VII(F) Contract for Sale and Purchase with Helen J. Crittenden (property at 28 E. McKey Street) Appraisal Contingency Agenda 7-16-2002
Item VII F
FOLEY : LARDNER
MEMORANDUM
CLIENT-MATTER NUMBER
020377-0590
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 J. 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
006.262187.1 FOLEY&LARDNER
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.
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