten request and such new Lease is accompanied by payment to
the Lessor of all amounts then due to the Lessor, including reasonable counsel fees, court
costs and disbursements incurred by the Lessor in connection with any such default and
termination as well as in connection with the execution, delivery and recordation of such
new Lease, less the net income collected by the Lessor subsequent to the date of termination
of this Lease and prior to the execution and delivery of the new Lease, any excess of such net
income over the aforesaid sums and expenses to be applied in payment of the rent
thereafter becoming due under such new Lease. Any new Lease referred to in this Section
Is.01(e) shall not require any execution, acknowledgement or delivery by the Lessor in
order to become effective as against the Lessor and the Lessor shall be deemed to have
executed, acknowledged and delivered any such new Lease immediately upon receipt by the
Lessor; and such new Lease shall be accompanied by (i) payment to the Lessor all amounts
then due to the Lessor of which the leasehold mortgagee shall theretofore have received
Page 24 of 39
written notice; and (ii) an agreement by the leasehold mortgagee to pay all other amounts
then due to the Lessor of which the leasehold mortgagee shall not theretofore have received
wTitten notice. In addition, immediately upon receipt by the Lessor such new Lease, as
provided in this Section ls.ol(e), the Lessor shall be deemed to have executed,
acknowledged and delivered to the leasehold mortgagee an assignment of all Subleases
covering the Demised Premises which theretofore may have been assigned and transferred
to the Lessor and all Subleases under which Sublessees shall be required to attorn to the
Lessor pursuant to the terms and conditions of such Subleases or this Lease. Such
assignment by the Lessor shall be deemed to be without recourse as against the Lessor.
Within ten (10) days after a written request therefore by the leasehold mortgagee, such
assignment or assignments shall be reduced to a V\Titing in recordable form and executed,
acknowledged and delivered by the Lessor to the leasehold mortgagee.
(f) The Initial Lessee's leasehold mortgagee may become the legal owner
and holder of this Lease by foreclosure of its mortgage or as a result of the assignment of
this Lease in lieu of foreclosure, which shall not require Lessor's consent, whereu pon such
leasehold mortgagee shall immediately become and remain liable under this Lease as
provided in Section lS.01(g) below.
(g) In the event that a leasehold mortgagee, or any other party acquiring an
interest shall become the owner or holder of the Lessee's interest by foreclosure of its
mortgage or by assignment of this Lease in lieu of foreclosure or otherwise, the term "Initial
Lessee," as used in this Lease, means only the ovvner or holder of the Lessee's interest for
the time period that such leasehold mortgagee is the owner or holder of the Lessee's
interest, which period shall not exceed 120 days \Nithout express written agreement by the
Lessor, which extension agreement may be withheld for any reason. Accordingly, in the
event of a sale, assignment or other disposition of the Initial Lessee's interest in this Lease
by the leasehold mortgagee, where leasehold mortgagee took title or ownership of or to any
or all of the Initial Lessee's interest in the Lease and/or any portion of the Demised
Premises as a result of foreclosure or acceptance of an assignment in lieu thereof, the
leasehold mortgagee shall be entirely freed and relieved of all covenants and obligations of
performance relating to construction, marketing and transfer to Sublessees during the 120
day period during which it has a right to find a substitute Initial Lessee under this Lease and
it shall be deemed and construed, without further agreement between the Lessor and the
mortgagee, or between the Lessor, the mortgagee and the mortgagee's purchaser or
assignee at any such sale or upon assignment of Initial Lessee's interest by the leasehold
mortgagee, that the purchaser or assignee of Initial Lessee's interest has assumed and
agreed to carry out any and all covenants and obligations ofInitial Lessee, including but not
limited to the construction of the affordable housing units contemplated herein. In no
event shall any protections afforded a leasehold mortgagee under this Lease be construed to
permit eventual use of the Demised Premises for purposes inconsistent with the Affordable
Restrictions.
(h) Within ten (10) days after written request by Initial Lessee or by Initial
Lessee's leasehold mortgagee, or in the event that upon any sale, assignment or mortgaging
of Initial Lessee's interest in this Lease by Initial Lessee or Initial Lessee's leasehold
Page 25 of 39
mortgagee, an offset statement shall be required from the Lessor, the Lessor agrees to
deliver in recordable form a certificate to any proposed leasehold mortgagee, purchaser,
assignee or to Initial Lessee, certifying (if such be the case) (1) that this Lease is in full force
and effect; (ii) that the Lessor has no knowledge of any default under this Lease, or if any
default exists, specifying the nature of the default; and (iii) that there are no defenses or
offsets which are known and may be asserted by the Lessor against the Lessee in respect of
obligations pursuant to this Lease.
(1) So long as the Initial Lessee's interest in this Lease shall be mortgaged
to a leasehold mortgagee, the parties agree for the benefit of such leasehold mortgagee, that
they shall not surrender or accept a surrender of this Lease or any part of it, nor shall they
cancel, abridge or otherwise modify this Lease or accept material prepayments of
installments of Rent to become due without the prior written consent of such mortgagee in
each instance.
(j) Reference in this Lease to acquisition of the Initial Lessee's interests in
this Lease by the leasehold mortgagee shall be deemed to refer, where circumstances
require, to acquisition of the Initial Lessee's interest in this Lease by any purchaser at a sale
on foreclosure of the leasehold mortgage and provisions applicable to the leasehold
mortgagee in such instance or instances shall also be applicable to any such purchaser.
(k) So long as the Initial Lessee's interest in this Lease shall be mortgaged
to a leasehold mortgagee, the parties agree for the benefit of such leasehold mortgagee that
the Lessor shall not sell, grant or convey to the Initial Lessee all or any portion of the
Lessor's fee simple title to the Demised Premises without the prior written consent of such
leasehold mortgagee. In the event of any such sale, grant or conveyance by the Lessor to the
Initial Lessee, the Lessor and the Lessee agree that no such sale, grant or conveyance shan
create a merger of this Lease into a fee simple title to the Demised Premises. This
subparagraph (k) shall not be construed to prevent a sale, grant or conveyance of the
Lessor's fee simple title by the Lessor to any person, firm or corporation other than the
Initial Lessee, its successors, legal representatives and assigns, so long as this Lease is not
terminated.
(1) Reference in this Lease to the Initial Lessee's leasehold mortgagee shall
be deemed to refer where circumstances require to leasehold mortgagee's assignee(s);
provided that such assignee(s) shall record a proper assignment instrument in the Public
Records of Monroe County, Florida, and shall forward to the Lessor a certified true copy of
same, together with a written notice setting forth the name and address of the assignee.
(m) In conjunction and contemporaneously with the sale or transfer of each
affordable unit, leasehold mortgagee shall make arrangement to ensure the release of any
and all applicable portions of its mortgage on the entire Demised Premises so as to grant
clear title to the Sublessee. The details and release payment requirements shall remain
within the reasonable business discretion of the initial Lessee and the leasehold mortgagee.
Page 26 of 39
Section 15.02 Permitted Mortgages for Sublessees (Unit Owners). The individual
unit o,^"TIers ("Sublessees") shall have the right to encumber by mortgage their interest in
the Sublease or any associated portions of the Demised Premises for and related interests in
'the individual units to a Federal or State Savings Loan Association, Bank, Trust Company
or similar lending institution, subject to the following requirements:
(a) The mortgagees) encumbering the Affordable Housing Unit shall not
exceed 95% of the maximum allowable sale price of the Affordable Housing Unit as
set forth in the Affordable Restrictions;
(b) Sublessees shall not be entitled to mortgage the leasehold interest in the
event the terms of the note, which is secured by the mortgage, may result in negative
amortization; and
(c) Except for those certain alternative methods allowed with respect to
mortgage and note instruments in favor of institutional lenders as set forth below,
any instrument of conveyance, mortgage, note, lease, assignment, grant or other
disposition or encumbrance of any interest with respect to any portion of the
Demised Premises, shall contain the following required Notice of Restrictions in a
conspicuous location on the upper one-half of the first page of any such instrument,
in bold and typed capital letters greater than or equal to 14 point font:
NOTICE OF RESTRICTIONS
ANY INSTRUMENT OF CONVEYANCE, MORTGAGE, NOTE, LEASE,
ASSIGNMENT, GRANT OR OTHER DISPOSITION OR ENCUMBRANCE
OF ANY INTEREST OF ANY PORTION OF THE DEMISED PREMISES
WILL BE SUBJECT TO CERTAIN RESTRICTIONS INCLUDING Bur NOT
LIMITED TO RIGHTS OF FIRST REFUSAL, USE, OCCUPANCY,
INCOME, MEANS, RESALE PRICE, RENTAL AND MORTGAGE
LIMITATIONS, INCLUDING Bur NOT LIMITED TO THOSE SET FORTH
IN OFFICIAL RECORDS BOOK_, PAGE_ OF THE PUBLIC RECORDS
OF MONROE COUNTY, FLORIDA.
An institutional lender financing a Sublessee's purchase or lease of an affordable unit
may, alternatively, with respect to its mortgage, note and/ or rider instruments only,
provide the required "Notice of Restrictions" by recording an instrument
contemporaneously with the recording of its mortgage (but which may be separate
and apart from the mortgage instrument), in a form otherwise providing the notice
required in this section as long as that separate recorded instrument references the
property, borrower, lender and financing transaction (e.g. loan number) involved.
Any instrument of conveyance, mortgage, note, encumbrance, lease, assignment or
other disposition made without following the procedures set forth herein shall be
void and confer no rights upon any third person, though such instruments may, in
some cases, be validated by fully correcting them according to procedures
established by Lessor, as determined in Lessor's sole reasonable discretion so as to
Page 27 of 39
ensure compliance with the public affordability purposes furthered by this Lease and
the Affordable Restrictions. Lessor's corrective procedures shall ensure compliance
with the public affordability purposes furthered by this Lease and the Affordable
Restrictions; and, shall, as a minimum, permit the correction of an institutional
lender's mortgage instruments to the full extent necessary to protect the Lender's
financial interest in any portion of the Demised Premises to the extent that such
financial interest does not exceed the allowable resale or rental value of such
encumbered portion under the Affordable Restrictions.
Cd) Sublessee shall present any proposed mortgage or other instrument to
and obtain written approval by Lessor, which approval shall not be unreasonably
withheld.
(e) In the event offoreclosure sale by a Sublessee's mortgagee or
the delivery of an assignment or other conveyance to a Sublessee's
mortgagee in lieu offoreclosure with respect to any real property subject
to the provisions of this Lease, said mortgagee, or the purchaser at
foreclosure, shall comply with the provisions of Article XII. No sale of
any affordable unit shall be permitted at an amount in excess of that
allowed under the Affordable Restrictions.
(f) The parties recognize that it would be contrary to the
fundamental affordable housing concept of this Lease and an incentive
to abuse Sublessee's authorization to encumber its leasehold interest
with a mortgage if Sublessee could realize more in loan or sale proceeds
than their permitted purchase or resale price as a result of any
transaction. Accordingly, Sublessee hereby irrevocably assigns to
Lessor (or the Monroe County Housing Authority or other Lessor
designee) any and all net proceeds from the sale of any interest in the
Demised Premises remaining after payment of costs offoreclosure and
satisfaction of the lien of any mortgage which would have otherwise
been payable to Sublessee, to the extent such net proceeds exceed the net
proceeds that Sublessee would have received had the interests been sold
pursuant to the Affordable Restrictions. Sublessee hereby authorizes
and instructs the mortgagee or any party conducting the closing of a sale
or transfer to pay the amount of said excess directly to Lessor. In the
event, for any reason, such excess proceeds are paid to Sublessee,
Sublessee hereby agrees to promptly pay the amount of such excess to
Lessor.
ARTICLE XVI
Default
Section 16.01 Notice of Default. Lessee shall not be deemed to be in default under
this Lease in the payment of rent or the payment of any other monies as herein required
Page 28 of 39
unless Lessor shall first give to Lessee ten (10) days written notice of such default and
Lessee fails to cure such default within such ten (10) days of receipt of said notice.
Except as to the provisions or events referred to in the preceding paragraph of this
section, Lessee shall not be deemed to be in default under this Lease unless Lessor shall first
give to Lessee thirty (30) days written notice of such default, and Lessee fails to cure such
default within such thirty (30) day period or, if the default is of such a nature that it cannot
be cured ",ithin thirty (30) days, Lessee fails to commence to cure such default within such
period of thirty (30) days or fails thereafter to proceed to the curing of such default with all
possible diligence.
Regardless of the notice and cure periods provided herein, in the event that more
rapid action is required to preserve any right or interest of the Lessor in the Demised
Premises or other detrimental occurrence (such as, but not limited to, payment of insurance
premiums, actions to prevent construction or judgment lien foreclosures or tax sales), then
the Lessor is empowered to take such action and to request reimbursement or restoration
from the Lessee as appropriate.
Section 16.02 Default. In the event of any breach of this Lease by Lessee, Lessor,
and after the necessary notice provided to Initial Lessee's leasehold mortgagee, in addition
to the other rights or remedies it may have, shall have the immediate right to terminate this
Lease according to law. Furthermore, in the event of any breach of this Lease by Lessee,
Lessor, in addition to the other rights or remedies it may have, shall have the immediate
right of re-entry and may remove all persons and property from the Demised Premises.
Such property may be removed and stored in a public warehouse or elsewhere at the cost of
and for the account of Lessee.
Included in this right of reentry shall be any instance wherein a Sublessee renounces
the Lease or a Sublease or abandons the Demised Premises, in which case Lessor may, at its
option, in an appropriate case, obtain possession of the abandoned property in any manner
allowed or provided by law, and may, at his option, re-Iet the repossessed property for the
whole or any part ofthe then unexpired term, receive and collect all rent payable by virtue
of such reletting, and hold Sublessee liable for any difference between the rent that would
have been payable under this Lease and the net rent for such period realized by Lessor, by
means of such reletting. However, such Lessor rights shall not abrogate a mortgagee's
rights to the extent those rights do not conflict with or injure Lessor's interests as
established under this Lease. Personal property left on the premises by a Sublessee may be
stored, sold, or disposed of by Lessor, and Lessor accepts no responsibility other than that
imposed by law. Any Sublease shall contain the follmving warning prominently set forth in
writing:
BY SIGNING THIS RENTAL AGREEMENT THE TENANT AGREES THAT
UPON SURRENDER OR ABANDONMENT, AS DEFINED BY CHAPTER 83
FLORIDA STATUTES, THE LESSOR SHALL NOT BE LIABLE OR
RESPONSIBLE FOR STORAGE OR DISPOSITION OF THE LESSEEtS
PERSONAL PROPERTY.
Page 29 of 39
Should Lessor elect to re-enter, as herein provided, or should Lessor
take possession pursuant to legal proceedings or pursuant to any notice
provided for by law, Lessor may either terminate this Lease or it may from
time to time, without terminating this Lease, re-Iet the Demised Premises or
any part thereof for such term or terms (which may be for a term extending
beyond the Term of this Lease) and at such rent or rents and on such other
terms and conditions as Lessor in its sole reasonable discretion may deem
advisable with the right to make alterations and repairs to the Demised
Premises. On each such re-Ietting:
(a) Lessee shall be immediately liable to pay to Lessor, in addition to any
indebtedness other than Rent due under this Lease, the expenses of such re-letting and of
such alterations and repairs, incurred by Lessor, and the amount, if any, by which the rent
reserved in this Lease for the period of such re-letting (up to but not beyond the term of this
Lease) exceeds the amount agreed to be paid as rent for the Demised Premises for such
period of such re-letting.
Notwithstanding any such re-letting without termination, Lessor may at any
time thereafter elect to terminate this Lease for such previous breach. Should Lessor at any
time terminate this Lease for any breach, in addition to any other remedy it may have,
Lessor may recover from Lessee all damages incurred by reason of such breach, including
the cost of recovering the Demised Premises, which amounts shall be immediately due and
payable from Lessee to Lessor.
Section 16.0~ Lessor's Right to Perform. In the event that Lessee, by failing or
neglecting to do or perform any act or thing herein provided by it to be done or performed,
shall be in default under this Lease and such failure shall continue for a period of thirty (30)
days after receipt of written notice from Lessor specifYing the nature of the act or thing to
be done or performed, then Lessor may, but shall not be required to, do or perform or cause
to be done or performed such act or thing (entering on the Demised Premises for such
purposes, with notice, if Lessor shall so elect), and Lessor shall not be or be held liable or in
any way responsible for any loss, inconvenience or annoyance resulting to Lessee on
account thereof, and Lessee shall repay to Lessor on demand the entire expense thereof,
including compensation to the agents and employees of Lessor. Any act or thing done by
Lessor pursuant to the provisions of this section shall not be construed as a waiver of any
such default by Lessee, or as a waiver of any covenant, term or condition herein contained
or the performance thereof, or of any other right or remedy of Lessor, hereunder or
otherwise. All amounts payable by Lessee to Lessor under any of the provisions of this
Lease, if not paid when the amounts become due as provided in this Lease, shall bear
interest from the date they become due until paid at the highest rate allowed by law.
