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5283-92 ORDINANCE NO. 5283.92 AN ORDINANCE OF THE CITY OF CLEARWATER, 'FLORIDA, PROVIDING THAT A PORTION OF THE "MAAS BROTHERS PROPERTY" BE SOLD FOR $750,000.00 TO THE FLORIDA GULF COAST ART CENTER, INC., TO BE DEVELOPED, MAINTAINED, AND OPERATED AS AN ARTS FACILITY, AS DEFINED HEREIN; DECLARING SUCH PROPERTY TO BE SURPLUS AND NO LONGER NEEDED FOR PUBLIC USE; PROVIDING FOR USE RESTRICTIONS AND A REVERTER CLAUSE; PROVIDING FOR A SPECIAL ELECTION TO BE HELD ON NOVEMBER 3, 1992, IN CONJUNCTION WITH THE GENERAL ELECTION IN ORDER TO SUBMIT THE PROPOSED SALE TO THE QUALIFIED VOTERS OF THE CITY FOR APPROVAL; PROVIDING AN EFFECTIVE DATE. WHEREAS, Section 2.01{d} of the Charter of the City of Clearwater provides that no real property shall be given away or donated without the prior approval of the qualified voters of the City at referendum, and that the real property mast be declared surplus and no longer needed for public use at an advertised public hearing; and WHEREAS, the Florida Gulf Coast Art Center, Inc., has proposed to construct, maintain, and operate an arts facility, as described herein, to be located on a portion of the "Maas Brothers" property at Cleveland Street and Osceola Avenue, to be purchased in accordance with the terms set forth in this ordinance; and WHEREAS, the establishment of an arts facility at this location is consistent with the recommendations of the Maas Brothers Task Force; and WHEREAS, the City Commission finds that the sale of the property to the Florida Gulf Coast Art Center, Inc., for the purpose of establishing an arts facility, as described herein, would be in the best interest of the residents of the City and would serve a proper public purpose; and WHEREAS, the City Commission finds that the purchase price set forth herein is a fair price for the property, considering the use limitations to be imposed upon the property, the right of reverter to be retained by the City, and other considerations; and WHEREAS, the City Commission further finds that a sale of the property to N the highest competitive bid above the appraised value would not necessarily be in the public interest, and desires instead to proceed as if the property were being given away or donated subject to the approval of the voters of the City at a referendum to be held for such purpose; now, therefore, BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF CLEARWATER, FLORIDA: Section 1. The eastern half, more or less, of the property known as the "Maas Brothers" property, as described more particularly in Exhibit A to this ordinance (which eastern half, more or less, is referred to herein as the "Property"), consisting of approximately 85,125 square feet, is hereby declared to be surplus and no longer needed for public use. Section 2. The sale of the Property to the Florida Gulf Coast Art Center, Inc. (the "Center"), for the sum of $750,000.00 is hereby approved subject to the following terms and conditions, which shall be incorporated in the contract for sale and purchase of the Property, shall survive closing, and shall be incorporated in the instrument of conveyance as covenants and restrictions to run with the land and be binding upon heirs, successors and assigns of the Center: (a) The Property shall be used as an arts facility, which is defined to mean as set forth in Exhibit B to this ordinance, and for no other purpose. (b) The City shall demolish the existing building on the Property at the City's expense prior to closing. Notwithstanding the demolition of the building, the Center shall have the right to construct its building on the whole Property subject to applicable setback, open space, vista, and other requirements of the City's Code of Ordinances. (c) The development of the Property by the Center shall be subject to the applicable ordinances of the City, and the site plan shall be subject to review and approval by the City Commission, in the same manner and subject to the same rules which apply to similarly situated properties. The site plan shall include, 2 !i S? 83 - 9? but not be limited to, the following: 1. Provision for all of the Center's required parking on the site, and provision for access and parking easements to and from other parking facilities which may be constructed on adjacent properties, to be granted by the Center to the City, matched by similar easements to be granted by the City to the Center, to accommodate reciprocal and shared usage of on-site and off-site. parking facilities by the Center and its employees and patrons and by the general public; 2. Provision for retention of stormwater as required by the City for new developments, which may include on-site and off-site drainage and retention easements to be established as part of a master drainage plan for the City-owned property north of Cleveland Street and west of Osceola Avenue, as may be approved by the City; and 3. Provision for a civic room/auditorium to be not less than 350 and not more than 500 seats. (d) The Center shall observe the following schedule: I. The closing on the sale shall be not later than November 3, 1994. 2. A complete and acceptable application for the building permit for the building shall be filed with the City not later than November 3, 1995. "Complete and acceptable" means that the application is complete in all respects and accompanied by plans which comply with the requirements of the Clearwater Code of Ordinances, all fees have been paid, and any variances or approvals of other governmental agencies, if any are required, shall have been obtained. 