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HomeMy WebLinkAbout2005 05 09 Regular 514, Sale of 124 Rhoden Lane to Eric Douglas 050905_ COMM _ADD-ON _Regular _514_ Rhoden_Lane _Sale COMMISSION AGENDA ADD-ON ITEM 514 Consent Informational Public Hearing Regular X May 9, 2005 Regular Meeting Mgr. ~ Dept. Authorization REQUEST: The City Manager requesting the City Commission to authorize an offer of sale of 124 Rhoden Lane to Eric Douglas. PURPOSE: This Agenda Item is needed for the Commission to authorize an offer of sale of 124 Rhoden Lane to Eric Douglas. CONSIDERATIONS: There are two remammg units in the four-plex Rent to Purchase conversion project originally contracted to Wyman Fields. Eric Douglas has rented 124 Rhoden Lane since September 1, 2001. During this period of time he has attempted to qualify for a mortgage to purchase the unit. At this time he believes he has the financial ability to purchase the unit and has requested a number of discounts from the purchase price. The City Commission has authorized the City Manager to sale the units at the current appraised value only. 050905_ COMM_ADD-ON _Regular _514_ Rhoden_Lane _Sale After review of the file I am recommending the following I. DISCOUNTED PURCHASE PRICE Purchase Price $86.500 Discounts Rent to Own discount (100 per month for each 45 months of rental) Air Conditioner repairs Miscellaneous Repairs (replace carpet and baseboards) (4,600) ( 612) ( 588) Purchase Price $ $80.700 II. City will do all we can to help qualify Mr. Douglas for Florida Housing Authority Low Interest Bond Mortgage financing and SHIP mortgage Buy Down. III. Mr. Douglas will agree to all other limitations, restrictions, and covenants placed upon the owner's of Moss Cove Town Homes. IV. Mr. Douglas will agree to normal purchaser closing costs. FUNDING: N/A RECOMMENDATION: It is recommended that the Commission approve the Purchase price and other conditions of sale contained herein for the sale of 124 Rhoden Lane to Eric Douglas. ATTACHMENT: May 6, 2005 City Manager Letter to Eric Douglas May 5, 2005 Michelle Greco memorandum to the City Manager December 13,2004 Eric Douglas Letter to City COMMISSION ACTION: CITY OF WINTER SPRINGS, FLORIDA 1126 EAST STATE ROAD 434 WINTER SPRINGS, FLORIDA 32708-2799 Telephone (407) 327-1800 Ronald W. McLemore City Manager May 6, 2005 Eric Douglas 124 Rhoden Lane Winter Springs, FL 32708 Dear Mr. Douglas: This letter is in response to your letter received December 13, 2004 regarding your desire to purchase unit 124 Rhoden Lane from the City, and your request for discounts from the purchase price relative to certain payments you have made for rent, repairs, etc. As you know, the City took control of these units in a foreclosure action on November 4, 2004. Any disputes or non-binding agreements you had with the previous owner Wyman Fields Foundation are not recognized by the City. Additionally, the City has invested over $1 million dollars in this project, $909,000 of which the City was supposed to recoup from the sale of the units. Based upon our best estimates, the City will only receive an estimated $800,000 of that investment. Therefore, the City needs to do everything possible to minimize further losses in the project. However, since the project was intended to help low and moderate income people to own their own home we certainly want to be as fair as possible in selling the remaining two units, including 124 Rhoden Lane. U nit Price The latest appraisal performed on December 14,2004 established the fair market value of the unit at $86,500. A review appraisal was performed on January 31, 2005 to confirm the December 14, 2004 appraisal. This review concurs with the original appraisal. According to our appraiser, if a new appraisal was performed today, it could reflect a 3-5% increase in the appraised value. Therefore, the sale price for this property could be somewhere between $86,500 and $90,800. Based upon your representation that you attempted to lock in a purchase price months ago, I would recommend to the City Commission that the City maintain the $86,500 sales price if you agree to do everything possible to go to closing in June 2005. Rent You requested that your previous rent payment be discounted from the purchase price. Although, lease to own agreements are not uncommon, I am not aware of a formal lease to own agreement being in place between you and Wyman Fields Foundation. Additionally, when lease to own components are used, they usually include the following: Page I of3 a) Owner cost to carry the unit. b) An agreed upon savings amount that will be held in escrow until the unit is purchased. This