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Magnolia Street Miscl (Howell Park) 05/25/99 16:58 CHARMAR RESTRURANTS 2475805 N0.301 D01 BU"GIEE # KING Charmar Restaurants P.O.Box 60847.JadmmyMe.FL 32235 Voice 9044M545 Fax 904495-SM Fwt To: Maureen ling From: Clark Schaffer Fasc 247-5805 Pages;: 3 P%Mw Dates 05/25/99 rte: City Commission Statement 05/24/99 CC: ❑Urgent O For Review ❑Please Comment 0 Please Reply O Please nec rale My wife said that you called and requested that I fax the statement from last night......please feel free to cal me at work if you have any questions.......Clark Schaffer II I 4 05'25:'99 16:58 CHARMAR RESTAURANTS � 2475805 N0.301 1?02 Howell Park—May 24, 1999 Thank you for the opportunity to address the City Commission. At the May 10'h Commission meeting, I had brought up the issue of the recent swap of city owned property adjacent to Howell Park. Commissioner's discussions quickly turned to the issue of a ten-year-old ordinance,which approved the transaction, and the procedures that led to the closure of the property approved by Ordinance 95-89-38. Mayor Shaughnessy took issue with the fact that the Commission did not have an opportunity to reverse the ordinance and not complete the transaction. She also reminded Mr. Jensen, the City's attorney,that the Commission functioned as a Board of Directors, and therefore the attorney had a fiduciary responsibility to apprise the Commission of real estate transactions prior to closing. I will use this government to business analogy to plead my case. The issue of government protocol is not my concern tonight,the re-purchase of lot 305 Saltair is. If this Commission serves as Board of Directors for the City of Atlantic Beach,all residents of the City are customers, and owners of real estate in the City are the equivalence of stockholders. That makes me a customer and stockholder of this city. Prior to becoming a customer and stockholder, I implemented due care with respect to my current homestead. I noticed that on the plat lot 305 was separate from Howell Park, however it was on the tax rolls, as property owned by the City of Atlantic Beach. The home that I was about to purchase was adjacent to lot 305 and was represented by the seller as Howell Park. I called the City to inquire as to the status oflot 305. I was informed by the City Manager,the Director of zoning and Planning,and the Director of Parks that lot 305 was considerer)part of the park and would not be sold or developed. These were representations made by Officers and Agents of the City, and I used this information to make the decision to purchase the house on lot 306. The Officers and Agents of the City did not tell a mistruth, because they did not know the truth about lot 305. The truth was that there was a ten-year old ordinance approving lot 305 to be transferred. They did however make misstatements that led to my decision. The misstatements were due to poor information reporting within the City. As a businessman I would expect the Officers of my company to know which property my business owned and which property was encumbered by ordinance. 3A CITY OF ATLANTIC BEACH CITY COMMISSION STAFF REPORT AGENDA ITEM: Lot 305 of the Saltair Subdivision DATE: May 17, 1999 SUBMITTED BY: David E. Thompson, City Manager BACKGROUND: At the May 10, 1999 City Commission Meeting, Mr. Schaffer recounted some historical background on the land swap that was recently consummated between the City of Atlantic Beach and William Hixon. This land exchange was approved by ordinance in 1989, but due to title problems,the exchange was not completed until recently in 1999. The heart of the problem appears to be the fact that the property owners near Lot 305 contacted City Officials in the past to gain assurances that the lot would never be developed. City officials, many of whom were not in Atlantic Beach in 1989,told property owners that there were no plans to sell any part of Howell Park. A June 25, 1997 letter to Ms. Jennifer Chalot stated this. Since that time, lot 305 has been swapped for lot 316, and lot 305 now belongs to William Hixon. Mr. Hixon has the lot for sale. The neighbors have petitioned for the City of Atlantic Beach to purchase lot 305 from Mr. Hixon for$50,000. There appear to be at least three (3) major factors of concern for the City Commission. The first is the consideration of the property purchase for its value in preserving or enhancing Howell Park. The lot is contiguous to Howell Park, and it has value as a part of the park. Does the City wish to acquire this property to keep as a part of the park? If so,how much is it worth to the City? The second major factor is the concern for the incorrect information provided to citizens by the City Staff. There is nothing to indicate that City Staff knowingly provided incorrect information to anyone. Staff members were unaware of the land deal that was approved by ordinance in 1989 until questions emerged in 1998. The third factor is a funding source. If the City Commission wishes to purchase the property, then funding must be identified for this purpose. At the present time, there are no restricted funds available for this acquisition. Without some creative financing, this purchase would need to be funded out of general fund reserves. Staff has requested an appraisal of the property, but it will not be completed for at least another week. RECOMMENDATION: None ATTACHMENT: Petition from local residents Ordinance 95-89-38 Letter from William Hixon dated May 8, 1999 Letter from Ms. Jennifer Chalot dated May 7, 1999 Letter to Ms. Josette Deloach(Watson Realty)from James Jarboe dated September 1, 1998 FAX from William Hixon to James Jarboe dated August 31, 1998 Letter to Ms. Chalot from City Manager James Jarboe dated June 25, 1997 Letter from Ms. Jennifer Chalot dated June 17, 1997 REVIEWED BY CITY MANAGER: ,/-�&z IV AGENDA ITEM NUMBER: Matter of We, the undersigned do hereby request that the City of Atlantic Beach re- purchase park property that was recently traded. On January 22, 1999, the City traded lot 305 of the Saltair subdivision for lot 316 in accordance with a ten-year- old ordinance no. 95-89-38. When the ordinance was written, it was determined that since lot 316 was adjacent to the back entrance of Howell Park, it was more desirable at that time. It took ten years for the "swap" to close due to title problems on lot 316. Over the years, many people have purchased homes on Magnolia Street that face Howell Park. Prior to purchasing homes, many prospects called the city officials out of due diligence to confirm the park's status. The resounding answer was that the park and lot 305 where owned by the City of Atlantic Beach, and would always be preserved as part of Howell Park. Magnolia Street is a narrow one way street with many children at play. It simply cannot afford another house on the east side of the street. Re-Purchasing lot 305 is a matter of integrity. The integrity of the park to keep this valuable natural resource that includes Cyprus trees, Bull Pines, turtles, and other wildlife. The integrity of the City ' of Atlan c Beach,,whose employees and officials have repeatedly told prospective and existing homeowners, that the "City of Atlantic Beach acquires park land, we do not sell or trade our parks." Even after the "swap" transpired, the city officials were unaware of the transaction. How can a city exchange property without the knowledge of the current city officials? Correct this mistake now. Re-purchase lot 305, Saltair and restore the integrity of Howell Park and the City of Atlantic Beach. 01 5-0 (250 . 1 0 -S Matter of I We, the undersigned do hereby request that the City of Atlantic Beach re- purchase park property that was recently traded. On January 22, 1999, the City traded lot 305 of the Saltair subdivision for lot 316 in accordance with a ten-year- old ordinance no. 95-89-38. When the ordinance was written, it was determined that since lot 316 was adjacent to the back entrance of Howell Park, it was more desirable at that time. It took ten years for the "swap" to close due to title problems on lot 316. Over the years, many people have purchased homes on Magnolia Street that face Howell Park. Prior to purchasing homes, many prospects called the city officials out of due diligence to confirm the park's status. The resounding answer was that the park and lot 305 where owned by the City of Atlantic Beach, and would always be preserved as part of Howell Park. Magnolia Street is a narrow one way street with many children at play. It simply cannot afford another house on the east side of the street. Re-Purchasing lot 305 is a matter of integrity. The integrity of the park to keep this valuable natural resource that includes Cyprus trees, Bull Pines, turtles, and other wildlife. The integrity of the City of Atlantic Beach, whose employees and officials have repeatedly told prospective and existing homeowners, that the "City of Atlantic Beach acquires park land, we do not sell or trade our parks." Even after the "swap" transpired, the city officials were unaware of the transaction. How can a city exchange property without the knowledge of the current city officials? Correct this mistake now. Re-purchase lot 305, Saltair and restore the integrity of Howell Park and the City of Atlantic Beach. - J �� f k) �►l� 114 C 1 g 1 Il�(R.. (� 3 7 y � 1 1 � I I .. ..1._`1 i � `d,), sas9.1 'h' , tt•' ,''s, /'t'by 4� �° oh •o). „ . 