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HomeMy WebLinkAboutR-86-0943J-86-990 11/07/86 RESOLUTION NO. A RESOLUTION AUTHORIZING THE CITY MANAGER TO PURCHASE ONE PARCEL OF LAND (PARCEL 25-D/E) LOCATED WITHIN THE SOUTHEAST OVERTOWN/PARK WEST REDEVELOPMENT AREA AT THE RATE PREVIOUSLY ESTABLISHED BY THE CITY COMMISSION AND FURTHER AUTHORIZING THE CITY ATTORNEY TO PROCEED TO CLOSE ON THIS PARCEL AFTER EXAMINATION OF THE ABSTRACT AND CONFIRMATION OF OPINION OF TITLE. WHEREAS, the City Commission by Resolution No 82-755 approved in principle the Southeast Overtown/Park West Redevelopment Plan; and WHEREAS, the City Commission approved in principle the Phase I Overtown Transit Station Impact Area proposal for the i Southeast Overtown/Park West Community Redevelopment Area by Resolution No. 83-972; and WHEREAS, the City Commission has declared that the best method to redevelop Southeast Overtown/Park West is by a Unified Development Project (Resolution No. 84-893); and WHEREAS, the City Commission has authorized the City Manager to initiate the acquisition of properties within the Southeast Overtown/Park West Community Redevelopment Project Area (Resolution No. 86-251); and WHEREAS, the City Commission established procedures for the acquisition of land through negotiated purchase in the Southeast Overtown/Park West Redevelopment Area (Resolution No. 85-396); and CITY COMMISSION MEETING OF NOV 1$ 1986 14 S5lUilON Ha.w�+ WHEREAS, further by Resolution No. 85-396, the City Manager was authorized to enter into agreements to purchase real estate in the project area pending final Commission ratification for a price not to exceed the appraised valve of the property to be acquired, plus a bonus of up to ten percent on the first $50,000 and up to five percent on any amount over $50,000; and WHEREAS, the City Manager has entered into negotiations with landowners for purchase of the parcels remaining within Phase I of the project area that are not presently owned by the City; and WHEREAS, the City Manager has negotiated an agreement with land owner and has made a formal offer to purchase a parcel (Parcel 25-U/E) which is identified and described in Table I attached hereto and made a part hereof; and WHEREAS, the negotiated settlement price on this parcel is higher than that approved by the City Commission; and WHEREAS, funds from the proceeds of the General Obligation Housing Bond Funds are available for acquisition; and WHEREAS, the cost of this parcel to the City would not exceed estimated costs based on appraised values, commensurate bonus, schedules, and contingencies previously approved by the City Commission for all property acquisition within the area (Resolution Nos. 85-394 and 85-396); and WHEREAS, the amounts set forth in Table I are reasonable and in keeping with the costs of acquiring property through the normal negotiation process; and -2- 86--9436 NOW THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: Section I. This Commission hereby finds, determines, and declares that the matters set out in the foregoing recitals are true and correct and they are hereby incorporated by reference as if fully set forth in this section. Section 2. The City Manager is hereby authorized to execute a purchase of the property identified at the costs stated in Table 1 for anticipated use as part of the Southeast Overtown/Park West Redevelopment Project subject to the availability of funds provided for in the foregoing paragraphs. Section 3. The City Attorney is hereby authorized to proceed to close on this property after examination of the Abstract and confirmation of an Opinion of Title. PASSED AND ADOPTED this 13th day of November 1986. ATTEST: PREPARED AND APPROVED BY: A CV -7. APPROVED' A AND CORRECTNESS -3- s f • CERTIFICATE OF VALUATION 6 Parcel No. 25-D&E Upon request for valuation by the City of Miami for the Southeast Overtown/Park West Redevelopment Project, we have made an investigation and analysis of the following described property: Parcel No.: Folio No.: Legal Description: 25-1.0 01-0102501--10 Lots 9 and 10 (Pt.), Dade County, Florida Block 25N of P.B. B-41 We hereby certify that to the best of our knowledge and belief, except as otherwise noted in this report: o Neither Real Estate Research Corporation nor any of its officers has any present or contemplated interest in the property appraised; o The undersigned have both personally inspected the property and surrounding market area- 0 Facts and rationale stated in this report are correct; o This appraisal was prepared in accordance with and is subject to the Rules of Professional Ethics of the American Institute of Real. Estate Appraisers; o The American Institute of Real Estate Appraisers conducts a voluntary program of continuing education for its designated members. MAls and RMs who meet the minimum standards of this program are awarded periodic educational certification. The MAI below is currently certified under this program through September 15, 