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HomeMy WebLinkAboutNegotiations0 OQW °Cs� � Q �Qq Qoa MF OF pEIICAN 5 City of Sebastian POST OFFICE BOX 780127 ❑ SEBASTIAN, FLORIDA 32978 TELEPHONE (407) 589-5330 ❑ FAX (407) 589-5570 SUBJECT: GDC Bankruptcy Claim i City Manager Agenda No. % ' ;_qG) Dept. of Origin: City Manager Date Submitted: 04/17/91 Approved For Submittal By: For Agenda Of: 04/24/91 Exhibits: - 3 Pages - GDC Offer -3 pages - Exhibit "A" - Essential Contract Elements - 2 pages - Exhibit "C" - 4 pages - 1979 Agreement - 2/19/86 Palmer Opinion EXPENDITURE AMOUNT APPROPRIATION REQUIRED: BUDGETED: REQUIRED: SUMMARY STATEMENT On April 6, 1990, General Development Corporation ("GDC") filed for protection under Chapter 11 of the Federal Bankruptcy Laws. Since that date, GDC has failed to meet its obligations under the terms of a contract with the City dated August 15, 1979. On June 26, 1990, July 12, 1990, November 13, 1990, January 16, 1991, March 26, 1991, and again on April 9, 1991, I met with officials of GDC to discuss a possible agreement between GDC and the City. The effect of an agreement would be to relieve GDC of its obligations under the terms of the 1979 agreement. CITY OFFER GDC had previously been furnished copies of my report to City Council dated 1/29/91 regarding the bankruptcy and the City's response. - 1 - �D.�Z90 GDC OFFER At the March 26th meeting, GDC presented their view of the City's claim. This was done on a page marked "Discussions Only" and dated 3/14/91. GDC denied most of the City's claims totaling $4,460,256 and provided their own estimate of liabilities totaling $1,059,531. Although GDC presented this page for discussion, no one present could detail the reductions since, according to GDC officials present, it was prepared by GDC officials who were not present. I agreed to review it and discuss it in further detail at a subsequent meeting. At the April 9th meeting, GDC presented, again for "Discussions Only" a preliminary offer of various properties valued at $698,470. Attached was a detailed description of tract numbers and converted drainage lots. These two (2) pages are not dated, but are enclosed for your review. DEFICIENCIES IN GDC PROPOSAL The negotiating session of April 9th began by my questions of the GDC estimate of liabilities as presented on the page dated, 3/14/91. Again, the officials present could not give much detail on their rationale for reducing much of the estimate, but the following discussion is numbered in the same order as their page: 1. Unit 16 Street and Drainage. City estimate equals $220,700; GDC - $64,509; a reduction of $156,191. GDC offered no explanation other than that was their estimate to bring into compliance the street and drainage facilities in Unit 16. 2. Unit 17 Street and Drainage. City estimate equals $1,364,472; GDC - $739,222; a reduction of $625,250. GDC offered no explanation other than this was their estimate to bring into compliance the street and drainage facilities in Unit 17. 3. Elkcam Waterway. City estimate $1,531,250; GDC - $230,400; a reduction of $1,300,850. GDC denies any responsibility to construct seawalls in the major canals South of CR 512. The GDC estimate of $ 230,400 is their estimate to construct the water control structure on the Elkcam Canal, a project the City estimates at $300,000. GDC's response to the reduced estimate is that the bulk heads were GDC's obligations to property owners and not to the City. Balderdash! Paragraph 15 of the 1979 agreement explicitly requires GDC to construct these facilities. 4. Wentworth Ditch Realignment. City estimates $103,834; GDC - $ -0-; reduction of $103,834. GDC denies any responsibility for this grossly misaligned ditch stating that it existed prior to their development. However, GDC's drainage plans require a canal to be located in a rear yard easement. Paragraph 10 of the 1979 agreement states: - 2 - • • DEFICIENCIES IN GDC PROPOSAL (Continued) "X. General will indemnify and legally defend at not cost to the City and save the City harmless from any and all actions and judgments, if any, by purchasers of property from General who have any complaints or legal actions against General in regards to the location and/or construction of drainage ways in the City." Additionally, in paragraph 12 of the agreement, the City accepted only those drainage facilities which were "recorded in the Official Records of Indian River County." The misaligned Wentworth ditch is clearly not recorded in the official records of Indian River County. The City simply cannot accept something that does not exist. Nor is the City required to accept an "improvement" which is constructed on private property and not held by deed or easement by the City, namely the Wentworth ditch which is completely outside of the easement and on private property. In his legal opinion dated February 19, 1986, then City Attorney Thomas C. Palmer, Esq. opined that the City accepted only those drainage facilities which were properly aligned. Lastly, prior to bankruptcy, GDC would promptly respond to complaints from the City or property owners and correct misaligned ditches in all units of the Sebastian Highlands. Clearly, GDC's administration and practice of the 1979 agreement committed GDC to realign improperly aligned drainage facilities. S. Construction Contingency. The City estimate $322,000; GDC - estimate $ -0-; reduction of $322,000. GDC claims their should be no construction contingencies. Further, they claim that the contingencies in the City estimates were included in the cost estimates to bring street and drainage facilities in Units 16 and 17 into compliance with the 1979 agreement. GDC's assertion is nonsense and deserves no further explanation. A construction contingency of 10% is reasonable. 6. Unit 16 Stormwater Retention Lake. (Collier Waterway) The City estimate $695,100; GDC - estimate $-0-; reduction of $695,100. GDC's explanation for this reduction was that the stormwater lake was a part of the improvements of that portion of Unit 16, which is not yet constructed and therefore, the construction of this stormwater lake is not required at this time. However, when confronted with photo copies of the the recorded plats, which indicates that about 98% of the lake is in Unit 11, GDC continued to deny they had any responsibility for its construction. They also said that permits would be difficult to obtain. Paragraph 15 of the 1979 agreement requires GDC to construct this lake and to maintain all waterways South of CR 512 until all the work is completed. GDC has a responsibility to construct this lake under the terms of the 1979 agreement. - 3 - DEFICIENCIES IN GDC PROPOSAL (Continued) 7. Emergency Repairs To Date. City estimate $15,400; GDC - $15,400; reduction $ -0-. At the April 9th meeting, I advised GDC that the City was amending this claim for an additional $55,000 for repairs to streets in Unit 17 which were in a deplorable and unsafe condition. GDC asked for additional details which I have since furnished to them. 8. Improperly Aligned Drainage Ditches. City estimate $197,500; GDC - $-0-; reduction of $197,500. GDC disputed any obligation to correct improperly aligned drainage ditches. Please see Paragraph number 4 above. However, as we discussed this matter, GDC offered to accept the figure of $100,000. The City's estimate of $195,000 was calculated as follows: Estimate 25 ditches in 13 Units (excluded are Units 7, 12, 16 & 17 and "Wentworth" ditch. 13 Units X 25 Misaligned Ditches X $600 per Ditch = $195,000 I have no problem in reducing the estimate to $100,000. 9. Englar Bridge Repair. City estimate $10,000; GDC - estimate $10,000; reduction of $ - 0-. CTTMM71 P V The total City estimate is $4,460,256; the GDC estimate is $1,059,530; the overall difference is $3,400,725. As outlined above, I do not believe we should accept GDC's lower estimates. There are three (3) claims that the City may be able to reduce its estimate: In claims number 1 and 2 for Units 16 & 17 Street and Drainage, the City may wish to reduce its estimates to the 1979 contract standard of soil cement base and one inch of asphalt, although this standard would not meet current standards. The third area is identified in claim number 8 above to reduce the value of improperly aligned drainage ditches from $197,500 to $100,000. GDC PROPOSED ASSETS FOR TRADE GDC has presented a preliminary for "Discussions Only" offer of $698,470. At the same time, GDC is offering to convey some $168,000 (their value) of other "assets" to the City, including the various "park" tracts and residential building lots, which were converted for drainage retention. In my judgment, this offer should not be considered until the dollar amount of the claim is resolved. - 4 - CITY COUNTER OFFER At this point in time, it may be appropriate for the City to make a counter offer. Any offer should include those "Essential Contract Elements" which were outlined in my memo to the Mayor and City Council, dated January 29, 1991 and since revised. GDC has agreed to all but one (1) parcel on this schedule. Exhibit "B" of the January report outlined in dollars and cents GDC's 1979 contractual obligations. I may point out that these obligations do not list an additional $55,000 authorized by City Council for Unit 17 street repairs nor does it list the maintenance expenses GDC would incur for street and drainage facilities had GDC not filed for bankruptcy. As noted in the "Summary" part of this report, I believe there is some justification for a reduction in the City's estimate of GDC's liabilities. Exhibit "C" of my January report outlined those assets which I believe would be appropriate as a "trade" with GDC to relieve GDC of its 1979 contractual obligations. I have revised that schedule, which is enclosed for your review. "PARKS" I do want to point out that GDC says there is a difference between "dedicated" and "designated" park tracts. It is GDC's position that those tracts which they have identified as dedicated parks are ones which they are willing to convey to the City. GDC's position on the "designated" parks, is that GDC has obligation or responsibility to convey this property to the City or to develop the parcels as park. It is their intent to further subdivide these "park" parcels into residential building lots and sell them. They have also suggested that the City agree to rezone some of these tracts to commercial zoning designations. When asked to convey them to the City, GDC's response is that they would be willing to sell these tracts to the City at fair market value. With this type of pathetic corporate greed, it is little wonder that GDC finds itself in bankruptcy court or that it has been found guilty of illegally misrepresenting its properties. GDC clearly represented these sites as parks. In good faith, individuals purchased building lots with, at least, implied promises of neighborhood parks. In good faith, the City identified these parks as open recreation space in its local comprehensive plan. It is unfortunate that the 1979 agreement did not specifically address this issue. Rather than conveying these parcels as GDC assets, they might otherwise be viewed as GDC