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Home My WebLink About2011-12-20 - City Commission Special Meeting MinutesCITY OF TAMARAC SPECIAL CITY COMMISSION MEETING TUESDAY, DECEMBER 20, 2011 CALL TO ORDER: Mayor Bushnell called the special meeting of the City Commission to order at 12:09 p.m. on Tuesday, December 20, 2011 in Conference Room 105, Tamarac City Hall, 7525 NW 88 Avenue, Tamarac, FL 33321. PRESENT: Mayor Pamela Bushnell, Vice Mayor Diane Glasser, Commissioner Michelle J. Gomez and Commissioner Harry Dressler. ABSENT: Commissioner Marion Swenson ALSO PRESENT: City Manager Michael C. Cernech, City Attorney Samuel S. Goren and Assistant City Clerk Patricia Teufel. PLEDGE OF ALLEGIANCE: Mayor Bushnell led the Pledge of Allegiance. City Attorney Goren read TR12143 and TR12141 into the record as they are companion items and will be heard together but voted on individually. 1. TR12143 - PURCHASE AND SALE AGREEMENT FOR 2.686 ACRE PARCEL: A Resolution of the City Commission of the City of Tamarac, Florida, approving the first amendment to agreement for purchase and sale of real property with Edward Rack Corporation, a Florida corporation; authorizing the appropriate City officials to execute the first amendment to agreement for purchase and sale of real property with the Edward Rack Corporation, a Florida corporation; approving the agreement for purchase and sale of real property (outparcel) with the Edward Rack Corporation, a Florida corporation; authorizing the appropriate City officials to execute the agreement for purchase and sale of real property (outparcel) with the Edward Rack Corporation, a Florida corporation; providing for authorization for the appropriate City officials to execute any and all documents necessary to close the transactions consistent with the purchase and sale agreements and the first amendment to agreement for purchase and sale of real property; providing for funding; providing for conflicts; providing for severability; and providing for an .effective date. 2. TR12141 - LEASE AGREEMENT WITH SANDTRAP MANAGEMENT, INC.: A Resolution of the City Commission of the City of Tamarac, Florida, authorizing the appropriate City officials to execute a licensing/lease agreement with Sandtrap Management, Inc. for the operation and maintenance of the Colony West golf course for a period of three (3) years with one five (5) year renewal; providing for conflicts; providing for severability; and providing an effective date. Commissioner Gomez seconded by Vice Mayor Glasser moved approval of TR12143. Commissioner Dressler seconded by Commissioner Gomez moved approval of TR12141. Page 1 of 2 SPECIAL COMMISSION MEETING December 20, 2011 Financial Services Director Mark Mason and Assistant City Attorney D.J. Doody appeared. Financial Services Director Mason gave a presentation (attached hereto and incorporated herein). Mayor Bushnell confirmed that the correct closing date was March 28, 2012 and not March 28, 2011 as depicted in the PowerPoint Presentation. Commissioner Dressler wanted it on the record that all the backup material and agreements reflect the correct closing date of March 28, 2012. Financial Services Director Mason said there is one change to the Lease Agreement and that is on page 5, the dates have been changed from May 1, 2013 and May 1, 2014 to December 1, 2013 and December 1, 2014. Mayor Bushnell opened the public hearing and with no one wishing to speak closed the public hearing. Financial Services Director Mason, City Manager Cernech and Assistant City Attorney Doody responded to the Commission's questions and concerns. On Roll Call for TR12143 — Motion passed unanimously (4-0) On Roll Call for TR12141 — Motion passed unanimously (4-0) There being no further business to come before the City Commission, Mayor Bushnell adjourned the meeting at 1.00 p.m. / / 1z 0 � "tL �,u� Pamela Bushnell, M Hssistant laity LIerK or Page 2 of 2 SPECIAL COMMISSION MEETING December 20, 2011 Commission Meeting December 20, 2011 COLONY WEST GOLF COURSE LOCATION MAP IMI GOLF COURSE • Commission approved Purchase and Sale Agreement for Colony West Property on September 28, 2011. • Purchase Price $3,000,000 plus closing costs. • +/- 232 acres of the Colony West Golf Course represents a land purchase, not a business purchase. • Condition precedent to closing — lease agreement with Sandtrap Management, Inc. • Also included in agreement — Right of First Refusal on 2.686 acre outparcel. • Developed as a country club in the 1970's, has operated as a public course since • Unsuccessfully submitted LUPA last year Community Benefits: • Safeguards +/- 232 acres from future residential development and removes equity firm ownership • Purchase and lease ensures upkeep of property • Protects property values in the community (Twenty-one different subdivisions adjacent to Colony West). 2 • Negotiated Short Sale — Commission Approved September 28, 2011. • Began and Concluded Lease Negotiations. • Negotiated Purchase and Sale Agreement for 2.686 acre Outparcel north of and adjacent to Colony West Facility. • Environmental studies: — Phase 1— Complete — Recognized environmental issues associated with long-term golf course Operations — Phase II — Complete — Two primary issues • Arsenic — Normal to be found on golf courses with long-term operations • Dieldrin — An alternative insecticide to DDT — Found in Maintenance Building Area K Inspection of Buildings — Provided insight into improvements however revealed no life safety issues. Primary Improvements noted: — Club House Roof Replacement — Estimated at $230,000 — Cart Barn Roof Replacement — Estimated at $62,000 — Greens Maintenance Building Roof Replacement — Estimated at $32,000. First Amendment to Agreement for Purchase and Sale of Real Property (Colony West) • Removes references to Right of First Refusal and is mutually agreed to. • Purchase Price - $500,000 plus closing costs • Closing on or before March 28, 2012 • Due Diligence period — 60 days 2 • Due Diligence: — Two Appraisals — Completed • Boyd, Schmidt & Brannum - $225,000 • Robert D. Miller, ASA - $875,000 • Average - $550,000 — Survey — Completed — Environmental Survey — Lien Search — Title Search As a condition precedent to closing, a lease was negotiated and agreed to with Sand Trap Management, Inc. to continue operations at Colony West • Three (3) years with one five (5) year renewal • Operations, Maintenance, Utilities — Responsibility of Lessee. • Insurance responsibility of Lessee Golf Fees, other fees and pricing at discretion of Lessee. Operational Audit one year after commencement Right to terminate with six (6) months notice. W, • $752,000 plus over three years — License Fee - $375,000 over three years — Monthly Capital Contribution — Variable depending on Gross Revenue (1 % for first two years, 2% for third year) - Capital Fund Contribution - $80,000 2nd year, $110,000 in 3rd year — Initial Capital Investment - $25,000 — Taxes - $54,000 per year — Revenue Sharing — Variable depending on Gross Revenue — 6% to 20% • Purchase and Sale Agreement for Colony West was dependent on Lease Agreement • Lease Agreement negotiated - $752,000 plus over three years. • First Amendment to Purchase and Sale Agreement — Agreed to eliminate reference to Right of First Refusal • Purchase and Sale Agreement for 2.686 acre outparcel - $500,000 plus closing costs — March 28, 2012 closing. 0 Questions? 7