HomeMy WebLinkAboutItem 10 Approval for Staff to Accept an Unsolicited Letter of Intent (LOI) 15 South Kissimmee Avenue and 214 West McKey Street ocoee
florida
AGENDA ITEM COVER SHEET
Meeting Date: March 1, 2022
Item #: j 0
Reviewed By.:.
Contact Name: Michael Rumer ' Department Director:
Contact Number: 407-554-7083 City Manager: Robert
Subject: .=Approval_for Staff to accept an unsolicited Letter of Intent (LO1)-from 2BPLATINUM LP for two (2)
City-owned parcels identified as 15 S. Kissimmee Avenue and 2.14 VV. McKey Street.
Background Summary:
The City received an unsolicited offer (attached) from 2BPLATINUM LP, on February 8, 2022, for City-owned
• properties located on the southwest intersection of S. Kissimmee Avenue. and W. McKey Street(15 S. Kissimmee
Avenue and 214 W. McKey Street). The property, which is approximately 1.10 acres, currently contains two (2)
inhabitable buildings which are programmed to be removed with the Kissimmee Avenue/Taylor Street road work.
Further, about .25 acres will be utilized for a City stormwater pond and about 15 feet along Kissimmee Avenue is
needed to expand the `right-of way on Kissimmee Ave. In total, it is anticipated that more than '/a to % of the
properties will be utilized for a City pond and right-of-way.
The City purchased the property in 2014, at the height of the real estate bubble for$525,000. The price was based
on the value of the buildings and land. Since the City's plan is to raze the buildings in order to construct the
Kissimmee Avenue/Taylor Street road project and offsite pond, this LOI is based on the remaining land being
vacant.
The intent of 2BPLATINUM LP, is to construct a two-story mixed use building on the remaining parcels similar in
architecture to what the City had proposed for the St. Johns River Water Management District offices (SJRWMD)
relocation. SJRWMD ultimately chose Apopka for the relocation.
2BPLATINUM LP is proposing a purchase price of$300,000.00 for the 1.10 acres of property with the commitment
to accommodate a City stormwater pond for the Kissimmee Avenue/Taylor Street road drainage. The LOI also
provides for the City to capture any proceeds over the purchase price if the property is sold within 24 months.
The subject properties are located within the City's Downtown Core area and a portion of the property is proposed
to serve as a stormwater retention pond for the City's Kissimmee Avenue/Taylor Street Downtown Roadway
project:The properties location on the west end of McKey Street serves as a western book end in the downtown
core with the City's new City Hall and future VMG Buildings located at the eastern end. City Staff understands the
difficulties in the financing for a small mixed use building as was designed by City Staff and considering the
unknown amount of land required for the stormwater pond is therefore proposing to by-pass an appraisal being
performed. Staff has determined that the following commitments in the LOI are ensuring the property is selling for
market value:
1) Sale price of $300,000 for the remaining ± .75 to .66 acres of land which will require the existing two
inhabitable buildings to be removed.
1
2) The Buyer is permitting the City to construct a pond on a portion of the property.
3) The Buyer is committing to a Deed restriction locking in the use and athhitectural look (attached) of the
future building.
4) The contract provides for a Recapture of money if the property is sold for more than the sale price within
24 months.
Issue:
Should the City Commission accept the letter of intent for parcels identified as 15 S. Kissimmee Avenue. and 214,
W. McKey Street and direct staff to enter into a sales contract, subject to the provisions of the letter of intent?
Recommendations:
Staff recommends that the City Commission accept the Letter of Intent and authorize Staff to enter into a sales
contract subject to the provisions of the Letter of Intent.
Attachments:
Letter of Intent (LOI)from 2BPLATINUM LP;
Copy of Building Rendering for SJRWMD Building.
Financial Impact:
The City would receive $300,000.00 from the sale of land.
Type of Item: (please mark with an "x")
El Public Hearing For Clerk's Dept Use:
El Ordinance First Reading Consent Agenda
1=1 Ordinance Second Reading D Public Hearing
D Resolution yr Regular Agenda
Commission Approval
0 Discussion&Direction
D Original Document/Contract Attached for Execution by City Clerk
1=1 Original Document/Contract Held by Department for Execution
Reviewed by City Attorney
Reviewed by Finance Dept.
