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Home My WebLink AboutVII (D) Discussion re: of Purchase of 28 E. Mckey Street Property Agenda 8-20-2002 Inter of Good Ltt,. Item VII VI' nor , b shy, Cnuni i u r� S S nil A m Ir rLrih w.lu® 1) 000 II » II. 14 ui,t I ga gun . t uc Mani r >�CO 1 gg)) 14a�1� In �n Il tiri 2 11 ,n_ I40 t :f dim Ul,- nnre �a� \:uu I: .i: Il .I nrt To: Mayor and Commissioners From: Jim Gleason, City Manager Date: August 12, 2002 Subject: 28 F McKey Street Background: The city was approached by Duke and Helen Crittenden to gauge the city's interest in purchasing #28 E. McKey Street. The Crittenden's appraisal on the property was for $130,000. After discussions with Mr. Crittenden they offered the property to the City of Ocoee for $125,000. The city commission authorized staff to obtain an appraisal for the property. That appraisal came in valued at $100,000. the Commission requested a review of both appraisals; the review appraisal is valued at$110,000. Both appraisals are available for review in the City Clerk's office. Discussion: I met with Duke Crittenden on Monday August 12, 2002. Mr. Crittenden indicated they would not sell the property for less than the$125,000 previously offered to the City of Ocoee. Options: 1. The commission can terminate the contract offer. 2. Make a counter offer between the $110,000 and the$125,000. 3. Purchase the property for the $125,000 price offered by the seller. Policy Proposal: Staff has no recommendation on this matter, as this is a"policy decision" for the City Commission. City of Ocoee• 150 N Lakeshore Drive • Ocoee,Florida 34761 phone: (407)905-3100• fax (407)656-8504•www.ci.ococe.11.us AUG-06-0217 . 07 FROM:FOLEY & LARDNER ID:4076461743 PAGE 2/5 jP1'T'EGIR_A Realty Resources ORLANDO August 6,2002 Ms. Mary Doty, Esquire Foley and Lardner 111 North Orange Avenue Suite 1800 Orlando,FL 32801 RE: Appraisal Review—Crittenden Residence Dear Ms. Doty. 000 Per your request we have made a review of two appraisal reports provided to your office regarding the above referenced property. The two appraisals represent a value range from a low of S 100,000 to a high of$300;000- The low end of the range was provided by Mr_ Scott Hutchinson,dated 7-2-02,with the high end of the range being provided by appraiser Wendy West, dated 2-7-02- We found that both appraisals were completed in a professional manner and followed Uniform Standards of Professional Appraisal Practices(USPAP)- Both appraisers relied on three comparable sales in their overall analysis before concluding to a final value estimate. As part of our review,we inspected the subject property(exterior inspection only)the neighborhood, and we physically inspected the six comparable sales used in the two reports. Overall we found that the adjustments made to the comparable sales were reasonable and reflected market conditions as of the respective dates of value_ Ofthe six sales, it is our opinion the property located at 21 Magnolia Street just south of the subject property was the best sale. This property sold for$I30,000 and was adjusted by Mr Hutchinson to S 110,000. It our opinion this sale best reflects the value of the Crittenden residence as implicit in the sale is its similar location in what could be considered the City of Ocoee's CBD. In summery,both reports followed USPAP, and were professionally prepared. Both reached a reasonable conclusion as to a value for the subject property. Based on the sale by appraiser Hutchinson on Magnolia Street it appears that he by use of that sale had a better understanding of the appraisal problem relating to the Crittenden residence_ LOCAL EXPERTISE. . . NATIONALLY 17 South Magnolia Avenue • Orlando.FL 32801 120A W.5th Avenue • Mt Dora.FL 32757 Phone: 407-843.3377 • Fax 407-841-3823 Phone: 352-383-5760 • Fax: 352-383-0295 Email: I orlando(girr.com Email: fl orlandoQirccom AUG-06-02 17:08 FROM:FOLEY & LARDNER 1D;4076481743 PACE 3/5 08/06/2002 17700 407-B41-3112! August 6,2002 Page 2 Ms.Mary Doty,Esquire Foley and Ladner An offer within the range described by both app would be reasonable,however again,with emphasis on the sale on Magnolia Str a price offered towards the low end of the range would be more than fair. Ifyou have any questions regarding this appraisal eview please feel free to give me a call. Yours Very Truly, INTEGRA REALTY RESOURCES-ORLANDO Step J.Matonis,MAI President/Fernier SmfaCa inos9ienco1 AppnlserNo.0001421 SmvrF Attache& Certification Qualifications AUG-06-02 1708 FROM.FOLEY E. LARONER 10;4076491743 PAGE 4/5 CERTIFICATION I, Stephen J. Matonis, certify that to the best of my knowledge and belief, -. • The statements of fact contained in this report are true and correct. • The reported analyses,opinions,and conclusions are limited only by the reported General Assumptions and Limiting Conditions and,where applicable, the Special Assumptions,and are my personal,unbiased professional analyses, opinions, and conclusions. • I have no present or prospective interest in the property that is the subject of this report,and I have no personal interest or bias with respect to the parties involved. • My compensation is not contingent upon the reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value estimate,the attainment of a stipulated result, or the occurrence of a subsequent event_ • My analyses, opinions,and conclusions were developed,and this report has been prepared in conformity with the requirements of the Code of Professional Ethics and the Standards of Professional Practice of the Appraisal Institute. • This appraisal assignment was not based on a requested minimum