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L 82� 11 ZIZI 1 4 4\T 844 2 t ____ ..----1- '"1_ _ - �•_v:.,d i . r • a 21 Y, 9• ac 1.e+t+' t >t 'llll 61 1 1 I g + I t • s o c, ,a cz ci t2 6 ,t ft I L, t E. di tE qL a OS L• 1� ' C. 17. It{ at ORDINANCE NO.95-89-38 AN ORDINANCE AUTHORIZING THE EXCHANGE OF PROPERTIES BETWEEN WILLIAM S. HIXON AND THE CITY OF ATLANTIC BEACH; PROVIDING AND EFFECTIVE DATE WHEREAS, The City of Atlantic Beach acquired a number of lots in Saltair Subdivision for the creation of a passive park named Howell Park, and WHEREAS, William S. Hixon of Atlantic Beach owns Lot 316 Saltair which said lot fronts immediately upon the entrance to said park, and WHEREAS, The City of Atlantic Beach owns Lot 305 Saltair which said lot fronts on Magnolia Street immediately to the rear of Lot 316, and WHEREAS, Lot 316 being closer to the entrance of Howell Park and therefore more likely to be utilized rather than Lot 305, and WHEREAS, William S. Hixon has indicated a willingness to trade Lot 316 for the City's Lot 305, NOW, THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF ATLANTIC BEACH, FLORIDA: Section 1. The City Commission hereby authorizes the transfer of Lot 305 Saltair, section 3, plat book 10 page 16 current public records of Duval County Florida to William S. Hixon 310 Pine Street, Atlantic Beach in exchange for Lot 316 Saltair, section 3, plat book 10 page 16 current public records Duval County Florida. Section 2. This ordinance shall take effect upon its adoption. Passed by the City Commission on first read' January 23 1989 Passed by the City Commission on ec n nd finaleading February13 1989. i i m I. Gulli r , ay r, Presiding Officer Appas to Form and Correctness: G� Claude L. Mullis, City At orney (SEAL) Wati�",) z Maureen King, City ClerY 170453 0000 - USD3 HIXON - JUST 21,138^ **000531-02** SEC 16 TWN 2S RNG 29E WILLIAM S CLASS PUSE = 0000 .11 ACRES 1201 LOWER STATE RD LAND 21,138 BK 5982 PG 2154 DATE 07/85 511,000 NORTH WALES, PA 19454 IMPRVMT 429.84 NOV 4% DEFER 7.5994 GGUSD3 160.64 16-2S-29E SALTAIR SEC 3 LOT 316 BETH W 0/R BK 5982-2154 434.32 DEC 3% ASSESS 21,138 6.3600 SCHLST 134.44 438.79 JAN 2X TAXABLE 21,138 2.7600 SCHLLC 58.34 443.27 FEB 1% .0470 FLNVGD .99 447.75 MAR 0% 3.1721 ATL. B 67.05 .4820 STJRVM 10.19 .7617 VOTED 16.10 TOTAL 447.75 170454 0000 USD3 HIXON JUST 108,000 **000531-03** SEC 16 TWN 2S RNG 29E WILLIAM S CLASS PUSE = 0100 11 ACRES 310 PINE ST LAND 21,138 BK 4758 PG 666 DATE 11/78 5100 ATLANTIC BEACH, FL 32233-4016 IMPRVMT 86,862 2,196.19 NOV 4% DEFER 7.5994 GGUSD3 820.74 16-2S-29E SALTAIR SEC 3 LOT 317 BETH W O/R BKS 4530-924,475 2,219.07 DEC 3% ASSESS 108,000 6.3600 SCHLST 686.88 8-666 2,241.95 JAN 2% TAXABLE 108,000 2.7600 SCHLLC 298.08 2,264.82 FEB 1Y. .0470 FLNVGD 5.08 2,287.70 MAR 0% 3.1721 ATL. B 342.59 .4820 STJRVM 52.06 .7617 VOTED 82.27 TOTAL 2,287.70 - - - - - - - - - - - - _ _ _ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - _ - - - - _-_- - - - _ - - - xxanncxl__n4s-� - ----- 1170448 0000 USD3 CITY OF ATLANTIC BEACH JUST 72,000 - **000530-03** S SEC 16 TWN 2S RNG 29E 716 OCEAN BV CLASS P PUSE = 8200 2.40 ACRES P 0 BOX 25 LAND 72,000 BBK 4153 PG 636 DATE 05/76 51,000 ATLANTIC BEACH, FL 32233-5428 IMPRVMT .00 NOV 4% DEFER 7.5994 GGUSD3 110-16 16-2S-29E 2.400 SALTAIR SEC 3 LOTS 295 TO 305,308 TO 3 .00 DEC 3% ASSESS 72,000 6.3600 SCHLST 15 .00 JAN 2% 917City of 72,000 2.7600 SCHLLC .00 FEB 1% TAXABLE .0470 FLNVGD .00 MAR 0% 3.1721 ATL. B .4820 STJRVM .7617 VOTED _ _ _ _ _ _ _ _ _ TOTAL 170448 0100 USD3 RAUSCH - _ _ _ _ JUST- 89,463 **000530-04** SEC 16 TWN 2S RNG 29E STEVEN W CLASS PUSE = 0100 .11 ACRES 301 MAGNOLIA ST LAND 21,138 BK 8359 PG 2377 DATE 05/96 530,000 ATLANTIC BEACH, FL 32233-4027 IMPRVMT 68,325 1,261.50 NOV 4% DEFER 2,427 7.5994 GGUSD3 471.44 168900 06-2S-29E SALTAIR SEC 3 LOT 307 1,274.64 DEC 3% ASSESS 87,036 6.3600 SCHLST 394.55 1,287.78 JAN 2% 601GENERAL 25,000 2.7600 SCHLLC 171.22 1,300.92 FEB 1% TAXABLE 62,036 .0470 FLNVGD 2.92 1,314.06 MAR 0% 3.1721 ATL. B 196.78 .4820 STJRVM 29.90 .7617 VOTED 47.25 TOTAL1,31406 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - _ FROM Wm S Hixon, MAI FAX NO. : 2157939309 May. 10 1999 07:52AM P1/1 May 8, 1999 Mr. David Thompson, City Manager City of Atlantic Beach 800 Seminole Road Atlantic Beach, FL 32233 VIA FAX: 247-5805 RE: Offer to sell Lot 305, Saltaire Section 3 Dear Mr. Thompson: As you know the City of Atlantic Beach recently completed a trade with us, which was started back in 1989. As a result of this transaction Beth and I now own the referenced vacant lot which is bordered on two sides by Howell Park. Since the completion of that trade our financial circumstances have changed and we are considering selling Lot 305, Both Mr. Grey Whaley and Clark Schaffer have offered us$50,000 for Lot 305. Mr. Whaley has since withdrawn his offer and we have not yet committed to Mr. Schaffer, I believe that Mr. Schaffer would like to buy the lot to preserve his natural frontage on the park. He has informed me that he has no plans to build on the lot but would like to own the lot rather than see someone build between his house and the park property. I would be happy to see the City own the lot and thus prevent any more homes from being constructed along the park's borders. Owning this lot would even out the park's boundary between Magnolia and Pine Streets. Please place this offer on the next available City Commission meeting and let me know if the City has any interest in purchasing this lot. If you have any questions as our offer{Tease feel free to contact me at the following phone number. Bill Hixon 215-793-9308 Sincerely, William S. Hixon cc: Clark Schaffer Jennifer A. Chalot 322 Magnolia Street Atlantic Beach, FL 32233 (904) 249-8522 jennifer.chalot@dso.duval.kl2.fl.us u May 7, 1999 The Honorable Suzanne Shaughnessy, Mayor City of Atlantic Beach, Florida 800 Seminole Road Atlantic Beach, FL 32233 Dear Mayor Shaughnessy: Attached please find a letter I received from Jim Jarboe in 1997 in response a letter I wrote to (then) Mayor Lyman Fletcher about development of Howell Park property. I shared this written response with all of my neighbors in the 300 block of Magnolia Street, and we felt great relief at the time it was received. Now,it seems unbelievable that I am having to write to another city official about the same events that have already prompted numerous letters, phone calls and, according to Mr. Jarboe, should never have caused us concern again. My neighbors and I live on the one-way block of Magnolia Street which faces the west side of Howell Park. We learned recently that private property nearby has been"swapped"for city owned property that is a part of Howell Park and which faces my home at#322. This is another piece of Howell Park that my neighbors and I have been assured repeatedly would never be developed - yet now it is for sale due to this recent city action. We feel betrayed and angry. Before purchasing our homes in this part of Saltair, every owner in the 300 block got assurances from various current city officials that there were no plans to develop Howell Park property. We chose to live in this area, paying more for our homes in most cases, because of its private, unique character, offering the beautiful, quiet woods with little traffic, and, we believed freedom from threat of development. Since I purchased my home in 1992, two homes have been built opposite my property on land I was told would NEVER be developed. Now, I'm sure my neighbors and I are facing a third and inevitably more home construction and lost woodland in our neighborhood. Everything that prompted us to move here will be lost, and our property values and quality of life will be greatly diminished. The Honorable Suzanne Shaughnessy, Mayor Page 2, Continued Please remember that Howell Park belongs to the citizens of Atlantic Beach, and all deals to sell or "swap"this property should be approved by its owners by vote. Many of us who voted for you and the current members of the City Council to represent us believed you care about the fate of Howell Park and the preservation of our quality of life in Atlantic Beach. You can restore our trust and faith in your leadership by acting to purchase this piece of Howell Park property back for the city, to be preserved "in perpetuity" as we were promised, before it can be sold to a private party for development. Then,you can openly involve all citizens in discussions of future development of public