Item F4LAND AUTHORITY GOVERNING BOARD
AGENDA ITEM SUMMARY
Meeting Date:Division:
June 17, 2009 Land Authority
Bulk Item:Contact / Phone #:
Yes No X Mark Rosch / 295-5180
__________________________________________________________________________________
Agenda Item Wording:
Approval to purchase Block 54, Lots 16 and 17, Maloney subdivision (5530
Third Avenue) on Stock Island as an affordable housing site in partnership with Habitat for Humanity of
Key West and Lower Florida Keys, Inc.
__________________________________________________________________________________
Item Background:
This item is the first step in the proposed purchase and leaseback of a site
developed with unrestricted affordable housing stock. The subject property is a 12-unit apartment
complex consisting of three buildings built in 1977 at 5530 Third Avenue on the oceanside of Stock
Island near mile marker 5. The property is a 0.34 acre site designated Tier 3, zoned Mixed Use, and
designated AICUZ Noise Zone 1 (the least noisy of the Navy’s three AICUZ zones). Each unit has a
two bedroom, one bathroom design of approximately 700 square feet. The buildings are considered
legal non-conforming development with respect to the zoning density and flood elevation. Habitat for
Humanity purchased the property for $1,400,000 earlier this year and plans a total of $506,400 in
renovations. Habitat for Humanity proposes to manage the property as affordable rental housing. The
proposed contract anticipates the following steps: 1) the Land Authority purchasing the site for
$821,850; 2) the Land Authority imposing deed restrictions and transferring title to the BOCC; 3) the
BOCC leasing the property back to Habitat for Humanity for management and renovation; and 4)
Habitat for Humanity obtaining a mortgage loan encumbering the leasehold in an amount not to exceed
$870,000. Approval of this agenda item will direct staff to proceed toward step 1. The estimated
closing costs for this transaction are listed in the agenda packet spreadsheet.
__________________________________________________________________________________
Advisory Committee Action:
On April 28, 2009 the Committee voted 4/0 to approve this acquisition.
__________________________________________________________________________________
Previous Governing Board Action:
On April 15, 2009 the Board approved the 2009 Acquisition List,
which identifies existing unrestricted affordable housing stock as a category of potential acquisitions.
__________________________________________________________________________________
Contract/Agreement Changes:
In addition to the standard contingencies, Paragraph 15 specifies that
the closing is contingent upon the BOCC accepting title, the BOCC leasing the property to Habitat for
Humanity, Habitat for Humanity obtaining a mortgage on the leasehold not to exceed $870,000, and
simultaneous closing of the transactions.
__________________________________________________________________________________
Staff Recommendation:
Approval.
__________________________________________________________________________________
Total Cost:Indirect Cost:Budgeted:
$ 836,695.50 $________ Yes X No.
Cost to Land Authority:Source of Funds:
$836,695.50 Land Authority
(Tourist Impact Tax and State Park Surcharge)
Approved By:
Attorney X County Land Steward .
Documentation:
Included: X To Follow: Not Required: .
Disposition:
Agenda Item ____
PURCHASE CONTRACTS
06/17/09
PurchaseESA &TitleAttorneyRecordingTotal
PropertyPriceSurveyInsuranceFeeFeeCosts
Maloney Subdivision$821,850.00$10,000.00$4,310.00$500.00$35.50$836,695.50
Block 54, Lots 16 & 17
Seller: Habitat for Humanity
of Key West & Lower
Florida Keys, Inc.
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AGREEMENT FOR THE PURCHASE OF LANDS
THIS AGREEMENT is made and entered into this ______ day of __________________, 2009, is by
and between
Habitat for Humanity of Key West and Lower Florida Keys, Inc.
hereinafter style the Seller(s), for themselves, their heirs, executors, administrators, successors and
assigns, and the MONROE COUNTY COMPREHENSIVE PLAN LAND AUTHORITY (hereinafter,
"Land Authority") acting by and through the Executive Director of the LAND AUTHORITY.
WITNESSETH:
1. In consideration of Ten Dollars ($10.00) in hand, paid by the LAND AUTHORITY, the receipt of
which is hereby acknowledged, the Seller(s) agree to sell to the LAND AUTHORITY certain lands
$821,850.00
upon the terms and conditions hereinafter set forth, and for the price of for all of the
lands and other interests, which lands shall include all tenements, hereditaments, together with all
water and other rights, easements, appurtenances, and any and all of the Seller’s rights in or
arising by reason of ownership thereunto belonging, owned by them, situate and lying in the
County of Monroe, State of Florida, more particularly described as follows; to-wit:
Block 54, Lots 16 and 17, McDonald’s Plat (PB 1-55)
RE# 126970-000000
2. The Seller(s) agree that they have full right, power and authority to convey, and that they will
convey to the LAND AUTHORITY the fee simple title together with legal and practical access
thereto clear, free and unencumbered, except subject to the following easements or reservations:
Existing easements for canals, ditches, flumes, pipelines, railroads, public highways and roads,
telephone, telegraph, power transmission lines and public utilities.