liabilities. Therefore, I believe the City should be very hesitant to exclude these properties from the current negotiations or to ever allow a rezoning to other than its current "Public Service" zoning designation. CITY IS NOT A DEVELOPER I must again bring to your attention that by relieving GDC of its obligations, the City would assume responsibility for the maintenance of infrastructure (streets and drainage) built to date. However, it must be understood that the City is not assuming GDC's responsibilities under the 1979 agreement. - 5 - • 0 (Example: GDC is required to construct certain seawalls along the Elkcam Waterway at an estimate cost of $1.2 million. The City may choose to construct the seawalls, or to install rip rap, or to do nothing.) The point is that the City of Sebastian is not a developer and must make no pretense that it is to assume GDC's civil liabilities, responsibilities, representations or promises. Under no circumstances is the City committing to construct streets or drainage structures in portions of Unit 16 or 17 which are platted but not improve. - 6 - CITY OF SEBAS'11AN dh i OBLIGATIONS FOR .59iTLEME DISCUSSIONS ONLY CLAIM 1. Unit 16 Street and Drainage 2. Unit 17 Street and Drainage 3. Elkcam Waterway (Seawall and Water Control Structure) 4. Wentworth Ditch - Realignment 5. Construction Contingency (10%) 6. Unit 16 Stormwater Retention Lake (Collier Waterway) - not constructed 7. Emergency Repairs To Date 8. Improperly Aligned Drainage Ditches (Estimate) 9. Repair Englar Bridge Over Collier Waterway in Unit 16 10. Park, Governmental and Conservation Sites 11. Commercial/Industrial and Other Properties TOTAL CITY ESTIMATE $ 220,700 1,364,472 1,531,250 103,834 322,000 695,100 15,400 197,500 $ 49460,256 3-14-'91 G.D.C. ESTIMATE $ 64,509 739,222 230,400 -0- -0- -0- 15,400 -0- 10,000 $ 1,059,531 G.D.C. $ VALUE $ 8,000 0 475,150 215,320 1 1 $866,570 $698,470 CITY OF SEBASTIAN OBLIGATIONS FOR SETTLEMENT DISCUSSIONS ONLY RE: PROPOSED ASSETS FOR TRADE CITY OF ITEM # ASSET DESCRIPTION SEBASTIAN $ VALUE 1. One (1) Residential Lot - Barber $ 8,000 Street Sports Complex 2. One (1) Residential Lot - Airport 8,000 Drive East 3. A commercial tract at the intersection 475,150 of Barber and Tulip 4. Schumann Lake Island in Unit 16. 215,320 Schumann "Lake" is a dedicated drainage right-of-way. Total 15.38 acres at $14,000 5. Two (2) lots for access to the 20,000 Elkam Dam 6. Miscellaneous lots and designated 140,100 tracts used for retention and drainage (Estimated 140.1 acres at $1,000 an acre) G.D.C. $ VALUE $ 8,000 0 475,150 215,320 1 1 $866,570 $698,470 • 9 TRACT NUMBERS AND CONVERTED DRAINAGE LOTS DESCRIPTION Total Acreaze Tract B, Unit 14 (Park) 7.42 Tract C, Unit 8 (Park) 8.01 Tract A, Unit 13" 3.99 Tract B, Unit 13 10.08 Tract D, Unit 13 26.81 Tract H, Unit 17- 3.76 Tract I, Unit 17' 33.28 Tract K, Unit 17- 2.80 Tract M, Unit 17, 2.10 Tract R, Unit 17' 2.44 Tract S, Unit 17, 1.91 Tract 0, Unit 17 8.50 111.10 Residential Lots Unit 11, Block 55, Lots 10 to 15 Unit 11, Block 386, Lots 2 to 7 Unit 16, Block 545, Lots 12 to 17 Unit 16, Block 612, Lots 10 and 11 Unit 17, Block 449, Lots 1 to 11 Unit 17, Block 451, Lots 1 to 4 Unit 17, Block 462, Lots 11 and 12 Unit 17, Block 570, Lots 4 to 19 Unit 17, Block 578, Lots 1 to 16; 19 and 20 Unit 17, Block 579, Lots 12 to 14 and 19, 20, and 21 Unit 17, Block 580, Lots 1 to 3; 19 and 20 Unit 17, Block 582, Lots 6 to 11 and 18 to 23 Unit 17, Block 584, Lots 13 to 16 Unit 17, Block 586, Lots 6, 7, 8 and 19, 20, 21 Unit 17, Block 589, Lots 4 and 5 Unit 17, Block 596, Lots 12 to 15 and 18 to 22 Unit 17, Block 598, Lots 14 to 17 Total of 116 residential lots converted to drainage ..................................... 29.00 TOTAL ACREAGE 140.10 • • GENERAL DEVELOPMENT CORPORATION - ASSETS In exchange for relieving GDC of its liabilities and obligations as outlined above, the City may wish to acquire some of the following real properties: These properties may be further detailed on "Exhibit C". C - 1 One (1) Residential Lot - Barber $ 8,000 Street Sports Complex C - 2 One (1) Residential Lot - Airport 8,000 Drive East C - 3 A Commercial Tract at the 365,500 Intersection of Barber & Tulip C - 4 Mosby Letter of 1/23/91 - Fleming 72,000 Street Extended to S. Easy Street (Replat portions of Unit 16 SH - affecting eighteen (18) residential lots @ $4,000 C - 5 Parcels in the portion of Unit 16 SH 378,140 which is platted yet not constructed. Total 27.01 + acres @ $14,000/acre C - 6 Schumann Lake Island in Unit 16, SH 215,320 and related tracts. Please note that Schumann "Lake" is a dedicated drain- age right-of-way. Total 15.38 acres @ $14,000 C - 7 These are parcels located in Unit 17 1,003,500 SH and designated "Commercial" or not "designated". Total 20.07 + acres @ $50,000/acre (04/16/91 Rec. 1.07 Acres @ $14,000) C - 8 This is a tract in Unit 13 which is 75,040 designated as "Commercial" by GDC but zoned RS -10. Total 5.36 acres @ $14,000 C - 9 Public Service ("PS") Tracts 1,620,500 outlined on "Exhibit C-911. Total of 115.75 acres @ $14,000/acre C - 10 Main Street "Entrance" Tracts 38,220 Sub - Total Cash GRAND TOTAL ASSETS Revised: 2/14/91 Second Revision: 04/02/91 Third Revision: 04/16/91 $ 3,784,220 675,980 $ 4,460,200 C Exhibit C - 1 "EXHIBIT C" Barber Street Sports Complex: Lot 4, Block 208, Unit 10 Lot valued @ $8,000 Exhibit C - 2 Airport Drive East, Lot 2, Block 12, Unit 1, SH Lots valued @ $8,000 Exhibit C - 3 • Commercial Tract - Barber Street & Tulip All of Block 268, Unit 10, SH Approximately 7.31 acres - zoned Commercial Limited (CL) 7.31 Acres @ $50,000/acre is $365,500 04/02/91 Recommendation 7.31 Acres @ 65,000 Acre Exhibit C - 4 Fleming Street Extended Also, see Mosby letter dated 1/23/91 marked "Exhibit C-4" 18 affected lot @ $4,000/lot is $72,000 (See Note Below) Exhibit C - 5 The following tracts are in a portion of Unit 16, Sebastian Highlands, which is platted but no improvements (streets and drainage) have been constructed. SH - 16 Tract "C" - Blk 519 ("Civic") 3.01 + acres SH - 16 Tract "K" - Blk 543 ("Park") 3.80 + acres SH - 16 Tract "L" - Blk 549 ("Church") 4.18 + acres SH - 16 Tract "D" - (No Blk #) ("Park") 2.38 + acres SH - 16 Tract "E" - (No Blk #) ("Park") 2.38 + acres SH - 16 Tract "F" - (No Blk #) ("Park") 2.40 + acres SH - 16 Tract "G" - (No Blk #) ("Park") 2.21 + acres SH - 16 Tract "H" - (No Blk #) ("Park") 2.19 + acres SH - 16 Tract "J" - (No Blk #) ("Park") 4.46 + acres TOTAL 27.01 ± Acres Revised: 2/14/91 Second Revision: 04/02/91 Third Revision: 04/16/91 Note: Exhibit C-4 - GDC Agrees: Replat prior to construction of this portion of Unit 16 or if sold to require buyer to replat prior to construction. • "EXHIBIT C" (Continued) Exhibit C - 6 Schumann Lake "Island". Also included: SH 16 - "Island" SH 16 - Tract "R" - Blk 559 SH 16 - Tract "S" - Blk 559 SH 16 - Tract "T" - Blk 559 Note: @ $14,000/Acre TOTAL • 13.36 + acres* .36 + acres* .71 + acres* .95 + acres* 15.38 ± Acres Exhibit C - 7 "Commercial" and other tracts in Unit 17, Sebastian Highlands SH 17 - Tract "L" - BL 588 ("Commercial") Zoned COR 2.40 + ac. SH 17 - Tract "P" - BL 602 ("Commercial") Zoned CL 16.60 + ac. SH 17 - Tract "T" - BL 606 Schuman Waterway & Empress .18 + ac. SH 17 - Tract "U" - BL 597 Schuman Waterway & Empress .27 + ac. SH 17 - Tract "V" - BL 599 Schuman Waterway & Empress .34 + ac. SH 17 - Tract "W" - BL 595 Schuman Waterway & Empress .28 + ac. TOTAL 20.07+ Ac. Exhibit C - 8 SH 13 - Tract "C" - Blk 326 ("Commercial") 5.36 + acres Revised: 2/14/91 Second Revision: 04/02/91 Third Revision: 04/16/91 "EXHIBIT C" (Continued) Exhibit C - 9 Public Service ("PS") Tracts SH 8 - Tract "C" - Blk 223 ("Park") 8.24 + acres SH 8 - - Blk 193 ("Park") 1.90 + acres SH 9 - Tract "A" - Blk 409 ("Utility) 2.37 + acres SH 9 - Tract "A" - Blk 409 ("Park") .37 + acres SH 10 - Tract "A" - Blk 211 ("Park") 2.49 + acres SH 10 - Tract "B" - Blk 267 ("Park") 2.24 + acres SH 10 - Tract "C" - Blk 264 ("Park") 1.15 + acres SH 10 - - Blk 300 ("Park") 2.27 + acres SH 11 - Tract "A" - Blk 282 ("Park") 1.68 + acres SH 11 - Tract "B" - Blk 282 .37 + acres SH 11 - Tract "C" - Blk 372 ("Park") 4.42 + acres SH 11 - Tract "D" - (No Blk #)("Park") 3.81 + acres SH 11 - Tract "E" - Blk 347 ("Park") 2.93 + acres SH 13 - Tract "A" (Deep Swale) 3.99 + acres * SH 13 - Tract "B" (Swimming Hole) 10.08+ acres * SH 13 - Tract "D" (River) 14.07+ acres * SH 14 - Tract "B" - Blk 507 ("Park") 5.79+ acres * SH 15 - Tract "G" - Blk 488 ("Park") 4.62+ acres SH 17 - Tract "A" - (No Blk #)("Park") 3.55+ acres SH 17 - Tract "I" - (No Blk (wetlands) 33.73+ acres * SH 17 - Tract "N" - Blk 589 3.96+ acres SH 17 - Tract "Q" - Blk 604 ("Park") 1.72+ acres TOTAL 115.75 Acres EXHIBIT C - 10 "Entrance" Tracts - Main Street SH 1 - Tract "B" SH 1 - Tract "H" * GDC Offer 04/07/91 *** GDC Offer 04/07/91 Note: Calculated @ $14,000/Acre Revised: 2/14/91 Second Revision: 04/02/91 Third Revision: 04/16/91 1.70± acres 1.03+ acres *** 2.73 Acres "ESSENTIAL CONTRACT ELEMENTS" EXHIBIT A - 1 116 Residential Building Lots, Units 11, 16 & 17 - Tract "0", Unit 17, SH 8.49 Ac.* - Tract "H", Unit 17, SH 3.76 Ac.* - Tract "X", Unit 17, SH .26 Ac. EXHIBIT A - 2 Shiloh Youth Ranch Easement .83 Acre.*** BSA Easement .86 Acre *** XHIBIT A - 3 - Tract "K", BLK 588, Unit 17 SH 2.84 Ac. * - Tract "M", BLK 599, Unit 17 SH 2.16 Ac. * - Tract "R", BLK 613, Unit 17 SH 2.84 Ac. * - Tract "S", BLK 616, Unit 17 SH 1.91 Ac. * EXHIBIT A - 4 Two (2) Residential Building Lots Access to Elkcam Water Control Structure EXHIBIT A- 5 - Tract "P", BLK 560, Unit 16 SH 1.60 Ac. (Continued) EXHIBIT A - 6 "Fleming Grant Line" Drainage - Tract "Y", Blk 121, Unit 4, SH 1.26 Ac. ** - Tract "O", Blk 65, Unit 2, SH 2.2 Ac. ** - Tract "I", Blk 12, Unit 1, SH 2.0 Ac. "GDC Owned - FPL Easement" - Tract "F", Blk 14, Unit 1, SH 1.45 Ac. ** - Tract "E", Blk 17, Unit 1, SH 2.91 Ac. ** - Tract "D", Blk 21, Unit 1, SH 2.89 Ac. ** - Tract "C", Blk 41, Unit 1, SH 2.19 Ac. ** EXHIBIT A - 7 "Hardee Park" - That portion of Hardee Park not yet ** dedicated to the City. 6.50 + Ac. * GDC Offer 04/09/91 ** GDC Verbal Offer 04/09/91 *** GDC Verbal Offer 03/26/91 Revised: 4-2-91 Second Revision: 04/16/91 A G R E E M E N T THIS AGREEMENT, made and entered Into this /j day of August, 1919, by and between GENERAL DEVELOPMENT CORPORATION (hereinafter called "General"), a Delaware corporation authorized to do business In the State of Florida, and the CITY OF SEBASTIAN (hereinafter called "City"), a municipality under the laws of the State of Florida; W I T N E S S E T 11: WHEREAS. General has recorded in the Official Records of Indian River County, plats subdividing lands within the City; and WHEREAS, General has posted corporate performance bonds and/or surety bonds as security for the construction of roads and drainage facilities as shown on sold plats; and WHEREAS. General has completed construction of roads and drainage facilities as shown on said plats; and WHEREAS. General having completed construction of all roads and drainage facilities In the recorded plats of Sebastian highlands Units 2 through 6 and a through 15, as recorded in the Official Records of Indian River County, which were not previously accepted by City and having an obligation to complete the roads and drainage facilities In Units 16 and 11; and WHEREAS, General's obligation Is to have completed construction of said roads and drainage facilities In ac- cordance with the requirements of the ordinances of the City in effect at the date of acceptance by the City of the Plats , which were duly recorded by General; and WIIEREAS, the City and General desire to resolve all disputes between the parties In regard to construction and reponsibiIIty for road construction and maintenance In Units 2 through 6 and 8 through 15 of the recorded plats of Sebastian Highlands. NOW THEREFORE, In consideration of the mutual covenants contained herein and other good and valuable consideration, the parties do hereby agree as follows: I. The agreement entered Into between General and City, dated the 9th of June, 1976, is hereby volded and shall no longer have any force or effect. ti 2. General herewith pays to the City the sum of two hundred thirty-three thousand dollars ($233,000.00) for the purchase of maintenance equipment to maintain roads and drainage facilities In the City of Sebastian, and to assist In the reconstruction and/or repair of the Lake Ilardee dam. 3. General herewith pays to the City the sum of one hundred twenty -flue thousand dollars ($125,000.00) to assist the City in paying the cost of an access road to the southern portion of the City of Sebastian from U.S. I to Shumann Drive and to assist in paying for resurfacing major arterial roads in the City, or for such other road and drainage purposes as may be determined by the City Council. 