property by holding well-publicized public forums and conducting a vote by all citizens. Thank you for"listening" and giving consideration to this request. I will share this letter with my neighbors, who I hope will join me in attending the next City Council Meeting. Perhaps soon, you will have had an opportunity to discuss this issue with the proper staff members and will have begun action toward a favorable resolution of this issue. If not, I hope you will provide my neighbors and me with a written response concerning what actions the city WILL take to compensate us for the certain reduction in our property values and loss of current quality of life that will occur as the city continues to make future"behind-the-scenes land swap deals"for Howell Park property. Sincerely, (Ja a Jennifer A. Chalot CC: Magnolia Street and Palm Avenue Neighbors ATTACHMENT(1) CITY OF . ria+rtr'c Ve d 800 SEMINOLE ROAD ATLANTIC BEACH,FLORIDA 32233-5445 TELEPHONE(904)247-5800 FAX(904)247-5805 SUNCOM 852-5800 June 25, 1997 Jennifer A' Chalot 322 Magnolia Street Atlantic Beach, FL 32233 Dear Mrs. Chalot, Your letter of June 17th to Mayor Fletcher was forwarded to me for investigation into the ownership and disposition of the lots on the east side of Magnolia Street. I have found that the information given to you in 1992 was correct in that the lots directly across the street from you are a part of Howell Park and cannot be developed. There are only two lots on the east side of Magnolia Street which are not incorporated into Howell Park. These are the two immediately north of Seaspray Avenue. These two lots have never been a part of Howell Park. The two lots are privately owned and zoned for Single-family homes. As you are aware, the comer lot has already been developed. The lot immediately north of it may be developed as a Single-family residence. I concur with your concems about the narrow roadway and the higher volume of traffic that would result if more development were to occur along Magnolia Street, however, as mentioned above, only one lot remains available for development. That lot is privately owned and the owner has a right to develop the lot only as a Single-family home. Since no plans exist for the City to sell any part of Howell Park, I believe that you and your neighbors can expect to continue to enjoy the qualities of one of our quietest city parks without concern for more development and the associated problems of traffic and parking. K you have any other questions or concerns, please do not hesitate to write to me at City Hall or to call me at 247-5800. cerely, Ja s Jarbo , City Manager s I 6% 4� 1 � Jennifer A. Chalot 322 Magnolia Street Telephone (904) 249-8522 Atlantic Beach, FL 32233-4028 Office (904) 348-7804 Fax (904) 348-7885 E-mail: chalotj@mail.firn.edu June 17, 1997 Lyman T. Fletcher, Mayor City of Atlantic Beach 800 Seminole Road Atlantic Beach, FL 32233 Dear Mayor Fletcher: I am writing to express concern about what appears to be the future development of property on the east side of the 300 block of Magnolia Street in the Saltair subdivision. Prior to purchasing my present home in 1992, 1 consulted two realtors and telephoned City Hall to check on the ownership and any planned development of the wooded property across the street. I was referred to a staff member in City Planning, who told me that the property was owned by the city, and was to be "held in perpetuity" as part of Howell Park. The person I spoke to at the time also remarked that, because of drainage problems during times of heavy rain, the property would not be suitable for future development, even if it were not city-owned. Both realtors I consulted gave me the same information. Recently, a new home was built at the corner of Seaspray and Magnolia, on the east side of our street. The construction of this home caused significant noise and disruption in our neighborhood for several months. Now it appears another lot has been plotted and marked-off for development, adjoining this house, on property I was told would remain wooded "in perpetuity". Mayor Fletcher, please take a drive down our block, and you will find that we live on a very narrow, one-way street with many children, joggers and heavy pedestrian traffic. Parking is already so limited that one neighbor has paved-over his front yard to accommodate a second car, and others are clearing parking areas out of the wooded land across the street, which will be gone if development continues. Lyman Fletcher, Mayor June 17, 1997 Page 2 The 300 block of Magnolia Street is simply not wide enough to accommodate homes on both sides, and the traffic that would result from further development. I know my neighbors share my upset at the thought of more building occurring on our block. We purchased property on what we consider to be a unique area of Saltair in Atlantic Beach. We love our neighborhood and care deeply about the quiet, lovely quality of life here. The wooded land with it's towering pines which faces our homes, not only supports wildlife and affords us great privacy, but it has caused our property values to increase steadily over the years. In addition to taking a drive down our street, I would appreciate your sharing my letter with the appropriate staff for consideration. Please let me know if I was misinformed about the property on the east side our street being city-owned, and whether the city plans to continue to grant permits for building on our block. If this is the case, please let me know how many lots are available for future development and if there are plans to widen the street in this event? If you can provide a written response, I will be happy to share whatever information I can gather with my neighbors. Sincerely, ennifer Chalot, C: J I ry\ (!�fo2&c CITY OF r��i°�c�tic f�eac( - ��ivrida 800 SEMINOLE ROAD ATLANTIC BEACH,FLORIDA 32233-5445 TELEPHONE(904)247-5800 FAX (904)247-5805 t SUNCOM 852-5800 September 1, 1998 Ms.Josette DeLoach Watson Realty Corporation 1117 Atlantic Boulevard Neptune Beach, florida 32266-2515 Dear Ms. DeLoach: This is in response to your fax dated August 31, 1998 and a copy of a letter from William S. Hixon which was attached (copies attached for your ready reference). I was unable to reach you by phone, but left a message on your voice mail. Mr. Hixon indicates that it is his desire to trade Lot 305 (which the City owns) for Lot 316 (which he owns). Lot 305 faces Magnolia Street and Lot 316 faces the entrance to Howell Park next to Mr. Hixon's house at 310 Pine Street. I have discussed this matter with Alan Jensen, City Attorney, and the situation remains the same as it has in the past. Mr. Jensen indicates there is not a clear title to Mr. Hixon's lot. As soon as Mr. Hixon can provide documentation indicating there is a clear title to the property under discussion we will be happy to place this matter on the Commission agenda for consideration. If I can be of fiu-ther assistance please do not hesitate to contact me. Sincerely, ames R. Jarboe City Manager JRJ:tI Copy to: Mayor and City Commission Alan Jensen, City Attorney Maureen King, City Clerk JANET S. PALMER, G i WCE PAESIOEUT .RREAL T CORP., REALTORS ! `•" 1117 ATLANTIC BOULEVARD. REFT URE BEACH, RCRIDA 32266.2515•(90=)249•38W Fi+X: is-957 FAX NUMBER 1-904-241.9 DATE: TO: RE: i amu, o7/S' '943 NO. OF PAGES ( Including cover sheet) Jact son►•itte•Orange P.rk•0—mond Eeach•7oUnd•Q::zn'o•Fvnanelra•Ponte\'ed:a Beach•Jecl:sonvltte Ceaeh•PortOranoe Voystone Hei:ha•Gz:nervil:e•St __sage•!:t%v:n,:as Seach• Kissimmee•St.f.!er�•s,Georg-.a•Allamonte Sar;ngs E:Ike t.!ay •Lcn,.oed•U.a}ttan�d•Winter Park fluu-Jl-W nun 1L:le rr1 1,WHr1MA&WHALrICLU !till 11v. a_a.+ •_ August 31, 1998 Mr.James Jatboe City Manager City of Atlantic Beach 800 Seminole Road Ationtic Beach,FL 32233 Re: Saltaire Lot Trade with City of Atlantic Beach Dear Mr.James Jarboe: Several years ago f asked the City of Atlantic Beach to trade Lot 305(which the City owns)for Lot 316(which Beth$I own). Subsequently the City agreed to the trade. After a number of exchanges with Mr.Alan Jensen,then the City Attorney, i furnished him with the necessary documentation so that we could complete the transaction. The transaction was never complebad. 1 understand that this was so long ago that I need to request the Made again. I stili own Lot 316_ This lot fates the entrance to Howell Park next to my house at 310 Pine Street. The street does not extend to this lot and I believe that the park sign and exercise trail equipment are still located In front of the lot Any improvement on Lot 316 would create a significant visual encroachment into the park The City of Atlantic Beach owns Lot 305,which faces Magnolia Street,directly behind my lot. The City's lot is presently part of the park but does not lie near any of the trails. It still seems to me that this trade would be good for the integrity of the park and would keep any future development away atom the trails and park entrance. 