HomeMy WebLinkAboutItem #03 Approval for Acquisition of Property for Downtown Lift Station #66 Ocoee
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AGENDA ITEM COVER SHEET
Meeting Date: April 17, 2018
Item # 3
Reviewed By:
Contact Name: Mary Solik, Esq. Department Director:
Contact Number: 407.367.7868 City Manager:
Subject: Approval for Acquisition of Property for Downtown Lift Station #66
Background Summary:
The City needs to acquire certain property for the City of Ocoee Downtown Lift Station No. 66.
Issue:
City Staff have negotiated a Purchase Agreement in lieu of acquisition by eminent domain.
Recommendations:
Approve attached Purchase Agreement.
Attachments:
Memorandum and Purchase Agreement.
Financial Impact:
$122,500 purchase price plus closing costs.
Type of Item: (please mark with an x')
Public Hearing For Clerk's Dept Use:
Ordinance First Reading X Consent Agenda
Ordinance Second Reading Public Hearing
Resolution Regular Agenda
x Commission Approval of Purchase Agreement
Discussion&Direction
x 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. mak- N/A
Reviewed by N/A
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DOTY
• S K
LAW
Mary Doty Solik,Esq. 407-367-7868
121 S.Orange Ave.,Ste. 1500 msolik@dotysoliklaw.com
Orlando, FL 32801
MEMORANDUM
TO: The Honorable Mayor and City Commissioners
of the City of Ocoee
FROM: Mary Doty Solik,Special Counsel IA 5
DATE: March 30,2018
RE: City of Ocoee City Hall Complex Project:Lift Station No.66 Purchase Agreement
Based on the current project design the City needs to acquire the following property:
Parcel No. Property Owner Property Interest Location of Property Appraised
Needed Value
101 Rubina Inn Fee Simple Title 128 N. Bluford Ave. $70,500
The property will be used by the City for the placement of Lift Station No. 66 necessary for the
expansion of City sewer service to the Downtown area. Property Valuation and Consulting, Inc.
appraised this property at the value set forth in the chart above. We sent an initial offer to purchase
this property at a price of$77,550, 10%above its appraised value to Ms. kin on December 13,2017. We
received an initial counteroffer from Ms. bin in the amount of$145,000. Negotiations continued but no
agreement was reached and the City Commission approved a Resolution authorizing the filing of a
condemnation action on February 6,2018.
As suit preparation was underway, we learned that Ms. !fin had engaged an eminent domain
attorney, Prineet Sharma, Esq., to represent her. Negotiations resumed and Mr. Sharma offered some
realistic support for his client's position. Mr. Sharma and I were ultimately able to agree on a total
settlement number of $122,500 to be presented to the Commission for approval. Accordingly, a
Purchase Agreement in the amount of$122,500 as total compensation is attached for your approval.
The $122,500 sum was not negotiated as the ultimate value of Parcel 101 but rather a global
number to address all of the City's risk and liabilities if the case were to proceed to an eminent domain
action. Under Florida law,condemning authorities are responsible for the property owner's reasonable
expert costs, including but not limited to, appraisers, land planners, engineers, and surveyors. The
condemning authority must also pay attorneys'fees based on a statutory formula based on the benefits
obtained for the client. On top of that the City would have incurred its own expert and attorneys' fees
costs to litigate this matter.
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I have been litigating eminent domain matters for over 25 years and in my experience the fees
and costs incurred by both parties on low value properties such as the subject quickly eclipse the value
of the property acquired. The negotiated purchase price being presented to you for approval is a
recognition that it is likely the most cost effective and timely resolution of this matter.
RECOMMENDATION:
It is respectfully recommended that the Mayor and City Commissioners:
1. Approve the attached Purchase Agreement, authorizing execution thereof by the Mayor and
City Clerk,and further authorizing all necessary actions in order to proceed to closing.
MDS/kh
attachments
cc:Robert Frank
Craig Shadrix
Charles Smith
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PURCHASE AGREEMENT
This Purchase Agreement (the "Agreement") is made and entered into this
day of 2018 by and between Rubina kin, whose address is 4545 Indian
Deer Road, Windermere, FL 34786 (hereinafter referred to as the "Seller"), and the
CITY OF OCOEE, a Florida municipal corporation, whose address is 150 North
Lakeshore Drive,Ocoee,Florida 32761 (hereinafter referred to as the"City").
