HomeMy WebLinkAbout1988-10-03 - City Commission Workshop Meeting MinutesO� T AMI
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September 29, 1988
NOTICE OF
CITY COUNCIL
WORKSHOP MEETING
There will be a Workshop Meeting of the City Council on
Monday, October 3, 1988 at 9:00 a.m. in Conference Room #1
(Room 103), City Hall, 7525 N.W. 88th Avenue, Tamarac,
Florida.
The subject of this meeting is the sale of City
property.
All meetings are open to the public.
CAE/nr
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Carol A. Evans
City Clerk
AN EQUAL OPPORTUNITY EMPLOYER
POLICY OF NONDISCRIMINATION ON THE BASIS OF HANDICAPPED STATUS
CITY OF TAMARAC
CITY COUNCIL WORKSHOP MEETING
MONDAY, OCTOBER 3, 1988
TAPE 1
CALL TO ORDER: Mayor Abramowitz called this meeting to Order on
Monday, October 3, 1988 at 9:00 A.M. in Conference Room #1 (City
Clerk's Office).
PRESENT:
Mayor Norman Abramowitz
Vice Mayor Jack Stelzer
Councilman Dr. H. Larry Bender
Councilman Bruce Hoffman
Councilman Henry Rohr
ALSO PRESENT:
John P. Kelly, City Manager
Richard Doody, City Attorney
Janet Lander, Ruf & Carsky
Pauline Walaszek, Special Services
Secretary
Janet Lander said she discussed the concerns of the City
Council with Jeff Berkowitz regarding the contract for
the sale of the Public Works property and this was the
purpose of this meeting.
Ms. Lander said in
improvements on the
wanted to keep this
the possibility of
said Mr. Berkowitz
salvage right.
Paragraph 11 regarding the
property, she said Mr. Berkowitz
language in the contract because of
the property value decreasing. She
has agreed to give the City the
Jeff Berkowitz said the City had the right to salvage the
improvements; however, the property value was important
and the City would be renting the property. Ms. Lander
said this clause would be placed in the lease.
PAGE 2
Ms. Lander said the matter regarding the easements was
discussed with Mr. Berkowitz who agreed to buy the
easements and to pay for any additional surveys as well.
PAGE 3
Ms. Lander said Mr. Berkowitz agreed that at the closing
date for Phase I, he would make a deposit of $85,000.00
for Phase II. She said this deposit would be 10% of the
property value and to sell the lots of Phase II
contiguously starting at Lot 7.
PAGE 5
Ms. Lander said Paragraph D, "if available" would be
replaced with "or the remainder thereof".
PAGE 6
Ms. Lander said "obtain Title Insurance" should
take the place of "obtain affirmative Insurance".
Page 1
l0/3/88
PAGE 7
Ms. Lander said this page also pertained to the buyer
obtaining his own survey.
PAGE 8
Ms. Lander said Mr. Berkowitz's Attorney wanted to leave
in the language regarding platting with "by purchaser"
being eliminated.
Mayor Abramowitz said the language in Paragraph "A" was
very specific and did not address the City making
changes. He said this paragraph did not give the City
much control and Ms. Lander said the problem was being
reviewed at this time by the City Planner.
V/M Stelzer said the newspaper indicated restriction by
the County on traffic control and he asked if this would
affect the property.
Ms. Lander said everything in the Master Plan would
filter down to the local level and affect the local
planning.
V/M Stelzer asked if there would be problems with the
completion of this purchase if the County would not let a
development in the area with high traffic flow.
Mayor Abramowitz said once the developer had the permits
and built on the property, the County could not ask him
to take it down.
Ms. Lander said if the developer had the building permits
there were vested rights that could be claimed.
Mr. Berkowitz said he would not be able to pull permits
on leased property; therefore, he was assuming the risks.
He said if there were restrictions opposed subsequent to
the initial closing, he would not close on the property.
V/M Stelzer said Mr. Berkowitz was at risk on Phase I and
the City was at risk for Phase II; however, the risk had
to be taken in order to sell Phase I.
PAGE 9
Ms. Lander said somewhere at the end of a lease language
regarding another environmental audit would be performed.
Ms. Lander said she discussed the City Council's concerns
regarding curb cuts on 57th Street with Mr. Berkowitz who
agreed to consider the elimination of as many curb cuts
as possible.
Mr. Berkowitz submitted a plan that cut the number of
curb cuts in half. He said this Plan would be
substituted for the Concept Plan.
Ms. Lander said Mr. Berkowitz amended his Conceptual Site
Plan to show the reduction of the curb cuts; however, the
County had to review and approve the amendment.
PAGE 10
Ms. Lander said she brought the City Council's concerns
regarding the Water Retention Fees to Mr. Berkowitz.
Page 2
10/3/88
Mr. Berkowitz said he would pay the Drainage Fees,
reluctantly. He said a clause should be added stating
that the City would not increase the Retention Fees.
