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HomeMy WebLinkAbout1993 12 16 - Sales AgreementGENERAL DEVELOPMENT UTILITIES, INC., a Florida corporation SALE TO CITY OF SEBASTIAN, FLORIDA DECEMBER 16, 1993 1. Original Closing Statement 2. Original Recorded Warranty Deed 3. Original Recorded Assignment of Plat and Other Easements 4. Original Recorded Assignment of Easements 5. Original Certificate 6. Original Certificate of Authority 7. Original Bill of Sale 8. Original Assignment and Assumption of Business Records, Transferable Permits, Customer Deposits, Developer Agreements and Service Contracts 9. City of Sebastian Resolution No. R-93-63 10. City of Sebastian/General Development Utilities, Inc. Water and Wastewater Purchase and Sale Agreement 11. Affidavit 12. Original Commitment for Title Insurance 13. Agreement 14. State of Florida Certificate of Goodstanding AMIN 0OWN CLOSING STATEMENT SELLER: GENERAL DEVELOPMENT UTILITIES, INC., a Florida corporation BUYER CITY OF SEBASTIAN, FLORIDA SUR,IECf PROPERTY: Real property and improvements and personal property and fixtures comprising the water and sewer utilities system of Seller situate on real property located in Indian River County, Florida and commonly known as the Sebastian Highlands Water and Sewer System (the "System"). GOVERNING CONTRACT: Water and Sewer System Purchase and Sale Agreement between GENERAL DEVELOPMENT UTILITIES, INC., a Florida corporation, as Seller and City of Sebastian, Florida, as Buyer, dated October 12, 1993. DATE OF CLOSING: December 16, 1993 PLACE OF CLOSING: Melbourne, Florida TITLE INSURER: First American Title Insurance Company CLOSING AGENT: Greenberg, Traurig, Hoffman, Lipoff, Rosen & Quentel, PA. CREDIT BUYER DUE SELLER PURCHASE PRICE OF SUBJECT PROPERTY $3,650,000.00 ACCOUNTS RECEIVABLE DUE SELLER (See Note 1) P.O.C. (post closing) UNBILLED REVENUE DUE SELLER (See Note 2) P.O.C. (post closing) CREDIT FOR CUSTOMER DEPOSITS DUE BUYER (See Note 5) 40,944.96 CREDIT FOR CONNECTION CHARGES DUE BUYER 10,350.84 CREDIT FOR INVENTORY 8,125.38 FRANCHISE FEES AND UTILITY TAXES P.O.C. (post closing) (See Note 6) TOTAL DUE SELLER 3,658,125.38 LESS TOTAL CREDITS TO BUYER 51,295.80 BALANCE DUE SELLER 3,606,829.58 1. No later than twenty (20) days following the date hereof, Buyer shall pay the Seller for 95.00% of all accounts receivable zero (0) to sixty (60) days old as of the date hereof. Seller shall retain all accounts receivable which are delinquent for more than sixty (60) days (entitling Seller to the proceeds thereof if and when paid). Buyer shall promptly turn over to Seller any such delinquent receivables that may be subsequently paid to Buyer and shall use reasonable efforts to assist Seller in the collection of same, including, without limitation, discontinuing service to non-paying customers. 2. The Buyer shall pay the Seller for 95.00% of all unbilled revenue prorated as of the date hereof within thirty (30) days following actual billing. 3. Buyer agrees to the extent consistent with § 768.28, Florida Statutes, to indemnify and hold the Seller, its successors and/or assigns, harmless for any actions, expenses, damages and/or liabilities, including costs and attorney's fees at trial and all appellate levels, to which Seller may be exposed in the future GTH\GOLDMANJ\173492.1\12/14/93 • N AM. in connection with or arising out of the Seller's transfer of utility connection charges pursuant to Section 11.1(5) of the Governing Contract. 4. The Buyer agrees that the payment of any additional fees, which exceed those fees set forth in paragraph 5 of the Seller's Expenses of Sale attached hereto, for new license plates, registrations or otherwise for vehicles transferred to the Seller pursuant to the Governing Contract are the sole and exclusive responsibility of the Buyer. 5. Seller has on even date herewith credited to Buyer all customers' water and sewer service security deposits and accrued interest held by the Seller with respect to the System in the amount of $40,944.96. Buyer agrees to continue to provide utility services to those customers for which a deposit is held and, to the extent consistent with Section 768.28, Florida Statutes, to fully indemnify, defend and hold Seller harmless for any claims, actions, expenses, liabilities, costs or damages, including costs and attorneys' fees at trial and/or appeal, to which Seller may be exposed in the future as a result of the transfer of such customer deposits. 6. Seller shall pay Purchaser all Franchise fees and utility taxes in accordance with subparagraph 11.2 of the Governing Contract. 7. Pursuant to Section 31 of the Governing Contract, in each instance in which either the Seller or the Buyer is to receive money from the other party after the date hereof pursuant to the provisions of the Governing Contract or this Closing Statement, the party who is entitled to receive the money under the terms of the Governing Contract or this Closing Statement shall have the right to inspect, at its own expense, those books and records of the other party as may be necessary to corroborate the accuracy of the amount of money received by the party, within thirty (30) days of receipt of payment. 8. The parties agree that in the event of any mathematical, typographical or clinical errors in this Closing Statement, at the request of either party, the parties will make the appropriate adjustments hereto and remit any monies which may be determined to be owing. GTH\GOLDMANJ\173492.1\12/14/93 .-. SELLER'S EXPENSES OF SALE Seller hereby authorizes the deduction of the following described expenses of sale from the Cash Balance Due Seller as shown on the Closing Statement and hereby requests and directs that the Closing Agent disburse directly to the persons hereinafter named the following amounts to cover Seller's expenses of sale, as follows: 1. To First American Title Insurance Company $ 1,213.00 as payment for the cost of preparing the title commitments. 2. To Greenberg, Traurig et al. as payment $13,025.00 for the cost of the title premiums. 3. To Atlantic Coastal Title Corporation $ 539.00 for the cost of title reports. 4. To Indian River County Clerk of $ 250.00 The Circuit Court as payment for the recording costs of any corrective documents, satisfactions an/or releases of Gens/mortgages (estimated) 5. To Indian River Clerk of the Circuit Court in payment of Documentary Stamp Tax payable on the Deed calculated on $3,650,000.00. $ 25,550.001 6. Payoff of Leased Vehicles to G.E. Capital $ 511.00 Fleet Services 7. Payoff of Real Estate Taxes through $ 10,713.33 December 16, 1993 8. Payoff of Personal Property Taxes through $ 84,807.10 December 16, 1993 TOTAL SELLER'S EXPENSES: $136,608.43 1 To be held in escrow by Frese, Nash & Torpy, P.A. GTHWOLDMANA173492.1\12/14/93 3 BUYER'S EXPENSES OF SALE Buyer, in addition to the Cash Due Seller as shown above, is obligated for the payment of and simultaneously herewith has paid to Greenberg, Traurig, et al., closing agent, the funds required to pay the following described expenses of purchase, and Buyer hereby requests and directs that the Closing Agent disburse directly to the persons hereinafter named the following amounts to cover Buyer's expenses of purchase, as follows, to wit: 1. To Indian River County Clerk of the Circuit Court as payment for the cost of recording the Deed and Assignments of Easements (estimated) TOTAL BUYER'S EXPENSE GTH\GOLDMANJ\173492.1\12/14/93 4 75.00 $--i5 00 SUMMARY CASH BALANCE DUE CASH BALANCE DUE TO SELLER FROM PAGE 1 3,606,829.58 FROM BUYER FROM PAGE 1 3,606,829.58 LESS SELLER'S (-) PLUS BUYER'S EXPENSES (+) EXPENSES OF SALE FROM PAGE 4 75.00 FROM PAGE 3 136,608.43 NET CASH DUE TO SELLER 3,470,221.15 TOTAL CASH DUE FROM BUYER 3,606,904.58 The Net Cash Due to Seller of $3,470,221.15 will be immediately wired by Buyer to Seller in good federal funds in accordance with the wire instructions set forth as Exhibit "A" attached hereto. The total of the Seller's Expenses (less items 5, 7 and 8 (being $15,538.00) will be immediately wired by Buyer to Greenberg, Traurig, et al. in good federal funds in accordance with the wire instructions set forth as Exhibit 'B" attached hereto to be disbursed thereafter for payment of the expenses set forth on page 3 hereof. The total of items 7 and 8 of Seller's Expense and Buyer's Expenses (being�� ^'vrrr^oio1�) are being retained by Frese, Nash & Torpy, PA. for payment of all recording fees and documentary stamp taxes due in connection with the recording of the deed, assignment of easements, and assignment of plat easements and for payment of all real estate taxes and personal property taxes. Item 5 of Seller's Expenses is to be held by Frese, Nash & Torpy. PA. pursuant to separate escrow agreement to be executed by and between the parties hereto. GTN\G0LDMNJ\173492.1\12/14/93 hook iok APPROVAL OF CLOSING STATEMENT Seller and Buyer hereby acknowledge that they have read and approved the within and foregoing Closing Statement and agree that it accurately reflects the substance of the transaction and hereby approve the Buyer's payment and the Closing Agent's disbursement of the proceeds of the subject transaction in the manner, in the amounts and to the persons hereinabove set forth. Items designated "P.O.C." shall be paid by Buyer after Closing as provided in the Governing Contract. In the case of estimated closing costs and expenses directed to be paid, as aforesaid, Seller and Buyer understand and agree that in the event that the actual expenses are less than or more than the estimate, Seller and Buyer, as the case may be, will be refunded the difference between the estimate and the actual expenses. IN WITNESS WHEREOF, Buyer and Seller have caused this Closing Statement to be executed by their respective officers thereunto duly authorized as of the Closing Date. GENERAL DEVELOPMENT UTILITIES, INC., a Florida ora on BY: 45C4 Its: President "SELLER" CITY OF SEBASTIAN, FLORIDA BY: Its: "BUYER" UNDERTAKING OF CLOSING AGENT Closing Agent hereby agrees with Buyer and Seller to undertake its duties as Closing Agent for the subject purchase and sale transaction, to abide by and comply with the within and foregoing instructions of Buyer and Seller, and to disburse the proceeds of the subject purchase and sale transaction at Closing in the manner, to the persons, in the amounts, and at the times hereinafter specified in the within and foregoing Closing Statement. GREENBERG, TRAURIG, HOFFMAN, LIPOFF, ROSEN & QUENTEL, PA. BY: `Ate J UNDERTAKING OF FRESE. NASH & TORPY The undersigned hereby agrees with Buyer and Seller to (i) promptly record the original Warranty Deed, Assignment of Easements and Assignment of Plat and Other Easements in the public records of Indian River County, Florida and to promptly provide evidence of recordation to the Closing Agent; and (ii) pay the outstanding real and personal property taxes on December 16, 1993 and to promptly provide Closing Agent with evidence of such payment. FRESE, NASH & TORPY, P.A. BY: 1//' GTH\GGLONANJ\173492.1\12/14/93 RETURN TO =ete�g IAA" 1 dad �� •� 'f'1O S. +i6i¢ano2 0,211 B�JD I s7Ez ScS' DOCUMENTARY STAMPS ' rt�L�cr.e.AE ,YL -3a qv) DEED 5 .70 This Instrument prepared by or under the supervision of: NOTE $ Name: Joel K. Goldman, Esq. JEFFREY K. BARTON, CLERK p o Address: Greenberg, Traurig, Hoffman, Upoff, Rosen & Cuentel, P.A INDIAN RIVER COUIM S n� 1221 &Ickell Avenue 1 Miami, Florida 331313261 (Space reserved for Clerk of Court) Property Appraiser's Parcel 1. D. # RECORD VERIFIED JEFFREY K. BARTON CLERK CIRCUIT COURT INDIAN RIVER CO., FLA WARRANTY DEED Grantee(s) Taxpayer I.D.#Sq- f000yZ-1 THIS DEED Is made as of the I W"- day of December, 1993, between GENERAL DEVELOPMENT UTILITIES, INC., a Florida corporation (the "Grantor) and CITY OF SEBASTIAN, FLORIDA (the "Grantee"), whose address Is 1225 Main Street, Sebastian, Florida 32958. WITNESSETH: GRANTOR, In consideration of Ten ($10.00) Dollars and other good and valuable consideration paid by Grantee, the receipt and sufficiency of which are hereby acknowledged, has granted, bargained and sold, and by these presents does grant, bargain and sell, to Grantee, and Grantee's successors and assigns forever, the following property located In Indian River County, Florida (the "Property"), to-wft: See Exhibit "A" attached hereto and by this reference made a part hereof. SUBJECT TO: 1. Taxes and assessments for the year 1993 and subsequent years. 2. All laws, ordinances and governmental regulations, including, but not limited to, all applicable building, zoning, land use and environmental ordinances, regulations, restrictions, prohibitions and other requirements, none of which will prevent or hinder the present use of the Property. 3. Restrictions and easements for utilities and drainage set out in recorded plats of subdivisions. 4. Restrictions of record (except liens, encumbrances or mortgages) that do not Impair, restrict or inhibit the present use of or improvement to the Property as permitted by applicable zoning and land use regulations presently in effect and that are not coupled with a forfeiture or reversionary provision, without the intention of reimposing same. 5. All matters which would be disclosed by an accurate survey of the Property. TO HAVE AND TO HOLD unto Grantee and Grantee's successors and assigns in fee simple forever. GRANTOR hereby warrants the title to the Property subject to the foregoing matters and will defend the same against the lawful claims of all persons whomsoever. IN WITNESS WHEREOF, Grantor has executed this Deed as of the day and year first above written. Signed, sealed and delivered in the presence of: k i 11'� Sign Name Print Name: Sign Name: Print Name: V S=cl G06," GENERAL DEVELOPMENT UTILITIES, INC., a Florida cor or tion BY: L/ Print Name: Charles E. Faucher r. Title: President Address: 2601 South Bayshore Drive Miami, Florida 33133 v 9-0 --_jN t0 W 0 C-) rn This Deed is being given under Grantee's threat of condemnation, and is therefore C) exempt from documentary stamp taxes pursuant to that certain Florida Supreme Court — decision captioned Florida Department of Revenue v. Orange County, 620 So. 2d 991 O (Fla. 1993). CD CD G-) CD 1-0 co STATE OF FLORIDA ) ) SS: COUNTY OF 1lkr -r& VJ F?-.cuOtZ ) The foregoing Warranty Deed was acknowledged before me this IN day of December, 1993 by Charles E. Fancher, Jr., as President of GENERAL DEVELOPMENT UTILITIES, INC., a Florida corporation, on behalf of the corporation. He personally appeared before me,Ls personally known to me) or produced as Identification. -?CTAL NOTARY SEAL" ., ;. HEARTSFIELD +` TzP- 3/18/94 em\mlw,u\16)56. qugOHa Notary: - Print Name: c A C . A! Commission No: A 7 330 Notary Public, State of VLOikrpa My commission expires: a - i IF- - CD CD -- Q0 co N PARCEL I: All of Tract "D" as shown on the plat of SEBASTIAN HIGHLANDS UNIT -17, as recorded in Plat Book 8, Page 46, Public Records of Indian River County, Florida. PARCEL II: A parcel of land located in the Northeast 1/4 of the Northeast 1/4; LESS the East 20 acres thereof and a portion of the Southeast 1/4 of the Northeast 1/4 of Section 18, Township 31 South, Range 39 East, Indian River County, Florida, and being more particularly described as follows: Begin at the Northeast corner of said Section 18, Township 31 South, Range 39 East; thence South 89022136" West, along the North line of the said Northeast 1/4 of Section 18, a distance of 657.45 feet to the Northwest corner of the said East 20 acres of the Northeast 1/4 of the Northeast 1/4; thence South 00001124" West, along the West line of the said East 20 acres, a distance of 1325.55 feet, to a point in the South line of the said Northeast 1/4 of the Northeast 1/4; said point also being the Northwest corner of Sebastian Highlands Unit 9, as recorded in Plat Book 6, Page 36A, Public Records of Indian River County, Florida; thence continue along the boundary of said plat of Sebastian Highlands Unit 9, the following courses and distances: thence continue South 00001124" West, a distance of 130.66 feet to a point in a curve concave to the Southwest having a radius of 435.64 feet, the chord of which bears North 85020121" West; thence Westerly along the arc of said curve, a distance of 70.30 feet, through a central angle of 0901414811, departing said platted boundary; thence North 00001124" East, a distance of 54.11 feet; thence South 89019102" West, a distance of 71.5 feet more or less, to the Easterly waters edge of Schumann Lake; thence Northwesterly, Westerly, Southerly, Southeasterly, Southwesterly, Westerly and Southerly meander the waters edge of Schumann Lake, a distance of 1847 feet, more or less, to the South line of the said Southeast 1/4 of the Northeast 1/4; thence South 89015127" West, along the South line of the said Southeast 1/4 of the Northeast 1/4, a distance of 97.9 feet, more or less, to the Southwest corner of the said Southeast 1/4 of the Northeast 1/4; thence North 00°A1125" West, along the West line of the said East 1/2 of the Northeast 1/4, a distance of 2652.47 feet to the aforesaid North line of the Northeast 1/4; thence North 89022136" East along the said North line, a distance of 673.15 feet to the Point of Beginning. PARCEL III: The East 200 feet of Tract "A", SEBASTIAN HIGHLANDS, UNIT 9, according to the plat thereof, recorded in Plat Book 6, Page 36 and 36A, Public Records of Indian River County, Florida. 0 O O O -o CD W RETURN 10-se��iav, seryl HE`�"�ea�,2 SrRb! This instrument prepared by or under the supervision of: Name: Joel K. Goldman, Esq. Address: Greenberg, Traurig, Hoffman, Lipoff, Rosen & Quentel, P.A. 1221 Brickell Avenue Miami, Florida 33131-3261 Parcel I.D.# RECORD VERIFI!