HomeMy WebLinkAboutItem #06 Potential Sale of Real Property Owned by the City of Ocoee on S. Bluford Avenueo" do
AGENDA ITEM COVER SHEET
Meeting Date: April 1, 2014
Item # ( n
Contact Name: Al Butler
Contact Number: 407 - 905 -3100 ext 1543
Reviewed By:
Department Directo .
City Manager:
Subject: Potential Sale of Real Property Owned by the City of Ocoee on S. Bluford Avenue
(District 3 Commissioner Rustv Johnson 1
Background Summary:
The subject parcel is located on South Bluford Avenue just south of Oakwood Plaza (parcel #19 -22-
28- 0000 -00 -080). The project has been the subject of much scrutiny of late because of its
unauthorized use by neighboring businesses. A previous offer in the amount of $10,000 was made for
a portion of the property at a recent City Commission meeting, and the City Commission directed staff
to bring back offers that could realistically be considered fair market offers.
The City of Ocoee has two potential offers for the property. One offer is from Satish Somwaru with
Help My Auto LLC in the amount of $70,000 for the entire parcel. The second offer is from Steve
Mitchell with RMR Investors Inc. as Trustee of S. Bluford Land Trust in the amount of $60,000 for a
portion of the parcel.
Issue:
The offer from Satish Somwaru includes a proposed offer of $70,000 for the entire parcel and is
contingent upon an appraisal supporting the value. Mr. Somwaru would like to have a first option to
purchase at the appraised amount, and understands that an appraisal may result in a higher amount
than his offer of $70,000. Mr. Somwaru is planning on developing the site with a high -end car repair
facility, which includes any site work that will have to be done. He has indicated his willingness to work
with the shopping plaza in terms of future deliveries, as well as other neighboring businesses.
The offer from Steve Mitchell includes a proposed offer of $60,000 for half of the parcel. No new
development would occur.
In consideration of the offers, the City charter Section C- 8B(2), (3) requires that properties that
appraise for more than $100,000 may be sold only after a public hearing and seven days' notice. The
Charter also requires that the City Commission sell real property at fair market value, except in cases
where specific good cause is shown.
The City Commission has four options:
1. To use a formal bidding process for the sale of this property;
2. To accept Mr. Somwaru's proposal to purchase the entire
appraisal of the entire parcel);
3. To accept Mr. Mitchell's proposal of half of the parcel;
4. To not sell the property at this time
parcel (based upon a forthcoming
Recommendations
City staff recommends the City agree to sell the property to Mr. Somwaru for the greater of (i) $70,000,
or (ii) the appraised value, subject to a mutually agreeable contract and subject to the City reviewing
and accepting the appraisal. A sale to Mr. Somwaru would result in the development of the entire
parcel and contain a business that would add to the City's Community Redevelopment Area (CRA).
Attachments:
1. Standard Purchase and Sales Agreement, survey and copy of binder deposit from Mr. Mitchell.
2. Offer letter and copy of deposit check from Mr. Somwaru.
Financial Impact:
The city would gain from the sale of the property, plus the city would gain yearly tax revenue from Mr.
Somwaru's business; the property is located in the City's CRA.
Type of Item: (please mark with an x')
Public Hearing
For Clerk's Dept Use:
Ordinance First Reading
Consent Agenda
Ordinance Second Reading
Public Hearing
Resolution
Regular Agenda
X Commission Approval
X Discussion & Direction
Original Document/Contract Attached for Execution by City Clerk
Original Document/Contract Held by Department for Execution
Reviewed by City Attorney N/A
Reviewed by Finance Dept. N/A
Reviewed by () o N/A
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Satish Somwaru
Help My Auto LLC.
805 Marys Park Place #4
Winter Garden F.L. 34787
321 6639486
Lnfo L _orn
City of Ocoee
3/19/14
Re: Property on South Bluford Avenue
To Whom It May Concern
Currently, I am the owner of a Help My Auto and operate a high end repair facility that deals with
mainly Mercedes -Benz, BMW, Range Rover and Porsche etc. vehicles that has been operating
in the City of Winter Garden for the past 19 months. My business has grown rapidly, which has
me currently looking to expand and erect a custom facility. All equipment is owned by Help My
Auto so this should make transition easier.
I am interested in purchasing the property in whole that is currently owned by the City of Ocoee. I
am willing to have an appraisal done at my expense to determine value of property.
