HomeMy WebLinkAboutVI(A) Contract For Sale And Purchase Of C&W Trucking From Creeden Family Limited Partnership Agenda 8-03-99
Item VIA
FOLEY & LARDNER
MEMORANDUM
CLIENT-MATTER NUMBER
020377-0504
TO: The Honorable Mayor and City Commissioners of the City of Ocoee
FROM: Paul E. Rosenthal,.Esq., City Attorney ffi___DATE: July 28, 1999
RE: Proposed Purchase from The Creeden Family Limited Partnership
ISSUE:
Should the City Commission approve the purchase from The Creeden Family
Limited Partnership of a parcel of land for use as a new public works facility at a purchase
price of$1,127,540.66?
BACKGROUND:
The provisions of Section C-8(B)(1) of the City Charter require that any
proposal for the acquisition of real property for a purchase price in excess of $1,000,000
receive a majority vote of the members of the City Commission at a public hearing preceded
by at least seven (7) days published notice. The proposed purchase from The Creeden Family
Limited Partnership is at a purchase price in excess of $1,000,000 and therefore requires
approval of the proposed purchase at a public hearing.
In connection with the public hearing, attached hereto are the following:
(1) Notice of Public Hearing.
(2) Summary of Proposed Agreement of Purchase and Sale.
(3) Copy of Staff Report previously distributed to the City Commission.
(4) Informal Opinion dated May 19, 1998 from the Commission on Ethics
regarding the receipt by Palm Tree Properties, Inc. of real estate commissions.
This informal opinion is provided since Pat Bond remains a member of the
Planning & Zoning Commission and would receive a real estate commission
from the Seller in the event the City enters into the Purchase Agreement and
006.148552.1
closes thereon. Since the Seller is responsible for the payment of the brokerage
commission, the City does not have specific information regarding the
brokerage agreement between the Seller and Palm.Tree Properties.
As of the agenda deadline, the final form of the Purchase Agreement has not been finalized. It
will be distributed under separate cover should it be finalized and executed by the Seller prior
to the City Commission meeting.
As noted in the summary, the City has ninety (90) days to investigate various
matters related to the property and may elect to terminate within that time period. Following
approval of the Purchase Contract, the City would obtain an appraisal, environmental site
assessment and survey. In the event the Purchase Price is not supported by an appraisal, or if
all environmental concerns are not satisfactorily addressed, then the City could elect to
terminate.
The City Manager and Director of Public Works recommends that the City
Commission approve the proposed purchase.
RECOMMENDATION:
It respectfully is recommended that: (1) the City Commission, pursuant to
Section C-8(B)(1) of the City Charter approve the acquisition of the lands owned by the
Creeden Family Limited Partnership as referenced in the public notice and as more
particularly described in the proposed Purchase Agreement, and (2) approve the Purchase
Agreement and authorize execution thereof by the Mayor and City Clerk and further authorize
the execution of all documents necessary to consummate the transaction contemplated by the
Purchase Agreement.
PER/jh
Attachment(s)
-2-006.148552.1
NOTICE OF PUBLIC HEARING
CITY OF OCOEE
Notice is hereby given pursuant to Section:
C-8(B)(1) of the City of Ocoee Charter that
the City intends to purchase the following
real property from the Creeden Family
Limited Partnership at a purchase price. of
$1,127,540.66:
DESCRIPTION: Approximately
12.1 acres of land located on the
west side of Maguire Road,
approximately 1,000 feet North of
the intersection of Maguire Road
and Enterprise Street.
The Ocoee City Commission will consider
the proposed purchase.at a public hearing to
be held on August 3, 1999 at 7:15 p.m. or as -
soon thereafter as practical. Interested parties
may appear at the meeting and be heard with
respect to the proposed action.
NOTICE: Any person who desires to appeal
any decision made by Commission with
respect to any matter considered at such
meeting will need a record of the proceedings
and for such purpose may need to ensure that
a verbatim record of the proceeding is made,
which record includes the testimony and evi-
dence upon which the appeal is based..
Persons with .disabilities needing assistance
to participate in any of these proceedings
should contact the Office of the City Clerk,
150 N. Lakeshore Drive, Ocoee, FL 34761,
(407) 656-2322 Ext. 146, 48 hours in
advance of the meeting. _•
Fran Gosnell, Deputy City Clerk July 25, 1999 !.