Section 16.04 Default Period. All default and grace periods shall be deemed to run
concurrently and not consecutively.
Section 16.0!;. Affordable Restrictions. In the event any portion of the
Page 30 of 39
Demised Premises is used for purposes other than affordable housing, or
Lessee or any Sublessees fail to comply with the Affordable Restrictions, such
an occurrence will be considered a material default. In the foregoing event,
Lessor (or the Initial Lessee in the event of and with respect only to a default
by a particular Sublessee) may immediately terminate the' Lease or Sublease.
Lessee hereby agrees that all occupants shall use the Leased Premises and
Improvements for affordable residential purposes only and any incidental
activities related to the residential use that are permitted by applicable zoning
law.
ARTICLE XVII
Repair Obligations
During the continuance of this Lease the Lessee, and every Sublessee with respect to
their leased or purchased portions of the Demised Premises, shall keep in good state of
repair any and all buildings, furnishings, fixtures, landscaping and equipment which are
brought or constructed or placed upon the Demised Premises by the Lessee, and the Lessee
shall not suffer or permit any strip, waste, or neglect of any building or other property to be
committed, except for that of normal wear and tear. The Lessee will repair, replace and
renovate such property as often as it may be necessary in order to keep the buildings and
other property which is the subject matter of this Lease in first class repair and condition.
Additionally, Lessor shall not be required to furnish any services or facilities, including but
not limited to heat, electricity, air conditioning or water or to make any repairs to the
premises or Affordable Housing Units.
ARTICLE XVIII
Additional Covenants of Lessee. Lessor
Section 18.01 Legal Use. The Lessee covenants and agrees with the Lessor that the
Demised Premises will be used primarily for the construction and operation of a multi-unit
affordable housing complex and the other matters as may be set forth in this Lease, with
related amenities and facilities, and for no other purposes whatsoever without Lessor's
written consent.
Section 18.02 Termination. At the termination of this Lease the Lessee will
peaceably and quietly deliver possession of the Demised Premises, unless the Lease is
extended as provided herein. Therefore, Lessee shall surrender the improvements together
with the leased premises. Ownership of some or all improvements shall thereupon revert to
Lessor, at its option as to which improvements Lessor might like to require, provided,
however, that for any such improvements, Lessor shall promptly pay the individual unit
owners, as consideration for the improvements, an amount not to exceed the allowed
purchase price according to the Affordable Restrictions.
Page 31 of 39
Section 18.03 Recovery of Litigation Expense. In the event of any suit, action or
proceeding, at law or in equity, by either of the parties hereto against the other, or any other
person having, claiming or possessing any alleged interest in the Demised Premises, by
reason of any matter or thing arising out of or relating to this Lease, including any eviction
proceeding, the prevailing party shall recover not only its legal costs, but reasonable
attorneys' fees including appellate, bankruptcy and post-judgment collection proceedings
for the maintenance or defense of said action or suit, as the case may be. Any judgment
rendered in connection with any litigation arising out of this Lease shall bear interest at the
highest rate allowed by law. Lessor may recover reasonable legal and professional fees
attributable to administration, enforcement and preparation for litigation relating to this
Lease or to the Affordable Restrictions from any person or persons from or to whom a
demand or enforcement request is made, regardless of actual initiation of an action or
proceeding.
Section 18.04 Condition of the Demised Premises. Lessee agrees to accept the
Demised Premises in its presently existing condition "as-is". It is understood and agreed
that the Lessee has determined that the Demised Premises are acceptable for its purposes
and hereby certifies same to Lessor. Lessee, at its sole cost and expense, shall bring or
cause to be brought to the Demised Premises adequate connections for water, electrical
power, telephone, storm water and sewage and shall arrange with the appropriate utility
companies for furnishing such services with no obligation therefore on the part of Lessor.
The Lessor makes no express warranties and disclaims all implied warranties. Lessee
accepts the property in the condition in which it currently is without representation or
warranty, express or implied, in fact or by law, by the Lessor, and without recourse to the
Lessor as to the nature, condition or usability of the Demised Premises, or the uses to which
the Demised Premises may be put. The Lessor shall not be responsible for any latent defect
or change of condition in the improvements and personalty, or if title, and the Rent
hereunder shall not be 'withheld or diminished on account of any defect in such title or
property, any change in the condition thereof, any damage occurring thereto, or the
existence with respect thereto of any violations of the laws or regulations of any
governmental authority.
Section I8.os Hazardous Materials. Lessee, its Sublessees and assignees shall not
permit the presence, handling, storage or transportation of hazardous or toxic materials or
medical waste ("hazardous waste") in or about the Demised Premises, except in strict
compliance with all laws, ordinances, rules, regulations, orders and guidelines of any
government agency having jurisdiction and the applicable board of insurance underwriters.
In no event shall hazardous waste be disposed of in or about the Demised Premises. For
purposes herein, the term hazardous materials or substances shall mean any hazardous,
toxic or radioactive substance material, matter or waste which is or becomes regulated by
any federal, state or local law, ordinance, order, rule, regulation, code or any other
governmental restriction or requirement and shall include petroleum products and asbestos
as well as those materials defined as hazardous substance or hazardous waste in the
Comprehensive Environmental Response Compensation and Liability Act and! or the
Resource Conservation and Recovery Act.
Page 32 of 39
Lessee shall notify Lessor immediately of any discharge or discovery of any
hazardous waste at, upon, under or within the Demised Premises. Lessee shall, at its sole
cost and expense, comply with all remedial measures required by any governmental agency
having jurisdiction.
Lessor hereby warrants and represents that to its knowledge, the Demised Premises
is free of any hazardous waste.
ARTICLE XIX
Representations, Warranties of Title and Quiet Enjoyment
Lessor and Lessee represent and warrant that to their knowledge, there are no
material claims, causes of action or other proceedings pending or threatened in respect to
the ownership, operation or environmental condition of the Demised Premises or any part
thereof. Additionally, the Lessor and Lessee covenant and agree that so long as the Lessee
keeps and performs all of the covenants and conditions required by the Lessee to be kept
and performed, the Lessee shall have quiet and undisturbed and continued possession of
the Demised Premises from claims by Lessor.
ARTICLE XX
Miscellaneous
Section 20.01 Covenants Running \vith Land. All covenants, promises, conditions
and obligations herein contained or implied by law are covenants running with the land and
shall attach and bind and inure to the benefit of the Lessor and Lessee and their respective
heirs, legal representatives, successors and assigns, except as otherwise provided herein, but
this provision shall in no way alter the restrictions on assignment and subletting applicable
to Lessee hereunder.
Section 20.02 No Waiver. Time is of the essence in the performance of the
obligations of the parties hereto. No waiver of a breach of any of the covenants in this Lease
shall be construed to be a waiver of any succeeding breach of the same covenant.
Section 20.0~ Written Modifications. No modification, release, discharge or waiver
of any provisions hereof shall be of any force, effect or value unless in writing signed by the
Lessor and Lessee, or their duly authorized agents or attorneys.
Section 20.04 Entire Agreement. This Lease, including the Preamble and any
written addenda and all exhibits hereto (all of which are expressly incorporated herein by
this reference) shall constitute the entire agreement between the parties as of this date. No
prior written or prior or contemporaneous oral promises or representations shall be
binding. The execution hereof has not been induced by either party by representations,
promises or understandings not expressed herein and there are no collateral agreements,
Page 33 of 39
stipulations, promises or undertakings whatsoever upon the respective parties in any way
touching the subject matter of this instrument which are not expressly contained in this
instrument. [BUT SEE PURCHASE AND SALE AGREEMENT]
Section 20.05 Notices. If either party desires to give notice to the other in
connection with and according to the terms of this Lease, such notice shall be given by
certified mail return receipt requested and it shall be deemed given when deposited in the
United States mails with postage prepaid. Nothing herein contained shall be construed as
prohibiting the parties respectively from changing the place at which notice is to be given,
or the addition of one additional person or location for notices to be given, but no such
change shall be effective unless and until it shall have been accomplished by written notice
given in the manner set forth in this Section.
Section 20.06 Joint Liability. If the parties upon either side (Lessor and Lessee)
consist of more than one person, such persons shall be jointly and severally liable on the
covenants of this Lease.
Section 20.07 Liability Continued. Lessor Liability. All references to the Lessor and
Lessee mean the persons who, from time to time, occupy the positions, respectively, of
Lessor and Lessee. In the event of an assignment of this Lease by the Lessor, except for
liabilities that may have been incurred prior to the date of the assignment, the Lessor's
liability under this Lease shall terminate upon such assignment. In addition, the Lessor's
liability under this Lease shall be at all times limited to the Lessor's interest in the Demised
Premises.
Section 20.08 Captions. The captions used in this Lease are for convenience of
reference only and in no way define, limit or describe the scope or intent of or in any way
affect this Lease.
Section 20.09 Table of Contents. The index preceding this Lease under the same
cover is for the purpose of the convenience of reference only and is not to be deemed or
construed in any way as part of this Lease, nor as supplemental thereto or amendatory
thereof.
Section 20.10 Governing Law, Venue. This Agreement shall be construed under the
laws of the State of Florida, and the venue for any legal proceeding to enforce or determine
the terms and conditions of this Lease shall be Monroe eounty, Florida.
Section 20.11 Holding Over. Any holding over after the expiration of the term ofthis
Lease, with consent of Lessor, shall be construed to be a tenancy from month to month, at
twice the monthly rent as required to be paid by Lessee for the period immediately prior to
the expiration of the term hereof, and shall otherwise be on the terms and conditions herein
specified, so far as applicable.
Section 20.12 Brokers. Lessor and Lessee covenant, warrant and represent that no
broker was instrumental in consummating this Lease, and that no conversations or
Page 34 of 39
negotiations were had with any broker concerning the renting of the Demised Premises.
Lessee and Lessor agree to hold one another harmless from and against, and agree to
defend at its own expense, any and all claims for a brokerage commission by either of them
with any brokers.
Section 20.13 Partial Invalidity. If any provision of this Lease or the application
thereof to any person or circumstance shall at any time or to any extent be held invalid or
unenforceable, the remainder of this Lease or the application of such provision to persons
or circumstances other than those as to which it is held invalid or unenforceable shall not be
affected thereby.
Section 20.14 Force Majeure. If either party shall be delayed, hindered or prevented
from the performance of any act required hereunder by reason of strikes, lockouts, labor
trouble, inability to procure material, failure of power, riots, insurrection, severe tropical or
other severe weather events, war or other reasons of like nature not the fault of the party
delayed, in performing work or doing acts required under this Lease, the period for the
performance of any such act shall be extended for a reasonable period.
Section 20.1.') Landlord/Tenant Relationship, Third Party Beneficiaries. This Lease
creates a landlord/tenant relationship, and no other relationship, between the parties. This
Lease is for the sole benefit of the parties hereto and, except for assignments or Subleases
permitted hereunder, no other person or entity shall be a third party beneficiary hereunder.
Section 20.16 Contingencies. This Lease Agreement is contingent upon Initial
Lessee obtaining all necessary permits to build the affordable units described herein, as well
as Initial Lessee obtaining adequate access for the unit owners to access their units at all
times. Therefore, in the event Initial Lessee is unable to obtain permits or adequate access,
Initial Lessee may terminate this Lease in its sole and absolute discretion. Initial Lessee
hereby acknowledges that in the event Initial Lessee terminates this Agreement, Initial
Lessee will not receive a reimbursement from Lessor for costs incurred by Initial Lessee
prior to such termination.
Section 20.17 Radon Gas Notification. Radon is a naturally occurring radioactive
gas that, when it has accumulated in a building in sufficient quantities, may pose health
risks to persons who are exposed to it over time. Levels of radon that exceed federal and
state guidelines have been found in buildings. Additional information regarding radon and
radon testing may be obtained from your county health unit. Lessor shall not be
responsible for radon testing for any persons purchasing, leasing or occupying any portion
of the Demised Premises, and all owners, Lessees and Sublessees shall hold Lessor harmless
and indemnify Lessor for damages or claims related thereto.
Section 20.18 Mold Disclosure. Mold is a naturally occurring phenomenon that;
when it has accumulated in a building in sufficient quantities, may pose health risks to
persons who are exposed to it over time. Mold has been found in buildings in Monroe
County. There are no measures that can guarantee against mold, but additional
information regarding mold and mold prevention and health effects may be obtained from
Page 35 of 39
your county health unit or the EP A or eDe. Lessee and Sublessees accept responsibility to
inspect for mold and take measures to reduce mold.
IN WITNESS WHEREOF, the Lessor and the Lessee have hereunto set their hands
and seals, the day and year above written.
Signed, Sealed and Delivered
in the presence of two witnesses:
LESSOR: MONROE COUNTY
By:
Printed Name
Printed Name
(as to Lessor)
LESSEE:
By:
Printed Name
Printed Name
(as to Lessee)
Page 36 of 39
SCHEDULE" 1 "
COMMENCEMENT DATE AGREEMENT
This Agreement IS made as of
("Landlord") and
200_ by and between
("Tenant").
WHEREAS, Landlord and Tenant have entered into a Lease dated
Premises designated on Exhibit A attached to the Lease;
, 200_ for
WHEREAS, the Commencement Date, as defined in Article III of the Lease, has occurred;
and pursuant to the Lease, Landlord and Tenant desire to confirm various dates relating to the Lease
and the square footage of the Premises.
NOW THEREFORE, Landlord and Tenant agree and acknowledge that the information set
forth below is true and accurate.
Commencement Date:
Initial Term Expiration Date:
The execution of this Agreement shall not constitute an exercise by Tenant of its option with
respect to the Extended Term.
EXECUTED as a sealed instrument on the date first set forth above.
LANDLORD:
TENANT:
By:
By:
its
its
Page 37 of 39
EXHIBIT
LETTER OF ACKNOWLEDGEMENT
TO: Initial Lessee, or its assigns
Address of Initial Lessee, or its assigns
DATE:
This letter is given to (. ....Initial Lessee. ...) as an acknowledgement in regard to the
Affordable Housing Unit that I am purchasing. I hereby acknowledge the following:
. That I meet the requirements set forth in the Affordable Restrictions to purchase
an affordable unit.
. That the Affordable Housing Unit that I am purchasing is subject to a ground
lease by and between and
(hereinafter "Lease") and therefore I will
be subleasing a parcel of land.
. That my legal counsel, , has explained to me the
terms and conditions of the Lease and other legal documents that are part of this
transaction.
. That I understand the terms of the Lease and how the terms and conditions set
forth therein will affect my rights as an owner of the Affordable Housing Unit,
now and in the future.
. That I agree to abide by the Affordable Restrictions, as defined in the Lease.
. That I understand and agree that one of the goals of the Lease is to keep the
Affordable Housing Units affordable from one owner to the next, and I support
this goal.
. That in the event I want to sell my Affordable Housing Unit, I must comply with
the requirements set forth in the Lease, including but not limited to the price for
which I can sell.
. That my lease prohibits me from severing the improvements from the real
property.
. That my family and I must occupy the Affordable Housing Unit and that it cannot
be rented to third parties.
. I understand that in the event that I die, my home may be devised and occupied by
my wife, my children or any other heirs so long as they meet the requirements for
affordable housing as set forth in the Lease.
. That I have reviewed the terms of the Lease and that I consider said terms fair and
necessary to preserve affordable housing.
. I hereby warrant that I have not dealt with any broker other than
in connection with the consummation of the
purchase of the Affordable Housing Unit.
Page 38 of 39
Page 39 of 39
A COMPLETE SELF CONTAINED
APPRAISAL REPORT OF
A 49 PROPOSED CONDOMINIUM PROJECT
LOCATED AT
5300 MACDONALD A VENUE
STOCK ISLAND, FLORIDA 33040
BY
GREATER CARmBEANAPPRAISAL & CONSULTING, INe.
1224 Flagler Avenue
Key West, Florida 33040
EXECUTIVE SUMMARY
Subject ProperLy:
Location:
Zoning:
Site Size:
~'As Is" Date of Valuation:
Prospective Date of Valuation:
Value Indicators:
Sales Comparison Approach:
"k; Is" Land Value
"As Is" Value via Development Method:
Final "As Is~' Market Value:
Cost Approach:
Gross Aggregate Retail Sellout
Development Method:
"Prospective" Wholesale Market value:
ewrn.
