Item 3C - Bennett Property PurchaseCITY OF ATLANTIC BEACH
CITY COMMISSION MEETING
STAFF REPORT
AGENDA ITEM #3C
JANUARY 11, 2016
AGENDA ITEM: Authorization to Purchase the Bennett Property and Propose
funding for the Development Option Selected
SUBMITTED BY: Nelson VanLiere, City Manager GZ:Q_
DATE: December 29, 2015
BACKGROUND: At the November 23rd City Commission meeting, Staff was asked
to provide information on the various options for developing the Bennett Property. It is
important to decide as soon as possible the intended use of the house located on the property if
acquired. This is necessary so that the City can appropriately secure the property once purchased
and take steps to fund the development costs. For discussion purposes, I had prepared a list of
some of the options that were discussed with cost estimates for review. These are simply
estimates that may help decide the ultimate disposition of the property should the City go
forward with the acquisition. These suggestions are not the only options to consider. Any
combination of development options that the City Commission is interested in can be evaluated
more thoroughly.
At the December 14th Commission meeting, a discussion of those options revealed various
opinions that are reflected in the minutes for that meeting presented with this agenda. One
Commissioner was not present and therefore this discussion should continue for a consensus to
be reached.
It is also important to remember that the City Commission authorized staff to develop a park
design for Tideviews including optional amenities in the area of the Bennett Property. The City
budgeted $25,000 to contract for this design and the project is currently underway.
The options presented at the December 14th meeting were as follows:
Option 1 -Raze the house and restore to green space. $5,000 to $10,000
Public works and the building department estimate that razing the house would cost from
about $5,000 to $10,000. Once removed, we would sod the area. This option would allow the
City time to consider how they may want to use the property in the future and to accumulate
funds for that development. Razing the house would also eliminate the need to secure it or
maintain it.
Option 2 -Raze the house and build a Community Center. $600,000 plus 50,000/yr
This option depends on the size and amenities of the Center. As an example, a 3,000 sq
ft facility at $200/sq. ft would run about $600,000. Parking and neighborhood acceptance as
well as the overall need for the Community Center would need to justify this option. Grants may
be available to partially fund this option; however it would be a significant unplanned expense
for our budget which would have to be amended. Once built, the center would have estimated
annual operating costs of an employee, utilities, insurance and maintenance totaling about
$50,000 per year. The costs for a Center may be partially off-set with rental fees. Rental fee
AGENDA ITEM #3C
JANUARY 11, 2016
revenues would not be considered a reliable funding source until a sustained demand was
demonstrated.
Option 3.-Remodel the house and use it to house a resident security officer. $20,000
This option would require renovations and modifications. We may need to spend
$20,000 initially and then make necessary modifications for an officer to inhabit. The City
would need to become the landlord for the resident officer. We would need to investigate the
personnel issues that are involved in this option. There is also the potential that no officer would
take the offer and that from time to time, the house may be vacant. This option would potentially
add a layer of security to the area and may help visitors feel more inclined to use the park. The
question of the need for an officer in this neighborhood should be answered by the neighborhood
through their input. The effectiveness of an officer on site should be considered.
Option 4. -Split the property, develop the open area as part of an access to the park and
sell the house. All proceeds used for park development $0
This option has the potential of returning some of the spent funds back to the City after a
period of time and to provide those funds towards the development of other amenities within the
park. This option would give up the control over that portion of the property and take away the
flexibility to develop the park as described in the options above in the future. This option would
also require the City to either sell the house as is, or spend some amount of funds fixing it up
before selling. The net proceeds of the house obtained by a public auction depend on many
factors. The City may have to decide on a minimum bid to accept. If the property is disposed of
in a public auction, we would also lose control of the type of neighbor we would have. This
option may lead to the installation of a fence along the property line. The development of the
entrance to the park could be paid for with the net proceeds of the sale so that the City does not
have to spend additional funds, depending on the desired level of development.
Staff's recommendation was to move quickly to raze the building as described in Option 1. Then
we should move slowly, evaluate the design currently being worked on and listen to the
community about their needs and opinions of what will be most beneficial to the surrounding
neighborhoods. We would also then be able to take time to determine the best way to fund
future development. With time and community input, the City may be able to obtain grant
funding for improvements.