4. The City by execution of this agreement, which has been approved by a majority vote and resolution of the City Council, City of Sebastian, does hereby accept as completed by General In accordance with the Subdivision Regulations of the City, all roads and drainage facilities in Units 2 through 6 and Units 8 through 15 of Sebastian Highlands, according to the plats thereof recorded In the Official Records of Indian River County, except as stated In Paragraph 15 herein, and the City henceforth shall be responsibile fur the maintenance of said roads and drainage facilities within said plat units. - 2 - • 5. General shall, upon execution of this agreement, deed to the City for municipal purposes the twelve (12) acre site located at the Intersection of Barber Street and,Arbor Drive. This conveyance by General shall be conditioned upon General receiving from the Indian River County School Board (the School Board) a letter relinquishing all right, title, and interest in said tract. 6. City shall, within sixty (60) days of the date of this agreement, repeal that provision of Ordinance No. 119, Paragraph 6.01-8, requiring construction of ten (10) percent of homes on a platted street prior to acceptance by the City of roads and drainage facilities constructed by developer. 1. General shall convey to the City the tract located at the Intersection of Barber Street and Schumann Drive in the City, upon the payment to General of the sum of nine thousand five hundred sixty dollars ($9,560.00). The , conveyance will limit the use of the parcel to school purposes or such tract will revert back to the ownership of General Development. General hereby acknowledges receipt from City Of the sum of nine thousand five hundred sixty dollars ($9,560.00) In full payment of this obligation. B. City discharges and release General, Its officers, employees, stockholders, successors and assigns from any and all obligations, liabilities or agreements relating to the payment by General to the City of surety bond premiums savings which have accrued or may In ;Ihe future accrue to General because of corporate performance hond.s posted with the City by General. 9. General shall obtain an easement through the Boy Scout properly adjacent to Unit Five (5) o/ Sebastian Highlands and shall construct, upon receipt of all necessary permits if any are required, and as soon as practicable, any necessary drainageway, as determined in Its engineer's opinion, to provide adequate drainage of the area to be relieved by said drainageway. If permits are required - 3 - I • General shall provide the technical expertise and any necessary engineering design or data for the City to apply for the, necessary permits. General shall construct such drainageway and obtain any permits entirely at Its expense and at no cost or further obligation to the City. 10. General will Indemnify and legally defend at no cost to the City and save the City harmless from any and all actions or judgments, If any, by purchasers of property from General who have any complaints or legal actions against General in regard to the location and/or construction of drainageways in the City. Ii. General will complete a core boring program and will reconstruct at General's expense City streets In Units 2 through 15 of Sebastian highlands to provide one (1) inch of asphalt wearing surface, as defined herein, where deficiencies have occurred. Its an alternative to such reconstruction, General, upon the City's request, shall deposit with the City an amount computed at $33.00 per ton of asphalt estimated as required to correct the deficiency, for the City's exclusive use for road maintenance in the City. General will be obligated under this paragraph If the results of the core borings, taken at tine frequency of five (5) borings per mile, Indicate less than one (1) inch of asphalt surface within a tolerance of minus (-) one quarter (1/4) inch. Where deficiencies occur the area of deficiency shall be further defined by additional borings. General shall provide to the City the results of Its core boring tests within ninety (90) days from the date of this agreement. Tire City within sixty (60) days of the receipt of such report shall notlfy General of any roads for which It requires funds to be deposited with the City, In lieu of paving work to be dune by General. Upon receipt of such notice by General from the City, General shall complete the paving work rrquired within one hundred eighty (180) days or will p-iy the funds to the Clty, at the Clty's option. It - • 11. City, upon execution of ti0agreement, hereby accepts the construction of all roads and drainage facilities and will thereafter maintain such roads and drainage facilities In Units 2 through 6 and 8 through 15 In Sebastian Illghlands, as recorded in the Official Records of Indian River County, except as stated herein In Paragraph 15, and does hereby release and forever discharge General and Its officers, employees, stockholders, successors and assigns from any and all obligations, under corporate bonds or surety bonds previously posted wlth the City to guarantee construction and/or maintenance of roads and drainage facilities In the aforesaid units. Including, but not limited to the bonds shown on txhlblt "A" attached hereto. 13. City does hereby release and forever discharge General and Its officers, employees, stockholders, successors and assigns from any and all other obligations, claims, warranties, liens. right of action or other legal remedies Of whatever nature or kind which may have arisen or could have arisen between the parties prior to the date of this agreement. 1--- 14. General and City agree that when General completes construction of the roads and drainage facilities In Units 16 --arid 17 It shell submit them to the City for acceptance for maintenance by the City. The City shall within a reasonable time Inspect sold roads and drainage facillities In Units 16 and 17 to assure completion of construction In accordance with the Subdivision Regulations in effect at ttre time of plat recordation. Once such deter- mination Is made the City shall by resolution accept such road and drainage facilities for maintenance by the City and shall release all outstanding bonds posted for said units. 15. General shall complete the excavation and Installation of bulkheads In accordance with Its original - 5 - M • development plans, consistent with General receiving licab e ---'gyp— — ZS.!JmiQts, which General shall use Its good faith efforts to obt%In for: (1) Collier Creek from Fellsmere Nighway to its intersection with Elkcam Waterway; and (2) Elkcam Waterway in its entirety. General shall maintain these waterways at Its expense until the excavation work Is completed. Upon completion of the excavation work, the City shall accept these waterways for maintenance. Executed on behalf Df the City of Sebastian in accordance with a resolution passed by majority vote of the City Council at Its meeting on the LL.�!day of 1979. GENERAL DEVELOPMENT CORPORATION By: am -1 v a, res en ' Attest: 1cc� Wayne L. Allen Vice President CITY OF SEBASTIAN, FLORIDA By. �C. ayor Attest: ty C erk 0 • GENERAL DEVELOPMENT CORPORATION - ASSETS In exchange for relieving GDC of its liabilities and obligations as outlined above, the City may wish to acquire some of the following real properties: These properties may be further detailed on "Exhibit C". C - 1 One (1) Residential Lot - Barber $ 8,000 Street Sports Complex C - 2 One (1) Residential Lot - Airport 8,000 Drive East C - 3 A Commercial Tract at the 365,500 Intersection of Barber & Tulip C - 4 Mosby Letter of 1/23/91 - Fleming 72,000 Street Extended to S. Easy Street (Replat portions of Unit 16 SH - affecting eighteen (18) residential lots @ $4,000 C - 5 Parcels in the portion of Unit 16 SH 378,140 which is platted yet not constructed. Total 27.01 + acres @ $14,000/acre C - 6 Schumann Lake Island in Unit 16, SH 215,320 and related tracts. Please note that Schumann "Lake" is a dedicated drain- age right-of-way. Total 15.38 acres @ $14,000 C - 7 These are parcels located in Unit 17 1,003,500 SH and designated "Commercial" or not "designated". Total 20.07 + acres @ $50,000/acre (04/16/91 Rec. 1.07 Acres @ $14,000) C - 8 This is a tract in Unit 13 which is 75,040 designated as "Commercial" by GDC but zoned RS -10. Total 5.36 acres @ $14,000 C - 9 Public Service ("PS") Tracts 1,620,500 outlined on "Exhibit C-911. Total of 115.75 acres @ $14,000/acre C - 10 Main Street "Entrance" Tracts 38,220 Sub - Total $ 3,784,220 Cash 675,980 GRAND TOTAL ASSETS $ 4,460,200 Revised: 2/14/91 Second Revision: 04/02/91 Third Revision: 04/16/91 .J Exhibit C - 1 "EXHIBIT C" Barber Street Sports Complex: Lot 4, Block 208, Unit 10 Lot valued @ $8,000 Exhibit C - 2 Airport Drive East, Lot 2, Block 12, Unit 1, SH Lots valued @ $8,000 Exhibit C - 3 • Commercial Tract - Barber Street & Tulip All of Block 268, Unit 10, SH Approximately 7.31 acres - zoned Commercial Limited (CL) 7.31 Acres @ $50,000/acre is $365,500 04/02/91 Recommendation 7.31 Acres @ 65,000 Acre Exhibit C - 4 Fleming Street Extended Also, see Mosby letter dated 1/23/91 marked "Exhibit C-4" 18 affected lot @ $4,000/lot is $72,000 (See Note Below) Exhibit C - 5 The following tracts are in a portion of Unit 16, Sebastian Highlands, which is platted but no improvements (streets and drainage) have been constructed. SH - 16 Tract "C" - Blk 519 ("Civic") 3.01 + acres SH - 16 Tract "K" - Blk 543 ("Park") 3.80 + acres SH - 16 Tract "L" - Blk 549 ("Church") 4.18 + acres SH - 16 Tract "D" - (No Blk #) ("Park") 2.38 ± acres SH - 