LETTER REGARDING BULLARD AGREEMENT
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FROM:
Frank X. Kowalski, Chief Assistant City Attorney
CITY OF CLEARWATER
Interdep.rtment Correspondence Sheet
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TO:
Anthony L. Shoemaker, City Manager
cOPIes:
SUBJECT: City of ClearwaterlBullard Agreement
DATE:
May 19, 1981
I am in receipt of a packet of docwnents which you forwarded to assist me
in advising you on certain questions relating to the transaction among the
City, SWFWMD, and Mr. Fred Bullard.
Your first question involves the sufficiency of the enclosed letter from
Mr. Hastings dated May 11. I find that letter to be es~ially in the form
agreed to at a meeting attended by Mr. Hastings, Mike Kenton and myself.
I am of the opinion that the letter constitute s sufficient documentation to
prove that Mr. Bullard's carrying charges on Parcels A & C exceeded 12%
per annum on the principal sum of $633,400; that is to say, if Mr. Bullard
had closed on the day the agreement with the City had been executed, I am
satisfied thathe could have inve sted the proceeds in an intere st- bearing
account at a rate exceeding 12% per annum.
I indicated to you earlier that the agreement between the City and Mr. Bullard
does not refer specifically to carrying charges, but rather requires the City
to compensate Mr. Bullard for interest he has paid on loans to secure Parcels
A and C. You, Max Battle, and Mike Kenton (as well as Mr. Hastings) have
stated that the intent of the parties was to compensate Mr. Bullard for his
carrying charges. If that was our intention, I believe Mr. Bullard is entitled
to the full benefits of that agreement, that is, carrying charges at the rate of
12% per annum on the principal sum of $633,400, from the date of the
agreement to the date of closing, providing of course that Mr. Bullard does
not act to delay the closing.
'.....,..
I have not computed.the interest charges, but I asswne that you have not
reque sted that I attempt to verify the calculations.
I hope this responds to your inquiry.
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May 11, 1981
Mr. Anthony L. Shoemaker
City Manager
P.O. Box 4748
Clearwater, FL 33518
Dear Mr. Shoemaker:
RE: City of ClearwaterlBullard Agreement
The undersigned represents Fred B. Bullard, Jr., relating to the above
agreement. My client has authorized the undersigned to make representations
concerning this matter.
On November 26, 1980, the undersigned, Mr. Bullard, Mr. Shoemaker, Mr. Kenton,
Mr. Battle and Mrs. Haeseker, together with two representatives from Mr. Bullard's
office, Mr. Adams and Mr. Harris. During the meeting, it was agreed and
understood that Mr. Bullard would convey Parcels "A" and "e" to SWFWMD for
the benefit of the City of Clearwater and others.
Mr. Bullard was agreeable to the terms, which included consideration in the
sum of $20,000 per acre, for a total purchase price of $633,400.00. To
compensate Mr. Bullard for the costs of carrying Parcels "A" and "c" from
December 1, 1980, until the closing with SWFWMD, the parties agreed that
the City would reimburse Mr. Bullard for interest charges (carrying charges)
at a rate equivalent to Mr. Bullard's actual loss, not to exceed 12% per
annum.
On May 11, 1981, I discussed these matters with the City Manager, his legal
counsel, and advisors, and the undersigned stated based upon Mr. Bullard's
representatives to to the undersigned that Mr. Bullard's carrying costs
exceeded 12% per annum on Parcel "A" and "e" from December 1, 1980.
Based upon the understandings reached by the parties on November 26, 1980,
and May 11, 1981, the carrying charges would be calculated by computing
12% per annum on the purchase price of $633,400.00 from December 1, 1980,
to the date of closing. If the closing occurs on May 12, 1981, the interest
due Mr. Bullard from the City would be $33,943.30.
