Agenda Item 8EAGENDA ITEM # 8E
NOVEMBER 13, 2012
CITY COMMISSION MEETING
STAFF REPORT
AGENDA ITEM: Revised process for acquiring property from River Branch
Foundation
SUBMITTED BY: Jim Hanson, City Mana
DATE: November 7, 2012
BACKGROUND: The City Commission authorized the acceptance of approximately 11.84
acres of property located on the north side of Dutton Island Road and
adjacent to the River Branch Preserve at the regular meeting on September
24, 2012. The property was to be acquired by the River Branch
Foundation (Foundation) and then donated to the City of Atlantic Beach.
BUDGET:
The City has recently been advised by representatives of the Foundation
that they would prefer to provide the money to purchase the property to the
City of Atlantic Beach and then have Atlantic Beach purchase the property
directly from the seller. The requirement for the conservation easement
would be the same as if it had been originally purchased and donated
through the Foundation and as approved on September 24, 2012. We have
also been advised that the Foundation and the seller would much prefer to
have the closing on this property completed within the next week.
Because this is a change from what the City Commission approved on
September 24th, and because the City should adopt a budget both for the
revenue and expenses related to this property transfer, this has been added
to the agenda for the regular meeting on November 13th
Accommodating the request from the Foundation will require the City
Commission to adopt an ordinance on November 13th at one meeting rather
than the normal two. Alan Jensen has advised that the City Commission
can do this, provided that the Commission first declare the action as an
emergency as authorized under the City Code, City Charter and State
Statutes. Copies of the appropriate Code, Charter and Statute sections are
attached. The reason to declare this an emergency would be to
accommodate the schedule of a charitable organization that wants to
provide a valuable piece of property to the City of Atlantic Beach.
The budget amendment to purchase this property includes both revenues
and expenses equaling $225,422.50. There will be no cost to the City in
acquisition of this property other than staff time to handle the details.
AGENDA ITEM # 8E
NOVEMBER 13, 2012
RECOMMENDATION: 1) Vote to approve the budget amendment at one meeting under the
Emergency provisions to accommodate the request of the Foundation,
2) Vote to approve both the first and second readings of the budget
amending ordinance at the meeting on November 13, 2012, and
3) Authorize Mayor Borno to execute all related documents on
behalf of the City of Atlantic Beach.
ATTACHMENTS: 1) Ordinance 20-12-119
2) Staff Report from City Manager on September 24, 2012
3) Closing Statement
4) Assignment of Contract for Sale
5) City Code, City Charter and state statutes section on emergency
passage of ordinances
AGENDA ITEM # 8E
NOVEMBER 13, 2012
CITY COMMISSION MEETING
STAFF REPORT
AGENDA ITEM: Donation of Property adjacent to River Branch Preserve
SUBMITTED BY: Jim Hanson, City Manager
DATE: September 14, 2012
BACKGROUND: The River Branch Foundation wishes to donate an 11.84 acre tract of property
adjacent to the City's River Branch Preserve, to the City of Atlantic Beach. This
property will include a conservation easement to the Public Trust Environmental
Law Institute which sets out restrictions on the present and future use of the
property. The parcel also has a conservation easement over 2.23 acres of the
property which was granted to the SJRWMD in 2005 and later amended.
The River Branch Foundation wants the property to remain in its present
wilderness state, with possible minor improvements for public access. To ensure
that the property will remain in its current condition, they plan to grant a
conservation easement to the Public Trust Environmental Law Institute after they
close on the property in October and prior to the donation to the City. This
conservation easement is very similar to the one that exists for the adjacent River
Branch Preserve property currently owned by the City of Atlantic Beach. The
easement on the current Preserve was granted to the North Florida Land Trust.
The River Branch Preserve was acquired in 2009 with a majority of the funding
coming from the River Branch Foundation. Atlantic Beach paid $185,000 and the
Public Trust Law Environmental Institute put in approximately $30,000. The
acquisition of the River Branch property provided a critical link between the
Dutton Island and Tideview Preserves and is a central part of the recently
approved Marsh Master Plan. The addition of this new property would enhance
and expand the River Branch Preserve. Any development on this 11.84 acre tract
would have severely detracted from the pristine natural environment that makes
the Preserves such a valuable asset to the citizens of Atlantic Beach.
BUDGET: There is no development proposed for this 11.84 acre parcel although walking
trails or other non-invasive public access aids may be added in future. Because
the purpose of this donation is for the property to remain in its wilderness
condition, the City anticipates very little cost for maintenance and ownership.
Consequently, no budget is needed at this time.
RECOIVIMENDATION: Authorize the Mayor to accept the donation of the 11.84 acre tract from the River
Branch Foundation of Jacksonville Beach, Florida on behalf of the City of
Atlantic Beach.
ATTACHMENTS:
1) Press Announcement from the River Branch Foundation
2) Conservation easement to the Public Trust Environmental Law Institute
3) Conservation easement and amendment to the SJRWMD
4) Drawing of property
AGENDA ITEM # SE
NOVEMBER 13, 2012
CLOSING STATEMENT
BUYER: CITY OF ATLANTIC BEACH
SELLER: CHALLEN CAPITAL, INC.