valuation,a specific valuation,or the approval of a loan. - The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. • As of the date of this report, I, Stephen J.Matonis, MAI,have completed the requirements under the continuing education program of the Appraisal Institute. • I have made a personal inspection of the property that is the subject of the report. • No one, other than those stated herein,provided significant professional assistance to the person(s)signing this report. • I have complied with the Uniform Standards of Professional Appraisal Practice(USPAP)in conducting the research and analysis, and in formulating the value conclusion(s)contained in this report. • I am in compliance with the Competency Provision in the USPAP as adopted in FIRREA 1989 and have sufficient education and experience to perform the appraisal of the subject property_ 47 St en J. ate ' , MAI State-Certified eneral Appraiser#0001421 AUG-06-02 17,06 FROM.FOLEY & LARONER ID:40764E11743 PACE 5/6 PROFESSIONAL QUALIFICATIONS OF STEPIIEN J. MATONIS, MAI EXPERIENCE: Stephen is President of Integra Realty Resources and is primarily involved in litigation support, valuation,and counseling. Mr.Matonis has been actively engaged in real estate valuation and consulting assignments since the early 1970s. Mr. Matonis performs appraisals on various properties including but not limited to, single-family residential, apartment complexes, condominium complexes, vacant and improved industrial and commercial properties in the states of Florida, Georgia, Illinois. Indiana, and North Carolina Mr. Matonis has prepared valuations and market studies on proposed, partially completed, renovated, and existing structures. Appraisals have been made for buyers, sellers, attorneys, private parties, savings and loan associations, title insurance companies, city, county, and federal agencies. Since 1980, Mr. Matonis has specialized in litigation valuation. The Appraisal Institute has tavice published Mi.Matonis. President/Director of Integra Realty Resources-Orlando Real Property Analysts,Inc.-Orlando,Florida(1978-1951) Real Property Analysts,Inc.-FL Lauderdale,Florida(1974-1978) PROFESSIONAL Member: Appraisal Institute(AI) ACTIVITIES: MAI No.6218 Licensed- Florida General Appraiser License No.0001421 Florida Real Estate Broker Special Master: Orange County,Florida Chief Reviewer_ Appraisal Institute Litigation Course 705 Litigation Valuation Seminar Al Activities: Appraisal Institum Curriculum Subcommittee Appraisal Institute Education Subcommittee Appraisal Institute Development Team Chairman for Litigation Courses 700,705,710,720 Member: Appraisal Institute Faculty Member Published: "Hotel Valuation for Ad Valorem Tax"(Co-Author) The Apprajaal Institute,July 1993 Demo Writing Seminar,1988 EDUCATION: B.B.S.Degee,Real Estate Florida Atlantic University,Boca Raton,Florida Successfully completed numerous real estate coursesan daRe Estate Commission,inars sponsored by theaccredited praisal Institute,former Society of Real Estate Appraisers,Flo universities,and other real estate count offerings. QUALIFIED BEFORE Qualified expert witness in Florida State Courts and Federal Courts on eminent domain, COURTS AND bankruptcy,and other proceedings- ADMINISTRATIVE BODIES: FOLEY : LARDNER MEMORANDUM CLIENT-MATTER NUMBER 020377- 90 TO: The Honorable Mayor and City Commissioners of the City of Ocoee FROM: Paul E. Rosenthal, Esq., City Attorney DATE: July 9, 2002 RE: Contract for Sale and Purchase with Helen I Crittenden: Appraisal Contingency The City has entered into a Contract for Sale and Purchase with Helen J. Crittenden to purchase land located at 38 East McKey Street. The Purchase Price under the Contract is $125,000. The obligation of the City to close is contingent on the City obtaining an appraisal which supports the Purchase Price. In the event the Appraisal does not support the Purchase Price, then the City may elect to terminate the Contract or, alternatively, proceed to close at the Contract Purchase Price. The City has now obtained an Appraisal Report prepared by Scott R. Hutchinson of Pinel & Carpenter, Inc. Mr. Hutchinson has concluded that the appraised value of the Property is $100,000. Mrs. Crittenden had previously obtained an appraisal prepared by Wendy West of Realvest Residential Appraisal, LLC which indicated an appraised value of $130,000. Mr. Gleason will be forwarding a copy of the City's appraisal to Duke Crittenden in order to determine whether or not Mrs. Crittenden is prepared to sell the Property at a sales price of $100,000, per the City's appraisal. His reply should be available at the City Commission meeting. We have also obtained a title commitment, survey and Phase I Environmental Site Assessment. None of the foregoing give us any issues which would lead the City to terminate the Contract. The following options are available to the City Commission: (1) Terminate the Contract under the Appraisal Contingency on the basis that the City's appraisal does not support the Purchase Price; (2) Waive the Appraisal Contingency and proceed to purchase the subject Property at a purchase price of$125,000 based on the Seller's appraisal; or 11IY'Mdov GN FV A I GRONFR FOLEY : LARDNER (3) Present a counterproposal to Mrs. Crittenden at a purchase price somewhere between the City's appraisal and the Seller's appraisal and direct City staff to terminate in the event the counterproposal is not accepted. Direction with respect to the foregoing is requested from the City Commission. A copy of the City's appraisal and the Seller's appraisal is available for review in the City Clerk's office. 2