1 would appreciate your placing this request on the councirs agenda at your earliest convenience. Please inform Josette DoloaCh as to the date so that she can attend the meeting and speak in my behalf if necessary. Jim,thank you for your attention tD this matter. Sincerely William S. Hixon 05:25{99 16:58 CHARMPP. RESTAURANTS -> 2475805 N0.301 003 After I began my research into the matter, I discussed my concerns with my neighbors and was surprised to find out that this misinformation has been circulating for years, and that they too had purchased property bordering Howell Park based on the misrepresentation. One neighbor, Jennifer Chalot has a letter from the former City Manager, Mr. Jarboe, confirming that the City owned lot 305,and there were no plans to sell or make available lot 305 for development. I submitted a copy of this letter to the Commission at the May I CP meeting. My concern is not why they swapped lot 305 without the current Commission's approval,it is with information management, and whir they did not know that the ordinance to swap the property existed. Information that was crucial to my purchase decision. The City of Atlantic Beach has recently acquired Dutton Island and is pursuing the acquisition of the Centex Land jointly with the City of Jacksonville. If the City of Atlantic Beach cannot keep track of 118 of an acre of land that it owns,why should this City be granted the guardianship of hundreds of acres? I had recently read in the Beaches Leader that the original estimate of the acquisition cost of over a quarter of a million dollars for the City of Atlantic Beach to secure the Centex Land would be reduced significantly and may even have no cost associated except for future maintenance. This information would lead a prudent person to assume that some of these funds could be used to acquire lot 305 for a mere$50,000 and restore the integrity of Howell Park, and the City of Atlantic Beach. Now I am a stockholder, and customer of the City of Atlantic Beach. As a representative of the stockholders that live on Magnolia Street and Palm Avenue, we urge the City to re-purchase lot 305. It is imperative that the Commission approve the motion to re-purchase lot 305 Saltair tonight and begin the procedures to secure the property expediently. We have chosen this forum to pursue the City to do what is right. Officers and Agents of this City have made misrepresentations to its stockholders. The City has the opportunity and wherewithal to correct this grave mistake tonight. You are the Board of Directors, run this City like a business and honor your commitments and those of your Officers and Agents. Thank you for your time. 3A CITY OF ATLANTIC BEACH CITY COMMISSION STAFF REPORT AGENDA ITEM: Lot 305 of the Saltair Subdivision DATE: May 17, 1999 SUBMITTED BY: David E. Thompson, City Manager BACKGROUND: At the May 10, 1999 City Commission Meeting, Mr. Schaffer recounted some historical background on the land swap that was recently consummated between the City of Atlantic Beach and William Hixon. This land exchange was approved by ordinance in 1989, but due to title problems,the exchange was not completed until recently in 1999. The heart of the problem appears to be the fact that the property owners near Lot 305 contacted City Officials in the past to gain assurances that the lot would never be developed. City officials, many of whom were not in Atlantic Beach in 1989,told property owners that there were no plans to sell any part of Howell Park. A June 25, 1997 letter to Ms. Jennifer Chalot stated this. Since that time, lot 305 has been swapped for lot 316, and lot 305 now belongs to William Hixon. Mr. Hixon has the lot for sale. The neighbors have petitioned for the City of Atlantic Beach to purchase lot 305 from Mr. Hixon for $50,000. There appear to be at least three (3)major factors of concern for the City Commission. The first is the consideration of the property purchase for its value in preserving or enhancing Howell Park. The lot is contiguous to Howell Park, and it has value as a part of the park. Does the City wish to acquire this property to keep as a part of the park? If so, how much is it worth to the City? The second major factor is the concern for the incorrect information provided to citizens by the City Staff. There is nothing to indicate that City Staff knowingly provided incorrect information to anyone. Staff members were unaware of the land deal that was approved by ordinance in 1989 until questions emerged in 1998. CITY OF ATLANTIC BEACH CITY COMMISSION STAFF REPORT AGENDA ITEM: Magnolia Street Lot 305 DATE: June 8, 1999 SUBMITTED BY: David E. Thompson, City Manager BACKGROUND: Please see attached staff report from May 17,1999. At the May 17, 1999 City Commission Meeting, staff was directed to proceed with the appraisal of the property in question, and to identify an appropriate funding source for the purchase of the property. Please see the attached appraisal which estimates the value of the property at$38,000. In discussion with the City Finance Director, it was pointed out that the midyear budget adjustment identified approximately $60,000 of the existing year's budget that is now uncommitted. This funding may be reallocated by the City Commission to purchase the Magnolia Street property if the Commission so chooses. Relative to negotiating on the purchase price,there is little room for significant negotiations. The property owner already has an offer from Mr. Schaffer for$50,000. This does not allow the City much negotiating room with Mr. Hixon. At this point,the question appears to be whether or not the City Commission wants to purchase the property for $50,000. The value of the property to the City Commission may be worth more than the appraised value based on its location adjacent to Howell Park and the previous information provided to citizens about its development. Staff does not have a consensus opinion on this issue. However, it is the opinion of the City Manager that the City's integrity is very important to the City Commission, City staff, and the citizens of Atlantic Beach. The erroneous information provided by staff members was not intentional, but it still misled citizens who made a comprehensive, good faith effort to obtain information on the property in question. In the opinion of the City Manager,the City should purchase the property and make it a part of Howell Park to assure that it is not developed in the future. RECOMMENDATION: I recommend that the City authorize the purchase of Lot 305 Magnolia Street for a price not to exceed $50,000. The source of funding for this purchase will be taken from funding identified in the midyear budget adjustment. ATTACHMENT: Staff report from May 17, 1999 Land Appraisal Report REVIEWED BY CITY MANAGER: AGENDA ITEM NUMBER: CITY OF ATLANTIC BEACH CITY COMMISSION STAFF REPORT AGENDA ITEM: Lot 305 of the Saltair Subdivision DATE: May 17, 1999 SUBMITTED BY: David E. Thompson, City Manager BACKGROUND: At the May 10, 1999 City Commission Meeting, Mr. Schaffer recounted some historical background on the land swap that was recently consummated between the City of Atlantic Beach and William Hixon. This land exchange was approved by ordinance in 1989, but due to title problems,the exchange was not completed until recently in 1999. The heart of the problem appears to be the fact that the property owners near Lot 305 contacted City Officials in the past to gain assurances that the lot would never be developed. City officials, many of whom were not in Atlantic Beach in 1989, told property owners that there were no plans to sell any part of Howell Park. A June 25, 1997 letter to Ms. Jennifer Chalot stated this. Since that time, lot 305 has been swapped for lot 316, and lot 305 now belongs to William Hixon. Mr. Hixon has the lot for sale. The neighbors have petitioned for the City of Atlantic Beach to purchase lot 305 from Mr. Hixon for$50,000. There appear to be at least three (3)major factors of concern for the City Commission. The first is the consideration of the property purchase for its value in preserving or enhancing Howell Park. The lot is contiguous to Howell Park, and it has value as a part of the park. Does the City wish to acquire this property to keep as a part of the park? If so,how much is it worth to the City? The second major factor is the concern for the incorrect information provided to citizens by the City Staff. There is nothing to indicate that City Staff knowingly provided incorrect information to anyone. Staff members were unaware of the land deal that was approved by ordinance in 1989 until questions emerged in 1998. The third factor is a funding source. If the City Commission wishes to purchase the property,then funding must be identified for this purpose. At the present time, there are no restricted funds available for this acquisition. Without some creative financing, this purchase would need to be funded out of general fund reserves. Staff has requested an appraisal of the property, but it will not be completed for at least another week. RECOMMENDATION: None ATTACHMENT: Petition from local residents Ordinance 95-89-38 Letter from William Hixon dated May 8, 1999 Letter from Ms. Jennifer Chalot dated May 7, 1999 Letter to Ms. Josette Deloach(Watson Realty) from James Jarboe dated September 1, 1998 FAX from William Hixon to James Jarboe dated August 31, 1998 Letter to Ms. Chalot from City Manager James Jarboe dated June 25, 1997 Letter from Ms. Jennifer Chalot dated June 17, 1997 REVIEWED BY CITY MANAGER: AGENDA ITEM NUMBER: LAND APPRAISAL REPORT ....r.,.......... .._,.... . . . File No. Land-AB991 Borrower Client-City o f Atlantic Beach Census Tract 13 9.0 3 Map Reference 559/D u v a l Property Address Vacant site on Magnolia Street with no assigned address at this time City Atlantic Beach County Duval state Florida Zip Code 32233 Legal Description 16-2S-29E Lot 305, Saltair Sec . 