Item F6 F6
BOARD OF COUNTY COMMISSIONERS
COUNTY of MONROE Mayor Craig Cates,District 1
The Florida Keys Mayor Pro Tern Holly Merrill Raschein,District 5
Michelle Lincoln,District 2
James K.Scholl,District 3
m' David Rice,District 4
Board of County Commissioners Meeting
September 20, 2023
Agenda Item Number: F6
2023-1041
BULK ITEM: Yes DEPARTMENT: County Land Acquisition And Land
Management
TIME APPROXIMATE: STAFF CONTACT: Cynthia Guerra
AGENDA ITEM WORDING: Approval of Amendment and Extension of Board-approved purchase
agreement of property, funded by the Community Development Block Grant-Disaster Recovery
(CDBG-DR)Voluntary Home Buyout Program (VHBP) in the amount of$240,000.00.
ITEM BACKGROUND:
Consistent with State Statute 119.071(5)(f)(1.)(b), staff has omitted/redacted the homeowner's names,
address and other identifying information as adopted during the 2020 legislative session. This statute
provides an exemption from public records requirements for personal identifying information for the
purpose of disaster recovery assistance. Properties proposed for acquisition by the Voluntary Home
Buyout Program were affected by Hurricane Irma in 2017.
The Department of Economic Opportunity (DEO) awarded Monroe County $15 million in CDBG-DR
funding, via Subrecipient Agreement I0092, to acquire Irma-damaged properties in low to moderate
income areas or from households with low to moderate income. Using those funds, the County is
acquiring property that was damaged by Hurricane Irma under the Voluntary Home Buyout Program
(VHBP). VHBP acquisitions are being made to reduce the impact of future disasters by acquiring
properties that are in high-risk flood.
Under the VHBP, an Agreement for Purchase (Agreement)between the County as buyer and the seller
was approved by the Board on February 15, 2023, with a deadline to close the transaction within 90
days, or by May 16, 2023, as specified in Paragraph 7 of the Agreement. Paragraph 3.3 of the
Agreement states that the seller acknowledges that the Agreement does not constitute a guarantee to the
commitment of funds or site approval and that such commitment of funds or approval is subject to
conditions, including DEO approval. DEO originally approved the purchase on December 19, 2022,
prior to the BOCC approval. However, a delay in processing of this Agreement arose during a DEO
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monitoring event that took place in January and February 2023, such that the transaction was not closed
within 90 days per Paragraph 7 of the Agreement. At this time, the County and the seller wish to extend
the Agreement for an additional 180 days in order to close the transaction no later than November 14,
2023.
Additionally, during the due diligence phase of the transaction, the county discovered defects in the
legal description. Per the Title Commitment and Survey, the legal description is being updated in this
Amendment to the Purchase Agreement.
This item is for approval to amend and extend the Agreement by making the following changes:
A. Paragraph 1 Legal Description is stricken and replaced with the following:
[Redacted pursuant to Fla. Stat. 119.071.]
B. Paragraph 3.1 is stricken and replaced with the following:
Paragraph 3.1 — Contingencies. Seller(s) shall vacate the property within 270 days from the date of this
contract or by the vacancy inspection date, whichever is earlier. If Seller(s) does not vacate the
property, the Buyer shall have the right to void this contract, unless an extension has been agreed upon,
in writing, between Seller(s) and the Buyer. The Property shall be delivered by Seller(s) at
settlement/closing date free of any tenant(s) or occupant(s) and future tenancies.
C. Paragraph 7 is stricken and replaced with the following:
Paragraph 7 - Conveyance Date of Closing/Possession. Conveyance will be made subject to all
easements and covenants of record(provided they do not make the title unmarketable or prohibits
Buyer from its desired use of the property) and to all governmental statutes, ordinances, rules, and
regulations. The Seller(s)'s possession establishing evidence of title including, but not limited to,
abstracts, title commitments, title policies and opinions of title. Seller(s) agrees to convey by
marketable title with a general warranty deed, free of encumbrances. The deed will be prepared by the
Closing Attorney in the name of Monroe County, FL, or as otherwise stipulated by Buyer, and delivered
to stipulated place of closing. Closing Attorney shall be authorized to disburse the sales proceeds at the
time of settlement. This transaction will be closed on or before 270 days of the signing of this contract
unless an extension has been agreed upon between Seller(s) and the Buyer.
