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HomeMy WebLinkAboutCity of Tamarac Resolution R-2016-028Temp. Reso. # 12760 March 9, 2016 Page 1 CITY OF TAMARAC, FLORIDA RESOLUTION NO. R-2016- q� y A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF TAMARAC, FLORIDA, AUTHORIZING AND DIRECTING, THE APPROPRIATE CITY OFFICIALS TO EXECUTE THE FIRST AMENDMENT TO CONTRACT FOR SALE AND PURCHASE, ATTACHED HERETO AS EXHIBIT "1", BY AND BETWEEN THE CITY OF TAMARAC, A MUNICIPAL CORPORATION AND AD1 GROUP LLC TO BE EFFECTIVE NUNC PRO TUNC TO MARCH 8, 2016; AUTHORIZING THE CITY MANAGER TO APPROVE MINOR NON -MONETARY AMENDMENTS TO THE CONTRACT FOR SALE AND PURCHASE; PROVIDING FOR CONFLICTS; PROVIDING FOR SEVERABILITY; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, The City of Tamarac approved, authorized and directed appropriate city officials to execute a Contract for Sale and Purchase (Contract) dated November 10, 2015 between the City of Tamarac (Seller) and AD1 Group LLC (Buyer) via Resolution R-2015-118, and WHEREAS, The Contract for Sale and Purchase has a specific period known as the Inspection Period (one hundred and twenty days following the effective date of the agreement) whereby the Buyer shall have the right to enter upon the Property to make all inspections of the condition of the Property which it may deem necessary, including, but not limited to, soil borings, percolation tests, engineering, environmental and topographical studies, inspections of zoning and the availability of utilities, all of which inspections shall be undertaken at Buyer's sole cost and expense; and Temp. Reso. # 12760 March 9, 2016 Page 2 WHEREAS, the Buyer is currently engaged in conducting additional inspections of the Property in accordance with Section 4 of the Contract; and WHEREAS, the Buyer has requested an extension of the one hundred twenty (120) day Inspection Period for an additional sixty (60) days providing for a total of a one hundred eighty (180) day Inspection Period to allow for ongoing inspections of the Property; and WHEREAS, On March 8, 2016, the City Manager formally agreed to the request for an extension of the Inspection Period from one hundred and twenty (120) days to one hundred and eighty (180) days as described in Exhibit "2" (attached hereto, incorporated herein, and made a specific part thereof), subject to the City Commission ratification of same, by virtue of the First Amendment to the Contract for Sale and Purchase; and WHEREAS, the Director of Community Development and the Director of Financial Services recommend that the appropriate city officials be directed to execute the First Amendment to Contract for Sale and Purchase by and between the City of Tamarac and AD1 Group LLC, extending the Inspection Period from 120 days to 180 days; and WHEREAS, The City Commission of the City of Tamarac, Florida, deems it to be in the best interest of the citizens and residents of the City of Tamarac to authorize and r- E Temp. Reso. # 12760 March 9, 2016 Page 3 direct the appropriate city officials to execute the First Amendment to Contract for Sale and Purchase for the extension of the Inspection Period from 120 days to 180 days, attached hereto and incorporated herein as Exhibit 1" to be effective nunc pro tunc March 8, 2016. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF TAMARAC, FLORIDA: SECTION 1: The foregoing "WHEREAS' clauses are HEREBY ratified and confirmed as being true and correct and are hereby made a specific part of this Resolution upon adoption hereof and all exhibits referenced and attached hereto are incorporated herein and made a specific part of this resolution. SECTION 2: That the appropriate city officials are hereby authorized and directed, pursuant to this resolution, to execute the First Amendment to Contract for Sale and Purchase by and between the City of Tamarac and AD1 Group LLC attached hereto and incorporated herein as Exhibit 1" to be effective nunc pro tunc to March 8, 2016. SECTION 3: The City Manager is hereby authorized to amend the Contract for Sale and Purchase, from time to time, but only for minor non -monetary changes or modifications consistent with the tenor of the original approval by this City Commission. Temp. Reso. # 12760 March 9, 2016 Page 4 SECTION 4: All resolutions or parts of resolutions in conflict herewith are hereby repealed to the extent of such conflict. SECTION 5: If any clause, section or other part or application of this Resolution is held by any court of competent jurisdiction to be unconstitutional or invalid, in part or application, it shall not affect the validity of the remaining portions or applications of this Resolution. SECTION 6: This Resolution shall become effective immediately upon its passage and adoption. PASSED, ADOPTED AND APPROVED this -�- 3 day of A44L.