3. Construction of the building shall commence within six months of issuance of the building permit, and the construction shall be prosecuted to completion such that the certificate of occupancy shall be issued not later than November 3, 1997. After commencement of construction, the Center and the City shall agree to reasonable extensions of time when necessary for reasons beyond the control of the Center, provided that such extensions shall not extend the 3 6'o2K3- ya 0 deadline for completion of construction beyond November 3, 1998. (e) The Center shall cause its financial records to be audited annually, and shall provide a copy of the audit report to the City not later than December 31 each year. (f) . Beginning with the month of January, 1993, and ending on the month prior to closing, the Center shall pay to the city the sum of $1,500.00 on or before the 15th day of each month during such term. The monthly payments from the Center to the City shall be nonrefundable and shall be paid as additional consideration over and above the $750,000.00 purchase price for the purpose of defraying the out-of-pocket costs incurred by the City when maintaining the Maas Brothers building. The center shall be relieved of its obligation to continue payments under this sub-section after the City exercises its rights of reverter, or after the Center notifies the City of its inability to close the purchase of the Property, thereby terminating the contract. In no event shall the sum of all payments made under this sub-section exceed $33,000.00. (g) The Center may not assign, convey, transfer or encumber any of its rights under this ordinance, or the contract for purchase and sale of the Property or any of its rights thereunder, or the Property or any rights therein, without the express prior consent of the City. The conversion of the corporate status of the Center from a corporation not for prof it to a corporation for profit, or from a nonstock nonprofit corporation to a stock share nonprofit corporation, shall require notice to and the approval of the City prior to such conversion. (h) The Center is a tax-exempt organization pursuant to Section 501(c)(3) of the Internal Revenue Code of the United States, and has represented to the City that it intends to retain its tax-exempt status indefinitely as an inducement to the City to adopt this ordinance and enter into the contract for the sale and purchase of the Property. The Center has further represented to the 4 5? 93 ' 9A City that it intends to develop, operate, and manage the Property so as to qualify for exemption from property taxes. The loss of such tax-exempt status, from income taxes or property taxes, shall constitute a material breach of these covenants and grounds for the City to invoke the right of reverter retained by the City, unless the loss of tax-exempt status is due to reasons beyond the control of the Center such as changes in federal or state tax law. Nevertheless, in the event of loss of such tax-exempt status, the Center shall pay all such s taxes when due and shall not permit any tax to become a lien upon the Property i or any improvements thereto. It is understood that the Property shall not be exempt from special assessments, if any, which may be levied for improvements benefitting the Property. (i) The City retains a right of reverter which may be invoked, at the option of the City, at any time upon violation or noncompliance with the covenants and restrictions of the Center set forth in this section, following notice of such violation or noncompliance to be given by the City to the Center and a reasonable opportunity for the Center to take curative action. The right t. of reverter shall be superior to all liens and encumbrances and shall not be subordinated by the City to any other lien or encumbrance, except tax liens. It is the intent of the parties that, in the event of such reversion, the Property shall return to the City at no cost to' the City arid` free and clear of encumbrances upon the Property and any improvements thereto. Section 3. In addition to the terms and conditions set forth in Section 2 above, the sale shall be subject to the terms and conditions of a contract for purchase and sale to be entered into between the City and the Center not later than September 30, 1992, the original of which shall be maintained on file in the Office of the City Clerk. Section _4. The proposed sale shall be subject to approval by the qualified voters of the City. A special election for such purpose shall be conducted on 5 5'?;?Y3 '9.1 Tuesday, November 3, 1992, in conjunction with the general election, and the proposed sale shall be deemed approved upon the affirmative vote of a majority of the voters of the City voting at that time upon the following ballot question: CITY OF CLEARWATER, FLORIDA REFERENDUM QUESTION City of Clearwater Ordinance 5283-92 proposes to sell the eastern portion of the "Maas Brothers" property, after demolition of the building by the City, to the Florida Gulf Coast Art Center, Inc., for $750,000.00. The property shall be used only as an arts facility, as defined in the ordinance, with a right of reverter to the City. The proposal includes access, parking and drainage easements over nearby City-owned property. Shall Ordinance 5283-92 be approved? Yes (for the sale) No (against the sale) Section 5. This ordinance shall take effect immediately upon adoption, except that the proposed sale of the Property shall be subject to a contract for sale and purchase to be entered into between the City and the Center, and shall be subject to approval by the voters of the City as provided in Section 4. Section 