Ms. Lander said Mr. Berkowitz stated that the paragraph
regarding signage pertained to permitting signs as
opposed to placing signs. She said Item "G" would only
pertain to permits; therefore, it was not necessary to
change the contract.
V/M Stelzer said the City Council was opposing the
signage being placed on Phase II.
Mr. Berkowitz said this provision only related to what he
would be in a position to build after the property was
fully developed. He said this clause was stating that if
a permit could not be obtained to put a sign on each of
the Lots, he had the right prior to closing to withdraw
from the agreement.
Mayor Abramowitz asked if this was based on the current
City Code and Ms. Lander said this matter would be
discussed later in the contract.
Mr. Berkowitz said a clause had to be added that would
protect him in the event that the City took positions
prohibiting things that were originally covered.
Mayor Abramowitz said he did not want the City Council
placed in the position to illegally agree to something.
He said he did not want the City Council accused of spot
zoning or doing things that would violate the present
Codes.
Mr. Berkowitz said the contract was written in a manner
that would protect the City and himself from this
happening. He said the City would not be making any
promises to him; however, he was concerned with the
changes being made by the City after he bought the
property.
C/M Rohr asked if it was possible to add a clause that
would protect Mr. Berkowitz in the future.
C/M Hoffman said if there was a change by Ordinance, it
would affect the entire City and City Attorney Doody said
either the existing developments could be grandfathered
in or a time period could be mandated where the
developments would have to comply.
City Attorney Doody said the Building Department approved
of the language in the contract because it was current
with the Code; however, if the Code changed, the City
Council, would have to decide if the existing signs would
be grandfathered in or if a date would be given for
conformance to the Code.
C/M Hoffman said every sign would have to be
grandfathered in as opposed to this sign.
Mr. Berkowitz said he was concerned with the changes
taking place during the two years he was leasing the
property to the City.
C/M Bender said the change from "Governmental" to
"Municipal" may address this concern and City Attorney
Doody said this matter may not be addressed under this.
Page 3
10/3/88
TAPE 2
Mr. Berkowitz said a condition could be made retroactive
and if there were conditions with the development for
Phase II, the City may have to buy the property back.
Ms. Lander said regardless of the conditions, the
developer had the right to build on the property
immediately after purchasing it.
Mayor Abramowitz said because of the lease agreement, Mr.
Berkowitz's concerns were valid.
City Attorney Doody said this matter would have to be
reviewed to find a solution.
Mr. Berkowitz said he was listening to the City Council
discussing a change in the Sign Ordinance and he realized.
that he had an enormous vulnerability. He said he may
not be prepared to take this risk.
Mayor Abramowitz said he did not want to place the City
or City Council in a matter that may be illegal. He said
Mr. Berkowitz's concerns were valid; however, he was not
happy with the City being named in something illegal.
City Attorney Doody said the zoning, signage and platting
•,could have to be addressed to try and resolve Mr.
3erkowitz and the City Council's concerns.
Ms. Lander said "Mortgagee" would be deleted and "Lessee"
would be added. She said "Governmental" would be changed
to "Municipal" which would reference the City's
restrictions.
Ms. Lander said there were discussions regarding two new
conditions of precedent. She said one condition would be
a special exception for such things as the gas station
building permit. She said Mr. Berkowitz was very
concerned with this condition and the Attorneys have been
working to resolve these concerns.
Ms. Lander said a condition precedent to the purchasers
obligation would be that the purchaser shall have
obtained any special exception necessary to allow for the
building of a gas station. She said the first step in
getting the permit was a special exception and this could
be commenced immediately at the signing of the agreement.
Mayor Abramowitz asked if this would be legal and City
Attorney Doody said the City Council was not granting a
special exception, they were agreeing to the condition
precedent.
C/M Hoffman asked when the special exception would be
granted and Ms. Lander said prior to closing.
C/M Hoffman asked if this could be done legally since the
property was not closed and City Attorney Doody replied
that it could be done.
V/M Stelzer asked who would file the application and Ms.
Lander said the application would be joint and City
Attorney Doody said this would not be any different than
granting Commercial Zoning on the property.
The City Council agreed to this condition.
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Page 4
10/3/B$
Ms. Lander said the other condition precedent would apply
to both the seller and the purchaser and would pertain to
the change in the Land Use Map. She said this condition
would protect the City as well as the purchaser. She
said once the Land Use Map was changed concerns regarding
Commercial Development were not necessary.
PAGE 11
Ms. Lander said regarding Paragraph it Access to
Property, Mr. Berkowitz agreed to revise this paragraph
to conform to Phase I and Phase II closings.