FOLEY & LARDNER
MEMORANDUM
CLIENT-MATTER NUMBER
020377-0504
TO: The Honorable Mayor and City Commissioners of the City of Ocoee
FROM: Donna More, Esq., Assistant City Attorney
THROUGH: Paul E. Rosenthal, Esq., City Attorney
DATE: July 26, 1999
RE: Summary of Proposed Agreement of Purchase and Sale between The Creeden
Family Limited Partnership, as Seller and the City of Ocoee, as Buyer
The following is a summary of the salient terms of the proposed Agreement for
Sale and Purchase relative to the City's contemplated purchase of land for use as a public
works facility:
•
Purchase Price:* $1,100,920.66 for parcels 2 and 3.
$26,620.00 for Parcel 1**
*No deposits required
**Parcel 1 may be excluded at City's option during Due Diligence Period
Due Diligence Period: 90 days from Effective Date of Contract. The City, at its
option, may terminate during the Due Diligence Period.
Title: To be provided and paid for by Seller.
Survey: To be obtained and paid for by City.
Environmental: City to obtain Phase I and Phase II Environmental
Assessment reports on the Property, at City's expense.
Seller to perform all cleanup, remediation and tank
removal, at Seller's expense. Seller's inability to perform
and complete all required work by the Closing Date will
result in Seller's obligation to deposit in escrow 150% of
the cost of all such work; alternatively, City may elect to
terminate.
006.148210.1
Closing: Thirty (30) days after expiration of Due Diligence Period
(i.e., 120 days from Effective Date of Contract).
Closing Costs: All other closing costs to be paid by Seller except
recording of deed which is paid for by City.
Broker: Pat Bond of Palm Tree Properties is Seller's broker.
Seller to pay commission.
Default: Both Seller and Buyer are limited to the remedy of
specific performance.
Condemnation: The sale by Seller to the City is under threat of
condemnation. This provides certain tax benefits to
Seller.
PER/fec
Enclosure
-2-006.148210.1
• Agenda 7-06-99
Item VII D
�rf*oF.St%o o00 �` ROBERT SMITH
PUBLIC WORKS DIRECTOR
370 ENTERPRISE ST.•OCOEE,FLORIDA 34761
PHONE(407)877-8420•FAX(407)877-0392
STAFF REPORT
TO: The Honorable Mayor and Board o ' Commissioners
FROM: Bob Smith, Public Works Direct
DATE: July 1, 1999
RE: 'Proposed Purchase of C & W Trucking Property for
Public Works Complex/Expansion
ISSUE:
Should The Honorable Mayor and Board of City Commissioners authorize staff to
proceed with negotiations for the purchase of the C & W Trucking property?
BACKGROUND AND DISCUSSION:
Currently the City's Public Works complex at 370 Enterprise St. has a total land area of
2.9 acres. This property contains 0.8 acres of utility and drainage easements, and are
therefore unusable. This leaves a useable land area of 2.1 acres. As Public Works has
continued to grow, particularly in vehicles and equipment, the small size of this site has
become a major operational and safety problem for the department. As the department
continues to grow, particularly in the Sanitation division, this space problem will only be
compounded. Currently Public Works has a total of 10 sanitation vehicles to service a
population of approximately 23,000. When the City reaches its planned built out
population of approximately 70,000, this will require over 30 sanitation vehicles. This
number of sanitation vehicles will require over 4 acres solely for parking purposes.
Staff has become aware that the C & W Trucking property, located on Maguire Rd. is
available (please see attached letter from Palm Tree Properties and appraisal
conducted by George E. Flyth for the property owner). This property encompasses a
total land area of 12.2 acres. The property contains 0.3 acres of utility easements and
0.4 acres of designated wet lands, resulting in a total useable land area of 11.5 acres.
It is staffs opinion that this property will meet the needs of the Public Works
Department for the foreseeable future.
POW
c acl LICOa 4= flew,c::s
THE PRIDE OF WEST ORANGE
Page 2.
Staff Report
C & W Property
There remains several issues requiring resolution prior to the proposed purchase of this
property, such as, environmental and wetland assessment. Please see Jim Shira's
review of the C & W Trucking Phase I Environmental Assessment Report attached.
Staff has conducted a thorough search of all available property in the City, and to date
we have located no other property of like size; zoning, availability, and price. A map of
locations of equal size will be available at the City Commission meeting for your review.