My proposed offer of $70,000 is contingent upon appraisal value and I will have first option to
purchase at appraised amount. Enclosed please find a check in the amount of $1,000 to be held
as a deposit.
I am aware of an issue with access for the neighboring business to the north and am willing
to allow cross - access over the subject property to address some of the challenges they
may face with deliveries. I also recognize that the City will need to have a drainage
easement for the existing stormwater facilities on the property.
Thank you for time and kind consideration in this matter.
Best Re r s�
t
Satishti omvor
HELP MY AUTO LLC
805 MARYS PARK PL #4
WINTER GARDEN, FL 34787
321 2199486
1377
63- 27/631 FL
/ 25247
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PAY
TO ORDER OF 0Coee-
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Standard Purchase and Sales Agreement
Parties: RMR Investors Inc as Trustee of S. Bluford Land Trust (BUYER) and City Of Ocoee (SELLER), which terms may
be singular or plural and will include the heirs, successors, personal representatives and assigns of Seller and Buyer, hereby agree that
Seller will sell and Buyer will buy the following property, upon the following terms and conditions if completed or marked. In any conflict of
terms or conditions, that which is added will supersede that which is printed or marked.
The Property is in Oran e County, and is described as follows (if lengthy, attach legal description): Parcel: 19 -22 -28 New Parcel # to
be created
Address:
It is understood that the Property will be conveyed by General Warranty Deed (unless otherwise required) subject to taxes, existing zoning
(unless otherwise specified in paragraph 16), covenants, restrictions and easements of record.
Total Purchase Price to be paid by Buyer is payable as follows:
A. Binder deposit which will remain as a binder until closing, unless sooner forfeited or returned, $ 5,000.00
according to the provisions in this Agreement
B. Additional binder deposit due within days after date of this agreement $
C. Balance due at closing (not including Buyer's closing costs, prepaid items or peroration's) in U.S. 55,000.00
cash or locally drawn certified or cashiers check approx. X exactly — $
D. Proceeds of a new loan to be executed by Buyer to any lender other than Seller $
E. Purchase money loan to Seller on terms set forth in Paragraph 2C $
F. Other financing ( $
G. Existing mortgage balance encumbering the Property to be paid by exactly X y) $ 60,000.00
H. Total Purchase Price approx.
2. Financing: If buyer does not obtain the required financing but otherwise complies with the terms hereof, the binder deposit less sales
and loan processing costs incurred, will be returned to the Buyer.
in paragraph 1 D will be made with lender selected by
A. [ ]Application: The application for the mortgage described
[ ] Seller or [ ] Buyer. Unless such mortgage loan is approved without continued contingencies other than those elsewhere
covered in this agreement within days of the date of acceptance of this agreement, Seller and Buyer will have the right to
terminate this agreement, and Buyer will return to Seller all the title evidence and surveys received from Seller. Buyer will make
application for financing within days of the date of acceptance of this agreement and in a timely manner furnish any
and all credit, employment, financial and other information required by the lender. In the event the original loan application is
denied, Buyer, if requested by Seller, will reapply within days of such request at an alternate fixed rates Bu er will within
B. [ ]Loan Assumption: Buyer understands that interest [ ] will [ ] will not, escalate and is [ ] variable [ ] Y
days make required application and timely provide qualifying information as required by lender. Buyer's obligation to
cloe ontingent on lender's approval of the assumption within days of the date of acceptance of this agreement.
C. [ ]Seller: The balance due to Seller will be evidenced by a Non - recourse negotiable promissory note of Borrower, secured by a
valid purchase money mortgage or Trust Deed on the Property and delivered by Buyer to Seller Privilege of e of closing,
b earing annual interest rate of % and payable per for [ ] [ l
] does apply [ ] does not apply. The loan will be due on sale not due on sale of Property. This agreement is
assignable without the consent of Seller.
Closing will take place at Treasure Title in Winter Garden 407- 654 -8811 d
3. Buyer Will Pay: All Normal Closing Costs incl Deed Stamps
Closing Costs: [X] Recording fees for Deed [ ] Note stamps [ ] Intangible tax [ ] Credit reports [ ]Loan transfer and assumption
charges [ ] VA funding fee [ ] Loan origination fee [ ] Loan insurance premium [ ] Loan discount not to exceed [ ]
Transfer Tax 0 Wood Destroying Organism Report [ ] Appraisal 0 Survey [ ] Lenders Title Insurance Policy [ X ] Closing Fee.
