Res. No. 045-03-11594RESOLUTIONNO.45-03-11594
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF SOUTH MIAMI,FLORIDA,AUTHORIZING THE CITY
MANAGER TO EXECUTE A LETTER OF INTENT TO PURCHASE REAL
ESTATE FOR THE ACQUISITION OF THE HAMMOCK HOUSE AND
ALLOW THE CITY MANAGER TO ENTER INTO NEGOTIATIONS AS
REQUIRED TO PROCEED WITH THE ACQUISITION OF THE
HAMMOCK HOUSE PROPERTYLOCATEDAT 7800 S.W.59™AVENUE;
AND PROVIDING AN EFFECTIVE DATE.
WHEREAS,theCity of South Miami received grant funding fromthe Office of Safe
NeighborhoodParks(SNP)intheamount of $200,000aswellastheLandandWater
ConservationFund(LWCF)intheamount of $150,000toacquiretheHammockHouseproperty;
and
WHEREAS,the appraised value of theproperty exceeds thetotal funding available;and
WHEREAS,in consideration of thelimitedfunding available,theSNPandtheLWCF
haveauthorizedtheCitytoacquire1/3 of thepropertyprovidedthattheCityenterintoatwo-
yearoption agreement with theSeller;and
WHEREAS,theCityandtheSellerhavenegotiatedtermsforthesale of the property that
agreeable toall interested parties,including thegrant agencies;and
WHEREAS,theCityandtheSellerwishtoexecuteaLetter of Intentoutliningthe
conditions of the sale;and
WHEREAS,theCityhadpreviouslyenteredintoanoptionagreementwiththeseller
which expired December 31,2002;and
WHEREAS,timeis of theessenceforthistransactionandtheCitywishestomove
rapidly with the acquisition process.
NOW,THEREFORE,BE IT RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF SOUTH MIAMI:
Section 1.TheCity Manager is authorized to execute the Letter of Intent forthe
acquisition of the Hammock House property located at 7800 S.W.59th Avenue.
Section2.TheCityManagerisallowedtoenterintonegotiationson behalf of the
Cityasrequiredtoproceedwiththeacquisition of saidproperty.
Page 2 of Res.NO.45-03-11594
Section 3.This resolution shalltake effect immediately upon arrival.
PASSEDANDADOPTEDthis 18th day of March ,2003.
ATTEST:APPROVED:
MifZCLj
CITY CLERK MAYOR WV
READ AND APPROVED AS TO FORM:
Commission Vote:
Mayor Feliu:
Vice Mayor Russell:
Commissioner Bethel:
Commissioner McCrea:Yea
Commissioner Wiscombe:Yea/cfo.<£S><-r //g>
CITY ATTORNEY
A^*zt^su*e*+-i?
Page 2 of2
5-0
Yea
Yea
Yea
To:
From:
CITY OF SOUTH MIAMI
INTER-OFFICE MEMORANDUM
South Miami
Honorable Mayor,ViceMayor
andCityCommission
Lilis AHvf\Sanford A.Youkilis
Acting City Manager *yd 7 /
Date:
Subject:
2001
March 18,2003
AgendaItem #_
Approval of theLetter of Intent
for the Hammock House Property
r/
REQUEST
ARESOLUTIONOFTHEMAYORANDCITYCOMMISSIONOFTHECITYOF
SOUTH MIAMI,FLORIDA,AUTHORIZING THE CITY MANAGER TO EXECUTE
ALETTEROFINTENTTOPURCHASEREALESTATEFORTHEACQUISITION
OFTHEHAMMOCKHOUSEANDALLOWTHECITYMANAGERTOENTER
INTO NEGOTIATIONS AS REQUIRED TO PROCEED WITHTHE ACQUISITION
OF THE HAMMOCK HOUSE PROPERTY LOCATED AT 7800 S.W.59™AVENUE;
AND PROVIDING AN EFFECTIVE DATE.
BACKGROUND AND ANALYSIS
The City has received two grants for the acquisition ofthe Hammock House property
totaling $350,000.The City also committed and additional $50,000 ofits own funding to
purchase the property.However,the appraisal report commissioned by the City indicated
the property's market value is $840,000,far exceeding the total funding available.
Consequently,the City requested authorization from the grant agencies to acquire the
vacant portion ofthe property consisting of approximately one-third ofthe property ata
cost of $280,000.Bothgrantagencieshaveapprovedthe City's request.
After several meetings withthe sellers,theCityis ready to present aLetterof Intent to
Purchase Real Property outlining the conditions ofthesaleas mutually agreed bytheCity
andtheSeller.Inadditiontootherconditions,theletterincludesa provision which allows
the City a two-year option to purchase the property.This provision will be included inthe
contractas required bytheSNP.
Adraft of theLetter of IntenttoPurchaseRealProperty,whichincludesacopy of the
survey andthe original 2001 Resolution,is attached foryour reference.
RECOMMENDATION
Approvalisrecommended.