is normally a small amount calculated to cover down payment costs at closing. Most saving components of the rental payment with which I am familiar, amount to $100 or at most $200 per month. I would be amiable to recommending the City Commission to provide you with a $100 per month credit against the purchase price for your previous rental payments. Based upon a June 2005 closing, that would equal $4,600. BOA Dues You are requesting a discount from the purchase price of Homeowner Association dues you have paid. HOA dues are normally reflected in the amount of the rental rate. Therefore, I cannot recommend discounting the purchase price by the amount of HOA dues you have paid. Air Conditioner Repairs You have requested a $611.83 discount from the purchase price of your unit. It is normally the burden of the property owner to maintain rental property in good condition except for damages caused by neglect of the renter. Since there is no evidence of the air conditioning repair being caused by negligent behavior on your part I would agree to provide you with a $612 discount for these repairs. Washin2 Machine and Drver You have requested a $517.26 discount from the purchase price of your unit for the cost of acquiring a washing machine and dryer for the unit you rent. You also allege that the Wyman Fields Foundation and the City was responsible for providing these appliances. Washing machines and dryers were not supplied to these units by the City or Wyman Fields. Under the City's contract with Wyman Fields the only appliances to be provided to the units were refrigerators and stoves. Therefore, I cannot recommend a discount from the purchase price of the unit for these appliances. Other Miscellaneous Expenses You noted several other expenses you incurred from improving the property which you had no documentation, and therefore were not requesting discounts for these items. These items included new carpet, baseboards, and lawn care. I am willing to recommend that the City Commission give you a $588 discount from the purchase price for replacing the carpet and baseboards. Page 2 of3 Ship Buv Down You state that you were once, but are not now eligible for the SHIP $25,000 Buy Down. I don't understand the rationale for this change in your status. However, I am willing to do everything I can do to help you qualify for State Bond Mortgage funds and the $25,000 SHIP Buy Down. However, I cannot guarantee you will qualify for these programs, nor can the City provide you with these benefits if you cannot qualify with the State. In summary this is the City's offer. I. Discounted Purchase Price Purchase Price Rent to Own Discount Air Conditioner Repair Discount Miscellaneous Repairs Discount Purchase Price $86,500 (4,600) (612) (588) $80,700 II. The City will do all that it can to help you qualify for Florida Housing Authority programs, including low interest State Bond Loans and SHIP Mortgage Buy Downs. III. You will agree to all limitations and conditions placed on other purchases of Moss Cove Town Homes. IV. You will agree to pay the normal buyers closing costs. I will be requesting the City Commission to consider this matter at its May 9, 2005 meeting. I will advise you of their decision. Sincerely, ~~~!:::r; City Manager /jp 050505 124 Rhoden Lane Purchase Letter Page 3 of3 Page 1 of 1 Michelle Greco From: Michelle Greco Sent: Thursday, May 05, 2005 6:08 PM To: Jan Palladino Subject: RE: 124 Rhoden Lane Jan- He just called me back. He said he is willing to pay $86,500. They no longer are asking for a price reduction for the washer and dryer. !bey do however want to know if the Driee could be reduced for some 9f the rent paid fr:.Q!!! June 2004 to Mav 2005 at $580 per month. If we could let him know as soon as possible he would greatly appreciate it. Thanks. Michelle Greco Director of Finance City of Winter Springs, Florida (407) 327-5960 PLEASE NOTE: Florida has a very broad public records law. Most written communications to or from City officials regarding City business are public records available to the public and media upon request. Your e-mail communications may be subject to public disclosure. -----Original Message----- From: Michelle Greco Sent: Thursday, May 05, 2005 6:01 PM To: Jan Palladino Subject: 124 Rhoden Lane Importance: High Mr. McLemore- I spoke to Eric Douglas tonight and he would really like to speak to Mr. McLemore regarding purchase of the unit he is renting at 124 Rhoden Lane. Can you please assist Mr. McLemore in completing his letter? Can you have him call Mr. Douglas on his cell phone at 469-644-9605 tomorrow regarding these issues? He has a job opportunity that he is considering but cannot make the move until he closes on his house. In addition, the interest rates keep increasing. Thank you. Michelle Greco Director of Finance City of Winter Springs, Florida (407) 327-5960 PLEASE NOTE: Florida has a very broad public records law. Most written communications to or from City officials regarding City business are public records available to the public and media upon request. Your e-mail communications may be subject to public disclosure. 