The remainder of the terms and conditions of the Agreement remain unchanged by this Amendment,
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and continue in full force and effect.
The restrictive covenant has been revised to include the corrected legal description and is attached for
County signatures. The covenant will be recorded with the deed when the transaction is closed.
PREVIOUS RELEVANT BOCC ACTION:
On July 22, 2019, the BOCC approved the CDBG-DR VHBP grant application to DEO (Agenda Item
B.1).
On May 20, 2020, the BOCC approved Resolution 150-2020 allowing the county to execute the CDBG-
DR VHBP Subrecipient Agreement with DEO (Agenda Item D.2).
On February 17, 2021, the BOCC approved Resolution 56-2021 updating the local program
prioritization criteria for the Voluntary Home Buyout Program (Agenda Item D.5).
On February 15, 2023, the BOCC approved Resolution 083-2023 which included the approval of the
subject Purchase Agreement, Restrictive Covenant and Moving the Market Rate ROGO to the
Administrative Relief Pool(Agenda Item F.2).
CONTRACT/AGREEMENT CHANGES:
A. Paragraph 1 Legal Description is stricken and replaced with the following:
[Redacted pursuant to Fla. Stat. 119.071.]
B. Paragraph 3.1 is stricken and replaced with the following:
Paragraph 3.1 — Contingencies. Seller(s) shall vacate the property within 270 days from the date of this
contract or by the vacancy inspection date, whichever is earlier. If Seller(s) does not vacate the
property, the Buyer shall have the right to void this contract, unless an extension has been agreed upon,
in writing, between Seller(s) and the Buyer. The Property shall be delivered by Seller(s) at
settlement/closing date free of any tenant(s) or occupant(s) and future tenancies.
C. Paragraph 7 is stricken and replaced with the following:
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Paragraph 7 - Conveyance Date of Closing/Possession. Conveyance will be made subject to all
easements and covenants of record(provided they do not make the title unmarketable or prohibits
Buyer from its desired use of the property) and to all governmental statutes, ordinances, rules, and
regulations. The Seller(s)'s possession establishing evidence of title including, but not limited to,
abstracts, title commitments, title policies and opinions of title. Seller(s) agrees to convey by
marketable title with a general warranty deed, free of encumbrances. The deed will be prepared by the
Closing Attorney in the name of Monroe County, FL, or as otherwise stipulated by Buyer, and delivered
to stipulated place of closing. Closing Attorney shall be authorized to disburse the sales proceeds at the
time of settlement. This transaction will be closed on or before 270 days of the signing of this contract
unless an extension has been agreed upon between Seller(s) and the Buyer.
The remainder of the terms and conditions of the Agreement remain unchanged by this Amendment,
and continue in full force and effect.
STAFF RECOMMENDATION: Approval
DOCUMENTATION:
00060 Agreement for Purchase - fully executed_Redacted.pdf
00060 Amendment-Extension to Purchase Agreement_owner-CAO signed_Redacted.pdf
00060 Restrictive VHBP Covenant_CAO signed_Redacted.pdf
FINANCIAL IMPACT:
Effective Date: Effective upon execution by Monroe County and closing of real estate transaction
Expiration Date: NA
Total Dollar Value of Purchase Agreement: $240,000 plus closing costs
Total Cost to County: $0
Current Year Portion: NA
Budgeted: No
Source of Funds: CDBG-DR Voluntary Home Buyout Program
CPI: NA
Indirect Costs: NA
Estimated Ongoing Costs Not Included in above dollar amounts: NA
Revenue Producing:NA If yes, amount:
Grant: $ 15 Million CDBG-DR Voluntary Home Buyout Program Grant
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County Match: $ 0
Insurance Required: NA
Additional Details: NA
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MON OE CouNTY,FLoRn)A
e VOLUNTARY HOME BUYOUT PROGRAM
AGREEMENT FOR PURCHASE
This AGREEMENT made this day of 202a, by and between
Monroe County, a political subdivision of the State of Florida, whose post office address
is 1100 Simonton Street, Suite 205, Key West, FL 33040 (hereinafter referred to as "Buyer")
and (hereinafter referred to as"Seller(s)'):
1. OFFER AND DESCRIPTION. Buyer agrees to buy, and Seller(s)agrees to sell all of a certain
piece, parcel or lot of land, and for all of the lands and other interests, buildings, structures
and improvements thereon, which lands shall include all tenements, hereditaments, together
with fixtures and Personal Property (as described below), 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 Monroe County, State
of Florida, more particularly described as follows (which will be collectively referred to as
"Property") ; to wit:
LEGAL_ DESCRIPTION:
RE NUMBER:
Seller(s) must relinquish all development/building rights to the property including but not
limited to any and all allocations legally existing or granted underthe MONROE COUNTY's
RATE OF GROWTH ORDINANCE (ROGO). The Seller(s) agree that they have full right,
power, and authority to convey, and that they will convey to the Buyer the fee simple title
together with legal and practical access thereto dear, free and unencumbered, subject to the
following easements or reservations for: canals, ditches, flumes, pipelines, railroads, public
highways and roads, telephone, telegraph, power transmission lines and public utilities.
