Exh 8DAGENDA ITEM #8D
JANUARY 12, 2004
CITY OF ATLANTIC BEACH
CITY COMMISSION MEETING
STAFF REPORT
AGENDA ITEM: Aquatic Gardens Pond
SUBMITTED BY: Jim Hanson, Cit
DATE: December 12, 2003
BACKGROUND: The need for maintenance of the privately-owned Aquatic Drive Pond has
been discussed with the City Commission on several occasions in
connection with the Storm Water Master Plan update. Several months
ago, the City Commission concurred with the staff's recommendation to
acquire the pond so that the city could ensure maintenance. Since that
time, the City Attorney has corresponded with the owner of the pond,
David Adams of Jacksonville. Also during these months, city staff cited
the owner for excessive tall grass and weeds, but he did not clean up the
pond. Following the city's policy, the pond was cleaned and the owner
assessed for the cost plus a 100 percent administrative fee. Alien has now
been placed on the property for $4,271.
Most recently, the owner of the property has offered to sell it to the city
for an amount of $25,000 and cancellation of the city lien for weed
abatement. City staff has been unable to obtain an appraisal on the
property to establish the value. One appraiser told Alan Jensen that the
property was essentially worthless. One way of valuing the property
would be to use the amount paid by the owner who bought it at a tax sale
($1,600) and apply an interest factor to present. This figure would equal
$1,870.
The owner's request for $25,000 plus the cancellation of the weed
abatement lien for $4,271 is considerably more than the property is worth.
The recommendation from our City Attorney is to file a suit to close on
the lien.
BUDGET: The legal fees and court costs associated with closing on the lien are
estimated to be minimal, less than $2,000. The City would be entitled to
recover those expenses if anyone were to make a bid for the property that
was higher than the $4,271 lien. The yearly cost to maintain this pond is
estimated to be $3,740.
RECOMMENDATION: Authorize the City Attorney to file a suit to close on the property for the
value of the lien.
ATTACHMENT: (1) Letter from David Adams to Alan Jensen dated November 21, 2003
(2) Letter from Alan Jensen to Jim Hanson dated November 26, 2003
AGENDA ITEM #8D
JANUARY 12, 2004
ALAN C. JENSEN
Attorney at Law
935 North Third Street
Post Office Box 50457
Jacksonville Beach, Florida 32240-0457
Telephone (904) 246-2500
Facsimile (904) 246-9960
Mail: AJensenLawC(~aol.com
November 26, 2003
James R. Hanson, Ciry Manager
800 Seminole Road
Atlantic Beach, Florida 32233
Re: Aquatic Gardens Pond, Atlantic Beach
Dear Tim:
Enclosed is a copy of a letter I received today from Mr. Adams by certified mail today regarding
the Aquatic Pond property. I believe it is self explanatory, but please contact me if you have any
questions regarding it.
Obviously I think his proposed settlement is unacceptable to the City, and I would suggest that we
proceed with filing the weed abatement lien as I discussed a couple of weeks ago with Alex
Sherrer, and then filing suit for close on that lien. The amount of that lien is in excess of
$4,000.00 and I doubt if anyone will bid higher than that amount to acquire this property. We
should also be entitled to recover court costs, attorneys fees, and interest, although if we acquire
title to the property through the foreclosure proceeding, we would not necessarily recover those
expenses.
If you concur with my thinking in this regard, please let me know and I will be glad to report to the
City Commission at the next meeting on December 8~ and get their blessing for proceeding with
the legal action. Thanks.
Very truly
ALAN C.
Enclosure '
AC7/tdb
Cc: Alex Sherrer, Code Enforcement Officer (w/enc.)
AGENDA ITEM #8D
JANUARY 12, 2004
3444 Regatta Way
Jacksonville, Florida 32223
November 21, 2003
Alan C. Jensen
935 North Third Street
P.O. Box 50457
Jacksonville Beach, Florida 32240-0457
Dear Mr. Jensen:
This correspondence is in response to your November 12, 2003 letter regarding the
Aquatic Gardens, Atlantic Beach, Florida property.
During our prior communications we agreed that in order to negotiate terms of sale for
the Aquatic Gardens acreage, a fair market value conducted by an unbiased appraiser was
necessary. However, in your October 30, 2003 correspondence the supplemental
addendum provided by Anthony Hamilton, in fact, did not achieve this mutual goal.
After a careful review of the documentation provided by Anthony Hamilton it appears he
was unable to arrive at an appropriate fair market value for the Aquatic Gardens property.
Though Mr. Hamilton attempted to use industry standard appraisal analyses he was
unwilling to provide an assessment that could have ascertained a fair market value
through the appraisal process for this 2.06 acre'property. Mr. Hamilton refers to the
property as "a portion of the development ...such as common areas, etc." Using this
logic, often both commercial and residential developments hold high regard for the
properties considered "common areas", as such; these areas are of significant value to the
community whether recreation areas, nature preserves or erosion control. Often these
geographic amenities have an equal or higher value than the surrounding properties. As
an example, the property in question.
As is indicated in Mr. Hamilton's correspondence to arrive at an assessed value for this
property is beyond his area of expertise and to adequately ascertain a true dollar value
assessment would be cost prohibited at this juncture. Therefore, using the standards set
forth by Mr. Hamilton, by incorporating a multidisciplinary approach of cost, income and
sales comparison I believe the value of this property is a minimum of $25,000. This
value reflects a market value that is favorable to the City.
In order to expeditiously resolve this matter, I propose the following terms: a settlement
of $25,000 and cancellation of the City abatement fees in the amount of $4,271.24 and
release from any other liens/fees/assessments/abatements/fines that may have been or are
placed on this property by the City and any and all closing costs including legal fees to
transfer title of this property. A response is needed within a 30 day period from the date
you receive this correspondence so we can move forward and complete this transaction.
RECEIVED
NDV 2 6 1003
Alan C. Jensen, AhY~
~ AGENDA ITEM #8D
M~
JANUARY 12, ? 004
In prior correspondence you noted the City could acquire this property through eminent
domain. If this is the objective the City would be required to determine the fair market
value of this acreage. In addition, the City would be responsible for my legal fees and
court costs in order to proceed with this judicial process. It has already been established
that this course of action is cost prohibitive and would delay any forthcoming intended
usage the City may have for this acreage.
It has come to my attention that the City of Atlantic Beach has acquired other similar
properties in the area of Section H and has paid considerably more to acquire property for
the same or similar type of usage as the Aquatic Gardens two plus acres.
I look forward to hearing from you within the next 30 days with a favorable decision.
If you wish to discuss this further I can be reached at (904) 288-9238.
Sincerely,
ore ~w
David Adams