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HomeMy WebLinkAboutGDC Offer for Bond Settlement..s General Development Corporation Mayor Pat Flood City of Sebastian P. 0. Box 127 Sebastian FL 32958 Dear Mayor Flood: Wayne L. Allen Vice President and Assistant General Counsel December 26, 1978 In accordance with our discussion, I further researched the surety bond premium payments question. Enclosed is a copy of a June 1, 1970 letter from Frederick E. Roach, President of General Development Corporation, addressed to the City Council. This letter outlines the only program of which I am aware that Genera is to make payments to the City for savings on surety bond premiums. The amount in question and for which the premium savings are due the City is on bonds totalling $318,539. The City's one-half of the premium savings is $1,195 according to the attached letter. Since you have requested that we make this payment to the City, I am enclosing our check in the amount of $9,560 to cover our payment to the City in accordance with the enclosed letter. I must point out that if matters concerning road and drainage submissions and acceptance by the City should ever go to litigation, we are not by this payment waiving our rights to any set -offs due because of the failure of the City to accept various road submis- sions we have made over the years. We look forward to continuing our discussions with the City on the remaining issues that are involved with roads and drainage in the City in accordance with my prior letter. Sincerely, Wayne L. Allen cc: L. B. Vocelle, Esq. City Attorney 1111 South Bayshore Drive, Miami, Florida 33131 Telephone 305 350 1231 r -e June 1, 1970 City Council o City of Sebastian Post Office Box -127 Sebastian, Floti is 32958 Gentlemen: 91 T RECEI �Vi" r WAYNE: L. ALLLiA FEB - 41OJ76 This will confirm our proposal to divide 50/50 any surety bond premium sa✓Lngs with tine' City, in consideration of the City's acceptance of t,j,�-Company's performance bond (executed original enclosed) in lieu of tha currently outstanding surety bonds being held by the City. it is understood this proposal covers the following numbered surety bonds: 2108981, 2108982,.2108984, 2108985, 2108985, 2108987 and 2117881. w`.ticn there was outstanding improvement obligations in the total •�-.-z of $318,539. as of January 1, 1970. The premium rate for said oL�igacions is $2,390., one half of which (or $1,195.) we agree to pay to the City upon receipt of appropriate surrender and release of the foregoing numbered bonds. Such. amount shall, at the Company's option, be payable in cash or services. The Company shall on each successive anniversary date of the enclosed performance bond share 50/50 such premium savings as is equivalent the usual bond premium rate for the dollar amount of improvements remaining outstanding. it should be understood that as the improvements are -�.__.-- ----. ---.__...._`....--; completed th:� you at :iuc:i sav3-ng�'J.Y•11. -diming Your cooperation in rocexIi: xzegut iac ivn:� •lztkt tl�.c: Com.;�� 1j ';: �.� L-ze.; �nL�c - tives is appreciated. FE Raps e,iclosure cc:• L. B. Vocelle, Esq. %'Ery truly yours, Frederick E.* Roach President General Development Corporation Mayor Pat Flood City of Sebastian P. O. Box 127 Sebastian FL 32958 Dear Mayor Flood: Wayne L. Allen Vice President and Assistant General Counsel December 26, 1978 In accordance with our discussion, I further researched the surety bond premium payments question. Enclosed is a copy of a June 1, 1970 letter from Frederick E. Roach, President of General Development Corporation, addressed to the City Council. This letter outlines the only program of which I am aware that General is to make payments to the City for savings on surety bond premiums. The amount in question and for which the premium savings are due the City is on bonds totalling $318,539. The City's one-half of the premium savings is $1,195 according to the attached letter. Since you have requested that we make this payment to the City, I am enclosing our check in the amount of $9,560 to cover our payment to the City in accordance with the enclosed letter. I must point out that if matters concerning road and drainage submissions and acceptance by the City should ever go to litigation, we are not by this payment waiving our rights