Attachment:Letter of Intent to Purchase Real Property
SAY/OC
DRAFT
LETTER OF INTENT TO PURCHASE REAL PROPERTY
The purpose of this letter istoset forth some ofthe basic terms and conditions of the proposed purchase
bytheCity of South Miami (the "Buyer")of approximately one-third of the certain real estate located at
7800 S.W.59th Avenue,South Miami,Florida 33143,further described in Section 2 of this Letter
entitled "Description of Property".Thetermsset forth inthis Letter willnotbe legally binding until
such timeastheCityCommission approves and authorizes amore detailed "Purchase Agreement".
1.SELLER.
Mr.Garrett Van Smith,
Mr.AnthonyVanSmith,as Trustees of that certain Declaration of Trust dated March 15,1968.
2.DESCRIPTION OF PROPERTY
Folio No.-09-4036-039-0020
Area proposed for initial acquisition:Lots 11,12,and 13 as further identified in Attachment "A"
3.PRICE
In consideration of thepreviouspaymentsmadebytheBuyeron behalf of theSeller,asspecified
inResolutionNo.169-01-11317 incorporated heretoas Attachment "B",theproposed purchase
price for the initial acquisition is $280,000,oran amount equal to one-third of the appraised
marketvalueasspecifiedinthe appraisal commissionedbytheCity,datedSeptember 27,2002.
4.SPECIAL CONDITIONS
As agreed bytheBuyerandthe Seller,the special conditions of the proposed acquisition are as
follows:
a)Duringaperiod oftwoyearsafterthedate of closing("optionperiod"),theBuyerwill
havethe exclusive righttoexercisetheoptiontoacquiretheremaining two-thirds of the
property,otherwiseidentifiedaslots7,8,9,10,16,17,18,and 19 in Attachment "A"
andfurther described inthe"Purchase Agreement"document.Buyer agreestore-plat
saidpropertyatno additional costtotheSellerasprovidedinthe "Purchase Agreement"
document.Fortheduration oftheoptionperiod,the Buyer agreestopaythead valorem
taxesforthe nonexempt remainingtwo-thirds of theproperty.
b)IntheeventtheBuyerchoosestoexercisetheoptiontobuy,theBuyeragreesto purchase
theremainingtwo-thirds of thepropertyforanamountnolessthanor exceeding
$560,000.Furthermore,Mr.Garret Van Smith will be allowed toresideinthe existing
structure until hisdeathor voluntary moving.At which time,the Buyer isfreeto
determine whether to keep or demolish thestructure.
c)The Buyer proposestoacquirethispropertyforthepurpose of establishingapassivepark
in accordance with the grant agreements between the City of South Miami and the Land
and Water Conservation Fundandthe Office of Safe Neighborhood Parks.That such
parkshallbe named the "Van Smith Park".
Page1 of2
DRAFT
d)The Buyer agreestopayallclosingcostsrelatedtothistransactionas provided inthe
"Purchase Agreement"document.
e)The Seller will beresponsibleforanyandallpastdue taxes,loans,andliensstill
outstanding atthe time of closing,with the exception of thepastduead valorem taxesfor
calendaryear2000estimatedat$7,000.Said expense willbe assumed by the Buyer as
specified inthe"Purchase Agreement"document.
5.STANDSTILL:
Sellershallnotinitiateorcarryonnegotiationsforthesale of theRealEstate with anyparty
otherthan Buyer unless either:(1)Buyer andSellerfailtoenterintoa binding Purchase
Agreement by ,or(2)Buyer andSelleragreein writing to
abandonthis Letter of Intent.SaidPurchase Agreement shallfullysetforththefinaltermsand
conditions of thesaleandsale option consistent with the terms of this Letter of Intent.
Theundersignedherebyacceptthe general termscontainedinthisLetter of Intent.Thatthisdocument
shall become effective this day of 2003.
BUYER:
Signature
Name and Title
Agency Name
Date
SELLER:
Signature
Garrett Van Smith,Trustee
Printed Name
Signature
Anthony Van Smith,Trustee
Printed Name
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LETTER OF INTENT TO PURCHASE REAL PROPERTY
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LETTER OF INTENT TO PURCHASE REAL PROPERTY
66TJ55ATTACHMENT"B
NOW THEREFORE BE IT RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF SOUTH MIAMI,FLORIDA;
Section 1.The option periodis extended to December 31,2002.The
Addendum toOptionto Purchase RealEstate,whichisattachedtothisresolution
as App.l is approved.TheCity Manager is authorized and directed toexecutethe
amendment on behalf of theCity of SouthMiami.
Section2.The City Manager isdirectedtopaythe1999ad valorem
taxesandtoredeem the taxcertificatefortheamount of $7,283.30 plusadditional
accruedinterestfromOctober 31,2001tothedate of payment,andtocharge
Account No.2100-519-9920.
Section3.This resolutionshalltake effect immediately upon approval.
PASSED AND ADOPTEDthis _6thday of November 20_01
ATTEST:,APPROVED:
CITY CLERK A MAYOR
COMMISSION VOTE:5"°
READ AND APPROVED AS TO FORM:Mayor Robaina:Yea
_cr^Vice Mayor Feliu:Yea
~«2Sg^/£>£=e£.fkf2~CommissionerWiscombe:Yea
CITY ATTORNEY Commissioner Bethel:Yea
Commissioner Russell:Yea
Res.#169-01-11317
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