Reviewed by
2
Authentisign ID:E87DFDD5-F888-EC11-A5D7-501AC5E436FD
RLTV G R. O U P
Tuesday, February 8, 2022
Rob Frank
City of Ocoee
150 N Lakewood Ave.
Ocoee, FL 34761
RE: 15 S Kissimmee Ave.,& 214 W McKey Street,Ocoee 34761
Dear Mr. Frank:
This letter (the "LOI")outlines the general terms upon which 2BPLATINUM LP., is hereby offering to
purchase the Property (defined below) at:the price and terms outlined below. Upon mutual execution of
this LOI, a formal Contract(defined below) between Buyer(defined below) and Seller(defined below)
shall be drafted by Buyer incorporating the terms and conditions specified herein,plus any other tenns
and conditions that are mutually acceptable to Seller and Buyer.
TERMS AND CONDITIONS
1. PROPERTIES: 15 S Kissimmee Ave.,PID: 18-22-28-0000-00-046 & 214 W McKey Street
PID: 18-22-28-0000-00-74 with approximately 1.10 acres, less out a portion of the retention
pond
2. SELLER: City of Ocoee, or current owner of record(the "Seller").
3. BUYER: 2bplatinum, LP (the "Buyer").
4. TIME FOR ACCEPTANCE: The LOI must be signed by Seller on or February 10, 2022.
5. PURCHASE PRICE: $300,000.00 AS-IS(the "Purchase Price").
6. TERMS:
7. At closing, Buyer shall pay the sum of TO BE DETERMINED AS-IS.
8. EARNEST MONEY DEPOSIT: The Buyer shall deposit with an escrow agent the sum of ten
thousand and NO/100 dollars ($10,000.00) (the "Deposit")within two (3)business days of the
effective date of.the Contract. The Deposit shall be applied toward.the Purchase Price at Closing
and credited towards Buyer's cash payment due at that time.
112 S.BLUFORD AVENUE*OCOEE♦FL 34761 ♦PH:407-592-7710♦Fax:877-876-2702
WWW.ValiantRealtyGRP.com
AuthenlisIgn ID:E87DFDD5-F888-EC11-A507-501AC5E438FD
REALTY GROUP
9. DUE DILIGENCE: Buyer agrees to accept the Property in its "as is", "where is" condition and
waives any inspection rights except as otherwise expressly set forth herein. The foregoing to the
contrary notwithstanding,the Buyer shall have twenty (60) days after the effective date (the "Due
Diligence Period") to conduct feasibility studies and to have the property surveyed by a licensed
Florida surveyor. Any defects in title revealed by the survey shall be treated as a title defect in
accordance with the section below labelled "Title". Seller shall provide.Buyer's surveyor or other
professionals with access to the Property upon execution of this LOI, or as soon as is practical
thereafter. Buyer shall indemnify Seller for any such entries by third parties to the Property.
Seller will provide copies of any existing surveys, environmental reports, geo-technical studies, or
other property information to the Buyer within three (3) days of the effective date of the Contract,
but only to the extent that such reports or studies are in the Seller's possession and control.
10. LOAN CONTINGENCY: NONE
11. CLOSING: The Contract shall be closed(the "Closing") TO BE DETERMINED ON THE
SALES CONTRACT.
12. PROPERTY USE: To construct a mixed used building consistent with the city's downtown
urban design guidelines consisting of ground level retail and upstairs residential apartment
dwellings.
13. TITLE: Seller will convey good and marketable title to the Property to Buyer, free and clear of
all monetary liens and other encumbrance, except those specifically approved by Buyer. Seller, at
is expense,will provide Buyer with a title commitment on current ALTA forms within ten(10)
days after the effective date of the Contract. Buyer, at its sole discretion,will either approve or
disapprove title within ten (10)days. In the latter event, or in the event Buyer neither approves
nor disapproves title within the time permitted, the Contract will automatically terminate and,the
Deposit will be refunded to Buyer. Seller will be under no obligation to cure any title matters to
which Buyer objects except monetary encumbrances. If,however, Seller agrees to remove an
exception to which Buyer has objected, Seller will be given reasonable time to use good faith
efforts to do so. If Seller is unable to cure or remove the objectionable item after exercising such
good faith efforts,the Contract will automatically terminate and the Deposit will be refunded to
Buyer. Seller will not permit title to be impaired or altered after issuance of the title commitment.