to any set -offs due because of the failure of the City to accept various road submis- sions we have made over the years. We look forward to continuing our discussions with the City on the remaining issues that are involved with roads and drainage in the City in accordance with my prior letter. Sincerely, Wayne L. Allen cc: L. B. Vocelle, Esq. City Attorney 1111 South Bayshore Drive. Miami, Florida 33131 Telephone 305 350 1231 IQ 1111 South Bayshore Drive Miami, Florida 33131 General Development Corporation 117 5 0 PAY TO THE ORDER OF: City of Sebastian PO Box 127 Sebastian, Fla. 32958 OPERATING ACCOUNT 111 SOUTHEAST FIRST NATIONAL BANK OF MIAMI 53-58 MIAMI, FLORIDA 660 me L 17 SOO 1:0 660-00 Sal: VOID IF NOT CASHED BY 180 DAYS FROM THIS DATE: December' 27, 1978 • lNYI 11..j1�� PAY THIS AMOUNT BY AUTHORIZED REPRESENTATIVE: 006 604 3u' t'::.... Premiums due to City of Sebastian on surety bonds D:TACN ■CPC*W CASNM6 AND Rt TA/" FON TDtw Ni CORDS *****S9,560.00** LJ June 1, 1970 City council o City of Sebastian Post Office Box -127 Sebastian, Flori is 32958 Gentlemen: RECEi ;'F rD q WAYNE L. ALLLA FEB- 41°76 LES This will confirm our proposal to divide 50/50 any surety bond premium sa ✓,ngs with t'ie• City, in consideration of the City' s acceptance of the Company's performance bond (executed original enclosed) in lieu of .the currently outstanding surety bonds being held by the City. it is understood this proposal covers the following numbered surety bonds: 2108981, 2108982,.2108984, 2108985, 2108986, 2108987 and 2117881 f; _r which there was outstanding improvement obligations in the total •£.-z of $318,539. as of January 1, 1970. The pzemium rate for said • o'i;�igacions is $2, 39Q. , one half of which (or $1,195.) we agre�c to pay to the City upon receipt of appropriate surrender and release of th9 foregoing ndmbered bonds. Such amount shall, at the Company's option, be payable in cash or services. The Company shall on each successive anniversary date of the e;lclosed performance bond share 50/50 such premium savings as is equivalent the usual bond premium rate for the dollar amount of improvements remaining outstanding. It should be understood that as the improvements are - cd i�=such sa�inr.-, z•??.1_L d.inu.ni.^r .. cornpletcd th Your cooperationin roc eni: ��egc�ti,ac ion . f lilt tt�.F: CompGx:.y` e�'��e `=11L -;c - tives is appreciated. Very truly yours, Frederick E.* Roach President FER:ps e ,;closure cc:- L. B. Vocelle, Esq. December 22, 1978 Mr. Wayne L. Allen Vice President and Assistant General Counsel General Development Corporation 1111 South Bayshore Drive Miami, Florida 33131 Dear Wayne: RE: Our telephone conversation of December 21, 1978 At our Workshop Meeting on January 3, 1979, I will be recommending to the Council that the City of Sebastian request General Develop- ment Corporation to revert to surety bonds as we once held instead of the corporate bonds now on hand. If General Development Copporation feels that they have a good reason for staying with the corporate bonds, I would suggest that representa- tives) from the company be present to defend this action. Adso, I feel that we should go back to the July time frame for negoti- ations for the streets and swales and we can take these things up one step at a time adding the weirs and dams later. Very truly yours, Pat Flood, Jr. Mayor PF:1 r General Development Corporation December 20, 1978 Mrs. Florence L. Phelan City Clerk City of Sebastian P.O. Box 127 Sebastian FL 32958 Dear Mrs. Phelan: Wayne L. Allen Vice President and Assistant General Counsel In reference to your letter of December 12, 1978, please be advised that there is no problem at all in extending the thirty (30) days mentioned in my December 7, 1978 letter. Please consider this letter as an extension of said time period until January 30, 1979. Sincerely, WLA/hw cc: Mayor Flood L. B. Vocelle, Esq. 1111 South Bayshore Drive, Miami, Florida 33131 Telephone 305 350 1231 I December 12, 1978 CERTIFIED MAIL Mr. Wayne L. Allen Vice President and Assistant General Counsel General Development Corporation 1111 South Bayshore Drive Miami, Florida 33131 Dear Mr. Allen: With reference to your letter dated December 7, 1978, regarding your formal proposal to the City for resolving the roads and drainage problems, we did not receive this