_d FREY K,BARTON CLERK CIRCUIT COURT INDIp,N 'DIVER CO.. FLA (Space reserved for Clerk CJ ASSIGNMENT OF PLAT AND OTHER EASEMENTS THIS ASSIGNMENT OF PLAT EASEMENTS ("Assignmentle) is made as of the � day of December, 1993 between ATLANTIC GULF COMMUNITIES CORPORATION, a Delaware corporation, and GENERAL DEVELOPMENT UTILITIES, INC., a Florida corporation (collectively, "Assignor@), whose address is 2601 South Bayshore Drive, Miami, Florida 33133, and CITY OF SEBASTIAN, FLORIDA ("Assignee") whose address is 1225 Main Street, Sebastian, Florida 32958 and whose taxpayer identification number is 5 9— (. a 0 o y L'1 W I T N E S S E T H: ASSIGNOR, in consideration of Ten and No/100 Dollars ($10.00) and other good and valuable consideration paid by Assignee to Assignor simultaneously herewith, the receipt and sufficiency of which are hereby acknowledged, has sold, assigned, transferred, set over and delivered, and by these presents does sell, assign, transfer, set over and deliver to Assignee, and Assignee's successors and assigns forever, all of Assignor's right, title and interest, if any, in and to the following: (i) those certain platted utility easements located in INDIAN RIVER COUNTY, FLORIDA and described on those certain plats set forth on Exhibit IRA" attached hereto and by this reference made a part hereof (the "Plat Easementsel); and (ii) those other easement areas for which easement agreements have yet to be entered into with the respective property owners and described on Exhibit nBu attached hereto and by this reference made a part hereof (the IlAdditional Easementsve), which are currently used by Assignor in the operation of the existing utility system commonly known as the G.D.U. Sebastian Highlands Water and Sewer System (the ItSystem'l) . TO HAVE AND TO HOLD unto Assignee and Assignee's successors and assigns forever, subject to the terms, covenants and provisions contained in the Plats, the Additional Easements and the reservation set forth below. ASSIGNEE hereby accepts the foregoing Assignment subject to: (i) the obligations of Assignor under the Plat Easements and the Additional Easements; (ii) all of the terms, covenants and provisions contained in the Plats and the Additional Easements; and (iii) the reservation set forth below. ASSIGNOR hereby reserves the right and privilege for itself and its successors and/or assigns, to utilize the Plat Easements in common with Assignee; provided Assignor's use of the Plat Easements does not unreasonably interfere with Assignee's use, occupation or enjoyment thereof. The parties hereto covenant and agree to cooperate in good faith to obtain written easement agreements from the respective owners of the properties where the Additional Easements are located. .1 IN WITNESS WHEREOF, the undersigned have executed and delivered this Assignment as of the day and year first above written. Witnessed by: Witness: Qa<Q rr^� Print Name - 1-oldM�.,,, Witness: Print Name • �N.lES N-EAP_CD Witness • l l Print Name: S Witness: Print Name: &t4atas L4- FrECA Witnes Print Witnes Print STATE OF FLORIDA ) ) SS: COUNTY OF ZoDrj JQ.zVEj?) ASSIGNOR: ATLANTIC GULF CORPORATION, corporation. Name: MARC Title: VICE COMMUNITIES Delaware, 11 [CORPORATE SEAL] GENERAL DEVELOPMENT UTILITIES INC., a Florid corporation BY CHA Name: RLES E. F Etc; ,� Title: PRESIDENT [CORPORATE SEAL] ASSIGNEE: CITY OF SEBASTIAN, FLORIDA By: : N A joce- [SEAL] The foregoing instrument was acknowledged before me this lq day of December, 1993 by MARCIA H. LANGLEY, as Vice President of ATLANTIC GULF COMMUNITIES CORPORATION a Delaware corporation, on behalf of the corporation onally-appeared before m or produced as identification. 1 \►JRMA Print Name: f t1a QtES c • 61 Ea�i5�iE Notary Public, State of Florida Commission No. Q sq 330 My commission expires: 3 -/$- [Notarial Seal] "OFFICIAL NOTARY SEAL° CHARLES C. REARTSFIELD MY COMB• EXP, 3/18/94 0 O O O c� O l0 CD U1 ,•mhk STATE OF FLORIDA ) ) SS: COUNTY OF ZMZ>1A&;P-rVW-) The foregoing instrument was acknowledged before me this ji— day of December, 1993 by CHARLES E. FANCHER, JR., as President of GENERAL DEVELOPMENT UTILITIES I INC. I a Florida corporation, on behalf of the corporation. a P-groonally anixeared be ore or produced as...identification. "OFFICIAL NOTARY SEAL" CHARLES C. HEARTSFIELD MY CONN. EXP. 3/18/94 STATE OF FLORIDA ) ) SS: COUNTY OF XUDE" OWES) Notary Public, State of. Fl Commission No. AA75933 My commission expires: 3— [Notarial Seal] The foregoing instrument was acknowledged before me this i lra day of December, 1993 by LONNzr-e--r0WE:a— , as �LAyoQ of CITY OF SEBASTIAN, FLORIDA, on behalf of the city. He personally appeared before me, is personally known to me or produced FLA.Pa.LiCvLLSE as identification. Notary: �' Print Name: C1ALL6c . CA4F-T5F�(1> Notary Public, State of Florida Commission No. AA759336 [Notarial Seal] mx\wuumUout• �4 Va/� qai S*Y." d d * R F M "w'�q� �tJ• o$'d* "OFFICIAL NOTARY SEAL" CHARLES C. HEART.SFIELD MY COM. EXP. 3/18/94 O C] CD G7 k.D CD M DEC 13 193 13:51 GENERAL DEVELOPEMENT UTILITIES P.3/27 Sebastian Highlands - List of Plats Being 7 6 6 8 6 9 through 14 9•. 6 36 & 36 A 9 7 2 9 8 71 10 6 37, 37 A through 37 0 11 7 56, 56 A through 56 L 12 7 57 & 57A 14 8 43, 43 A through 43 C 15 8 44, 44 A through 44 D 16 8 45, 45 A through 45 J 17 8 46, 46 A through 46 P 0 O O CD G-) O k-0 a --_7 EXHIBIT "BIR None 0 O O O -o c-� O UO co Co RETURN TQ Feesc°^ rlasu s-t-o� 6& � v 11 Ra Eoa. CA 3Lj bj S -M !�O i HeL@oueA-, / 3rq D I This instrument prepared by or under the supervision of: Name: Joel K. Goldman Address: Greenberg, Traurig, Hoffman, Lipoff, Rosen & Quentel, P.A. �� 1221 Brickell Avenue is / Miami, Florida 33131-3261 RESERVED FOR CLERK Parcel I.D.# Grantee's Taxpayer I. D.. 42 RECORD VERIFIED JEFFREY K. BARTON CLERK CIRCUIT COURT ASSIGNMENT OF EASEMENTS INDIAN RIVER CO.. FLA I�y THIS ASSIGNMENT OF EASEMENTS ("Assignment") is made as of the LtL day of December, 1993 between GENERAL DEVELOPMENT UTILITIES, INC., a Florida corporation ("Assignor"), whose address is 2601 South Bayshore Drive, Miami, Florida 33133, and CITY OF SEBASTIAN, FLORIDA ("Assignee"), whose address is 1225 Main Street, Sebastian, Florida 32958. W I T N E S S E T H: ASSIGNOR, in consideration of Ten and No/100 Dollars ($10.00) and other good and valuable consideration paid by Assignee to Assignor simultaneously herewith, the receipt and sufficiency of which are hereby acknowledged, has sold, assigned, transferred, set over and delivered, and by these presents does sell, assign, trans- fer, set over and deliver to Assignee, and Assignee's successors and assigns forever, the following easements located in Indian River County, Florida (collectively, the "Easements"), to wit: See Exhibit "A" attached hereto, and by this reference made a part hereof. SUBJECT TO: 1. Ad valorem real estate taxes and assessments for the year 1993 and subsequent years. 2. Restrictions set out in the recorded plats of subdivisions covered by the Easements. 3. Restrictions, covenants, reservations and other matters of record (except liens, encumbrances or mortgages) without the intention of reimposing the same. 4. All laws, ordinances, governmental regulations, (including, but not limited to, all applicable building, zoning, land use and environmental ordinances and regulations), restrictions, prohibitions and other requirements imposed by governmental authority. 5. All matters which would be disclosed by an accurate survey of the Easements. 6. The terms, covenants and provisions contained in the Easements. TO HAVE AND TO HOLD unto Assignee and Assignee's successors and assigns forever, subject, however, to the terms, covenants and provisions contained in the Easements. ASSIGNEE hereby accepts the foregoing Assignment subject to: (i) the obligations of Assignor under the Easements; and (ii) all of the terms, covenants and provisions contained in the Easements. IN WITNESS WHEREOF, the undersigned have executed and deli- vered this Assignment as of the day and year first above written. (SIGNATURES CONTINUED ON NEXT PAGE] mx�mio-wa� ioav �.xu U.M Witnessed by: Witness: Print Name•((� � Witness:_ �1nX— Print Name:_ Witnessed by: Witnes Print Witnes Print STATE OF FLORIDA ) :titcsae��eV) SS: COUNTY OF BABT!, QO ASSIGNOR: GENERAL DEVELOPMENT UTILITIES, INC. a Florida corporation BY: Name: Charles E. nchr,;J Title: President [CORPORATV SEAL] ASSIGNEE: CITY OF BASTIAN, FLORIDA BY: Name: _(a Title:,_ M!aq P— [SEAL]: / -e,g7TlRyAl/- Ci�y The foregoing instrument was acknowledged before me this day of December, 1993 by Charles E. Fancher, Jr., as President of GENERAL DEVELOPMENT UTILITIES, INC., a Florida corporation, on beha�f of the co*poration. He has personally appeared before me, T��ersonally knowti.,to or produced as identification_ "OFFICIAL NOTA..",Y SEAL° CHAP.LES C. HEARTSFIEGD MY f,Cta:. Grip. 3%18/94 STATE OF R4-vA ) ) SS: COUNTY OF SaiDrA4J Pz-1/E?} Notary: �C Print Name: CUAetFSC. NsS Notary Public, State of Flor Commission No. AA 7sg33o My commission expires: 3--1 [Notarial Seal] The foregoing instrument was acknowledged before me this 14T64 - day of December, 1993 by L_awurE Pa. RoWEtL , as µA-Vo2 of CITY OF SEBASTIAN, FLORIDA. He personally appeared before me, is personally known to me or producedFL.i]2.tsaQ-1Seas identification. 4'll1'��'", n o pol .f Notary Public, State of] Commission No. AA7593 My commission expires: B [Notarial Seal] •x «V ug. F,2, °OFFIC tRL ir.,,*r„� SFAL„ G'3 '/t8/94 O '/18/94 l0 rnmm�uiu„au,.vu,noin 2 4.0 0 EXHIBIT "A" Grant of Easement by The City of of General Development Utilities, Records Book 995, at Page 123. Sebastian, Florida in favor Inc. recorded in Official Grant of Utility Easement by Atlantic Gulf Communities Corporation in favor of General Development Utilities, Inc. recorded in Official Records Book 962, at Page 2854. Grant of Utility Easement by Atlantic Gulf Communities Corporation in favor of General Development Utilities, Inc. recorded in Official Records Book 962, at Page 2858. Water Line Easement by Indian River County School District in favor of General Development Utilities, Inc. recorded in Official Records Book 725, at Page 600. Deed of Easement and Bill of Sale of Utility Facilities by Indian River County School Board in favor of General Development Utilities, Inc. recorded in Official Records Book 727, at Page 173. Grant of Easement by Sebastian General Partnership, S.F.T. in favor of General Development Utilities, Inc. recorded in Official Records Book 933, at Page 2263. All recording references are to the Public Records of Indian River County, Florida. /-N CERTIFICATE The undersigned Assistant Secretary of ATLANTIC GULF COMMUNITIES CORPORATION, a Delaware corporation (the "Corporation"), hereby certifies as follows on behalf of the Corporation: The attached are true, correct and complete copies of the Articles of Incorporation, Amendments to the Articles of Incorporation, By-laws, and Amendments to the By-laws of the General Development Utilities, Inc., a Florida corporation, as of November 9, 1993. IN WITNESS WHEREOF, I have affixed my name as Assistant Secretary of this Corporation, and have affixed the corporate seal of the Corporation this 10th day of November, 1993. C MARCIA H. IANGL4Y, 4ssisWt Secretary [Corporate Seal] .-, CERTIFICATE OF AUTHORITY roo The undersigned, Secretary of GENERAL DEVELOPMENT UTILITIES, INC., a Florida corporation (the "Corporation"), hereby certifies on behalf of the Corporation that the following resolutions were adopted by Written Consent of the Directors and Sole Shareholder of the Corporation on December 6, 1993, and said resolutions were adopted in accordance with the Bylaws of the Corporation and the statutes of the State of Florida, and further certifies that the resolution is in full force and effect and has not been altered, modified or rescinded: BE IT RESOLVED, that pursuant to that certain Purchase and Sale Agreement (the "Contract") by and between the CITY OF SEBASTIAN, FLORIDA and the Corporation, the Corporation be and hereby is authorized to execute the deeds, bills of sale, assignments, affidavits, certificates, closing statements, and such other instruments and documents as may be necessary or required by the CITY OF SEBASTIAN, FLORIDA (collectively, the "Purchase and Sale Documents"); and BE IT FURTHER RESOLVED, that the terms of the Contract are hereby ratified and confirmed and that the Corporation be and hereby is authorized to sell, convey, assign, set over, transfer, and deliver to the CITY OF SEBASTIAN, FLORIDA, the Subject Property pursuant to the terms and provisions of, and for the consideration provided in the Contract; and BE IT FURTHER RESOLVED, that CHARLES E. FANCHER, JR., as President of this Corporation and MARCIA H. LANGLEY, as Vice President and Secretary of this Corporation, be and each of them, acting alone, is hereby authorized and directed to negotiate the specific terms and conditions of the Purchase and Sale Documents and to execute and deliver on behalf of this Corporation said Purchase and Sale Documents as may be necessary or required by the CITY OF SEBASTIAN, FLORIDA, in this regard, all of which shall contain such terms and conditions as any such officer of this Corporation shall determine to be in the best interest of this Corporation, with the signature of said officer to be conclusive evidence of such determination and of the authority of said officer to execute and deliver the same. IN WITNESS WHEREOF, I have affixed my name as Secretary of this Corporation, and have affixed the corporate seal of the Corporation this _1\4 X� day of December, 1993. (Corporate Seal) r. BILL OF SALE GENERAL DEVELOPMENT UTILITIES, INC, a Florida corporation, ("Seller") for and in consideration of the sum of TEN AND N0/100 DOLLARS ($10.00) and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged from CITY OF SEBASTIAN, FLORIDA (including its successors and assigns "Buyer"), does hereby grant, bargain and sell to Buyer, all those certain goods and chattels, including, without limitation, all water production, treatment plants, storage treatment, transmission, distribution, pumping and other water facilities, including, without limitation, water wells and fire hydrants, and all wastewater treatment plant, wastewater collection, transmission, pumping and disposal facilities of every kind and description whatsoever, including , without limitation, all trade fixtures, leasehold improvements, lift stations, pumps, generators, controls, collection and transmission pipes or facilities, valves, meters, service connections, and all other water and/or wastewater service connections, and all other water and wastewater physical facilities, together with all machinery, equipment, vehicles, tools, laboratory equipment and office equipment; all choses in action, including but not limited to, warranty claims, claims for damages, the right to sue for any past infringement or other causes of action; subject to all applicable1lLIcensing agreements and to all applicable copyright laws, non- -ai computer software which is used or was used, in the course of the day-to-day operations of the Sebastian Highlands Water and Sewer System (the "System"), including, without limitation, billing programs and accounting programs; and all right, title and interest in and to all inventory (collectively, the "Personalty") owned by Seller and located on that certain real property in Indian River County more particularly described on Exhibit "A" attached hereto and by this reference made a part hereof or used or held for Seller's exclusive use in connection with the System. TO HAVE AND TO HOLD, the Personalty unto Buyer forever. SELLER hereby covenants with Buyer that Seller is the lawful owner of the Personalty and that Seller has good right to sell the same as aforesaid. SELLER hereby warrants the title to the Personalty and will defend the same against the lawful claims of all persons whomsoever. N1, EXECUTED as of this � day of December, 1993. Signed, sealed and delivered in the presence of: c�owwwq�ow.c�u,n,w GENERAL DEVELOPMENT UTILITIES, IN/C/, �a F ori a corporation CHARLES E. FANCHER President [Corporate Seal] STATE OF FLORIDA ) COUNTY OF ZJvtx" j? JWW The foregoing instrument was acknowledged before me this day of December, 1993, by CHARLES E. FANCHER, as President GENERAL DEVELOPMENT UTILITIES, INC, a Florida corporation, on behalf of the corporation. He personally appeared before me and is personally known to me or produced a driver's license as identification. My Commission Expires: 3-rg-91f GM\�Itwn�Gl\16IG 61.3\11/]0/9l _ - k.. me Na. c 6Fa C s . Aef4 SFrEtD Commission NO: AA7S9330 Notary Public State of Florida [Notarial Seal] x w s 'Kle" OF FL.CP: � "OFFICIAL NOWY SEAL° CHARDS r. HF.ARTSFIELD MY c0thl. LXP. 3/18/94 PARCEL I: All of Tract "D" as shown on the plat of SEBASTIAN HIGHLANDS UNIT -17, as recorded in Plat Book 8, Page 46, Public Records of Indian River County, Florida. PARCEL II: A parcel of land located in the Northeast 1/4 of the Northeast 1/4; LESS the East 20 acres thereof and a portion of the Southeast 1/4 of the Northeast 1/4 of Section 18, Township 31 south, Range 39 East, Indian River County, Florida, and being more particularly described as follows: Begin at the Northeast corner of said Section 18, Township 31 South, Range 39 East; thence South 89022136" West, along the North line of the said Northeast 1/4 of section 18, a distance of 657.45 feet to the Northwest corner of the said East 20 acres of the Northeast 1/4 of the Northeast 1/4; thence South 00001124" West, along the West line of the said East 20 acres, a distance of 1325.55 feet, to a point in the South line of the said Northeast 1/4 of the Northeast 1/4; said point also being the Northwest corner of Sebastian Highlands Unit 9, as recorded in Plat Book 6, Page 36A, Public Records of Indian River County, Florida; thence continue along the boundary of said plat of Sebastian Highlands Unit 9, the following courses and distances: thence continue South 00001124" West, a distance of 130.66 feet to a point in a curve concave to the southwest having a radius of 435.64 feet, the chord of which bears North 85020121" West; thence Westerly along the arc of said curve, a distance of 70.30 feet, through a central angle of 0901414811, departing said platted boundary; thence North 00001124" East, a distance of 54.11 feet; thence South 89°19102" West, a distance of 71.5 feet more or less, to the Easterly waters edge of Schumann Lake; thence Northwesterly, Westerly, Southerly, Southeasterly, Southwesterly, Westerly and Southerly meander the waters edge of Schumann Lake, a distance of 1847 feet, more or less, to the South line of the said Southeast 1/4 of the Northeast 1/4; thence South 89015127" West, along the South line of the said Southeast 1/4 of the Northeast 1/4, a distance of 97.9 feet, more or less, to the Southwest corner of the said Southeast 1/4 of the Northeast 1/4; thence North 000.01125" West, along the West line of the said East 1/2 of the Northeast 1/4, a distance of 2652.47 feet to the aforesaid North line of the Northeast 1/4; thence North 89022136" East along the said North line, a distance of 673.15 feet to the Point of Beginning. PARCEL III: The East 200 feet of Tract "A", SEBASTIAN HIGHLANDS, UNIT 9, according to the plat thereof, recorded in Plat Book 6, Page 36 and 36A, Public Records of Indian River County, Florida. ASSIGNMENT AND ASSUMPTION OF BUSINESS RECORDS, RABLE PERMITS, CUSTOMER DEPOSITS, DEVELOPER AG AND SERVICE CONTRACTS. THIS ASSIGNMENT is made and entered into this L-1 day of December, 1993, by and between GENERAL DEVELOPMENT UTILITIES, INC. a Florida corporation (hereinafter referred to as "Assignor"), and CITY OF SEBASTIAN, FLORIDA (hereinafter referred to as "Assignee"). W I T N E S S E T H WHEREAS, Assignor has on even date herewith conveyed to Assignee that certain real property located in Indian River County, Florida, commonly known as the G.D.U. Sebastian Highlands Water and Sewer System (the "System") as more particularly described in that certain Water and Sewer System Purchase and Sale Agreement dated October 12, 1993, between Assignor, as Seller, and Assignee, as Purchaser (hereinafter referred to as the "Purchase and Sale Agreement"); and WHEREAS, pursuant to the Purchase and Sale Agreement, Assignor agreed to assign to Assignee the following: (i) all current customer records, supplier lists and business records as described in Exhibit "A" attached hereto and by this reference made a part hereof (collectively, the "Business Records"); (i i) all transferable permits and approvals used in the operation of the System, as listed on Exhibit "B" attached hereto and by this reference made a part hereof (the "Permits"); (iii) all customers' water and sewer service security deposits held by the Assignor with respect to the System, as listed on Exhibit "C" attached hereto and by this reference made a part hereof (the "Customer Deposits"); and (iv) those certain developer agreements and service contracts listed on Exhibit "D" attached hereto and by this reference made a part hereof (the "Developer and Service Agreements"). NOW, THEREFORE, in consideration of Ten and No/100 Dollars ($10.00), and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Assignor and Assignee agree as follows: 1. Transfer and Assignment by Assignor. a. Business Records. Assignor hereby sells, assigns, transfers, sets over and delivers to Assignee all of Assignor's right, title and interest in and to the Business Records; provided that Assignor shall retain the right of access to the Business Records. b. Permits. Assignor hereby sells, assigns, transfers, sets over and delivers to Assignee all of Assignor's right, title and interest in and to the Permits, subject to all necessary regulatory approvals and to all conditions, limitations or restrictions contained therein, and the transferability thereof. C. Customer Deposits. Assignor hereby sells, assigns, transfers, sets over and delivers to Assignee all of Assignor's right, title and interest in and to the Customer Deposits, subject to the obligation of the Assignee to continue to provide utility services to those customers for which a deposit is held. d. Developer and Service Agreements. Assignor hereby sells, assigns, transfers, sets over and delivers to Assignee all of Assignor's right, title and interest in and to the Developer and Service Agreements, subject, however, to the terms, covenants and provisions contained therein. 