The LAND AUTHORITY, at the LAND AUTHORITY’S expense, within the time allowed to deliver
evidence of title and to examine same, may have the real property surveyed and certified by a
registered Florida surveyor. If the survey discloses encroachments on the real property or that
improvements located thereon encroach on setback lines, easements, lands of others, or violate
any restrictions, contract covenants, or applicable governmental regulations, the same shall
constitute a title defect.
Seller(s) shall convey a marketable title subject only to the aforementioned liens, encumbrances,
exceptions or qualification set forth herein. Marketable title shall be determined according to
applicable title standards adopted by authority of the Florida Bar and in accordance with law. The
LAND AUTHORITY shall have sixty (60) days from receipt of an acceptable environmental site
assessment in which to examine title. If title is found defective, the LAND AUTHORITY shall,
within this specified time period, notify Seller(s) in writing specifying defect(s). If the defect(s)
render title unmarketable the Seller(s) will have one hundred twenty (120) days from receipt of
notice within which to remove the defect(s), failing which the LAND AUTHORITY shall have the
option of either accepting the title as it then is or rescinding the contract herein; thereupon the
LAND AUTHORITY and the Seller(s) shall release one another of all further obligations under this
Agreement. The Seller(s) will, if title is found unmarketable, use diligent effort to correct defect(s)
in title within the time provided therefore, including the bringing of necessary suits.
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3. The Seller(s) further agree not to do, or suffer others to do, any act by which the value or title to
said lands may be diminished or encumbered. It is further agreed that any loss or damage
occurring prior to the vesting of satisfactory title in the LAND AUTHORITY by reasons of the
unauthorized cutting or removal of products therefrom, or because of fire, shall be borne by the
Seller(s); and that, in the event any such loss or damage occurs, the LAND AUTHORITY may
refuse, without liability, to accept conveyance of said lands, or it may elect to accept conveyance
upon an equitable adjustment of the purchase price.
4. The Seller(s) further agree that during the period covered by this instrument officers and
accredited agents of the LAND AUTHORITY shall have at all proper times the unrestricted right
and privilege to enter upon said lands for all proper and lawful purposes, including examination of
said lands and the resources upon them. The Seller(s) hereby waive their rights to any and all
claims against the LAND AUTHORITY or Monroe County associated with, or arising from
ownership of, said lands and this waiver shall survive closing.
5. The Seller(s) will execute and deliver upon demand of the proper officials and agents of the LAND
AUTHORITY a good and sufficient deed of warranty conveying to the LAND AUTHORITY a safe
title to the said lands of such character as to be satisfactory to the legal counsel of the LAND
AUTHORITY and said deed shall provide that the use, occupation and operation of the rights-of-
way, easements and reservations retained therein, shall be subordinate to and subject to such
rules and regulations as may be prescribed by the LAND AUTHORITY governing the use,
occupation, protection and administration of lands.
6. In consideration whereof the LAND AUTHORITY agrees that it will purchase all of said lands and
$821,850.00
other interests at the price of . The LAND AUTHORITY further agrees that, after the
preparation, execution, delivery and recordation of the deed, and after the legal counsel of the
LAND AUTHORITY shall have approved the title thus vested in the LAND AUTHORITY, it will
cause to be paid to the Seller(s) the purchase price by a check drawn on the account of the LAND
AUTHORITY. The LAND AUTHORITY shall pay the following expenses associated with the
conveyance of the property: deed recording fees, settlement fees, abstract fees, title examination
fees, the Buyer's attorney's fees, and title insurance, as well as the prorata share of prepaid real
property taxes allocable to the period subsequent to the vesting of title in the LAND AUTHORITY,
or the effective date of possession of such real property by the same, whichever is earlier. The
Seller(s) shall pay the expenses of documentary stamps to be affixed to the deed. Full
possession of the premises shall pass to the LAND AUTHORITY as of the date payment is made
to the Seller(s) subject only to the reservations stated in Section 2 above.
7. It is mutually agreed that an abstract, title insurance policy or other evidence of title to the property
herein contracted to be sold, satisfactory to the legal counsel of the LAND AUTHORITY will be
obtained by the LAND AUTHORITY at its expense. The Seller(s) expressly agree herein to
furnish to the LAND AUTHORITY any documents in Seller(s)'s possession establishing evidence
of title including, but not limited to, abstracts, title commitments, title policies and opinions of title.