5/5/2005 CITY OF WINTER SPRINGS, FLORIDA 1126 EAST STATE ROAD 434 WINTER SPRINGS, FLORIDA 32708-2799 Telephone (407) 327-1800 Ronald W. McLemore City Manager MEMORANDUM FROM: Mayor and Commission Ronald W. McLemore, City Manager ~ TO: DATE: May 9, 2005 SUBJ: Agenda Item 511 Building 3 lD.C. is requesting a variance from the 6-foot depth requirement for balconies on Building 3. In addition, J.D.C. is requesting to utilize the metal fabricated balcony shown in Image "2" in Rick Maxian's letter of May 4,2005, attached hereto. 6-Foot Variance: lD.C.'s architect claims a vanatlOn in the six-foot depth requirement IS needed to differentiate Building 3 from Building 2. We were always told that Building 3 would be a replica of Building 2. The only difference being that the front north-south elevation would be reversed. A case can be made for varying the features of the building just enough to keep it from looking like a cookie cutter regurgitation of Building 2. However, the question is this. Is reducing balconies needed to accomplish this differential? I did discuss an alternative that would allow for the following: 5-foot depth on Main Street. 4-foot depth on Tree Swallow Drive. 3-foot depth on Building Rear. Another alternative the Commission may desire would be to maintain the 6-foot code requirement on Main Street as follows: 6- foot on Main Street 4-foot on Tree Swallow Drive 3-foot Rear Building Balconv Style: I am amazed that J.D.C. would even consider so drastically changing the current balcony style. Their recommendation would change the EIFS style, used to date, to the metal grate fabricated style shown in Image "2" in Rick Maxian's letter. Victor Dover warned from the very beginning that developers would balk at the 6-foot EIFS style balcony due to its cost, and was emphatic in his challenge to the City not to wave this requirement. Staff agrees, and rejects any attempt to move to the full metal grate style balcony shown in Image "2". Faced with staff's rejection, the developer has suggested that they will eliminate the balconies altogether. There are three ways in which you can counter this argument. I. All representation by the developer of buildings on Main Street includes balconies on the buildings. 2. Balconies are already included on Building I and 2. 3. Based upon your Aesthetic Ordinance you have the authority to require a style and quality of development you desire for the Town Center, especially once a particular style has already been introduced. Recommendation: Variance from 6-foot depth. The Commission may want to allow a moderate variance to allow the architect to give the same variation from the look of Building "3" as compared to Building "2", as discussed above. 5-foot Main Street 4-foot Tree Swallow Drive 3-foot Rear Building 6- foot Main Street 4-foot tree Swallow Drive 3-foot Rear Building Balconv Style: The Commission should reject the metal grate balcony style shown in Image "2" of Rick Maxian's letter. The EIFS type balcony shown in Image 1,3,4, and 7 are appropriate for the Town Center. /jp Attachment: Rick Maxian Letter of May 4,2005. 050905 Memo JDe Variance on Balconies JI, ~ . RANDALL PAULSON a r G hit e G t s 4 May 2005 Mr. Ron McLemore City of Winter Springs 1126 State Road 434 Winter Springs, FL 32708 Re: Winter Springs Town Center - Building 3 Winter Springs, FL RPA Project No. 2004236.00 Ron, we are the Architect of Record for Winter Springs Town Center Buildings I and 2 along Tuskawilla Road and are currently in the process of designing Building 3. We are requesting a variance for the balcony depth. This variance will include two (2) balconies along Tuskawilla Road (East Elevation) located at the tower and two (2) balconies along Tree Swallow Drive (South Elevation) as described below. Presently. the balcony along Tuskawilla Road at the center of the building and at the entry to the first floor corridor adheres to the city ordinance. We have several reasons for this variance request which we have included in this letter. The description of the adjacent building design and their individual character is as follows. Building 2 has balconies that are a minimum of 6'-0" deep