16 Tract "E" - (No Blk #) ("Park") 2.38 ± acres SH - 16 Tract "F" - (No Blk #) ("Park") 2.40 ± acres SH - 16 Tract "G" - (No Blk #) ("Park") 2.21 + acres SH - 16 Tract "H" - (No Blk #) ("Park") 2.19 + acres SH - 16 Tract "J" - (No Blk #) ("Park") 4.46 + acres TOTAL 27.01 ± Acres Revised: 2/14/91 Second Revision: 04/02/91 Third Revision: 04/16/91 Note: Exhibit C-4 - GDC Agrees: Replat prior to construction of this portion of Unit 16 or if sold to require buyer to replat prior to construction. "EXHIBIT C" (Continued) Exhibit C - 6 Schumann Lake "Island". Also included: SH 16 - "Island" SH 16 - Tract "R" - Blk 559 SH 16 - Tract "S" - Blk 559 SH 16 - Tract "T" - Blk 559 Note: @ $14,000/Acre TOTAL 13.36 + acres* .36 + acres* .71 + acres* .95 + acres* 15.38 ± Acres Exhibit C - 7 "Commercial" and other tracts in Unit 17, Sebastian Highlands SH 17 - Tract "L" - BL 588 ("Commercial") Zoned COR 2.40 + ac. SH 17 - Tract "P" - BL 602 ("Commercial") Zoned CL 16.60 + ac. SH 17 - Tract "T" - BL 606 Schuman Waterway & Empress .18 + ac. SH 17 - Tract "U" - BL 597 Schuman Waterway & Empress .27 + ac. SH 17 - Tract "V" - BL 599 Schuman Waterway & Empress .34 + ac. SH 17 - Tract "W" - BL 595 Schuman Waterway & Empress .28 + ac. TOTAL 20.07+ Ac. Exhibit C - 8 SH 13 - Tract "C" - Blk 326 ("Commercial") 5.36 + acres Revised: 2/14/91 Second Revision: 04/02/91 Third Revision: 04/16/91 EXHIBIT C - 10 "Entrance" Tracts - Main Street SH 1 - Tract "B" SH 1 - Tract "H" * GDC Offer 04/07/91 *** GDC Offer 04/07/91 Note: Calculated @ $14,000/Acre Revised: 2/14/91 Second Revision: 04/02/91 Third Revision: 04/16/91 1.70± acres 1.03+ acres *** 2.73 Acres "EXHIBIT C" (Continued) Exhibit C - 9 Public Service ("PS") Tracts SH 8 - Tract "C" - Blk 223 ("Park") 8.24 ± acres SH 8 - - Blk 193 ("Park") 1.90 + acres SH 9 - Tract "A" - Blk 409 ("Utility) 2.37 + acres SH 9 - Tract "A" - Blk 409 ("Park") .37 + acres SH 10 - Tract "A" - Blk 211 ("Park") 2.49 + acres SH 10 - Tract "B" - Blk 267 ("Park") 2.24 + acres SH 10 - Tract "C" - Blk 264 ("Park") 1.15 + acres SH 10 - - Blk 300 ("Park") 2.27 ± acres SH 11 - Tract "A" - Blk 282 ("Park") 1.68 + acres SH 11 - Tract "B" - Blk 282 .37 + acres SH 11 - Tract "C" - Blk 372 ("Park") 4.42 + acres SH 11 - Tract "D" - (No Blk #)("Park") 3.81 + acres SH 11 - Tract "E" - Blk 347 ("Park") 2.93 + acres SH 13 - Tract "A" (Deep Swale) 3.99 + acres * SH 13 - Tract "B" (Swimming Hole) 10.08+ acres * SH 13 - Tract "D" (River) 14.07+ acres * SH 14 - Tract "B" - Blk 507 ("Park") 5.79± acres * SH 15 - Tract "G" - Blk 488 ("Park") 4.62+ acres SH 17 - Tract "A" - (No Blk #)("Park") 3.55+ acres SH 17 - Tract "I" - (No Blk (wetlands) 33.73+ acres * SH 17 - Tract "N" - Blk 589 3.96+ acres SH 17 - Tract "Q" - Blk 604 ("Park") 1.72+ acres TOTAL 115.75 Acres EXHIBIT C - 10 "Entrance" Tracts - Main Street SH 1 - Tract "B" SH 1 - Tract "H" * GDC Offer 04/07/91 *** GDC Offer 04/07/91 Note: Calculated @ $14,000/Acre Revised: 2/14/91 Second Revision: 04/02/91 Third Revision: 04/16/91 1.70± acres 1.03+ acres *** 2.73 Acres THOMAS C. PALMER ATTORNEY AT LAW P.O. BOX 145,1037 MAIN STREET, SEBASTIAN. FLORIDA 32958 305-589-7550 February 19, 1986 TO: Mayor and City Council Re: Contractual history on Road and drainage responsibility in the Sebastian Highlands. The following opinion is based only on the following papers which have been provided to me from city files: 1. City Resolution dated May 28, 1969. 2. Four (4) letters from F. Eugene Gragg, Mayor, to Mr.. R.A. Bleum, from 1-18-74 through 11-4-74. .-3. six (6) page agreement dated August 15, 1979, with exhibit A and two (2) page attachment dated August 15, 1979. 4. One page letter from Elizabeth Reid, City Clerk, to Mr. Melton E. Broom, dated April 13, 1982. 5. Two page agreement dated June 10, 1982. 6. One page General Release, dated July 30, 1.982. 7. One page letter from George R. Kulczcki to Dan Blair, dated February 6, 1985. Based on a careful review of these papers and limited to the information contained therein, the following conclusions can be drawn with reasonable certainty: 1. The City accepted all streets existing in Sebastian Highlands Unit 7 as of May 28, 1969, along with the other streets listed in the said Resoultion. This reference to Unit 7 is :yet out specifically because Unit 7 is not referred to specifically in any other documentation except in references to units 2 through 15 regarding taking certain core borings. 2. The four letters from Mayor Cragg from January 18, 1974 through November 4, 1974, constitute approval by the City as to the then existing "ditches" in Phases I, II, III, IV, and V of Unit I of the Highlands. The City agreed to maintain the then existing "ditches," 3. By the agreement dated August 15, 1979, the City assumed maintenance responsibilities to the roads and drainage facilities then existing in Units 2 through 6 and 8 through 15 in excahange for $358,000.00, a 12 acre parcel of land at Barber Street and Rose Arbor Drive, the promised repeal of Ordinance 179, paragraph 6.07-B, and an agreement for the City to purchase a tract of land at -Barber Street and Schumann Drive for the price of $9,560.00. By this agreement the City 90.290 1-19=86 • • Pa ge 2 did not assume any responsibility to Units 16 or 17. Also the City did not assume and responsibility for Collier Creek from Fellsmere Highway to its intersection with Klkcam Waterway, or any part of Elkcam waterway in its entitety. General Development agreed to complete the excavation and installation of bulkheads in accordance with its original development plans, and agreed to maintain these waterways at its expense until the excavation work is completed. The City agreed to accept said waterways for maintenance after the excavation work is completed. 4. By letter dated April 13, 1982, the City Clerk wrote to Mr. Melton E. Bloom and advised General DEvelopment that the City agreed to accept $37,000.00 in settlement of certain matters apparently discovered by core testing. 5. A two page agreement, dated June 10, 1982, the city agreed to accept maintenance responsibility for the roads in Units 1 through 6 and 8 through 15, subject to General Development repairing some boreing holes apparently yet unrepaired. This agreement does not refer to Unit 7 and, in any case, is limited to the subject of roads. 6. A one page "General Release" dated July 30, 1982 purports to release General Development from any further matters under the agreement of August 15, 1979. This release does not, in my opinion, clearly express the intent of the parties. It is clear that this release refers only to the following items: a. All roads in units 1 through 6 and 8 through 15. b. All properly aligned drainage swales in the same units. This release does not refer to General Developments further obligations as to units 16 and 17, or to General Development's responsibilities related to Collier Creek and Elckam Waterway. Thses matters are set out in paragraphs 14 and 15 of the Aug- ust 15, 1979 agreement. 7. A one page letter from George Kulczycki to Dan:Blair, dated February 6, 1985, evidences the fact that General Development is not attempting to assert that the City is responsible for maintenance of drainage swales in any units of the highlands if the siyales are improperly aligned. George states that GD will properly realign any misaligned swales, and after such realignment, the City will thereafter be responsible for them. • 2-19-86 Page 3 • In summary: According to the papers that have been provided to me for review, the following can be fairly summizei: The City has acceptbd for maintenance all roads in Unit 7 as of May 28, 1969. The City has accepted all roads and properly aligned drainage swales that existed in Units 1 through 6 and 8 through 15 as of August 15, 1979. The city has accepted any problems that may have existed regarding bore samples in any of the roads as of 1982. The City has released General Development as to any such roads that were in existence as of July of 1982. General Development has the responsibility to complete the plans for Collier Creek and Elkcam Waterway and to maintain same until the project is completed. The City has agreed to assume that maintbnance responsibility upon com- pletion of that project and acceptance of the project by the City. 1. Thomas C. Palmer r: Ilk City of Sebastian POST OFFICE BOX 780127 ❑ SEBASTIAN, FLORIDA 32978 TELEPHONE (407) 589-5330 ❑ FAX (407) 589-5570 July 24, 1991 Mr. Ralph (Cap) Cain, III General Development Corporation 1673 S. E. Niemeyer Circle Port St. Lucie, F1 34952 Re: Settlement Offer Dear Mr. Cain: Thank you for your letter of July 10, 1991 outlining an offer to settle the City's claim with the U.S. Bankruptcy Court and to nullify the 1979 Agreement between the City and General Development Corporation ("GDC"). It is mutually understood by both parties that a written agreement will need to be finalized for approval by GDC, the Creditor's Committee, the Bankruptcy Court, and the Sebastian City Council. I offer the following comments in response to your paragraphs numbered 1 through 4 of your July 10th letter: 1. I have included revised exhibits "A","B" and "C". These exhibits include all parcels listed in your July 10th letter. Additionally, the following tracts are included in my exhibits: a) Tract "X", Unit 17, Sebastian Highlands. This is a tract converted to drainage in Unit 17, previously approved by you, and identified as a drainage tract in George Kulczycki's letter and exhibits of November 28, 1990. I presumed that this was an oversight and should be included. b) "Hardee Park". You had previously agreed to deed the balance of Hardee Park to the City and I presume this, too, was an oversight. c) Fleming Street extended". Under this proposal, Fleming Street would be extended from Chesser's Gap through GDC Settlement Offer July 24, 1991 Page 2 Unit 16 to Easy Street as outlined in a letter by Mosby & Associates, the City's consulting engineer, dated January 23, 1991. You had previously agreed to replat this portion of Unit 16 prior to construction or, if sold, to require the buyer to replat this portion of Unit 16 prior to construction, to include the realigned right- of-way to extend Fleming Street. I presume that this was an oversight and should be included. d) Per my letter to George Kulczycki dated June 10, 1991, all of Schumann Lake, including the "island" and area covered by water and other real property situated adjacent to the property lines of Unit 9, Unit 16, and the "utilities site" to the North, is all owned by GDC. Since the "lake" is an integral part of the drainage system, it must be conveyed to the City as a drainage structure. Therefore, my revised exhibit includes all of Schumann Lake as well the "island". Your July 10th letter also included Tract "S", which is access to the Schumann Lake "island" for Kildare. However, excluded Tract "R" and Tract "T". The City will withdraw its request for Tract "T" in the event you include Tract "R". Tract "R" is situated at the corner of Schumann and Kildare and is the only available access to the culvert sections under Schumann Drive. (e) Tract "I" and Tract "N", in Unit 17, are included in my exhibit but excluded from your July 10th letter. On April 7, 1991 you agreed to include Tract "I", since it is "wetlands". I presume this was an oversight and should be included. We ask that Tract "N" be included as well. f) Main Street "entrance tracts". We had asked for Tract "B" and Tract "H" in Unit 1. Tract "H", due to its narrow and irregular shape, is not buildable but would be used by the City as bike path or access to a large PUD to the North. You had previously agreed to convey Tract "H" on April 19, 1991. However, the City is willing to exclude Tract "B" if GDC is willing to include Tract "H". 