551OU$#1
Stock Island, Florida 33040
URM, Urban Residential Mobile district by Monroe
County, Florida.
.,
1 55,0000 sq uare feet.
June 8, 2005
September 30, 2006
$ 9,065,000
$10,300,000
$lO~OOO,OOO
$36,000,000
$35,770,000
$26,200,000
Greater Caribbean Appraisal & Consulting, Inc.
June 14,2005
I
I
1.
i
I
Re: A proposed 49 unit condominium project to be located at: 5300 McDonald A venue,
;O~d' Florida 33040
Dear
As requested we have prepared the attached complete self-contained appraisal report of the
above referenced property. The purpose of the report is to estimate the 11 As Is" Market
Value of the subject property, in fee simple title, as of June 8. 2005 as well as the
"Prospective" Wholesale Market value of all of the units to a single purchaser upon
completion of the project on September I, 2006, as of June 8, 2005. The prospective
aggregate retail market value of the 55 units will also be estimated
{
.
t
!
Market Value may be defined as the most probable price which a property should bring in
a competitive and open market under all conditions requisite to a fair sale. the buyer and
seller, each acting prudently, knowledgeably and assuming the price is not affected by undue
stimulus.
The subject property consists of approximately. 155,000 square feet of URM (Urban
Residential Mobile Home) zoned land located at 5300 MacDonald Avenue, Stock Island,
Florida. The site ha.<: nlans to comrtnlct 4.Q Tnumh(m~1'! dvle ('1\ni!<lmtnlllm nnits ~
~x
project is close to nearby restaurants and marinas tfiat service the area.
June 14, 2005
~
In my opinion, the "As Is" Market Value of the subject property, in fee simple title, as of June 8,
2005 is
TEN MILLION DOLLARS
($10,000,000)
In my opinion, the "Prospective" Wholesale Market Value of the subject's 49 units, upon completion
of the construction to a single purchaser on September 30,2006 as of June 8, 2005 is
TWENTY SIX MILLION TWO HUNDRED THOUSAND DOLLARS
($26,200,000)
This appraisal has been made in accordance with the Standards of Practice and Code ofEtrucs of
the Appraisal Institute, the guidelines according to USP AP and FIRREA
Jeff~naber
Statr~ertified General Real
Estate Appraiser, >Jo 0002475
IDENTIFICATION OF SUBJECT PROPERTY
The subject property consists of 155,000 square feet URM zoned land located at 5300 Macdonald
Avenue, Stock Island, Florida. .
PURPOSE OF THE APPRAISAL
The purpose of the report is to estimate the "As Is" Market Value of the subject property, in fee
simple title, as of June 8, 2005 as well as the "Prospective" Wholesale Market value of aU of the
units to a single purchaser upon completion oftlle project on September 30, 2006, as ofJune 8,2005.
The prospective aggregate retail market value of the 49 units \vill also be estimated. .
MARKET VALUE
The following definition of market value is used by agencies that Regulate Federally Insu~ed
Financial Institutions in the United States, as : ;
The most probable price which a property should bring in a competitive and open market under all
conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and
assuming the price is not affected by undue stimulus.
Implicit in this definition is the conswnmation of a sale as of a specified date and the passing of title
from seller to buyer under conditions whereby:
>I< Buyer and seller are typically motivated;
* Both parties are well informed orwell advised, and acting in what they consider their best
interests;
:(< A reasonable time is allowedfor exposure in the open market;
:(< Payment is made in terms of cash in US dollars or in terms offinancial arrangements
comparable thereto; and
:(< The price represents the normal consideration for the property sold unaffected by special
or creative financing or sales concessions granted by anyone associated with the sale.
Tbe "Prospective" wholesale market value is defined as the prospective value of the proposed
project, upon completion ofthb new construction. This value includes discount for the sellout period
of tbe units, along with the appropriate selling costs and entrepreneurial profit for the remaining
period of the sellout. This i~ a value to a single purchaser upon completion of the construction.
DATE OF APPRAISAL
The opinions and conclusions of this appraisal are stated as of June 8, 2005 the date of the final
inspection. The prospective market value is based on the estimated date of completion and sellout
of the project, or September 30,2007.
PROPERTY RIGHTS APPRAISED
The property rights being appraised are all rights existing in fee simple, as of the appraisal date of
appraisal. Fee Simple Estates is defined as fonows: (ID~ Di~tionary of Real Estate Ap..Q.raisal, 4th
Edition, Appraisal Institute 2002):
Fee Simple Estate: "Absolute ownership unencumbered by any other interest or estate, subject only
to the limitations imposed by the governmental powers of taxation, eminent domain, police power
and escheat"
USE OF APPRAISAL REPORT
This appraisal report is to be used by the client, Branch Banking and Tmst, for valuation purposes
regarding financing decisions.
LEGAL DESCRIPTION
Parcel A
Lots 1 thru 20 Sqr 38 & pt disclaimed First Avenue (Resolution #33-1973), STOCK ISLAND
MALONEY SUBDMSION as recorded in Plat Book 1, page 55 of the public records ofMomoe
County. . .
Parcel B
Part of disclaimed First Avenue (Resolution #33-1973), STOCK ISLAND MALONEY
SUBDIVISION as recorded in Plat Book 1, page 55 of the public records ofMomoe County.
OWNER OF RECORD
According to the Monroe County Tax records, the owner is;
Bounty Fisheries Limited
5300 Macdonald Avenue
Key West, Florida 330401
:2
PRIOR RECENT SALES
The subject property is currently under contract for a reported purchase price of$9,000,000, The
transaction is expected to close by July of2005, The seHer was the existing mobile home park in
poor condition, All the trailers were personal property and are to be removed by the seller. The sale
price \vas based upon redevelopment of the site into 49 townhouse style condominiums. The sale
price per unit of$183,673 is consistent with sales of individual sites within the county and ready for
development. There have been no other market transactions of the subject property over the past
five years<
ASSESSED VALUE AND TAXES
The fonawing is a summary of the assessed value and taxes for the entire parceL
Alt. Key 1159476
Alt. Key 8707975
Market Value
Total $1,785,789
Total $ 30,600
Tax.es
$20,760.87
$ 326.81
According to the Monroe County Tax Records, the 2004 taxes have been paid, There are no other
prior delinquent taxes< The assessed value and taxes are typical for the area.
The subject portion will be a vacant parcel, as the existing improvements are being demolished or
removed from the site by the seller.
STATE DATA
The State of Florida has increased rapidly in population from 9,746,000 in 1980 to approximately
15,982,378 as of the 2000 Census Data, Florida in the past has been known principally for its tourist
attractions, citrus, and winter produce. In addition to being a year-round resort area, the State has
experienced an influx of growth of industry and manufacturing since Wodd War II, Florida is now
less dependent upon tourism which indicates a more stable year~round economy. The trend of the
Florida economy generally parallels that of the nation with favorable future economic forecasts.
MONROE COUNTY DATA
Monroe County stretches 150 miles south and west of Miami and Miami-Dade County along a series
of islands or keys COIlllected by 42 bridges carrying u.s. #1 (Overseas Highway) to terminus Key
West, the County seat. Total usable land area scattered over the larger keys is about 100 square miles,
which includes Key West's 6+ square miles. Of this 100 square miles,
only 25% is improved. However, most of the 75% vacant land is not develop able, meaning it is
either wetlands, mangroves, or native areas protecting endangered species of birds, animals, plants
and marine life,
3
MONROE COUNTY DATA (Continued)
Virtually all of this land is 0 to 18 feet above mean high water and classified within the FEMA 500
year flood hazard zone. The geology is mostly oolite (calcium carbonate granules) and coral rock.
Tropical vegetation covers surface areas with a wide assortment of grasses, vines, shrubs and trees
such as palms and pines. The shoreline is extensive and nearly all in mangroves, a protected specie.
Sand beaches are few and are usually found in five or six state parks.
On the Atlantic Ocean or Florida Straits side oftne Keys is a string of barrier reefs four to six miles
off-shore with the axis of the Gulf stream two to four miles beyond, flowing northward. This band
of turquQise and blue water contains some of the finest sport fishing in the world. Snorkeling and
scuba diving are very popular, especially at John Pennenkamp and Looe Key State Underwater Parks.
Monroe County is the southernmost of Florida's 67 counties beginning at the Miami-Dade County
line about 40 miles south of Miami, extending west and north to include the Everglades National Park
and part of the Big Cypress National Preserve, and stretching 120 miles south and
west along the largest of some 800 islands or Keys across 42 bridges carrying U.S. #1 (Overseas
Highway) to terminus in Key West, the County seat. Total county area is 1,788 square miles,
1,672 square mile of which is national park and preserve. Unincorporated public and private usable
areas is 94 square miles plus 6.25 square miles in the City of Key West, 4.87 square miles private and
1.4 square miles military. There are another 116 square miles in offshore Islands.
HISTORY
When the first Spanish explorers approached the Florida shores in the 16th century as they searched
for rumored gold and eternal youth, a number of native Indian tribes had long resided throughout the
peninsula and on its surrounding islands. The southernmost regions were dominated by the Tequestas
and the Calusas, who thrived on the abundance provided by the sea and the rich coastal lands,
Like the other early Florida tribes, the Tequestas and Calusas eventually disappeared with the coming
of West em civilization and its accompanying diseases and conquering spirit. Some of the void was
filled, though by other natives, Creek Indians who slowly moved into the southern states. They were
neither welcomed nor beloved by the European and American settlers, They came to be called
"Seminoles", a name perhaps cormpted from the Spanish word cimarron, meaning "wiW' or from the
Creek words ishti semoN, meaning "wildmen" or "outlanders" or "separatists".
One contemporary chronicler of explorer Ponce de Leon, observing the chain of islands on the
horizon, said they appeared as, men who were suffering~ hence they were given the name Los Mar/ires
or "the martyrs." No one knows exactly when the first European set foot on one of the Keys, but as
exploration and shipping increased, the islands became prominent on nautical maps. The nearby
.. treacherous coral reefs daimed many actual seafaring "martyrs" from the time of early recorded
history. The chain was eventually caUed "keys", also attributed to the Spanish, fromcayos, meaning
"small islands".
4
MONROE COUNTY DATA (Continued)
In 1763, the Spanish ceded Florida to the British in a trade for the port of Havana, The treaty was
unclear as to the status of the Keys. An agent of the King of Spain claimed that the islands, rich in
fish, turtles and mahogany for shipbuilding, were part of Cuba, fearing that the English might build
fortresses and dominate the shipping lanes. The Britishalso realized the treaty was ambiguous, but
declared that the Keys should be occupied and defended as part of Florida. The British claim was
never officially contested. Ironically, the British gave the islands back to Spain in 1783, to keep them
out of the hands of the United States, but in 1821 all of Florida, including the necklace of islands,
officially became American territory.
In the early 1900's, travel between many of these islands was only possible by boat A modern
pioneer, Henry Morrison Flagler, claims responsibility for providing the first civilized access to the
Keys. He dreamed of extending the Florida East Coast Railway from Homestead to Key West llis
dream was realized in 1912, after years of extreme physical hardship for the engineers and laborers
who designed and built it.
After the 1935 Labor Day hurricane destroyed the railroad, it was replaced by the Overseas Highway
in 1938. The highway has since been widened and modernized. More than 40 bridges now connect
these islands, like a Caribbean necklace, for more than 126 miles.
Though most of the Florida Keys remained remote and inaccessible until well into the 20th century,
their history glitters with romantic tales of pirates, fortunes gleaned from unfortunate shipwrecks,
brief heydays for several island cities, struggling pioneer farmers and occasional military occupation.
It also holds its share of tragedy resulting from settlers' encounters with hostile Indians, yellow-fever-
bearing mosquitoes, dangerous hurricanes and unpredictable seas.
GEOLOGY
The Florida Keys lie on a thick layer ofIimestone, The rock is covered by an ancient coral reef. In the
lower islands, the porous Miami oolite, with its rich vegetation, appears once again. Low~lying islands
with slight variations in elevation, the Keys boast a high point of 18 feet:, on Windley Key. For the
most part, however, they are very flat. There are over 800 islands large enough to appear on
government charts, though many other tiny mangrove islets exist and are still aborning. About 30 of
the Keys are inhabited.
To the east of the Florida Keys lies the only living coral reef in the continental United States. It is
located between four and sev~h miles offshore, running parallel to the Keys from Key Largo to the
Dry Tortugas. This living marine marve~ rising as high as a few feet below the surface of the water
and descending to depths near the Gulf Stream., protects the Keys from the waves of the pounding
Atlantic surf and hence from the development of sand beaches, a great surprise to many first-time
visitors.
5
MONROE COUNTY DATA (Continued)
Florida is the only state in the continental United States to have extensive reef building coral
formations near its coasts. Every year, over six million visitors come to the Florida Keys to enjoy the
incredible system and the unique waters in which it lives. The special lure of the Florida Keys
supports a two billion dollar economy. This economy depends on a healthy marine environment.
The Florida Keys National Marine Sanctuary, administered by the N ationa] Oceanic and Atmospheric
Administration (NOAA) in partnership with the Florida Department of Environmenta! Protection
(FDEP), encompasses 2800 square nautical miles of the waters surrounding the Florida Keys with the
goal of balancing the long-term health of the ecosystem with the economy it supports.
POPULATION
As of the 2000 census, the 2000 total population of Monroe County is estimated at approximately
80,000 permanent residents increasing to approximately 125,000 during the peak winter season. Key
West has approximately 28,000 permanent residents increasing to approximately 90,000 in season
and is host to about 1.5 million tourists. This population is spread among the Upper Keys (Key Largo
to Lower Matccumbe) 28%, :Middle Keys (Long Key to Marathon) 17% and Lower Keys (Big Pine
to Stock Island) 23%. Approximately 15,000 vehicles per day cross into Monroe County according
recent traffic counts.
Commercial fishing was equal in importance to the tourist industry a few years ago, but has declined
drastically, while tourism has grown rapidly since 1980. Industry in the Florida Keys, which was
dominated by commercial fishing until recently, has changed in recent years to sport fishing and
diving, marinas, motels, time-share resorts, restaurants, and other tourist-oriented businesses. Over
the past ten years, the tourist se~on has expanded from a few months a year to almost ye,ar round,
The United States Navy also contributes significantly to the Lower Keys economy, since Key West
Trumbo Point and Boca Chica Naval Air Station are home to naval fighter training and development
All services are represented with highly trained units~ This results not only in a substantial military
population requiring housing and services needs, but also employment for local civilians.
Monroe County growth and population have been steadily increasing over the past fifteen years.
Much of the new resident population has located throughout the Keys. However, the greatest
concentration of growth is located in Key Largo and the northern part of the county. Key West has
grown 12% since 1980, but Monroe County as a whole grew 23%.
6
MONROE COUNTY DATA (Continued)
Tourism is now the single major economic driving force. 173,000 cruise ship passengers disembarked
in Key West in 1990. ThIs was a 323% increase from the previous year. 1994 through 1997 saw
more increases as the number of cruise ships stopping in Key West averaged one per day with
occasionally two & three in port at a time with one anchored offshore with passengers transported
into Key West via party head boats. 1998 saw a slight decline due to inclement weather caused by
Hurricane Georges. 1999 through 2003 indicated an increase over 1998 and 1997. Key West has
approximately 3,800 hotel and motel rooms with another 1,300 rooms in guest houses and rental
houses. Reports indicate occupancy rates of 70% in the county areas and 75% + for transient
properties in Key West. This high occupancy factor is due to occupancy increases in the off-season,
as Key West and the Florida Keys become a year round tourist destination.
In 1981, Monroe County created the County Tourist Development Council (TDC). This is a non-
governmental entity of Monroe County whose sole purpose is to promote and advertise tourism for
all of Monroe County. The Monroe County TDC is funded by a 3% tax on aU overnight
accommodations in Monroe County. The first two percent oftms 3% tax is used to promote all of
Monroe County induding the City of Key West. The secdnd portion of the IDC's bed tax is a one
percent tax on all overnight accommodations in Monroe County. This 1 % revenue is then allocated
among different sections of the county (Marathon and the Lower Keys, Key Largo, Key West etc.),
based on their pro-rated contribution of revenues. The pornon of this revenue allocated to Key West
is approximately 55% (per the TOC).
These funds are used for direct expenditures for advertising, promotion, tourist information services
and special events promotions. Of this total collected tax, approximately 65% goes to promotion and
advertising and 35% to special events.
