03-30-1998
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COMMUNITY REDEVEI.Ol'MENT
AGENCY
CITY OF CLEARWATER
POST OFFICE Box 4748, CLF.ARWATF.RI FLORIDA" 33758-4748
eln' HALL, 112 SOIITH OSCEOLA AVENUE, CLEARWATER, FWRlOA 33756
TELEl'1I0NE (813) 562-4040 FAX (813) 562-4052
AGENDA
COMMUNITY REDEVELOPMENT AGENCY
(eRA)
Monday, March 30, 1998
9:00 a.m.
Commission Chambers
1. Call to Order
2. New Business
Letter Agreement with Information Management Resources (IMR) for
discussion only.
3. Assistant City Manager Verbal Reports
4. Other Business
5. Adjournment
G)
"EQUAL EMPLOYMENT AND AFFIRMATIVE ACTION EMPWYER"
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To:
From:
cc:
Date:
RE:
~ Clearwater
u
Interoffice Correspondence Sheet
MAYOR & COMMISSIONERS
Bob Keller
Mike Roberto
March 27, 1998
Attached letter concerning Annex Property
In a good faith effort by all parties to move negotiations forward on the II Annex" property, we
have drafted the attached letter concerning issues on the site. This agreement is subject to
your approval as CRA trustees. We have called an emergency meeting of the CRA for Monday
to explain the issue. We will schedule a vote at another meeting, probably Thursday.
The letter deals with two concerns, environmental and title, which have arisen during the
negotiations. In laymen's terms here are the major points covered in the agreements:
· IMR has certain concerns about the possibility of environmental conditions on the
site that might preclude them from proceeding with their development plans.
Excluding two items previously disclosed, IMR may under certain circumstances
deem the property to have an unsatisfactory environmental condition and
terminate negotiations. The agreement details those conditions on page 3. We, of
course, have the opportunity to remediate those conditions in a specified 90-day
period.
· With regard to the two disclosed impacts, the property will be considered to be
satisfactory if we obtain within the 90-day period a DEP letter of "no further
action" other than monitoring and deed restrictions or if CRA enters into an
agreement sometimes called a covenant not to sue. Page 4 of the letter fully
detai Is the terms.
· Recently, we discovered a concern about title to the property. While we believe
this problem is solvable, IMR can terminate negotiations if the problem is not
solved within the specified 90-day period.
· Financial obligations are also covered. We agree to payor reimburse rMR for
environmental costs at closing. If IMR does not consummate the transaction
because of an Unsatisfactory Environmental Condition or the unresolved title
concern, we agree to reimburse IMR for these costs. The upper limit of our
reimbursement is $47,000.
Thank YOLl for the consideration in this important matter. If you have questions
concerning this information please call me at home [786-9238J
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:FR[) 3. 27' 98 ;7:05/81. 17:04/NO. 426C294152? 2
[TO BE PLACED ON eRA LETTERHEAD]
March
~ 1998
Satish K. Sanan
President and Chief Executive Officer
Infonnation Management Resources, Inc.
26750 U. S. Highway 19 North, Suite 500
Clearwater, FL 33761
Re: Proposed Information Management Resource~ Inc. ('cIMRU) Global Center Project
(the "Project") lO be located upon cenain property located within the City of Clearwater and
generally bounded by Cleveland Street on the north) Missouri Avenue on the east and
Madison Street on the west with a southerly boundary located approximately 150 feet nonh
of Gould Street (the "Property')}
Dear Mr Sanan:
This letter will confirm certain agreements which have been reached between tile Community
. Redevelopment Agency of the City of Clearwater, Rorida. (the "eRA") and IMR with respect to the
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FROM HiLL WARJ HENDERSO~
(FRi) 3. 27'98 17:05/Si.17:04:~C. 4260294152 P 3
Project and the Property in order to induce Th-fR. to continue in its ongoing negotiations for the
acquisition of the Property and the development of the Project. In this regard, ~ and the eRA
have agreed as follows:
1. FOI the put']Joses of this Letter Agreement the following definitions shall apply to the
defined terms used herein:
(a) Certain Environm~ntal Reports. Certain Environmental Reports slta.ll mean
the following documents:
(i) Contamination Assessment Report, City of Clearwater, Former
Montgomery Wards, 10 South Missouri Avenue, Clearwater, Florida, FDF.P Facility
#529401089, dated December 19, 1994, prepared by Dow Environmental, Inc.
