HomeMy WebLinkAboutItem 08 Discussion & Direction Regarding an Unsolicited Letter of Intent (LOI) for City-Owned Property Identified as Tract #10 of the Ocoee Crown Point PUD Located at Ocoee Apopka Road and Fuller’s Cross RoadMeeting Date: October 4, 2022
Item #:
Reviewed By
Michael Rumer, �
Contact Name: Development Services Director Department Director:
Contact Number: 407-554-7083 City Manager: Robert F
Background Summary:
The City received an unsolicited offer (attached) from John Yu with an assignee provision on May 27, 2022, for City -
owned property located on the west side of Ocoee -Apopka Road and the north side of Fullers Cross Road. The
property, which is approximately 6.96 acres, of which the LOI is requesting to purchase the eastern ±3 acres. The
parcel identification number is 06-22-28-0000-00-055. The proposed offer is for a purchase price of $400,000.00 per
developable acre or $1,200,000.00.
City staff conducted evaluations with respect to the offers and, on August 4, 2020, provided the City Commission
with a summary showing each proposer's offered price and a summary of the proposed project. With respect to the
13.51-acre property, the offered prices ranged from a high of $2,000,000.00 and a low of $1,000,000.00. The highest
offer was for a project consisting of a mix of townhomes and apartments. Thus, the best of the offers was still close
to $1,000,000.00 below the appraised value of the 13.51-acre property. Given the low offers, a lack of urgency to
sell the Property, and additional development coming over the next few years, The City Commission elected to not
pursue the sale of the Residential Property.
Issue:
Should the City Commission accept the letter of intent for property known as Crown Point PUD Tracts #10 and direct
staff to enter into a sales contract subject to an appraisal being provided by the City and subject to the provisions of
the letter of intent?
Recommendations:
Staff recommends that the City Commission accept the letter of intent and authorizes staff to initiate an appraisal anc
authorize Staff to enter into a sales contract subject to the provisions of the letter of intent.
Attachments:
Cover letter and Letter of Intent (LOI) from John Yu;
Copy of Crown Point PUD Land Use Plan.
Financial Impact:
The City would receive up to $3,000,000.00 from the sale of land.
Type of Item: (please mark with an 'Y)
O Public Hearing
O Ordinance First Reading
O Ordinance Second Reading
O Resolution
O Commission Approval
M Discussion &Direction
For Cletk's Dept Use:
El Consent Agenda
0 Public Hearing
10 Regular Agenda
O Original DooumenUCuntract Attached for Execution byCity Clerk
O Original Document/Contract Held byDepartment for Execution
Reviewed by City Attorney
Reviewed hyFinance Dept.
Reviewed by
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May 24, 20ZZ
The City of Ocoee
Crty Manager Robert Hank
150 N. Lakeshore Dr,
Ocoee, -71- 3476-7
Re- FjlIPrs Cross Poad & Ocoee Apcip;i Rd, PJW comer City of Ocoee Property
Sellen The City of otoee
Boyer John Yu or its wstnee / nor ninee
Gear Mr. Frank,
John Yu is pleased to present this Leettef of Intent for the Ptoperty (as defiried below), IM Lei.Let of
Intent is not inter-ded to constitute a binding agreement, but shall merely serve as the basis for
negotiaLing and drafting a dcfin ftive purchase and saagroement kbueon the Panties containing
the terms statpri in this Letter of Intent, as, such terms may be further negotiated and murtuakV
agreed upon by the parties, ind such other terms and conditoris to be determined aid also
mutuatiV agreed upon by the parties. It is understood and agreed that this Letter of Intent does not
contain al'i the essential teirr* that the part as expect will be r,,jft of a defrititivv purchase JrW i4e
aprec-ment,
the basic terms and conditions under which John Yu is intemsLed in negotiating and entering into a
inuttialtv agreed upon and binding purchase and sale ag ,reement (a "Contract"} are ar tolflowt-
I. PROPERTY- -/- 3 Gross acre-, in Ocoee, FL described as parcal- 06-22-28-00MOO-O!;I5,see
attchment below,
-?. PURCHASL PRICL: the purcha,t� price, for tjje f0e,,impfe mtere,.t of Seller in the Property is for
y ,M pet developable acre exrkides any tsna dexerminedto be wetlands or lying within any
arpmp, nr area and any land notuspd by gave m mental authorkles in determining density calculations
for a cash sum of,
S1,200,0GO (orre million Two Hundred and No/100 Dollars) or the agreed upon appratised val
whichever is higher. I
.3- TFRM$: BU!1C Closing in cash upon &M-ifaction of the condfric)ns to muse
fi. CON I RAC f I -ILL: The sure of Hve I houSand Doltars ($S,(=) in the forts Of Cash Wiff be oepositeo
with Scott A. Cookson, Esq. ShWeld Lowman (LhC- "Lstrow Agent') and released to sekr Within
I , Ne (5) business days Of ThP full Pxerutknn and degivery of the contract.