4. Seller Will Pay: No Closing Costs
ptions only) � Owners Title insurance policy [ X ]Attorney's fee [ ] Real estate brokerage
A. Closing Costs: [ ]Transfer tax {on assum
® Deed stamps [ ]Satisfaction and recording fee ®Title Search and ExamO Closing Fee
fee [ ] Loan discount not to exceed [
] Repairs or replacements, in addition to those in paragraph 9, not to exceed $ [ ] Wood destroying organism report [
] Appraisal fee [ ] Survey [ ] Other
B. All other charges required by lender, which Buyer is prohibited from paying by law or regulation.
C. All mortgage payments or condominium and association fees will be current at Seller's expense at the time of closing.
5. Payment of Expenses: If Buyer fails to perform, all loan and sale processing and closing costs incurred, whether the same were to be
paid by Seller or Buyer will be the responsibility of the Buyer, with costs deducted from binder deposit. If Seller fails to perform, all loan,
sales processing and closing costs incurred whether same were to be paid by Seller or Buyer will be the responsibility of Seller; and Buyer
will be entitled to the return of the Binder deposit. This will include, but not be limited to the transaction not being closed because Seller is
unable to complete the transaction for a qualified Buyer, or because the property does not appraise for an amount sufficient to enable the
lender to make the required loan, or because Seller elects not to pay for the excess amount in paragraphs 4 (with respect to repairs), 9, or
11, or because the zoning is not as required in paragraph 16 or because Seller cannot deliver marketable title.
6. Prorations: All taxes, rentals, condominium or association fees, prepaid hazard insurance premiums (if assumed), monthly
mortgage insurance premiums and interest on loans will be prorated as of the date of closing.
7. Title Evidence: Within 15 days [ X ]after acceptance [ ]
after date of satisfaction of all conditions in paragraph 19,
Seller will deliver to Buyer or closing attorney: Title insurance commitment for an owner's policy in the amount of the purchase price. Any
expense of curing title including but not limited to legal fees, discharge of liens and recording fees will be paid by Seller.
8. Survey: Within days [ ] after date of acceptance [ ] after date of satisfaction of all conditions on paragraph 19,
[ ] A new staked survey dated within 3 months of closing showing all improvements now
Seller will deliver to Buyer or closing attorney:
existing thereon and certified to Buyer, lender and the title insurer. [ ] A copy of a previously made survey of the Property showing all
improvements now existing thereon. [ ] No survey is required.
9. Wood destroying Organism Report: "Wood Destroying Organism" means any arthropod or plant life which damages a
structure. Buyer may have property inspected by a Certified Pest Control Firm to determine whether there is any visible active wood
destroying organism infestation or visible existing structural damage from wood destroying organisms to the improvements. If Buyer is
informed of either or both of the foregoing, Seller will have seven (7) days from receipt of written notice thereof within which to have all
such wood destroying organism damages whether visible or not inspected and estimated by a licensed building or general contractor.
Seller will pay costs of treatment and repairs of all structural damage up to one percent (1 %) of the purchase price. If such costs exceed
the amount agreed to be paid by Seller and Seller declines to treat and repair, Buyer will have the option of (a) terminating this Agreement
or, (b) proceeding with the transaction, in which event Seller will bear costs equal to one percent (1 %) of the purchase price. Buyer will
have 7 days to have an inspection completed on the property to determine structural soundness. If structural soundness is determined to
be inadequate the buyer has the option of (a) terminate this agreement or, (b) renegotiate this agreement.
10. Title Examination and Time for Closing:
A. If title evidence and survey, as specified above, show Seller is vested with a marketable title, or an option to purchase subject to
the usual exceptions contained in title insurance commitments (such as exceptions for survey, current taxes, zoning ordinances,
covenants, restrictions and easements of record), the transaction will be closed and the deed and other closing papers delivered
on or before [X]_ days after date of satisfaction of all conditions
April 30,2014 [ ]days after the date of acceptance [ ] Y
in paragraph 19 unless extended by other conditions of this Agreement or this agreement is canceled by the Buyer.