per city ordinance which fit into our design intent. These balconies are an important feature of the overall design. The balconies are elaborately designed to enhance the existing street setting and these balconies project a good distance away from the building. They have detailed railings and are built out of EIFS with a thickened balcony and brackets for support. Exterior lighting was added for signage and to wash the fa<;ade of the building. This design helps to make the building have its own personality. The personality helps to make a street space unique and successful and helps the tenants create a separate identity for themselves. Building I 's identity is expressed with its rotunda and sidewalk design along with the mixture of fa<;ade materials. Building 3's identity includes the tower detailing and sophisticated design. In comparison, building 3 is smaller than Building 2 and takes on a similar form enhancing the intersection. Our design intent for Building 3 is to create a variety of scales along the street and this variation is part of the balcony 85-A Mill Street, Suite 200 Roswell. Georgia 30075 t 770.650.7558 f 770.650.7559 www.randallpaulsun.com florida Re!l. #AA OOIl3J91J architecture/Interiors Ron McLemore 4 May 2005 Page 2 of 2 design. We wanted to create ins and outs along this facade. We created this not only with the building facade, but also with the awnings, balconies, light fixtures, and accent detailing. Our initial intent was to have the balconies shorter, but after talking with Ron and other city staff, we settled on balconies of 5'-0" along Tuskawilla Road and of 3'-0" along Tree Swallow Drive. We saw this as an important feature functionally on the building. The exception to this plan is the balcony at the entrance. We see this particular balcony as a true gathering space for the office tenants and kept it at 6'-0" deep. The variety of scales for Building 3 will be present in the design of the metal balconies and the fabric awnings. Our intent is to have the balcony design less as a feature and more to help the interaction between the street level and the second floor tenants. Our balcony design will have more of an open feel. and not appear bulky in size. Please refer to the attached image NO.2. These balconies cast a great shadow line on the building and vary as the day progresses. The balcony is a small grate system where voids are very small. The painted exposed steel helps create a simplified light balcony that does not distract from the overall design of the building and street. You can get a good feel of how the balconies and awnings react differently to the people down below as you refer to the other images. They create variety and interest along the facades and street, simply by the ins and outs of the fa<;ade in the design. Having different balcony designs as you move along the street will help to provide interest. Balconies are needed to enhance the interaction between the street level and the upper floors. As we continue down the street and across the street, these buildings will have other identifiable features which will help enhance the character and spatial qualities of the street. We thank you for your support on this variance and consideration for approval Sincerely, Randall~Paulson Ar Ric axian Project Coordinator [II 1 e s, lJICC>rporated End: Images of balcony types Copy to: Leigh Colyer M:\Project Docs\2004\2004236.00\Correspondence\Letters\RonMcLemore - 050405ttr.doc Image 1 ~' 1-- Image 4 Image 3 Image 5 Image 6 Image 7 From: Bonnie Anemone [mailto:Bonnie@finfreedom.com] Sent: fvlonday, fv1ay 09, 20054:58 Pf\1 To: P,ndrea Lorenzo-Iuaces Subject: Vote YES for sidewalks 011 Dyson Drive From: Connie Nadrowski [mailto:Conniei:Q:ifinfreedom.com] Sent: Monday, fY1ay 09, 2005 4:32 PfY1 To: 'aluaces@winterspringsfl.org' Cc: Larry Nadrowski Subject: Vote YES for sidewalks on Dyson Drive Our names are Larry and Connie Nadrowski, we have lived at 915 Dyson Drive since August 1979 26 yearsl We along With our Children Walk up and down Dyson Drive dally Sidewalks on Dyson Drive are long overdue Please vot~YES for sidewalks along Dysou Drive. Some of our neighbors are concerned sidewalks will not enhance their property values and worry about losing some of the trees along the curb. If possible perhaps the sidewalks could curve around some of the more mature trees like In other neighborhoods, gliving character to the look. We are also very interested in slowing the traffic on Dyson, using round a bouts Thank you Connie G. Nadrowski, CFP, ChFC, CEPA Visit our Website httpl/Vv'lNwfinfreedom.c:QDl 407 -330-1594 email connie@finfreedomcom 5/92005