letter until December 11. The City Council, at their regular Council Meeting on December 11, agreed that your deadline of thirty (30) days from the date of your letter, did not allow very much time for consideration especially with the holiday season upon us. Our city attorney, Mr. L. B. Vocelle, could like to be able to make a closer inspection of the roads. We hope, therefore, that since we are taking action, you will not insist upon holding to this deadline and will allow us more time to study your proposal in all its aspects. FLP: 1r CC: Mr. L. B. Vocelle Very truly yours, Florence L. Phelan City Clerk P • General Development Corporation 0 Mayor Pat Flood CITY OF SEBASTIAN P.O. Box 127 Sebastian FL 32958 December 7, 1978 Re: Roads and Drainage Problems Dear Mayor Flood: Wayne L. Allen Vice President and Assistant General Counsel I want to thank you and the rest of the City Council for the time taken to tour the various areas in Sebastian on Wednesday, November 15, 1978. While we may not agree on all the points which we discussed, I think we all now have a better appreciation of each other's position and a better understanding of the problems. The purpose of this letter is to make a formal proposal to the City for resolving the roads and drainage problems, and for finalizing once and for all our respective responsibilities in these areas. First, let me say that we are willing to continue under the 1976 agreement, but we have entered into these negotiations and discussions and are making this further proposal because we understand that the 1976 agreement is no longer acceptable to the City. We would agree to the following terms and conditions and would execute an agreement with the City which contains the following: 1. The City, by ordinance, releases all performance bonds posted with the City, which guarantee the completion of roads and drainage facilities, and maintenance. 2. The City, by ordinance, accepts all roads and drainage faci- lities in Units 2 through 15. 3. General will place in an escrow account, with a local bank, funds sufficient to guarantee the repaving of all roads in Units 2 through 15 found to be deficient in having one_ inch of asphalt paving, based upon core borings taken every 1,000 feet, within a plus or minus one-quarter inch on the average. Additonally, areas in these units showing obvious evidence of a deteriorated surface, i.e. potholes, will be repaved. 1111 South Bayshore Drive, Miami, Florida 33131 Continued.... Telephone 305 350 1231 Mayor Flood Re: Roads and Drainage Problems November Page -2- 4. General will obtain an easement through the Boy Scouts property and will provide the technical expertise, engineering, and documents sufficient for the City to file an application in its name for a permit to provide drainage relief through the property. 5. General will donate to the City a 12 -acre park site ($19,161 cost, City to offset the surety bond premiums due, estimated at $9,560). 6. General will defend the City and further will indemnify and save the City harmless from any and all actions brought by purchasers of property from General who have any complaints or legal actions against General in regard to the location and construction of drainageways. 7. General will place in escrowl$125,000.00 which the City can use as a basis for developing its own road and drainage maintenance program. These funds can be used as a basis for purchasing or leasing equipment, or for actual paving work, at the City's option, while he City develops its own long range program, and also prov de for sufficient tax revenues to run such a program on a continuing basis. We would not object to the City using thele funds for any paving work it desires,for drainage maintenance or for the construction of a weir in Collier Creek, or the reconstruction of the dam in Lake Hardee. This offer of settlement will regain open for a period of thirty (30) days from the date of this letter W would appreciate hearing from the City as to this proposal and as to an; counter proposals that the City would care to make. We feel that thes negotiations have progressed to the point now where we should seek t define areas of agreement and also those areas we need to discuss further. Sincerely, WAY E L. ALLEN Vic President & Ass . General Counsel WLA/hw cc. L.B. Vocelle, Esq.