14. PREPARATION AND EXECUTION OF CONTRACT: Upon execution of this LOI, Buyer
and Seller shall use their best efforts to negotiate the terms of, seek outside counsel in regards to,
prepare in its final form,and execute a Contract for Sale and Purchase (the "Contract")
incorporating all terms to be agreed upon between Buyer and Seller so that all parties are in
possession of an executed Contract within ten(10)calendar days of mutual execution of this LOI.
112 S. BLUFORD AVENUE*OCOEE•FL 34761 •PH:407-592-7710•Fax:877-876-2702
WVVW,ValiantRealtyGRP.com
Authentislgn ID:E87DF0D5-F888-EC11-A507-501AC5E436FD
LI NTV
R E A L T V G R O U P
•
15. CONCURRENT AGREEMENT:
A. Recapture on Resale. If within twenty-four(24)months from'the Effective Date of this
Agreement, Purchaser resells the Property, then Seller shall be entitled to all proceeds
from the resale of the Property in excess of the Purchase Price of the Property paid by
Purchaser under the Contract. This provision shall no longer apply once the Purchaser
has obtained a building permit.
B. Repurchase Rights. If within twenty-four (24) months from the Effective Date of this
Agreement Purchaser has failed to reasonably pursue obtaining the Approval from
City of Ocoee, Florida, subject to any extension due to delays, Seller shall have the
right to repurchase the Property (including any and all improvements then located
thereon but not completed in accordance with this Agreement and any sewer treatment
capacity associated therewith) from Purchaser for the sum of 110% of the Purchase
Price paid by Purchaser for the Property if the purchaser has made improvements in the
24 months; however, if they have done nothing, then it should be at the original sales.
Purchaser shall convey the Property to Seller free from all liens and encumbrances.
except for the Permitted Exceptions and other matters and things existing when the
Property was acquired by Purchaser subject to which Seller conveyed the Property to
Purchaser plus any agreements with utilities or governmental authorities, development
orders, utility easements and similar encumbrances granted in the ordinary course of
Purchaser's development of the Property which are reasonably necessary to serve
Purchaser's Intended Use (all of the foregoing being the "Permitted Encumbrances").
Purchaser shall be responsible for all documentary stamp taxes.and all other costs
associated with such reconveyance. In such event, within thirty (30) days from
Purchaser's receipt of Seller's request, Purchaser shall convey the Property to Seller by
special warranty deed subject to the Permitted Encumbrances. This provision shall no
longer apply once the Purchaser has obtained a building permit.
If at the time of said conveyance any lien, encumbrance, or judgment exists against the
Property, or any part thereof or any improvements thereon, other than the Permitted
Encumbrances, that accrued or arose or was occasioned by, though, under or against
Purchaser, and if Purchaser does not satisfy, discharge or transfer such lien to bond
within thirty (30) days after notice thereof is received by Purchaser, Seller may, at its
option: (i) pay or otherwise remove or cure the same and deduct the amount and cost
thereof from the amount payable to Purchaser as hereinabove stated or (ii) repurchase
112 S. BLUFORD AVENUE*OCOEE♦FL 34761 ♦PH:407-592-7710♦Fax:877-876-2702
WWW.ValiantRealtyGRP.com
AuthentIslgn ID:EB7DFDD5-F888-EC11-A507-501AC5E43BFD
L I ice! m
FEEIINETV GROUP
the Property and receive a credit against the repurchase price equal to the amount.of the
encumbrance or lien. Real estate taxes accruing during the year of reconveyance will
be prorated as of the date of reconveyance by Purchaser to Seller. The option to
repurchase herein granted-to Seller must be exercised by Seller, if at all, by written
notice to Purchaser(citing the alleged insufficiencies or failure to perform)delivered or
mailed at least sixty (60) days prior to the expiration of the twenty-four (24) month
period as set forth in Purchase Contract.