PROPERTY: Vacant land on Dutton Island Drive, Atlantic Beach, FL
DATE: November 7, 2012
BUYER SELLER
Buyer's Charges Seller's Credits
Purchase Price 225,000.00 225,000.00
0 0
Closing Costs: 0 0
Recording Fee — Warranty Deed (3 pages) 27.00 0
Recording Fee — Easement 120.50
Fee to broker 275.00
(A) Totals 225,422.50 225,000.00
Buyer's Credits Seller's Charges
Real Estate Commission 0 6,750.00
2012 Tax bill 36.00
Survey 800.00
(reimburse River Branch Foundation "RBF") 0
Title Premium 0 1,200.00
Documentary Stamp Tax (Deed) 0 1,575.00
Title Search Fee 0 275.00
(B) Totals 10,636.00
Gross Amount Due from Buyer [Total at A] 225,422.50 0
Less Credits to Buyer [Total at B] 0 0
Cash from Buyer at Closing 225,422.50 0
Gross Amount Due to Seller [Total at A] 225,000.00
Less Charges to Seller [Total at B] 10,636.00
Net Amount Due Seller 214,364.00
1
42704122_1
AGENDA ITEM # 8E
NOVEMBER 13, 2012
RECONCILIATION
CREDITS DISBURSEMENTS
Cash from Buyer (Gift from RBF to Buyer) 225,422.50 0
Clerk: Recording Fees 147.50
Clerk: Documentary Stamp Tax (Deed) 0 1,575.00
Title Insurance (premium and exam) 0 1,200.00
RBF (reimburse for title search fee) 0 275.00
Commission & Fee 0 7,025.00
Tax collector 0 36.00
Survey (to River Branch) 0 800.00
Seller 0 214,364.00
Totals 225,422,50 225,422.50
Notes:
Taxes:
Seller is paying 2012 ad valorem real property taxes. Buyer is tax exempt. Any refund for 2012
taxes will belong to Seller. There will be no reproration.
Gift:
Buyer, by its execution below, hereby acknowledges receipt of a gift in the amount of
$225,422.50 from River Branch Foundation, a private not-for-profit charitable foundation, and
agrees that such gift is being used to make the purchase reflected hereon, including payment of
those costs shown hereon. Buyer and Seller each instruct McGuireWoods LLP to return the
binder deposit ($10,000) to River Branch Foundation, and understand and agree that the total gift
amount is as reflected above.
2
42704122_1
AGENDA ITEM # 8E
NOVEMBER 13, 2012
The foregoing statement is hereby approved and authorization is hereby given to McGuireWoods
LLP to disburse and pay out the same in accordance herewith.
Dated and executed in one or more counterparts as of the date first above written.
CITY OF ATLANTIC BEACH
By:
Name:
Title:
CHALLEN CAPITAL, INC.
By:
Name: Alonzo Walton
Title: President
3
42704122_1
AGENDA ITEM # 8E
NOVEMBER 13, 2012
ASSIGNMENT OF CONTRACT FOR SALE AND PURCHASE
THIS ASSIGNMENT, dated as of November/ , 2012, is by and between
RIVER BRANCH FOUNDATION, a Florida not-for-profit foundation ("Assignor"), and
CITY OF ATLANTIC BEACH, a municipal corporation ("Assignee").
For a good and valuable consideration, the receipt and legal sufficiency of which
are hereby acknowledged, Assignor does hereby assign all of its right, title and interest
as Buyer (including all rights with respect to the Deposit) in the CONTRACT FOR SALE
AND PURCHASE dated as of August 28, 2012, between it and Challen Capital, Inc. (the
"Contract").
Assignee does hereby indemnify and save Assignor harmless from all loss, cost,
damage or expense, including reasonable attorney's fees, suffered or incurred by reason
of Assignee's failure to perform after the date hereof any obligation of Assignee as Buyer
under the Contract, which by the terms of the Contract should be performed after the
date hereof.
Assignor does hereby indemnify and save Assignee harmless from all loss, cost,
damage or expense, including reasonable attorney's fees, suffered or incurred by reason
of Assignor's failure to perform before the date hereof any obligation of Assignor as
Buyer under the Contract, which by the terms of the Contract should be performed
before the date hereof.
Assignee, by its execution hereof, hereby assumes all obligations of Landlord
under the Contract arising subsequent to the date hereof, but not prior thereto.
Assignor warrants it has the full power and lawful authority to make, execute and
deliver this assignment. In any action brought by either party against the other, and
arising hereunder, the prevailing party shall be entitled to reasonable attorney's fees and
expenses.
IN WITNESS WHEREOF, Assignor and Assignee have executed this Agreement
in counterpart form as of the date first above written.
RIV
BRANC. ' OU DATION
7.0. :Ai Ale/
r= `-'Jits Direct
iiiiir
CITY OF ATLANTIC BEACH
By
, its
McGuireWoods LLP, as Escrow Agent, under the Contact, hereby recognizes the within
Assignment.
McGuireWoods LLP
By
Kenneth M. Keefe, Jr., Attorney
423610761
.AC;[.:113A ram .A1
NOV ENURE R 13, 2012
Atlantic Beach Ctv Chartel
Se,c„, 10., - Procedure for passage of ordinances arid resolution&
The minnurn procedures for adoption of ordinances and resolutions as set forth in FS,
Section 166,041 shall ir its entirety constitute the process, for such by the Mantic Beach City
Commission
Sec, 2-19 Atlantic Beach City Codel Rules of Order
C26)
Ruk? ?t;?: The city commission may take action on a matter which, because of time
constraints, has not been included on the agenda for their meeting, if such matter is,
declared to be an emergency by the affirmative voles of the majority of the members
of the city commission,. The passage of emergency ordinances and resolutions,
however, shall be in accordance with ii 11 of the City Charter.
AtiENI.31A ITENI ff. KE
NOVEMBItR 3,, 20 12
VHUNICIPALSITIES
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