3, Plat Book 10 , P . 16, Duval CPR' s Sale Price$ N/A Date of Sale A D:6/9 9 Loan Term N/A yrs. Property Rights Appraised [X]Fee ❑Leasehold ❑De Minimis PU Actual Real Estate Taxes$ E s ' $6 5 9 Cyr) Loan charges to be paid by seller$ N/A Other sales concessions N/A Lender/Client City of Atlantic Beach Address P.O. Box 25, Atlantic Beach , F1 occupant Vacant Site Appraiser Kala L . Heald Instructions to Appraiser Appraise f o r market value of vacant property located on Magnolia Street in Duval County, Atlantic Beach, F1 Location ❑Urban Suburban ❑Rural Good Avg. Fair Poor Built Up ®Over 75% ❑25%to 75% ❑Under 25% Employment Stability ❑X ❑ ❑ ❑ Growth Rate ❑Fully Dev. ❑Rapid Steady ❑Slow Convenience to Employment 71 ❑ ❑ ❑ Property Values Increasing ❑Stable ❑Declining Convenience to Shopping 00 ❑ ❑ ❑ Demand/Supply ❑Shortage LX]in Balance ❑oversupply Convenience to Schools 1XI ❑ ❑ ❑ Marketing Time ❑Under 3 Mos. X❑4-6 Mos. ❑Over 6 Mos. Adequacy of Public Transportation ❑X ❑ ❑ ❑ Present Land Use 8 0%1 Family 5%2-4 Family 2%Apts. 3%Condo 5%Commercial Recreational Facilities 111 ❑ ❑ ❑ -0-%Industrial 5%Vacant _% Adequacy of Utilities ❑X ❑ ❑ ❑ Change in Present Land Use ❑Not Likely ❑Likely(*) ®Taking Place(*) Property Compatibility M ❑ ❑ ❑ (*)From Vacant To Residential Protection from Detrimental Conditions ® ❑ [:1 ❑ . Predominant Occupancy ®owner ❑Tenant _ 2 %Vacant Police and Fire Protection [T] ❑ ❑ ❑ Single Family Price Range $ 50,000 to$ 1 M + Predominant Value$ 120 ,000 General Appearance of Properties ® ❑ ❑ ❑ Single Family Age New yrs.to 60+ yrs. Predominant Age 10-30 yrs. Appeal to Market [XI ❑ ❑ ❑ Comments including those factors,favorable or unfavorable,affecting marketability(e.g.public parks,schools,view,noise):T h e s u b j e c t s i t e located approximately 1/2 mile North of Atlantic Blvd. , l+- mile West of the Ocean , 1 block East of Seminole Road, and South/adjacent to Howell Park . A lack of vacant sites in the beaches area causes marketability to be good, however, close to the ocean and subject to frequent storms . Dimensions 50 ' X 10 0 ' /Subject to survey = 5,0 0 0 Sq.Ft or Acres ❑Corner Lot Zoning classification ARS-2/Residential Single Family Present Improvements ❑do [::]do not conform to zoning regulations Highestand best use ®Present use ❑Other(specify) Public Other(Describe) OFF SITE IMPROVEMENTS Topo L ower t h an s t r e e t 1 eve 1 Elec. ❑X Street Access ®Public ❑Private Size Typical for the area Gas ❑ SurfaceAsphalt ShapeRectan ular/See attached plat Water FU Maintenance [U Public ❑Private View Residential /Park San.Sewer M ❑Storm Sewer ❑Curb/Gutter DrainageP o o r/Low/Possible muck/ In F Z ❑ Underground Elect&Tel.1 ❑SidewalkM Street Lights Is the property located In a HUD Identified Special Flood Hazard Area? ❑No 0 Yes Comments(favorable or unfavorable including any apparent adverse easements,encroachments,or other adverse conditions): The subject i s avacant interior site adjacent to Howell Park . The property is low and wet in places with possible muck & appears to have several environmentally protected cypress trees on the site; recommend an environmental or engineer study. It appears the site is in a flood zone; subject to survey. The undersigned has recited three recent sales of properties most similar and proximate to subject and has considered these in the market analysis.The description includes a dollar adjustment reflecting market reaction to those items of significant variation between the subject and comparable properties.If a significant item in the comparable property is superior to or more favorable than the subject property,a minus(-)adjustment is made thus reducing the indicated value of subject;if a significant item in the comparable is inferior to or less favorable than the subject property,a plus(+)adjustment is made thus increasing the indicated value of the subject ITEM SUBJECT PROPERTY COMPARABLE NO.1 COMPARABLE NO.2 COMPARABLE NO.3 Address #ot 305/Magnolia St ' L'306/309 Magnolia L'682/121&123 Pine L'318/Pine & Seas' Atlantic Beach , Fl . Atlantic Beach, F1 Atlantic Beach, F1 Atlantic Beach, Fl wo Proximi to Subject Next Door South 1 Street East & S' 1 block SE 35 000 :.;:.;:.;:.;>:.;:.>:.;:.;:.;:.;:.;:.;:::::.:::::::::::::. ...................................... Sales Price $ N/A $ 36,000 ............................. $ 38,90 Price $ N/A $ Data source CPR/City/Own CPR' s/Owner/Ins e' CPR's/Ins ection CPR' s/Inspection Date of Sale and DESCRIPTION DESCRIPTION + —$Ad'ust DESCRIPTION 1+(—)$Adjust DESCRIPTION + —$Adjust Time Adjustment AD: 6/99 Close: 7/97 +5,000 Closes 3/98 +2,000 Close: 1/97 +5,000 Location Atlantic Bch \Atlanti B' Atlantic B' Atlantic B' IN'et te/View 50 ' X 100 ' 50 'X 100 ' 50 ' X 100 ' 50 ' X 100 ' Vacant Present) PresentlyVacant Residential Improved Improved Residential ' Next to Park Interior -0- Interior -0- Corner -0- Low Hi h & Dr -3,000 Hi h & Dr -3,000 High & Dr -3,000 ales or Financing None None None None oncessions Indicated Indicated Indicated Indicated + — 2 000 + — $ 1 ,000 + 2,000 Ad'. Dial $ dicated Value Subject t $ 37 000 f 38,000 0 80 $ :.:................................. 37 ,900 Comments on Market Data: Sale # 4 next to park indicates a downward adjustment for location but owner stated seclusion was a preference, therefore no downward adjustment applied . The time adjustment for the 1997 sales a combination a time adjustment for 1997 and inflation for 1998. Comments and ConditionsofAppraisal: Sale # 1 located next door and sale # 2 the most recent sale, given full weight in the final estimated value of the subject property. Estimated value rounded in this case. This report adheres to the State of_Florida ' s _USPAP standards with on departures . The attached "Limiting Conditions" a lied as dictated by the attached report . Final Reconciliation: The Cost Approach and the Income Approach not considered a 1 i cabl e i n the valuation of vacant land causing the Market Approach to be the only indicator of value for the sub ect property in this case and given full weight in the value estimated stated herein . I ESTI AT HE MARKET VALUE,AS DEFINED, F SUBJECT PROPERTY AS OF June 6, _ 19 9 9_ to be$ 3 8,0 0 0 KA HEALD/RZ #0 00404 State Certified General REA Did ❑Did Not Physically Inspect Property Appraiser(s) Review Appraiser(if applicable) Kala Heald Form LND -- 'TOTAL 2000'appraisal software by a la mode,inc. -- 1-800-ALAMODE LAND APPRAISAL REPORT File No. - Borrower /client-city o f Atlantic Beach Census Tract 139 .03 Map Reference 559/Duval • Property Address Vacant site on Magnolia Street with no assigned address at this time City Atlantic Beach county Duval _ state Florida Zip code 32233 Legal Description 16-2S-29E Lot 305, Salt-air Sec . 