2. Assumption by Assignee. Assignee shall and does hereby assume all of the duties, obligations, liabilities and commitments of Assignor accruing from and after the date hereof with respect to, or arising from the Permits, Customer Deposits and Developer and Service Agreements, and shall faithfully observe and perform all of the terms, covenants and provisions contained in the Permits, and Developer and Service Agreements to be observed and performed on Assignor's part. 3. Indemnification. Assignor agrees to indemnify and hold Assignee harmless from any and all duties, obligations, liabili- ties, and commitments arising under the Permits and/or Developer and Service Agreements or by virtue of this Assignment prior to the date hereof, and Assignee agrees to indemnify and hold Assignor harmless from any and all duties, obligations, liabilities, and commitments arising under the Permits and/or Developer and Service Agreements or by virtue of this Assignment, from and after the date hereof. 4. Interpretation. This Agreement and all representations, warranties, powers, indemnifications and rights herein contained or resulting herefrom are binding upon and shall inure to the benefit of the parties hereto and their respective successors and assigns. 5. Further Assurances. The parties hereto covenant and agree to execute all such further instruments and take all such further action as may be reasonably required by either party to fully effectuate the terms and provisions of this Assignment and the transactions contemplated herein. 6. Captions. The captions of sections in this Assignment are for convenient reference only and are not to be construed in any way as part of this Assignment. 7. Governing Law. This Assignment shall be governed by and construed in accordance with the laws of the State of Florida. IN WITNESS WHEREOF, the parties hereto have executed this Assignment as of the date first written above. Witnesses: Assignor: Print Name •A , Prin Name: 501 G�IdM ek4 Print Name: a yo � .II. 1, 21/WN GENERAL DEVELOPMENT UTILITIES, INC., a Flor. a corporaticr, By: L� 1 Name: C ES E. FANC�, Title: President [CORPORATE SEAL] Assignee: 2 CITY SEBASTIAN, FLORIDA, BY Na 0A, Title: [SEAL] Rruny,�m.D' NA�� OkAA) C,Ty DEC 13 193 1446 GENERAL DEVELOPEMENT UTILITIES P.3i7 EXHIBIT A Business Records - Sebastian i hland ' Utility Business Forms - Provided 10/29/93 i Water and Sewer Drawings (on Site) Organizational Charts With Job Descriptions and Salarie< GDU Standard Specifications - Attached DER Operating Reports (on Site) Provided 10/29/93 Vi. Raw Water Data (on Site) Vll, Lift Station Run Times Jon Site) V111. Engineering Reports (on S/te) IX, Customer Billing Records - Already Provided i X. Consumption and Billing Records 1992 & 1993 - Prov)�ed 10/20/93 X/. 1992 Income and Expense Statements - Provided 1012p/93 X11. Customer Deposits as of Date of Closing X1I1. Footage Reports - Provided DEC 13 '93 1446 GENERAL^DEVELOPEMENT UTILITIES _ EXHIBIT 8 P. 4/7 AoencK Permit/Reaistration No, Issue Date FDEP TP WWOperation Permit # D031-233039 10/14/93 FDEP WTP Construction Permit Acceptance WC31-2026B, WC31-66743 5/16/84 FDER WTP Construction Permit # WC -31-6674.E 4/27/83 FDER WTP Construction Permit # WC31-20268 10/30/81 SJRWMD Consumptive Use Permit # 2-061-0142UA{R 6/9/87 FDEP Storage Tank Registration # 31/8629917 1 6/26/93 FDEP Storage Tank Registration # 31/8629987 6/26/93 FDEP Lead & Copper Sampling Plan PWS ID #311136 5/10/93 FDEP Lead & Copper Sampling Plan Approval 1 6/23/93 DEC 13 193 14;47 GENERA ,",DEVELOPENENT UTILITIES 1.., E_ IS�IT C SEBASTIAN HIGHLANDS CUSTOMER DEPOSITS AND INTEREST ACCEDED REPORT NAME WATER DEPOSITS REPORT SEWER DEPOSITS REPORT REFUND INTEREST REPORT REPORT NUMBER CU604RO2 CU604RO3 N/A 12710-93 12 10-93 12 r10-93 P.5/7 PAGES 25-30 15-17 1-15 DEC 13 '93 14:47 GENERA", DEVELOPENENT UTILITIES EXHIBIT D Developer Agreement P.6/7 PUCLy/Develooer Prop L School District of Indian River County ll. Reflections on the River, Inc. XVI. Sebastian Volunteer Fire Department I/1. Calvary Baptist Church Retail Store IV. Muller Enterprises, Inc. River Run Condos V. Ms, Clare Sommers & Ms. Robert ✓ones Nursery Schogl VL Mrs. Jean M. Burdsall Child Day Care Center Vli. Edward V. Hulse Office Building V! l!. Sebastian Lakes Associates IX. Indian River School Board Pelican Island ElementIlry School X. James M. McLain Office Building Xi. First Baptist Church Mission X11. Sebastian Plumbing XIII. City of Sebastian Balifield XIV. MGB Homes Restaurant XV. GDC n/k/a AGCC Warehouse XVI. Sebastian Volunteer Fire Department Fire Station XVII, Fellsmere Properties, Inc. Retail Store XV/l/.Cumberland Farms, Inc. XIX. Lonnie R. & .Mary R. Powell Beauty Salon DEC 13 '93 1448 GENERAL DEVELUPEMENT UTILITIES /! XX. Drs. Peter & Katherine Gutierrez Dental Facility XXI, Roy Wissel, d/b/a Wisse/ Construction XXII. B. W. Simpkins Trust & F. A. Sheriff Trust Sebastian Plaza XXIII. Donald E. Pinder Gift Shop XXIV. James R. Havens Retail Store XXV. Sebastian General Partnership, B.F. T. XXVI. Andell, Inc. Day Care Center XXVII.Barnett Bank of the Treasure Coast XXVIA Trinity Lutheran Church XX/X. Church of God, Inc. XXX. Scotad, Inc, Office Building XXXI. Arnold Air Conditioning, Inc. XXX//. J & J Baker Enterprises, Inc. (Sludge Hauling) XXXIII.Palm Bay Lawn Service & Landscaping (Ground Maintenance) XXXIV. Master Vendor List and Pricing Agreement with PB & 5 Chemical XXXV. Commercial Agreement Information XXXVI. Customer's Deposit Receipt & Service Agreements & Applications for New Residential Service P. 7? 0 re City of Sebastian 1225 MAIN STREET 13 SEBASTIAN, FLORIDA 32958 TELEPHONE (407) 589-5330 o FAX (407) 589-5570 STATE OF FLORIDA ) COUNTY OF INDIAN RIVER ) CITY OF SEBASTIAN ) I, Kathryn M. O'Halloran, City Clerk of the City of Sebastian, Indian River County, Florida, do hereby certify that the attached are true and correct copies of City of Sebastian Resolution No. R-93-63, City of Sebastian/General Development Utilities, Inc. Water and Wastewater Purchase and Sale Agreement, and Public Briefing Document Chapter 180.301 prepared by Hartman and Associates. IN WITNESS WHEREOF, I hereunto set my hand and affix the Seal of the City of Sebastian, Florida, this 10th day of December, A.D., 1993. Kathr M. O'Halloran, CMC/AAE City Clerk RESOLUTION NO. R-93-63 A RESOLUTION OF THE CITY OF SEBASTIAN, INDIAN RIVER COUNTY, FLORIDA, PROVIDING FOR CERTAIN DETERMINATIONS, FINDINGS, AND STATEMENTS AS REQUIRED IN SECTION 180.301, FLORIDA STATUTES; RATIFYING THE CITY OF SEBASTIAN, FLORIDA/GENERAL DEVELOPMENT UTILITIES, INC. WATER AND SEWER SYSTEM PURCHASE AND SALE AGREEMENT AS SIGNED BY THE MAYOR AND CITY CLERK, A COPY OF WHICH IS ATTACHED TO THIS RESOLUTION AS EXHIBIT "A"; PROVIDING FOR REPEAL OF RESOLUTIONS OR PARTS OF RESOLUTIONS IN CONFLICT HEREWITH; PROVIDING FOR SEVERABILITY; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, Section 2(b), Article VIII, Florida Constitution, and the Municipal Home Rule Powers Act, Chapter 166, Florida Statutes, authorize the City to conduct municipal government, perform municipal functions, render municipal services and exercise any power for municipal purposes, except when expressly prohibited by law; and WHEREAS, pursuant to its governmental powers granted pursuant to Chapters 163, 166 and 180, Florida Statutes, and other applicable laws, the City is authorized to preserve and enhance present advantages, encourage the most appropriate use of land, water and resources, consistent with the public interest, facilities and adequate and efficient provision of water and wastewater facilities, and conserve, develop, utilize, and protect natural resources; and WHEREAS, neither general law nor special act prohibits the City from acquiring or operating water and wastewater utility facilities; and WHEREAS, General Development Utilities, Inc. ("GDU") is the owner of a water and wastewater system know as "Sebastian Highlands Water and Wastewater System" (the "System") located within the boundaries of Indian River County, Florida; and WHEREAS, GDU desires to sell the System to the City and the City desires to purchase the System from GDU; and WHEREAS, the City has examined the assets of the System, has examined the System's existing financial structure, has examined the long-range needs and goals of the City relative to the provision of water and sewer service to the City's present and future citizens, and has determined that the signing of a purchase and sale agreement for the acquisition of the System is in the public interest; and WHEREAS, the City has successfully negotiated a purchase and sale agreement with GDU calling for the purchase and sale of the System to the City; and WHEREAS, in contemplation of the acquisition of the System, the City authorized its engineering consultants, Hartman & Associates, Inc., to prepare a briefing document to comply with Section 180.301, Florida Statutes (the "Briefing Document"); and WHEREAS, the Briefing Document has been submitted to the City Council for review pursuant to Section 180.301, Florida Statutes; and WHEREAS, the City has scheduled, duly noticed and held public hearings pursuant to the requirements of Section 180.301, Florida Statutes. 2 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEBASTIAN, INDIAN RIVER COUNTY, FLORIDA, that: SECTION 1. DETERMINATIONS. The City Council has reviewed and considered the acquisition of the System, as evaluated in the Briefing Document and in other pertinent information submitted to the City, and in doing so has considered the following: (a) GDU's most recent available income and expense statement for the System; (b) GDU's most recent available balance sheet for the System, listing assets and liabilities and clearly showing the amount of contributions -in -aid -of - construction and the accumulated depreciation thereon; (c) A statement of GDU's existing rate base for regulatory purposes as it relates to the System; (d) The physical condition of the System; (e) The reasonableness of the purchase price and terms; (f) The impacts of the purchase on utility customers, both positive and negative; (g) Any required additional investment and the ability and willingness of the City to make that investment; (h) Alternatives to the purchase and the potential impact on utility customers if the purchase is not made; and (i) The ability of the City to provide and maintain high- quality and cost-effective utility service. The City Council's determinations and findings regarding the items listed above are set forth in the Briefing Document, which is hereby adopted and incorporated into this Resolution. This Resolution and the Briefing Document are intended and declared to be the statement required under Section 180.301, Florida Statutes, demonstrating that the purchase of the System is in the public interest. Furthermore, the Briefing Document contains a 3 WHEREAS, General Development Utilities, Inc. ("GDU") is the owner of a water and wastewater system know as "Sebastian Highlands Water and Wastewater System" (the "System") located within the boundaries of Indian River County, Florida; and WHEREAS, GDU desires to sell the System to the City and the City desires to purchase the System from GDU; and WHEREAS, the City has examined the assets of the System, has examined the System's existing financial structure, has examined the long-range needs and goals of the City relative to the provision of water and sewer service to the City's present and future citizens, and has determined that the signing of a purchase and sale agreement for the acquisition of the System is in the public interest; and WHEREAS, the City has successfully negotiated a purchase and sale agreement with GDU calling for the purchase and sale of the System to the City; and WHEREAS, in contemplation of the acquisition of the System, the City authorized its engineering consultants, Hartman & Associates, Inc., to prepare a briefing document to comply with Section 180.301, Florida Statutes (the "Briefing Document"); and WHEREAS, the Briefing Document has been submitted to the City Council for review pursuant to Section 180.301, Florida Statutes; and WHEREAS, the City has scheduled, duly noticed and held public hearings pursuant to the requirements of Section 180.301, Florida Statutes. V, summary of the City's experience in water and wastewater utility operation and demonstrates that the City has the financial ability to provide water and wastewater service. Based upon the Briefing Document and other evidence and testimony submitted and considered at the public hearings on September 15, 1993 and September 22, 1993, the City Council hereby determines and finds that it is in the public interest for the City to purchase the System as contemplated in the Briefing Document. SECTION 2. RATIFICATION OF THE SIGNING OF THE PURCHASE AND SALE AGREEMENT. The City Council has reviewed and considered the acquisition of the System owned by GDU and has also analyzed the City of Sebastian, Florida/General Development Utilities, Inc. Water and Wastewater System Purchase and Sale Agreement (the "Agreement"), a copy of which is attached to and incorporated in this Resolution as Exhibit "A". The City Council hereby ratifies the Agreement, as signed by the Mayor and City Clerk on behalf of the City. The City Council also authorizes its staff and consultants to take all actions necessary to complete the transaction contemplated by the Agreement, and further authorizes the Mayor and City Clerk to sign all necessary documents, before, at and after the closing of the purchase contemplated by the Agreement in order to complete the purchase and sale. SECTION 3. CONFLICT. All resolutions or parts of resolutions in conflict herewith are hereby repealed. SECTION 4. SEVERABILITY. In the event a court of competent jurisdiction shall hold or determine that any part of this Resolution is invalid or unconstitutional, the remainder of the 4 Resolution shall not be affected and it shall be presumed that the City Council of the City of Sebastian did not intend to enact such invalid or unconstitutional provision. It shall further be assumed that the City Council would have enacted the remainder of this Resolution without such invalid and unconstitutional provision, thereby causing said remainder to remain in full force and effect. SECTION 5. EFFECTIVE DATE. This Resolution shall take effect immediately upon its adoption. The foregoing Resolution was moved for adoption by Councilmember C"Izd The motion was seconded by Councilmember and, upon being put into a vote, the vote was as follows: Mayor Lonnie R. Powell Vice -Mayor Frank Oberbeck Councilmember Carolyn Corum Councilmember Norma J. Damp Councilmember Robert Freeland The Mayor thereupon declared this Resolution duly passed and City Clerk (SEAL) Approv-A,'as to orm and Content: Charles(/Ian Nash, City Attorney ", t� The Mayor thereupon declared this Resolution duly passed and City Clerk (SEAL) Approv-A,'as to orm and Content: Charles(/Ian Nash, City Attorney CITY OF SEBASTIAN, FLORIDA/ GENERAL DEVELOPMENT UTILITIES, TNTC. WATER AND SEWER SYSTEM PURCHASE AND SALE AGREEMENT nn�� HII? AGREEMENT is made and entered into this L— day of yc lJ �•� , 1993, by and between the CITY OF SEBASTIAN, FLORIDA ("CITY"), and GENERAL DEVELOPMENT UTILITIES, INC., a corporation authorized to do business in the State of Florida ("UTILITY"). RECITALS 1. UTILITY is the owner of a water production, storage, treatment, transmission, and distribution system, and a wastewater treatment, transmission, collection and effluent disposal system (hereinafter referred to collectively as the "Sebastian Water and Wastewater System" or the "System") known as the Sebastian Highlands Water and Sewer System located primarily within the boun- daries of the CITY OF SEBASTIAN, FLORIDA. 2. Pursuant to the governmental powers provided in Chapters 163, 166, and 180, Florida Statutes, and other applicable laws, CITY is authorized to preserve and enhance present advantages, encourage the most appropriate use of land, water and resources, consistent with public interest, facilitate the adequate and efficient provision of water and sewerage facilities, and conserve, develop, utilize, and protect natural resources within its jurisdiction. 3. UTILITY agrees to sell the System to CITY. 4. CITY has examined UTILITY's Water and Wastewater System Assets, has examined its existing financial structure, has examined the long-range needs and goals of CITY relative to the provision of water and wastewater service to its present and future citizens, and has determined that the execution of a purchase and sale agreement for the acquisition of the Water and Wastewater System Assets is in the public interest. 5. CITY desires to acquire the System upon the terms and conditions hereinafter set forth in this Agreement. ACCORDINGLY, in consideration of the above Recitals and bene- fits to be derived from the mutual observation of the covenants contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by the parties, the parties agree as follows: 1 t SECTION 1. RECITALS. The above Recitals are true and cor- rect, and form a material part of this Agreement. SECTION 2. PURCHASE AND SALE OF WATER AND WASTEWATER SYSTEM. UTILITY agrees to sell and CITY agrees to buy the complete System, consisting of all real, personal and mixed property used or held for use in connection with the System, hereinafter referred to as the "Purchased Assets" or the "Water and Wastewater System Assets" or the "System." The Purchased Assets shall not include any cash derived from monthly rates of UTILITY received by UTILITY, except as set forth in sections 3 and 11 hereof. SECTION 3. PURCHASED ASSETS. On the Closing Date, as defined below, UTILITY shall sell, assign, transfer, convey and deliver to CITY, and CITY shall purchase, accept and pay for all of the right, title and interest, in and to the following property and assets: 3_1. Real Property. All real property (the "Property"), owned by UTILITY in fee simple, as described in Exhibit "3.1" attached hereto and made a part hereof, whereupon all water production, storage, treatment, transmission, and distribution facilities and wastewater treatment plant, wells, pumping stations, effluent disposal areas and all other water and wastewater service facilities are located. 