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HILLSBOROUGH COUNTY - ELAPP -I I .,~ CITY OF CLEARWATER Interdepartmental Correspondence Sheet DATE: Betty Deptula, Interim City Manager M. A. Galbraith, Jr., City Attorney ~ Sale of Property to Hillsborough County ("ELAPP") March 15, 1994 TO: FROM: RE: Earl Barrett and I have reviewed the proposed sale and purchase contract with Hillsborough County for the "sludge farm" property, and have the following comments, in descending order of importance (more or less): 1. The "Restoration Account." The city clerk and I have the understanding that the city commission wants to set up the $200,000.00 for site restoration as a "drawdbwn" with all leftover funds to revert to the City. Her recollection is that this amount would be retained by the City until drawn down for the purpose of paying restoration costs. This contract calls for all of the purchase price to be paid to Hillsborough County at the time of closing (Paragraph 2) and then the $200,000.00 would be paid from the sales proceeds into an interest bearing account to be known as the "Restoration Account" to be used for restoration expenses or else the balance is to be refunded after ten years (Paragraph 14). It is not clear where this account will be located; the inference is that the money will paid over to the Clerk of the Circuit Court. It is not clear who will pay the Clerk's fees--if any--to handle the account and issue the annual statements. It is implied, but not clearly stated, that the interest will be retained in the account with the principle; it is not clear who will get the interest if and when a refund is made (the interest should be either used for the same purposes for which the principle may be used, or refunded to the City). To your recollection, does the city commission expect the City to hold the funds and make payments for restoration expenses? Or is it sufficient to allow Hillsborough County to hold the funds as described in Paragraph 14? 2. Use restrictions. During the meeting, the mayor expressed concerns that there be a guarantee that the land could never be used for development if the County should ever decide to sell. The response from Mr. Gremley was that a county ordinance states that property acquired through the ELAPP program is to be used for the purpose of preservation and recreation in perpetuity and can be sold only to another government entity for the same purposes. The motion to accept the offer did not include the imposition of a use restriction. By copy to Mr. Gremley, I am asking him to do one of two things: (a) document the limitations imposed by the ordinance and the rights the City would have under 1 '\ ~: F f 1 I .- it, or (b) draft a use restriction to appear on the face of the deed and run with the land. 3. General warranty deed? The contract calls for the City to convey title by a general warranty deed (Paragraph 4). I will reserve an opinion on our ability to deliver a general warranty deed until I see what kind of title we have; if the City took title by a special warranty deed or less, I would be reluctant to give the buyer anything greater. I have asked for a copy of the deeds by which the City took title, and I have asked that work begin on a title policy even though we do not yet have a signed contract. 4 . Other terms? Mr. Barrett has asked me whether this includes all of the terms of the agreement. His specific question is whether a transfer of development rights is available to benefit other City-owned property nearby. I am raising this issue for Mr. Gremley's information, and to ask if this is an issue we can resolve. This would "sweeten the pot" for the corrunissioners who were less than enthusiastic about the sale price. 5. Typos. There are a few minor errors to be corrected: --On page 3, Paragraph 6(c) has a reference to Paragraph 6 that probably should be changed to Paragraph 7, relating to the survey. --Also, the second sentence in the last paragraph of Paragraph 6 (c) is garbled; the phrase, "the Seller shall," between "days" and "notify Buyer" probably should be deleted. --On page 6, five lines from the top, "there" should be "its" (before "sole opinion"). MAG: a Copies: Cynthia Goudeau, City Clerk Kathy Rice, Assistant City Manager Earl Barrett, Real Estate Services Manager Kurt G. Gremley, ELAPP Acquisition Manager (via fax to 813-272-5597) RECEIVED MAR 1 6 1994 CITY CLERK DEPT.