Tourism has seen a steady increase in revenue since the late 1980's. This is likely attributable to the
growth in hotels and motels during this period. Moderate increases in revenues have occurred in the
1990's, likely attributable to increased rental rates.
This increase in rental rates is likely due to the county's inability to add significant additional
transient units. This translates into high occupancy rates, and with the strong supply oftourists the
ability to command a higher rent for these transient units. This slightly upward trend is likely to
continue, or at least remain at current levels, through the early 22nd century due to rate of growth
restrictions placed by state and federal agencies.
Based on the above facts, i~ is obvious Monroe County have made a commitment to spending
significant dollars to ensure the continued success of tourism in all of Monroe County.
7
MONROE COUNTY DATA (Continued)
TRENDS & CHANGES
Monroe County encompasses all of the Florida Keys and the Everglades National Park, providing
access to excellent year round weather, scuba diving on living coral reefs and many wrecks, plus the
finest sport fishingin the world,
The State Government, through the Department of Community Affairs (DCA) has declared Monroe
County an Area of Critical Concern, subject to overriding review of the Land Use Plans
submitted by the County. and City governments. Basically, DCA wants to stop or severely restrict
future development until such serious problems as adequate sewage treatment and disposal, solid
waste disposal, infrastructure deterioration, and various environmental impacts are properly
addressed. Monroe County and the City of Key West governments have been leaning in the other
direction in response to the developers and the business community to increase expansion, plus their
own internal need to find additional revenues just to maintain existing governmental structures,
This situation comes down to a continuing battle between these three entities. As a result, building
permits are difficult and expensive to obtain, frequently taking up to two years of constant effort.
Some permits however, are processed with a minimum of delay.
There recently was a 5 year building moratorium in Monroe County, which was replaced with a Non
Residential Rate of Growth Ordinance (NROGO) for the unincorporated areas ofthe county. The new
NROGO does not apply in the recently fonned cities ofI\1arathon and Islamorada, as their LDR and
Comprehensive plans have yet to receive final DCA approval. Once these are approved, these
recently incorporated areas are anticipated to create their own similar NROGO ordinances.
Meanwhile these areas are still under a commercial building moratorium.
Monroe County has the highest cost ofEving of aU of Florida's 67 counties. It has topped the list for
the past 20 years. Gasoline typically costs 10 cents a gallon more in Key West than in Miami.
Housing in Key West is about 30% to 40% above the state average and 20% to 25% higher than
Miami-Dade County} its nearest competitor. An unfurnished one bedroom apartment in a preferred
location such as Old ToVffi Key West win rent' for $1,000 to over $1,400 per month. A less
expensive small 12 x 12 studio can easily rent for as much as $900 per month or more.
Change is taking place throughout Monroe County as build-able land becomes more scarce, canal and
waterfront lots are owned by speculators and developers~ and permitting costs increase. Land and real
estate valuations have increasep steadily in Key West since the early 1990's, with similar increases
seen in most areas of the county.
8
MONROE COUNTY DATA (Continued)
Taxes have been increasing in like manner as county and city governments attempt to deal with
sewage and solid waste disposal, road and bridge repair, and crime control problems. The Tourist
Development Council, on the other hand, funded by a I 1% bed tax, is advertising, and promoting
tourism to support the number one element of our economy by persuading more people to visit the
Keys. In a sense, this is a Catch-22 situation. More tourists to maintain the local economy, but the
county is hard pressed for the sewage systems, solid waste landfills, and infrastructure repair to
adequately support the residents and visitors we now have.
Change is taking place among the population, Longtime residents are finding real estate taxes and
flood insurance becoming a major burden on top of other rising costs, As a result, some residents are
selling the houses they have lived in many years, and moving to Central Florida or other areas of the
southeast or Mid Atlantic regions to a better quality of life they can afford,
School principals state they cannot keep qualified teachers even with two family incomes. A similar
situation is found in many businesses, trying to keep reliable employees in Key West where housing
costs and taxes are the highest in the County.
The.quaint, laid-back fishing village that was the City of Key West up until 15 to 20 years ago has
changed with the addition of some modem luxury motels, condominiums and time share properties.
Two recently completed planned unit developments, The Key West Golf Club and Roosevelt Annex,
continue this trend with a mix of townhouses and single family residences, aimed at the upper end
market. In addition, the Roosevelt Annex is to provide more affordable housing units. Other new
projects within Key West include redevelopment of the J abours R V park into luxury condominiums
as weU as the redevelopment of the old City Electric Plant. Other new developments include Coral
Hanunockjust outside of Key West on Stock Island.
A recent trend for redevelopment throughout the county is the purchase and redevelopment ofRV,
motel and mobile home parks into high end luxury housing, There are currently 6 such projects in
various stages of redevelopment at the current time.
Recently, many unincorporated areas of the county have voted for incorporation. The most recent
Keys to incorporate were Marathon in 1999 and lslamorada in 1998. This recent trend is to ensure
more local control over government issues in these local areas.
Efforts are being made to provide much needed affordable housing for those coming to work in the
service industries. A 192 unit ~ordable apartment development has been constructed in the past few
years, In addition the county and cities provided incentives for owners who develop affordable
housing units.
9
MONROE COUNTY DATA (Continued)
Marathon airport recently went forward with expansion and construction of a new terminal facility,
Marathon reported a 32% increase in arrivals to 27,800 people in 1993. However, since 1994
commercial air traffic in and out of Marathon has been reduced, with all major airlines eliminating
service in and out of the Marathon Airport due to it's relatively close location to Key West. However,
recent changes in the airline industry invohling use of regional jets (RJ's) may impact the Marathon
Airport, which currently has no commercial service.
The new RJ's offer direct service to major hubs, rather than connecting through Miami, Fort
Lauderdale, Tampa or Orlando. The only current lU service is from Key West to Atlanta direct. This
flight is usually near capacity and runs twice per day. The only limitations are the short runway,
which barely meets FAA minimums fOf this type of aircraft. However, Marathon airport is remodeled
and has approximately 8,000 linear feet of paved mnway, which can be extended to approximately
10,000 linear feet. This fact along with possible direct jet service to major airline hubs makes use of
the Marathon Airport appealing to the major airlines. The market area served by this airport now
includes all areas north of Marathon, where residents and tourists typically have drive to Miami
International Airport rather than Key West. Due to these changes it is anticipated that corrunercial
air service may commence sometime in the next year.
Key West airport, originally built to handle 35,000 people, recorded a jump from 401,349 in 1992
to 435,186 in 1993, and nearly 500,000 for all of 1999 through 2003. New regional jet service was
approved in the fall of 2002, with Delta Airlines now operating direct regional jet service to Atlanta.
Key West Airport also recently went under significant renovations, with the creation of a separate
customs and a new hrreyhound bus terminal.
Increased tax burdens and other high costs associated with living in Monroe County, has resulted in
some long-time residents leaving (especially those on fixed~incomes). Those property owners
who remain must be financially in the median-upper to upper economic range, in order to cover
everyday expenses. This stratification means that low average-pay scale makes it difficult to
attract and retain teachers, nurses, policemen, firemen, college professors, and service industry
workers. However, the strong tourist economy of Monroe County encourages entrepreneurship in the
form of charter boat businesses, boutiques, specialty shops, restaurants, lounges, hotels, motels, and
time-share projects. Key West is a town of small businesses, largely directed toward the tourist
economy. This is true for the cities of Marathon, Islamorada, as well as the unincorporated island of
Key Largo.
A tourist-based economy req~tes many service employees; hence a need for employee housing. Due
to supply and demand factors' for housing in recent years, service employees could not afford
a suitable place to live, unless two or more shared an apartment. Due to government tax incentives
for developing IIAffordable Housing" units in this area, several new projects have recently been built,
and have rental rates which are affordable by the employee population. One of the more recent Key
West rental developments is Mariners Cove, located on Northside Drive.
10
MONROE COUNTY DATA (Continued)
Increasing property taxes and housing costs throughout the Keys are slowly creating a stronger
demand for affordable rentals. It is estimated in Key West alone there is an estimated shortage of
1,800 affordable housing units. This trend continues to grow as many out of state property owners
purchase multiple family homes and convert them back.to single family residences. This.trend has
greatly accelerated Over the past 24 months, especially in Key West. Recent resales of homes in Old
Town typically range from $500 psffor a "fixer upper" to over $1,000 psffor some classic revival
homes in excellent condition. The upward trend continues, likely to the unique architecture and
climate only found only in this tropical island within the confines of the United States. These
properties are also seen as a safer alternative investment by many wealthy individuals throughout the
country, many of whom have lost significant dollars in the stock market and mutual fund markets.
Similar trends, though not quite as extreme, are occurring throughout the county.
Several moderate income housing projects are currently in the planning stage within Monroe County.
Two small projects are planned for Marathon, with tentative plans for a 65 unit project in the on Stock
Island. In addition.. there have been several recent proposals for renovation of the old City Electric
steam plant in Key West, as wen as a proposed 80 unit project on Rockland Key. A plan for
development of low income housing in the Roosevelt Annex development was recently scaled back
to create moderate income housing, with a voucher type plan to acconunodate lower income families.
In addition, the City of Key West passed a referendum in late 2000 to borrow $2.5 Million in funds
for affordable housing in the Bahama Village neighborhood.
The major trend of the cities of Key West and Islamorada .are becoming upper-class tourist
destinations. In Islamorada this is due to the world class fishing in the area, and recent renovations
of resorts with rising room rates for motels, as well as renovations of existing buildings into upscale
shopping centers. In Key West no single development reflects this more than Truman Annex, where
prices for a condominium begin around $300,000. This trend is further reflected in the conversion
of residences to retail or other commercial. uses along upper Duval Street as well as areas along
Simonton, White and Truman Avenues. The City of Marathon is redeveloping at less intense rate
than other areas of the keys, however this is anticipated to slowly change once the city enacts it's own
comprehensive plan and land development regulations.
Therefore, the overall observation is that Monroe County and Key West is largely dependant on a
strong tourist-based economy. Inherent in growth is increased demand on utilities, services, and
public facilities.
11
MONROE COUNTY DATA (Continued)
As an isLand community, stretching approximately 130 miles southwest of the Florida mainland, one
major problem in the county is waste disposal, A new Key West sewer plant came on-line in early
1989, trying to end the seepage of the city's raw sewage into the surrounding waters, In 2000 tests
of water quality by the EP A indicated strong levels of human fecal matter in some beaches in Key
'.Vest and the middle keys area. This is caused by leaky sewers in Key West, and the numerous
number of on site septic systems in the remainder of Monroe County. This has caused some negative
publicity for Monroe County. The affects on the local economy were minimal, and the city of Key
West has replaced a majority of the older sewer lines. Some county and city officials in the remainder
of Monroe County have proposed a county wide sewer system, similar to the FKAA. water system
No official solution to the overall problem has yet to be determined.
Another major county wide concern is solid waste disposal, since the current dump sites will likely
be closed within the next few years, with no potential sites for new landfills available in Monroe
County. At this time the City and County are discussing a possible mutual solution to the solid waste
problem aU of which will cost the tax payers more and more over the next years.
Another concern has been the recent 2001 and partial 2002 summer droughts in South Florida. The
situation worsened in early 2004, but has stabilized in 2005. However, new residential development
in south M.ami-Dade county is also putting a strain on the water supply. Therefore long term there
are still concerns of a possible salt water intrusion into the well field in Florida City. The majority
of Florida's fresh water supply is located in the northern 112, of the state with the majority of the
population located in the southern half of the state. There has been some discussion of a pipeline or
canal water system, similar to the system found in the valley areas of Arizona.
These recent droughts were the worst experienced in South Florida since 1961. This well field
services aU of Monroe County, and as the well water level dropped the chances increased that salt
water could infiltrate the well. In a worst case scenario this could have contaminated the well site
forever, creating a difficult problem on exactly where Monroe County would obtain it's fresh water
source.
Other problems result from scarcity of land for recreational facilities, new schools, government
centers, and low and median~priced housing. Traffic congestion on the few main thoroughfares in
Key West and US # 1 in the remainder of the county is becoming heavier each season. More vehicular
and pedestrian accidents occur due to heavy traffic, and minimal potential exists for widening the
existing highway. The only major highway through Monroe County is U.S. #1 (Overseas Highway),
which terminates in Key West; :
12
MONROE COUNTY DATA (Continued)
A Comprehensive Land Use Plan has been developed to cope with these and other problems of the
area. The major thrust of this new plan is Concurrency, which means development will not
take place, unless supporting facilities are adequate. Therefore, development is going to be more
difficult and more expensive, with developers carrying the burden for increased demand on facilities.
the ultimate result willlikcIy be less new development, and even higher prices for that which already
exists.
Many of the renovated homes in the Key West Historical District are selling at prices exceeding
$2,000,000, as are many waterfront properties in Monroe County. Many vacant sites in certain areas
of the county, such as Islamorada, have sold for over $1,000,000. Commercial buyers are also very
active with recent national chains moving into the county, such as Hard Rock Cafe, Bass Pro Shops,
Outback Steakhouse, Office Max and Office Depot. Also many smaller high end retail operations
are expanding into the Islamorada, Key Largo and Key West Markets. However the City of Key West
has recently passed an ordinance prohibiting such chains from proliferating in certain zOIling districts
of the city in order to maintain a more smaIl town feel.
These clearly visible changes in the economy are a direct result of the trend toward high-end tourism,
resulting in a more sophisticated resident and consumer.
The Florida Keys continue to grow, but environmentalists and conservationists continue to be more
vocal and militant. Destruction of the fragile ecology has ground to a halt during the past few years.
There have also been recent discussions on the federal and state levels regarding no fishing zones in
the <<Hump" off of Islamorada and other areas in the Florida Keys.
The Monroe County Planning Department has a "Rate of Growth Ordinance" (ROGO) in effect for
an of Monroe County, which is based on a hurricane evacuation time frame of 25 to 30 hours. This
has the effect of severely limiting new residential growth
At this time the number of residential permits which may be issued in Monroe County per year stands
at 255, which is dispersed throughout different areas of the county. Building permits for residential
development are currently issued on a priority point basis. Commercial development in the County
Areas is affected by the previously mentioned NROGO system., which replaced a five year
moratorium on commercial construction, This new Non Residential Rate of Growth ordinance based
on the number of residential permits issued each year. The estimated amount of new commercial
development is estimated to be between 20,000 and 221000 square feet per year, per Monroe County.
13
MONROE COUNTY DATA (Continued)
Recently Monroe County has complied with a request from FEMA to allow inspection and removal
of lower level residential enclosures that have been constructed iIlegally since the late 1970's, This
has been a controversial issue for the past few years, but compliance was inevitable as FEMA had
threatened to not fund any hurricane related insurance or disaster aid if the county remained un-
compliant. Possible ramifications do include an increased shortage of affordable housing as many
of these illegal enclosures have been occupied by low income workers throughout the county.
Monroe County electric service is provided by the Florida Keys Electric Co-Op in the middle and
upper keys, and serviced by Keys Energy Services (formerly City Electric of Key West) in the lower
keys and Key West areas. Rates are subject to approval by the State Public Service Commission and
monthly bills are based on kilowatt hour consumption.
Telephone service is provided by BeIlSouth and water servjce by Florida Keys Aqueduct Authority.
City Sewer service is available in Key West, with most of the remainder ofthe county having on site
septic systems.
There are 10 private and 17 public schools throughout Monroe County. The upper Keys (Layton-
Ocean Reef) has one high school and two elementary schools, the middle keys (Marathon) has one
high school and one elementary school and the Lower Keys (Key West) has one high school, one
middle school, six elementary schools and one ungraded school. Monroe County also has a
community college. The main campus to the Florida Keys Community College is located in Key
West, however, there are branches located in the Upper Keys (plantation Key) and Middle Keys
(Marathon). A new high school is planned for the Upper Keys,
The County is serviced by several local newspapers. The :Miami Herald is distributed throughout the
Florida Keys (Key Largo-Key West). The newspaper serving the Lower Keys is the Key West
Citizen. The Middle Keys is served by the Keynoter. The Upper Keys are served by the
Free Press, Keynoter, and Repartee There ate severallocaI radio stations throughout the Keys, and
the Upper Keys have three PM stations.
The Florida Keys have excellent water recreational activities. Thousands of visitors come each year
to dive and fish the coral reefs throughout the Florida Keys. Although primarily limited to water
recreation, the county also has two golf courses, dog racing, and movie theaters. Monroe County also
has a free public library system with three branches located throughout the county,
14
MONROE COUNTY DATA (Continued)
U.S. #1 (also known as Overseas Highway) is the main thoroughfare entering and exiting the Florida
Keys. In Monroe County, US. #1 (Overseas Highway) begins at Mile Marker 112 and
runs approximately 112 miles to Key West. There are two public airports located in Monroe County,
one in Marathon and the other located in Key West. The Miami International Airport is located
approximately 50 miles north of the Key Largo area and is the major airport used by residents in the
Upper Keys. Ground transportation services are limited to taxi services and the Greyhound Bus.