RECOMMENDATION:
Staff respectfully requests authorization to proceed with negotiations for the purchase
of the subject property by having an appraisal performed, and proceed with
negotiations for a purchase contract to be returned to the City Commission for further
review and action.
BS:jh
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Ow, Esren,
April 14, .1999
City of Ocoee
150 N. Lakeshore Drive
Ocoee, Florida 34761 . •
ATTN: Mr. Ellis Shapiro, City Manager
RE: Proposal for sale of 12 acre parcel on McGuire Road
Dear Mr. Shapiro:
Per your request, the following is a proposal on the vacant land
owned by C & W Trucking, Inc. The subject parcel is 12 acres MOL
located on McGuire Road. (see. enclosed survey of road frontage)
It is two (2) contigious parcels that for the purpose of this
proposal will be addressed as Parcel #1 and Parcel #2. Parcel #1
is 8.3999 acres and Parcel #2 is 3.61 acres, for a total of 12.009
acres. The purchase price per appraisal dated May 31, 1998 is
$1,100,920.66.
The improvements to the subject property are as follows:
Parcel #1: - crushed asphalt with 4"-6" base
- wash rack with water on site
- retention pond
- 50% fenced
Additional research on subject property for your information only is
as follows:
- approval for permit addressed to C&W, Inc. for
mitigation/fill on small wetland area.
- subsurface Soil and Groundwater Level Investigation
- continued -
'3-3 Cr7MI,liM Ctroot - flrrnoo GInrirI i gd7f1
Page 2 of 2:
City of Ocoee
C&W, Inc. site
- Appraisal on Parcel #1, dated May, 1998
- Topographic survey
- Ecological assessment was conducted by Lotspeich
and Associates, Inc. (L&A) in Oct/Nov. 1998, which
proposed permanent impacts to 0.4 acres of jurisdictional
wetlands. The report provides all necessary information
as required in Section E of the MSSW Applicant's
Handbook for submittal of a joint Environmental Resource
permit application to the St. John's River Water .
Management District and the U.S. Army Corps of Engineers.
Mr. Bill Creeden, President, C&W Trucking, Inc. has listed this property
with PALM TREE PROPERTIES, INC. The agent representing the Seller is Pat
Bond, Broker and Owner. The seller would prefer a cash transaction.
Thanking you in advance for your interest in this property. If I can be of
any further assistance, please don't hesitate to call
Sincerely,
PAT BOND
Broker/Owner
PALM TREE PROPERTIES, INC.
cc: C&W Trucking, Inc.
File - Listing
/pgb
•
•
INDUSTRIAL BUILDING
317 ENTERPRISE STREET
OCOEE, FLORIDA
PREPARED
FOR:
CHARLES W. CREEDEN
APPRAISAL DATE: MAY 31 , 1998
BY:
GEORGE E. FLYTH, ASA
CERTIFIED RESIDENTIAL REA#0000708
SOUTHERN APPRAISAL NETWORK
•
1500 LEE ROAD
ORLANDO, FLORIDA 32810
(407)578-2000 X 191
July 22, 1998
RE: Appraisal of Site and Improvements at
317 Enterprise Street
Ocoee, Florida 34761 .
C & W Trucking
Attn: Charles Creeden
317 Enterprise Street
Ocoee, Florida 34761.
Dear Mr. Creeden:
•
As requested, we are preparing a"Limited Restricted Appraisal" of the above captioned
property. The purpose of this appraisal is to estimate the Fair Market Value of the subject
property, unencumbered, in fee simple title. This is an update of a previous appraisal of
subject property originally dated January 26, 1993.
All pertinent data affecting the valuation of the subject property has bee considered to the
best of our ability. This included location, neighborhood, zoning regulations, highest and
best use, market information, and other available economic data which reasonably affects
economic trends.
In the course of our research, we have found it necessary to make certain uniform and
standardized economic forecasts based on present and past market conditions. The
consultants have no control over future legislative or economic changes which may affect
the present estimated.valuation of this property. Thus, we have used past events to
predict the present and future trends.
To the best of our knowledge and belief, the statements contained in this report and upon
which the opinions are based are correct, subject to the limiting conditions set forth. We
have no interest in the property, present of contemplated, and neither our employment nor
the fee therefrom is contingent upon the value reported.