3_2. Plant and Other Facilities. All right, title and interest of UTILITY in and to the following assets owned by UTILITY: all water production, treatment plant, storage, treatment, transmission, distribution, pumping, and other water facilities, including, without limitation, water wells and fire hydrants, and all wastewater treatment plant, wastewater collection, transmission, pumping, and disposal facilities of every kind and description whatsoever including, without limitation, all trade fixtures, leasehold improvements, lift stations, pumps, generators, controls, collection and transmission pipes or facilities, valves, meters, service connections, and all other water and/or wastewater service connections, and all other water and wastewater physical facilities and property installations in use in connection with the operation of the System by UTILITY. 3_3. Machinery and Equipment. All machinery, equipment vehicles, tools (other than non -motorized hand tools), laboratory equipment, office equipment and other personal property (other than inventory as described in Paragraph 3.13), owned by UTILITY located on the Property or utilized by UTILITY exclusively in the operation of the System, including, but not limited to, those items more particularly described in Exhibit 113.3" attached hereto and incorporated into this Agreement. 3_4. Other Rights. All rights, privileges, easements, licenses, prescriptive rights, rights -of -ways, and rights to use public and private roads, highways, streets, and other areas owned by UTILITY for the construction, reconstruction, maintenance and operation of the System of UTILITY and the Purchased Assets 2 .. .WN (collectively referred to as the "Easements"). The Easements are more particularly described in Exhibit "3.4" attached hereto and incorporated in this Agreement. CITY and UTILITY acknowledge and agree that, as additional consideration for UTILITY entering into this Agreement, CITY shall convey to UTILITY within five (5) days following the execution of this Agreement by both parties hereto, those certain Easements set forth and described in Exhibit 113.4" attached hereto and incorporated in this Agreement. Such conveyance shall be a conveyance by the CITY of all of its right, title and interest in those certain Easements, collectively referred to herein as the "CITY Easements". The CITY Easements shall be signed by authorized representatives of CITY and delivered to UTILITY in the form attached to this Agreement as Exhibit 113.4" and UTILITY shall be entitled to immediately record the CITY Easements; at its expense, in the Public Records of Indian River County, upon receipt thereof. Upon closing, UTILITY shall reconvey to CITY the CITY Easements; provided, however, UTILITY shall not be required to reconvey to CITY the CITY Easements if the transaction contemplated in this Agreement fails to close for any reason other than fault on the part of UTILITY. 3_5. Customer Records. UTILITY shall provide CITY with all records associated with its current customers of the System, including customer files containing information such as service applications and correspondence, and all billing information, and all information pertaining to billing of customers, including names, addresses, account numbers and payment history contained in the UTILITY's master files. 3_6. Business Records. All current business records of UTILITY as described in Exhibit 113.6" attached to this Agreement and incorporated by reference herein. UTILITY may make and retain copies of all records delivered to CITY pursuant to this Agreement, at its expense, before transferring the original or (if the original is not available, copies of the records) to CITY. CITY agrees that UTILITY may have reasonable access after closing to all records delivered pursuant - to this Agreement. The provisions of this paragraph shall survive the closing. In addition, UTILITY shall deliver to CITY all as -built surveys, water and sewer design plants, plats, engineering and other drawings, designs, blue- prints, plans and specifications for the System to CITY. 3_7. Permits and Approvals. Subject to all necessary regulatory approvals and to all conditions, limitations or restrictions contained therein, and the transferability thereof, all permits and other governmental authorizations and approvals necessary to operate and maintain the System in accordance with all governmental requirements, as described in Exhibit 113.7" attached hereto and incorporated by reference herein. UTILITY shall, at its expense, be responsible for renewing any operating permits and any ,-• . other permits essential to the operation of the System which may have expired or will expire prior to the transfer of the System to CITY. UTILITY shall also be responsible for correcting any deficiencies, at its expense (provided, however, that in no event shall UTILITY be required to bring suit or expend any sum in excess of $50,000, in the aggregate, to cure such deficiencies), which are specifically documented by any regulatory agency prior to the date on which the System is to be transferred to CITY. CITY agrees to sign all forms required by governmental agencies to transfer the permits and approvals from UTILITY to CITY. 3_8. Choses in Action. All choses in action pertaining to the System or the Purchased Assets, including, but .not limited to, warranty claims, claims for damages, the right to sue for any past infringement, or other cause of action. 3_9. Customer Deposits. Cash to be paid by cashier's check or wire transfer in an amount which represents the customers' water and sewer service security deposits acid accrued interest held by UTILITY. UTILITY shall provide CITY with a detailed written description of each customer deposit and any interest accrued thereon, including the name of the customer, the account number for the customer, the date on which the deposit was received by UTILITY from the customer, the amount of interest accrued on each deposit, the amount of any additional deposits received from the customer and the date such deposit was received. In the event UTILITY provides any inaccurate or erroneous information concerning the customer deposits to CITY, UTILITY shall defend, indemnify and hold CITY harmless from any claims, actions, expenses or damages, including costs and reasonable attorneys' fees at trial and/or appeal, to which CITY may be exposed in the future as a result of UTILITY providing such inaccurate or erroneous information to CITY. In consideration for the transfer by UTILITY of these customers' deposits to CITY, CITY agrees to continue to provide utility services to those customer for which a deposit is held and, to the extent consistent with §768.28, Florida Statutes, to indemnify and hold UTILITY harmless for any claims, actions, expenses or damages, including costs and reasonable attorneys' fees at trial and/or appeal, to which UTILITY may be exposed in the future as a result of the transfer of such customer deposits to CITY. This provision shall survive closing. 3.10. Unbilled Revenue. Unless otherwise agreed by UTILITY and CITY, there shall be no unbilled Revenues paid by CITY because UTILITY shall bill each customer through the Closing Date. 3.11. Contracts and Avreements. UTILITY agrees to assign to CITY, and CITY agrees to assume, all of UTILITY's right, title and interest in and to those certain contracts and agreements listed in Exhibit 113.11" attached to and incorporated in this Agreement. CITY shall not be obligated to assume any contracts and agreements except only those listed in Exhibit 113.11". 4 3.12. Computer Software. Subject to all applicable licensing agreements and to all applicable copyright laws, non- proprietary computer software which is used or was used, in the course of the day to day operations of UTILITY for the System, including, without limitation, billing programs and accounting programs, except any computer software that CITY does not desire to receive or to sub -license. Any license assignment fees payable to the licensor with respect to any computer software that CITY expressly elects to receive assignment for, shall be paid by CITY. 3.13. Inventory. All right, title and interest of UTILITY in and to all inventory specifically described in Exhibit "3.13" attached hereto and made a part of this Agreement. For purposes of this Agreement, the term "inventory" shall include items such as hand tools, parts, chemicals, operating supplies, pipes, nuts, bolts, fittings, screws, meters and meter boxes. Exhibit 113.13" is separated into two parts, Part A and Part B for purposes of Paragraph 11.1(7) of this Agreement. CITY, at its expense, shall conduct a physical inventory of all items of inventory as soon as practical after the signing of this Agreement by the parties hereto. UTILITY shall cooperate and make available to CITY and its representatives all items of inventory in order to facilitate the conducting of the physical inventory by CITY. SECTION 4. ADDITIONAL RESPONSIBILITIES OF UTILITY. UTILITY shall provide CITY with up to eighty (80) person hours of general support services for a period commencing upon the signing of this Agreement by the parties hereto and ending on the date that is sixty (60) days after the Closing Date, on an as -needed basis. If all time is not utilized by CITY within such period, no future obligation with respect thereto shall exist on behalf of UTILITY. In addition, UTILITY agrees to assist CITY in aid of transition following the closing by providing, at the request of CITY, assistance in billing services and transfer of files at no expense to CITY, other than any out-of-pocket costs. CITY shall, in making requests pursuant to this Section 4, avoid any unnecessary disruption of the normal business operations of UTILITY. The provisions of this Section shall survive the closing. SECTION 5. PURCHASE PRICE AND PAYMENT. CITY agrees to pay to UTILITY on the Closing Date, and UTILITY agrees to accept as the complete and full Purchase Price for the System, a total Purchase Price in the amount of THREE MILLION SIX HUNDRED FIFTY THOUSAND AND 00/100 DOLLARS ($3,650,000), subject to any adjustments provided hereinafter. Said Purchase Price shall be paid at Closing in federal or other immediately available funds by wire transfer to a bank and bank account designated by UTILITY. Prior to Closing UTILITY shall deliver wiring instructions to CITY. SECTION 6. STATUS OF TITLE. Within twenty (20) days following the signing of this Agreement by UTILITY and CITY, UTILITY shall deliver to CITY's attorney an updated title commitment (the "Commitment") for an Owner's Title Insurance Policy issued by First American Title Insurance Company in favor of CITY 5 insuring the fee simple title to the Property listed in Exhibit "3.1". UTILITY shall provide CITY with an Owner's Title Insurance Policy which is an Owner's ALTA Form B Marketability Policy in favor of CITY in the amount of THREE MILLION SIX HUNDRED FIFTY THOUSAND AND 00/100 DOLLARS ($3,650,000). UTILITY shall bear the cost of the title insurance policy, including all costs associated with procuring the Commitment. 6_1. Exceptions to Title. The Commitment shall show UTILITY to be vested with fee simple title to the Property shown on Exhibit "3.1" subject to the following (the "Permitted Exceptions"): (1) Ad valorem real estate taxes and assessments for the year 1993 and subsequent years; (2) Restrictions set out in the recorded plats of subdivisions covered by the System; (3) Easements for utilities and drainage set out in such recorded plats of subdivisions; provided, however, that none of the restrictions or easements set out in such recorded plats of subdivisions shall prevent, hinder or restrict the present use of the Property; (4) Restrictions of record (except liens, encum- brances, or mortgages) that do not impair, restrict, or inhibit the present use of or improvement to the property as permitted by applicable zoning and land use regulations presently in effect and that are not coupled with a forfeiture or reversionary provision; (5) All laws, ordinances, and governmental regula- tions, including, but not limited to, all applicable building, zoning, land use and environmental ordinances, regulations, restrictions, prohibitions and other requirements, none of which will prevent or hinder the present use of the Property; and (6) All matters which would be disclosed by an accurate survey of the Property, unless a survey is provided to UTILITY in a form acceptable to the title insurer in accordance with recognized standards for surveys in connection with the issuance of an Owner's Title Insurance Policy. 6_2. Status of Title. If the status of title shown on said Title Insurance Commitment does not reflect the status of title as herein set out, then, in that event, upon written noti- fication thereof to UTILITY which notice shall be given by CITY within twenty (20) days after receipt of said commitment, UTILITY agrees to use all due diligence to perfect title and shall have a period of twenty (20) days from notification of such defects within which to do so. If CITY shall fail to notify UTILITY within the aforesaid twenty (20) days, CITY shall, for the purposes of this Agreement, be deemed to have accepted the status of title as set forth in the Commitment. In the event that defects are specified 2 and UTILITY, after exercising all due diligence, cannot clear same within the time provided in the preceding sentence, then, in that event, CITY shall have the right to purchase the Property in its then existing condition of title, or to rescind and terminate this Agreement without liability by any party to the other(s). Although UTILITY shall use its reasonable efforts to cause any defects to be cured prior to the Closing Date, in no event shall UTILITY be required to bring suit or to expend any sum in excess of $50,000 in the aggregate to cure title defects, exclusive of mortgages against the Property which are in a liquidated amount or which UTILITY has the obligation to discharge on or before the Closing Date under the terms of this Agreement. Notice of such election shall be given by CITY to UTILITY, in writing, by either registered or certified mail, within the time herein prescribed. SECTION 7. SURVEY. CITY shall have the option, at its ex- pense, to prepare and provide a current survey of all the Property set out in Exhibit "3.1" prepared by a Florida licensed surveyor in accordance with applicable law, which survey will be prepared in accordance with, and certified to UTILITY, CITY, UTILITY's and CITY's attorneys and the title insurer in accordance with the minimum detail standards adopted by the Florida Society of Professional Land Surveyors. Any defect reflected on such survey including, but not limited to, encroachments of improvements across a boundary line or onto a utility strip, evidence of overlaps along a property line, violation of restrictions, set back lines, possession inconsistent with the Property boundaries or any other such defect, shall be treated as a title defect under Subsection 6.2. above. CITY shall have twenty (20) days after receipt of said survey to furnish notice to UTILITY of any title defect shown on the survey which does not conform to the status of title described in Section 6 of this Agreement. If CITY shall fail to notify UTILITY within the aforesaid twenty (20) days, CITY shall be deemed to have accepted the status of title shown on the survey. SECTION 8. REPRESENTATIONS AND WARRANTIES OF UTILITY. To induce CITY to enter into this Agreement, UTILITY represents and warrants that, as of the Closing Date: 8_1. Organization, Standing And Power.. UTILITY is a corporation, duly organized, validly existing, and in good standing under the laws of the state of its formation, and is authorized to do business in the State of Florida. UTILITY has all requisite power and authority to own and lease its properties and the Water and Wastewater System Assets, and to conduct its business as it is currently being conducted. 8_2. Authority for Agreement. UTILITY has the power and authority to execute and deliver this Agreement and to carry out its obligations hereunder. This Agreement has been duly authorized by all action required to be taken by UTILITY has been duly executed and delivered by UTILITY and constitutes a valid and legally binding obligation of UTILITY, enforceable in accordance with its terms. •MAk 14M41 8_3. Good and Marketable Title. Subject to the Per- mitted Exceptions, UTILITY has good and marketable title to the Purchased Assets. Notwithstanding anything contained herein to the contrary, the Property shown on Exhibit "3.4" as easement parcels are not subject to the fee simple ownership requirements as set forth in Subsection 6 hereof. UTILITY shall transfer, convey and assign to CITY at Closing an enforceable easement interest for each of the easement parcels shown on Exhibit 113.4" so that the present use of the easement parcels may be continued by CITY for the operation of the System. The easement interests shown on Exhibits "3.4" conveyed to CITY shall not be subordinate to any superior interests which could result in CITY losing the right to use the easement parcel for utility purposes. Any such superior interests shall be -deemed a title defect under Subsection 6.2 hereof and shall be cured by UTILITY as set forth in that Subsection. At Closing, UTILITY shall assign to CITY all of its easement interests in the Property regardless of whether such easement is listed on Exhibit "3.49. z 8_4. No Liens or Encumbrances. Except as otherwise specifically set forth herein or as may be released prior to the Closing Date, there are no liens, claims or encumbrances of any type or nature upon or against the Purchased Assets including, but not limited to, financing statements or security instruments filed under the Uniform Commercial Code either in the County where the land is located or with the Florida Secretary of State. 8_5. Litigation. There are no actions, suits, or proceedings at law or in equity, pending against UTILITY before any federal, state, municipal or other court, administrative or governmental agency or instrumentality, domestic or foreign, which affect the System or any of the Purchased Assets or UTILITY's right and ability to make and perform this Agreement; nor is UTILITY aware of any facts which to its knowledge are likely to result in any such action, suit or proceeding. The UTILITY is not in default with respect to any order or decree of any court or of any administrative or governmental agency or instrumentality affecting the System or any of the Purchased Assets. UTILITY agrees and warrants that it shall have a continuing duty to disclose up to and including the Closing Date the existence and nature of all pending judicial or administrative suits, actions, proceedings, and orders which in any way relate to the operation of the System. Any such matters now known to UTILITY shall be initially disclosed within ten (10) days following execution of this Agreement, and UTILITY agrees to notify CITY of any new actions, suits or proceedings within ten (10) days after UTILITY receives notice thereof. 