HomeMy WebLinkAboutcover memoCITY OF MIAMI, FLORIDA
INTER -OFFICE MEMORANDUM
TO
FROM
The Honorable Mayor d..
Me bers of the y Commis
Jo Iola,
Chi < • dministrator/City Manager
SEP 10 2004
DATE : FILE :
Option to Purchase Real Property
SUBJECT : Located at 301 NE 62"d Street LHP #
101 in Connection with Little Haiti
Park
REFERENCES :
ENCLOSURES: Resolution and Option Agreement
RECOMMENDATION:
It is respectfully recommended that the City Commission adopt the attached Resolution, by an
affirmative vote of 4/5ths of the members of the City Commission, authorizing the City Manager to
exercise the Option to purchase the property located at 301 NE 62"d Street, Miami, Florida, (the
Property), as legally described in the Option Agreement between the City of Miami and Soul Harvest
Miracle Revival Center, Inc., a Florida Not -for -Profit Corporation (Seller), attached hereto and made a
part hereof, in connection with the development of Little Haiti Park, with a purchase price of
$2,350,000.00, and to consummate said transaction in accordance with the terms of said Option
Agreement. This Resolution further allocates funds in the amount of $2,405,000.00 from the from the
$255 Million Homeland Defense/Neighborhood Improvement Bond to cover the cost of said acquisition
inclusive of cost of survey, appraisals, environmental reports, title insurance and other closing costs
associated with said acquisition.
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 64`h Terrace between Northeast 2"d and 4th 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 301 NE 62nd 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 Two Million Sixty -Five
Thousand Dollars ($2,065,000). The Department of Economic Development prepared, and the City
Manager executed, an Option to Purchase Real Property Agreement ("Option Agreement") to purchase
said Property for Two Million Three Hundred Fifty Thousand Dollars ($2,350,000), which includes an
option payment of One Thousand Dollars ($1,000.00). The Purchase Price exceeds the appraised value
by 13.8%. As a condition for the purchase price exceeding the appraised value Seller shall provide the
property free and clear of all tenants, demolish the 66-unit apartment/efficiency building, perform the
removal of all debris and/or miscellaneous materials related to the demolition of the 66-unit structure.
The Seller agrees that if at least (5) five business days prior to closing all conditions precedent to closing
are not met, the Purchase Price will be automatically adjusted by Two Hundred Eighty -Five Thousand
Dollars ($285,000), a credit in favor of the City.
4
The Honorable Mayor and
Members of the City Commission
Re: Acquisition of Real Property
Located at 301 NE 62nd Street, Miami, FIa.
LHP # 101 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 $2,405,000.00 will be
provided through CIP NO. 331412 entitled "Little Haiti Park Land Acquisition and
Develonn> nt."
JA`:1 fl I:KAO rtfv. MOptionLHP 101.doc