5- DIUOSW the sum of =Iftecn Ifiousarid oollav,, 1515,(YA)) m the form of casK bond or lezWr or
credit (toec-the:
with,'ill mterest that may accrue thereon, the 'Initial Dvpuswt') will be depusked the Escrow Agent
within fije (5) business days of the full execration and delivery of the Conorart. At, additional delx,�54
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of pfty -ihcm�szn�a Dxovia% iSYjOoQ,, fthe 'S'ecand vvM be depinsteid, iq;thm ��ve j-_Sj�
business days following ,hr- and of the Inspection Period. An additional deposit of Fifty -Phousand
Dollars (SW,000) (the "`third N, posiC) writ be deposited, within Five (5) business Days following
Rczotung Appiovjl, which aging with the Initial Deposit, Second fa posit and Third Deposit shall be
runs ide red the "DePoSit". At Closing, The Deposit will tre- applied to the purchase price of the
property. Tice deposit shall tre released after the expiration of the iryperlflon period if the
contract is not terminated during, the im-pection fwriod.
6. HNSPFCnON PERIM Rover ,hall have until the 90o day following the full LxeLution and delNmry
of the Contract to conduct Such examinations as it deems m-messary with restrecit To Me Property,
Buyer steal have the right to tPrminate the Conti att for any reasoi) prior to the� expir.&On of the
Insp-cictiot) Powd and receive the return of the Nposit, Writhin ftve (5) brifine5s days fogowong
acceptance of this letter by Splker, Scher shall deliver to buyei copies of all of the fribowing
mazerials relating to the Property, to the extent with SelkWs posse s4irrnear control: existing survey5;
existing, proposed, or draft site plans, plats, and dcvelcipment/improventent plans, existing
environmental reports, exi_6ug leases, oucupancy agreements, operating apreementi, and licenses;
zoning stipulations, agreemientr, and redo ,,,f eynot rts.- ex*tme, an:1racological, biologirAl, smi,
geological, erading, drainage, or hydrology reports and any other errgineerimg reportt, -drid other
tnird-parry rep-rt,, contracis, and aeiecmvnu of any kind.
if the Contract rs terminated prior to the closing, Buyer shall prornptiy retorts such ducuments,
reports, and studies to Seder, Buyer and its agents shall be given full and comptetp arcpss to the
Property at a6l reasufrdble times from the ir�cerynnrp of thfT, letter by &eliet and priu,, to any
Termination of the Contract in order Lut�onduct tesh, studios, and analysis as Buyer may deem
clesirab te,
7. CLOSING: Subject to the purchase t'fzns sr t forth in paragraph 3 above, the CkIsing shail take
P,.,ace within fifteen (15) days following the Impr of- (.a) the ['Are Diligence Ternrinatioit Date or (b)
Buyjer's recaipt: of all of the Goverrimental Approvals. Notwith!Jantliog the forging, in no event
shall the Closing occur later than Twelve (121 months following the Due Diligence Termination Dat'a.
Notwithstandine the folegoing. Buyer may extend the Closing by up to ThV?y (30dayS on Mo (21
occasions by proAding written noire thereof to Seller and Lwow Agent and by depositing with
Escrow Agent, in each case, on or before the date then scheduLed for Closing, the sum of Tel)
Thousand Dollar-- jSIQffMj (each, a "Olosing Lxtension Deposito and cullectivety, the "Closing
Extension LNeticisits"I for surf, 3U-day extension. The romaining C$ sirrg 17xiensions Deposits, if Malle,
shalt be applicable to The purr as ofire
8- CONDITIONS PRECEOUN I 10 CLOS'NG: The fottowmg m-arters shall be rornDIO-zed in accordance
with tile terms of the Artroornpriv as conditions, we-i:edent to C"itig:
aThe Property shall have an dppiuved Prekininary Subdivision P" frorn the City of Ocoee,
b. The Propetly shall also have valid POMUMMD and Af.'OE Permits ;and Fm�31
FrigineerinB/Conqrucrion plans complete and approved by all jurisdictions, which apvrovit�
shall be tire Buyer's responvibillty to prociess and obtain, prior to 0&5irrg.
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9C110SI RC) CO-STS: -SpIter shall pay title insurinrP cost- on me deed and its cu&tonvarV rtasing rorTi
Buyer shaL pay for the recording of the deed, transfer tax (documentary starnps) and its vustarvary
dostne costs, Noperty taxes for the cAndar year of cosine, Shall be prorated as of the lobe of
da&ing.
!0, TITE COMWTIVIENT: SePer Shall provide to Buyer a We commitmenT, in form Wnd from a ate
insurer accuptab,e to Buyer, for the full antount of the purchaw price within 3 business days
toylosv'�nj; thin full exenutinn and dpliverV of the. Contract. Excppt for current vixer, and assessments
b OL yet due and other kens to be teteased at the tiow of Ousing, the Property shall be free: and th:w
J,
otali iiers and encumlarmces,
I L, REAL ESTATE BROKERAGE COMMISSION: Thap parties acknowledge that no real estate broker or
agent, other than Central Florida Land Brokers whuiu cornrnistiion is to be paid by the &-iyer, Is
;n,.-ojvf-d in thproriwed tr.)n,,ar:v;oP, The parties agree to defend and lndennnifv each other front
any claims of commissions or brokerage fees artsg from 8,uVer or Seller's respuctrve mwalings with
any othc( real estatO broker Of 30efiL I — --
Ag,rped and arceprpr—
Name:
By:
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