BUDGET: The purchase of the property has an approved budget of $200,515. Upon the
acquisition of the property, staff should be instructed to prepare a midyear budget ordinance to
fund the development of the property. Options for the layout of Tideviews Park are currently
under design with a budget of$25,000. The Public Works budget includes funds for small items
associated with the purchase if needed.
RECOMMENDATION:
1.) To authorize the City Manager and the City Attorney to execute all documents
necessary to purchase the Bennett Property and to pay all related costs.
2.) To direct staff to prepare a budget proposal to fund the razing of the house and to
arrange for the clearing of the property of all debris including the small dock.
ATTACHMENTS: 1.) Revised HUD Statement 2.)General Warranty Deed
A. R. TYPE OF LOAN
AGENDA ITEM #3C
JANUARY 11, 2016
U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
SETTLEMENT STATEMENT
US Patriot Title, LLC 1. OFHA 2. Ot'l-lHA ·'· OcoNV.UNINS.
120 Airport Road 4. OvA s. OcoNV.INs_
Suite 2A
Palm Coast, Florida 32164
(386)-693-4919 fax: (38~) ~93-4918
(i. File Number 7. Loanl'umbo.'r.
DB15-51
C. NOTE: TJusform Isfurmshed to gtve you a statemenl rif actual settlement cru·J:;;. AmOlltJIS pard to and hy the seltlemenl agent arc shown. Items marked
(pnc) were~ paid outside the c/n:;ing. They are shown here: for informatimwl purposes and are not included it1 the totals.
The City of Atlantic Beach, Florida
D. Buyer: 800 Seminole Road
E. Seller:
F. Lender:
G. Property:
H. Settlement Agent:
Atlantic Beach, Florida 32233
Sara E. Bennett
1335 Rose Street
Atlantic Beach, Florida 32233
CASH
280 Camclia Street
Atlantic Beach, Duval County, Florida 32233
Duval County, Florida
US Patriot Title, LLC
Place of Settlement· 120 Airport Road Suite 2A Palm Coast Florida 32164 Flagler County
I. Settlement Date: January 14,2016
J. Summary of Buyer's Transaction K. Summary of Seller's Transaction
100. Gross Amount Due From Buver: 400. Gross Amount Due To Seller:
101. Contract Sales Price 199,750.00 401. Contract Sales Price
102. Personal Property 402. Personal Prooertv
103. Settlement Charges to Buyer (line 1400) 764.50 403.
199)50.00 --
Adjustments for Items Paid by Seller in Advance: Adjustments for Items Paid b~ Seller in Advance: ---106. City I Town Taxes 406. City I Town Taxes
107. County I Parish Taxes Jan 14, 2016 thm Dec 407. County I Parish Taxes Jan 14, 2016 thm Dec
31,2016 31,2016
108. Assessments 408. Assessments
109. Non Ad Valorem Assessments 409. Non Ad Valorem Assessments
120. Gross Amount Due from Buyer: 200,514.50 420. Gross Amount Due to Seller: 199,750.00
200. Amounts Paid b~ or in Behalf of Bul'er: 500. Reductions in Amount Due to Seller:
201. Deposit I Earnest Money 501. Excess Deposit (see instmctions)
202. Principal Amount of New Loan 502. Settlement Charges to Seller (Line 1400) 15,360.88 -203. Existing Loan(s) 503. Existing Loan(s)
204. 504. Payoff of First Mortgage to Setcms 181,791.00
205. 505. Payoff of Second Mortgage ..
206. 506. Purchase Money Mortgage
207. 507. Federal Tax Lien Release
208. 508. Seller Incentive
Adjustments for Items Uneaid bl' Seller: _ Adjustments for Items Uneaid bl' Seller:
210. City I Town Taxes 510. City I Town Taxes
211. County I Parish Taxes Jan I, 2016 thnt.Tan 39.11 511. County I Parish Taxes Jan I, 2016 thm Jan 39.11 13,2016 13,2016
212 A ssessmcn s '512 A sscssmen s
213. 513. 2015 Taxes 1,101.08
214. -514.
..