+ ,2016. ATTEST: r, PATRICIA4ICMC I HEREBY CERTIFY that I have approved this RESOLUTION as to form. SAMt1EL S. GOREN, CITY ATTORNEY �., ► % , I 1 F�10 HARY D. MAYOR RECORD OF'COMMISSION VOTE: MAYOR DRESSLER_ FIST 1 COMM BUS ELL UJeX,' DIST 2 COMM GOMEZ DIST 3 'VICE MAYOR6LASSER/_4, -/ DIST 4 COMM PLACK O,c'ir� C OFFICE OF THE CITY MANAGER March 8, 2016 AD1 Group Attn: Gisela Levy, VP of Acquisitions and RE Operations 2028 Harrison Street, Suite 202 Hollywood, Florida 33020 Michael C. Cemech CITY MANAGER RE: First Amendment to Purchase and Sale Agreement/Extension of Inspection Period VIA: ELECTRONIC MAIL AND REGULAR MAIL Dear Gisela; I am in receipt of your electronic mail on behalf of AD1 Group LLC, dated March 7, 2016, formally requesting an extension of the 120 day "Inspection Period" by 60 additional days. Your request for an extension of the "Inspection Period" from 120 days to 180 days is hereby granted, subject to City Commission ratification of same, by virtue of a First Amendment to the Purchase and Sale Agreement, which is scheduled for consideration at the March 23, 2016 Commission meeting. I look forward to our continued partnership as we work together in identifying the most optima; placement of all improvements on the properties. Best Regards, Michael Cernech, City Manager cc: Diane Phillips, Assistant City Manager Maxine Calloway, Director of Community Development Mark Mason, Director of Financial Services Jack Strain, Director of Public Services 7525 N.W. 88th Avenue I Tamarac, Flo ic! 33321-2401 I P: 954.597.35101 F: 954.597.3520 EQUAL OPPORTUNITY EMPLOYER FIRST AMENDMENT TO CONTRACT FOR SALE AND PURCHASE This First Amendment to that certain Contract for Sale and Purchase ("Contract") dated November 1 oth, 2015 is entered into between the City of Tamarac, a Florida municipal corporation (the "Seller") and AD 1 Group, LLC , a Florida limited liability company (the "Buyer"). WHEREAS, the Buyer is currently engaged in conducting inspections of the Property in accordance with Section 4 of the Contract; and WHEREAS, the Buyer has requested and the Seller has agreed to an extension of the one hundred twenty (120) day Inspection Period for an additional sixty (60) days providing for a total of a one hundred eighty (180) day Inspection Period. NOW Therefore, in consideration of the foregoing premises, mutual covenants and conditions herein contained, the parties hereto agree as follows: The parties agree to the following: 1. The Whereas clauses are hereby ratified and confirmed. 2. Section 3b of the Contract is amended to provide as follows: b. Second Deposit. Upon expiration of the Inspection Period provided below, Buyer shall pay to the Escrow Agent a nonrefundable Second Deposit in the amount of ONE HUNDRED THOUSAND ($100,000.00) DOLLARS (the "Second Deposit"). The failure to tender the Second Deposit prior to the termination of the sty One Hundred Eighty (140- 110) day Inspection Period shall result in the Seller having the right to terminate this Contract. No later than five (5) business days subsequent to the expiration of the Inspection Period, the Initial Deposit and the Second Deposit shall be paid to the Seller and be deemed nonrefundable (Subject to Alternate Purchase Price Payment ("APPP") as provided below) subject only to Seller's ability to deliver title and the Property as provided herein and shall be credited to the Purchase Price at Closing. Notwithstanding the foregoing, the Initial Deposit and Second Deposit shall be refunded to Buyer in the event the Buyer elects to pursue the Alternate Purchase Price Payment Option as set forth in Section 5 herein. 3. Section 4 entitled "Inspection Period", specially subsection "a" is amended as follows: a. The Buyer shall have a period of One u„„dr-e T«'o"+" One Hundred Eighty (-l20 180 days from the Effective Date of this Contract, or the date that Seller "approves" (as provided herein) this Contract, whichever date is later (the "Inspection Period") to determine, in its sole discretion, whether the Property is suitable for the Buyer's intended use as a Marriott flagged Fairfield Inn consisting of a maximum of 140 hotel rooms with or without an ancillary retail use. Buyer shall obtain the franchise approval within this period. Buyer shall have the right to enter upon the Property to make all inspections of the condition of the Property which it may deem necessary, including, but not limited to, soil borings, percolation tests, engineering, 100119549.1 2704-9499232 ) environmental and topographical studies, inspections of zoning and the availability of utilities, all of which inspections shall be undertaken at Buyer's sole cost and expense. After completing its inspection of the Property, Buyer shall, at its sole cost and expense, repair and replace any damage it has caused to the Property and shall indemnify and hold the Seller harmless from any and all claims, damages, suits, actions arising from Buyer's inspection of the Property. Prior to the expiration of the One u ndr-ea Twenty One Hundred Eighty (4- 180) day Inspection Period, Buyer shall provide written Notice of its decision to accept the Property in its "AS IS" condition, or its decision that the Property is unsuitable for its intended purpose and it is terminating the Contract for Purchase and Sale. In the event of any inconsistencies between this First Amendment and the Contract, the provisions contained in this First Amendment shall prevail. In any other respects, the Contract remains unchanged. j SELLER: CITY OF TAMARAC, a Florida "k C Title: cA 4 r-r r Signed on March 7 *4, 2016 APP 0 ED AS I-O L.E L FORM m , Prd OFFICE OF HE CI Y ORNEY DATED: "- BUYE: AD 1 Gn By U 1, Title: &Ac` (k)k; T Signed on March 1.6 , 2016 {00119549.1 2704-94992321 2