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HomeMy WebLinkAbout08-24-1993 Special CITY COUNCIL SPECIAL MEETING August 24, 1993 A Special Meeting of the Cape Canaveral City Council was held on August 24 , 1993 , at the City Hall Annex, 111 Polk Avenue, Cape Canaveral, Florida. The meeting was called to order at 6: 00 P.M. by Mayor Salamone. ROLL CALL: Mayor Joy Salamone Present Mayor Pro Tem John Porter Present (Late) Councilmember Arthur Berger Present Councilmember Joan Calvert Present Councilmember Rocky Randels Present Acting City Manager/City Clerk Faith Miller Present City Attorney John Kancilia Present BUSINESS: 1. Discussion & Motion Re: Option contract for the purchase of two parcels of land (27 . 95 and 10. 00 acres) within the City of Cape Canaveral lying north of the existing wastewater treatment plant for the wastewater wetland project. Mr. John Kancilia, City Attorney, explained that the City Manager and himself had been negotiating with Cevesco, Inc. for the acquisition of two parcels of property on which the City would ultimately locate the wetlands portion of the sewer improvement project. He stated that Council had received a proposed option contract whereby the City would acquire for $25, 000 the option to purchase three parcels of property. He explained that the purpose of the public hearing was for Council to approve the purchase of Parcels A and B. Parcel A was described in Exhibit One of the option contract and contained 27 . 95 acres at an appraised purchase price of $55, 145 per acre. Parcel B was described in Exhibit Two of the option contract and contained 10. 00 acres of a larger tract of land; the larger tract contained 12 . 42 acres. Parcel C was described in Exhibit 3 of the option contract and that parcel consists of the remaining 2 .42 acres of the 12 . 42 acre tract. Mr. Kancilia explained that the purpose of the meeting was to approve specifically acquiring the option on Parcels A and B. Since the City had decided to acquire an additional amount of acreage in order to proceed with Option No. 3 as presented by the City's wetlands consultants, it was noticed for a meeting to be held on September 13 , 1993 . He stated that the option contract contained an option whereby the City could acquire the additional 2 . 42 acres provided that Council approved the acquisition of the additional acreage at the meeting scheduled for September 13th. Mr. Kancilia stated that the City in accordance with State Statues obtained two appraisals on all of the subject parcels. The 27 . 95 acre parcel was appraised as follows: Hanson Appraisal Service, Inc. - $2 , 300, 000 ($82 , 290 per acre) Robert W. Houha, MAI - 782 , 600 ($28, 000 per acre) Average Purchase Price per acre = $55, 145 Mr. Kancilia stated that Cevesco, Inc. had agreed to sell to the City the 27 . 95 acre parcel for the average price per acre. The price was contingent upon the City acquiring at least 10 acres of the 12 . 42 acre tract. The 12 . 42 acre parcel was appraised as follows: Hanson Appraisal Service, Inc. - $1, 200, 000 ($96, 618 per acre) Robert W. Houha, MAI - 968, 800 ($78, 003 per acre) Average Purchase Price per acre = $87,310 City of Cape Canaveral, Florida City Council Special Meeting August 24 , 1993 Page 2 Mr. Kancilia stated that Mr. Firkins of Cevesco had requested at a previous Council meeting that the City consider a purchase price of $92 , 310 per acre on the 12 . 42 acre parcel. He stated that through negotiations the City had arrived at a tentative agreement as to the 12 .42 acres for an average price per acre of $87, 310 with certain stipulations. The stipulations included that the City would pay any documentary stamp tax that would be due upon the recording of the deed, and pay the cost of the title insurance policy which would be written to insure the acreage. The City as a municipal entity should be exempt from the documentary stamp tax. Mrs. Calvert felt that Mr. Kancilia needed to advise Council on the cost of title insurance. Mr. Kancilia estimated that the insurance would cost approximately $15-20, 000. Mrs. Calvert questioned whether disapproval of the title insurance contingency would stop the sale. Mr. John Starling, attorney for Cevesco, was not authorized to release the contingency. He stated that Cevesco would agree to the average appraisal price with the understanding that the aforementioned contingencies be paid by the City. Mayor Salamone stated that the price had been reduced from $92 , 300 per acre to $87 , 310 per acre for the 27 . 95 acre parcel. Motion by Mr. Randels, seconded by Mayor Salamone to accept the option contract as written for acquiring Parcels A and B ($55, 145 per acre - Parcel A, $87 , 310 per acre - Parcel B) with the agreement that the City would pay the costs for title insurance and the documentary stamp tax. Mr. Kancilia stated that if the City was not exempt from the cost of documentary stamps it would amount to 7/10's of $2 . 6 million dollars ($16, 200) . Mrs. Calvert questioned what would occur if the City could not obtain clear title insurance and Mr. Kancilia advised that such a provision was included in the contract. Mr. Kancilia stated that entering into the option contract would require that the City place $25, 000 into escrow. If at the time set for exercising the option the City chose not to exercise such option, the City would pay Cevesco $25, 000. If the City chose to exercise the option, the option amount would apply toward the purchase price. Mr. Jack Moline requested a copy of the proposed option contract and was given same. Mr. Kancilia suggested an amendment to the motion to complete the blanks in paragraph 7 of the option contract to fill in the first blank with the word "seller" , second blank - "buyers" , and paragraph 8 - $87 , 310 - Parcel A; $55, 145 - Parcel B. Mr. Kancilia stated that the option contract also contemplated that the City would have the option to purchase Parcel C (2 . 42 riverfront acres) ; however, the City could not commit to the purchase at this time because of the public notice requirement. Mayor Salamone stated that when Mr. Randels made his motion he had stated "for the contract before us" which included the addendum as written. Motion by Mr. Porter, seconded by Mr. Randels to amend the motion to include the wording on paragraph 7 of the option contract to insert "seller" in the first blank and "buyer's" in the second blank. Mr. Kancilia stated that the seller had until August 30, 1993 , to accept the option contract and the City had until February 1, 1994, to notify on the option with 30 days to close on the property. Motion carried on the amendment with members voting as follows Mayor Salamone, For; Mayor Pro Tem Porter, For; Councilman Berger, For; Councilwoman Calvert, For; Councilman Randels, For. City of Cape Canaveral, Florida City Council Special Meeting August 24 , 1993 Page 3 Motion carried on the main motion with members voting as follows: Mayor Salamone, For; Mayor Pro Tem Porter, For; Councilman Berger, For; Councilwoman Calvert, For; Councilman Randels, For. There being no further business, the meeting adjourned at 6: 20 PAC Approved this 7th day of September , 1993 . ILIA - • J., C Salamone, MAYOR ATTEST: 41L_ Faith G. Miller, CITY CLERK