HomeMy WebLinkAboutItem #02 - Discussion ItemI*
'2K
OIfY OF MIAMI, FLOWbA
j
INTER-OFFICt MI MORANDUM
1. • • 7
TO: BATE: PILE -
Cesar Odio April 12, 1988
City Manager SUBJECt:
I
U Agenda Item
Re: Camillus House
FROM: REFERENCES:
Xavier L. Suarez
Mayor ENCLOSURES.
is
Please place on the agenda for Commission
consideration and final action the purchase of
Camillus House. I would like this to be considered
at the second meeting in May. By that time, I
fully hope that negotiations will have been carried
out as far as possible and the Commission will be
presented with clear alternative courses of action.
XLS/om
CITY OF MIAM1. FLORIDA
INTER -OFFICE MEMORANDUM
Honorable Mayor and Members
TO. of the City Commission
A
FROM: Cesar H. Odio
City Manager
DATE: 7'S ��7�V FILE:
DISCUSSION ITEM:
SU9JECT! Update on the Acquisi-
tion of the Camillus
House Property
REFERENCES:
May 19 Commission Agenda
ENCLOSURES:
The following information represents a brief update on the City's
efforts towards the acquisition of the Camillus House property and
the most recent offer of purchase.
Since 1985, the City has been actively seeking to acquire the
property at 700 Northeast 1st Avenue, more commonly known as Camillus
House. Presently, Camillus House is in the process of constructing a
new facility at Northwest 3rd Avenue and 5th Street, however, this
facility will not be ready for occupancy until approximately one year
from now. With the arena scheduled to open in July and the Southeast
Overtown/Park West Project's construction scheduled to get underway
this summer, negotiations for the acquisition -of this property have
been reopened.
Based on an appraisal made in January 1985 of $965,000, the City made
an offer to purchase Camillus House in June of 1985 for $965,000 + a
$50,750 bonus. In January 1986, a revised offer to purchase this
property was made for $1,002,800 + a $52,640 bonus. During the last
eight months, negotiations have been reopened and in October of 1987,
two new appraisals were obtained based on Camillus House acquiring
the adjacent warehouse to its property. The two new appraisals
valued the property at: $1,230,000 and $1,106,000. Based on these
two new appraisals and fair market value, the City was willing to
make an offer of purchase in the amount of $1,500,000. However,
Camillus House has offered the City to lease the property for five
(5) years at $200,000 per annum with an option to purchase this
property at the end of the lease at fair market value or to purchase
the property for $.2,000,000. The value of $2,000,000 is based on an
appraisal obtained by Camillus House.
On May 4, 1988 a verbal offer of $1.7 million was presented to the
attorney for Camillus House with the stipulation that Camillus House
relocate the food kitchen operation prior to September 1988. To
date, no response has been received from this offer and a written
offer is being prepared.
A number of financing options are being pursued to secure funding for
the proposed acquisition including the dedication of the proceeds
from the future sale of the Watson Building.