8. It is mutually understood and agreed that the LAND AUTHORITY may assign this contract.
9. It shall be the obligation of the Seller(s) to pay all taxes and assessments outstanding as liens at
the date title vests of record in the LAND AUTHORITY, whether or not such taxes and
assessments are then due and payable.
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10. It is mutually understood and agreed that notice of acceptance of this agreement shall be given to
the Seller(s) by mail addressed to the Seller(s) at the following address:
30320 Overseas Highway
Big Pine Key, FL 33043
and shall be effective upon date of mailing and shall be binding upon all of the Seller(s) without
sending a separate notice to each, except as such obligation may be affected by the provisions of
paragraph 6 hereof.
11.The property shall be delivered at closing free of any tenant or occupancy whatsoever, unless the
tenant is income qualified for affordable housing and otherwise approved by the LAND
AUTHORITY.
12.The effective date of this agreement shall be that date when the last one of the Seller(s) and the
LAND AUTHORITY has signed this agreement.
13.The LAND AUTHORITY shall have sixty (60) days from the effective date of this agreement in
which to conduct an environmental site assessment to determine the existence and extent, if any,
of any hazardous materials on the property. For the purposes of this agreement, "hazardous
materials" shall mean any hazardous or toxic substance, material or waste of any kind or any
other substance which is regulated by any environmental law. If the environmental site
assessment identifies the presence of hazardous materials on the property, the LAND
AUTHORITY shall, within this specified time period, notify Seller(s) in writing of the findings. The
Seller(s) will then have one hundred twenty (120) days from receipt of notice within which to
pursue, at Seller(s)' sole cost and expense, any assessment, clean-up, and monitoring of the
Property necessary to bring the Property into full compliance with any and all applicable federal,
state or local laws, failing which the LAND AUTHORITY shall have the option of either accepting
the property as it then is or rescinding the contract herein; thereupon the LAND AUTHORITY and
the Seller(s) shall release one another of all further obligations under this Agreement.
June 2, 2009
14. If the Seller(s) wish to proceed with this transaction, the Seller(s) have until to sign
and return this contract to the LAND AUTHORITY.
15. The LAND AUTHORITY intends to purchase the subject property as an affordable housing site in
partnership with the Monroe County Board of County Commissioners (hereinafter “BOCC”) and
the Seller(s). Notwithstanding any provision of this Agreement to the contrary, the closing of this
transaction is subject to each of the following contingencies.
a) Approval by the Land Authority’s Advisory Committee and Governing Board.
b) The BOCC agreeing to accept title to the property from the LAND AUTHORITY with said title
encumbered with affordable housing deed restrictions.
c) The BOCC and the Seller(s) entering into a mutually acceptable lease agreement for the
subject property.
d) The Seller(s) obtaining approval to encumber the leasehold referred to above with a mortgage
in an amount not to exceed $870,000.
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e) The simultaneous closing of the following: the Seller(s)’ conveyance of the subject property to
the LAND AUTHORITY, the LAND AUTHORITY’s conveyance of the subject property to the
BOCC, and the BOCC’s lease of the subject property to the Seller(s).
In the event these contingencies are not satisfied and the transaction is not closed on or before
August 31, 2009, either party shall have the right to terminate this Agreement by providing written
notice, at which point both parties shall be released of all further obligations under this Agreement.
IN WITNESS WHEREOF, the Seller(s) have hereunto signed their names and affixed their respective
seals on the day first above written and therefore the Seller(s) for and in consideration of the Ten
Dollars ($10.00) hereinabove acknowledge as received, have and do hereby grant unto the LAND
AUTHORITY or its authorized representative, or any other office or agent of the LAND AUTHORITY
authorized to purchase said lands, the option and right to enter into this Agreement for Purchase
within sixty (60) days from the execution thereof by the Seller(s), and to purchase said lands as herein
provided.
Habitat for Humanity of Key West and Lower Florida Keys, Inc.
Seller:
Robert Calhoun, Executive Director
By:
________________________ ___________ __________________ ________________
Signature Date Federal Tax ID Number Phone Number
The MONROE COUNTY COMPREHENSIVE PLAN LAND AUTHORITY, acting by and through its
EXECUTIVE DIRECTOR in accordance with Resolution 09-2004, has executed this agreement on
behalf of the MONROE COUNTY COMPREHENSIVE PLAN LAND AUTHORITY this ______ day of
______________________, 2009.
MONROE COUNTY COMPREHENSIVE
PLAN LAND AUTHORITY
(Seal)
________________________________
Mark J. Rosch, Executive Director
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