Summary:
The overall economy of Monroe County has steadily increased over the past decade. The tourist
industry is the dominating market for revenues generated in the county. The steady increase in
tourism over the past several years is expected to continue wen into the foreseeable future. The
effects of the September 11 th 2001 terrorist attacks appear to have had minimal impact on the local
economy. However during the recent nationwide recession, the local economy appeared to have been
unaffected. This was especially true to retailers along Duval Street, who pay some afthe highest rents
per square foot in the nation. However recent statistics indicate a strong market in Monroe County
with little impact on sale prices and the number of tourists visiting Monroe County.
Due to limiting the number of building permits residential and commercial growth will be minimal
over the foreseeable future. However, because of the ever increasing tourist base the existing
properties, such as hotels and motels, will experience increases in demand over the next few years.
National Economic Indicators
The national economy had slid into a moderate recession during late 2002 and the first half of 2003.
The national unemployment rate has hovered around 6% or more over the past few months. The most
recent unemployment rates have dropped an are now below 6%.
However, in the period after the 1990-1991 recession, the unemployment rate peaked at 7.8%. During
the last 30 years, the unemployment rate has averaged 6.3%. The recent 6.0% +/- appears to be a
concern, but compared to historical data is not as significant as many think However the total number
oflong term unemployed appears to be a significant problem for the country as a whole.
The economy may not be expanding as it did in the late 1990s, but it does show some sign of
deflating, which many economists may fear is on the .horizon. During the first half of the year the
economy appeared to stall, Jl'lpstly due to the uncertainty and eventual war with Iraq. Since the war
started the stock market has been a constant state of flux due to uncertainties of war and the fear of
a protracted conflict.
...
However, rapidly increasing prices for single family homes have made home ownership unaffordable
for most residents. The current range in prices in the current housing stock is from $750,000 to
$2,500,000 mth a median price of around $1.2 million
15
MONROE COUNTY DATA (Continued)
National Economic Indicators (Continued)
However, Real Estate values have also remained strong nationwide, due to the volatility of the stock
market and record low interest rates. Many major metropolitan areas have seen double digit increases
in property values, within many m~or urban areas having median home prices above $250,000. Only
two MSA areas had median market values below $100,000.
The cause of these increases are likely due to the above mentioned "safe" history long term of real
estate. However, the median family income today (two income earners) compared to the median
family income in the late 1960's and early 1970's (one income earner) is approximately 75% in
adjusted doUars. Thus the middle class appears to have lost economic ground while the national
GDP has remained strong or stronger over the same period. This disparity in income distribution,
combined with rising nationwide home values has a serious negative effect for new home buyers, who
are unlikely to have the income or assets to purchase a home in the foreseeable future. The short term
effect appears to be inflation, which the Federal government has yet to officially recognize, but has
to exist with these types of value increase over the past 24 months. Typical statements tend to infer
that the lower cost of funds have offset the increase in value. Although in reality rates have been
stable most oftms period, with recent slight increases due to the effects of the Bond Market.
Other concerns for this nationwide residential real estate market is the current and past
administrations allowing the outsourcing of many professional and non-professional jobs to foreign
countries. This practice has been increasing over the past decade, and poses a serious threat to the
stability of the national economy. The recent increases in real estate prices may fall if no new jobs
are created and more jobs are outsourced. Owners of existing homes may have to sell, and if
residential rates increase, which is likely since they are tied to the bond market, the homes will have
less value as most purchasers in the recent boom bought homes based on payment afford ability rather
than a realistic comparison to the principle of substitution. Thus many developers have made
phenomenal profits in excess of20% entrepreneurial profit. Since this has occurred many suppliers
have joined the bandwagon and prices for lumber and supplies are at record high prices, due largely
to the temporary boom in real estate values.
If the economy does not grow significantly and the outsourcing of jobs is not halted, the country also
long tern faces the risk of deflation. The deflation will occur not only from deflated real estate values
in most parts of the country, but from lower costs of goods due to outsourced labor and re-imported
goods at a lower cost.
16
MONROE COUNTY DATA (Continued)
National Economic Indicators (Continued)
However, the Gommerciallending market has a much more stable TIlture, as rents have increased only
slightly nationwide and lending rates are tied to the Federal Funds rate, which is still at near record
low rates and has been stated by the Reserve Board it intends only minor increases for the foreseeable
future (1 to 2 years according to most economists). Many major urban markets have seen annual
increase of20% or more in residential property, which is seen as a much safer investment than stocks
The recent decrease in the federal funds rate will only further fuel real estate investment, due to low
returns in the money markets.
The Federal Reserve's rate-setting committee meets eight times a year. Each time, it issues a statement
that explains its rate policy, describes the current stat.e of the economy and predicts the future
direction of the economy. The statements are drafted by Fed chairman Alan Greenspan.
The most recent statements have been almost identical to previous statements, with exception of a
more upbeat assessment because the economy finally started created jobs in September 2004 after
eight straight months of shedding jobs.
Most prices do remain steady because businesses can't afford to raise them. This is primarily due to
the fact that personal income levels have not risen significantly and housing prices have soared.
However, the Committee perceives that the upside and downside risks to the attainment of sustainable
growth for the next few quarters are roughly equal. In contrast, the probability, though minor, of an
unwelcome fall in inflation exceeds that of a rise in inflation from its already low level. The
Committee judges that, on balance, the risk of inflation becoming undesirably low remains the
predominant concern for the foreseeable future. In these circumstances, the Committee believes that
pollcy accommodation can be maintained for a considerable period.
In other words, the Federal Reserve Board believes the chances that the economy will grow in the
next year are rougWy equal to the chances that it will be stagnant. The Feds do admit that deflation,
though they believe is a low risk, remains their biggest worry over the iong term.
However, as previously stated, the short term increases in housing costs may cause a short period of
inflation, which may be foHowed by a serious period of deflation if the outsourcing of jobs and
distribution of income is not corrected. At the most recent Federal Reserve Board Meeting there was
talk of another possible hike in the prime rate later this year, depending on the economic outlook later
this year.
17
MONROE COUNTY DATA (Continued)
Kev West and Monroe County Market
However, the above mentioned factors have little impact on the local housing market, as many of the
buyers are wealthy individuals either migrating to the Keys or investing for future retirement. The
typical income of these purchasers is well above the national average and many are some of the
wealthiest individuals in the country. However, home prices over $2,000,00 are currently experience
long exposure times, as the high end market may have peaked due to a limited amount of buyers
available to purchase these high priced homes
The commercial tourist market is also unlikely to be affected, unless an extended period of deflation
occurs for an extended period of time.
At the present time Motlfoe County is in the middle of the tourist season, and the local economic
conditions in the tourist trade appear to be in line with previous years, with the exception of the short
period after 9/11. This is due to the previously stated facts regarding the uniqueness and accessibility
of the Florida Keys by automobile. However some retailers have seen reduced spending for items
other than food and lodging, likely due to the slowdown in the general economy. Analysis of hotel
and motel occupancy rates from 2003 and 2004 indicate no significant change.
The average interest rate has dropped significantly since 2000, with many commercial lenders still
offering 3-5 year fixed rate loans at 6%, 25 year amortization and 5 to 10 year balloons. Analysis of
recent sales indicate Internal Rates of Return ranging from 5% to 10% for all types of commercial
properties.
NEIGHBORHOOD DESCRlPTION
Stock Island immediate neighborhood data
The subject property is located on the Overseas Hwy on Stock Island. Stock Island is primarily a
mixed use island with residential, commercial and a few industrial properties scattered throughout
the island. Additionally there a several large marinas located on the southern and Eastern ends of the
Island. The Northern portion of the Island is developed with a golf course, a hospital, a community
college and a new residential development adjacent to the golf course. Police protection is provided
by Monroe County, Public transportation is available to Key West on a limited basis. The
neighborhood is stable with a few new residential and commercial projects being constructed
annually. The neighborhood is primarily suburban and approximately 75%-80% built-up.
Key West, one to five miles West, is the primary shopping area for the lower Florida Keys, On Key
West there are located many major grocery, banking and retail outlets, such as Sears, Penneys, Winn
Dixie, Publix and Scotties, which service the Lower Keys area, The county provides police and fire
protection as well as the education system. Water is provided from the Florida Keys Aqueduct
Authority, sewer from the City of Key West and power is from City Electric.
18
NE!Q!:!1illRH 000 DESCRIPTION (Continued)
Condominium Market
The condominium market in the northern portions of Key West and Stock Island have been strong,
with several recent projects having been developed. The Salt Ponds Condominiums are located on
South Roosevelt Boulevard and have been marketed towards middle income property owners, with
a certain percentage of the units targeted towards moderate income buyers. This project sold out
quickly and has had recent resales indicating 100% above the origina.! developers selling prices.
Sunset Marina and Waterfront Residences is located north of the subject on the Bay side of Stock
island with 60 units that originally ranged in price from $385,000 to over $575,000 for the larger
units. This project also contains a renovated marina with 45 condominium boat slips and 118 retained
by the marina. This project has received good acceptance and had an indicated absorption rate of 1.4
units per mOntfL Prices in this development have increased 50% to 75% Qver the past 18 months.
Boating is limited primarily to powerboats due to lack of deep water access to the Gulf of Mexico and
height restrictions due to the existing US#l bridge which provides access to the Atlantic Ocean.
Flaglers Landing is a 13 unit project that was developed in 1999 and 2000. All of the units were sold
prior to completion of the project with prices ranging from $299,000 to $660,000. The project has
no moderate deep water access, however any sailboats have a significant distance to deep water due
to the bridge on Fleming Key. Again resales indicated price twice the original asking price.
Coral Hammock is a 59 unit townhouse style project located 1 block east of the subject. Ths project
sold out with reservations immediately and had original prices from approximately $300,000 to
$450,000. Recent re-sales have hovered around $700,000 for this project. This is the most recent
project compared to the subject.
Conclusion
The subject is located within a stable area of residential, industrial, office and some retail properties.
Demand for new housing is strong, as evidenced by the success of similar projects in the area.
Therefore the demand this type of property is anticipated to remain strong for the foreseeable future.
ZONING
The subject property is zoned URM, a mixed use district that allows residential mobile and single
family dwellings. The subjec~ site is being converted from Mobile home to stick built homes, which
is preferred by both FEMA and Monroe County due to the safety risk of mobile homes in the county
from potential Hurricane winds and storm surges. The intended us is allowable in the URM zoning
district.
19
STREET IMPROVEMENTS
Macdonald Avenue is a two lane, asphalt and gravel paved, roadway with a dedicated right-of-way
of 60 feet. The street improvements include street lighting and utility poles. US #1 is a four land
divided hjghway with a center median in front of the subject property.
SITE DES CRIPTlP N
The subject property consists of a rectangular shaped parcel with approximately 1 55,OOOsquare feet
of total land area. Access to the property is to be via MacDonald Avenue, The property consists of
two combined tax parcels,
Access
Access to the site is to be via an entrance on MacDonald Avenue. Access to US #1 is one block via
an signaled intersection with US #L Additional access to US #1 is via Third Street, which is an un
signaled intersection.
Topography
The site is level and at about road grade, Soil and subsoil tests were not perfonned as part of this
appraisal. Conditions are assumed to be adequate based upon existing improvements within the area.
Easements and Encroachments
The provided plans do not show any adverse easements or encroadunents. However the existing
improvements are to be moved off the subject site or demolished. Therefore, no adverse easements
are assumed. Typical utility easements would have no adverse affect on the subject.
Utilities
Water:
Sewer
Electric:
Telephone:
Police and Fire Rescue:
FKAA.
Key West Resort Utilities
Keys Electric (formerly City Electric of Key West).
BeUSouth.
Monroe County.
Flood Zone
The subject is located within Flood Zone AE, special flood hazard areas inundated by 1 DO-year flood,
per Monroe County flood map 12S07C community panel number 1736-H, effective March 3, 1997.
Flood insurance is normally required for properties within the AE zone.
20
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SITE_DESClSltTION (Continued)
Census Tract
The subject is located in Census Tract 9716
Concurrency:
The concurrency provisions of the Growth Management Act mandates that development can proceed
only when the necessary infrastructure is already in place or will be in place concurrent with the
impact of development. This concurrency rate means that developers must satisfy seven areas ofleve!
of service (LOS) including: roads, drainage, sanitary sewer, potable water, solid waste, recreation and
mass transit
The proposed subject project is based on all concurrency approvals being in place.
Impact Fees
Impact fees are those charges that are assessed to divide equal and fair coverage of all related
development costs as regarding the impact of the new units on the existing community. These fees
are assessed on a varying basis and include such items as a water charge, road charge, police and fire
charge and utility charge, among others.
According to the developer there are virtually no impact fees as the site is being redeveloped.
rROPOSED IMPROVEMENTS
able
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HIGHEST AND BEST USE
Highest and Best Use is defined as " 1) The reasonable aod probable use that supports the highest
present value of vacant land or improved property, as defined, as of the date of the appraisaL 2) The
reasonably probable and legal use of land or sites as though vacant, found to be physically possible,
appropriately supported, financially feasible, and that results in the highest present land value. 3) The
most profitable use.
Implied in these definitions is that the determination of highest and best use takes into account the
contribution of a specific use to the community and community development goals as well as the
benefits of that use to individual property owners. Hence, in certain situations the highest and best
use of land may be for parks. greenbelts, preservation, conservation, wildlife habitats, and the like."
Source: The Dictionary oEReal Estate Appraisal, published by the Appraisal Institute, 2002.
The definition immediately above applies specifically to the Highest and Best Use of land. It is to
be recognized that in cases where a site has existing improvements on it, the Highest and Best Use
may very well be determined to be different from the existing use. The existing use will continue,
however, unless and until land value in its Highest and Best Use exceeds the total value of the
property in its existing use.
There are four tests that a property must meet in order to indicate Highest and Best Use. The use must
be physically and legally possiple, financially feasible, and must be the most productive use among
the possible alternative uses. . ,
HIGHEST AND BEST USE (Continued)
1) Physically Possible: The conditions and nature of the site must be such that it can support
development Physical factors include size, shape, frontage, utilities and subsoil conditions.
The subject property contains 155,000 square feet ofURM zoned land. The property has adequate
frontage, depth and size to support the construction of any of the residential uses allowed under the
URM zoning designation. There is adequate access to utilities. Subsoil conditions are assumed to be
adequate. Uses such as condominium, single family dwelling development, mobile home park or
apartment project are all both physically possible uses.
2) Legally Permissible: Any proposed use for the site must be legal; it must conform to zoning
ordinances, deed restrictions, private use agreements or public historical use controls.
The subject property is governed by the URM zoning district which allows for residential single
family, condominium of mobile home development. The predominant recently developed uses in the
area are new townhouse style residences. Redevelopment in the area has been almost nearly all
residential or mixed use (residential and ground level commercial). Therefore the proposed use, as
housing development with 49 units, is a legal conforming use. The subject contains development
rights for 49 residential units as there was an existing trailer park on site with 49 units, which are to
be removed.
3) Financially Feasible: Any proposed use for the site must provide a yield on invested capital
sufficient to warrant the investment.
Condominium or apartment development is the only legal and possible use consistent with the
development within the subject neighborhood for similar waterfront sites. Nearby new condominium
developments have received good market acceptance.
New condominium projects in the area indicated absorption rates from 3 to 7 sales per quarter. The
projects in the area indicated favorable market acceptance. Therefore the use a single family housing
Conch style condominium project, as proposed is the most feasible use. This use also returns a
positive value to land and is, therefore, considered to be feasible.
4) Maximally Productive: That feasible use, based on financial use analysis and return to the land
and/or capital, that provides the highest yield for the longest period oftime.
A townhouse style condominilfm development is considered physically possible, legaUy permissible,
and the most financially feasible alternative. A review of condominium sales in the Key West area
indicated sale prices and absorption rates necessary to justify development of the project.
23
HIGfIEST AND BEST USE (Continued)
The Development Method includes a market survey of various new and existing condominium units
and developments in the market area. The survey indicates that the developments have received
favorable market acceptance and that sales/contracts are generated at a favorable rate. Therefore, it
is conduded that the neighborhood will support the development of a condominium project on the
subject property.
Since it is economically effective to develop the property rather than leave it vacant, the maximally
productive use is the development of a 49 unit townhouse stye condominium project as proposed.