WITNESSETH:
WHEREAS, the Seller is the owner of fee simple title to certain real property
located in Orange County, Florida, as more particularly described in Exhibit "A" (the
"Property"),and attached hereto and by this reference made a part hereof; and
WHEREAS, the City is a Florida municipal corporation which is authorized to
exercise condemnation powers pursuant to Chapter 166,Florida Statutes;and
WHEREAS, the City is constructing the Downtown Lift Station No. 66
Construction Project (the "Project") and in connection therewith needs to acquire from
the Seller title to the Property for the Project;and
WHEREAS, the City has advised Seller that if the City and the Seller do not
enter into an agreement for the purchase and sale of the Property that the City intends to
use its power of eminent domain to condemn its required interest in the Property;and
WHEREAS,Seller,under threat of condemnation,has agreed to sell the Property
to the City, and the City has agreed to purchase the Property, together with any and all
improvements, structures, fixtures and appurtenances thereto on the terms and conditions
stated below.
NOW, THEREFORE, in consideration of the promises and other good and
valuable considerations exchanged between the parties hereto,the receipt and sufficiency
of which is hereby acknowledged,the parties hereto agree as follows:
1. Recitals. The above recitals are true and correct and are incorporated
herein by reference.
2. The Purchase — The Property. Seller, under threat of condemnation,
agrees to sell and the City agrees to purchase, for the purchase price and on the terms and
conditions herein set forth, the Property, together with all tenements, hereditaments,
improvements, structures, fixtures, trees, shrubbery, roads and easements, appertaining
thereto and all of the Seller's right,title, and interest therein. The Seller shall convey to
the City marketable, fee simple title to the Property by special warranty deed free and
clear of all liens, mortgages and encumbrances, except for restrictions, reservations and
easements of record, if any. The instrument of conveyance shall transfer all of Seller's
interest in and to all improvements, fixtures, easements, trees, shrubbery, rights-of-way,
tenements and appurtenances belonging or appertaining to the Property, including
without limitation of the foregoing, all right,title and interest of Seller in and to any land
lying in the bed of any street, alley, road or avenue(before or after vacation thereof, and
whether previously abandoned or vacated or hereafter abandoned or vacated.
Purchase Price. The Purchase Price for the Property shall be ONE HUNDRED
TWENTY TWO THOUSAND FIVE HUNDRED AND NO/100 DOLLARS
($122,500.00)(the"Purchase Price"). The parties hereto acknowledge and agree that the
Purchase Price: (a) constitutes full compensation to the Seller for the value of the
Property and the resultant damage, if any, to the remainder of the lands adjacent thereto
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owned by the Seller; (b) includes full compensation to the Seller for all trees, shrubbery
and other improvements on the Property, all of which may be removed by the City in
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connection with the Project; and (c) includes compensation and reimbursement to the
Seller for all costs and expenses incurred or to be incurred incident to this Agreement and
the closing hereof,including but not limited to attorneys' fees and appraisal fees.
3. Closin,a Costs: Tax Proration. The City shall pay all closing costs
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associated with this Agreement, including all recording fees and documentary stamp
taxes relating to or resulting from the transfer of title to the City of the Property. Real
property taxes in connection with the conveyance of the Property shall be prorated as of
the day of the acceptance of the conveyance by the City and the prorated amount shall be
paid by the Seller and shall be escrowed in accordance with the provisions of Section =
196.295,Florida Statutes.
4. Not Used.
5. Closing. Closing of title for the Property shall take place at the offices of
Scott Cookson, City Attorney, Shuffield, Lowman & Wilson, P.A., 1000 Legion Place,
Suite 1700, Orlando, Florida on or before May 31, 2018. The City's legal counsel shall
be responsible for the preparation of all closing documents, at the City's expense. No
extensions to the closing date shall be granted by the City. If Seller fails to close by May
31,2018, Seller agrees to stipulate to the entry of an Order of Taking and Final Judgment
in the total amount of$122,500.00.
