Loading...
HomeMy WebLinkAbout1988-10-03 - City Commission Workshop Meeting MinutesO� T AMI r 7525 NORTHWEST $$TH AVENUE • TAMARAC, FLORIDA 33321-2401 n TELEPHONE (305) 722-5900 F( P Fi 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 3 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. 1 1 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 / 1 1 1 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." f1 1 Page 7