PAGE 13
Ms. Lander said in Paragraph H, a second environmental
audit would be added. She said she expressed the City
Council's concerns in softening the language so that the
Impact Fees of $49,000.00 were not etched in stone. She
said Mr. Berkowitz was concerned with the estimate being
a good faith, well reason estimate that he could rely on.
After discussion, ALL AGREED to the fee being 10%.
Ms. Lander said, "which seller represents does not
prohibit such language", would be changed to, "which
seller represents currently does not prohibit such
language". She said this change would be restricted to
Phase I only.
PAGE 14
Ms. Lander said the financing matter would be addressed
by Mr. Berkowitz. She said the City Council was
concerned with the reference to the lending institutions
prime rate as opposed to a Federal Reserve prime rate
being calculated on a monthly basis.
Mr. Berkowitz said he offered the City Manager the
opportunity for the City to provide the Financial
Institute. He said from the beginning of negotiations,
he was named as the motivater for the financing. He said
the basic concept was that he would not make the first
nickel and would turn over the financing to the City at
the same cost.
Mr. Berkowitz said the set prime was of concern and he
did not care how it was done. He said there was no such
thing as a Federal Reserve prime rate. He said the prime
rate was usually sought by reviewing different banks and
whatever the rate would be providing it did not exceed
1%, the City would pay; however, if it did exceed 1% over
prime rate, he would pay the rate plus the exceeding
monies.
Mr. Berkowitz said he would use any bank the City choose
and the prime rate would be used in determining the
City's rent.
Mayor Abramowitz was concerned with the provision in the
contract of changing monthly rates. He said he would
prefer a fixed rate and Mr. Berkowitz said if a fixed
rate loan could be obtained for a two year period, he
would take that loan.
Page 5
10/3/88
Mayor Abramowitz said he would like to see a fixed rate
and Mr. Berkowitz said he would attempt to get a fixed
rate. Mr. Berkowitz asked the City Manager if he was
comfortable in getting a fixed rate for two years and
City Manager Kelly replied, yes.
V/M Stelzer said he was concerned with the City being
accused as lending or borrowing money because the
contract stated that the rates would be based on the
interest. He said it would be better to place an exact
amount for monthly rent in the contract.
Ms. Lander said this point was well taken and, if a fixed
rate could be obtained, it would be better.
C/M Hoffman asked if the Attorney felt that this
procedure would be taking on the mortgage and Ms. Lander
replied, no; however, she could see how it could be
perceived this way.
Mr. Berkowitz suggested that a one year agreement be made
as to the rental rates not fluctuating and V/M Stelzer
said the contract indicated that at the end of the lease
term there shall be a reconciliation.
V/M Stelzer said he would not like to see the rate
fluctuating every month and Mayor Abramowitz said Mr.
Berkowitz's suggestion would prevent this.
Mr. Berkowitz said he could not go to a bank without a
contract. He said a provision could be placed in the
contract stating the maximum terms of rent not to exceed
1% over prime rate. He said there was a provision in the
contract stating that the lease would be executed within
30 days which would enable him to tie down the actual
rent rate.
V/M Stelzer suggested the City decide to pay a certain
amount and Mayor Abramowitz said the clause "in trust"
should be eliminated.
Ms. Lander said once the lease and the rate was
determined the amount would be plugged into the lease and
City Attorney Doody said the contract could be changed;
however, there was no basis at this time to change it.
C/M Bender said the lease should contain the terms of the
rental costs as opposed to the contract and Mr. Berkowitz
said he would consult the bank for all of the prime rates
on the matter.
PAGE 15
Ms. Lander said the City
to who would receive the
Mr. Berkowitz agreed to
providing how far along
PAGE 16
Council wanted clarification as
proceeds from the insurance and
the City getting the proceeds
the lease was in existence.
Ms. Lander said the City was concerned with renegotiating
the lease after two years if they could not vacate and
Mr. Berkowitz was concerned with being attached to the
lending institution; therefore, it would allow an outside
date of 3 years from the date the lease commences to
vacate the property. She said the City Manager felt that
this would not cause a problem. She said the language in
the middle would be deleted.
Page 6 /
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10/3/88
PAGE 17
Ms. Lander said the property in Phase I would be Lots
6-15 and Phase II would be Lots 2-5 and the purchase
would be pro-rata and contiguous starting from the Public
Works property.
PAGE 18
Ms. Lander said the closing costs credit against the
purchase price would be applied to the Attorney Fees
charged by the lending institution. She said all of
these references applied to the loan only.
TAPE 3
PAGE 19
Ms. Lander said this Page would be discussed, and, if
needed, it would be added; if not, it would be deleted.
With no further business, Mayor Abramowitz ADJOURNED this
meeting at 10:50 A.M.
CAROL A. EVANS, CITY CLERK
"This public document was promulgated at a cost of $110.70 or $3.08 per
copy to inform the general public, public officers and employees of
recent opinions and considerations of the City Council of the City of
Tamarac."
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