Loading...
10/12/1993 - Joint CRA CITY COMMISSION/COMMUNITY REDEVELOPMENT AGENCY SPECIAL MEETING October 12, 1993 The City Commission of the City of Clearwater met in special joint meeting of the City Commission and Community Redevelopment Agency in the Commission Chambers at Clearwater City Hall, Monday, October 12, 1993, at 5:00 p.m., with the following members present: Rita Garvey Mayor/Commissioner (Vice-Chair) Arthur X. Deegan, II Vice-Mayor/Commissioner (Chairperson) Richard Fitzgerald Commissioner (Trustee) Sue A. Berfield Commissioner (Trustee) Fred A. Thomas Commissioner (Trustee) Also present: Michael J. Wright City Manager M.A. Galbraith, Jr. City Attorney Cynthia E. Goudeau City Clerk In order to provide continuity for research, the items will be listed in agenda order although not necessarily discussed in that order. The purpose of this meeting is to approve the contract for the sale of the Sun Bank Atrium building to Krumm and Associates. The Mayor called the meeting to order at 5:00 p.m. The City Attorney indicated the final contract is not yet ready and the deposit has not yet been received. Commissioner Thomas stated the motion made was very clear that the potential purchasers had ten days in which to submit a signed agreement and a deposit. He stated if there is no signed contract they will be in default and it is time the City got about the business of using the building. He recommended every day there is no contract, the price rise $10,000 to $20,000. Commissioner Berfield questioned a letter received by the City Clerk regarding the deposit. Mr. Galbraith indicated it had been sent to Mr. Justice to hold. Commissioner Fitzgerald questioned when the ten days would expire. It was indicated, Thursday, October 14, 1993. The City Manager indicated if the purchasers do not come through and no other action is taken, the City will keep the building. Commissioner Thomas stated he was tired of playing games and would support a motion with a penalty after the ten days. Commissioner Deegan questioned the closing date. Mr. Galbraith said Mr. Justice indicated that date would be November 30, 1993. Commissioner Deegan questioned if the City Attorney had the impression the purchasers were doing the best they could as the Commission is the one who set the ten day time frame. The City Attorney indicated it is his impression they are very busy. He said Mr. Mackey was in Jacksonville last week and Mr. Galbraith expected to receive a call from him but did not. Commissioner Deegan stated the Commission is attempting to deal fairly with Krumm and Associates. He said if they can have the contract by October 21, 1993 and close by November 30, 1993, it was still in agreement with the general concept of what the Commission wanted. Commissioner Deegan moved to accept the change in the date for the check and the signed contract to be submitted no later than October 21, 1993 and closing no later than November 30, 1993. The motion was duly seconded. Commissioner Thomas indicated he would oppose any motion that did not increase the cost for the delay. Commissioner Deegan did not feel the Commission was in the position to be "hard nosed." Commissioner Thomas disagreed, stating the purchasers were in the room when the Commission set the ten day time frame and indicated they would be able to meet that. He stated Clearwater and the City Commission have a responsibility to get the job done. Mayor Garvey stated she did not want the City running an office complex. She stated to continue forward and not require the deposit or an increase in price was not in the best interest of Clearwater. Commissioner Thomas indicated a couple of individuals have indicated an interest in purchasing the building should it go up for sale again. Commissioner Deegan stated the City has been in negotiations this long and has an agreement in concept. He stated the only thing being done is relaxing the date one week. He stated the whole deal has been handled under an unusual way to negotiate. Mayor Garvey questioned why the deposit had not been received. Commissioner Deegan indicated the earnest money was to be submitted with the signed agreement. Commissioner Thomas indicated the City was selling the building in the way it was purchased. He stated the contract was not unusual until discussion began regarding the parking arrangement. He stated this purchase is a very simple agreement. He felt Krumm and Associates were too busy to deal with the City of Clearwater and had "bigger fish to fry." Mayor Garvey pointed out that the bid was a simple purchase of the building for $6.9 million. Then the purchasers kept adding additional issues. Commissioner Fitzgerald indicated he has been consistently opposed to the deal and agrees with Commissioner Thomas' comments. He stated significant concessions have been made and the City reduced the price by $450,000. He stated he did not like the idea of the City getting "jerked around." He recommended adhering to the ten day time frame. The City Attorney reported some of what has delayed the purchasers is constructing the memorandum of understanding to be attached to the contract and working out the details for the purchase of the remainder of the garage. He stated it is difficult in that he is dealing with the purchasers by telephone. The City Manager questioned if the City Attorney had given them every opportunity to make themselves available. The City Attorney indicated he had. Commissioner Berfield stated the City is fairly close to closing the deal and the ten days are not currently up. She indicated Mr. Mackey will not see Mr. Krumm until Thursday or Friday of this week and October 21, 1993 would be the day to sign the agreement. She stated if it is not signed and the deposit not received by then, she would agree with Commissioner Thomas' recommendations. She requested the Commission be a bit more patient. Commissioner Thomas stated the only concession he would make was that it be ten working days which would make the deadline October 18, 1993 at 5:00 p.m. He stated otherwise, there should be a penalty for each day after at $10,000 the first day, $30,000 the next day, etc. The City Attorney reported he has had plans for the last six months to be out of town this weekend. He requested the date be October 21, 1993. Commissioner Thomas stated he would agree to the date, October 21, 1993, as long as after that date the building would go up in price $100,000. There would then be an additional five days. If the contract is still not signed and deposit made, the building's purchase price would increase another $100,000. After another five days has elapsed, if there is no contract or deposit, the contract would be terminated. Commissioner Deegan accepted these conditions to be part of his motion. The seconder agreed. Upon the vote being taken on the amended motion, Commissioners Berfield, Deegan and Thomas voted "Aye." Commissioner Fitzgerald and Mayor Garvey voted "Nay." Motion carried. The City Manager referenced Commissioner Thomas' request to move the October 21, 1993 Public Hearing regarding City Hall to the Annex. As this is a regular meeting and notices have been sent for other public hearings, he requested another date be set. Commissioner Thomas questioned how much time would be needed to schedule a separate meeting. The City Clerk indicated it would depend on how much notice Vision Cable would need. Commissioner Fitzgerald expressed reluctance to schedule a meeting where it could not be broadcast live. Commissioner Thomas stated as a result of public input, there may be a decision to place the question on the January ballot. Commissioner Deegan felt the public hearing could be accommodated on October 21, 1993. Consensus of the Commission was to not hold the public regarding City Hall as a part of the regularly scheduled Commission meeting of October 21, 1993 and that a separate meeting be established based on Vision Cable's ability to air the meeting live. Commissioner Thomas requested the City aggressively advertise the date. The City Manager indicated he will have the public hearing at the earliest date at which Vision Cable can accommodate it. He advised the Commission that the time line for the City Hall project would be moved do to the delay. The meeting adjourned at 5:45 p.m.