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NEW MIAMI
To: Honorable Mayor and Members of the City Commi sion
From: Marva L. Wiley, President/CEO, Model City Trust taita./ i
Subject: Specific Performance Action - Sale of Property `
Date: April 29, 2004
RECOMMENDATION:
It is respectfully requested that the City Commission direct the City Attorney to
prosecute a specific performance action to compel the sale of properties located
at 1525 and 1535 NW 62nd Street to the City of Miami consistent with the terms
and conditions of the Purchase and Sale Agreement executed by the parties.
BACKGROUND:
At the City Commission meeting of September 25, 2003, the City Commission
approved the acquisition of the properties located at 1525 and 1535 NW 62nd
Street for the Model City Trust. These properties are vacant parcels located
between two parcels previously acquired by the City.
The City and the Trust sought to expedite the transaction to accommodate the
seller's eagerness to close on the deal, however, title defects were revealed in the
title search which the sellers were asked to cure. The closing agent, who was
engaged by the City Attorney, noted these title defects as exceptions to the title
commitment. I communicated the issues to the City Attorney's Office to request
that we begin to assess the risk on closing with the defects or utilizing the City's
authority to overcome these barriers.
More recently, the sellers forwarded a letter requesting that the sale be cancelled
because the City had not closed in the prior four months. The City Attorney's
Office has researched this situation and communicated with the closing agent
and advised that a specific performance action could be brought to enable the
closing with the title defects. An analysis of those title defects follows:
• A mortgage had been recorded on the property though no satisfaction of
the mortgage had been filed. According to an amortization schedule, the
last payment on the mortgage was due October 3, 1999; thus, consistent
with Florida law, the mortgage will expire on October 3, 2004. The
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mortgage holder is a now dissolved Panamanian corporation; thus, the
risk of action
• Additionally, the marital status of the prior owner who transferred the
property to the sellers is not reflected on the deed transferring to the
sellers. This would be a major concern if the property could be a marital
"homestead." Given that these parcels are vacant and located along this
commercial street, the likelihood of such an allegation is minimal.
Vacant parcels such as this one, particularly along the commercial corridor, are
major contributors to the slum and blight of the area. Thus, I would encourage
the City Commission to authorize this action to enable the redevelopment of the
parcel.