3—Plat Book 10 Pg 16 Duval CPR' s Sale Price$ N/A Date of Sale A D:6/9 9 Loan Term N/A _ yrs. Property Rights Appraised 0 Fee Leasehold ❑De Minimis PU Actual Real Estate Taxes$ E s ' $659 (yr) Loan charges to be paid by seller$ N/A Other sales concessions N/A Lender/Client City of Atlantic Beach Address P .O. Box 25 Atlantic Beach , Fl Occupant Vacant Site Appraiser K a l a L . Heald Instructions to Appraiser _ A p p r a i s e f o r market value of vacant property located on Magnolia Street in Duval County, Atlantic Beach, Fl Location ❑Urban ®Suburban ❑Rural Good Avg. Fair Poor Built Up ©Over 75% ❑25%to 75% ❑Under 25% Employment Stability [XI ❑ ❑ ❑ Growth Rate ❑Fully Dev. ❑Rapid ®Steady ❑Slow Convenience to Employment ® ❑ ❑ ❑ Property Values ®Increasing ❑Stable ❑Declining Convenience to Shopping ® ❑ ❑ ❑ Demand/Supply ❑Shortage ®In Balance ❑Oversupply Convenience to Schools ❑ ❑ ❑ Marketing Time ❑Under 3 Mos. ®4-6 Mos. ❑Over 6 Mos. Adequacy of Public Transportation ❑X ❑ ❑ ❑ • Present Land Use 8 0%1 Family 5%2-4 Family 2%Apts. 3%Condo 5%Commercial Recreational Facilities M ❑ ❑ ❑ • -0-%Industrial 5%Vacant _% _ Adequacy of Utilities M ❑ ❑ ❑ Change in Present Land Use ❑Not Likely ❑Likely(*) [X]Taking Place(*) Property Compatibility 1XI ❑ ❑ ❑ (*)From Vacant_ -- To Residential Protection from Detrimental Conditions M ❑ ❑ ❑ • Predominant Occupancy LX]Owner ❑Tenant _ 2 %Vacant Police and Fire Protection [71 ❑ ❑ ❑ Single Family Price Range $ 50,000 to$ 1 M + Predominant Value$ 12 0 ,0 0 0 General Appearance of Properties ❑ ❑ ❑ Single Family Age New yrs.to 60+ yrs. Predominant Age 10-30 yrs. Appeal to Market [XI E] ❑ ❑ Comments including those factors,favorable or unfavorable,affecting marketability(e.g.public parks,schools,view,noise):T h e s u b j e c t s i t e located _ approximately 1/2 mile North of Atlantic Blvd. 1±_mile West of the Ocean, 1 block East of Seminole Road and South/adjacent to Howell Park__ A lack of vacant sites in the beaches area causes marketability to be good, however, close to the ocean and subject to frequent storms . Dimensions 50 ' X 100' /Subject to survey_—____- _ ___5,0 0 0 Sq.Ft or Acres ❑Corner Lot Zoning classification ARS-2/Residential Single Family Present Improvements ❑do ❑do not conform to zoning regulations Highest and best use ®Present use ❑Other(specify) --- Public Other(Describe) OFF SITE IMPROVEMENTS Topo Lower than street level _ Elec. ❑X Street Access [X]Public ❑Private Size :Tip i c a 1 for the area Gas ❑ SurfaceAspha1 t Shape Rectangular/See attached plat _ Water [x Maintenance ©Public ❑Private View Residential/Park San.Sewer M— ❑Storm Sewer ❑Curb/Gutter DrainageP o o r/Low/Possible muck/ In F Z ❑ underground Elect&Tel. [::]Sidewalk ®Street lights Is the property located In a HUD Identified Special Flood Hazard Area? ❑No yes Comments(favorable or unfavorable Including any apparent adverse easements,encroachments,or other adverse conditions): The sub,j e c t is a vacant interior site adjacent to Howell Park . The property is low and wet in places with possible _muck and appears to have environmental )-y_protected cyrpess tress on the site; recommend an _ an environment or engineer study . It appears the site is in a flood Leone ; subject to survey. The undersigned has recited three recent sales of properties most similar and proximate to subject and has considered these in the market analysis.The description includes a dollar adjustment reflecting market reaction to those items of significant variation between the subject and comparable properties.If a significant item in the comparable property is superior to or more favorable than the subject property,a minus(-)adjustment is made thus reducing the indicated value of subject;if a significant item in the comparable is inferior to or less favorable than the subject property,a plus(+)adjustment is made thus increasing the indicated value of the subject ITEM I SUBJECT PROPERTY _ COMPARABLE NO.1 COMPARABLE NO._2 — COMPARABLE NO.3 Address Lot 305/Magnolia St' Lot 351/399 Poins ' Lot 95/Seminole Atlantic Beach, Fl ., Atlantic Beach, Fl _Atlantic Beach , F1 _ 2 Streets East 1 Street West/N' Proximity to Subject�_— Sales Price $ N/A $ 31 ,000 $ .. .... $ -- Price s N/A $ _ $ $ -- Data Source CPR/City/Own ---CPR' s/Owner/Inspe'__ CPR's/Ins ection – -- -- — -- --- Date of Sale and DESCRIPTION DESCRIPTION $Adjust_ DESCRIPTION + –)$Adjus _ DESCRIPTION +(–)$Adjust Time Adjustment AD: 6/99 Close : 3/97_ +5,000 Close: 3/97 +5.000 Location Atlantic Bch Atlantic BAtlantic B' SiteNiew 50 ' X 10 0 ' 50 ' X 100 80 - X 82' -0- Vacant 0-Vacant Presently Vacant Residential _Improved_________- _Residential Next to Park Next toPark -0- Creek -0- Low _ Low Low &_Dr_y -3 ,000 Sales or Financing None None None Concessions Indicated Indicated �_ _ In_dicated doo + — + 5 000 $ 2, :$ otal $ Net Ad Indicated Value `: of Subject $ 36,000 $ 36,000 . 6,000 $ Comments on Market Data: Sale # 3 verified by_owner-:__stated site_low_with muck,---cost to cure to be able_ to build was $3000 . Sale in 1997 and a market indicated time adjustment applied . Sale # 5 on Seminole Road across the street from City_Ha_ll__cou1 not verify, therefore , given no weight . Comments and Conditions of Appraisal: I n the appraisal of vacant sites, sales over 6 months considered typical The 2 sales above added to clear_1y-def-ine-_the -market_and_to support the estimated market val-ue_ lAppraiser(s) ofthe subject site locatedon MagnoliaStreet adjacent to Howell Park The sales considered — -were limited to N'of Atlantic, South of Palm_ and WestofPoinset.tia to insure accuracy__-____Final Reconciliation: The Cost Approach andtheIncome Approach notconsidered applicable in the aluation ofvacant land causin the Market Approach to bethe only indicator of vvalue for thes b ect pro-�erty in this case and_g_ivenfull weight in the oalueestimated stated herein .1ES I THE MARKET VALUE,AS DEFIN SUBJECT PROPERTY AS OF June 6, 19-- 99 to be$ 38,000L . HEALD/RZ #000404 State CertifiedGeneralREAL-X]Did ❑DidNotPhysicalyInspectProperty —121 Review Appraiser(if applicable) Kala Heald Form LND -- 'TOTAL 2000'appraisal software by a la mode,inc. -- 1-800-ALAMODE Location Map ° K ZONE F II 11TH RM3 10T H ,t i_ STHE 9TH Ny ZONE X �= ZONE X ST RI PLAZA 9 V"_ F Z CLIPPER DRIVE LANE �`�� � '��� � x k 8TH ST n Footbridge s : r ZONE X "th r" VIKINGSr': 7TH Cj X m Z i SFR �� 6TH tgti� " ', �� ,�' ZON 5T H HFt M ° SMgti � tqNO q IT ti 4TH Z WW ROAD NF A¢WW p y � WW 3RD R AD D Q t/1 (V rW Q R vW¢W 2� agRK 9�FNU 4O 9�P�E` 2ND ND 1ST AVENUE ST URDN ANT q, BOULEVARD Io Address: Lot 305 , Magnolia Street i - 1 Location 0 7. 'ell y �. i ♦ 3 V y/4. 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' " ,11 1 1 11- A LAA COMPARABLE PHOTO PAGE 1 3 Borrower Client-City of Atlantic Beach File No. Land-AB991 PropertyAddress Vacant site on Magnolia Street with no- assigned address at this time city Atlantic Beach county Duval state Florida zl code 32233 Lender City of Atlantic Beach Comparable 1 Address L'306/309 M_agnol i a Prox.to Subject Next Door South Sales Price 36,000 Location \A t l a n t i B' Site/View 50 ' X 100 ' "i iAlf 1,4 s � Com arable 2 Address L' 682/121&123 Pine Prox,to Sub'ect 1 Street East & S' Sales Price 38,900 Location Atlantic B' Site/view 50 ' X 100 ' 1 IIPIpII�I II��� 11 71 Com arable 3 Address L'318/Pine & Seas ' Prox.to Sub'ect l block SE Sales Price 3r, 0 0 0 's Location Atlantic 13' — Site/View 50 ' X 100 n Form P01 -- 'TOTAL 2000'aoaraisal software by a la mode,inc. 1-800-ALAMODE 40W ANON L/ J COMPARABLE PHOTO PAGE 1 3 Borrower Client-City of Atlantic Beach File No. Land-AB991 PropertyAddress Vacant site on Magnolia Street with no assi ned address at this time cftv Atlantic Beach county Duval state Florida zt Code 32233 Lender City of Atlantic Beach V"' ► Comparable _ ,. .. • ' �, � Address Lot 351/399 Poins ' o Prox,to subect 2 Streets East " Sales Price 31 ,000 Location Atlantic B Site/View 5 0 ' X 100 ' 11" IP Com arable r Address Lot 95/Seminole Prox.toSub'ect 1 Street West/N' Sales Price 34,000 Location A t 1 antic B' . , SiteNiew 80 X 82 A. Comparable o Address Prox.to Sub'ect Sales Price _ Location Site/View Form P01 'TOTAL 2000'appraisal software by a la mode,inc. 1-800-ALAMODE DEFINITION OF MARKET VALUE: The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller, each acting prudently, knowledgeably and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: (1) buyer and seller are typically motivated; (2)both parties are well informed or well advised, and each acting in what he considers his own best interest; (3)a reasonable time is allowed for exposure in the open market; (4) payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and (5) the price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions" granted by anyone associated with the sale. *Adjustments to the comparables must be made for special or creative financing or sales concessions. No adjustments are necessary for those costs which are normally paid by sellers as a result of tradition or law in a market area; these costs are readily identifiable since the seller pays these costs in virtually all sales transactions. Special or creative financing adjustments can be made to the comparable property by comparisons to financing terms offered by a third party institutional lender that is not already involved in the property or transaction. Any adjustment should not be calculated on a mechanical dollar for dollar cost of the financing or concession but the dollar amount of any adjustment should approximate the market's reaction to the financing or concessions based on the appraiser's judgement STATEMENT OF LIMITING CONDITIONS AND APPRAISER'S CERTIFICATION CONTINGENT AND LIMITING CONDITIONS: The appraiser's certification that appears in the appraisal report is subject to the following conditions: 1. The appraiser will not be responsible for matters of a legal nature that affect either the property being appraised or the title to it The appraiser assumes that the title is good and marketable and, therefore, will not render any opinions about the title. The property is appraised on the basis of it being under responsible ownership. 