2. The Shiloh Youth Ranch and Boy Scouts of America easement assignments are included in my attached exhibit. 3. The City will not pay any taxes, interest payments, penalties, special assessments, or other costs associated with transfer of ownership on the properties listed in the exhibits. This shall be the responsibility of GDC which will be required to provide good title to all properties and free of any encumbrance whatsoever. Most of the tracts listed are ones which were converted to drainage and which • GDC Settlement Offer July 24, 1991 Page 3 you would be required to dedicate as rights-of-way under the Land Development Code. According to the City Attorney, a replat is required for Unit 17 since tracts and residential building lots were converted to drainage and the 1979 agreement would not exclude a replat for drainage easements or rights-of-way. 4. GDC's obligations under the terms of the 1979 Agreement would cease and the 1979 Agreement would be nullified in addition to the City either withdrawing its claim or filing a notice of satisfaction with the U.S. Bankruptcy Court. Under no circumstances will the City of Sebastian assume GDC's obligations or responsibilities of the 1979 Agreement. Further, since the 1979 Agreement, which you have breached, is to be nullified, all future development within the City will be strictly in accordance with the City's Land Development Code. This letter has been reviewed and ratified by the City Council at its regular meeting of July 24, 1991. Please review this letter at your earliest convenience and confirm to me, in writing, GDC's concurrence with the provisions herein outlined. Sincerely, Robert S. McClary City Manager RSM/sg • EXHIBIT "All "ESSENTIAL CONTRACT ELEMENTS" 0 EXHIBIT A - 1 3 119 Residential Building SH (See attached "Exhibit Lots, A-1 Units 11, 16 & 17 *# Details) - Tract 110", Unit 17, SH 8.49 Acre *# - Tract "H", Unit 17, SH 3.76 Acre *# - Tract "X", Unit 17, SH .26 Acre ** - Tract "B", Unit 17, SH 17 SH # EXHIBIT A - 2 Shiloh Youth Ranch Easement .83 Acre ***# BSA Easement .86 Acre @ $14,000/Acres ***# EXHIBIT A - 3 Two (2) Residential Building Lots *# Lot - Tract "K", BLK 588, Unit 17 SH 2.84 Ac. *# - Tract "M", BLK 599, Unit 17 SH 2.16 Ac. *# - Tract "R", BLK 613, Unit 17 SH 2.84 Ac. *# - Tract "S", BLK 616, Unit 17 SH 1.91 Ac. *# EXHIBIT A - 4 Two (2) Residential Building Lots *# Lot 19, Block 364, Unit 11 SH Lot 12, Block 365, Unit 11 SH EXHIBIT A- 5 - Tract "P", BLK 560, Unit 16 SH 1.60 Ac.# Revised: 04/02/91 Second Revision: 04/17/91 Third Revision: 05/21/91 Fourth Revision: 07/15/91 EXHIBIT A-6 "Fleming Grant Line" Drainage - Tract "Y", Blk 121, Unit 4, SH 1.26 Ac. **# - Tract "O", Blk 65, Unit 2, SH 2.2 Ac. **# - Tract "I", Blk 12, Unit 1, SH 2.0 Ac. **# "GDC Owned - FPL Easement" - Tract "F", Blk 14, Unit 1, SH 1.45 Ac. **# - Tract "E", Blk 17, Unit 1, SH 2.91 Ac. **# - Tract "D", Blk 21, Unit 1, SH 2.89 Ac. **# - Tract "C", Blk 41, Unit 1, SH 2.19 Ac. **# EXHIBIT A - 7 "Hardee Park" - That portion of Hardee Park not yet ** dedicated to the City. 6.50 + Ac. * GDC Offer 03/14/91 ** GDC Offer 04/09/91 *** GDC Offer 03/26/91 # GDC Offer 07/10/91 Revised: 4-2-91 Second Revision : 04/16/91 Third Revision 05/21/91 Fourth Revision: 07/15/91 "EXHIBIT A" Exhibit A_- 1 Details Unit Block Lot No.'s 11 555 10 to 15 11 587 2 to 7 16 545 12 to 17 16 612 10 & 11 17 449 1 to 11 17 451 1 to 4 17 462 11 to 12 17 570 4 to 19 578 1 to 16 & 19 and 20 17 579 12 to 14 & 19, 20 & 21 17 17 580 1 to 3 & 19 & 20 17 582 6 to 11 & 18 to 23 17 584 13 to 16 17 586 6, 7, & 8; & 19, 20 & 21 17 589 596 4 12 & 5 to 15, & 18 to 22 17 17 598 14 to 17 Total number of residential lots converted to drainage: 119 Also included are three (3) parcels, Tract "O", "H" (park site), and "X", Unit 17. Also included is Tract "B", Unit 17. Note: All of the above properties included in GDC Offer of 07/10/91 except Tract "X". Revised 07/15/91 • • EXHIBIT "B" - GDC LIABILITIES TOTAL $ 41460,256 $ 1,OS9,531 $ 4,256,450 01/29/91 03/14/91 05/21/91 CITY G.D.C. CITY CLAIM ESTIMATE ESTIMATE ESTIMATE 1. Unit 16 Street & Drainage $ 220,700 $ 64,509 $ 73,700 2. Unit 17 Street & Drainage 1,364,472 739,222 1,364,400 3. Elkcam Waterway (Seawall & Control Structure) 1,531,250 230,400 1,531,250 (Water 4. Wentworth Ditch - Realignment 103,834 - 0 - 103,800 5. Construction Contingency (10%) 322,000 - 0 - 307,000 6. Unit 11 Stormwater Retention Lake (Collier Waterway) Not 695,100 - 0 - 695,100 Constructed 7. Emergency Reapirs To Date 15,400 15,400 71,200 8. Improperly Aligned Drainage 197,500 - 0 - 100,000 Ditches (Estimate) 9. Repair Englar Bridge Over in Unit 16 10,000 10,000 10,000 Collier Waterway TOTAL $ 41460,256 $ 1,OS9,531 $ 4,256,450 "EXHIBIT C" DETAILS Recommended 05/21/91 Exhibit C - 1 Barber Street Sports Complex: Lot 4, $ *# 8,000 Block 208, Unit 10 Lot valued @ $8,000 Exhibit C - 2 Airport Drive East, Lot 2, Block 12, *# 8,000 Unit 1, SH Lot valued @ $8,000 Exhibit C - 3 Commercial Tract - Barber Street & Tulip All of Block 268, Unit 10, SH Approximately 7.31 acres - zoned Commercial Limited (CL) 7.31 Acres 05/21/91 Recommendation 7.31 Acres @ 65,000 Acre *# 475,150 Exhibit C - 4 Fleming Street Extended Also, see Mosby letter dated 1/23/91 marked "Exhibit C-4" 18 affected lot *# 72,000 @ $4,000/10t is $72,000 is Note: ExhibitUnit 16 or if g • soldto erequilat relor to buyer to constructionh portion of r plat prior to construction. Exhibit C - 5 WITHDRAWN This Exhibit formerly consisted of tracts in the portion of Unit 16, Sebastian Highlands, which is platted but not constructed. The tracts will be re-evaluated when GDC or its successor constructs this portion of Unit 16. Revised: 2/14/91 Second Revision: 04/02/91 Third Revision: 04/16/91 Fourth Revision: 05/21/91 Fifth Revision: 07/15/91 "EXHIBIT C" (Continued) Exhibit C - 6 Schumann Lake "Island". Also included: SH 16 - "Island" SH 16 - Tract "R" - Blk 559 SH 16 - Tract "S" - Blk 559 SH 16 - Tract "T" - Blk 559 Note: @ $14,000/Acre TOTAL Recommended 05/21/91 13.36 + acres*# $ 187,040 .36 ± acres* 5,040 .71 ± acres*# 9,940 .95 ± acres* 13,300 Schuman ± Acres $ 215,320 15.38 The real property containing Schumann Lake (the water, banks, headwalls, etc.) must be added since it has previously been dedicated by GDC as a drainage right-of-way or otherwise conveyed by GDC. Exhibit C - 7 Other Drainage Access tracts in Unit 17, Sebastian Highlands + ac.# 2,520 SH 17 - Tract "T" - BL 606 Schuman Waterway & Empress .18 + ac.# 3,780 SH 17 - Tract "U" - BL 597 Schuman Waterway & Empress .27 + ac.# 4,760 SH 17 - Tract "V" - BL 599 Schuman Waterway & Empress .34 + ac.# 3,920 SH 17 - Tract "W" - BL 595 Schuman Waterway & Empress .28 TOTAL 1.07± Ac.$14,980 Exhibit C - 8 - WITHDRAWN This exhibit formerly consisted of SH 13 - Tract "C" - Blk 326 ("Commercial") Revised: 2/14/91 Second Revision: 04/02/91 Third Revision: 04/16/91 Fourth Revision: 05/21/91 Fifth Revision: 07/15/91 5.36 ± acres "EXHIBIT C" (Continued) Exhibit C - 9 Public Service ("PS") Tracts SH 8 - Tract "C" - Blk 223 ("Park") Tract SH 8 - 17 - Tract - Blk 193 ("Park") 17 - SH 9 - Tract "A" - Blk 409 ("Park") 5.79+ SH 10 - Tract "A" - Blk 211 ("Park") acres SH 10 - Tract "B" - Blk 267 ("Park") # SH 10 - Tract "C" - Blk 264 ("Park") - Blk SH 10 - 3.96+ acres - Blk 300 ("Park") 604 SH 11 - Tract "A" - Blk 282 ("Park") SH 11 - Tract "B" - Blk 282 SH 11 - Tract "C" - Blk 372 ("Park") SH 11 - Tract "D" - (No Blk #)("Park") SH 11 - Tract "E" - Blk 347 ("Park") SH 13 - Tract "A" SH 13 - Tract "B" SH 13 - Tract "D" SH 14 - Tract "B" SH 15 - Tract "G" SH 17 - Tract "A" SH 17 - Tract "I" SH 17 - Tract "N" SH 17 - Tract "Q" Recommended 05121/91 8.24 + acres *# $ 115,360 1.90 + acres # 26,600 .37 + acres # 2.49 + acres # 2.24 + acres # 1.15 + acres # 2.27 + acres # 1.68 + acres # .37 + acres # 4.42 ± acres # 3.81 + acres # 2.93 + acres # (Deep Swale) 3.99 + acres *# (Swimming Hole) 10.08+ acres *# (River) 14.07± acres *# - Blk 507 ("Park") 5.79+ acres *# - Blk 488 ("Park") 4.62+ acres # - (No Blk #)("Park") 3.55+ acres # - (No Blk (wetlands) 33.73+ acres - Blk 589 3.96+ acres - Blk 604 ("Park") 1.72+ acres # TOTAL EXHIBIT.0 - 10 "Entrance" Tracts - Main Street SH 1 - Tract "B" SH 1 - Tract "H" * GDC Offer 02/14/91 ** GDC Offer 04/09/91 *** GDC Offer 03/26/91 # GDC Offer 07/10/91 Note: Calculated @ $14,000/Acre Revised: 2/14/91 Second Revision: 04/02/91 Third Revision: 04/16/91 Fourth Revision: 05/21/91 Fifth Revision: 07/10/91 5,180 34,860 31,360 16,100 31,780 23,520 5,180 61,880 53,340 41,020 55,860 141,120 196,980 81,060 64,680 49,700 472,220 55,440 24,080 113.38 Acres $1,587,32U 1.70+ acres $ 23,800 1.03± acres ** 14,420 2.73 Acres $ 38,220 1 City of Sebastian POST OFFICE BOX 780127 ❑ SEBASTIAN, FLORIDA 32978 TELEPHONE (407) 589-5330 ❑ FAX (407) 589-5570 SUBJECT: GDC Chapter 11 Bankruptcy Approved For Submittal By: City Manager EXPENDITURE REQUIRED: Agenda No. Dept. of Origin:City Manager Date Submitted: 07/15/91 For Agenda Of: 07/24/91 Exhibits: GDC Letter Dated 7/10/91 Draft letter Dated 7/24/91 to GDC with Attachments AMOUNT BUDGETED: SUMMARY STATEMENT APPROPRIATION REQUIRED: General Development Corporation ("GDC") has made a counteroffer to the City in an attempt to settle the City's claim with the U.S. Bankruptcy Court. The counteroffer is contained in a letter signed by Ralph (Cap) Cain, III, Assistant Vice President for Community Affairs with GDC. While this counteroffer is more acceptable than previous discussions with GDC it is short of meeting the City's expectations. In response to this counteroffer, I have drafted a response which outlines the provisions of GDC's counteroffer which are acceptable as well as those that are not acceptable. Please note that this draft letter is not signed and is subject to modification by the City Council. However, the draft letter does reflect my recommendations to the City Council in pursuing negotiations with GDC. RECOMMENDED ACTION Review and approve draft letter to General Development Corporation outlining a proposed settlement to the City's claim which was filed in U.S. Bankruptcy Court. GDC Settlement Offer July 24, 1991 Page 2 Unit 16 to Easy Street as outlined in a letter by Mosby & Associates, the City's consulting engineer, dated January 23, 1991. You had previously agreed to replat this portion of Unit 16 prior to construction or, if sold, to require the buyer to replat this portion of Unit 16 prior to construction, to include the realigned right- of-way to extend Fleming Street. I presume that this was an oversight and should be included. d) Per my letter to George Kulczycki dated June 10, 1991, all of Schumann Lake, including the "island" and area covered by water and other real property situated adjacent to the property lines of Unit 9, Unit 16, and the "utilities site" to the North, is all owned by GDC. Since the "lake" is an integral part of the drainage system, it must be conveyed to the City as a drainage structure. Therefore, my revised exhibit includes all of Schumann Lake as well the "island". Your July loth letter also included Tract "S", which is access to the Schumann Lake "island" for Kildare. However, excluded Tract "R" and Tract "T". The City will withdraw its request for Tract "T" in the event you include Tract "R". Tract "R" is situated at the corner of Schumann and Kildare and is the only available access to the culvert sections under Schumann Drive. (e) Tract "I" and Tract "N", in Unit 17, are included in my exhibit but excluded from your July 10th letter. On April 7, 1991 you agreed to include Tract "I", since it is "wetlands". I presume this was an oversight and should be included. We ask that Tract "N" be included as well. f) Main Street "entrance tracts". We had asked for Tract "B" and Tract "H" in Unit 1. Tract "H", due to its narrow and irregular shape, is not buildable but would be used by the City as bike path or access to a large PUD to the North. You had previously agreed to convey Tract "H" on April 19, 1991. However, the City is willing to exclude Tract "B" if GDC is willing to include Tract "H". 