1,457.93 Taxes
220. Total Paid by I for Buyer: 39.11 520. Total Reductions in Amount Due 199,750.00 Seller:
300. Cash at Settlement from I to Bul'er: 600. Cash at Settlement to I from Seller:
301. Gross Amount due from Buyer (line 120) 200,514.50 601. Gross Amount due to Seller (line 420) !99,750.00
302. Less Amount Paid by/for Buyer (line 220) 39.1 I 602. Less Reductions Amount due Seller (line 199,750.00 520)
303. Cash From Buyer: $200,475.39 603. Cash From Seller: $0.00
HUD-1 May 2007
December 16. 2015 10:42 AM
Settlement Date:January 14, 2016
L. Settlement Charges
700. Total Sales I Broker's Commission:
Based on Price $199,750.00 is $11,985.00
Division of Commission as follows
701. 8,485.00 to Re/Max Watermarkc
702. 3.500.00 to The Public Tmst Enviromental Legallnstihltc of FL
703. Commission Paid at Settlement
704. Additional Broker Compensation
705. Additional Broker Comeensation
706. Referral Fee
800. Items Payable in Connection with Loan:
801. Loan Origination Fee
802. Loan Discount
803. AflEraisal Fcc
804. Credit Report
805. Lender's Inspection Fcc
806. Mortgage Insurance A[!J21ication Fee
807. Assumption Fee -900. Items Re<Juired bv Lender to be Paid in Advance:
901. Daily interest charge from Jan 14, 2016
902. Mortjlagc Insurance Premium ----------903. Hazard Insurance Premium
904. Flood Insurance Premium
1000. Reserves Deeosited with Lender:
1001. Hazard Insurance
I002. Mort!la!le Insurance
1003. Ci~ Property Taxes
1004. County Pro~rty Taxes
1005. Annual Assessments ··---II 00. Title Charges:
1101. Settlement or Closing Fee to US Patriot Title, LLC
1102. Abstract or Title Search to First American Title Insurance Company
1103. Title Examination -1104. Title Insurance Binder
1105. Document Pret'aration
1106. Nota!}' Fees
1107. Attorney Fees
(includes above item numbers:
Title Insurance to US Patriot Title LLC !lOS. (includes above item numbers· -Lender's 1109. Coverage 0.00
I 110. Owner's 199,750.00 Risk Rate Premium: $1,074.00 Coverage
llll. Statutory Surcharge to First American Title Insurance Company
1200. Government Recording and Transfer Charges: -1201. Recording Fees: Deed 14.50 Mortgage 0.00 Releases 0.00
1202. City/County Tax/Stamps: Deed 0.00 Mortgage 0.00
1203. State Tax/Stam~s: Deed 1,398.60 Mortgage 0.00
1204. Intangible Tax to Clerk of the Circuit Court
1205.
1300. Additional Settlement Charges:
1301. Survey
1302. Pest lnsEcction --1303.
1304.
1305.
1306.
1307.
1308.
1309.
1310.
1311.
1312.
1313. ..
1314.
1315.
1316.
1317. -1318. -1319.
1400. Total Settlement Charges (Enter on line 103, Section J and line 502, Section K)
HUD-1 May 2007
December 16, 2015 10:42 AM
I
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AGENDA ITEM #3C
JANUARY 11, 2016
File Number: 0815-51
Paid from 1 Paid from
Buyer's I Seller's
Funds at Funds al
Settlement Settlement
I
I 1,985.00
-------
'
750.00 800.00
100.00
-----
-··----
1,074.00
3.28
14.50
+---1.398.60
·----
'
--· -----
-
-
$764.50 $15,360.88
..
Settlement Date:January 14, 2016
A. U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
SETTLEMENT STATEMENT
US Patriot Title, LLC
120 Airport Road
Suite 2A
Palm Coast, Florida 32164
(386)·693-4919 fax: (386) 693--4918
File Number: DB15-51
[ have carefully reviewed the HUD~ I Settlement Statement and to the best of my knowledge anci. belief, it is a tmc and accurate statement of aH receipts and
disbursements made on my nccount or by me in this tronsnction. I further certify that 1 have received a copy of HUD-1 Settlement Stntcmcnt.
The City of Atlantic Beach, Florida
Uuyer: ScHer:
Nelson Van Lierc, City Manngcr
Address
AGENDA ITEM #3C
JANUARY 11, 2016
The HUD-1 Settlement Statement which I have prepared is a true <tnd accurntc account of this transaction. I have crm . .:;,cd or will cause the funds to be disbursed in
accordance with the instructions of the parties hereto.
