HomeMy WebLinkAboutM-88-0640CITY OF MIAMI, FL01110A
INTILP-OFFICt MtMOIRANDUM
Cesar H. Odio July 14, 1988
+o City Manager OAlf E RILE
GAMILLUS HOUSE
f
SUBJECT
hew Schwartzstant Director
Department of Development ENCLOSURES
Pursuant to City Commission action this morning, a verbal offer was
conveyed to Brother Paul Johnson and his attorney, Michael
Fitzgerald, for the purchase of the property for $1,200,000 or to
obtain a review appraisal which will set the price.
This offer was rejected and it was reiterated that the only price
acceptable today would be $2,000,000 and that they will not
participate in any further negotiations concerning this matter
(paraphrased). They also anticipate that the value of the property
would increase by approximately 1% monthly.
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A9-640
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CITY OF MIAMI. FLORIDA
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TO
FROM
ON
INTER -OFFICE MEMORANDUM
Honorable Mayor and Members
of the City Commission
Cesar H. Odio
City Manager V.
RECOMMENDATION:
DATE: J U L 5 1988 FILE
SUBJECT Resolution Authorizing
the Purchase of Camillus
House
7/14%$8 Commission sleeting
REFERENCES
ENCLOSURES.
iL is respecLiuily recommended that the City Commission adopt the
attached resolution authorizing the City Manager to purchase two
parcels of land that are' presently occupied by Camillus House
(Parcels 43 A (Fee Simple) & B (Leasehold Interest) located
within the Southeast Overtown/Park west Redevelopment Area at a
negotiated value of $2,000,000, thereby approving the execution
of an Agreement for this purpose and authorizing the City
Attorney to proceed to close on these parcels after examination
of the abstracts and confirmation of opinion of title. Also
stating that this purchase is contingent upon the availability of
funds and subject to a provision stated 'herein.
BACKGROUND:
The Department of Deveiopment recommends the approval of the
attached resolution authorizing the City Manager to enter into a
contractual agreement for the purchase of Camillus House for a
negotiated price of $2,000,000 with the provision that Camillus
House vacates the site within 16 months from the date of closing
the property or as soon as the new facility is completed,
whichever comes first. A portion of this property is leased by
Camillus House. The lease extends to April 30, 2044 at a rate of
$5,000 per year. Tile City will have to enter into negotiations
with the owner of the leased property to purchase fee simple the
land.
Since 1965, 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 were reopened.
flhi-64Q / ,�
Honorable Mayors and Members
page two
Based on an appraisal made in January I9t55 of >9bS UUU, the City
made an offer to purchase Camillus House in June of 1965 for
$965,000 + a $50,750 bonus. In January 1986, a revised offer to
purchase this property was made for $1,002,8UU + a $52,64U bonus.
During the last eight months, negotiations have been reopened and
in October of 1987, two new appraisals were obtained. In the
interim, Camillus douse has acquired an adjacent warehouse
formerly the Studio of Lighting. The two new appraisals valued
the property at: $1,23U,UUu and $1,106,UOU. Based on these two
new appraisals and fair market value, the Gity was wiiiing to
make an offer of purchase in the amount .of S1,5uu,uUU. However,
Camillus House offered to lease the property for five l5) years
at $2UU,000 per annum or sell the land to the City for
$2,000,UUU.
Un May 4, 19tso 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 1966, this offer was rejected. After discussions with
the Mayor, a proposed settlement has been made. The purchase
price will be $2,000,0U0 with the facility being vacated within
Id months from date of closing or when the new facility is
completed, whichever comes first. Additional costs will be
incurred by the City for the acquisition or fee simple title to
lots 19 and 20, which value is estimated to be between $5U,UuU to
$IUU,uuu. lAn appraisal has been requested.)
Funding for the acquisition is proposed from a �2,000,UOU Revenue
Bond secured by the $30U,000 lease payment from the Miami Sports
& Exhibition Authority to the Southeast Uvertuwn/Part: West
Project as per the lease agreement for the arena. A number of
alternative financing options are also being pursued to secure
funding including the dedication of the proceeds from the future
sale of the Watson Building.
Attachment: Proposed Agreement/Exhibit A
Proposed Resolution/TaDle I
RS-640 0"2-