B. If title evidence or survey reveal any defects which render the title unmarketable, Buyer will have 7 days from receipt of title
commitment and survey to notify Seller of such title defects and Seller agrees to use reasonable diligence to cure such defects at
Seller's expense and will have 30 days to do so, in which event this transaction will be closed within 10 days after delivery to
Buyer of evidence that such defects have been cured. Seller agrees to pay for and discharge all due or delinquent taxes, liens
and other encumbrances, unless otherwise agreed. If Seller is unable to convey to Buyer a marketable title, Buyer will have the
right to terminate this agreement at the same time returning to Seller all title evidence and surveys received from Seller, or Buyer
will have the right to accept such title as Seller may be able to convey, and to close this transaction upon the terms stated herein,
which election will be exercised within 10 days from notice of Seller's inability to cure.
11. Loss or Damage: If the property is damaged by fire or other casualty prior to closing, and cost of restoration does not exceed 3%
of the assessed valuation of the improvements located on the Property, cost of restoration will be an obligation of the Seller and
closing will proceed pursuant to the terms of this Agreement with cost thereof escrowing at closing. In the event cost of
restoration exceeds 3% of the assessed valuation of the improvements and Seller declines to repair or restore, Buyer will have
the option of either taking the Property as is, together with either the said 3% or any insurance proceeds payable by virtue of such
loss or damage, or of canceling this Agreement.
12. Seller agrees to deliver the Property in its PRESENT AS IS CONDITION except as otherwise specified herein. Seller does
hereby certify and represent that Seller has legal authority and capacity to convey the property with all improvements. Seller further
the
certifies and represents that Seller knows of no latent defects to the property and knows of no B act ma d the property va lue oHAS
property except the following:
NOT RELIED UPON ANY REPRESENTATIONS MADE BY ANY REAL ESTATE AGENT in describing the property, and Buyer accepts
the property in its PRESENT AS IS CONDITION, except as otherwise specified herein.
13. Occupancy: [ ] Seller represents that there are no parties in occupancy other than Seller. Buyer will be given occupancy at
closing unless otherwise specified herein
[ ] Buyer understands that property is or rented. Deposits will be transferred to Buyer at closing.
14. Personal Property: Included in the purchase price are all fixed equipment including ceiling fans, drapery hardware, attached
lighting fixtures, mailbox, fence, plants, and shrubbery as now installed on the property, and these additional items:
Items specifically excluded from this
agreement:
15. Default And Attorney's Fees: If Buyer defaults on this agreement all deposits will be retained by the Seller as full settlement of any
claim, whereupon Buyer and Seller will be relieved of all obligations under this agreement. If Seller defaults under this Agreement, the
Buyer may seek specific performance or elect to receive the return of the Buyer's deposit(s) without thereby waiving any action for
damages resulting from Seller's breach. In connection with any litigation arising out of this Agreement, the prevailing party will be entitled
to recover all costs including a reasonable attorney's fee.
16. [X] Zoning and Restrictions: Unless the Property is zoned Commercial and can not be legally used for Single Family or if there
is notice of proposed zoning changes, deed or other restrictions that could prevent such use at time of closing, Buyer will have the right to
terminate this Agreement. Buyer will have 10 days from acceptance to verify the existing zoning and current proposed changes, and
deliver written notice of objections to Seller or be deemed to have waived objections under this paragraph.
17. The offer of BUYER shall terminate if SELLER has not indicated his acceptance of the Agreement by signing and delivering same
or telegraphing acceptance to BUYER or submitting agent before 5:01 [ ] A.M. [X ] P.M., Date: April 1, 2014
18. Additional Terms ,Conditions or Addenda (lettered A,B,C,D,etc.)
19. Timing: The timing of paragraphs 7, 8, 9, and 10(A) will become operable after satisfaction of paragraph 2, if applicable, and
those additional conditions lettered in Paragraph 18.
20. There are no other agreements, promises or understandings between these parties except as specifically set forth herein. This
legal and binding agreement will be construed under Florida Law, will not be recorded and if not understood, parties should seek
competent legal advice. Seller and Buyer give real estate agent authorization to advise surrounding neighbors who will be the owner of
this property. TIME IS OF THE ESSENCE IN THIS AGREEMENT.
21. Signed, sealed on the date herein stated
y< � e
RM arch 24 2014 R Investors Inc. As Trustee of S. Bluford Land Trust Date of Offer Buyer —
Buyer —
City of Ocoee
Seller —
Date of Acceptance
Seller-
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