8_6. New Agreements. UTILITY shall not enter into any extension, developers' agreement, agreement concerning the opera- tion of the Water and Wastewater System, agreement concerning water and/or wastewater service capacity, or cause any agreement to be modified after the date of execution of this Agreement without the prior written approval of CITY, which approval shall not be 8 OMWA i-, unreasonably withheld. Notwithstanding anything to the contrary set forth in this paragraph 8.6, UTILITY need not obtain CITY's approval to enter into service agreements with individuals that do not commit in excess of five (5) equivalent residential connections of water or wastewater service capacity. 8_7. Agreements for Construction. With respect to any outstanding agreements for construction under which UTILITY has previously received cash deposits or cash contributions in exchange for UTILITY's willingness to authorize the planning, permitting, construction, installation or extension of the water and/or wastewater system located in Sebastian, UTILITY has fully discharged all obligations on its part for such planning, permitting, construction, installation or extension, and UTILITY has no further obligations, liabilities or expenses for the future planning, permitting, construction, installation or extension of said system under said agreements. 8_8. Leases. Except as may be 'listed in Exhibit 113.11" hereof, none of the Purchased Assets are subject to any interest of any lessor or lessee and will not be so subject as of the Closing Date. 8_9. No Contracts in Default. UTILITY is not aware of any defaults of any parties to any agreements set forth or listed in any of the Exhibits annexed to this Agreement. 8.10. No Governmental Violations. UTILITY is not aware and has not been notified of the existence of any violations of any governmental rules, regulations, permitting conditions or other governmental requirements applicable to the ownership, maintenance or operation of the System. 8.11. No Record Violations. The use of the System on the property set out in Exhibits 113.1" and 113.4" is consistent with and does not violate any restrictions or conditions of record. 8.12. Absence of Changes. After the date of execution of this Agreement, UTILITY shall not: (1) undergo any change in its condition of properties, assets, liabilities, business or operations other than changes in the ordinary course of business which have not been, either in any case or in the aggregate, materially adverse to the operation of the System; (2) acquire or dispose of any of the System's assets or properties of material value (having a value in excess of $2,000), except in the ordinary course of business or with the consent of CITY, which shall not be unreasonably withheld; (3) subject to available administrative remedies pursuant to Chapter 120, Florida Statutes, or any administrative or judicial procedures or proceedings applicable to particular 9 permits, or intentionally fail to comply with all of the System permit requirements; (4) fail to seek or obtain any permit extensions or renewals reasonably necessary to insure that all permits related to the System are valid, extended, or in the process of being extended, as of the Closing Date. 8.13. Disclosure. No representation or warranty made by UTILITY, to the best of UTILITY's knowledge, in this Agreement contains or will contain any untrue statement of material facts or omits or will omit to state any material fact required to make the statements herein contained not misleading. •8.14. Survival of Covenants. UTILITY agrees that its representations and warranties set forth herein are true and correct as of the date of the execution hereof, shall be true 'and correct at the time of Closing, and shall survive the Closing for a period of two (2) years. 8.15. FIRPTA. UTILITY is not a "foreign person" within the meaning of the United States tax laws and to which reference is made in Section 1445(b)(2) of the Internal Revenue Code of 1986, as amended. On the Closing Date, UTILITY shall deliver to CITY a certificate to such effect. SECTION 9. CONDUCT PENDING CLOSING. UTILITY covenants that pending the closing: 9_1. Business Conduct. Except as otherwise consented to in writing by CITY, which shall not be unreasonably withheld, for the period beginning on the date of execution of this Agreement and ending on the Closing Date, UTILITY shall: (1) operate the System in, and only in, the usual, regular and ordinary course and nevertheless comply with and uphold all applicable governmental requirements and laws; (2) maintain all of the System's- material structures, equipment. and other tangible personal property in good repair, order and condition, except for depletion, depreciation, ordinary wear and tear and damage by unavoidable casualty; (3) keep in full force and effect insurance com- parable in amount and scope of coverage to insurance now carried by it for the System; (4) perform in all material respects all of its obligations under agreements, contracts and instruments relating to or affecting the System's properties, assets and operation; (5) maintain its books of account and records as to the System in the usual, regular and ordinary manner; im (6) subject to available administrative remedies pursuant to Chapter 120, Florida Statutes, or any administrative or judicial proceeding or proceeding applicable to particular permits, comply in all material respects with all statutes, laws, ordinances, rules and regulations applicable to it and to the operation of the System; (7) promptly advise CITY, in writing, of any material adverse change in the operation of System; and (8) not enter into any transaction, including, without limitation, the purchase, sale or exchange of property, the value of which exceeds $2,000, which relates to the System except in furtherance of this Agreement with the UTILITY, or the rendering of any service to UTILITY, except in the ordinary course of and pursuant to the reasonable requirements of the business of UTILITY. 9_2. Risk of Loss. UTILITY shall bear the risk of loss, damage or destruction of the Purchased Assets by fire or other casualty prior to Closing Date. If any material portion of the Purchased Assets is damaged by fire, "Act of God" or other casualty prior to the Closing Date, CITY shall have the option of (1) closing and accepting the Purchased Assets "as is", without reduction of the Purchase Price, together with UTILITY's assignment to CITY of all rights under UTILITY's insurance policies and all of the insurance proceeds, if any, relating thereto, but without any further claim by CITY against UTILITY; or (2) cancelling this Agreement in which event the parties shall be released from all further obligations to each other. If any immaterial portion of the Purchased Assets is so damaged, UTILITY shall either (1) repair or replace same, or (2) assign UTILITY's insurance proceeds covering same to CITY at closing (or if there are no adequate proceeds available, UTILITY shall credit CITY at closing for the reasonable uninsured value of the damaged property). 9_3. No Encumbrances. Except as otherwise permitted in this Agreement, from and after the date of the execution of this Agreement, UTILITY shall not, without the prior written consent of CITY, which shall not be unreasonably withheld, dispose of or encumber any of the Purchased Assets. 9_4 Access to Records. At all times, UTILITY will coop- erate by opening records and by providing access; upon prior notice, to records and facilities to CITY and CITY's representatives to assist in acquainting CITY'S operating and administrative personnel in the operation of the System; provided that no such inspection shall materially interfere with the operation of the System. 9_5. Performance of Closing Conditions. UTILITY shall perform all of the conditions to closing which should be performed by UTILITY prior to closing as provided herein. 11 100�*, 9_6. Insurance. Prior to closing, UTILITY shall maintain existing fire and extended coverage insurance to cover the cost of any repairs to the Purchased Assets that may be necessitated by casualty damage. CITY shall not be obligated to assume or continue to maintain any policy of insurance that was originally obtained by UTILITY after the Closing Date. 9_7. Examination and Inspection. UTILITY will permit examination by CITY'S authorized representatives of all existing contractual obligations, physical systems, assets, real estate, rights-of-way, easements and inventories utilized by UTILITY in connection with the System. Such facilities will be properly maintained by UTILITY within the custom and usage of the industry up until the Closing Date and shall not otherwise utilize any items of inventory other than for the operation of the System for the period ending on the Closing Date. SECTION 10. REPRESENTATIONS AND WARRANTIES OF CITY. To induce UTILITY to enter into this Agreement, CITY represents and warrants as follows: 10.1. Organization. Standing and Power of CITY. CITY is a municipal corporation duly organized and validly existing under the laws of the State of Florida and has all requisite municipal power and authority to enter into this Agreement, and to carry out and perform the terms and provisions of this Agreement. 10.2. Authority for Agreement. CITY has the authority and power to execute and deliver this Agreement and to carry out its obligations hereunder. This Agreement has been duly authorized by all municipal action required to be taken by CITY, including holding all required public hearings, has been duly executed and delivered by CITY, and constitutes a valid and legally binding obligation of CITY, enforceable in accordance with its terms. 10.3. Disclosure. No representation or warranty made by CITY, to the best of CITY's knowledge, in this Agreement contains or will contain any untrue statement of material facts or omits or will omit to state any material fact required to make the statements herein contained not misleading. 10.4. Service. Upon closing the transaction contemplated in this Agreement, CITY shall, to the extent allowable by law, continue to provide existing: (i) water and sewer service to the UTILITY's customers consistent with or superior to the services currently being provided by UTILITY to its customers; and (ii) water and wastewater service to Atlantic Gulf Communities Corporation, its successors and/or assigns ("Atlantic Gulf"), and properties owned by Atlantic Gulf, in a uniform and non- discriminatory manner with other property and property owners served by CITY. 12 10.5. Performance of Closing conditions. CITY shall perform all of the conditions to closing which should be performed by CITY prior to the Closing Date as provided herein. 10.6. Survival of Covenants. CITY agrees that its representation and warranties set forth herein are true and correct as of the date of the execution hereof, shall be true and correct at the time of the Closing Date, but shall only survive for two (2) years following the Closing Date. SECTION 11. ADJUSTMENTS AND PRORATIONS. 11.1. Adjustments. At the time of closing, the parties covenant and agree that the following adjustments to the Purchase Price shall be made: (1) Real and personal property taxes on all real and personal property which is being conveyed by UTILITY to CITY, shall be prorated as of the Closing Date based on the most current tax bills available, with the understanding that if tax bills for the current year are not available, CITY will assume responsibility for all taxes for the current year but will be entitled to a reproration when available. (2) All rates, fees and charges for water and sewer service shall be prorated and adjusted between the parties as of 11:59 p.m. of the Closing Date. No later than twenty (20) days after the closing, CITY shall reimburse and credit UTILITY for ninety-five percent (95%) of all accounts receivable zero (0) to sixty (60) days old as of the Closing Date. UTILITY shall retain all accounts receivable which are delinquent for more than sixty (60) days (entitling UTILITY to the proceeds thereof if and when paid). CITY shall promptly turn over to UTILITY any such delinquent receivables that may be subsequently paid to CITY and shall use reasonable efforts to assist UTILITY in the collection of same, including, without limitation, discontinuing service to nonpaying customers. CITY agrees to pay UTILITY for ninety-five percent (95%) of all unbilled revenue, which shall be prorated as of the Closing Date and paid by CITY to UTILITY within thirty (30) days of billing. All, rates, fees, and charges for water and sewer service after the Closing Date shall be the property of CITY. (3) CITY shall reimburse and credit UTILITY for the cost of all additional capital improvements made to the System by or on behalf of UTILITY prior to the Closing Date provided CITY has consented to said improvements. (4) UTILITY shall request all of its suppliers and vendors to submit final invoices for services, materials, and supplies, including electricity for the period up to and including the Closing Date. UTILITY shall be responsible for, and shall provide to CITY, upon request, evidence of the payment of all such invoices. 13 (5) For all those customers who are connected to and receiving service (water, wastewater, or water and wastewater) from UTILITY on the Closing Date and have paid connection, plant capacity, main extension, and/or capital charges ("Connection Charges") to UTILITY, the Connection Charges previously paid that specifically apply to the service being received (water, wastewater, or water and wastewater) shall be retained by UTILITY. For all those customers who, on the Closing Date, are not connected to and receiving service from UTILITY and have paid Connection Charges to UTILITY, and to whom UTILITY has extended completely all pipelines necessary to provide service, UTILITY may retain main extension charges previously paid that specifically apply to the pipelines extended (water main extension charges for water pipelines, wastewater main extension charges for wastewater pipelines), and UTILITY shall pay to CITY and CITY shall receive from UTILITY all other Connection Charges (including impact.fees) paid by such customers. All other Connection Charges received prior to the Closing Date by UTILITY from customers of the System who have not connected to the System, shall be deemed the property of CITY, and shall be paid to CITY. Except as otherwise provided in this Agreement, CITY will not accept or recognize any obligations regarding prepaid or discounted unconnected customers. Nothing contained in this Agreement shall be construed to require CITY to exercise the police power in the allocation of water and/or wastewater service capacity (hereby deemed to be a governmental function) other than in accordance with CITY's current or future service allocation or extension rules. CITY agrees, to the extent consistent with §768.28, Florida Statutes, to indemnify and hold UTILITY harmless for any claims, actions, expenses or damages, including costs and reasonable attorneys' fees at trial and/or appeal to which UTILITY may be exposed in the future as a result of any transfer of the Connection Charges by UTILITY to CITY. (6) The date of closing shall, for purposes of adjustments and prorations, be deemed to be a seller ownership day. (7) At closing, UTILITY shall receive a credit in an amount equal to UTILITY's actual cost of certain inventory listed in Exhibit 3.13, Part B, to this Agreement.. A final inventory of the foregoing shall be taken not earlier than five (5) days or later than -the day prior to Closing by representatives of the parties to prepare the final list of such inventory. 11.2. Payment of Fees and Taxes. UTILITY shall pay. CITY all franchise fees and utility taxes due through the Closing Date. SECTION 12. CLOSING EXPENSES. The cost of recording any releases, satisfactions, or corrective instruments, along with the documentary stamps and surtax, if any, on the Deed shall be paid by UTILITY. The cost of recording the Deed shall be paid by CITY. Certified, confirmed and ratified special assessments or municipal liens as of the Closing Date shall be paid by UTILITY. Notwithstanding the foregoing, to the extent any of the foregoing certified, confirmed or ratified liens are payable in installments, 14 .Mk A. CITY shall take title subject to such liens and assume the balance of such installment payments, subject to appropriate prorations. SECTION 13. ENVIRONMENTAL MATTERS. 13.1. UTILITY warrants that the Property described in Exhibit 113.1" and the Purchased Assets are in a clean and healthful condition, free of environmental contamination or potentially harmful physical conditions, other than such contaminants or harmful conditions permitted by law. No hazardous substance has been improperly stored upon, disposed of, spilled or otherwise released to the environment on or in the Property or Easements by UTILITY or, to the best of the knowledge of UTILITY after due inquiry, by any. other party. For purposes of this Agreement .the definition of the term -"hazardous substance" shall be that set out in Section 101(4) of the Federal Comprehensive Environmental Response, Compensation and Liability Act, except that for purposes of this Agreement, the term shall also include (1) petroleum (crude oil) and natural gas (whether existing as 'a gas or a liquid); and (2) any substance defined as hazardous or toxic by any state or local regulatory agency having jurisdiction over the operations of UTILITY. 13.2. The operation by UTILITY of its utility business complies in all material respects with all applicable federal, state and local environmental and occupational health and safety statutes and regulations. 13.3. UTILITY warrants that any tanks (whether above or below) on or at the Property or Easements installed or used by UTILITY are in sound conditions, free of corrosion or leaks which could permit any release of stored material. 13.4. None of the Property has been used by UTILITY or by any other party for the processing, storing, or otherwise utilizing asbestos, polychlorinated byphenyls ("PCB's"), or radioactive substances. UTILITY has received no notice that any of the foregoing materials are present on or at any Property or Easements. 13.5. All hazardous waste resulting from the operations of UTILITY on or at the Property or Easements have been disposed of in an environmentally sound manner. None of those wastes have been disposed of in any site where there has been, is, or, due to the manner of disposition by UTILITY, will be released into the environment requiring corrective action, nor has UTILITY received notice from any state or federal environmental agency of its possible involvement with any disposal site under investigation by such agency. SECTION 14. INDEMNITY. 