It is the opinion of the appraisers the Fair Market Value of the subject property, in fee
simple title as of May 31, 1998 to be $1,100,000. .
ONE MILLION, ONE W TNDRED THOUSAND DOLLARS
Respectfully Submitted,
Southern Appraisal Network
George E. Flyth ASA
State Certified Residential REA #0000708
July-23, 1998
RE: 317 Enterprise Street
Ocoee, Florida 34761
C & WTrucking
Attn: Charles Creeden
317 Enterprise Street •
Ocoee, Florida 34761
Dear Mr. Creeden:
In accordance with your request, I have personally made a complete inspection of the
above referenced property for the purpose of estimating an opinion of its current market
value and preparing a"Limited Restricted Appraisal" for your information.
It is in my opinion that the estimated market value as of May 31, 1998 to be $1,100,000.
It should be clearly understood that this letter constitutes only a statement of the final
value estimate. The"Limited Restricted" appraisal, although in rough form, is retained in
my files, which are available to you for review should you desire. The preliminary
appraisal retained in my file is incorporated herein by reference and is an integral part
hereof.
The preliminary appraisal, retained in my file, includes a complete description of the
property appraised and includes developed indications of value.
I hearby certify that I have no present or contemplated future interest in the real estate that
is the subject of the report and that I have no personal interest or bias with respect to the
subject matter in this report or to the parties involved and that the amount of the fee is not
contingent upon reporting a predetermined value or upon the amount of the value
estimate. I certify that, to the best of my knowledge and belief the statement of fact
contained in the written appraisal, upon which the analysis, opinions and conclusions are
based, are true and correct subject to the special and limiting conditions contented therein
(or attached hereto), that this report has made in conformity with, and is subject to, the
requirements of the Standards of Professional Practice and Conduct of the American
Society of Appraisers and that on one other than the undersigned prepared the analyses,
conclusions and opinions concerning real estate that are set forth in the written appraisal.
If you have any further questions, please give me a call.
Thank You.
Sincerely,
424*-`11C--
George E. Flyth, ASA
State Certified Residential REA $0000708
•
• SUMMARY OF SALIENT FACTS AND CONCLUSIONS
SUBJECT ADDRESS: 317 ENTERPRISE STREET
OCOEE, FLORIDA 34761
DATE OF,VALUE: MAY 31, 1998
LOCATION OF PROPERTY: THE SUBJECT PROPERTY IS
APPROXIMATELY .5 MILES NORTH OF
HIGHWAY 50 AND APPROXIMATELY .5 •
MILES SOUTH OF SILVER STAR ROAD.
RIGHTS APPRAISED: FEE SIMPLE
TYPE OF PROPERTY: INDUSTRIAL WAREHOUSE/OFFICE
ZONING: . I-2/INDUSTRIAL
HIGHEST AND BEST USE: INDUSTRIAL WAREHOUSE/OFFICE
ASSESSMENT AND TAXES: FOLIO # 19-2228-9151-00-211
FOLIO # 19-2228-0000-00-053
ASSESSED VALUE: $633,860
LAND VALUE: $423,678
IMPROVEMENTS: $188,354
TAXES: $12,448.26
FINAL VALUE: $1,100,000
The estimated value has been separated into two parcels at your request. This separation
is for one parcel having site improvements and being a functional parcel.
The second is for excess land utilized for parking and storage at present.
Both parcels are well utilized and appear to be functional as separate parcels if desired,
due to access from two'roads and size of each.
Both parcels are fully utilized at present for it's current use as C & W Trucking.