2. CONSIDERATION. The purchase price for the Property and improvements above described
is $240,000.00 to be paid at dosing, minus any outstanding hens or assessments which are
due and payable at the date of settlement_
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MmROE Couw ,FLORIDA
' II f rr� vq
VOLUNTARY HOME BUYOUT PROGRAM
3. CONTINGENCIES.
3.1 Seller(s) shall vacate the property within 90 days from the date of this contract or by
the vacancy inspection date, whichever is earlier. If Seller(s) does not vacate the
property, the Buyer shall have the right to void this contract, unless an extension has
been agreed upon, in writing, between Seller(s)and the Buyer. The Property shall be
delivered by Seller(s) at settlement/closing date free of any tenant(s) or occupant(s)
and future tenancies.
3.2 Buyer shall have access to Property and the right to perform any and all inspections
on the Property up until day of closing/seftlement date. If Buyer's inspections are not
satisfactory to the Buyer, the Buyer shall have the right to void this contract. Buyer
shall also have the right to void this contract if the Buyer's intended use of the property
is a violation of any restrictive covenants on the property that cannot be modified.
3.3 Buyer and Seller(s) acknowledge that this Property is being purchased with U.S.
Department of Housing and Urban Development(HUD)funds that are being allocated
through Florida's Department of Economic Opportunity (DEO) in accordance with the
Voluntary Home Buyout Program. The Seller(s) acknowledges that this contract does
not constitute a guarantee to the commitment of funds or site approval, and that such
commitment of funds or approval is subject to satisfactory completion of an
environmental review, DEO approval of the purchase, and Monroe County, FL Board
of County Commissioner's approval of the purchase, and_ The Buyer may terminate
this Agreement at any time if any of the above Contingencies are not met.
3.4 The Seller(s) shall resolve any open code enforcement proceedings prior to closing.
4. TRANSACTION COSTS. Buyer's Transaction Costs include the appraisal fee, Buyer's
attorney fees, deed preparation, title search charges, survey (if required) and title insurance,
owner's policy, inspections, municipal lien search, and all documentary stamp taxes and
recording fees, if applicable. Seller(s)'s Transaction Costs include deed preparation and payoff
fees. Buyer shall be responsible for Buyer's transaction costs and Seller(s)'s transaction costs.
Seller(s) shall be responsible for any costs necessary to deliver a marketable title (including
recording of loan and/or lien satisfactions or other fees needed to cure title). if Seller(s) is
represented by a realtor or attorney, the Seller(s) is responsible for all Seller(s)' realtor and
attorney fees. Seller(s) shall furnish to Buyer at Closing an affidavit attesting to the absence of
any financing statement, claims of lien, or potential lienors known to Seller(s).
5. .READ ESTATE TAXES. Buyer shall be responsible for the pro-rats share of prepaid real
property taxes, including any special taxes, due at the date of settlement/closing. It shall be
the obligation of the Seller(s) to pay all taxes and assessments outstanding as liens at the
date of settlement/closing, whether or not such taxes and assessments are then due and
payable.