(ii) Contamination Assessment Report Addendum, City of Clearwater,
Former Montgomery Wards, 10 South Missouri Avenue, Clearwater, Florida, FDEP
Facility #529401089, dated November, 1995, prepared by Dow Environmental, Inc.
(iii) Remedial Action Plan for Former Montgomery Wards, 10 South
Missouri Avenue, Cle.arwater, Florida, FDEr I'acility #529401059, dated December,
1996~ prepared by Post, Buckley, Schuh & Jernigan. Inc.
(iv) RemediaJ Action Plan-Modification for Fonner Montgomery Wards,
10 South :Missouri Avenue, Clearwater, Florid~ FDEP Facility #529401 089, dated
February 20, 1991. prepared by Post, Buckley, Schuh & Jernigan, Inc.
Page 2.
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(v) Letter Report to Tom Stodd, Florida Department of Environmental
Protection, re: Fonner Montgomery Wards Site, Facility ID No. 592401089, dated
January 2, 1998, prepared by Post, Buckley, Schuh & Jernigan, Inc.
(vi) Let1er Report to Tom Stodd, Florida Department of Environmental
Protection, re Former Montgomery Wards Site, Facility 10 No. 529401089, dated
March 2, 1998, prepared by Post, Buckley, Schuh & Jernigan, Inc.
(b) EnvirollIDental Cos.u. Environmental Costs shall mean all costs incurred in
connection with IMR's due diligence, negotiation, study and assessment of environmental
matters with respect to the Property which have been undertaken or will be undertaken on
behalf ofTh1R prior to closing on the purchase of the Property including, but not limited to,
fees and expenses ofEnviroAssessments. Inc., Frank & Gramling, HiU, Ward & Henders.on,
P A and Dames & Moore.
(c) Unsatisfactoxy Environmental Condition. Unsatisfactory Environmental
Condition shall mean a reasonable determination by lMR that the environmental condition of
the Property is not satisfactory to pennit the timely purchase of the Property and development
of the Project. With the exception of those certain petroleum and chlorinated hydrocarbon
impacts previously reported in the Certain Environmental Reports, the environmental
condition of the Property may be deemed unsatisfactory by TMR if the presence and
concentration of chemicals. pollutants. petroleum products or hazardous substances (as
defined under any applicable federal. state or local statutes. laws or regulations) are above
concentrations that could subject IM'R to any claim, damage, liability or actions of any person
or environmental agency or exceed concentrations regulated by any federal. state or local
statutes, laws or regulations; provided, however. the Properly shall not be deemed to be
unsatisfactory if such condition is fully remediated (so that such condition is removed or
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reduced to concentrations which do not exceed levels regulated by applicable statutes, laws
or regulations) within ninety (90) days from the eRA's receipt of written notice from IMR
of such condition. With respect to those certain petroleum and chlorinated hydrocarbon
impacts previously reported in the Certain Environmental Reports, the envirorunental
condition of the Property shall not be deemed unsatisfactory if, within ninety (90) days from
the date of this Lener Agreement, the eRA obtains (i) a written determination from the
Florida Department of Environmental Projection ("FDEP") that no further action is required
. other than monitoring and deed restrictions as set forth in ~xh.ibit A attached hereto. or (ii)
the eRA enters into a binding agreement with FDEP that obligates the eRA to assess and
remediate such impacts to the satisfaction ofFDEP and FDEP provides a wrinen commitment
to Th1R in said agreement that FDEP covenants and agrees not to sue or initiate any civil or
administrative action or proceeding against. or seek penalties from any party, except the
eM the City of Clearwater and prior owners/operators of the Property with respect to any
claims or causes of action FDEP may have arising out of the presence of such impacts in soil s
and/or groundwater at the Property unless action by IMR any lessee or purchaser from .Ir\1R
of aJJ or any pa....t of the Property or any interest therein, sublessees and occupancy tenants of
any of the Property and the officers, directors, shareholders, partners and employees of any
holder of any such interest and their legal representatives, agents. successors and assigns
causes additional contamination or causes the spread of such impacts Funher, such
CQmmirment by 1" DEP shall further provide that parties which shall be exempt from suits, civil
or administrative actions or proceedings, under the foregoing covenant agreement shall
include, but are not limited to IMR, any lessee or purchaser from IM.R of all or part of the
Property, holders of mortgages on pan or all of the Property. or any interest therein,
sublessees and occupancy tenants of any part of the Property, and the officers. directors,
shareholders, partners and. employees of any holder of any such interest and their heirs, legal
representatives, agents, successors and assigns. Further. in addition to the requirements of
subparagraphs (i) or Cn) above, for the operation of either of such subparagraphs to be
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effective, the CRA shall provide a written indemnity to IMR, in fonn acceptable to IMR. from
any third party claims arising from the presence of such impacts on the Property.