Parcel #1-Folio #19-2228-9151-00-211 $400,000
Parcel #2-Folio #19-2228-0000-00-053 $700,000
Total Value $1,100,000 �CP
70'
WAREHOUSE
AREA
OFFICE
AREA 185'
17 ENTERPRISE ST . GARAGE
.asurements Total
70.0' x 185.0' = 12,950.0'
rst Floor: 12,950.0' FACILITIES
SEE PAGE 73 _87
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•
PLATY OF SURVEY
MANUFACTURORS HANOVER TRUST
Description :
•
From the North 1/4 19,corner
Section
S 00°42S05pE Townhi 22along South ,
Range 28 East , Orange County , Florida ; run
the 1/4 section line 439 . 81 feet to the point of beginning ;
thence N. 89°10 ' 18"E . 247 . 94 feet to a point on the Westerly
right-of-way line of Maguire Road , said right- of-way line being
on a curve concave Northeasterly
yiand having°a radius of 721 .28-
feet ; thence from a tangentbearing
South-
easterly along said right-of-way line and along the arc of said
curve 123 . 85 feet through a central angle of 09°50 ' 17" to the
point of tangency ; thence S . 47°22 ' 58"E . 332 . 11 feet to the North-
erlymost corner of Lot S , West Orange Industrial Park Unit I , as
recorded in Plat Book 3, Page 111 , Public Records of Orange
County , Florida ; run thence 5 . 68°00 ' 00"W . along the North line
of Lot S a distance of 290 .23 feet ; thence S . 89°10 '18"W . along
the North line of Lots T and U of said plat 750 . 00 feet ; thence
N . 00°30 ' 17"W. 425 .66 feet ; thence N. 89°10 ' 18"E . 447 .00 feet to
the point of beginning . Containing therein 8 .3999 acres more or
less .
• N. L IN SLC /9 ----N
Al %4c-o,P f '
Set. /.9•tt•28
W
t.
o t4j vl c\�� 1 01 �
o Prl \N�C1 V1 0/O! ,
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N
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S 5 o i0 ' i8 '1U/ 7SOGlo 5-,erc-cm • ZOO
HEN RICH INC. DATE OF: w(1-7 u6r ./No. ,�;Pt' /�.vir'10
w`t%' '' .` 1
AND SURVEYORS" :;:.,.- BOUNDARY ' %:s%:--8 CERTIF ORRECT:
FO UN IA
36 N.WYMORE ROAD FINAL
TER PARK
) 'FLORIDA 32789
(305 64 r1
RE .LAND SURVEYOR NO./85
"CENTER OF GOOD LIVING-PRIDE OF WEST ORANGE" MAYOR•COMMISSIONER
Ocoee S. SCOTT VANDERGRIFT
O� CITY OF OCOEE COMMISSIONERS
riprI 150 N. LAKESHORE DRIVE DANNY HOWELL
OCOEE, FLORIDA 34761-2258 SCOTT ANDERSON
cle ���� 407 656-2322 RUSTY JOHNSON
NANCY J.PARKER
fP OF G00O`` CITY MANAGER
ELLIS SHAPIRO
MEMORANDUM
DATE: June 29, 1999
TO: Ellis Shapiro, City Manager
FROM: James W. Shira, P.E., City Engineer/Utilities Director
SUBJECT: C & W Trucking Phase I Environmental Assessment Report
Based on a quick 'reading of the report prepared by Andreyev Engineering, Inc. for SunTrust
Bank, Central Florida, N.A., and dated June 24, 1998, I have the following recommendations and
observations.
The report specifically states on page 26, that it may be relied upon only by SunTrust bank. This
may limit the effectiveness of this report if we intend to use its information as grounds for
negotiation for the value of the property. We also are probably not covered by any Errors and
Omissions type insurance held by Andreyev Engineering, Inc. This would be significant if we
purchased the property and then found conditions which were not disclosed in the report. I
recommend that if we decide to pursue purchasing the property, we require a new Phase I
report, or require that Andreyev list the City of Ocoee as an additional party who can rely on
this report.
The report lists several Recognized Environmental Conditions on both the C&W site, and the
adjacent vacant site. A Recognized Environmental Condition refers to the presence or likely
presence, or conditions that indicate an existing release, past release, or material threat of release
of a hazardous substance or petroleum product onto or into the ground or groundwater.
The C&W site had some leaking tanks that were removed in February 1995. On page 11 of the
report, Andreyev notes that excessively contaminated soil was found and that in May 1995,
nearly 400 tons of contaminated soil were removed for thermal treatment. The report notes that
there is no record of any further assessment or remedial activities, and that further cleanup using
FDEP funding may be several years away. It also notes that a required $10,000 deductible
payable by the owner of the site may not have been paid. I recommend that we require sufficient
information be provided to the City to determine whether additional assessment or remediation ow1'
Protect Icoee's Water Resources is
•
work is required, whether that work is eligible for funding by FDEP, and whether the $10,000
deductible has been paid
On Page 12 of the report, it is noted that a January 1998 inspection of the site by Orange County
Environmental Protection Department determined that the required annual testing of the leak •
detection system for the new underground tanks had not been performed. I recommend that we
require evidence that the leak detection system has been tested, that all tests are current, and
that OCEPD has no outstanding issues on this.site.