14.1. UTILITY shall, and hereby agrees to defend, indemnify and hold harmless, CITY at all times from and after the 15 Closing Date against and in respect to any damages, as hereinafter defined, from claims of any person or entity not a party to this Agreement which arise out of facts or circumstances occurring on or prior to the time of the Closing. CITY shall notify UTILITY of any such claims within thirty (30) days of its receipt of notice thereof. Damages, as used herein, shall include any obligations, losses, costs, expenses, injunctions, suits, fines, liabilities, penalties, and damages, including reasonable attorneys' fees at trial and all appellate levels, whatsoever that CITY incurs as a result of judgment or order rendered by a Court or agency of competent jurisdiction, that arise from, (1) any materially inac- curate representation made by UTILITY in or under this Agreement; (2) breach of any of the warranties made by UTILITY in or under this Agreement; -(3.) breach or default in the performance by UTILITY of any of the covenants, conditions, commitments, agreements, duties or obligations to be performed by it hereunder; (4) any debts, liabilities or obligations of UTILITY, whether accrued, absolute, contingent or otherwise, due or to become due, except those obligations specifically assumed by CITY pursuant to this Agreement; (5) the breach by UTILITY or the failure of any act or action to occur that is the subject of any duty, obligation, covenant, condition, commitment, agreement, representation or warranty undertaken or made by or on behalf of UTILITY pursuant to this Agreement; and (6) the ownership and operation of the Water and Wastewater Utility System or the Water and Wastewater System Assets by UTILITY prior to the Closing Date. UTILITY agrees to defend, indemnify and hold CITY harmless from and pay any costs, fees, penalties, or fines that are imposed by a court or agency of competent jurisdiction, upon CITY or UTILITY, by reason of UTILITY's failure to fully comply with any EPA, FDEP, or Water Management District order, rule, or statute, which may arise before, during, or after the Closing out of facts or circumstances occurring on or prior to the Closing Date. 14.2. CITY shall, and hereby agrees to defend, indemnify and hold harmless, UTILITY at all times from and after the Closing Date against and in respect to any damages, as hereinafter defined, from claims of any person or entity not a party to this Agreement which arise out of facts or circumstances occurring on or after the time of the Closing. UTILITY shall notify CITY of any such claims within thirty (30) days of its receipt of notice thereof. 'Damages, as used herein, shall include any obligations, losses, costs, expenses, injunctions, suits, fines, liabilities, penalties, and damages, including reasonable attorneys' fees' at trial and all appellate levels, whatsoever that UTILITY incurs as a result of judgment or order rendered by a Court or agency of competent jurisdiction, that arise from, (1) any. materially inaccurate representation made by CITY in or under this Agreement; (2) breach of any of the warranties made by CITY in or under this Agreement; (3) breach or default in the performance by CITY of any of the covenants, conditions, commitments, agreements, duties or obligations to be performed by it hereunder; (4) any debts, liabilities or obligations of CITY, whether accrued, absolute, contingent or otherwise, due or to become due, except those 16 obligations which were not assumed by CITY pursuant to this Agreement; (5) the breach by CITY or the failure of any act or action to occur that is the subject of any duty, obligation, covenant, condition, commitment, agreement, representation or warranty undertaken or made by or on behalf of CITY pursuant to this Agreement; and (6) the ownership and operation of the Water and Wastewater Utility System or the Water and Wastewater System Assets by CITY after the Closing Date. CITY agrees to defend, indemnify and hold UTILITY harmless from and pay any costs, fees, penalties, or fines that are imposed by a court or agency of competent jurisdiction, upon UTILITY or CITY by reason of CITY's failure to fully comply with any EPA, FDEP, or Water Management District order, rule, or statute, which may arise after the Closing out of facts or.circumstances occurring after the Closing Date. SECTION 15. COVENANT NOT TO ENGAGE COMPETING IN UTILITY BUSINESS. UTILITY agrees that it shall not engage (the words "shall not" being used in a mandatory definition) in the business of providing water or wastewater service t& any land located within CITY including any land annexed into CITY, for the next ten years. This provision will only become effective upon Closing. SECTION 16. CITY'S INVESTIGATION. CITY has previously reviewed and considered the nature of this transaction and has, or will have, on or before the Closing Date, acted in due diligence to investigate the System and all aspects of this transaction. Except only as to those matters which UTILITY has provided for the representations or warranties in this Agreement, in electing to proceed with this transaction, CITY shall have determined as of the Closing Date that the System is satisfactory to CITY in all respects and is purchasing the System in "as is" condition. CITY has and will rely solely on CITY's own independent investigations and inspections, except to the extent of any representations or warranties made by UTILITY in this Agreement. CITY further acknowledges and agrees that, except for the specific representations made by UTILITY in this Agreement, UTILITY has made no other representations, is not willing to make any representations and has not held out any inducements to CITY other than those specifically set forth in this Agreement. SECTION 17. CLOSING. Provided that all conditions precedent to closing have, in fact, been so performed, the place of closing shall be at the City Hall of the City of Sebastian, Florida, or at such other location selected by CITY in order to accommodate the closing of any municipal bonds being issued to finance this transaction pursuant to this Agreement and such closing shall occur on November 29, 1993 (the "Closing Date") ,or such earlier date as the parties mutually agree in writing. Any party shall have the right to extend the Closing Date thirty (30) days beyond November 29, 1993, by sending written notice to the other parties at least fifteen (15) days prior to November 29, 1993. Immediately following the Closing Date, CITY shall have full right to the possession of all of the Water and Wastewater System, all of which shall be located in Sebastian, Florida. 17 SECTION 18. CLOSING DOCUMENTS AND PROCEDURES. 18.1. Deliveries from UTILITY. At least twenty (20) days prior to the Closing Date, UTILITY shall deliver to CITY: (1) True, correct and complete copies of the Articles of Incorporation and Bylaws of General Development Utilities, Inc., all as amended and in effect on the Closing Date; (2) Warranty deeds to all of the Property owned by UTILITY as described in Exhibit 113.1" conveying to CITY all of UTILITY's right, title and interest in all such property and warranting that such property is free and clear of all liens, claims and encumbrances other than the Permitted Exceptions, as that term is defined herein. (3) Instruments of conveyance, in appropriate recordable form, of all the Easements as described in Exhibit 113.4" hereof, conveying to CITY all of its right, title and interest in all such property, together with all utility improvements thereto, and warranting that such easement rights and rights to use dedicated rights-of-way are free and clear of all superior interests which could result in CITY losing the right to use the easement parcel for utility purposes. (4) Bills of sale or other documents of assignment and transfer, with full warranties of title, to all Water and Wastewater System Assets, other than those assets covered by Paragraphs 18.1(2) and 18.1(3) hereof; (5) All business records sold to CITY hereby; (6) Title insurance policies in the form called for in Section 6 0£ this Agreement; (7) All permits, governmental authorizations and approvals as described in Exhibit 113.7"; (8) Standard mechanics lien affidavit in a form required by the title, company as to realty and personalty insuring against any liens, claims or encumbrances upon the Purchased Assets; and (9) All existing customer deposits for service to CITY as required hereunder. 18.2. CITY Deliverables. On the Closing Date, CITY shall send a wire transfer of federal funds to the account identified by UTILITY or shall deliver a cashier's check in the amount due to UTILITY as provided in Section 5 of this Agreement. In addition, CITY shall sign and provide to UTILITY at closing all assumption agreements provided to CITY by UTILITY prior to closing in a form acceptable to CITY's attorney with respect to all contracts being assumed by CITY to which UTILITY was a party prior M to closing and, thereby, being assigned by UTILITY to CITY pursuant to this Agreement. Furthermore, CITY shall deliver to UTILITY a certified copy of the Resolution of the CITY Council which approved the transaction pursuant to this Agreement. 18.3 Conditions Precedent to Closing. The obligations of CITY pursuant to this Agreement are contingent upon satisfaction and UTILITY's performance of the following conditions set forth in Paragraphs 18.3(a) through 18.3(d) prior to closing (or as otherwise provided below). If any of the contingencies specified below are not satisfied prior to closing, CITY shall have the right, at its option, but not the obligation, to declare this Agreement null and void by written notice to UTILITY and all parties shall -be released of any further obligations and responsibilities pursuant to this Agreement. (a) CITY obtaining, at CITY's expense, a level one environmental audit indicating that the Property and the Purchased Assets are in a clean and healthful condition, free of environmental contamination or potentially harmful physical conditions, other than such contaminants or harmful conditions permitted by law. CITY and its agents, contractors or employees shall have the right to enter upon the Property for the purpose of performing such audit, providing said activities shall not any way damage the Property or any part thereof or disrupt the normal business operations of the Property. Such audit shall be performed not less than thirty (30) days prior to closing. CITY's failure to obtain such audit or, in the event CITY shall close this transaction after having obtained such an audit, shall in no way relieve UTILITY of any liability with respect to the breach of any warranty or representation contained in Section 13 of this Agreement. (b) CITY determining, in its sole and absolute discretion, that all contracts or agreements, including, but not limited to, all leases, service agreements and developers' agreements, which CITY is to assume pursuant to this Agreement or which shall affect or obligate CITY at any time after the Closing Date, shall be suitable to CITY. For a period of thirty (30) days commencing upon delivery of all applicable contracts and agreements to CITY, CITY shall be entitled to inspect said contracts and agreements and UTILITY shall give to CITY and its agents, contractors or employees full access to all such contracts and commitments and shall furnish to CITY all information concerning such contracts and commitments as CITY may reasonably request. In the event CITY fails to notify UTILITY, in writing, of CITY's election to terminate this Agreement due to the unsuitability of any contract or agreement within the foregoing thirty (30) day period, this condition shall be deemed waived. (c) All UTILITY's representations and warranties contained in this Agreement shall be true as of the Closing Date as if such representation and warranties were made at 19 such time, and all such representations of warranties shall survive the Closing for a period of two (2) years. (d) All corporate, governmental and other proceedings to be taken by UTILITY and CITY in connection with the transactions contemplated hereby and all documents incident thereto shall be reasonably satisfactory in form and substance to CITY, and to UTILITY, and to their respective attorneys, and CITY and UTILITY shall have received from each other all such counterpart originals or certified or other copies of such documents as CITY or UTILITY may reasonably request. SECTION 19. RESPONSIBILITY FOR PROFESSIONAL FEES AND COSTS. Each party hereto shall be responsible for its own reasonable attorneys" fees, engineering fees, accounting fees and other costs in connection with the preparation and execution of this Agreement. SECTION 20. INTENTIONALLY BLANK SECTION 21. COMMISSIONS. UTILITY and CITY warrant to the other that the transaction contemplated by this Agreement is a direct, private transaction between UTILITY and CITY without the use of a broker or commissioned agent. SECTION 22. FURTHER ASSURANCES. Each of the parties hereto agrees that, from time to time, upon the reasonable request of the other party and at the expense of the requesting party, without further consideration, it shall execute and deliver to the requesting party any and all further instruments, affidavits, conveyances and transfers as may be reasonably required to carry out the provisions of this Agreement. SECTION 23. NOTICES: PROPER FORM. Any notices required or allowed to be delivered hereunder shall be in writing and be deemed to be delivered when (1) hand delivered to the person hereinafter designated, (2) upon receipt of such notice when deposited in the United States mail, postage prepaid, certified mail, return receipt requested, addressed to a party at the address set forth opposite the party's name below, or at such other address as the party shall have specified by written notice to the other party delivered in accordance herewith, or (3) sent by a recognized overnight courier, such as Federal Express, addressed to a party at the address set forth opposite the party's name below, or at such other address as the party shall have specified by written notice to the other party delivered in accordance herewith: 20 CITY: City Manager City of Sebastian, Florida City Hall 1225 Main Street Sebastian, Florida 32958 (407) 589-5330 Fax (407) 589-5570 with a copy to: Charles Ian Nash, Esquire City Attorney Frese, Nash & Torpy, P.A. 930 S. Harbor City Blvd. Suite 505 Melbourne, Florida 32901 (407) 984-3300 Fax (407) 951-3741 UTILITY: Charles' E. Fancher, Jr., President General Development Utilities, Inc. 2601 South Bayshore Drive Miami, Florida 33131 (305) 859-4331 Fax (305) 859-4657 with a copy to: Marcia H. Langley, Esq. Atlantic Gulf Communities Corp. 2601 South Bayshore Drive Miami, Florida 33133-3461 (305) 859-4231 Fax (305) 859-4524 SECTION 24. NO INTERFERENCE WITH EMPLOYMENT. UTILITY will not interfere with CITY hiring any of the present operational staff of the Water and Wastewater System. CITY shall notify UTILITY thirty (30) days prior to the Closing Date as to which existing employees of UTILITY to whom CITY will be extending offers of employment. SECTION 25. ENTIRE AGREEMENT. This instrument and the Exhibits annexed hereto constitute the entire Agreement between the parties and supersedes all previous discussions, understandings, and agreements between the parties relating to the subject matter of this Agreement. SECTION 26. AMENDMENT. Amendments to and waivers to the provisions herein shall be made by the parties only in writing by formal amendment. 21 SECTION 27. DISCLAIMER OF THIRD PARTY BENEFICIARIES. This Agreement is solely for the benefit of the formal parties herein, and no right or cause of action shall accrue upon or by reason hereof, to or for the benefit of any third party not a formal party hereto. SECTION 28. BINDING EFFECT. All of the provisions of this Agreement shall be binding upon and inure to the benefit of and be enforceable by legal representatives, successors and nominees of CITY and UTILITY. SECTION 29. TIME OF THE ESSENCE. Time is hereby declared of the essence to the performance of this Agreement. SECTION 30. APPLICABLE LAW. This -Agreement shall be con- strued, controlled, and interpreted according to the laws of the State of Florida, and the venue for any action or suit brought to interpret or enforce any of the provisions of this Agreement shall be filed and maintained in Indian River County, Florida. SECTION 31. CORROBORATION OF PAYMENT AFTER CLOSING. In each instance in which any party to this Agreement is to receive money from another party to this Agreement after the Closing Date, the party who is entitled to receive the money under the terms of this Agreement shall have the right to inspect, at its own expense, those books and records of the other party as may be necessary to corroborate the accuracy of the amount of money received from the party, within thirty (30) days of receipt of the payment. The provisions of this Section shall survive the closing. SECTION 32. CONSTRUCTION. All of the parties to this Agreement have participated fully in the negotiation and preparation hereof, and accordingly, this Agreement shall not be more strictly construed against any of the parties hereto. In construing this Agreement, the singular shall be held to include the plural, the plural.shall be held to include the singular, the use of any gender shall be held to include any other and all genders, and the captions and paragraph headings shall be disregarded. SECTION 33. SEVERABILITY. In the event any term or provision of this Agreement is determined by the appropriate judicial authority to be illegal or otherwise invalid, such provision shall be given its nearest legal meaning or be construed as deleted as such authority determines, and the remainder of this Agreement shall be construed to be in full force and effect. SECTION 34. COUNTERPARTS. This Agreement may be executed in several counterparts, and each such counterpart shall be deemed an original, but all such counterparts will constitute one agreement. SECTION 35. SPECIFIC PERFORMANCE. In the event any party to this Agreement fails to close on the Closing Date (without any default by another party), time being of the essence, or in the 22 event of any other default by any party of its obligations hereunder which continues for a period of fifteen (15) days following written notice thereof from another party, the non - defaulting shall be entitled to seek all rights and remedies available at law or equity, including specific performance. SECTION 36. SURVIVAL OF INDEMNIFICATIONS. All agreements of indemnity made by any party to this Agreement shall survive the closing for a period of two (2) years. SECTION 37. RADON GAS. RADON IS A NATURALLY OCCURRING RADIOACTIVE GAS THAT, WHEN IT HAS ACCUMULATED IN A BUILDING IN SUFFICIENT QUANTITIES, MAY PRESENT HEALTH RISKS TO PERSONS WHO ARE EXPOSED TO IT OVER TIME. LEVELS OF RADON THAT EXCEED FEDERAL AND STATE GUIDELINES HAVE BEEN FOUND IN BUILDINGS IN FLORIDA. ADDITIONAL INFORMATION REGARDING RADON AND RADON TESTING MAY BE OBTAINED FROM YOUR COUNTY PUBLIC HEALTH UNIT. IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date and year first above written. Signed, sealed and delivered in the presence of: (x)19 Name: Wendy B. Widmann - // (x) /J� Name: Richard B. Votapka Approved as to Form and Legal SZ Z eZY� Richard E. Torp_ Assistant City Attorney 23 CITY: THE CIT By: Ix 0£ EBASTIAN, FLORIDA ✓11I` Lonnie R. Powell, M or Attest. Kathr M. O'Halloran, CMC/AAE, City Clerk (SEAL) Signed, sealed and delivered in the presence of: (X)/l�Div.-�4 Name: J/Qe7.,? L. W'4-w,� Name • C26/1 .L NG ra 112., STATE OF FLORIDA COUNTY OF INDIAN RIVER UTILITY: GENERAL DEVELOPMENT UTILITIES, INC., a corpprat�on By: President [Corporate Seal] The foreg ing instrument was acknowledged before me this 4 day of , 1993 by Lonnie R. Powell, the Mayor of THE CITY OF SEBASTIAN, FLORIDA, on behalf of THE CITY OF SEBASTIAN. 