1987; o No one other than the undersigned prepared the analyses and conclusions contained in this report. o Our opinion of the Market Value of the property appraised as of December 21, 1984 is: FORTY-FIVE THOUSAND DOLLARS ( 45, A ) which may be allocated as follows: Land: $45,000 Improvements: $ 0 Total: S45"- Sp p Respectfully submitted, REAL ESTATE RESEARCH CORPORATION 7 Clifford A. Koenig, MAI Vice President Robert O. Bernstein Senior Appraiser SG-943 TABLE I: DESCRIPTION, IDENTIFICATION, AND COST OF PARCELS -- S.E. OVERTOWN/PARK WEST PROJECT PHASE I NEGOTIATED SETTLEMENT PRICE 'LC"I` aDIBl�ESS PARCEL LEGAL DESCRIPTION LAND BUILDING FIXTURES SUB TOTAL BONUS TOTAL I�-�. S,��rowette 25-d/E Lot s and North 100 $79,000 0 POD k.C.,40th St. ft. of lots 9 and O i79,O00 i75,500 i254,500 Kimmi. FL. 10 of Block 2+4 N. � 00, QS N.W. 10th ST. DN0 coot- 1 .7 _ c !c a � "!� 'Z § S ! t r e h� pi is It irw'� 1 fs n �s Ir � � n w n .. s's.►arM : '.. N • N.W. 10th ST. Au+ - „bw w• 2 A,* A so Asr/ s#wos w w as s• w� i a m I, ails ■ N.W. 9th ST. N.W. 9th ST. ima�iaa� w �i Q r` w. > O �v , Q ► � an t7 _ 3� _ R SOUTHEAST OVEP,TOWN/PARK WEST PHASE I ACQUISITION STATUS z C>: W - N . Fj N.W, 8th ST, JUNDER CONTRACT OR PURCHASED s 44 .✓/ /L�, a • -0 A M M N UNDER CONSIDERATION `,�._ F rif N.W. Ith ST. N 50 CITY OF MIAMI. FLORIDA INTER -OFFICE MEMORANDUM TO. Honorable yor-' ! �,� DATE: ,November 7, 1986 FILE: J-86-990 Lnd Ilemb r of the City Co mi, Sion SUBJECT Southeast Overtown/Park West Acquisition Parcel No. 25 D/E FROM: a REFERENG Lu is A. Rougher`ity Commission Agenda, Nov. City Attorney 13, 1986 ENCLOSURES, RECOMMENDATION: It is respectfully recommended that the City Commission approve the attached resolution authorizing the settlement of Parcel 25- D/E for the amount of $154,500, with funds to be provided from the 1976 General Obligation Housing Bonds allocated to the Southeast Overtown/Park West Project. BACKGROUND: The Department of Development and the Law Department have analyzed and reviewed this proposed settlment for parcel No. 25 D/E. On April 11, 1985, the City Commission authorized the City Manager to initiate the acquisition of the thirty-one privately owned parcels (comprising 71 properties) in the S.E. Overtown/Park West Redevelopment area (Resolution No. 85-394). The City Manager was also authorized to enter into agreements to purchase real estate in the area, pending final Commission ratification, for a price not to exceed the appraised value of the properties to be acquired, along with bonus schedules for all closings that were expedited (Resolution No. 85-396). In approving this resolution, the Commission further authorized appraised values for the parcel and allowed a fifteen percent contingency for increased land values and reappraisals. To date, the City Commission has authorized the closing of 29 parcels of the 31 parcels. All of the settlements on these parcels have been at a value established through M.I.A. appraisal review by a review appraiser and/or at negotiated value. On Block 25 seven parcels have already been acquired; two (2) parcels remain to be acquired (Parcels 25-H b 25 E-D). l Honorable Mayor and Members of the City Commission Page 2 As a result of the jury verdict in the Overtown Urban Initiative Case (Dade County vs Sawyer), the City terminated any additional acquisition pending completion of the appeal process. A proposed settlement of Dade County vs Sawyer is being reviewed by you at the November 13th Meeting. The owner of Parcel 25 E/D has recently contacted the City concerning a negotiated sale for th'is parcel. As a result of negotiations, a settlement price of $154,500 for this 17,500 square foot parcel is being recommended by City staff. The original appraisal of this parcel, dated December 21, 1984, was $79,000. As a result of the jury verdict (Dade County vs Sawyer), which awarded land values averaging $28 per square foot, there have been unrealistic expectations of real estate values created for public acquisitions in the Overtown area. The owner of this parcel, A. L. Symonette, was a major property owner in the recent condemnation case. During the last 10 years, the County has taken numerous parcels owned by this owner, all through condemnation. While the proposed negotiated acquisition price is significantly greater than the appraised value, the proposed settlement price is equal to or less than that which the City could anticipate if forced to condemn this parcel. Even with a reasonable jury verdict, condemnation proceedings result in an average of 30-50% increase in costs due to Florida Law which mandates that the condemning body is liable for all legal fees and associated expenses. In order to expedite this acquisition, and assume a reasonable settlement, it is recommended that this acquisition be approved. Funding for this acquisition will be from the 1976 General Obligation Housing Bond Funds. Attachments: Certificate of Value Map Resolution cc: City Manager City Clerk