6. ADJUST TS NONE.
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MONROE COUNTY,FLomm
VOLUNTARY How BUYOUT PROGRAM
J
7, CONVEYANCE DATE OF CLOSING/POSSESSION. Conveyance will be made subject to all
easements and covenants of record(provided they do not make the title unmarketable or
prohibits Buyer from its desired use of the property) and to all governmental statutes,
ordinances, rules, and regulations. The Seller(s) expressly agrees herein to furnish to the
Buyer any documents in Seller(sys possession establishing evidence of title including, but
not limited to, abstracts, title commitments,title policies and opinions of title.Seller(s)agrees
to convey by marketable title with a general warranty deed, free of encumbrances. The deed
will be prepared by the Closing Attorney in the name of Monroe County, FL;or as otherwise
stipulated by Buyer, and delivered to stipulated place of closing. Closing Attorney shall be
authorized to disburse the sales proceeds at the time of settlement_ This transaction will be
closed on or before 90 days of the signing of this contract unless an extension has been agreed
upon between Sellers) and the Buyer.
8. FIXTUF ES AWPRSQI AL PROr ERTY. At the time of dosing/settlement date, this sale
includes all property,fixtures, equipment and improvements of any kind left on the premises.
Personal property, such as fixtures, can be removed from the property prior to Vacancy
Inspection so long as this removal does not cause health or safety concerns on the premises.
9. mwEXPIRATION OF OFFER_ This offer from Buyer will be withdrawn at 5 o'clock PM.
(Eastern Time) on Tuesday, January 10, 2023, unless accepted or countered by Seller(s)
in written form prior to such tine_ If Seller(s)requires an extension to the time and date stated
above to accept or counteroffer the offer presented by the Buyer, a written request with
reasoning needs to be submitted to and approved by the Buyer prior to the expiration date.
10.TIME„I OF LATHE ESSENCE. Time is of the essence with respect to all provisions of this
contract that stipulate a specific period of time for performance. Failure of Seller(s) to
complete any provision of this contract within the stipulated period of time for completion of
the provision will constitute, where applicable, a default of this contract.
11. URVIVALm„If any provision herein contained which by its nature and effect is required to be
observed, kept or performed after dosing, it will survive the closing and remain binding upon
and for the Parties hereto until fully observed Kept or performed.
12. ENTI A REEMENT. This agreement, the Voluntary Transaction Agreement, the
Certificate of Removal of Personal Property and Abandonment, the Subrogation Agreement,
Right of Entry, Hold Harmless and Indemnification Agreement, and Certificate of Vacancy
Inspection supersedes any and ail understandings and agreement between the parties and
constitutes the sole and entire agreement between the parties. No oral agreement or
representations prior hereto shall be included herein unless set forth in writing.Any change to
this contract shall be in writing.This agreement shall be constructed in accordance with the laws
of the State of Florida. It is understood by the parties that this agreement is subject to Chapter
119, Florida Statute regarding Public Records Law.
13. EFFECTIVE DATE.The effective date of this Agreement shall be that date when the last one of
the Seller(s) and the Buyer has signed this Agreement.
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MoNRoE COUNTY,ftoRIDA
VOLUNTARY HOME BUYOUT PROGRAM
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
hereinabove acknowledge as received, have and do hereby grant unto the Buyer or its authorized
representative, or any other office or agent of the Buyer authorized to purchase said lands, the
option and right to enter into this Agreement and to purchase said lands as herein provided.
Warning:Any person who knowingly makes a false claim or statement to HUD may be
subject to civil or criminal penalties under 18 U.S.C. 287, 1001 and 31 U.S.C. 3729.
