VII (D) Discussion re: of Purchase of 28 E. Mckey Street Property Agenda 8-20-2002
Inter of Good
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To: Mayor and Commissioners
From: Jim Gleason, City Manager
Date: August 12, 2002
Subject: 28 F McKey Street
Background:
The city was approached by Duke and Helen Crittenden to gauge the city's interest in purchasing
#28 E. McKey Street. The Crittenden's appraisal on the property was for $130,000. After
discussions with Mr. Crittenden they offered the property to the City of Ocoee for $125,000. The
city commission authorized staff to obtain an appraisal for the property. That appraisal came in
valued at $100,000. the Commission requested a review of both appraisals; the review appraisal
is valued at$110,000. Both appraisals are available for review in the City Clerk's office.
Discussion:
I met with Duke Crittenden on Monday August 12, 2002. Mr. Crittenden indicated they would
not sell the property for less than the$125,000 previously offered to the City of Ocoee. Options:
1. The commission can terminate the contract offer.
2. Make a counter offer between the $110,000 and the$125,000.
3. Purchase the property for the $125,000 price offered by the seller.
Policy Proposal:
Staff has no recommendation on this matter, as this is a"policy decision" for the City
Commission.
City of Ocoee• 150 N Lakeshore Drive • Ocoee,Florida 34761
phone: (407)905-3100• fax (407)656-8504•www.ci.ococe.11.us
AUG-06-0217 . 07 FROM:FOLEY & LARDNER ID:4076461743 PAGE 2/5
jP1'T'EGIR_A Realty Resources
ORLANDO
August 6,2002
Ms. Mary Doty, Esquire
Foley and Lardner
111 North Orange Avenue
Suite 1800
Orlando,FL 32801
RE: Appraisal Review—Crittenden Residence
Dear Ms. Doty. 000
Per your request we have made a review of two appraisal reports provided to your office
regarding the above referenced property. The two appraisals represent a value range
from a low of S 100,000 to a high of$300;000- The low end of the range was provided by
Mr_ Scott Hutchinson,dated 7-2-02,with the high end of the range being provided by
appraiser Wendy West, dated 2-7-02-
We found that both appraisals were completed in a professional manner and followed
Uniform Standards of Professional Appraisal Practices(USPAP)- Both appraisers relied
on three comparable sales in their overall analysis before concluding to a final value
estimate. As part of our review,we inspected the subject property(exterior inspection
only)the neighborhood, and we physically inspected the six comparable sales used in the
two reports. Overall we found that the adjustments made to the comparable sales were
reasonable and reflected market conditions as of the respective dates of value_
Ofthe six sales, it is our opinion the property located at 21 Magnolia Street just south of
the subject property was the best sale. This property sold for$I30,000 and was adjusted
by Mr Hutchinson to S 110,000. It our opinion this sale best reflects the value of the
Crittenden residence as implicit in the sale is its similar location in what could be
considered the City of Ocoee's CBD.
In summery,both reports followed USPAP, and were professionally prepared. Both
reached a reasonable conclusion as to a value for the subject property. Based on the sale
by appraiser Hutchinson on Magnolia Street it appears that he by use of that sale had a
better understanding of the appraisal problem relating to the Crittenden residence_
LOCAL EXPERTISE. . . NATIONALLY
17 South Magnolia Avenue • Orlando.FL 32801 120A W.5th Avenue • Mt Dora.FL 32757
Phone: 407-843.3377 • Fax 407-841-3823 Phone: 352-383-5760 • Fax: 352-383-0295
Email: I orlando(girr.com Email: fl orlandoQirccom
AUG-06-02 17:08 FROM:FOLEY & LARDNER 1D;4076481743 PACE 3/5
08/06/2002 17700 407-B41-3112!
August 6,2002
Page 2
Ms.Mary Doty,Esquire
Foley and Ladner
An offer within the range described by both app would be reasonable,however
again,with emphasis on the sale on Magnolia Str a price offered towards the low end
of the range would be more than fair.
Ifyou have any questions regarding this appraisal eview please feel free to give me a
call.
Yours Very Truly,
INTEGRA REALTY RESOURCES-ORLANDO
Step J.Matonis,MAI
President/Fernier
SmfaCa inos9ienco1 AppnlserNo.0001421
SmvrF
Attache&
Certification
Qualifications
AUG-06-02 1708 FROM.FOLEY E. LARONER 10;4076491743 PAGE 4/5
CERTIFICATION
I, Stephen J. Matonis, certify that to the best of my knowledge and belief, -.