1-7*-41is personally known—to me or has produced A -)/A as identification. State of SALLY A. MAK+ Nowy Pub k•amiu or Aiorm Ny Cortw"W ExWw OCT 05,1997 CDW t cc 075906 Name of A knowledger Typed, Printed or Stamped Col 045906 Commission Number 24 STATE OF FLORIDA COUNTY OF -2�fA D �— he foregoing in� ent was acknowledged before me this day of /Ec , 1993 by Charles E. Fancher, Jr., President of GENERAL DEVELOPMENT UTILITIES, INC., a Florida Corporation, on behalf of the corporation. He is personally known to me or has produced as identification. OrFl= NOTARY SEAL WILSON w 1 y COMLTAR]ON NUMBER %Frta`� CC174107 MY COMMISSION EXP. OF pO FEB. 6 1996 �tTary Public State of Florida % AIAI.4 / Z, l c% /--&A, Name of ACknowledger Typed, Printed or Stamped Commission Number 25 p0.V P O� LB OfFlGAIAL NOTAR!' N < OOMMI6810/! Nl:rlean T, p CCI?4, FOF FLOC MY COMMIS' ' • zP. FEF "LIST OF EXHIBITS TO CITY OF SEBASTIAN, FLORIDA/ GENERAL DEVELOPMENT UTILITIES, INC. WATER AND SEWER SYSTEM PURCHASE AND SALE AGREEMENT 3.1 Land 3.3 Equipment 3.4 Easements, ROWS, and other similar real estate rights and assets 3.6 Business Records 3.7 Permits and Approvals 3.11 All Assigned and Assumed 3.13 Inventory Part A and Part c:\wp\cin\sebasgdu.RE2 26 Contracts and Agreements B z r. STATE OF FLORIDA ) AFFIDAVIT COUNTY OF S1J rVeP_ SS; Ur�A- BEFORE ME, the undersigned authority, personally appeared Charles E. Fancher, Jr. (the "Affiant"), who being by me first duly sworn, on oath deposes and says as follows: 1. Affiant is the President of General Development Utilities, Inc., a Florida corporation, and he is duly authorized to execute this Affidavit on behalf of the corporation (the "Transferor"). 2. Transferor is the owner of that certain property located and being situate in Indian River County, Florida,- more Particularly described in Exhibit I'All attached hereto and by this reference made a part hereof (the "Property"). 3. Except for those certain contracts listed on Exhibit "Bly attached hereto and by this reference made a part hereof, there are no outstanding contracts, either oral or written, for the furnishing of labor, material or services to the Property for any improvements thereon, and except for the services and materials provided in December, 1993 by those certain suppliers and vendors listed in Exhibit 11C11 attached hereto and by this reference made a part hereof (collectively, the "suppliers") within the past ninety (90) days: (i) there have been no improvements, alterations or repairs to the Property for which the cost, or any part thereof, remain unpaid, and (ii) there have been no claims for labor or material furnished for repairing or improving the Property, which remain unpaid. 4. There are no mechanic's, materialmen's or laborer's liens against the Property, or any part thereof, and that except for the Suppliers, no contractor, subcontractor, laborer or materialman, engineer, land engineer or surveyor has any lien or right to a lien against the Property or any part thereof. 5. Transferor has exclusive possession of the Property and there are no other parties with a right to possession of the Property other than Transferor. 6. Transferor is a corporation organized under the laws of the State of Florida, and is not a foreign corporation as that term is defined in the Internal Revenue Code and Income Tax Regulations. That the United States employer identification number of Transferor is 59-881993, and Transferor's office address is 2601 South Bayshore Drive, Miami, Florida 33133-5461. This Affidavit is being given for the purpose of exempting from the withholding require- ments of Internal Revenue Code Section 1445 that certain transac- tion whereby Transferor is conveying an interest in the Property to City of Sebastian, Florida (the "Purchaser"). Transferor understands that this Affidavit may be disclosed to the Internal Revenue Service by the Purchaser, and that any false statement contained herein could be punished by fine, imprisonment or both. 7. There has been no change in title to the Property from and after December io, 1993, at ;oo a.m., and except as set forth in paragraphs 3 and 4 above, there are no matters pending which could give rise to a lien that would attach to the Property. 8. This Affidavit has been executed and delivered to induce: (i) Purchaser topurchase the Property, and (ii) First American Title Insurance Company to insure Purchaser's interest in the Property. .. 9. Affiant is. executing this Affidavit solely in his capacity as a President of Transferor and no resort shall be had to any of Affiant's personal assets on account hereof. 10. The Affiant is familiar with the nature of an oath; and with the penalties as provided by the laws of the State aforesaid for falsely swearing to statements made in an instrument of this nature. The Affiant has read, or has heard read, the full facts of this Affidavit, and understands its co ent . Charles E. Fancher, Jr. ffiant,, SWORN TO AND SUBSCRIBED before me this _Lj_ day of December, 1993 by Charles E. Fancher, Jr. He is personally known to me or produced a driver's license /as identification. V, #Yjj— vur-drY Public, St to of Florida Name: c0 -geld C. Commission No. AA 759 330 My Commission Expires: 3 -IV _,jt` ca�m�au1W ur.u. [Notarial Seal] "OFFICIAL NOTARY SEAL° CHARLES C. HEARTSFIE6D MY COY.M. EXP. 3/18/94 2 - r: PARCEL I: All of Tract "D" as shown on the plat of SEBASTIAN HIGHLANDS UNIT -17, as recorded in Plat Book 8, Page 46, Public Records of Indian River County, Florida. PARCEL II: A parcel of land located in the Northeast 1/4 of the Northeast 1/4; LESS the East 20 acres thereof and a portion of the Southeast 1/4 of the Northeast 1/4 of Section 18, Township 31 South, Range 39 East, Indian River County, Florida, and being more particularly described as follows: Begin at the Northeast corner of said Section 18, Township 31 South, Range 39 East; thence South 89022136" West, along the North line of the said Northeast 1/4 of Section 18, a distance of 657.45 feet to the Northwest corner of the said East 20 acres of the Northeast 1/4 of the Northeast 1/4; thence South 00001124" West, along the West line of the said East 20 acres, a distance of 1325.55 feet, to a point in the South line of the said Northeast 1/4 of the Northeast 1/4; said point also being the Northwest corner of Sebastian Highlands Unit 9, as recorded in Plat Book 6, Page 36A, Public Records of Indian River County, Florida; thence continue along the boundary of said plat of Sebastian Highlands Unit 9, the following courses and distances: thence continue South 00001124" West, a distance of 130.66 feet to a point in a curve concave to the Southwest having a radius of 435.64 feet, the chord of which bears North 85020121" West; thence Westerly along the are of said curve, a distance of 70.30 feet, through a central angle of 0901414811, departing said platted boundary; thence North 00001124" East, a distance of 54.11 feet; thence South 89019102" West, a distance of 71.5 feet more or less, to the Easterly waters edge of Schumann Lake; thence Northwesterly, Westerly, Southerly, southeasterly, Southwesterly, Westerly and Southerly meander the waters edge of Schumann Lake, a distance of 1647 feet, more or less, to the South line of the said Southeast 1/4 of the Northeast 1/4; thence South 89015127" West, along the South line of the said Southeast 1/4 of the Northeast 1/4, a distance of 97.9 feet, more or less, to the Southwest corner of the said southeast 1/4 of the Northeast 1/4; thence North 000.01'25" West, along the West line of the said East 1/2 of the Northeast 1/4, a distance of 2652.47 feet to the aforesaid North line of the Northeast 1/4; thence North 89022136" East along the said North line, a distance of 673.15 feet to the Point of Beginning. PARCEL III: The East 200 feet of Tract "A", SEBASTIAN HIGHLANDS, UNIT 9, according to the plat thereof, recorded in Plat Book 6, Page 36 and 36A, Public Records of Indian River County, Florida. OM EXHIBIT 11BRI None EXHIBIT "C" None FAnC200 (6.66) Commitment No. FA -CC -381368 COMMITMENT FOR TffLF. INSURANCE ISSI ED BN First American Title Insurance Company FIRST AMERICAN TITLE INSURANCE COMPANY, a corporation of California, herein called the Company, for a valuable consideration, hereby commits to issue its policy or policies of title insurance as identified in Schedule A, in favor of the proposed Insured named in Schedule A, as owner or mortgagee of the estate or interest covered hereby in the land described or referred to in Schedule A, upon payment of the premiums and charges therefor; all subject to the provisions of Schedules A and B and to the Conditions and Stipulations hereof. This Commitment shall be effective only when the identity of the proposed Insured and the amount of the policy or policies committed for have been inserted in Schedule A hereof by the Company, either at the time of the issuance of this Commitment or by subsequent endorsement. This Commitment is preliminary to the issuance of such policy or policies of title insurance and all liability and obligations hereunder shall cease and terminate six (6) months after the Effective Date hereof or when the policy or policies committed for shall issue, whichever first occurs, provided that the failure to issue such policy or policies is not the fault of the Company. This Commitment shall not be valid or binding until Schedule A has been countersigned by either a duly authorized agent or representative of the Company and Schedule B -I and B -II have been attached hereto. IN WITNESS WHEREOF, the Company has caused this Commitment to be signed and sealed, to become valid when countersigned by an authorized officer or agent of the Company, all in accord- ance with its By -Laws. This Commitment is effective as of the date shown in Schedule A as "Effective Date". First American Title Insurance Company BY % //� V PRESIDENT l//� r ATTEST SECRETARY A.L.T.A. COMMITMENT -1966 STANDARD EXCEPTIONS FOR OWNER'S POLICY The owner's policy will be subject to the mortgage, if any, noted under item one of Item 4 of Schedule B -I hereof and to the following general execptions: 2. Easements, or claims of easements, not shown by the public records. 3. Encroachments, overlaps, boundary line disputes, or other matters which would be disclosed by an accurate survey or inspection of the premises. 5. Any adverse claim to any portion of said land which has been created by artificial means or has accreted to any such portion so created and riparian rights, if any. ex CONDITIONS AND STIPULATIONS The term "mortgage," when used herein, shall include deed of trust, trust deed, or other security instrument. 2. If the proposed Insured has or acquires actual knowledge of any defect, lien, encumbrance, adverse claim or other matter affecting the estate or interest or mortgage thereon covered by this Commit- ment other than those shown in Schedule B-1 and Schedule B -II hereof, and shall fail to disclose such knowledge to the Company in writing, the Company shall be relieved from liability for any loss or damage resulting from any act of reliance hereon to the extent the Company is prejudiced by failure to so disclose such knowledge. If the proposed Insured shall disclose such knowledge to the Company, or if the Company otherwise acquires actual knowledge of any such defect, lien, encumbrance, adverse claim, or other matter, the Company at its option may amend Schedule B -I and/or Schedule B -II of this Commitment accordingly, but such amendment shall not relieve the Company from liability previously incurred pursuant to paragraph 3 of these Conditions and Stipulations. 3. Liability of the Company under this Commitment shall be only to the named proposed Insured and such parties included under the definition of Insured in the form of policy or policies com- mitted for and only for actual loss incurred in reliance hereon in undertaking in good faith (a) to comply with the requirements hereof, or (b) to eliminate exceptions shown in Schedule B-11 or (c) to acquire or create the estate or interest or mortgage thereon covered by this Commitment. In no event shall such liability exceed the amount stated in Schedule A for the policy or policies committed for and such liability is subject to the insuring provisions, the Exclusions from Cover- age and the Conditions and Stipulations of the form of policy or policies committed for in favor of the proposed Insured which are hereby incorporated by reference and are made a part of this Commitment except as expressly modified herein. Any action or actions or rights of action that the proposed Insured may have or may bring against the Company arising out of the status of the title to the estate or interest or the status of the mortgage thereon covered by this Commitment must be based on and are subject to the pro- visions of this Commitment. �� AMERI First American Title Insurance Company COMMITMENT FOR TITLE INSURANCE First American Title Insurance Company SCHEDULE A Customer Reference No.: Agent's File No.: 7931410-4 Commitment No. FAC 381368 JM Date Issued: October 6, 1993 Date Effective: SVg1t mt,l �1. w93 @ 08:00 AM p ClC �n lxr ID 1 2. Policy or Policies to be issued: -Amount of -Peli-e (a) A.L.T.A. Owner's Policy Determ' o to�,y� (4/6/90 with Florida Modifications) eed $1,000,000.00� Proposed Insured: A NATURAL PERSON OR LEGAL ENTITY TO BE DESIGNATED CITV1 OF Sfi3RSTlRa�FLORIDA( KH. (b) A.L.T.A. Loan Policy Amount of Policy: $ 3,bSo 000.00 (4/6/90 with Florida Modifications) Proposed Insured: 3. The estate or interest in the land described or referred to in this Commitment and covered herein is an estate designated as follows: FEE SIMPLE 4. Title to the estate or interest in the land described or referred to in this Commitment and covered herein (and designated as indicated in No. 3 above) is, at the effective date hereof, vested in: GENERAL DEVELOPMENT UTILITIES, INC., a Florida corporation 5. The land referred to in this Commitment is in the State of Florida, County of Indian River and described as follows: PARCEL I: All of Tract "D" as shown on the plat of SEBASTIAN HIGHLANDS LEGAL DESCRIPTION CONTINUED ON NEXT PAGE First American Title Insurance Company UNIT -17, as recorded in Plat Book 8, Page 46, Public Records of Indian River County, Florida. PARCEL II: A parcel of land located in the Northeast 1/4 of the Northeast 1/4; LESS the East 20 acres thereof and a portion of the Southeast 1/4 of the Northeast 1/4 of Section 18, Township 31 South, Range 39 East, Indian River County, Florida, and being more particularly described as follows: Begin at the Northeast corner of said Section 18, Township 31 South, Range 39 East; thence South 89022136" West, along the North line of the said Northeast 1/4 of Section 18, a distance of 657.45 feet to the Northwest corner of the said East 20 acres of the Northeast 1/4 of the Northeast 1/4; thence South 00001124" West, along the West line of the said East 20 acres, a distance of 1325.55 feet, to a point in the South line of the said Northeast 1/4 of the Northeast 1/4; said point also being the Northwest corner of Sebastian Highlands Unit 9, as recorded in Plat Book 6, Page 36A, Public Records of Indian River County, Florida; thence continue along the boundary of said plat of Sebastian Highlands Unit 9, the following courses and distances: thence continue South 00001124" West, a distance of 130.66 feet to a point in a curve concave to the Southwest having a radius of 435.64 feet, the chord of which bears North 85020121" West; thence Westerly along the arc of said curve, a distance of 70.30 feet, through a central angle of 0901414811, departing said platted boundary; thence North 00001124" East, a distance of 54.11 feet; thence South 89019102" West, a distance of 71.5 feet more or less, to the Easterly waters edge of Schumann Lake; thence Northwesterly, Westerly, Southerly, Southeasterly, Southwesterly, Westerly and Southerly meander the waters edge of Schumann Lake, a distance of 1847 feet, more or less, to the South line of the said Southeast 1/4 of the Northeast 1/4; thence South 89015127" West, along the South line of the said Southeast 1/4 of the Northeast 1/4, a distance of 97.9 feet, more or less, to the Southwest corner of the said Southeast 1/4 of the Northeast 1/4; thence North 00001'25" West, along the West line of the said East 1/2 of the Northeast 1/4, a distance of 2652.47 feet to the aforesaid North line of the Northeast 1/4; thence North 89022136" East along the said North line, a distance of 673.15 feet to the Point of Beginning. LEGAL DESCRIPTION CONTINUED ON NEXT PAGE First American Title Insurance Company PARCEL III: The East 200 feet of Tract "A", SEBASTIAN HIGHLANDS, UNIT 9, according to the plat thereof, recorded in Plat Book 6, Page 36 and 36A, Public Records of Indian River County, Florida. FIRST AMERICAN TITLE INSURANCE COMPANY B Atithorized Sig atory First American Title Insurance Company Agents File No.: 7931410-4 SCHEDULE B-1 (Requirements) Commitment No: FAC 381368 JM The following are the requirements to be complied with: �at\y 2. Payment of all taxes, assessments, levied and assessed against 09:7,,f subject premises, which are due and payable. C�.i•Q"X anatery evi be produced a1; i1l jJ11jiX0VAmiEarts=and or repairs or alter ns—thereto re completed; that contractor, subc tr atio�'a -_=--F_ll_ ( p z,��delivered and duly filed for record: K.'