On page 18, the report notes that the existing truck wash facility does not have an Industrial
Waste Permit as required by FDEP. The report also states that the sediment basin is unlined on
the bottom. I recommend that we require that an assessment be made of the sediment in the
basin, and of the soil beneath the basin to determine whether this area is contaminated. Further,
we should require that an Industrial Waste Permit be obtained prior to purchasing the property.
On page 25, Andreyev recommends that a Limited Phase II Environmental Site Assessment be
performed on both the C&W site, and the adjacent vacant parcel.
The report recommends that"...additional assessment activities are not recommended..." at the
site of the former underground storage tanks, or the current underground storage tanks. I am not
clear why this recommendation is made; and I recommend that we require Andreyev to explain
this recommendation to us in detail.
The report recommends additional assessment activities in the area of the truck wash, and I
recommend that we require an explanation of what this additional assessment is designed to do,
and then require the additional assessment.
The report makes several references to potential problems on the adjacent vacant parcel. I have
not made any recommendations regarding this parcel, as it is my understanding that we are not
proposing to purchase it.
I recommend that prior to entering into negotiations for the purchase of this property,.we require
the information described above, and additional information as may be determined upon
consultation with Andreyev or another geotechnical firm, to provide us with complete and up to
date information regarding the extent and nature of any contamination of the site, and the
condition of the existing underground tanks.
•
POW
Protect Oceee's Water Resources
• Kathy G. Chinoy ,�
9[, Bonnie J.Williams
Chair : Executive"Director
. „ �
Charles A. Stampelos - z_`# Wi•t-:
Vice Chair •r Philip C. Claypool
Linda McKnight Batman General Counsel
Peter M. Dunbar State of Florida
Kenneth R. Hart COMMISSION ON ETHICS (850)488-7864 Phone
David H. Krathen 2822 Remington Green Circle, Suite 101 278-7864. Suncom
Mary Alice Phelan P.O. Drawer.15709 (850)488-3077 Fax
Peter Prieto Tallahassee, FL 32317-5709
Neil A. Sterling .�
R
May 19, 1998
felin
_-
Paul E. Rosenthal, City Attorney Copy Via Facsimile: (407)648-1743�
City of Ocoee Original Via U.S. Mail
Post Office Box 2193
Orlando, FL 32802-2193
Dear Mr. Rosenthal:
Re: Informal Opinion Request- Pat Bond
I am writing in response to your request on behalf of Pat Bond for an informal advisory
opinion. You advise that Ms. Bond is a member of the City of Ocoee Planning and Zoning
Commission. Ms: Bond also holds a Florida broker's license and is the principal owner of
Palm Tree Properties, Inc., a real:estate firm. Ms. Bond has asked whether her status as a
member of the Planning and, Zoning Commission would preclude her from marketing
properties to the City and collecting, real estate commissions from the seller if the City
purchases any of her clients' (sellers') properties. You have indicated that all purchase
decisions will be made by the City Commission and that the Planning and Zoning
Commission will not be involved in any actions concerning potential sales.
Section 112.313(7Xa), Florida Statutes, prohibits a public officer from having a contractual
relationship with a business entity subject to the regulation of, or doing business with, the
agency of which he is an officer, and Section 112.313(3), Florida Statutes, prohibits a public
officer from acting in a private capacity to sell,rent or lease to his political subdivision (e.g.,
city). The Commission has advised, however, that a member of a subordinate board of a
political subdivision may sell goods or services to agencies of that subdivision other than the
agency of which he or she is a member, as long as the subordinate board is not responsible
in any manner for the approval of, or the giving of advice or recommendations as to, the
purchase of goods or.services. (See CEO's 88-17 and 88-69.)"
• Paul E. Rosenthal
May 19, 1998
Page 2
Therefore, it does not appear that a prohibited conflict of interest would be created as Ms.
Bond's agency, the Planning and Zoning Commission, will not be purchasing any property
nor will it have any involvement in the purchase.
Should Ms. Bond's situation change or differ from the facts stated in this letter, please
contact us for additional guidance.