6. This ordinance shall be recorded in the public records of Pinellas County, Florida, following approval by the voters of the City as provided in Section 4. PASSED ON FIRST READING September 3, 1992 PASSED ON SECOND AND FINAL READING AND ADOPTED AS AMENDED September 17, 1992 Rita Garvey Mayor-Commissioner Attest: Approved as to form and correctness: Cynt is E. Goudeau M. A. Ga ait Jr. Cit Clerk City Attorney 6 E ? Sa?3 -5? A 0 Lot 3, less the East 15 feet thereof, and all of Lots 4 and 5, Edward Mill's Subdivision, according to the plat thereof recorded in Plat Book 9, Page 36, of the public records of Pinellas County, ' Florida, and a portion of Lots 1 and 1-A, Rompon's & Baskin's Corrected Map of Causeway Business District, according to the plat thereof recorded in Plat Book 57, Pages 1 and 2, of the public records of Pinellas County, Florida, being more particularly described as follows: BEGIN at the Northeast corner of said Lot 1, thence S 01°26'17" E, along the East line of said Lot 1 and the Nest line of the East 15 feet of said Lot 3, said line also being the West right-of-way line of Osceola Avenue, for 224.38 feet to a point on the South line of said Lot 3; thence N 89°58'26" W along the South line of said Lots 3, 4 and 5, and the South line of said Lot 1-A, said line also being the North right-of-way line of Cleveland Street, for 389.00 feet; thence departing said line, run N 00°00'15" W for 217.30 feet to a point on the North line of said Lot 1; thence along the North line of said Lot 1 for the following two (2) courses: (1) S 89°58'26" E for 172.65 feet; (2) N 88°07'14" E for 210.85 feet to the POINT OF BEGINNING. LESS the following described property: Portion of Lot 3, Edward Mill's Subdivision, according to the plat thereof recorded in Plat Book 9, Page 36, of the public records of Pinellas County, Florida, being more particularly described as follows: Commence at the Northeast corner of Lot 1, Rompon's and Baskin's Corrected Map of Causeway Business District, according to the plat thereof recorded in Plat Book 57, Pages 1 and 2, of the public records of Pinellas County, Florida, thence run South 01°26'17" East along the East line of said Lot 1, and the West line of the East 15 feet of said Lot 3, said line also being the Hest right-of-way line of Osceola Avenue, for 134.38 feet to the POINT OF BEGINNING; thence continue along said West right-of-way line of Osceola Avenue South 01°26'17" East, 90.00 feet to a point on the South line of said Lot 3; thence run North 89°58'26" West along the South line of said Lot 3, 71.93 feet to a point on a non-tangent curve concave to the Northwest; thence along the arc of said curve having a radius of 90.00 feet, a chord bearing of North 37°45'45" East, a chord length of 113.77 feet and an arc length of 123.15 feet to the POINT OF BEGINNING. EXHIBIT A •r r"^v_, The property shall be used as an arts facility and for no other purpose. The term "arts facility" is defined as a non-profit institution which is recognized as an organization exempt from federal income tax under Section 501(c)(3) of the Internal Revenue Code of 1986, which is essentially educational and aesthetic in purpose, which owns, borrows and/or leases art objects and cares for them for the general purposes of encouraging the appreciation of, advancing the skills relating to, and promoting the understanding of the visual arts. To further the general purposes of the arts facility, the institution shall have the right: 1. To promote education in the arts and humanities; 2. To build, equip, maintain and operate studios for the development of production skills relating to art; 3. To maintain museums and other facilities for the preservation, display, appreciation and performance of art, including buildings, equipment, galleries, lecture halls, classrooms, roadways, parking facilities and related structures; 4. To maintain a library for the collection of books, manuscripts, periodicals, photographs, films and other similar data relating to art; 5. To cooperate with the United States Government, the State of Florida and their various political subdivisions and with civic, educational and artistic groups and foundations in the encouragement of the creation and appreciation of t art of all kind; f: 6. To build, equip, maintain, operate and lease a community room; 7. To build, equip, maintain, operate and lease dining and/or catering facilities, provided however, that the total square footage of any restaurant which may be operated shall not exceed 25 percent of the total square footage of the art facility, exclusive of parking areas, terraces and outdoor patios; 8. To build, equip, maintain and operate all facilities ancillary to the general and specific purposes described above, provided, however, that the operation of all ancillar facilities shall be limited to the activities specified in Section 501(c (3) of the Internal Revenue Code of 1986, and the regulations thereunder. EXHIBIT 0 i 0 .? ?. , r . .... .... .r •aq+Y'"i?'++..t.aRlX*1.h'?L,v . ? `e : . ; a?«? . BALLOT LANGUAGE CITY OF CLEARWATER, FLORIDA REFERENDUM QUESTION CITY OF CLEARWATER ORDINANCE 5283-92 PROPOSES TO SELL THE EASTERN PORTION OF THE "MAAS BROTHERS" PROPERTY, AFTER DEMOLITION OF THE BUILDING BY THE CITY, TO THE FLORIDA GULF COAST ART CENTER, INC., FOR $750,000.00. THE PROPERTY SHALL BE USED ONLY AS AN ARTS FACILITY, AS DEFINED IN THE ORDINANCE, WITH A RIGHT OF REVERTER TO THE CITY. THE PROPOSAL INCLUDES ACCESS, PARKING AND DRAINAGE EASEMENTS OVER NEARBY CITY-OWNED PROPERTY. SHALL ORDINANCE 5283-92 BE APPROVED? YES (FOR THE SALE) NO (AGAINST THE SALE) i v? t, S ?l s