• The statements of fact contained in this report are true and correct.
• The reported analyses,opinions,and conclusions are limited only by the reported General Assumptions and
Limiting Conditions and,where applicable, the Special Assumptions,and are my personal,unbiased
professional analyses, opinions, and conclusions.
• I have no present or prospective interest in the property that is the subject of this report,and I have no
personal interest or bias with respect to the parties involved.
• My compensation is not contingent upon the reporting of a predetermined value or direction in value that
favors the cause of the client, the amount of the value estimate,the attainment of a stipulated result, or the
occurrence of a subsequent event_
• My analyses, opinions,and conclusions were developed,and this report has been prepared in conformity
with the requirements of the Code of Professional Ethics and the Standards of Professional Practice of the
Appraisal Institute.
• This appraisal assignment was not based on a requested minimum valuation,a specific valuation,or the
approval of a loan.
- The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly
authorized representatives.
• As of the date of this report, I, Stephen J.Matonis, MAI,have completed the requirements under the
continuing education program of the Appraisal Institute.
• I have made a personal inspection of the property that is the subject of the report.
• No one, other than those stated herein,provided significant professional assistance to the person(s)signing
this report.
• I have complied with the Uniform Standards of Professional Appraisal Practice(USPAP)in conducting the
research and analysis, and in formulating the value conclusion(s)contained in this report.
• I am in compliance with the Competency Provision in the USPAP as adopted in FIRREA 1989 and have
sufficient education and experience to perform the appraisal of the subject property_
47
St en J. ate ' , MAI
State-Certified eneral Appraiser#0001421
AUG-06-02 17,06 FROM.FOLEY & LARONER ID:40764E11743 PACE 5/6
PROFESSIONAL QUALIFICATIONS OF STEPIIEN J. MATONIS, MAI
EXPERIENCE: Stephen is President of Integra Realty Resources and is primarily involved in litigation support,
valuation,and counseling. Mr.Matonis has been actively engaged in real estate valuation and
consulting assignments since the early 1970s. Mr. Matonis performs appraisals on various
properties including but not limited to, single-family residential, apartment complexes,
condominium complexes, vacant and improved industrial and commercial properties in the
states of Florida, Georgia, Illinois. Indiana, and North Carolina Mr. Matonis has prepared
valuations and market studies on proposed, partially completed, renovated, and existing
structures. Appraisals have been made for buyers, sellers, attorneys, private parties, savings
and loan associations, title insurance companies, city, county, and federal agencies. Since
1980, Mr. Matonis has specialized in litigation valuation. The Appraisal Institute has tavice
published Mi.Matonis.
President/Director of Integra Realty Resources-Orlando
Real Property Analysts,Inc.-Orlando,Florida(1978-1951)
Real Property Analysts,Inc.-FL Lauderdale,Florida(1974-1978)
PROFESSIONAL Member: Appraisal Institute(AI)
ACTIVITIES: MAI No.6218
Licensed- Florida General Appraiser License No.0001421
Florida Real Estate Broker
Special Master: Orange County,Florida
Chief Reviewer_ Appraisal Institute Litigation Course 705
Litigation Valuation Seminar
Al Activities: Appraisal Institum Curriculum Subcommittee
Appraisal Institute Education Subcommittee
Appraisal Institute Development Team Chairman for
Litigation Courses 700,705,710,720
Member: Appraisal Institute Faculty Member
Published: "Hotel Valuation for Ad Valorem Tax"(Co-Author)
The Apprajaal Institute,July 1993
Demo Writing Seminar,1988
EDUCATION: B.B.S.Degee,Real Estate Florida Atlantic University,Boca Raton,Florida
Successfully completed numerous real estate coursesan daRe Estate Commission,inars sponsored by
theaccredited
praisal
Institute,former Society of Real Estate Appraisers,Flo
universities,and other real estate count offerings.
QUALIFIED BEFORE Qualified expert witness in Florida State Courts and Federal Courts on eminent domain,
COURTS AND bankruptcy,and other proceedings-
ADMINISTRATIVE
BODIES:
FOLEY : LARDNER
MEMORANDUM
CLIENT-MATTER NUMBER
020377- 90
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 I 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
11IY'Mdov GN FV A I GRONFR
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.
2