Sincerely,
By
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CITY OF CLEARWATER
INTER-OFFICE COMMUNICATION
/. 6/ DATE
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FROM .1S(~,-(1 /~.fUlf r!:1I"J
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SUBJECT
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o PLEASE REPLY ON REVERSE SIDE
CITY OFCLE1RWATER . AUTHORIZATION FOR DI1'URSEMENT
PAY FROM FUND
PAY TO Sound Builders. Inc.
c/o Fred Bullard
CODE
DESCRIPTION:
Per agreement between the City of Clearwater and
Fred Bullard, dtd. 1/23/81, paragraph. 7, wherein the
City agreed to pay the interest on the principal on the
loan obtained by Bullard on parcels A & C, to be purchased
by SWFWMD*, from December 1, 1980, until the date of
closing between Bullard and SWFWMD, at a rate not to exceed
12% per annum based on actual interest rate paid by Bullard.
Closing between Bullard and SWFWMD set for May 12, 1981.
(*,SOu)t,hwest Florida Water Management District.
Send check to:
315-1-2432-722-
000000-541
M~y 11, 1981 19_
AMOUNT
s
33,943.30
Total $ 33. 943.30
APPROVED
Other
FOR FINANCE DEPT. USE ONLY
( TYPE THE FOllOWING IN THE lOWER lEFT CORNER OF CHECK:
RECEIVE INTO ABOVE FUND & CREDIT
KEYPUNCH:
( TYPE G/L REFERENCE
CITY OF CL.RWATER - AUTHORIZATION FOR ,SBURSEMENT
PAY FROM FUND
PA Y TO Sound Builders , Tnc.
c/o Fred Bullarj
CODE
DESCRIPTION:
Per agreelEent bet\Jeen the City of Clearwater and
Fred Bullard, dtd. 1/23/81, paragraph 7, wherein the
City agreed to pay the interest on the principal on the
loan obtained by Bullard on parcels A & C, to be purchawed
by SWFHtm*, from December 1, 198Cl, until the date of
closing bet,V'een Bullard and SHTIli,m, at a rate not to exceed
12% per arnur:t based on actual interest rate paid by Bullard.
Closing bet'.,leen Bullard and SIITP''":) set for Hay 12, 1981.
*Southwest Florida Hater ;'tananer':lCmt District.
( l Send check to: 'j
31 'i-l--?ff32-722-
00n'l')f)- Sft 1
~ 11, 1981 19
AMOUNT
$
'3 '3 > 94'3 30
Total $ ~';I, Q"~ ~fl
APPROVED
APPROVED
Department Head/Project Manager
Other
FOR FINANCE DEPT. USE ONLY
TYPE THE FOllOWING IN THE lOWER lEFT CORNER OF CHECK:
RECEIVE INTO ABOVE FUND & CREDIT
KEYPUNCH:
M"EMORANDUM TO:
The City Commission of the City of Clearwater
I
Agenda No. 2 I 6
Meeting Date: 3/19/81
S U BJ EeT: Agreement Between City and Fred Bullard, January 23, 1981.
RECOMMENDATION: Amend the subject agreement to extend the April 1, 1981
expiration date in paragraph 6 (a) to July 1, 1981 and to change where applicable, Fred
Bullard, to Sound Builders, Incorporated. '
~ And that the appropriate officials be authorized to execute same.
BACKGROUN 0: Because of unforeseen title problems involved with the purchase of
certain lands (described as parcel 102B in the Alli~ator Creek Water Management Project)
by the Southwest Florida Water Management District, for which Fred Bullard as a principal
of Sound Builders, Inc. holds a purchase option agreement, the subject agreement between
the City and Fred Bullard .cannot be fulfilled by the April 1, 1981 deadline for purchase
itemized in paragraph 6 (a). Unless this deadline is extended, the agreement becomes
null and void unless agreed upon by both parties. Fred Bullard has agreed to extension
and also desires to place the agreement in the name of Sound Builders, Inc. The South-
west Florida ,.rater Management District has requested this extension to allow adequate
time to resolve the title problems, hold the required public hearings, continue to commit
Mr. Bullard to the terms of his agreement with the City, and ultimately close on the
property.
? /3/1S()
Date a Sequentia I
Reference
Il9Not Required
a Not Required
Costs:
Funding Source:
o Capital Improve-
ment Budget
o Operating Budget
o Ot her
........
Commission
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Disposition:
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Advertised:
IlDAttachments:
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Dote:
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o Affected
Parties
Notified
of Meeting
Follow-up Action:/) /
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Submitted by:
City Manager
Paper:
Originating Deportment:
Public Works/Environmental Managem
Appropriatjon Code
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