2. The Shiloh Youth Ranch and Boy Scouts of America easement assignments are included in my attached exhibit. 3. The City will not pay any taxes, interest payments, penalties, special assessments, or other costs associated with transfer of ownership on the properties listed in the exhibits. This shall be the responsibility of GDC which will be required to provide good title to all properties and free of any encumbrance whatsoever. Most of the tracts listed are ones which were converted to drainage and which GDC Settlement Offer July 24, 1991 Page 3 you would be required to dedicate as rights-of-way under the Land Development Code. According to the City Attorney, a replat is required for Unit 17 since tracts and residential building lots were converted to drainage and the 1979 agreement would not exclude a replat for drainage easements or rights-of-way. 4. GDC's obligations under the terms of the 1979 Agreement would cease and the 1979 Agreement would be nullified in addition to the City either withdrawing its claim or filing a notice of satisfaction with the U.S. Bankruptcy Court. Under no circumstances will the City of Sebastian assume GDC's obligations or responsibilities of the 1979 Agreement. Further, since the 1979 Agreement, which you have breached, is to be nullified, all future development within the City will be strictly in accordance with the City's Land Development Code. This letter has been reviewed and ratified by the City Council at its regular meeting of July 24, 1991. Please review this letter at your earliest convenience and confirm to me, in writing, GDC's concurrence with the provisions herein outlined. Sincerely, Robert S. McClary City Manager RSM/sg EXHIBIT A-6 "Fleming Grant Line" Drainage EXHIBIT "A" "ESSENTIAL CONTRACT ELEMENTS" EXHIBIT A - 1 119 Residential Building Lots, Units 11, 16 & 17 *# SH (See attached "Exhibit A-1 Details) - Tract 11011, Unit 17, SH 8.49 Acre *# - Tract "H", Unit 17, SH 3.76 Acre *# - Tract "X", Unit 17, SH .26 Acre ** - Tract "B", Unit 17, SH # EXHIBIT A - 2 Shiloh Youth Ranch Easement .83 Acre ***# BSA Easement .86 Acre @ $14,000/Acres ***# EXHIBIT A - 3 - Tract "K", BLK 588, Unit 17 SH 2.84 Ac. *# - Tract "M", BLK 599, Unit 17 SH 2.16 Ac. *# - Tract "R", BLK 613, Unit 17 SH 2.84 Ac. *# - Tract "S", BLK 616, Unit 17 SH 1.91 Ac. *# EXHIBIT A - 4 Two (2) Residential Building Lots *# Lot 19, Block 364, Unit 11 SH Lot 12, Block 365, Unit 11 SH EXHIBIT A- 5 • "EXHIBIT A" Exhibit A - 1 Details • Unit # Block Lot No.'s 11 555 10 to 15 11 587 2 to 7 16 545 12 to 17 16 612 10 & 11 17 449 1 to 11 17 451 1 to 4 17 462 11 to 12 17 570 4 to 19 17 578 1 to 16 & 19 and 20 17 579 12 to 14 & 19, 20 & 21 17 580 1 to 3 & 19 & 20 17 582 6 to 11 & 18 to 23 17 584 13 to 16 17 586 6, 7, & 8; & 19, 20 & 21 17 589 4 & 5 17 596 12 to 15, & 18 to 22 17 598 14 to 17 Total number of residential lots converted to drainage: 119 Also included are three (3) parcels, Tract "O", "H" (park site), and "X", Unit 17. Also included is Tract "B", Unit 17. Note: All of the above properties included in GDC Offer of 07/10/91 except Tract "X". Revised 07/15/91 CLAIM EXHIBIT "B" - GDC LIABILITIES 01/29/91 03/14/91 05/21/91 CITY G.D.C. CITY ESTIMATE ESTIMATE ESTIMATE 1. Unit 16 Street & Drainage $ 220,700 $ 64,509 $ 73,700 2. Unit 17 Street & Drainage 1,364,472 739,222 1,364,400 3. Elkcam Waterway (Seawall & (Water Control Structure) 1,531,250 230,400 1,531,250 4. Wentworth Ditch - Realignment 103,834 - 0 - 103,800 5. Construction Contingency (10%) 322,000 - 0 - 307,000 6. Unit 11 Stormwater Retention Lake (Collier Waterway) Not Constructed 695,100 - 0 - 695,100 7. Emergency Reapirs To Date 15,400 15,400 71,200 8. Improperly Aligned Drainage Ditches (Estimate) 197,500 - 0 - 100,000 9. Repair Englar Bridge Over Collier Waterway in Unit 16 10,000 10,000 10,000 TOTAL $ 4,460,256 $ 1,059,531 $ 4,256,450 "EXHIBIT C" DETAILS Exhibit C - 1 Recommended 05/21/91 Barber Street Sports Complex: Lot 4, $ *# 8,000 Block 208, Unit 10 Lot valued @ $8,000 Exhibit C - 2 Airport Drive East, Lot 2, Block 12, *# 81000 Unit 1, SH Lot valued @ $8,000 Exhibit C - 3 Commercial Tract - Barber Street & Tulip All of Block 268, Unit 10, SH Approximately 7.31 acres - zoned Commercial Limited (CL) 7.31 Acres 05/21/91 Recommendation 7.31 Acres @ 65,000 Acre *# 475,150 Exhibit C - 4 Fleming Street Extended Also, see Mosby letter dated 1/23/91 marked "Exhibit C-4" 18 affected lot @ $4,000/lot is $72,000 *# 72,000 Note: Exhibit C-4 - GDC Agrees: Replat prior to construction of this portion of Unit 16 or if sold to require buyer to replat prior to construction. Exhibit C - 5 WITHDRAWN This Exhibit formerly consisted of tracts in the portion of Unit 16, Sebastian Highlands, which is platted but not constructed. The tracts will be re-evaluated when GDC or its successor constructs this portion of Unit 16. Revised: 2/14/91 Second Revision: 04/02/91 Third Revision: 04/16/91 Fourth Revision: 05/21/91 Fifth Revision: 07/15/91 "EXHIBIT C" (Continued) Exhibit C - 6 L� Exhibit C - 7 Other Drainage Access tracts in Unit 17, Sebastian Highlands SH 17 - Tract "T" Recommended 606 Schuman Waterway & 05/21/91 Schumann Lake "Island". Also included: + ac.# SH 16 - "Island" 17 13.36 + acres*# $ 187,040 SH 16 - Tract "R" - Blk 559 .36 + acres* 5,040 SH 16 - Tract "S" - Blk 559 .71 + acres*# 9,940 SH 16 - Tract "T" - Blk 559 .95 + acres* 13,300 Note: @ $14,000/Acre Waterway TOTAL 15.38 ± Acres $ 215,320 The real property containing Schumann Lake (the water, banks, headwalls, etc.) must be added since it has previously been dedicated by GDC as a drainage right-of-way or otherwise conveyed by GDC. Exhibit C - 7 Other Drainage Access tracts in Unit 17, Sebastian Highlands SH 17 - Tract "T" - BL 606 Schuman Waterway & Empress .18 + ac.# 2,520 SH 17 - Tract "U" - BL 597 Schuman Waterway & Empress .27 + ac.# 3,780 SH 17 - Tract "V" - BL 599 Schuman Waterway & Empress .34 ± ac.# 4,760 SH 17 - Tract "W" - BL 595 Schuman Waterway & Empress .28 + ac.# 3,920 TOTAL 1.07± Ac.$14,980 Exhibit C - 8 - WITHDRAWN This exhibit formerly consisted of SH 13 - Tract "C" - Blk 326 ("Commercial") 5.36 ± acres Revised: 2/14/91 Second Revision: 04/02/91 Third Revision: 04/16/91 Fourth Revision: 05/21/91 Fifth Revision: 07/15/91 "EXHIBIT C" (Continued) Exhibit C - 9 Public Service ("PS") Tracts SH 8 - Tract "C" - Blk 223 ("Park") SH 8 - + acres # - Blk 193 ("Park") SH 9 - Tract "A" - Blk 409 ("Park") 5,180 SH 10 - Tract "A" - Blk 211 ("Park") SH 10 - Tract "B" - Blk 267 ("Park") SH 10 - Tract "C" - Blk 264 ("Park") SH 10 - "E" - Blk 347 ("Park") - Blk 300 ("Park") Recommended 05/21191 8.24 + acres *# $ 115,360 1.90 + acres # 26,600 .37 ± acres # 5,180 2.49 + acres # 34,860 2.24 + acres # 31,360 1.15 + acres # 16,100 2.27 + acres # 31,780 SH 11 - Tract "A" - Blk 282 ("Park") 1.68 + acres # 23,520 SH 11 - Tract "B" - Blk 282 .37 + acres # 5,180 SH 11 - Tract "C" - Blk 372 ("Park") 4.42 + acres # 61,880 SH 11 - Tract "D" - (No Blk #)("Park") 3.81 + acres # 53,340 SH 11 - Tract "E" - Blk 347 ("Park") 2.93 + acres # 41,020 SH 13 - Tract "A" (Deep Swale) 3.99 + acres *# 55,860 SH 13 - Tract "B" (Swimming Hole) 10.08+ acres *# 141,120 SH 13 - Tract "D" (River) 14.07+ acres *# 196,980 SH 14 - Tract "B" - Blk 507 ("Park") 5.79+ acres *# 81,060 SH 15 - Tract "G" - Blk 488 ("Park") 4.62+ acres # 64,680 SH 17 - Tract "A" - (No Blk #)("Park") 3.55+ acres # 49,700 SH 17 - Tract "I" - (No Blk (wetlands) 33.73+ acres * 472,220 SH 17 - Tract "N" - Blk 589 3.96+ acres 55,440 SH 17 - Tract "Q" - Blk 604 ("Park") 1.72+ acres # 24,080 TOTAL $1,587,320 113.38 Acres EXHIBIT C - 10 "Entrance" Tracts - Main Street SH 1 - Tract "B" SH 1 - Tract "H" * GDC Offer 02/14/91 ** GDC Offer 04/09/91 *** GDC Offer 03/26/91 # GDC Offer 07/10/91 Note: Calculated @ $14,000/Acre Revised: 2/14/91 Second Revision: 04/02/91 Third Revision: 04/16/91 Fourth Revision: 05/21/91 Fifth Revision: 07/10/91 1.70+ acres $ 23,800 1.03+ acres ** 14,420 2.73 Acres $ 38,220 General Developmenloporation OPERATIONS CENTER 1673 S.E. NIEMEYER CIRCLE PORT ST. LUCIE. FLORIDA 34952 (407)335-5640; 335-9324 FAX (407)335-5926 Robert S. McClary Sebastian City Manager P. 0. Box 780127 Sebastian, Florida 32978 Dear Mr. McClary: 0 SUAC Ralph (Cap) Cain, III ASSISTANT VICE PRESIDENT COMMUNITY AFFAIRS July 10, 1991 In response to your proposal to settle General Development Corporation's obligations, GDC management presents the following Letter of Intent for your review and formal approval by the City Council of Sebastian. It is mutually understood by both parties a written agreement will need to be finalized for approval by GDC management, the Creditor's Committee and the bankruptcy court. The terms and conditions are as follows: 1. GDC will deed to the City of Sebastian all parcels of land listed in Exhibit A. (Copy attached). 2. GDC will provide easements on the Shiloh Youth Ranch Property and Boy Scouts of America property. 3. All taxes, interest payments, penalties, special assessments, and all cost associated with transfer of ownership on the properties listed in Exhibit A will be the responsibility of the City of Sebastian and must be paid before the transfer of title can be completed. 4. It is understood by both parties all obligations formally GDC's and listed on Exhibit B will be the responsibility of the City of Sebastian's. A11 Performance Bonds posted with the City for the items listed will be released upon consummation of a formal agreement. 1$91011 �� The City of Sebastian will either withdraw its claim or file a notice of satisfaction with the U.S. Bankruptcy ja Court and release General Development Corporation and its successors from any and all obligations set forth in the claim. 