Conclusion - Highest and Best Use as ifvacant
Based on the aforementioned analysis the highest and best use of the subject property is for the
development of a 49 unit condominium project, as proposed.
SCOPE OF APPRAISAL
As a part oftms appraisal, a number of independent investigations and analysis have been made. A
final inspection of the vacant site was conducted on June 8th 2005. A market survey of competitive
developments was conducted in order to detemune the feasibility of condominium development. The
absorption rates and cost estimates are used to develop a discounted cash flow model that provides
an indication' of value as related to the construction and sale of the proposed subject condominium
development.
Sales relied upon were confirmed through public records and with knowledgeable parties to the
transactions where possible with primary and secondary data utilized. Confirmation with principals
is often not possible due to their inaccessibility during the time frame over which the appraisal is
being prepared. In the course of the sales investigation, proprietary information is often v.-ithheld
from the appraisers.
Such information, which is not a matter of public record, is also not available to the general market
and for that reason, the market is imperfect. All data provided is verified to the best of our ability.
However, no legal or technical expertise are assumed and if leases or agreements and other fa9tual
data under review appear on the surface to be reasonable, the information is accepted as accurate. The
extent of this verification is to confirm that the documents exist and to review them. It is assumed
that they are legal and valid and the ability to audit, make legal interpretations, or to detect fraud is
not assumed.
The existence of any enviionmental hazard such as the presence of hazardous wastes, toxic
substances, radon gas, asbestos containing materials, ureaformaldehyde insulation, etc. which may
or may not be present in or on the subject property or any site within the vicinity of the property was
not observed and no knowledge of any such environmental hazard is not assumed. The appraiser,
however, is not qualified to detect such substances.
24
SCOPE OF APPRAISAL (Continued)
Also, no independent investigation of concurrency matters regarding the subject or any comparable
sale was made. No responsibility is assumed for anv such conditions, or for any expertise or
- .
engineering knowledge required to discover them. The user of the report should therefore consult an
attorney, contractor, accountant, engineer or other experts as necessary to verify technical data which
could impact on the value of the property.
There are three primary approaches to value which should be considered. They are: (1) the Cost
Approach, (2) the Sales Comparison Approach, and (3) the Income Capitalization Approach.
The Cost Approach utilizes the value of the subject land as estimated from the market together with
a replacement cost estimate of the structures and site improvements. From this a deduction must be
made for accrued depreciation: physical, functional, and economic, if any, to provide an additional
estimate of the total property value.
The Sales Comparison Approach involves an investigation and inspection of recent land sales in the
area as nearly similar as possible to the subject. The sale properties (comparable sales) are then
compared with the subject, and adjustments made for dissimilar characteristics. The Sales
Comparison Approach included sales of similar vacant residential tracts located in nearby Miami
Beach. These sales were used to estimate the "as is" market value of the subject site.
Searches were made to find individual retail sales of similar style condominium projects and units
similar to the subject property. Three similar condominium projects were located as well as resales
of very similar condominium units located on deep water within the Truman Annex development in
Key West. The sale properties (comparable sales) are then compared with the subject, and
adjustments made for dissimilar characteristics. The "as is" market value will also be estimated via
the Development Method.
One of the most reliable analytical methods available to estimate the probability of success
(feasibility) ofa project similar to the subject, is the Discounted Sell-Out Method (or Development
Method to Value). A positive indication for the success of any proposed development is usually
yielded when the present worth of the (discounted) cash flows are greater than the cost to produce.
Discounting is for time or for waiting. Proper appraisal technique requires the discounting process
to be applied over the estimated absorption period. The discounting process starts at the point of
maximum risk to the lender, which is when the construction of the units are finished and no units
have been sold (dosed). Up t6 the date of completion, costs ~dd to what is produced and therefore
to value. After completion of construction, an costs incurred are deductions because the costs are
necessary expenditures requi~ed to market the finished product.
25
SCOPE OF APPRAISAL (Continued)
Developer's overhead and profit is a cost to be recovered. Therefore, this entrepreneurial profit must
be included as part of the cost in the Development Approach. For feasibility to exist, value via the
Discounted Sell~Out Method must be equal or greater than the cost to develop. This discount value
is intended to. be an indication of the probable sales price of thecntirc completed site development
to a single, knowledgeable entrepreneur.
The lncome Capitalization Approach, designed for application to income producing properties,
utilizes a technique of capitalizing the net income into an estimate of value. The factors included in
the technique are derived from a study of other similar type income properties. Only the development
method will be used in this appraisal. Since it is not feasible to develop the site with a rental project
due to the high rents required to make such a project feasible, a traditional income approach will not
be applied.
In all cases, except an appraisal of vacant land, it is necessary that all approaches should be
considered and that those applicable approaches be utilized to form an estimate of value.
The Sales Comparison Approach and the Development method are used in this report.
LAND VALUE- SALES COMPARISON APPROACH - ("As Is" Market Value)
The technique in estimating the value for the land involves the principle of substitution as its basis.
The methodology includes an analysis of what buyers in the area are paying for similar properties.
Therefore, the value of the subject land is derived from analyzing sales of comparable properties in
the area. However recent vacant land sales from the area do not take in to consideration the
economic benefit of the subject site.
The subject sites differ from recent land sales in that a ROGO unit is already accounted for and the
time needed to obtain a building permit is greatly reduced.. Therefore is the opinion of the appraiser
that the sales comparison approach is not a reliable indicator of value.
A search was conducted in order to find recent sales of vacant land that is governed by the same or
similar land use requirements as the subject. A search of the immediate neighborhood and nearby
areas revealed the sales detailed below. .
The land comparables provide a range of land values within which the subject value is determined.
The comparables are outline~ in the chart located on the fullowing page.
26
LAND VALUE (Continued)
LAND SALES CHART
# Location Sale Sale Site 1 ~rut Roga Zoning Sale!
Dllte Price Size Unit
.... .
J 350 46"' Street 11/02 $125,000 4,848 1 No URM $125,000
\2 Lot 8, 5i05 $125,000 6,300 [ No IS $125,000
Summerland Key
3 28293 Helen Street 3/05 $250,000 6,000 1 Yes [S $250,000
Little Torch Key
4 o Gulfstream 4!05 $325,000 27,442 I No IS $325,000
:-.1ufa thOll
Land Sale 1 is the November 2002 sale ofa 4,858 square foot site with a mobile home located on the
site. The improvements are beyond their useful life, and the price represents the value of a dry lot
with a ROGO pennit. The indicated value was $125.000 per unit.
The seller was Richard Carnicom and the buyer was Maria Valdes. The sale was recorded in Official
Record Book 1837, Page 19 of the public records of Monroe County. The sale was conveyed via
Warranty Deed.
Land Sale 2 is the May 2005 sale of a.6,300 square foot vacant sitewith no ROGO rights, The
property is located on Summerland Key. The indicated price per unit was $125,000.
The seller was Richard Carnicom and the buyer was Maria Valdes. The sale was recorded in Official
Record Book 1837. Page 19 of the public records of Monroe County. The sale was conveyed via
Warranty Deed.
Land Sale 3 is the March 2005 sale of a 6,000 square foot vacant site with ROGO rights. The
property is located on Summerland Key. The indicated price per unit was $250,000.
The seller was Richard Carnicom and the buyer was Maria VaIdes. The sale was recorded in Official
Record Book 1837, Page 19 of the public records of Monroe County. The sale was conveyed via
Warranty Deed.
27
LAND VALUE (Continued)
Analysis:
Conclusion of dry lots
Sales 1 and 2 indicated a value of$125,000 per site. However, these sites had no ROGO rights to
build and the permitting process could take from 3 to 5 years. Sale 3 previously contained a residence
that had burned tot he ground, thus the site is exempt from ROGO and could be built upon
immediately. l\..nalysis ofROGO sales and market abstraction indicated an additional $50,000 per site
lots with ROGO rights to build. Therefore sales 1 and 2 were adjusted upwards $50,000 as depicted
in the following chart.
LA,'iD SALES CHART
# Location Sale Sale Site # Raga tAming Sale! Value
Date Price Size Unit Unit W/ Raga
I 350 46tll Street 11/02 $125,000 4,848 1 No URM $125,000 $175,000
2 Lot 8, 5/05 $125,000 6,300 1 No IS $125,000 $175,000
Summerland
Key
3 28293 Helen. 3/05 $250,000 6,000 I Yes IS $250,000 $250,000
Street
Little Torch Ke\'
Analysis
The three sales, after adjusting for ROGO rights, indicated a range from $175,000 to $250,000 per
unit. Most emphasis is given to sales 1 and 2, due to their smaller size, with less emphasis to sale
3 due to it's larger lot size. Thus a market price per lot of $185,000 per unit is concluded for the
subjects 49 dry lots.
This indicates the foIlowing:$185,000 x 49 sites == $9,065,000.
The method utilized does take into consideration the subjects positive position with regards to
rebuilding new homes on the sites. The current Rate of Growth Ordinance (ROGO) that has made
it very difficult to obtain a building permit The subject, due to the fact that there are manufactured
homes located a majority of the sites, allows the owner to construct new homes on the site without
having to meet the increasingly difficult standards that a site owner would need to complete.
20
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COST APPROACH TO VALUE
The Cost Approach utilizes the value of the subject land as estimated from the market toge1l1cr with
a replacement cost estimate of the structures and site improvements. From this a deduction must be
made for accrued depreciation: physical, functional, and economic, if any, to provide an additional
estimate of the total property value.
Construction Cost
The developer provided the appraiser with an estimate of the construction costs. The total direct costs
for the property for the condominium units and associated site work will be $11,310,756 This equates
to a cost 0[$305.65 per unit or $156.98 per square fool. Typical new construction costs in the Key
West market range from $125.00to $200.00 per square foot, depending on the quality ofconstruction,
No recent comparable wood frame project com parables were available for direct comparison. Based
on the known construction costs of single family classic revival style structures, the subject
construction costs are deemed reasonable and will be utilized. A complete copy of the provided costs
are included in the addenda.
Direct Costs:
Construction cost estimates have been calculated through the use of the Marshall Valuation Service,
a nationally accepted constmction cost reference guide. The final adjusted figure includes labor,
materials, supervision, contractor's overhead. and profit, architectural and engineering fees, building
permits, survey, insurance and reasonable interest under construction including processing fees or
service charges. The figures include normal site preparation, and utility lines from lot line to
building. All costs have been adjusted to local conditions, based on locally deriv,....
,0
I(
sf
Hard cost new for the 49 Unit Muttiple Residence structures are estimated to be $125.00/psf The
cost new for the Balcony areas is $45. OO/psi. A summ<;l.ry of the direct hard costs are located below:
Condominium Units: 80,98'4 SF x $120.00/SF ""
Balcony/Stairwells: 9;400 SF x $ 45.00/SF ""
Total Direct Building Costs
$ 9,713,760
$ 423.000
$10,136,760
::")
COST APPROACH TO VALUE (Continued)
Construction Cost (Continued)
Site Improvements:
As indltatedearlierthe site improvements consists of a swimming pool, concrete drives, utilities and
landscaping, The site improvement costs were estimated with the help of "Marshall Valuation
Service", The site improvements are allocated as follows:
Swimming Pool
Utilities
Landscaping:
Total Site Improvements
$100,000
$500,000
$350,000
$950,000
Summary of Direct Costs:
Hard Costs
Site Improvements
Total Direct Costs
$10,136,760
$ 950.000
$11,086,760
Indirect Cost
Real estate taxes: The subject is scheduled to close, and the County Appraisers office will likely
raise the value of the site based on the contract price of $9,400,000 for the land only. Typical
assessment ratios for the Monroe County Property Appraiser are 50% to 70% of the actual market
value. Applying an assessment ratio 60% to the estimated 2004 land value of $9,400,000 indicates
an estimated assessed value of $5,600,000. Utilizing an estimated Millage of 15,0 per One Thousand
in Assessed Value indicates an estimated tax of$141,000 for the subject property for fall of2006.
The estimated taxes are therefore estimated to be $23,000 for payable 2005 and $141,000 for payable
2006. The total tax liability is estimated to be $164,000.
Financing Fees: A 2% loan origination fee is considered reasonable for financing the subject At a
70% loan to value ratio is applied to the direct costs of$11,086, 760 and tl1.e true market value of the
land (from the land sales utilized earlier in this report) of $9,065,000. The total value is therefore
$20,151,760 and when multiplied by a 70% loan to value ratio indicates a loan amount of
$14,106,232. The estimated financing fee is therefore $282,125 ($14,106,2326 x 2%).
Professional Fees: Attorney, appraiser fees and marketing costs are estimated to be about 2% of the
direct costs or $221,735 ($11,086,760 x 2%).
Permits and Impact Fees: Construction impact fees are based on information provided by the
contractor and the Monroe County There should be no or minimal impact fees for the subject
Permits are estimated to be $150,000.
30
COST APPROACH TO VALUE (Continued)
Total Indirect Costs:
Real Estate Tax
Finane! ng Fee
Professional Fees
Impact Fees/permits
Total Indirect Costs
$164,000
$282,125
$221,735
$llQ.,OOO
$817,860
Replacement Cost before Entrepreneurial Profit
Adding the direct cost to the indirect cost equates to replacement cost of the building before
entrepreneurial profit of$11,904.620,
Entrepreneurial Profit
Entrepreneurial incentive is a necessary element in the motivation to develop any type of real estate;
it is best described as the difference between the cost to build and the subsequent sale price of a
property. Entrepreneurial incentive is typically estimated within 10% to 25% of building costs. A
survey of several developers indicated that an entrepreneurial incentive in the 10% to 20% range is
typical for most projects. For the purpose ofthis appraisal an estimate of 15% or $1.785,693 (.15 X
$11,904,620) is estimated.
Replacement Cost New
Adding the direct and indirect costs and entrepreneurial profit equates to a replacement cost new of
the subject proj ect of$13 .690.313, or $279,394 per unit. This equates to a cost of$169 .21 per square
foot which is in the range of construction costs in the area.
Depreciated Building Value:
Depreciation is a loss in property value from any cause. It may also be defined as any difference in
price between replacement cost new and market value. Depreciation is identified based on physical
deterioration, functional obsolescence and external (economic) obsolescence. The methods for
estimating accrued depreciation are the economic age.,life method, the breakdown method and the
market derived method.
The economic age-life method is a lump sum deduction of accrued depreciation, Basically a ratio of
the buildings effective age to its total economic life is applied to the current cost of the improvements.
The proposed building will be new with no physical depreciation. The total economic life is
estimated at 60 years, The indicated depreciation, based on the agellife method is 0%.
31
COST APPROACH TO VALUE (Continued)
Functional Obsolescence:
Functional Obsolescence is related to the market perception of the subject property, that IS, structural
components or key elements, including floor plan and interior improvements, are considered
inadequate and result in decreased utility, Other forms of functional obsolescence include
superadequacy, where the cost of certain elements of construction exceed the market value of the
same component. There are no fonus of functional obsolescence in the subject project
External (Economic) Obsolescence:
External Obsolescence is the diminished utility of a structure due to negative influences from outside
the site, which are incurable by the owner or the tenant. These negative influences can be caused by
a variety of factors; neighborhood decline, location or market conditions, There were no forms of
negative external obsolescence noted.
However, the assemblage of the project creates an additional positive form of Economic
Obsolescence, caused by shortage ofland and extremely limited new construction. This positive form
of economic obsolescence can be measured by comparing the value conclusion in the cost approach
with the gross estimated retail market value of the complex in the Sales Comparison (Gross
Aggregate) Approach. The estimated market value from the cost approach without the positive
economic obsolescence (mc1uding market land value) is $22,755,313. The estimated gross retail
sellout from the Sales Comparison Approach is $35,770,000. The difference of $13,014,687
represents the positive economic obsolescence, which will equate to additional profit for the
developers and provide a substantial contingency should any problems arise during construction, This
positive form of obsolescence is typically only found in areas such as Monroe County and :Miami
Beach, due to limited land development. Additionally the developers acquired the land for
$9,400,000, substantially below market, providing additional potential profit and contingency.
...
32
COST APPROACH TO VALUE (Continued)
Cost Summary and Value Estimate
Direct Cost:
Indirect Cost:
Total Direct & Indirect Costs
$11,086,760
$ 817,860
$11,904,620
Entrepreneurial Profit @ 15%
Replacement Cost New
$ 1,785.693
$13,690,313
Less Accrued Depreciation
Physical:
Functional Obsolescence:
External Obsolescence
Total Accrued Depreciation
Add: Land Value
Total
$ -0-
$ -0-
$13.014.687
$13,014,687
$ 9.065.000
$36,040,687
ESTIM.ATED VALUE VIA COST APPROACH
$36,040,687
Round To
$36,000,000
SALES COMPARISON APPROACH - Retail Market Value
The subject property will consist of a 49 townhouse style condominium units. The most similar
project in the area is the Coral Hammock, less than two blocks from the subject and recently
constructed. The most recent sales will be utilized and completed on a URAR fonn. The form is
located on the following ages. within the past 90 days will be utilized to estimate the current market
of the subject units. In addition several other projects will be analyzed in order to assist in proper
estimation of the required time period for complete sellout of the subjects 49 units.