Sincer ly, 5e2.7ca_v_
Helen K. Jones
Public Information/Education
Enclosures: CEO's 88-17, 88-69
COMMISSION ON ETHICS ADVISORY OPINIONS CEO 88-17
review and signature. In the case of the current arrangement with the dry cleaning establishment,
an agreement is in place which allows the police officers to take their clothing in for service. Each
._� month the dry cleaner provides the Police Department with a summary sheet of charges and the
various receipts. These documents then are approved by the Police Department and forwarded
to the Finance Department. You envision that the same sort of arrangement would exist with your
wife's business.
In our view it is unclear whether you would be acting as a purchasing agent under the described
circumstances. However, the Code contains an exemption where:
The total amount of the subject transaction does not exceed $500. [Section
112.313(12)(f), Florida Statutes (1987).)
Therefore, so long as any transaction between your wife's business and the City does not exceed
$500, it is clear that your wife may provide alteration services at City expense.
Please be advised that the Code also provides:
MISUSE OF PUBLIC POSITION.—No public officer or employee of an agency shall
corruptly use or attempt to use his official position or any property or resource which
may be within his trust,or perform his official duties,to secure a special privilege,bene-
fit, or exemption for himself or others. This section shall not be construed to conflict
with s. 104.31. [Section 112.313(6), Florida Statutes (1987).]
We would caution you that any attempt by you to use your official position to benefit your spouse's
business could be violative of this provision.
Your question is answered accordingly.
CEO 88-17—March 16, 1988
CONFLICT OF INTEREST
• COUNTY BOARD OF ADJUSTMENT MEMBER REALTOR
AND TRUSTEE IN SALE OR TRADE OF LAND TO COUNTY
To: Mr. Albert M. Cavalier, Member, Marion County Board of Adjustment (Anthony)
SUMMARY:
No prohibited conflict of interest would be created were a member of a county
board of adjustment to sell or trade a parcel of land to the county as a realtor
and as trustee for the property owners. Although Section 112.313(3), Florida
Statutes, prohibits a public officer from acting in a private capacity to sell ser-
vices to the political subdivision in which he serves or to any agency thereof,
previous Commission opinions have advised that under Section 112.316,Florida
Statutes, a member of a subordinate board of a political subdivision may sell to
the political subdivision as long as the subordinate board is not responsible for
the approval of or the giving of advice or recommendations as to the purchase.
CEO's 86-84, 81-66, 81-29, 80-33, 78-66 and 76-134 are referenced.
QUESTION:
Would a prohibited conflict of interest be created were you, a member of a
county board of adjustment, to sell or trade a parcel of land to the county as a
realtor and as trustee for the property owners?
Your question is answered in the negative under the circumstances presented.
In your letter of inquiry you advise that you serve as a member of the Marion County Board of
Adjustment and that you are a licensed real estate broker.You also advise that you are the trustee
29
•
•
•
COMMISSION ON ETHICS ADVISORY OPINIONS CEO 88-18
act in any manner regarding the purchase of the property, we find that the rationale of these opin-
ions applies equally in this case.
The Code of Ethics also provides:
CONFLICTING EMPLOYMENT OR CONTRACTUAL RELATIONSHIP.—No public offi-
cer or employee of an agency shall have or hold any employment or contractual relation- •
ship with any business entity or any agency which is subject to the regulation of, or is
doing business with, an agency of which he is an officer or employee . . . ; nor shall
an officer or employee of an agency have or hold any.employment or contractual rela-
tionship that will create a continuing or frequently recurring conflict between his private
interests and the performance of his public duties or that would impede the full and
faithful discharge of his public duties. [Section 112.313(7)(a), Florida Statutes (1987).)
This provision prohibits a public officer from having any employment or contractual relationship with
a business entity, such as the trust, which is doing business with his agency. However, this provi-
sion does not apply as your agency, the Board of Adjustment, is not purchasing the property. See
Section 112.312(2), Florida Statutes, defining the term 'agency.'
Accordingly, we find that no prohibited conflict of interest would be created were you to sell or
trade a parcel of land to the County as a realtor and as trustee for the property owners while remain-
ing a member of the County Board of Adjustment. You have advised that two other owners of the
property are employed by the County, although not in a decision-making capacity relating to the
purchase of property. Without examining the duties and responsibilities of these employees, we
are unable to advise how the Code of Ethics would apply to their situations. Under Section
112.322(3),Florida Statutes,we would be authorized to render an opinion to either employee about
his situation or to the officer or employee within County government who has the power to hire or
terminate the employees.