16. COSTS: Seller shall pay for the cost of the owner's title insurance policy,transfer taxes on the
deed, and any costs of settlement. Buyer shall pay for the cost of the Loan,any.Lender's title
insurance policy and endorsements, and the cost of recording the deed and any mortgage securing
the Loan. Rents and other forms of income, taxes, and other expenses shall be prorated to the date
of closing. Security deposits shall be charged to the Seller and credited to the Buyer. Buyer will
pay its own due diligence costs and Property inspection fees. Buyer and Seller will each pay their
own legal fees, if any.
17. ESCROW COMPANY: The escrow agent shall be with a title company or legal counsel to be
selected by Seller.
18. BROKER DISCLOSURE: The Buyer to this transaction is represented by Lou Forges of
Valiant Realty Group,LLC who will be compensated under a separate agreement.
19. EXCLUSIVITY: In consideration of Buyer's effort and expense in analyzing this acquisition,
Seller agrees that so long as Buyer is proceeding in good faith to negotiate a Contract, and
provided that the Buyer has not exceeded the time frames allowed herein, and,further, provided
that either party shall have the right to terminate the effect of this provision by written notice if the
parties are unable to reach agreement as to the font'of and execute the defmitive Contract within
the time period stated above, Seller will not make, accept,negotiate, or otherwise pursue any
offers for the sale or purchase of the Property. -
20. COUNTERPARTS AND FACSIMILE: This Letter of Intent.may be executed by the parties
hereto in counterparts and may be delivered via facsimile transmission. Copies of this Letter of
Intent executed in counterpart,whether delivered in its original form or via facsimile transmission,
when taken in the aggregate, shall constitute a fully executed, valid,and binding Agreement.
The above general terms and conditions are not fully exhaustive. Additional issues will need to be
addressed in the formal Contract. While we anticipate that the definitive Contract will be generally
consistent with this LOI, this LOI shall not create any legal rights or obligations on behalf of or between
112 S.BLUFORD AVENUE*OCOEE•FL 34761 ♦PH:407-592-7710♦Fax:877-876-2702
MAAN.ValiantRealtyGRP.com
Aulhenlisign ID:E87DFDD5-F888-EC11-A507.501AC5E43BFD
4\4000,,N. 40100°11N NJ rn
R E A L. T Y G R 1 U P
Seller and Buyer. Nothing herein constitutes an offer to purchase or acceptance of an offer to sell. This
LOI is not a contract. Neither party shall be bound or obligated to perform under the above terms unless a
Contract is executed.
If the above is acceptable to you as the basis for a possible transaction,please sign this LOI in the space
provided below and return the same to me no later than TBA. Upon my receipt of the executed LOI,
Seller will promptly proceed with the preparation of a formal Contract.
•
A Letter of Understanding of the following items to be included and made part of the fmal sales contract:
• City will clear and transfer ownership of the site to 2BPLATINUM,LP
• City to accommodate the site's stormwater'requirement.
• City will pay to bring water and sewer to the site
• 2BPLATINUM cost will be capital charges and connection fees
• The site be rezoned to mixed use to allow combination of retail and residential dwellings
• City to waive Police and Fire impact fees
112 S.BLUFORD AVENUE*OCOEE•FL 34761 •PH:407-592-7710•Fax:877-876-2702
1MMN.ValiantRealtyGRP.com
Authentisign ID:E87DFDD5-F888-EC11-A507-501AC5E43BFD
R CAL 1- lf GROUP'
SIGNATURES
BUYER:
2BPLATINUM,LP.
Authentinste
By ki/lArele Viiikhe Date: 02/08/22
Print Name: Marcus V Vinicius
As its: President
The undersigned Seller accepts the foregoing LOT as the basis fora proposed transaction.
SELLER:
Rob Frank,City of Ocoee
By: Date:
Print Name:
As its:
112 S.BLUFORD AVENUE*OCOEE•FL 34761 •PH:407-592-7710•Fax:877-876-2702
VVVVVV.ValiantRealtyGRP.com
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DATE:SEPTEMBER 2018
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214 W. MCKEY ST.
ititli,01)41C Conceptual Site Plan & Architecture
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Perspective 1
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