...
~~
-'-'
SALES COMPARISON APPROACH - Retail Market Value
The estimated value of the unit style was completed on a F1'-i1\1A URAR fonn, located in the addenda.
The reconciled market value was estimated to be $730,000 per unit.
ABSORPTION RATES
Analysis of marketing times for similar homes ranged from IOta 240 days. Sale one was sold in 1
day. Sales 2 and 3 had exposure times of 49 days. MLS statistics for homes priced under $1,000,000
indicated exposure times ofless than 3 months.
Ocean 25 and Sister Creek, both current developments in nearby Marathon were sold out with pre-
construction reservations within 1 week. These developments were also appeased by Jeff Nienaber
for Marine Bank
Watermark. A dovrotown Key West development with Higher end homes around $2,000,000 had pre-
sales for the entire project within one week of marketing the project This project was also appraised
by Jeff Nienaber for Republic Bank.
Conclusion
Based on the above projects, the subject is likely to have pre-sales for most of the units within 30 days
of the initial marketing. However, some reservations will fall through when closing approaches, thus
a sellout period of 11 quarters is estimated for this reason.
GROSSRETAaSELLOUTVALUE
This represents the total gross proceeds that will be produced by this project This number is not
market value to the developer or one entity. Market value entails discounting tor a sellout over a
period of time. Both the "as is" value of the project and the "as built as if vacant" valuation will be
handled later in the DevelopmentlFeasibility Analysis.
Based on the estimated value. of $730,000 per unit, a total gross retail sellout of $35,770tOOO is
estimated (39 units times $730,000""" $35,770,000).
34
DEVELOPMENT METHOD - FEASillILITY (MARKET) ANALYSIS
This section win analyze the present value of the proposed project, after accounting for costs, risk,
and time value of money .
One of the most reliable analytical methods available to estimate the probability of success is the
Discounted Sell-Out Method. A positive indication for the success of any proposed development is
usually yielded when the present worth of the (discounted) cash flows are greater than the cost to
produce those flows.
Discounting is for time or for waiting and risk Appraisal guidelines require that the discounting
process be applied over the estimated absorption period. The discounting process starts at the point
of maximum risk to the lender: when the construction is finished and no units have been closed.
Up to the date of completion, costs add to what is produced and, presumably, to value. After
completion of construction, all costs incurred are deductions because they are necessary expenditures
required to market the finished product.
Developers. overhead and profit is a cost to be recovered. Therefore, this entrepreneurial profit must
be included as part of the cost in the Development Method, estimated at 15% for report purposes.
For feasibility to exist, value via the Development Method must be at least equal to the cost to
develop. This discounted value is an indication of the probable sales price of the entire completed
development to a single, knowledgeable entrepreneur. Thus, it represents market value.
The rationale is that the lender is committing money today based on a market value estimate of the
entire project Since the project will have to go through an absorption, or waiting, period. Therefore,
the value is influenced by discounting for the waiting period (time value of money theory).
ABSORPTION
As stated earlier, the absorption period is estimated at II quarters or 44 months. This is primarily due
to the longer construction period in Monroe County and possible contract cancellations late in the
sellout period. The required total seHout period is therefore estimated at approximately 11 quarters,
or by the end of September 2007.
35
DEVELOPMENT METHOD - FEASIBILITY (MARKET) ANALYSIS (Continued)
CASH FLOW ANALYSIS
The discounted cash flow analysis is a composite of the various components that are combined to
create a successful development. The analysis considers the acceptability of the product (market
absorption), the potential income stream generated by that product (unit prices) and the related costs
of production (site development, unit costs, selling costs and developer profit).
The cash flow analysis detenmnes is the "acceptable" prices (income stream)is sufficient to support
the development costs.
Gross Retail Sellout
As indicated in the previous section the gross retail sellout is $35,770,000.
Expenses
The next step in this approach is to estimate expenses related to developing and seHout of the
proposed project. Each relevant cost will be individually analyzed in the following sections.
Direct Costs or Hard Construction Costs:
The developer provided the appraisers with an estimate of the construction costs. A copy of the
developers estimated cost breakdown is included in the addenda.
Indirect Costs
Real Estate Taxes are paid annually in November. The taxes will be paid by the developer until the
units are sold. The taxes due in the fall of2004 are estimated to be $23,000 based on the most recent
taxes. After that point the taxes will be based on the vacant land and will recognize the recent sales
price. The taxes were estimated to be $141,000 for the fall of 2007 from the Cost Approach.
Therefore the total taxes are estimated to be $164,000 over the life of the subject project.
Selling and Marketing Costs usually include expenses for sales commissions, advertising,
promotional fees, etc. Typical costs are 5% to 10%. Selling expenses of 4% are considered
rea~onable for this size project. Based on typical selling and marketing costs an estimate of 4% will
be utilized.
Impact Fees and Permits
The total pennits and minimal impact fee expenses, as provided by the developer are $150,000,
Therefore these cost are included in the first period of the cash flow analysis.
General and Miscellaneous Fees are estimated at 2%.
36
DEVELOPMENT METHOD - FEASIDILITY (MARKET) ANALYSIS (Continued)
Entrepreneurial Profit, is an additional cost to be received. A survey oflocal developers agreed that
a 10% to 20% profit can be expected for similar projects in South Florida. For the purpose oftms
analysis. an 18% profit is estimated.
Discounted Cash Flow
According to the most recent issue of the publication of Valuation Insi~ht and Perspectives,
(published by the Appraisal Institute) showed average discount rates of7.0% to 12% for all types of
real estate except vacant land. There is no vacant land category listed. A rate range of8% to 9% is
indicated. A rate of 8.5% was utilized.
Final Value Indications:
The indicated "as is" market value via the discounted cash flow method is $10,300,000 (md). Please
refer to the discounted cash flow analysis located below:
NUI.IBER or- P<<€SM.€S
NOMSER Or ClQ.!;l~.'GS
luun ~ OCT lT5 !O J",'1 (/!lit) AOR 0010 JUl(Jf;!;) ocr Ul In ..L<\N 01 La ,"PR cr 10 JUlO? ttl T O'ci
se>C5 nEe us MAR 00 JUN" li5 &>prn; oc-c n;;: tlAA (Ji JUt,lOi SEP 07
I 2 a 4 5 G S 11
W HI 10 9 1) U (; l: 49
10 to 9 1 7 !i 4Q
OATE
P~RDDS (CUART€:RSj
G"t'JSS UNff SiKES
so
W ST.JOO,OOO S7..Y3t'.Nll W.!I7':V"l'A t5.1g"JOO SMK'.iXlO ~.;w.l.lkC (';6."170,000
LESS bJ(P'ENSES.:
HMO CCNSTRUC"fION
S;;uJN\ @ 4 'l:.
E~rrae:r @ 11m
IMPACT FEES;l"EFlMlTS
REAL ES1AtE TA>;
GEN'EP.Al., AND ACM l'l\.
101AL EXPF.NSEE
~.1l;Y.l,735 S2,ua.367 52.4111,361 S:<.HUli:'il 5J ~o $0 S() $,1,8s)'.CCO
.so SO smOO!! S29t.lfOO 5W2.,6;'lU ~.-W:: SZ>>AOO S US.A"\) .\,4$0,&)')
so sa $I,J14.lP'l>1 S1;i1J,JY.I~ H.l3Li):")(l S\l19.FZ!: sal a.&.YJ S7lj8, ~,3) SS.~:JaroJ
51'SV,till)
S23.VW S\<\I,OO(I S$1.00J
<>0 SO $14l>,CCfJ s;-:~aoe.c SI31.-Wi3 SI~'UA; SI02,:m S6"I.~ sn5.4C!l
S,5l).OW S4.:f159lJ5: Sl.411.t:lSi t4,17C,JE] SS,m,~1 $1,?17.!lOO S1.Z2SAW st.m...oo Sl.GS1.2fr} S2'J,148,&"f.l
1'1;:01 pRtX;t;B)S ..~5aj!t>!) .:;.I,85'1.73.'i .sz.t 18$ t3.12~H;33 S'l.3Tl.4G<; ~~.(!S2Z')(j $;1,003.1>00 3.i.!lIlJ.&Xl S3p.asro
(GROSS SAl..ES .. EXPS... PRt
M';T PRESENT v,>.;JJEi:
$9,&l~Glll
O.scOl 900""
;:;'OUNCED TO
Co:u~ unn
Msti<<!ll"""l.>'ll.
$10,300.000
SZ.i.l,63i
57,;Q)!(l:)
37
DEVELOPMENT METHOD - FEASIBILITY (MARKET) ANALYSIS (Continued)
In addition the lender has requested the estimated market value upon completion of the new
construction, as if vacant. This value is estimated by discounting the sellout period (1 quarter) and
assumes all construction costs have been paid. The only expenses would be profit, selling expenses
and general and administrative costs. The entrepreneurial profit is lower, since the project has been
constructed. Therefore a 10% profit is indicated. An increase in the risk rate is assumed at 10%.
Located below is a spreadsheet depicting the "Prospective" Wnolesale Market Value of all 49 units
to a single purchaser upon completion of the new construction on September 30, 2006, as of as of
June 8,2005. The indicated value is $26,200,000.
CATE
PERIODS {QUARTERS)
GROSS UNIT SALES
SEP 00
i3S.770,DOO
LESS EXPEtJS:::S;
ttARO 'CONSTRUCTION
SalWO&h~8~GCOSTS
ENTREPRENEl)RlAl PROFIT
IMPACT FEESJ?ERM1TS
REAL EsrAtE: 1;1<<
GENEAAl. ANQ ADMlNlSTRAiN!: @
TOTALEXF'ENSES
ROUNDED TO
@ 4~'{' $1,430,800
@ 10% $.3.577 ,oon
${J
.$9},00<l
~~~ $57,232
.$5, 115.032
~3\).654,g.:.m
$27.1156.153
10 .QO,{,
$:2~Z(lG.!}OO
$241,837
$730JX1{)
Nf::T f'RCC~OS
[GROb"'S SAtES. EXPS. - P:ROf'lT)
NET PRESENT VAlUE:
DISCOU.-rr RATE:
Cosl penm:t
M~rJ..",t per unl!
38
RECONCILIATION AND FINAL VALUE CONCLUSION
The condominium project "As Is" has been valued on the basis of two methods. The following are
the value conclusions of each method.
Value Indicators:
Sales Comparison Approach:
"As Is" Land Value
"As Is" Value via Development Method:
$ 9,065,000
$10,300,000
Both techniques provided reliable indicators of value. Most emphasis is given to the development
method, which is considered to be the most reliable indicator of the "As Is: market value for a
development project
Final "As Isn Market Value:
$10,000,000
Gross Aggregate Sell out
Cost Approach:
Development Method:
$36,000,000
$35,770,000
The cost and development methods produced nearly identical values. The cost approach was given
less emphasis due the positive economic obsolescence the project produces.
"Prospective" Wholesale Market value:
$26,200,000
Comments
The Sales Comparison Approach was used to estimate the "as is" market value of the land as well as
the retail market value of the proposed subject units. Three land. sales were used to estimate the "as
is" market value. The sales were all located in nearby Key West and were similar to the subject
having medium density coastal residential zoning.
The Retail Market Valuation by the Sales Comparison Approach is simply the total of the gross sales
and should not be misconstrued to represent market value by a single owner.
The development method is influenced by several assumptions, including profit and expense
estimates. The neighborhood absorption survey provides a consistent estimated as to the absorption
period, The overall cost estimates are based on typical bullder expenses.
The Development Method relies on the cash flow model which is influence by several factors. The
profit margin, at 20%. is adequate to support the development and would provide a positive value
influence ifit was decreased. The Development Method is well supported and is considered to be a
good indicator of value.
39
RECONCILIATION AND FINAL VALUE CONCLUSION
The "Prospective" \Vholesale Market Value to a single purchaser, upon completion of the
construction was estimated to be $26,200,000. This value is estimated by discounting the sellout
period (1 quarter) and assumes all construction costs have been paid. The only expenses would be
profit, selling expenses and general and administrative costs.
EXPOSURE Tli'\1E
Exposure time is the estimated length of time the property interest being appraised would have been
offered on the market prior to the hypothetical consummation of a sale at market value on the
effective date of appraisal; a retrospective estimate based upon an analysis of past events assuming
a competitive and open market.
The subject property is located in the one of the most desirable areas of South Florida. Limited
residential growth has increased property values over the past few years and new and existing
properties are exhibiting strong demand and short marketing and exposure times. This is evidenced
by the significant amount ofpre-saie agreements on the subject property. There is a minimal supply
of land remaining for development, therefore a vacant site with site plan approval can easily be
marketed.
The sales which all occurred prior to the date of appraisal indicated marketing times at less than one
year. Since the market values have been relatively consistent over the past few years the exposure
time for the subject property is estimated to be 12 months for the wholesale discounted value of the
project.
40
CERTIFICATION OF VALUE
I certify that, to the best of our knowledge and belief:
*
The statements of fact contained in this report are true and correct.
*
The reported analysis, opinions, and conclusions are limited only by the reported assumptions
and limiting conditions, and are our personal, unbiased professional analysis, opinions, and
conclusions.
*
I have no bias with respect to the property that is the subject of this report, and we have no
interest with respect to the parties involved.
'"
My engagement is not contingent upon the reporting of a predetermined value.or direction in
value that favors the cause of the client, the amount of value estimate, the attainment of a
stipulated result, or the occurrence of a subsequent event.
*
My reported analysis, opinions and conclusions were developed, and this report has been
prepared, in conformity with the Uniform Standards of Professional Appraisal Practice and the
Appraisal Institute.
*
I have made a personal inspection of the property that is the subject of this report.
*
No one provided significant professional assistance to the person signing this report.
*
The appraiser has performed within the context of the competency provisions of the Uniform
Standards of Professional Appraisal Practice and those of the Appraisal Institute, relating to
review by the Real Estate Appraisal Subcommittees of the Florida Real Estate Commission and
the Appraisal Institute. This report is made incompliance with the U.S.P.A.P. competency
provision,
'"
This report was not based on a requested minimum valuation, a specific valuation, or the
approval of a loan,
*
I currently hold an appropriate state license or certification aJlowing the performance of real
estate appraisals in connection with federally related transactions.
41
C E R T I F I CAT ION 0 F V A L U E (Continued)
*
This appraisal recognizes the following definition of value:
Market Value: as defined in Chapter 12, Code of Federal Regulation, Part 34A2 (t) is, "the
most probable price which a property should bring in a competitive and open market under all
conditions requisite to a fair sale, the buyer and seller each acting prudently and
knowledgeably, and assuming the price is not affected by undue stimulus, Implicit in this
definition is theconsUll1l11ation of a sale as of a specified date and the passing of title from
seHer to buyer under conditions whereby:
1) Buyer and seUer are typically motivated;
2) Both parties are well informed or well advised, and acting in what they consider their
own best interests,
3) A reasonable time is allowed for exposure in the open market.
4) Payment is made in terms of cash in US, dollars or in terms of financial arrangements
comparable thereto; and
5) The price represents the normal consideration for the property sold unaffected by special
or creative financing or sales concessions granted by anyone associated with the sale. H
This appraisal has been made in accordance with the Standards of Practice and Code of Ethics of the
Appraisal Institute, the guidelines according to USP AP and FIRREA.
In my opinion, the liAs Is" Market Value of the subject property, in fee simple title, as of June 8, 2005
1S
TEN MILLION DOLLARS
($10,000,000)
In my opinion, the "Prospective" Wholesale Market Value ofthe subject's 49 units, upon completion
of the construction to a single purchaser on September 30,2006 as of June 8,2005 is .
TWENTY SIX MILLION TWO HUNDRED THOUSAND DOLLARS
($26,200,000)
Respectfully submitted,
/
J e Nienaber
State Certified General Real
Estate Appraiser, No 0002475
42
ASSUMPTIONS AND LIMITING CONDITIONS
The value conclusion and certification within this report are made expressly subject to the
following assumptions and limiting conditions as well as any further reservations or conditions
stated within the text of the report.