2. The appraiser has provided a sketch in the appraisal report to show approximate dimensions of the improvements and the sketch is included only to assist the reader of the report in visualizing the property and understanding the appraiser's determination of its size. 3. The appraiser has examined the available flood maps that are provided by the Federal Emergency Management Agency (or other data sources) and has noted in the appraisal report whether the subject site is located in an identified Special Flood Hazard Area. Because the appraiser is not a surveyor, he or she makes no guarantees,express or implied,regarding this determination. 4. The appraiser will not give testimony or appear in court because he or she made an appraisal of the property in question, unless specific arrangements to do so have been made beforehand. 5. The appraiser has estimated the value of the land in the cost approach at its highest and best use and the improvements at their contributory value. These separate valuations of the land and improvements must not be used in conjunction with any other appraisal and are invalid if they are so used. 6. The appraiser has noted in the appraisal report any adverse conditions (such as, needed repairs, depreciation, the presence of hazardous wastes, toxic substances, etc.) observed during the inspection of the subject property or that he or she became aware of during the normal research involved in performing the appraisal. Unless otherwise stated in the appraisal report, the appraiser has no knowledge of any hidden or unapparent conditions of the property or adverse environmental conditions (including the presence of hazardous wastes, toxic substances, etc.) that would make the property more or less valuable, and has assumed that there are no such conditions and makes no guarantees or warranties, express or implied, regarding the condition of the property. The appraiser will not be responsible for any such conditions that do exist or for any engineering or testing that might be required to discover whether such conditions exist Because the appraiser is not an expert in the field of environmental hazards, the appraisal report must not be considered as an environmental assessment of the property. 7. The appraiser obtained the information, estimates, and opinions that were expressed in the appraisal report from sources that he or she considers to be reliable and believes them to be true and correct The appraiser does not assume responsibility for the accuracy of such items that were furnished by other parties. 8. The appraiser will not disclose the contents of the appraisal report except as provided for in the Uniform Standards of Professional Appraisal Practice. 9. The appraiser has based his or her appraisal report and valuation conclusion for an appraisal that is subject to satisfactory completion, repairs, or alterations on the assumption that completion of the improvements will be performed in a workmanlike manner. 10. The appraiser must provide his or her prior written consent before the lender/client specified in the appraisal report can distribute the appraisal report (including conclusions about the property value, the appraiser's identity and professional designations, and references to any professional appraisal organizations or the firm with which the appraiser is associated) to anyone other than the borrower; the mortgagee or its successors and assigns; the mortgage insurer; consultants; professional appraisal organizations; any state or federally approved financial institution; or any department, agency, or instrumentality of the United States or any state or the District of Columbia; except that the lender/client may distribute the property description section of the report only to data collection or reporting service(s) without having to obtain the appraiser's prior written consent The appraiser's written consent and approval must also be obtained before the appraisal can be conveyed by anyone to the public through advertising, public relations, news, sales, or other media. Freddie Mac Form 439 6-93 Page 1 of 2 Fannie Mae Form 1004B 6-93 Form ACR -- 'TOTAL 2000'appraisal software by a la mode,inc. -- 1-800-ALAMODE *AWX, APPRAISER'S CERTIFICATION: The Appraiser certifies and agrees that 1. 1 have researched the subject market area and have selected a minimum of three recent sales of properties most similar and proximate to the subject property for consideration in the sales comparison analysis and have made a dollar adjustment when appropriate to reflect the market reaction to those items of significant variation. If a significant item in a comparable property is superior to, or more favorable than, the subject property, 1 have made a negative adjustment to reduce the adjusted sales price of the comparable and, if a significant item in a comparable property is inferior to, or less favorable than the subject property, I have made a positive adjustment to increase the adjusted sales price of the comparable. 2. 1 have taken into consideration the factors that have an impact on value in my development of the estimate of market value in the appraisal report I have not knowingly withheld any significant information from the appraisal report and I believe, to the best of my knowledge, that all statements and information in the appraisal report are true and correct 3. 1 stated in the appraisal report only my own personal, unbiased, and professional analysis, opinions, and conclusions, which are subject only to the contingent and limiting conditions specified in this form. 4. 1 have no present or prospective interest in the property that is the subject to this report, and I have no present or prospective personal interest or bias with respect to the participants in the transaction. I did not base, either partially or completely, my analysis and/or the estimate of market value in the appraisal report on the race, color, religion, sex, handicap, familial status, or national origin of either the prospective owners or occupants of the subject property or of the present owners or occupants of the properties in the vicinity of the subject property. 5. 1 have no present or contemplated future interest in the subject property, and neither my current or future employment nor my compensation for performing this appraisal is contingent on the appraised value of the property. 6. 1 was not required to report a predetermined value or direction in value that favors the cause of the client or any related party,the amount of the value estimate, the attainment of a specific result, or the occurrence of a subsequent event in order to receive my compensation and/or employment for performing the appraisal. I did not base the appraisal report on a requested minimum valuation,a specific valuation,or the need to approve a specific mortgage loan. 7. 1 performed this appraisal in conformity with the Uniform Standards of Professional Appraisal Practice that were adopted and promulgated by the Appraisal Standards Board of The Appraisal Foundation and that were in place as of the effective date of this appraisal,with the exception of the departure provision of those Standards,which does not apply. I acknowledge that an estimate of a reasonable time for exposure in the open market is a condition in the definition of market value and the estimate I developed is consistent with the marketing time noted in the neighborhood section of this report, unless I have otherwise stated in the reconciliation section. 8. 1 have personally inspected the interior and exterior areas of the subject property and the exterior of all properties listed as comparables in the appraisal report I further certify that I have noted any apparent or known adverse conditions in the subject improvements, on the subject site, or on any site within the immediate vicinity of the subject property of which I am aware and have made adjustments for these adverse conditions in my analysis of the property value to the extent that I had market evidence to support them. I have also commented about the effect of the adverse conditions on the marketability of the subject property. 9. 