2 The Environmental Costs shall be paid by the eRA or reimbursed by the eRA to IMR
at the closing of the purchase of the Property.
3. In the event .IMR should elect not to consummate the purchase of the Property based
on an Unsatisfactory Environmental Condition, then and in such event subject to the ninety (90) day
cure period provided herein, within fifteen (15) days of JMR's notice to the eRA that it is electing
not to purchase the Property, the eRA will reimburse ThAR for the Environmental Costs and Title and
Survey Review Costs (hereinafter defined) incurred by IMR.
4. The eRA's obligation to reimburse Envirorunental Costs shall not exceed $47,000.00.
The foregoing cost limitation shall not, however, include fees paid directly by the eRA or on its
behalf, to EnviroAssessmenlc;, Inc. or Dames & Moore: s fees incurred by lMR with respect to the
Phase I EnviroMlcntal Site Assessment Update Report dated March 17, 1998, pr~pared by Dames
& Moore. The eRA has previously unconditionaJly committed to the payment of such fees and costs.
5. lMR. has also authorized its real estate legal counsel, Hill, Ward & Henderson, P.A.,
to proceed with title and survey review of the Property with respect to the Project. In the event that
title to the Property should be dettrmined to be unmarketable or title to or survey of the Property
have defects which i.n the reasonable judgment of IMR would not permit or materiaHy delay or
materially effect the utilization of the Property for the development of the Project. and such defects
are not cured within ninety (90) days following the eRA's receipt of written notice from IMR of such
matters, the eRA agrees thar it shall reimburse Il\tfR for reasonable fees and costs Wllich shall not
exceed $3,000, incurred by lMR with HillJ Ward & HendersonJ P.A, with respect to Hill, Ward &
Henderson, P.A..s review of title and survey matters. In addition, in such event, the eRA shall be
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FROM HILL WARD HENDERSON
{~Rrl3. 27' 98 i7:06/ST. 17:04/NO. 4i60294:52 P 7
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obligated to also reimburse IMR for Envirorunental Costs as provided above. Such reimbursement
shall take place within fifteen (I 5) days ofIMR's notice that it is ejecting not to purchase the Property
for the reasons stated in this paragraph (in this regard the eRA acknowledges its receipt of
correspondence dated March 13, 1998, detailing various of {MR's objections to title and survey;
providod, however, the CRA and IMR agree that said ninCly (90) day cure period as to such matters
set fonh in the March 13, 1998 correspondence shall not commence until the date of this Letter
Agreement).
Please execute one copy oithis letter as noted below to confirm IMR's understanding and agreement
of the foregoing.
Very truly yours,
COMMUNITY REDEVELOPMENT AGENCY OF THE
CITY OF CLEARWATER, FLORIDA,
a Florida municipal corporation
BY:
Name:
Title:
Attest:
BY:
Name:
Title:
(Corporate Seal)
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(:~;l 3.27' 98 17:06/81. 17:04/NO, 4260294152? 6
ACKNOWLEDGED AND AGREED TO:
INFORMATION MANAGEMENT RESOURCES, TNe.
BY:
:Name:
Title:
(Corporate Seal)
F:\WP61\WORX\lUR\1U'STlCJ:;'SANAN.N1::W
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