- a. r ° Record proper Deed from GENERAL DEVELOPMENT Florida corporation to A NATURAL PERSON OR DESIGNATED. UTILIT S, INC., a EG ENTITY TO BE °-c b. Partial Release of Mortgage and Security A Bement from General 4'0"'C�r1'5 ' Development Corporation, a Delaware corporation and Environmental •'v'2�- Quality Laboratory, Incorporate Florida corporation, to Manufacturers Hanover Trust C `i y, a New York banking corporation, dated as of 3/31/9k ecorded 3/30/93 in O.R. Book 928, Page 437, Indian River Co y Records. (As to Parcel III) c. Partial Termination of Financing Statement given by General Development Corporation,Delaware corporation, Cumberland Cove, Inc., a Tennessee corp fation, Environmental Quality Laboratory, Incorporation, a Flo da corporation, and Florida Home Finders, Inc., a Florida orporation to Manufacturers Hanover Trust Company, a New Y k banking corporation, as agent for the parties listed on Sched e 2 attached thereto, and made a part hereof, recorded 3/30 2 in O.R. Book 928, Page 730, Indian River County Records. (As to Parcel III) d.Partial lease of Subordinate Mortgage and Security Agreement from Ge eral Development Corporation, a Delaware corporation and Envir ental Quality Laboratory, Incorporated, a Florida corp ration to Manufacturers Hanover Trust Company, a New York ba ing corporation, dated as of 3/31/92, recorded 3/30/92 in O.R. Book 928, Page 1008, Indian River County Records. (As to First American Title Insurance Company SCHEDULE B-1 (Requirements Continued) e Pai l Tezmirat ion -of Financing Statement— given—by—Genera-L Development Corporation, a Delaware corporation and additional debtors listed on Schedule 1 attached thereto and made a part hereof to manufactures Hanover Trust Company, a New York banking corporation, as agent for the parties listed on Schedule 2 attached thereof, and made a part hereto, recorded $/30/92 in O.R. Book 928, Page 1301, Indian River County Records. (As to Parcel III) f. Termination of Financing Statement given by Gearal Development Corporation, a Delaware corporation, and additional debtors listed on Schedule 1 attached thereto and made a part hereof to Manufacturers Hanover Trust Company, a New York banking corporation, as agent for the parties -"listed on Schedule 2 attached thereto and made a part hereof, recorded 7/21/92 in O.R. Book 941, Page 469, Indian Riv - County Records. (As to Parcel III) j g. Partial Termination of Financinc;z-�Vfatement given by General Development Corporation, a Delwa2e corporation, and additional debtors listed on Schedule 1 attached thereto and made a part hereof, to Manufacturers Hanover Trust Company, a New York banking corporation, as agent for the parties listed on Schedule 2 attached thereof, and made a part hereof, recorded 7/21/92 in O.R. Book 941, Page 475, Indian River County Records. (As to Parcel III) h. Partial Release of Mortgage and Security Agreement No. 1 in the amount of $50,000,000.00 from General Development Utilities, Inc., a Florida corporation to Chemical Bank, a New York banking corporation, as successor by merger with Manufacturers Hanover Trust Company,,dated as of 8/31/92, recorded 9/17/92 in O.R. Book 946, Page 2281, Indian River County Records. (As to all Parcels) i. Partial Release of Mortgage and Security Agreement No. 2 in the amount of $50,000,000.00 from General Development Utilities, Inc., a Florida corporation to Chemical Bank, a New York banking corporation, as successor by merger with Manufacturers Hanover Trust Company, dated as of 8/31/92, recorded 9/17/92 in O.R. Book 946, Page 2330, Indian River County Records. (As to all Parcels-) First American Title Insurance Company SCHEDULE B-1 (Requirements Continued) No. 1 in the amount of $20,000,000.00 from General Develop m Utilities, Inc., a Florida corporation to Chemical Bank, New York banking corporation, successor by merger withManuf turers Hanover Trust Company, dated as of 8/31/92, recorded 9 7/92 in O.R. Book 946, Page 2388, Indian River County Reco s. (As to all Parcels) k. Partial Release of Subordinate Mortgage and4,curity Agreement No. 2 in the amount of $20,000,000.00 from eneral Development Utilities, Inc., a Florida corporation to/Chemical Bank, a New York banking corporation, successor by merger with Manufacturers Hanover Trust Company, dated as of 8/3 /92, recorded 9/17/92 in O.R. Book 946, Page 2438, Indian Riv r County Records. (As to all Parcels) — 1. Termination of FinancingW given by General Development Utilities, Inc., a Florition to Chemical Bank, a New York banking corporation, for the parties listed on Schedule 1 attached themade part hereof, recorded 9/17/92 in O.R. Book X�2497, Indian River County Records. (As to all Parcels) M. Termination of Fin ncing Statement given by General Development Utilities, Inc., Florida corporation to Chemical Bank, a New York banking corporation, as Agent for the parties listed on Schedule 1 attached thereto and made a part hereof, recorded 9/17/902 in/O.R. Book 946, Page 2530, Indian River County Records. (As to all Parcels) n. Record certified copy of Dismissal, or an Order Authorizing Sale of t subject property as entered in the Bankruptcy Proceedings fil d in the Southern District of the State of Florida Ba kruptcy Division on behalf of General Development rporation, at al, Case Nos. 90 -12231 -BRC -AJC. (As to all �y� t C a e o F ori r 4U� GENERAL DEVELQ., e er s i avi sa isfactory o f ai s aaiels lens. 7. Submit a proper survey certified to all parties involved in this transaction, including but not limited to, First American Title Insurance Company. First American Title Insurance Company SCHEDULE B -II (Exceptions) Agents File No.: 7931410-4 Commitment No: FAC 381368 JM Schedule B of this policy or policies to be issued will contain exceptions to the following matters unless the same are disposed of to the satisfaction of the Company. 1. Defects, liens, encumbrances, adverse claims, or other matters, if any, created, first appearing in the public records, or attaching subsequent to the effective date hereof but prior to the date the 'e proposed Insured acquires for value of record the estate or interest or mortgage thereon covered by this Commitment. Z> 2. Any owners policy issued pursuant hereto will contain under Schedule B. the General Exceptions set forth at the inside cover �Np hereof. Any loan policy will contain Schedule B General Exceptions It/ 1,2,3 and 5 unless a satisfactory survey and inspection of the "µJi premises is made and will contain General Exceptions 4 and 6. contruction loan to be disbursed in future periodic iuAaliments, then the policy shall contain an additional except' which shall read as follows: Pending disbursement of the full proceeds-,Pf"the loan secured by the mortgage insured, this pol' y only sures the amount actually disbursed, but increases as oc edsdisbursed in good faith and without knowledge of an i tjr�aening lien or interest to or for the account of the mortgag rEis the amount of the policy. Such disbursement shall not extenddate of the policy or change any part thereof unless such Ia specifically made by written endorsement duly issued ,9 behalf of the Company. Upon request by the insured (and paymq�nt of the proper charges therefor) the Company will search a public records subsequent to the date of the policy and f,uknish to the insured a continuation report showing such matters affecting title to the land as they have appeared in the public records subsequent to the date of the policy or the dat of the last preceding continuation report, and if such continuation report shows intervening lien, or liens, or interest to or or the account of the mortgagor, then in such event this po 'cy does not increase in liability unless such matters as a,dtually shown on such continuation report is removed from the EXCEPTIONS CONTINUED ON NEXT PAGE First American Title Insurance Company SCHEDULE B -II (Exceptions Continued) 4. The lien of the taxes for the year 1993 and all subsequent years, which are not yet due and payable. Wr Parcel No.: 19-3f-39 001-0004-00001/0 - AS TO PARCEL I pR 1992 Taxes are PAID1'�,1Gross Amount $ 8,780.03 - K Parcel No.: 18-31-39-00000-100�0-'0002/0 - AS TO PARCEL II 1992 Taxes are PAID. Gross Amount $ 3,646.57 5. Terms and Conditions shown in said Declaration of Restrictions, by General Development Corporation, a Delaware corporation, dated 6/29/71, recorded 7/22/71 in O.R. Book 389, Page 164, Indian River County Records. (As to Parcel I) 6. Terms and Conditions shown in said Declaration of Restrictions, by General Development Corporation, a Delaware corporation, recorded in O.R. Book 393, Page 522, Indian River County Records. (As to Parcel I) 7. Easement granted to American Telephone & Telegraph Company from Indian River Farms. Co., dated 3/8/26, recorded in Misc. Book 1, Page 199, Indian River County Records. (As to Parcel II) 8. Subject to reservations of oil, gas and minerals and/or rights-of-way to Trustees of the Internal Improvement Fund as set forth in instrument recorded in Deed Book 35, Page 337 Public Records of Indian River County, Florida. The right of entry in respect to any interest in phosphate, minerals, metals or petroleum has been released pursuant to Florida Statute 270.11. (As to Parcels II and III) y Fa�__a_ mme i anted -to -General —d eve 1opmeut---Jtk1it1es,- Inc—_ --from Gene_ral_Development Corporation,_ dated--4J-27J96;-recordedF6/24/76 in / O.R. Book ,_Page -7l, -Indian River County Records. (As to Parcel EXCEPTIONS CONTINUED ON NEXT PAGE x Parcel No.: 18-31-39-00001-0001-00002/0 - AS TO PARCEL III 1992 Taxes are PAID. Gross Amount $ 447.43 c ko �1 NOTE: If subject property has been a rental unit or non -owner `yti ,Y occupied property, it may be subject to Tangible Taxes, which are not covered by this policy, nor has an examination been made of said taxes. Upon request and payment of an appropriate search fee we will conduct an examination for tangible taxes. 5. Terms and Conditions shown in said Declaration of Restrictions, by General Development Corporation, a Delaware corporation, dated 6/29/71, recorded 7/22/71 in O.R. Book 389, Page 164, Indian River County Records. (As to Parcel I) 6. Terms and Conditions shown in said Declaration of Restrictions, by General Development Corporation, a Delaware corporation, recorded in O.R. Book 393, Page 522, Indian River County Records. (As to Parcel I) 7. Easement granted to American Telephone & Telegraph Company from Indian River Farms. Co., dated 3/8/26, recorded in Misc. Book 1, Page 199, Indian River County Records. (As to Parcel II) 8. Subject to reservations of oil, gas and minerals and/or rights-of-way to Trustees of the Internal Improvement Fund as set forth in instrument recorded in Deed Book 35, Page 337 Public Records of Indian River County, Florida. The right of entry in respect to any interest in phosphate, minerals, metals or petroleum has been released pursuant to Florida Statute 270.11. (As to Parcels II and III) y Fa�__a_ mme i anted -to -General —d eve 1opmeut---Jtk1it1es,- Inc—_ --from Gene_ral_Development Corporation,_ dated--4J-27J96;-recordedF6/24/76 in / O.R. Book ,_Page -7l, -Indian River County Records. (As to Parcel EXCEPTIONS CONTINUED ON NEXT PAGE First American Title Insurance Company SCHEDULE B -II (Exceptions Continued) c o Notice of Filing Bankruptcy Pet i it -on —in the — Scuth District of the State of Florida Bankru ny DIV-isi n behalf of /\ General Development Co poratioh, et al, Case No. 90 -12231 -BRC -AJC, recorded 5 4- in O.R. Book 865, Page 1897, Indian River County Re (As *e all vaZcals) 11. No title is insured to any personal property. AWN AGREEMENT THIS AGREEMENT, entered into this day of December, 1993 by and between GENERAL DEVELOPMENT UTILITIES, INC., a Florida corporation, hereinafter referred to as "GDU" and the CITY OF SEBASTIAN, FLORIDA, a municipal corporation created under the laws of the State of Florida, acting through its City Council, hereinafter referred to as the "City". RECITALS 1. GDU is on even date herewith conveying the Sebastian Water and Wastewater System (the "Utility System") to the City in accordance with that certain City of Sebastian, Florida/General Development Utilities, Inc. Water and Sewer System Purchase And Sale Agreement date October 12, 1993. (the "Agreement") 2. The City ultimately intends to operate the Utility System through its own employees and under its sole discretion, but as of the date hereof, the City is unable to operate the Utility System in its entirety. 3. Pursuant to Paragraph 4 of the Agreement, GDU agreed to provide certain transitional services to City at no additional cost to City, but City has requested certain additional services be provided by GDU and GDU has agreed to provide such services in accordance with the terms set forth herein. 4. During a transition period following the date of acquisition, in addition to the services to be provided by Utility to City, technical support relating to billing and information processing will be required to provide uninterrupted service for the customers of the Utility System. 5. GDU has indicated its willingness to provide technical support during the period, not to exceed three (3) months. 6. The City desires to have GDU provide this service in accordance with the terms set forth herein and believes this arrangement to be in the public interest. NOW, THEREFORE, in consideration of the mutual promises contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 1. RECITALS: The foregoing recitals are true and correct and are incorporated herein by this reference. 2. SCOPE OF WORK: The City hereby engages GDU, and GDU hereby accepts such engagement, as an independent contractor, to provide to the City the following technical support for billing services with respect to the Utility Systems: (i) MIS, Treasury, GDU and other monthly processing services; (ii) programming support services; and (iii) mailing and processing services; (iv) access to operational equipment at GDU's division office. GDU shall also use good faith efforts to provide data or reports necessary to assist the City in its conversion to its' own billing system, at no cost to the City, other than any out of pocket costs. 3. TERM OF AGREEMENT: GDU will provide the foregoing services to the City for a period of three (3) months following the date hereof, unless such services are no longer required by the City and are terminated in accordance with paragraph 6 below, or extended through mutual consent of the parties. 4. COMPENSATION: GDU shall receive as compensation for all services to be rendered hereunder the amounts set forth in the rate schedule attached hereto as Exhibit "A" and by this reference made a part hereof which are to be paid as follows: (I) GDU shall submit invoices for services performed hereunder to the City on a monthly basis; and (ii) the City shall remit payment to GDU for all amounts owing as set forth on the invoices within twenty (20) days following receipt of the invoices. Notwithstanding the foregoing, if any additional services are provided which are not included on the rate schedule attached as Exhibit "A", GDU will be compensated only for its out of pocket costs of performing said services (including reasonable overhead expenses), without any additional profit. 5. LIABILITY: GDU shall provide the technical billing services at a standard of quality and accuracy comparable to those services that it provides to its own operation divisions. If errors or omissions are made as a result of GDU's billing programs, then the billing invoice shall be corrected and redelivered to the customer at GDU's sole cost and expense. GDU shall not be liable to the City for any damages or liabilities arising out of or in connection with the performance of the services hereunder, except for any actions constituting gross negligence or willful misconduct. 2 6. TERMINATION OF SERVICES: From and after the initial 90 day term hereof, either party may terminate this Agreement upon (30) days prior written notice. Upon such termination, the City shall immediately pay to GDU all amounts owing for services rendered throughthe effective date of termination in accordance with the schedule attached hereto as Exhibit "A" 7. REVENUES: GDU agrees to transfer revenues on a weekly basis to the City's account by ACH transfer, or other methods if mutually agreed upon. 8. INDEPENDENT CONTRACTOR RELATIONSHIP: GDU is being engaged hereunder as an independent contractor and nothing contained herein shall be construed to create a relationship of principal and agent, employer and employee, joint venture or partnership between GDU and the City. Accordingly, no additional benefits shall accrue.to GDU and/or the City and no withholding shall be undertaken with respect to fees payable hereunder. 9. NOTICES: Any notice required or permitted to be given under this Agreement shall be in writing, and shall be deemed to have been given if delivered by hand, sent by recognized overnight courier (such as Federal Express) or mailed by certified or registered mail, return receipt requested, in a postage prepaid envelope, and addressed as follows: To GDU at: GENERAL DEVELOPMENT UTILITIES, INC. 2601 South Bayshore Drive Miami, Florida 33133-5461 Attn: Charles E. Fancher, Jr. President copy to: Marcia H. Langley, Esq. ATLANTIC GULF COMMUNITIES CORPORATION 2601 South Bayshore Drive Miami, Florida 33133-5461 3 AMN To City at: City Manager CITY OF SEBASTIAN 1225 Main Street Sebastian, Florida 32958 copy to: Charles Ian Nash, Esq. City Attorney Frese, Nash & Torpy, P.A. 930 S. Harbor City Blvd. Melbourne, Florida 32901 Notices personally delivered or sent by overnight courier shall be deemed given on the date of delivery and notices mailed in accordance with the foregoing shall be deemed given three (3) days after deposit in U.S. Mail. 10. ASSIGNMENT: This Agreement is personal to the City and GDU, and accordingly, neither the City or GDU shall be entitled to assign its rights hereunder. 11. INTERPRETATION: The terms "GDU" and "CITY" as used herein shall mean and include the named parties and their respective successors and permitted assigns. 12. MISCELLANEOUS: (a) This Agreement shall be construed and governed in accordance with the laws of the State of Florida. (b) In the event any term or provision of this agreement be determined by appropriate judicial authority to be illegal or otherwise invalid, such provision shall be given its nearest legal meaning or be construed as deleted as such authority determines, and the remainder of this Agreement shall be construed to be in full force and effect. (c) In the event of any litigation between the parties to this Agreement, the prevailing party shall be entitled to reasonable attorneys' fees and court costs, including, but not limited to, fees and costs incurred at the trial level and all appellate levels. The parties further mutually agree that any trial shall be before a judge only, the parties mutually waiving any trial by jury. The provisions of this subparagraph shall survive the expiration or earlier I%1 termination of this Agreement co -extensively with other provisions of this Agreement. (d) In construing this Agreement, the singular shall be held to include the plural, the plural shall be held to include the singular, the use of any gender shall be held to include every other and all genders, and captions and paragraphs headings shall be disregarded. (e) This Agreement constitutes the entire understanding and agreement between the parties with respect to the subject matter herein, and supersedes all prior written and oral agreements, and may not be changed, altered or modified except by an instrument in writing signed by the party against whom enforcement of such change would be sought. IN WITNESS WHEREOF, the undersigned have executed and delivered this Agreement as of the day and year first above written. Signed, sealed and delivered in the presence of these witnesses: Witness:(/1 Print Name:4 6,442„g Witness: Kint Name: OlgWo(76k5'AJJ"1e)a� Signed, sealed and delivered in the presence of these witnesses: Witness. Print Name: Cr ( J Witness: _cmc Printame:V—eAAWeJ.v.dc,,1r- ,c 5 GENERAL DEVELOPMENT UTILITIES, INC., a Florid or ration BY: Charles E. Fancher, Jr. President (Corporate Seal) THE CITY SEBASTIAN, FLORIDA, a municipal corporpJ+on creettedy e the laws of/theAtateFlcrf nY a 93 Lohnie R. Pb-%iie'11, Mayor BEST. a ryn i s Oran, i y erk (Seal) Appro d as to_Yorm and Content: City Attorney Utility Billing Support City of Sebastian --------------------------------------------------------------- ----------------------------- I. START UP COSTS One Time Charge $1,000 Forms and Form Design $1,455 II.MONTHLY CHARGES MIS Processing $944 Treasury Processing (includes direct transfer of monthly revenues) $47 Sun Bank Processing $532 GDU Processing $64 $1,587 III. PRONTO POST CHARGES- ACTUAL $170 Estimate IV. MAILING COSTS - ACTUAL $464 Estimate V. OPERATIONAL COSTS Fixed costs: * OFFICE LEASE - SHARED COSTS $50 * AT&T EQUIPMENT COSTS - SHARED COSTS $55 Variable Costs: * FP&L - ACTUAL - SHARED COSTS $118 Estimate SOUTHERN BELL - ACTUAL - FULL COSTS $161 Estimate ACTION ANS. SERV.- ACTUAL - FULL COSTS $298 Estimate V. EXTRA PROGRAMMING SUPPORT 75.00/HR. EXHIBIT A ALL CHARGES ARE BASED ON THE FOLLOWING CONDITIONS: - DEDICATED LINE IS LOCATED AT 2055 SKYLINE DRIVE, VERO BEACH, FL 32960 - CITY AGREES TO USE GDU'S LOCK BOX WITH TRANSFERS OF REVENUES BEING COMPLETED ON A WEEKLY BASIS - CITY PROVIDES GDU WITH A VOIDED CHECK FOR THE PURPOSE OF SETTING UP THE DIRECT ACH TRANSFER PROCEDURE - CUSTOMER PAYMENTS ARE MAILED TO P.O. BOX 025233 MIAMI, FL 33102-5233 - CITY PROVIDES GDU WITH LOGO FOR USE ON ENVELOPES FOR CITY - NO CHANGES IN BILLING FORMS WITH THE EXCEPTION OF COLOR AND NAME OF CITY *' SHARED COSTS ARE BASED ON 508 OF ACTUAL GDU COSTS. THESE OPERATIONAL COSTS ARE SUBJECT TO CHANGE IF GDU DOES NOT REMAIN AT OFFICE LOCATION rt Ll