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CITY OF MIAMI, FLORIDA
INTER -OFFICE MEMORANDUM
TO:
FROM :
The Honorable Mayor and
Members of the City otnmission
Joe ' . a,
Chie ` : ministrator
DATE :
SUBJECT:
REFERENCES:
ENCLOSURES: Resolution and Option Agreement
FILE
Option to Purchase Real Property
Located at 245 NE 59th Street LHP
# 78 in Connection with Little Haiti
Park
FEB 6 200
RECOMMENDATION:
It is respectfully recommended that the City Commission adopt the attached Resolution authorizing the
City Manager to exercise the Option to purchase the property located at 245 Northeast 59th Street (the
Property), Miami, Florida, as legally described in the Option Agreement between the City of Miami and
Thomas N. Yates and Keith M. Yates (Seller) attached hereto and made a part hereof, in connection with
the development of Little Haiti Park, with a purchase price of $100,000 which equates to $44.62/sf for
gross building area; the gross building area is based on an estimated 2,241 square feet for subject
property. This Resolution further authorizes the City Manager to execute the option to purchase real
property agreement ("Option Agreement"), in substantially the attached form between City of Miami and
Thomas N. Yates and Keith M Yates, and to consummate said transaction in accordance with the terms
of said Option Agreement. This Resolution further allocates funds in the amount of $110,420,00 from
the $255 Million Homeland Defense/Neighborhood Improvement Bond to cover the cost of said
acquisition inclusive of cost of survey, appraisal, environmental report, title insurance, and demolition.
BACKGROUND:
On September 25, 2001, Resolution No. 01-1029 was adopted directing the City Manager to take all steps
necessary to initiate and implement the development of a superlative park in the Little Haiti area ("Park
Project"). The boundaries for the Park Project as established by the City Commission are from Northeast
59'h Street to Northeast 64th Terrace between Northeast 2" and 4t'' Avenues, Miami, Florida.
On April 11, 2002, Resolution No. 02-395 was adopted directing the City Manager to expedite the land
acquisition for the Park Project approved in the $255 Million Homeland Defense/Neighborhood
Improvement Bond Issue. The property located at 245 Northeast 59t11 Street, Miami, Florida ("Property")
is within the park boundaries and is necessary as part of the land assembly required for Park Project.
An independent appraisal established the fair market value for the Property at Sixty Five Thousand
($65,000) Dollars. The Department of Economic Development prepared, and the City Manager
executed, an Option Agreement to purchase this property for One Hundred Thousand Dollars ($100,000)
Dollars, with an option payment of One Hundred ($100.00) Dollars. The Purchase Price exceeds the
average appraised value of Sixty Five Thousand ($65,000) Dollars by Thirty -Five Thousand ($35,000)
Dollars. As a condition for the purchase price exceeding the appraised value prior to closing the Seller
shall provide the property free and clear of all tenants, and perform the removal of all debris and/or
miscellaneous materials related to the existing business in place (auto paint and body shop). Seller shall
provide the City the property free and clear of all freestanding materials that may be of a hazardous
nature (chemicals, oils, paints, etc). Seller agrees that if, at least five (5) business days prior to closing,
all debris and/or miscellaneous materials are not removed from the Property the Purchase Price will be
automatically adjusted by the cost of such removal, credit in favor of the City. Seller agrees that this
credit will be automatically granted without the necessity of executing any addendum or amendment to
the Agreement
The Honorable Mayor and
Members of the City Commission
Re: Acquisition of Real Property
Located at 245 NE 59th Street
LHP # 78 in Connection with
Little Haiti Park
Page 2
It is a condition precedent to the validity of the Option Agreement and its execution by the City Manager
that the City Commission approve the Option Agreement by a greater majority of a four -fifths (4/5ths)
affirmative vote of its members, failing such approval the Option Agreement shall be automatically null
and void without the necessity of further action by either party.
FINANCIAL IMPACT:
There is no impact to the City's General Fund. Total acquisition cost of $110,420.00 will be provided
throu h I NO. 331412 entitled "Little Haiti Park Land Acquisition and Development."
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JA:LM d.memooptionlhp78,doc