4 • -2- • Upon completion of your review, please confirm to me, in writing, the City's concurrence and proposed schedule for approval before the City Council. Any questions you may have, please give me a call. 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Park ) 1.68± acres SH 11- Tract C - Block 372 ("Park") 4.42± acred SH 11- Tract D ("Perk") 3.81± acres SH 11- Tract E Block 347 ("Park") 2.93± acres SH 14- Tract B - Block 507 ("Park") 5.79± acres SH 15- Tract G - Block 488 ("Park") 4.62± acres SH 17- Tract A - ("Park") 3.55± acres SH 17- Tract Q - Block 604 ("Park") 1.72± acres TOTAL 47.18± Acres 755926 t2 r. • CLAIM 0 EXHIBIT "B11 - GDC LIABILITIES 01/29/91 03/14/91 CITY G.D.C. ESTIMATE ESTIMATE 1. Unit 16 Street & Drainage $ 220,700 $ 64,509 2. Unit 17 Street & Drainage 1,364,472 739,222 3. Elkcam Waterway (Seawall & 230,400 - 0 - 0 - - 0 - 15,400 mom 10,000 05/21/91 CITY ESTIMATE $ 73,700 1,364,400 1,531,250 103,800 307,000 695,100 71,200 100,000 10,000 TOTAL $ 41460,256 $ 11059,531 $ 41256,450 (Water Control Structure) 1,531,250 4. Wentworth Ditch - Realignment 103,834 5. Construction Contingency (101) 322,000 6. Unit 11 Stormwater Retention Lake (Collier Waterway) Not Constructed 695,100 7. Emergency Reapirs To Date 15,400 8. Improperly Aligned Drainage Ditches (Estimate) 197,500 9. Repair Englar Bridge Over Collier Waterway in Unit 16 10,000 230,400 - 0 - 0 - - 0 - 15,400 mom 10,000 05/21/91 CITY ESTIMATE $ 73,700 1,364,400 1,531,250 103,800 307,000 695,100 71,200 100,000 10,000 TOTAL $ 41460,256 $ 11059,531 $ 41256,450 04� °� a P �Qq 40� OMe OP PELIG�N �`'�' City of Sebastian POST OFFICE BOX 780127 ❑ SEBASTIAN, FLORIDA 32978 TELEPHONE (407) 589-5330 ❑ FAX (407) 589-5570 SUBJECT: GDC Negotiaions Approved For Submittal By: City Manager EXPENDITURE REQUIRED: Agenda No. 27 Dept. of Origin: City Manager Date Submitted: 10/31/91 For Agenda Of: 11/06/91 Exhibits: - McClary Letter to GDC, Dated 10/31/91 with attachments AMOUNT BUDGETED: SUMMARY STATEMENT APPROPRIATION REQUIRED: On October 28, 1991 Deputy City Attorney, Richard A. Torpy and I met with GDC representatives in Port St. Lucie to review a proposed settlement agreement which had been prepared by GDC. In response to this negotiating session, I have sent a letter to Ralph (Cap) Cain, which summarizes the results of that meeting. Of course, all parties at the negotiating session were aware that any tentative agreement would be subject to ratification by GDC management, the creditors committee, the bankruptcy court and the Sebastian City Council. RECOMMENDED ACTION Review status of GDC negotiations. g6- 29v • s -��;PELfCAK l5 City of Sebastian POST OFFICE BOX 780127 ❑ SEBASTIAN, FLORIDA 32978 TELEPHONE (407) 589-5330 ❑ FAX (407) 589-5570 October 31, 1991 Mr. Ralph (Cap) Cain, III General Development Corporation 1673 Southeast Niemeyer Circle Port St. Lucie, FL 34952 Re: Settlement Offer Dear Mr. Cain: This letter is in response to our settlement conference on October 28, 1991 in Port St. Lucie. Representing GDC at this meeting were yourself, George Kulczycki, and Steven E. Goldman Esquire. Representing the City were Richard E. Torpy Esquire and myself. As a result of that meeting, I have made hand written revisions to Exhibit "A", Exhibit "A - 1", and Exhibit "A - 211. There are no revisions to be made to Exhibit "B". Exhibit "A" is to be modified as follows: Item 1. Add, "Unit 10" Item 2. Add, "Unit 1" Item 3. Add, "Unit 10" Item 4. The description of Schumann Lake, is to include both Tract "S", Tract "R", the area covered by water, the "Island", and all other property up to the adjacent property lines of Unit 9, Unit 16, and the GDU "Utitilies" site to the north. qD-206 • Mr. Ralph (Cap) Cain, III October 31, 1991 Page #2 5. Add, "Unit 11" • 6. The acreage, value, etc. may change slightly as Exhibit "A - 1" is revised. 7. Remaining "Park" land, may change as Exhibit "A - 2" is modified. Items 8, 9, 10, 11 and 12 are OK as is. Item 13, Change Unit 112" to Unit 111" Item 14, is OK as is. Item 15, Change Block 111" to Block "12" Item 16, 17, 18, 19, 20, 21 and 22 are OK as is. Exhibit "A - 1" has two (2) additions: Tract "I" Unit 17 and Tract "X", Unit 17. We recognize there may be additional modifications for residential lots which may have remained residential and not converted to drainage. Exhibit "A - 2" has changed by deleting Tract "A" Block 409, Sebastian Highlands Unit 9. This site was listed as "Park" but was actually conveyed to GDU and GDU Facilities are in place on this site. Other changes discussed at our meeting included: 1. Closing costs, but no property taxes, would be split 50- -50 between GDC and the City estimated at $8,000 ($4,000 each party). 2. "I" is in, and "N" is out, in Sebastian Highlands, Unit 17. 3. Tract "H" is in, but Tract "B" is out in Sebastian Highlands, Unit 1. 4. Tract "R" is in, and Tract "T" is out and Tract "S" stays in, in Sebastian Highlands, Unit 16. I� U Mr. Ralph (Cap) Cain, III October 31, 1991 Page #3 5. GDC will pay all taxes due on all parcels calculated to time of closing. In exchange, GDC will be allowed to complete road and drainage developments in Units 16 and 17 under the terms of the 1979 agreement, which allows street and drainage improvements to be built per the subdivision regulations at the time of plat recordation. Additionally, should GDC replat these portions of Unit 16 and 17, due to providing right-of-way for Fleming Street extended or to dedicate residential lots which may be converted to drainage tracts, GDC may develop road and drainage improvements under standards established in the 1979 agreement. 6. "Hardee Park" will be included in the properties deeded to the City. 7. "Fleming Street extended" - GDC agrees to replat a portion of Unit 16 prior to construction or, if sold, to require the buyer to replat this portion of Unit 16 prior to construction, to include a right-of-way to extend Fleming Street from Chesser's Gap to the east boundary of Unit 16 (Block 517) . It is the City's intent to ultimately extend Fleming Street from this point to U.S. #1. I understand that Steven E. Goldman, Esq., will prepare another draft of the settlement agreement, which will include these changes. Should you have questions or comments, please feel free to call me. RSM/ jmt cc: Richard E. Torpy, Steven E. Goldman, George Kulczycki, Sincerely, Robert S. McClary City Manager Esq. (with attachments) Esq. 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HW o 44 y, co O� N 3 3 3 0 A - o W (� z Q \ -P 1 { i `\ }r JJ H m E+ a .I Q O O r I 4 .04 H 6 N LFi N to 14 •-1 W U 6a a V) U N 0) to Vi U w +-+ a v aA xQ ac� x❑ m a 0 a a a0 +1 4.J 4-J,� C C .,� C .� G to b z o 0 ri v H F i14 U co tT Ch C% �D O N m i1 H N o sr x x �e d U U U C E- W � .- 14 N 4C co cA w N lili 4.0 Ua Ur-+ Ua, Uh +' 110 E-�o Ho Eo Fo 0 W U E- 0-4 N N N M WJ'Z T : T O TE--ZT-90 SIJO T �e.IAE JO F, 1T U1'dJJ UCID :.'.3 q�,,290 _:ENT E')'• -nimunity i'F'eration 5 -7-91 01:14FTI 4C "EXHIBIT A-1" TRACTS AND LOTS CONVERTED TO DRAINAGE DESCRIPTION Total Acreage Tract B, Unit 14 (Park) 7.42 Tract C, Unit 8 (Park) 8.01 Tract A, Unit 13 3.99 Tract B, Unit 13 10.08 Tract D, Unit 13 26.81 Tract H, Unit 17 3.76 Tract. I, K, Unit Unit 17 (fin• 1 33.28 2.80 �T tact _ '7r'Acf � Tract M, Unit 17 2.10 Tract R, Unit 17 2.44 Tract S, Unit 17 1.91 Tract 0, Unit 17 8.50 �-►'ra c t>( 1 U -� 7 7 111.10 Residential Lots Unit 11, Block 555, Lots 10 to 15 Unit 11, block 587, Lots 2 to 7 Unit 16, Block 545, Lots 12 to 17 Unit 16, Block 612, Loco 10 and 11 Unit 17, Block 449, Lots 1 to 11 Unit 17, Block 451, Lots 1 to 4 Unit 17, Block 462, Lots 11 and 12 Unit 17, Block 570, Loco 4 to 19 Unit 17, Block 578, Lots 1 to 16; 19 and 20 Unit 17, Block 579, Lots 12 to 14 and 19, 20, and 21 Unit 17, Block 580, Lots 1 to 3; 19 and 20 Unit 17, Block 582, Lots 6 to 11 and 18 to 23 Unit 17, Block 584, Lots 13 to 16 Unit 17, Block 586, Lots 6, 7, 8 and 19, 20, 21 Unit 17, Block 589, Lots 4 and 5 Unit 17, Block 596, Lots 12 to 15 and 18 to 22 Unit 17, Block 598, Lots 14 to 17 Total of 119 residential lots converted to drainage ..................................... 29.00 TOTAL ACREAGE 140.10 17-3559 26 9?U SZ -714T B`/:It OFerctIori!!• �7-91 01:14PH 407:_s � "EXHIBIT A-2" SH SH 8 - 8 - 9 - PUBLIC Z_ZSH Tract C - - Tract A - SERVICE Block Block Block ("PS") 223 ("Park") 193 ("Park") 409 ("Park") P_ RACTS 8.24± 1.90± .37+ - acres acres acres SH 10- Tract A - Block 211 ("Park") 2.49± 2.24± acres acres SH 10- Tract B - Block Block 267 ("Park") 264 ("Park") 1,15± acres SH 10- Tract C - - Block 300 ("Park") 2.27± acres SH 10- SH 11- Tract A - Block 282 ("Park") 1,68± 4.42± acres acted SH 11- Tract C - Block 372 ("Par)c") ('park") 3.81± acres SH 11- Tract D -- E - Block 347 ("Park") 2.93± acres SH 11- Tract SH 14- Tract B - Block 507 ("Park") 5.79± acres SH 15- Tract G - Block 488 ("Park") 4.62± acres ("Park") 3.55± acres SH 17- Tract A Q - - Block 604 ("Park") 1,72± acres SH 17- Tract TOTAL 47.18± Acres t,4?J6 EXHIBIT "B" - GDC LIABILITIES 01/29/91 03/14/91 05/21/91 CITY O.D.C. CITY CLAIM ESTIMATE ESTIMATE ESTIMATE 1. Unit 16 Street & Drainage $ 220,700 $ 64,509 $ 73,700 2. Unit 17 Street & Drainage 1,364,472 739,222 1,364,400 3. Elkcam Waterway (Seawall & (Water Control Structure) 1,531,250 230,400 1,531,250 4. Wentworth Ditch - Realignment 103,834 - 0 - 103,800 5. Construction Contingency (10%) 322,000 - 0 - 307,000 6. Unit 11 Stormwater Retention Lake (Collier Waterway) Not Constructed 695,100 - 0 - 695,100 7. Emergency Reapirs To Date 15,400 15,400 71,200 8. Improperly Aligned Drainage Ditches (Estimate) 197,500 - 0 - 100,000 9. Repair Englar Bridge Over Collier Waterway in Unit 16 10,000 10,000 10,000 TOTAL $ 41460,256 $ 1,0591531 $ 41256,450 �F aEiICAN City of Sebastian POST OFFICE BOX 780127 o SEBASTIAN, FLORIDA 32978 TELEPHONE (407) 589-5330 o FAX (407) 589-5570 November 13, 1991 Mr. Ralph (Cap) Cain, III General Development Corporation 1673 S.E. Niemeyer Circle Port St. Lucie, FL 34952 Re: Settlement Agreement Dear Mr. Cain: This letter supplements my letter to you dated, October 31, 1991. In response to correspondence from George Kulczycki and field inspections made by the City, we propose modifications to the exhibits. These modifications are noted on the attached Exhibit "A", Exhibit "A-1" and Exhibit "A-211. There are no changes to Exhibit "B". The changes to the Exhbits are as follows: 1. Item #2, on Exhibit "A" "One (1) residential lot - Airport Drive, East should be Block 12, Lot 2, Unit 1. The exhibit incorrectly showed Block 65. 2. Item #9, on Exhibit "A", should be Tract "C", Block 65, Unit 2. The exhibit incorrectly showed this as Tract "O". 3. Exhibit "A-1" should have the following lot added: Lot 42, Block 417, Unit 9. This lot is situated at the intersection of Schumann Drive and Schumann Lake and, along with Tract "R" (which is already included) is necessary for the proper operation, maintenance and future replacement of the water control structure.between this lot and Tract "R". 4. I have Tract "I", Unit 17 listed twice. 5. Tract "Y", Unit 17 should be added. This Tract along with Tract "X" is necessary for the proper maintenance, operation, and replacement of the water control structure under Schumann Drive. 