CEO 88-18—March 16, 1988
VOTING CONFLICT OF INTEREST
HOSPITAL BOARD MEMBER VOTING ON STAFF
MEMBERSHIP OF PHYSICIAN AFTER VOTING ON
MEMBERSHIP AS MEMBER OF CREDENTIALS COMMITTEE
To: (Name withheld at the person's request.)
SUMMARY:
•
A hospital board member is not prohibited by Section 112.3143(3), Florida
Statutes, from voting on the application of a physician for membership to the
hospital staff, where prior to his appointment to the hospital board he consid-
ered the application as a member of the hospital's credentials committee. Nor
would the board member be permitted to abstain from voting by Section 286.012,
Florida Statutes, on the grounds of bias or prejudice.
QUESTION:
Are you, a hospital board member, prohibited by Section 112.3143, Florida
Statutes, from voting on the application for membership to the hospital staff of
a physician whose application you considered, prior to your appointment to the
board, while a member of the hospital's credentials committee?
Your question is answered in the negative.
In your letter of inquiry you advise that recently you were appointed to the Southeast Volusia Hos-
pital Board. You also advise that you are a member of the hospital staff of a hospital governed by
the Board and have served as Chief of Staff of that hospital.For two years prior to your appointment
31
COMMISSION ON ETHICS ADVISORY OPINIONS CEO 88-69
CEO 88-69—October 19, 1988
CONFLICT OF INTEREST
CITY PLANNING COMMISSION MEMBER ASSOCIATED
WITH REAL ESTATE FIRM DOING BUSINESS WITH THE CITY
To: (Name withheld at the person's request.)
SUMMARY:.
No prohibited conflict of interest exists where a city planning commission
member is associated with a real estate firm which is doing business with the
city by way of contractual agreements with individuals serving as real estate ap-
• praisers.While Section 112.313(7)(a),Florida Statutes, prohibits a public officer
from having a contractual relationship with a business entity doing business with
his agency, this provision would not be violated as the real estate firm is doing
business with the city rather than with the planning commission.
QUESTION:
Does a prohibited conflict of interest exist where a city planning commission
member is associated with a real estate firm which has contractual relationships
with individuals who provide real estate appraisal services for a fee to the city?
Under the circumstances presented, your question is answered in the negative.
In your letter of inquiry you advise that serves as a member and Chairman of the Haines
City Planning Commission.The Planning Commission serves as an advisory body to the City Com-
mission with respect to zoning,development,comprehensive planning, and land use matters.You
further advise that the Planning Commission member is a licensed real estate broker and is associ-
. ated with a local real estate firm. When he acts as the real estate broker or agent for a real estate
transaction, the commission is paid to the real estate firm, which retains a portion of that commis-
sion in consideration of office space and certain services which it provides. The balance is paid
to the Planning Commission member by the real estate firm. The Planning Commission member
• does not share in the corporate profits of, nor is he a stockholder or officer of, the real estate firm.
The real estate firm also has contractual relationships with individuals who provide real estate
appraisal services.Two of these individuals have been asked by the City to prepare appraisal re-
ports on parcels of property which the City was or is contemplating purchasing or trading for other
property. Some of these reports have been preparediand submitted to the City, while others are
in the process of being prepared. The City has been billed for the completed appraisal services.
When paid by the City, the real estate firm will distribute a portion of the fees to the appraisers.
You question whether a prohibited conflict of interest is created under the Code of Ethics for
Public Officers and Employees by virtue of these circumstances. You note that the member re-
ceives no compensation as the result of the payment of an appraisal fee and that he did not partici-
pate in the selection of the appraisers, the preparation of the appraisal reports,and the determina-
tion of the fees to be paid for the appraisal services.
The Code of Ethics for Public Officers and Employees provides in relevant part:
CONFLICTING EMPLOYMENT OR CONTRACTUAL RELATIONSHIP.—No public offi-
cer or employee of an agency shall have or hold any employment or contractual relation-
ship with any business entity or any agency which is subject to the regulation of, or is
doing business with, an agency of which he is an officer or employee . . . ; nor shall
an officer or employee of an agency have or hold any employment or contractual rela-
tionship that will create a continuing or frequently recurring conflict between his private
interests and the performance of his public duties or that would impede the full and
faithful discharge of his public duties..[Section 112.313(7)(a), Florida Statutes (1987).]
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