TO: Chair and Members of the Board
FROM: Diane Colonna, Executive Director
DATE: September 16, 2015
Title
APPROVING THE PURCHASE OF THE PROPERTY LOCATED AT 6280 WEST ATLANTIC BOULEVARD FOR $312,061.74; PROVIDING FOR A NET LEASE BACK OF THE PROPERTY UNTIL DECEMBER 31, 2015 FOR $200 PER MONTH AND INDEMNIFICATION BY TENANT.
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BACKGROUND:
The City of Margate and the Alzheimer's Family Center (the Center) have had a close relationship for many years. The City has paid expenses up front for the Center as provided for in the Agreement between the City and the Center dated June 28, 2007. At this time, the City's records indicate that the City has paid out $500,118.04 more in expenses that it has received from the Center.
At the March 18, 2015 City Commission meeting, the City Commission voted to terminate the Agreement with Center and authorized the administration to negotiate a settlement, if possible, with the Center to recoup the above monies. After discussions with the representatives of the Center, requests for financial records, and research of same, the following general terms were negotiated for settlement of all claims of the City against Center.
1. The Margate Community Redevelopment Agency (MCRA) will purchase the property of the Center, located at 6280 W. Atlantic Boulevard for $312,061.74.
2. The MCRA will pay all closing costs related to the transaction (with the exception of payment of up to $2,000 by the Center for Seller closing costs).
3. The Center will be allowed to occupy the property until December 31, 2015 upon payment only of maintenance, utilities, etc. and $200 per month.
4. The Center will provide for insurance for their operation during the time of occupancy by the Center, indemnifying the MCRA for any claims related to the property.
Monies presently held by the City in the amount of $33,179.03 as an unemployment compensation reserve by the Center, would be applied against the amounts owed by t...
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