ASeller/
Sign
Date Phone Number
Buyer/COUNTY: MONROE COUNTY, FLORIDA
ATTEST_ Kevin Madok, CPA, Clerk
y ' I As Dep ty CI � � .erk Craig Cate, May r
Y pr lh
f 'w ,fit Posy m`,
ry ry MONROE COUNTY ATTORNEY
P.l
APPROVED AS.TO FORM
KELLY DUGAN
ASSISTANT COUNTY ATTORNEY
Date:
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AMENDMENT ONE TO AGREEMENT FOR PURCHASE
BETWEEN MONROE COUNTY ("BUYER") AND
("SELLER")
This Amendment ("AmendmentOne") is made and entered into this 201h day of September, 2023
y and between MONROE COUNTY, a political subdivision of the State of Florida, whose post
office address is I 100 Simonton Street, Suite 205, Key West, Florida, 33 (hereinafter referred
to as "Buyer") and-(herein referred to as "Seller");
the Agreement for Purchase ("AGREEMENT") between Buyer and Seller
was entered into the 15`h day of February 23 with deadline to close the transaction within 90
days, or by May 1 , 223; and,
Paragraph 3.3 of the Agreement states that the Seller(s)acknowledge that the
Agreement does not constitute a guarantee to the commitment of funds or site approval and that
such commitment of funds or approval is subject to conditions, including DEO approval; and,
DEO originally approved the purchase on December 1 , 2022, prior to the
Board of County Commissioners approval of the Agreement on February 15, 23; and,
WHEREAS, a delay in processing of this Agreement arose during a DEO monitoring
event that took place in January and February 2023, such that the Agreement was not closed within
0 days per Paragraph 7 of the Agreement; and,
the Buyer and Seller(s) wish to extend the Agreement for an additional 180
days; and,
during the due diligence phase of the transaction, the County discovered
defects in the legal description that are being corrected through this amendment of the Agreement.
NOW THEREFORE, in consideration of the mutual promises contained herein„ the
AGREEMENT is amended as follows:
Section 1, Recitals and Legislative Intent. The Foregoing recitals, findings of fact, and
statements of legislative intent are true and correct and are hereby incorporated as if fully stated
herein.
Section 2. The AGREEMENT is amended as follows:
Paragraph 1 Legal Description is stricken and replaced with the following:
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Paragraph 3.1 is stricken and replaced with the following:
ara ra 3.I .....- Contingencies. Seller(s) shall vacate the property within 270 days from
the date of this contract or by the vacancy inspection date,whichever is earlier. If Seller(s)
does not vacate the property, the Buyer shall have the right to void this contract, unless an
extension has been agreed upon, in writing, between Seller(s) and the Buyer. The Property
shall be delivered bySeller(s)at settlement/closing date free of any tenant(s)or occupant(s)
and future tenancies.
Paragraph 7 is stricken and replaced with the following:
Paragraph 7 ® Conveyance Date of Closing/Possession. Conveyance will be made subject
to all easements and covenants of record(provided they do not make the title unmarketable
or prohibits Buyer from its desired use of theproperty) and to all governmental statutes,
ordinances, rules,and regulations. The eller(s)'s possession establishing evidence of title
including, but not limited to, abstracts, title commitments, title policies and opinions o
title. Seller(s) agrees to convey by marketable title with a general warranty deed, free of
encumbrances. The deed will be prepared by the Closing Attorney in the name of Monroe
County, FL, or as otherwise stipulated by Buyer, and delivered to stipulated place o
closing. Closing Attorney shall be authorized to disburse the sales proceeds at the time of
settlement. This transaction will be closed on or before 270 days of the signing of this
contract unless an extension has been agreed upon between Seller(s) and the Buyer.
The remainder of the terms and conditions of the AGREEMENT remain unchanged by this
Amendment, and continue in full force and effect.
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IN WITNESS WHEREOF, each party caused this Amendment to the Agreement to be
executed by its duly authorized representative.
Seller/
Date Phone Number
Buyer/COUNTY: IVIONROE COUNTY, FLORIDA
Attest: KEVIN MADOK, CPA, Clerk
By: By:
As Deputy Clerk Craig Cates, Mayor
Date:
MONROE COUNTY ATTORNEY
APPROVED AS,'T"O FORM
ELL Y DUG,,
ASSISTANT COUNTY ATTORNEY
SAT
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Return to:
Wright Barrows,PLLC.