Settlement Agent: Date: January 14,2016
JSTriplcLt
WARNING: It is a crime to knowingly make frtlsc statements to the United State..c; on this or any other similar form. Penalties upon conviction can include a fine
and imprisonment For de1ails sec Tit)c 18 U.S. Code Section 1001 and Section lOJO.
HUD-1 May 2007
December 16,201510:42 AM
Prepared by:
JSTripleu
US Patriot Title, LLC
120 Airport Rottd, Suite 2A
Palm Coast, Florida 32164
FilcNumbcr: DBt5-51
General Warranty Deed
Madl'! this December 16,2015 A.D. By Stt.-a E. Dennett, a Widow and surviving spouse ofF. Reuben Bennett, Deceased, whose
address is: 1335 Rose Strccr, Atlantic Beach, Florida 32233, hereinafter called the gr.mtor, to The City of Atlantic Beach, Florid:~,
whose post oflice address is: 800 Seminole Rond, Atlantic Reach, Florida 32233, hereinafter called the grantee:
(\Vhe~>Cvauscd h~:rt:in the term •grantor" and ~gn.ntee~ irKlw:lc all\~ (>:>rltc.>i to lhh in>..run\mt .ttnd th.e hcit>, kg~! n:rrt.'t.efllativo-and a~i!;JlS of
individuJ!i". and the succt.uors.,.nd3Sigr1Sofcorpotatioru;)
Witnesseth, that the grantor, for ond in consideration of the sum ofTen Dollars, ($1 0.00) and other valuable considerations,
receipt whereof is hereby acknowledged, hereby grants. bargains, sells, aliens, remises, rclettses, conveys and confirms unto the grantee,
all that certain land situate in Duval County, Florida, viz:
Lot I and the North 20 feet of Lot 2, Block 99, Lots I and 2, Block I 00, SECTION "H" ATLANTIC
BEACH, according to Plat thereof recorded in Plat Book I 8, Page(s) 34, of the current Public Records of
Duval County, Florida.
ob~ See att:a::hrl E)(lribit A 1ck
Parcel ID Number: 170862-0000
Together with all the:: tenements, hereditaments and appurtenances thereto belonging or in nn)f\visc appertaining.
To Have and to Hold, the sa.mc in fcc simple forever.
And the grantor hereby covenants with said gmmcc that the grantor is lawfully seized of said land in fcc simple; lhat the grantor
has good right and lawful :mthority to scll11nd convey S3id laod; that the grantor hereby fully warrants the title to said l.:tnd and will defend
the same against the lawful claims of all persons whomsoever, and that said land is free of all encumbrances except raxcs accruing
subsequent to December 31,2015.
In Witness \Vhereof, the said gr.mtor has signed and scaled these presents the day and year first above wriucn.
Signed. sealed and delivered in our presence:
(Seat)
________________ (Seal)
\VilnenPrintedNarnc \(\.rD. C--:t\n-.1 t! r Addrc.ss:
Stt:.tc of Florida
CounryofDuval
The foregoing instrurncnt was acknowledged before me this l6th day of December, 2015, by Sara E. Bennett, a Widow and surviving
spouse ofF. Reuben Bennett, Deceased, who is./are pen-onally knovm to me or vho ha.s o ccd a valid drivers license as identification. r---r
DEED Individu-al Warr.mty 0ccJ.-Leg<. I 0..1. F~o::
T,U.UGLOVER
NottryPub!:C -Stattot Fl«ldl
Camm!nlon # FF 9'255111
My Comm. EJI)(tU Oct 2<1. 2019
Bcrdedth'CU'ItNrmai~AU.'l
AGENDA ITEM #3C
JANUARY 11, 2016
Exhibit "A"
AGENDA ITEM #3C
JANUARY 11, 2016
Grantee herein is prohibited from conveying captioned property for any sales price for a period of 30
days from the date of this deed. After this 30 day period, Grantee is further prohibited from conveying
the property for a sales price greater than $239,700.00 until 90 days from the date of this deed.
These restrictions shall run with the land and are not personal to the Grantee.
File Number: US 15-110
Legal Description with Non Homestead