1 personally prepared all conclusions and opinions about the real estate that were set forth in the appraisal report If I relied on significant professional assistance from any individual or individuals in the performance of the appraisal or the preparation of the appraisal report, I have named such individual(s) and disclosed the specific tasks performed by them in the reconciliation section of this appraisal report I certify that any individual so named is qualified to perform the tasks. I have not authorized anyone to make a change to any item in the report;therefore, if an unauthorized change is made to the appraisal report, I will take no responsibility for it SUPERVISORY APPRAISER'S CERTIFICATION: If a supervisory appraiser signed the appraisal report, he or she certifies and agrees that I directly supervise the appraiser who prepared the appraisal report, have reviewed the appraisal report, agree with the statements and conclusions of the appraiser, agree to be bound by the appraiser's certifications numbered 4 through 7 above,and am taking full responsibility for the appraisal and the appraisal report ADDRESS OF PROPERTY APPRAISED: Vacant site on Magnolia Street• no address _ APPRAISER: SUPERVISORY APPRAISER (only if required): Signature: Signature: _ Name: Kala L . Heald Name: Date Signed: June 6, 1999 Date Signed: State Certification#: R Z 0000404/State Certified State Certification#: or state License#: General Appraiser or state License#: �. state: Florida _ State: �— Expiraton Date of Certification or License: 11-30-2000 Expiration Date of Certification or License: X❑Did ❑ Did Not Inspect Property Kala Heald Freddie Mac Form 439 6-93 Page 2 of 2 Fannie Mae Form 10048 6-93 Form ACR -- 'TOTAL 2000•appraisal software by a la mode,inc. 1-800-ALAMODE A \KALA L. HEALD HEALD & ASSOCIATES REAL ESTATE APPRAISAL SERVICES P.O. BOX 330-974 ATLANTIC BEACH, FLORIDA 32233 (904) 246-9735 QUALIFICATIONS PROFESSIONAL: 1) State Certified General REA#0000404 from 10/89. 2) Licensed/Registered Florida Real Estate Broker. 3) National Association of Master Appraisers: Designations include, MSA/Senior Appraiser, MFLA/Land, MRA/Residential#4917 EXPERIENCE: 1) Full time Real Estate Sales Agent from 1982-1983 / Sales 2) Part time Real Estate Appraiser 1983-1985 /Broker 3) Full time Real Estate Appraiser 1985-1990 4) State of Florida Ad Valorem Tax Dept. 1990-1991 /Real Estate Appraiser II 5) Full Time Real Estate Appraiser 1991-Present 6) Qualified Mobile Home Appraiser 7) Qualified as Expert Witness in Duval County Circuit Court 8) Appraised for RTC EDUCATION: 1) High School Graduate/Cave Spring High, Roanoke, Virginia 2) Presently enrolled in a Real Estate Degree Program at FCCJ 3) Florida Real Estate Institute, Inc. a. Florida Real Estate Principals & Practices I b. Florida Real Estate Principals &Practices 11 C. Brokers Course/Broker Management d. Real Estate Appraising/Real Estate Financing/Investments e. Capitalization Theory f. State Certification CA2 Course/ 1994 Continuing Education 4) Lincoln Graduate Center/ Cleveland, Ohio a. Principals& Practices of Real Estate Appraisal b. Farm& Land Appraisal C. Writing The Narrative Appraisal d. Commercial Appraisals e. UCIR Form Instruction Courses/Uniform Commercial Industrial Report 5) 5) Society of Real Estate Appraisers a. Principles and Techniques of Amenity/Property Valuation 101 b. Applied Residential Property Valuation 102 C. Principles of Income Property Appraising 201 6) National Association of Certified Real Estate Appraisers a. Residential Construction Basics/ 1990 & 1992 7) State of Florida Ad Valorem Tax Department of Florida Appraisers a. IAAO Course 102 8) Appraisal Institute/ SRA Demo Report Class 9-93 Appraised the following types of properties: Residential, Residential Income, Commercial Properties, Special Purpose Properties, Land Approved with: Chemical Bank, Nations Bank, Southtrust Bank, Sun Bank, First Union Bank, First Security Savings Bank, Mortgage Authority, North American Mortgage, Mortgage Lion, Colonial Mortgage, Chemical Residential Mortgage, MFL Lenders, U.S. Department of Agriculture/Farmers Home Administration, FHA Appraiser, Navy Federal Credit Union Commission of the City of Atlantic Beach— June 14, 1999 Thank you for considering the re-purchase of lot 305 Saltair. David Thompson has recommended the re-purchase of lot 305. There are funds available, however there is a discrepancy between price and appraised value. I have worked as a CPA for fifteen years and one of the most common questions asked by clients is "what is my business worth?" My answer is that the value is what a seller is willing to sell for and a buyer is willing to pay. Another prospect and myself were willing to pay $50,000 for the lot. This is the firm price that Mr. Hixon is willing to sell the lot for. Unfortunately the real estate appraiser views a lower price tag. There are many discrepancies in the appraisal, which are outlined in a letter to the Commission from Mr. Hixon, a licensed real estate appraiser. The appraiser met with my wife Peggy while she was performing the appraisal. The appraiser's view was that there was no premium for the park location because, and I quote, "a lot is a lot is a lot." Interesting approach for Atlantic Beach. Is this to say that a lot on Beach Avenue is equal in value to a lot on Seminole Road? I had recently heard that a 50 foot by 100 foot lot on Beach Avenue across the street from oceanfront homes was sold for $225,000. Should that be a comparable? I do not think so, and I am sure none of you do? Additionally, this issue is not about the residents on Magnolia Street as much as it is an issue for all of Atlantic Beach residents. This weekend we received a copy of Tide Views in which the Mayor substituted for her customary letter, reflections of Elizabeth Porter from which I quote: ".... neighborhood events aren't the end of the fun to be had at Atlantic Beach. Howell Park is also a beautiful part of the community that draws in more and more visitors who decide to make Atlantic Beach their permanent home. At Howell Park, acres of lush Florida Hammock and fresh water ponds offer a quiet refuge for both people and birds. In the park and in our backyards, we receive frequent visits from a variety of bird life including bluejays, mourning doves, woodpeckers, wrens, vireos, mockingbirds, herons and cardinals. Several trails wind through the park for walkers and cyclists to explore." End quote. � y If another house is built on this site, what will be the impact to the wild life that we all enjoy in Atlantic Beach? The preservation of Howell Park is not only an investment for the city but for all property owners in Atlantic Beach. $50,000 is a modest price to pay for this preservation. If timing is an issue, Mr. Hixon is negotiable. He will be glad to work out terms with the City, but the price is firm. I urge you to look beyond the appraisal, and into the real value of preserving Howell Park, a priceless treasure of Atlantic Beach. Thank you for your consideration. FROM : 'Wrn H a :.ca . Mn I FA;: [Jp. . 2157939309 Jun. 14 1999 02:3---PM P2/2 June 14, 1999 Mr. David Thompson, City Manager City of Atlantic Beach 800 Seminole Road Atlantic Beach, FL 32233 VIA FAX, 247-5805 RE: Offer to sell Lot 305. Saltaire Section 3 Dear Mr. Thompson I have the following cornrne,its about the appraisal done by Kala Heald. In the Neighborhood Comment section of the report, the appraiser states that the subject lot is "1+- mile West of the Ocean" and "subject to frequent storms". In fact it's about 1/3 of a mile west of the ocean and we have experienced fewer ston-ns (I'm assuming storms means hurricanes) than most coastal areas if Florida. In the Reconciliation section of the report in Comments on Market Data the appraiser refers to Sale #4. I have assumed that the reference was Sale #'I and the error was a typographical mistake. Comparable No. 2: This is the sale of a duplex lot on the south end of Pine Street near Sturdivant_ 1 don't believe any person with even a slight knowledge of the area would consider this duplex lot comparable to a single-family lot fronting the park on Magnolia. In any case the appraiser made no adjustment for this location drtterence Comparable No. 3: We sold this lot for $35,000 in December of 1996. A typical arms-length transaction requires that e�ich party to the sale be operating without undue stimulus. In fact, we needed money to continue Beth's seminary education in New York where we were living. This is a corner lot that has a srnaller uctential building area. This decreases the utility of an already small (50 x 100) lot. -rhis lot does not have any park frontage. No adjustments were made for these negative characteristics. Positive adj.astrrents are appropriate. Comparable No. 1. We sold this lot for $36,000 in June of 1997. This lot sold with half of the standard real estate commi:_stun,. We netted approximately the same amount as if the lot had been sold for $38,000 with a full c:.arr mission As in Comparable No. 3. we were under pressure to sell Beth was about to grad:iate from seminary and all or our past due bills to the seminary had to be paid prior to graduation. Again tris lot does riot have any park frontage and the buyer was aware of that fact at the time of sale. No adjustments were made for these negative characteristics. Positive adjustments are appropriate. Lot 305 has park trontagc ori two sides. from a marketing point of view, frontage on Howell Park is considered to be a,positive characteristic and would have a similar effect on value. This can be evidenced by the difference between the value of homes fronting the park on Seaspray Avenue, Pine Street, Magnolia Street and Sherry Drive If you have any questions a;, char offer please feel free to contact me at the following phone number Sincerely, bili Hixon