6. Many of the residential building lots listed on previous Exhibits include lots which were included in plans and permitting applications to be converted to drainage tracts. However, many of these lots are in areas not yet constructed and, consequently, there is no reason for GDC to dedicate them to the City at this time. Therefore, the following residential lots wouldnot be included in those parcels conveyed from GDC to the City: 96,2.90 • Mr. Ralph (Cap) Cain, III November 13, 1991 Page #2 Unit 11, Block 555, Lots 10 - 15 Unit 17, Block 587, Lots 2 - 7 Unit 16, Block 545, Lots 12 - 17 Unit 16, Block 545, Lots 10 & 11 Unit 17, Block 580, Lot 20 Unit 17, Block 582, Lots 6 - 11 and 18 - 23 Unit 17, Block 584, Lots 13 - 16 Unit 17, Block 586, Lots 6 - 8 and 19 - 21 Unit 17, Block 596, Lots 12 - 15 and 18 - 22 Unit 17, Block 598, Lots 14 - 17 7. To be added to the list is a needed drainage right-of- way which presently houses a major drainage ditch. This is situated on Tract "P", Block 602, Unit 17 and is along the western property line; it is approximately 115 feet in width, running east and west and approximately 720 feet in length, running north and south; and adjoins Lots 1 - 9, Block 602, Unit 17. 8. Exhibit "A-2" should be modified to include Lots 12 and 13, Block 417, Unit 9. This would be an exchange for the "Park" tract GDC had previously committed to conveying, but has recently reneged. Tract "A" was the only park in Unit 9 and the City is willing to accept Lots 12 and 13 in lieu thereof. I point out that the above modifications are subject to the approval of the Sebastian City Council. As soon as you have prepared "Clean" copies of all of the Exhibits, I ask you to transmit them tome at your earliest possible convenience for our review. Should you have questions or comments, please feel free to call me. ;sin rely, Robert S. McClary City Manager RSM/jmt Attachments cc: W.E. Conyers, Mayor & Sebastian City Council (with attachments) Richard E. Torpy, Esq. (with attachments) Steven E. Goldberg, Esq. (with attachments) George Kulczycki, Director of Operations, GDC (with attachments) • FRE SE . FAEL,AC E . NAsx & T ORPY. P. A. ATTORNEYS AT LAW GARY B. FRESEt .TAMES H. FALLACE CHARLES TAN NASH* VINCENT G. TORPY, .TR RICHARD E. ToRPY GRE(iORY S. HANSEN J. PATRICK ANDERSON LAURA L. ANDERSON WILLIAM A GRIMM OF COUNSEL Robert S. McClary City Manager City of Sebastian P.O. Box 780127 Sebastian, FL 32978 ^� r DEC 1991 N Received o City Mangers 6% Office V December 17, 1991 Re: GDC Settlement Agreement Our File No. 90-5496 Dear Robb: 930 S. HARBOR CITY BLVD. SUITE 505 MELBOURNE, FLORIDA 32901 (407) 984-3300 FAX (407) 951-3741 t BOARD CERTIFIED IN TAXATION BOARD CERTIFIED IN ESTATE PLANNING AND PRORATE On Tuesday, December 17, 1991 I spoke with Steve Goldman regarding my letter of December 12, 1991. I believe Mr. Goldman's responses are going to be satisfactory. Enclosed is a copy of my December 12th letter so you can refer to that as I comment on Mr. Goldman's responses. With regard to item 1 of my letter, obviously, this will be changed to a more appropriate date. With regard to item 2, Mr. Goldman proposes that the language of the agreement be amended to simply remove the "construction" language and leave in the language with regard to maintenance obligations. With regard to item 3, Mr. Goldman is changing this language to give the City ten days in which to order the title search and twenty days in which to respond. This will provide the City a total of thirty days in which to respond after the agreement is signed. I believe this will be adequate time and we should accept this structure. With regard to item 4, Mr. Goldman is inserting the language I requested. With regard to item 5, Mr. Goldman agrees that our interpretation of the agreement is accurate. Robert S. McClary City of Sebastian December 17, 1991 Page -2- With regard to item 6, Mr. Goldman advised me that this information was forwarded to your office on December 12, 1991 by Mr. Kulczycki . If this is not correct, please let me know as I have advised Mr. Goldman that it is critical that we have that information. Mr. Goldman does not want to put that language into the contract if they have already delivered the documents to us. Therefore, please let me know if you have received them. With regard to item 7, Mr. Goldman has stated that our understanding is correct, although they have requested that the title insurance we obtained is at the minimum risk rate. With regard to item 8, the closing will take place in Sebastian. With regard to item 9, this date will be changed to January 30, 1992. With regard to item 10, Mr. Goldman proposes a change in the language we find objectionable to state that the City will require no further dedication that are not already set forth on applicable plats. I believe this addresses your concerns. Specifically, Mr. Goldman states that G.D.C. will make whatever dedications are already shown on any applicable plats, but they expect that Sebastian will not require additional dedications that have not already been indicated on the recorded plats. If this is consistent with your understanding, please let me know. Please contact me after your review of this letter so we can discuss any changes that may be necessary. Sincerely, FRESE, FALLACE, NASH & TORPY, P.A. Richard E. Torpy RET/lbg E FRESE, FALI.,ACE, NASH & TORPy, P. A ATTORNEYS AT LAW GARY B. FREsEt JAMES H. FALLAcE CHARLES TAN NASH* VINCENT G. TORPY, JR RICHARD E. ToRPY GREGORY S. HANSEN J. PATRICK ANDERSON LAURA L. ANDERSON WILLIAM A. GRIMM OF COUNSEL December 12, 1991 Steven E. Goldberg, Esq. 1221 Brickell Avenue Miami, FL 33131 Re: GDC Settlement Agreement Dear Mr. Goldberg: 930 S. HARBOR CITY BI.vD. SUITE 505 MELBOURNE. FLoIUDA 32901 (407) 984-3300 FAX (407) 951-3741 t BOARD CERTIFIED IN TAXATION BOARD CERTIFIED IN ESTATE PLANNING AND PROBATE Robb McClary and I have reviewed the most recent draft of the proposed Settlement Agreement between GDC and the City of Sebastian. The following issues need to be addressed with regard to this agreement. 1. On page 1, a change from the November 1991 date must be made. Obviously, this agreement cannot be signed in November 1991. We should probably just leave the month blank. It will probably be settled sometime in 1992. 2. With regard to item number 2 beginning of page 1, we are concerned with the language of number (iii). Specifically, this section requires the City of Sebastian to assume the maintenance and construction responsibilities and obligations included within the GDC obligations. The City of Sebastian does not agree to assume your construction responsibilities of the 1979 agreement. Rather, the City simply agrees to release you from your construction responsibilities. In addition, the City agrees to assume maintenance of any facilities which have already been put into place by GDC. Accordingly, I propose that (iii) be changed to read, "To release GDC from maintenance and construction responsibilities or obligations included within the GDC obligations." If this language is acceptable to you, please make the appropriate revisions to the agreement. Steven E. Goldberg, Esq. December 12, 1991 Page -2- 3. Item number 4, contained on page 3, requires the City to obtain a title commitment within ten days of the date the agreement. I am concerned that the City may be unable to obtain a commitment within ten days of the date of the agreement due to the fact that GDC is currently in bankruptcy and title companies may take additional time with regard to issuing a commitment. Further, I am also concerned that there may be documents and information required from GDC in order for the City to obtain said commitment. Obtaining these documents may cause delays. Therefore, I propose the following change to this language. "Within ten (10) days from the date of this agreement, the City shall apply for title insurance issued by a nationally recognized company for an Owner's ALTA Form B Marketability Title Insurance Policy for the GDC conveyance parcels." This redrafting of the language requires the City of Sebastian to act quickly with regard to applying for title insurance, however, it does not subject the City to elements which are beyond its control. 4. On page 5, line 14, you use the word "developer". I believe a parenthetical should be placed after the word "developer", just like the one contained in number 6 on page 5 which should read as follows, "(whether GDC or a successor thereof)." This will remove any ambiguity as to who the developer we are talking about is. 5. On page 6, number 8, with regard to taxes, you clearly state that GDC will be paying all outstanding taxes at the time of closing. Just to make sure we understand each other, the City of Sebastian interprets this provision that at date of closing, GDC will pay outstanding taxes up until the date of closing on a prorated basis. 6. Item 10, on page 7, with regard to the City's investigation, makes no statement or representation that GDC will provide to the City environmental reports which they have in their possession. I have already addressed this to you in a prior letter and insist that some provision be made in this agreement whereby GDC agrees to provide to us any environmental reports they may already have in their possession. As you will recall, during our meeting there were statements that GDC had already had these surveys prepared and would provide these documents to us prior to closing. 7. Item 12, on page 8, with regard to closing costs, just to make sure we understand each other, the City of Sebastian is expecting that GDC will split all closing costs with regard to this deal, as delineated in your paragraph 12. 0 0 Steven E. Goldberg, Esq. December 12, 1991 Page -3- 8. Item 13, on page 9, requires that this closing occur in your offices in Miami. The City of Sebastian believes it would be in the best interest of the City to have this closing in Sebastian. If for some reason you feel it is not practical to have this closing in Sebastian, let us know. The land, however, is in Sebastian and, therefore, I feel it would be an appropriate location for the closing. 9. Item 15, on page 11, has a date of December 19, 1991. Obviously this date will have to be changed as it does not appear this agreement will be able to be signed, much less approved by the Bankruptcy Court by December 19th. 10. One last item you will have to discuss with Mr. McClary is found on page 5 in the last paragraph of item 5. Specifically, this language states that GDC will never be required to dedicate any other land for parks, recreational or public uses to unit 16, unit 17 or any other plat already accepted by the City. My discussions with Mr. McClary indicate that this is not consistent with the agreement. Therefore, this will need to be discussed further for the purposes of correcting the language within the agreement. After you have reviewed these comments and made corrections on the agreement, please forward the agreement to Mr. McClary and myself as soon as possible. I appreciate your cooperation in this matter. Should you have any questions, please contact me. Sincerely, FRESE, FALLACE, NASH & TORPY, P.A. Richard E. Torpy RET/lbg cc: Mr. Robert S. McClary