540 Key Deer Blvd
Big Pine Key,FL 33043
305-872-1050
--------------------------------Space Above this Line for Recording-----------------------------------
DECLARATION OF RESTRICTIVECOVENANT LAN
AND DECLARATIONC V ENT
This Declaration of Restrictive Covenant is executed as of the th day of
, 2023 (the"Effective Date"), by Monroe County, a political subdivision of
the State of Florida, whose post office address is 1 100 Simonton Street, Suite 205, Key West, FL
33040, in reference to the property ("Property") known as:
Legal Description:
RE#:
Address:
conveyed by the Deed betwee participating in a federally assisted acquisition project
("Grantor"), and Monroe County, ("Grantee"), its successors and assigns:
WHEREAS, Hurricane Irma impacted the Florida Keys on September 10, 2017, destroying or
ajorly damaging over 4,000 residential structures in Monroe County; and
WHEREAS, in response to the impacts statewide of Hurricane Irma,the Department of Economic
Opportunity (DEO) developed a Community Development Block Grant - Disaster Recovery
(CDG-DR) Action Plan that detailed how the State will administer the funds statewide. The
Action Plan includes the Voluntary Home Buyout Program (VHP) which was created to acquire
properties that are in high-risk flood areas, to reduce the impact of future disasters, and to assist
property owners to relocate to less risk prone areas; and,
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WHERF,AS, Monroe County was awarded $15 Million in CDBG-DR funding for the creation
and implementation of a VHBP for unincorporated portions of the County. The County adopted
Resolution 150-2020 to accept and execute the VHBP DEO Subrecipient Agreement for the
CDBG-DR funding on May 20, 2020, which was amended by an Amendment to the VHBP
Subrecipient Agreement approved on March 17, 2021, making the County a VHBP grantee; and
WHERF,AS, the Subrecipient Agreement requires the County to restrict VHBP acquired
properties to uses stated in the County's grant application. The application included Resolution
224-2019 which stated the county's intention was to deed-restrict the properties in perpetuity to
open space uses, storm water improvements or to restore and conserve the natural floodplain
functions; and
NOW, THEREFORE, this DECLARATION is made from and after the Effective Date and
subject to the following terms and conditions:
1. Terms. Pursuant to the terms of the Subrecipient Agreement 10092 dated June 4, 2020,the
following conditions and restrictions shall apply in perpetuity to the Property described in
the attached deed and acquired by the Grantee pursuant to CDBG-DR requirements
concerning the acquisition of the Property:
a. Compatible uses. The Property shall be dedicated and maintained in
perpetuity to open space uses, storm water improvements or to restore and
conserve the natural floodplain functions.
b. Structures. Construction of new structures is only allowed where:
i. A public building is open on all sides and functionally related to a
designated open space use.;
ii. The structure is a public rest room; or
iii. The structure is compatible with the uses proposed included in
paragraph La., and has DEO approval in writing before the
construction of the structure begins.
Any new structures built on the Property according to the subparagraph b.
above will be elevated or flood-proofed to the Base Flood Elevation (BFE)
plus two foot of freeboard as defined in the Federal Register 24 CFR
55.2(b)(10), or as amended and defined in the Federal Register, and meet
applicable requirements of the National Flood Insurance Program (NFIP)
floodplain management regulations or local codes.
C. Disaster Assistance and Flood Insurance. After settlement, no federal
disaster assistance for any purpose from any federal source, nor flood
insurance payments will be made with respect to the Property,and no person
or entity shall seek such amounts.
d. Transfer. The subrecipient must obtain the approval of DEO before
conveying ownership(fee title) of the Property to another public agency or
qualified conservation organization. Property transfer to private citizens and
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corporations will not be approved. All development rights in the form of a
conservation easement on the property must be conveyed to the
conservation organization or retained by the subrecipient or other public
entity.
2. Enforcement. The subrecipient must accept responsibility for monitoring and enforcing
this deed restriction and/or easement.
3. Amendment. This agreement may be amended upon signatures of DEO and the Grantee
only to the extent that such amendment does not affect the fundamental and statutory
purposes underlying the agreement.
4. Severability. Should any provision of this grant or the application thereof to any person or
circumstance be found to be invalid or unenforceable, the rest and remainder of the
provisions of this grant and their application shall not be affected and shall remain valid
and enforceable.
IN WITNESS WHEREOF,the undersigned has caused this DECLARATION to be signed by its
duly authorized representatives, as of the day and year first above written.
Grantee/COUNTY: MONROE COUNTY, FLORIDA
ATTEST: Kevin Madok, CPA, Clerk
Y ......... ....... .... m __ ..._. ..
As Deputy Clerk Craig Cates, Mayor
(Seal)
MONROE COUNTY ATTORNEY
APPROVED Date: T FORM
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KELLY 6 iA ........ .............
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ASSISTANT COUNTY T E
Date