1) No responsibility is assumed for the legal description or for matters including legal or title
considerations. Title to the property is assumed to be good and marketable.
2) All existing liens and encumbrances, (except the existing leases if any) have been disregarded,
and the property is appraised as though free and dear.
3) Responsible ownership and competent property management are assumed.
4) The information furnished by others is believed to be reliable. However, no warranty is given
for its accuracy..
5) All engineering is assumed to be correct. The plot plans and illustrative material in this report
are included only to assist the reader in visualizing the property.
6) It is assumed that there are no hidden or unapparent conditions of the property, subsoil, or
structures that render it more or less valuable. No responsibility is assumed for such
conditions or for arranging for engineering studies that may be required to discover them.
7) It is assumed that there is fun compliance with all applicable federal, state, and local
environmental regulations and laws unless non-compliance, is stated, defined, and considered
in the appraisal report.
8) It is assumed that all applicable zoning and use regulations and restrictions have been
complied with, except where non- conformity has been stated, defined, and considered in the
appraisal report.
9) It is assumed that all required licenses, certificates of occupancy, consents, or other legislative
or administrative authority from any local, state, or national government Of private entity or
organization have been or can be obtained or renewed for any use on which the value estimate
contained in this report is based.
10) It is assumed that the utilization of the land and improvements is within the boundaries of
property lines or the property described and that there is no encroachment or trespass unless
noted in this report.
43
ASSUMPTIONS AND LIMITING CONDITIONS (Continued)
II) Subsurface rights were not considered in making this appraisal,
12) The distribution, jf any, of the total valuation of this repOlt between land and improvements
applies only under the stated program of utilization. The separate allocations for land and
builclings must not be used in conjunction with any other appraisal and are invalid if so used.
13) Possession of this report, or a copy thereof, does not carry with it the right of publication. It
may not be used for any purpose by any person other than the party to whom it is addressed
without the written consent of the appraiser, and in any event only with proper written
qualification and only in its entirety.
14) The appraiser herein by reason oftms appraisal is not required to give further consultation,
testimony, or be in attendance in court with reference to the property in question unless
arrangements have been previously made.
15) Neither all nor any part of the contents ofthis report (especially any conclusions as to value,
the identity of the appraiser, or any reference to the MAl or SREA designations) shaH be
disseminated to the public through advertising, public relations, news, sales, or other media
without the prior written consent and approval ofthe appraiser.
16) The existence of potentially hazardous material used in the construction or maintenance of
the building and/or the existence oftoxic waste which mayor may not be present on or under
the site was not observed during our inspection. However, we are not qualified to detect such
substances. These substances, if they exist, could have a negative effect on the estimated
value of the property. The user of this report is urged to retain an expert in this field if
desired.
17) Unless specifically stated to the contrary in the report, no independent evaluation of
concurrency matters were made for the subject or any sales comparables. In the event
concurrency is found to affect subject property or any of the sales comparables, we reserve
the right to reconsider the value conclusion.
18) This appraisal was not based on a requested minimum valuation, a specific valuation, or the
approval of a loan.
44
ASSUMPTIONS AND LIMITING CONDITIONS (Continued)
19) The Americans with Disabilities Act (ADA) became effective January 26, 1992. The
appraiser has not made a specific compliance survey and analysis ofthis property to determine
whether or not it is in conformity with the various detailed requirements of the ADA. It is
possible that a compliance survey of the property together with a detailed analysis of the
requirements of the ADA could reveal that the property is not in compliance with one or more
of the requirements of the act. Ifso, this fact could have a negative effect upon the value of
the property. Since the appraiser has no direct evidence relating to this issue, he did not
consider possible noncompliance with the requirements of the ADA in estimating the value
of the property.
45
ADDENDA
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MONROE COUNTY PROPERTY ApPRAISER
PROPERTY INFORl\1A nON FOR:
Alternate Key: 1159476
RE Number: 00125350-000000
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Bu Hding Details
""F\!BtR OF Bl'fLDl:"GS
TOTAL Lf\TIG ARE.-\
...
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123~O
:;\nmER OF CO~[l.IERCI..\LJ!U!J)P'GS
1
XUI!JllJLI
19.tc1
Lan d Details
LA~D ("SF CODE
~1~()lJ - 21mB HOME DRY
OOOX . E~VlRO",,,,'iEN1ALL Y '5 ENS
Parcel Value History
~.RE.A
LGS:S SF
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Pal'eel Sales History
\01 E .. .oJ~R R,IJOItllS \)!I.
t17 1996
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6/20/2005
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Tax Record
Lust Update: 6120/200511:16:32 k\f ET
Ad Valorem Taxes and Non-Ad Valorem Assessments
ThlJ H,,;fcrr:1atian ccnt3~r1ej" i18rell, do~s nOt con5t~tut~ ~ t,-U€ S'2-8fCh and. she-uld not be: rehed- C~ as sl..n::.h
;1;,ccourd: +: , F\1<} I Tax Type I ~ ax. Year
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1159476 I Real Estate I . 2005 .
Ma:Lli.ng Address
BOU:-JTY F:;:E:HE"~~.E~; L :~~-~: .1- ~c'~
S::~(F:f ~"rf.~ (: t}..>~l. P:.L:" \ 4""t.;.."\: ::U1.7:::
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f f-~
$1 , 785 , 7e:9 00 l $0 00 I $~ , 785 , 799 00
Exemption Detail Y..illage Rat€>
110 EXEJliP7IG'.J~3 l.~){iA l(~ {-B'~~e0
Legal- Descripti.on
Si'fOC1{ I:::'.L?.i-...ND .I''-:A.LONE'::;.' S-:JB r-Sl-55 "LO:.::; , THRU --::..0 SO?, ::n: Ii ?T
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Tax Districts D0taH
Code Oescrj.ption E:x:empt.ion 1\Inount
Amt
'2.003 G2~IE"P,}~:" :s.EVE.N'UE E....t..1ND ;;::i \...~ . (lG $1 , 7 2'~i-~ Sf
G{IOJ'; F&F i...A~'r ::':t1FOR~.::E ..:L~ll.. ~TUD ICIJ:;,L ~- {j.:} 53 9 \ - ~ ~
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ll~ ~" I~.C-~REf: " 1-1: !:)DD: KBYS FI??: i< At..f8 St:;: ~~:. ~.: $2 9% 52
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C(.'G ., t-E ~. L'}C~_L ?Old) P.::.TRO:" l,,]i.j"l EN? ;;:. ~ j C~J c~ 793 07
rl(;;2 S 3(,- FI..: :~]j:, ~~rt .l~~A:'1 n~GE1~-l~~~J:~ iJIS:t S'.....: ;~. ~" $ 5:;;' 1. rj
, I";\';: .
'NQ28 i':',F.E:E:C:H OB2B EASIN" $0 00 55€" 95
;r~C49 :'S~~~-~R~:::7.s.P~C~ES CC;NS7R~7C~.:ON ,PB~1T ~(i Yl .;;;, .. [\ . .58
C:'J(I.S F:'~)R: DA Y2YS }..-~'"JSQ1]IT0 CONTROL ~C . <;.1:.3 ~::l , ~~37 55
..-" r_ ~ ~ 2::;;)6 Z-1C"" ;2CJ 20~~ID V':AS ?3 ~;') ~J \.~ ,. nEe; i"'i.......
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'!'ot.Ol::' Gr-os:.s $ ..,'" -'-1: -..-:! ,....
.+'..... , ':'~-t;.,.. . ~..!..
'"'i oS C0:::nt {S922 22 )
Tot'",:'.. $3.; ~" D OG
, ,. .
If Paid By Amount Due
09/30/2005 $8 , 387 82
D,.)te Paid
06iOS/ZOOS
Transaction
PAYMENT
Receipt
911 777.0001.
Amount Paid
$8,2.56.08
Pr~t.:..~r Veai" T;:n~:::{":;t; Du.c
http://www.monroetaxcollector.com/coIlectmax/tab _collect _ taxmgr3 .asp?PrintView=True&t nm=collect... 6/2012005
, -
MONROE COUNTY PROPERTY ApPRAISER
PROPERTY INFORMATlON FOR:
Alternate Key: 8707975
RE Number: 00125360-000100
Proj}crty Details
OW'\ER oY-RfJ::Qlill
PROptaTI" :\L.\R
BOC~1 Y nSHERl 1::5 U\;ll TED
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PHYSIC ~L LQCA'IIQX
STOCK lSLt\SD KLY
h.J;.GA1.JJ&$J:JlltTIQ,'\
sTOCK ISlA \:D M;\lO),"LY SUB PH 1..55 PT DiSCi-A fhl ED r IRS r /\ \T
L1T\C "'LV S\.;'R ~<) RESOU'rlONNO 33-197.' t.)Rv</(,-234.' :>34~
\)1\ Ii i\.5.2{;:-'~ ."")(J.\1H) ORJ.20t-5-4!560MHl ORJ414-;j.6~650{'tr,..lH}
s.tcllo,>;. Tow'\:SHIP. R ,\..,,\Gf:
J-5... 67...::!5
Ff-lJ! .
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)IlI UGE GRon
nOA
PC CODE
36 - C,\MPS,PRn'iDOCK5.'RECREA T.PARKS
Buildinl2. Details
"BffifR OF IlFn.DIXGS
:SOmER OF CO)DIERCI.-\L BrR:Q.I;'i~s
TOTAL LIYt'iG ARf_.\
YI:..\.R Bnu
Land Details
L\."\D USE CODE
won - COMMERCJAL DRY
Parcel Value History
L~JW"d.
o ,'-4 AC
:WO..f
2003
20m
BrILDL"\"G
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30.i;t)U JU.600
30/)O(! 30,(,(J(j
:lO.600 ]0,60(1
EXEMPTIOXS ('"or I:-<CLl1H)>G T y r
SE.,"'\IORS) L\.;:>.-cWJ..",,-
TAX ROLL YEAR
lJ 30.6(>('
0 30,6lJU
() 3n,6()l)
Parcel Sales History
,\mT.~..Qu l~rCOlm~ ,\RET\],IOJ..!.Y nmJ.Q. J}lJ{ELW.!::-JII~JJC1U2'.n. U\(l'"II1!kJL\JJ;QF S.M.!'.. IFJm:CI:YL\Au.:.n.QJ:~~Q). ~\lD" fl'
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OFFfCUI. RECORDS BooKlPAGE OOc.r.
I)~ 1:1'/('
091991
Ic;l.N\.Hi~i
1
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L:iSJJu"rL';'J
WD
SALE. DATE
1IS5/203;;
WI)
http://www .mcpafl. org/datacenter/search/record. asp
6/20/2005
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Tax Record
Last Update: 6/20/2005 10:41:37 ;\,.\1 ET
Ad Valorem Taxes and Non-Ad Valorem Assessments
The Inf(vl1~-::ltiO-n conta;f'lod 1..'-~reHl doos not constitute ~ t1tl~ search and shouk.l nat be relied on as st,Jd~_
,~
Account it (AK) I Tax lype T T?~x .''1: C:l! r
, B707975 I Rea~ Est.a.te I 2DM
Mailing Address
BO:;';;.;JTY FISB,EF.:SS L I}.-::i TE[;
::-~O(t ri.t~C[;(tn;"L[l A ~/Er:r:.1~
K::."t'f ;':351. !~. '..J 33:J,.j.~t Folio NUll'.ber
r.; a, r. .. GOf:D
...~ '-- ",.~ ..-" ,
,t\SZ{':S$t~Cl \fa~ue I Ex(~mpt t.\motlot I Ta ')l~ i,lI; 11=2 \l a~ ue
$30, 6DO 00 I $0,00 I $30 ,600.00
E:y.emption Detail 1-l.illa~ Rate
110 E:Y'J?J~lP7:01;J3 lfJ(I;'~ 10 ~:,S OeG
Legal Descr:tp ti.or,
STOCK !.S}~;'ND l>1A;~ONf~Y SUB 2Bl-55 PT ::;; SCIJ....: i..~1ESF:PSlt h\7E I~.:!~~.~
yp LY SQ~ 3{' :<.ESQLU-r ION NO .33~1'n3 OR9S-6-2 31~3~l2:..i44 0R1125-
..-~ ..... -:J: -:) l 35 ( JNR) CR12C 1:\- 5,1/ Sf, (,?HH) O?t1414 -~ 64./65Q/C (,J~1B )
",,-'~~~I
Tax Districts Detail
Code Description Exemption Amount
A.'t'lt
C\'}OB G2~~ERAL P.EVBNlTE ?!JpjD ,,~ , ,)G $2S. 4?
" "
COO4 F&! ~LAI::} EN FO?J'::E \JAI:' ,..1DLYiC!f'...I, $t} ~ OC; $€1 :,. ..-.~
C(J05 P3AlfTB C:LI!.:rIC ~e..QC $0 .,,0
S(:(~l SCHOOl: S~ATE LA!~) ,'7. ~"', O~~ ~~ 73 ..29
VV
S-oO:1 SCHOOL ::"Oc.JlL BOARD sr (~(i ~,~. "; \~.3
"
C(r(:"1 GE}IEAAL FJRPOSE 1'-1STD SO ~)Ci ::..1 ~l..
,,:-'''r.
;;031 L(~HER << HI pr:LE KEYS F1RE & ;'1-l1E SO ., ~ SSl -~, ,~
:"1 ~~ ~
~~J(t 9 1:': r LOCAL ROAD OF A'l'RCL ~~~I,~. :ENE' S.G . :::0 $13 5~~
v.J(l25 SC FL: 'nIl-.. ~EE. ~JJU;;rAGEl'-~ENl DIST :;: (j - Ci} $3. &9
t1(i2E; OK:f.~ECHOB3~ BASIN ~.'-i' DO (::(. :'2
--' .,. ~-
t;.]C~g E;'\:ERGLADES CONSTRUCTION PRJ'T $D G0 $3 J:'6
CODE: F:";:)RIDP~ :hEYS j~osQn: TC~ .,::ON7RO"L- ^.' -3":: 518 64_
~;",:
Tot a1 GrosS'- 5325_ 81
Discount ~ -t..~.;" -:'.- ...'t-"f.
\. '-E';'._J v,, t
Toto.l $313. "iq.
If Paid By Al110u nt Due
$0 .00
Date Paid
n/12!2004
Transaction
PAYMEN'l'
Receipt
ZSOOHO.OOO1.
Amount Paid
$313.74
Prior Year Taxes Due
NO :)EJ~=llQr.J::;S~T T.;;~:2S
http://www.monroetaxcollector.com/collectmaxltab 3011ect _ taxmgr3 .asp?PrintView=True&t_ nm""'collect." 6/20/2005
Qualifications of Jeff Nienaber
General Education
Attended University of Minnesota
Attended Northern Arizona University
1981
1985,1986
Professional Education
Courses University of Minnesota and international Association of Assessing
Officers and Appraisal Institute
IAA02
lAA04
IAAO 301
MN Course A
MN Course B
MN. Course H
USPAP
U ofM
U afM
Appraisal Institute
Lee and Grant
Lee and Grant
Bert Rodgers
Bert Rodgers
income Approach to Valuation
Assessment Administration
Mass Appraisal of Residential Property
Appraisal Standards, Laws, History
Residential Appraisal
Mass Appraisal of Residential Property
Uniform Standards of Appraisal Practice
Apartment Appraisals
Demonstrative Narrative Report Writing
Highest and Best Use
From Appraiser to Underwriter
USP AP 2002
Advanced Sates Comparison
USPAP 2004
Professional Designations and Licenses
AMA Accredited Minnesota Appraiser/Assessor (Requires 5 yrs Experience +
Commercial Demonstrative Narrative)
Certified Minnesota Appraiser/ Assessor
Florida State Certified General Appraiser
CMA
RZ002475
Real Estate and Appraisal Experience
Appraiser Assistant City of Blaine MN
Sales Associate Edina Realty, Woodbury MN
Residential Appraiser Cass County MN
Residential Appraiser City of Fridley MN
Appraiser I Anoka County MN
Senior Appraiser Anoka County MN
Chief Appraiser City of Fridley MN
Real Estate Sales Olde Island Realty K W
Commercial Appraiser Appraisers 0 f the Keys
Commercial Appraiser AppraisalFirst, inc.
Commercial Appraiser ,Tozzer, Oakvik and Associates
Commercial Appraisal Mgr. Greater Caribbean Appraisal
1979
1982-1983
]986-1987
]987
1988
1990
]992
]994
1994
1998-2000
2000-2003
2000- Present
Other
Qualified as an Expert Commercial Appraisal Witness by the Minnesota Tax Court, District
COUlt. Qualified as an Expert Commercial Appraisal Witness by the Arizona District Court 2004.