6. Additional Documentation. In connection with the conveyance of the
Property the Seller shall execute such closing documents as may reasonably be required
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by the City, including but not limited to a standard form no-lien affidavit, a non-foreign
certification,and a closing statement.
7. Use of Property Prior to Closing. From the date hereof through the date
of acquisition of the Property, the City through its consultants, contractors and
employees, will be and are hereby authorized to enter upon the Property for the purposes
of having scientific investigation, surveying and the taking of soil borings in connection
with the Project. Any boring holes made by the City shall be promptly filled and packed
to the surrounding earth level by the City.
8. Further Documentation. The parties agree that at anytime following a
request therefor by the other party, each shall execute and deliver to the other party such
further documents and instruments, in form and substance reasonably necessary to
confirm and/or effectuate the obligations of either party hereunder and the consummation
of the transactions contemplated hereby. The provisions of this paragraph shall survive
the closing.
9. Specific Performance. Both the City and the Seller shall have the right to
enforce the terms and conditions of this Agreement by an action for specific performance.
10. Time of Essence. Time is of the essence for this Agreement and in the
performance of all conditions, covenants, requirements, obligations and warranties to be
performed or satisfied by the parties hereto.
11. Aereement: Amendment. This Agreement constitutes the entire
agreement between the parties, and supersedes all previous discussions, understandings
and agreements, with respect to the subject matter hereof. Amendments to and waivers
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of the provisions of this Agreement shall be made by the parties only in writing by formal
amendment.
12. Applicable Law. This Agreement shall be construed and interpreted in
accordance with the laws of the State of Florida.
13. Disclosure of Beneficial Interest. Contemporaneous with the execution
of this Agreement, Seller shall deliver to the City a public disclosure of its beneficial
ownership which shall comply with the requirements set forth in Section 286.23, Florida
Statutes. This Agreement constitutes a written notice from the City to Seller requesting
the foregoing disclosure and informing Seller that such disclosure must be made under
oath,subject to the penalties prescribed for perjury.
14. Successors and Assigns. This Agreement shall be binding upon and inure
to the benefit of the parties hereto, their respective legal representatives,successors, heirs
and assigns.
15. Negotiated Price to be Without Prejudice. The purchase price specified
herein was negotiated by the parties on the basis of a total price for the Property and shall
be without prejudice to any party, and inadmissable in any condemnation proceedings
which might hereinafter be brought if this transaction is not closed for any reason
whatsoever.
16. Time for Acceptance. The Seller is irrevocably executing this
Agreement prior to approval by the City; provided, however, that in the event the City
does not approve and execute this Agreement on or before April 17, 2018, then the
Seller's execution hereof shall be automatically terminated and the City shall
immediately return to the Seller the executed originals hereof.
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17. Effective Date. The Effective Date of this Agreement shall be the date
that it is executed by the City and such date shall be inserted on the front page of this
Agreement.
IN WITNESS WHEREOF, the parties hereto have duly executed this
Agreement,to become effective as of the date and year first above written.
Signed,sealed and delivered
in the presence of: SELLER:
max: evitaga ,401)
'44..x. Rubina Irin
Signed,sealed and delivered CITY:
in the presence of: CITY OF OCOEE,a Florida municipal
corporation
By:
Rusty Johnson
Mayor
Attest:
Melanie Sibbitt
City Clerk
For use and reliance only by the City of [AFFIX SEAL]
Ocoee,Florida. Approved as to form and
legality this day of Executed on: ,2018
2018.
APPROVED BY THE OCOEE CITY
By: COMMISSION AT A MEETING
Name: HELD ON
City Attorney 2018 UNDER AGENDA ITEM NO.
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EXHIBIT"A"
PARCEL NO. 101
OWNER: Rubina Irin
INTEREST: Fee Simple
PARCEL 101
LEGAL DESCRIPTION
Begin at the Southeast Corner of Lot 5, Block 2, Town of Ocoee, as recorded in Plat Book "A",
page 100 of the Public Records of Orange County, Florida, run thence North 125 feet to point of
beginning, run thence West 85 feet; run thence North 50 feet; thence East 85 feet, thence
south 50 feet to the point of beginning.
Property Address: 128 N. Bluford Avenue
Ocoee, FL 34761
Orange County Tax ID No.: 17-22-28-6144-02051