SUBJECT/RECOMMENDATION:
Title
Provide direction to determine if the City will exercise its right of first refusal (ROFR) to purchase non-city owned condominium units described as PUG, PUA, PUC and RUB of that certain commercial condominium commonly identified as North Beach Plaza Condominium located at 490 Poinsettia Avenue, Clearwater, Florida (collectively, the Property).
Body
SUMMARY:
In accordance with Section 6.01 of that certain First Amended and Restated Agreement for the Development of Property entered into by and between the City and PV-Pelican Walk on September 1, 2015 (Agreement), the City has the right to match the $20,500,000.00 offer PV-Pelican has received from a third party to purchase the Property in the North Beach Plaza Condominium.
On June 22, 2021, the City received notice that PV-Pelican Walk, LLC, owner of the non-City owned North Beach Plaza condominium units, received a bona-fide offer to purchase the Property, and that the City may exercise its right of first refusal to purchase the Property under the Agreement by matching the purchase price, the deposit, and all other terms and conditions of the proposed sale. The City has 45 days from receipt of the Notice in which to exercise its right of first refusal by providing written notice to PV-Pelican Walk, LLC., along with the required deposit. The 45-day period ends on August 6, 2021. The closing would then be within 30 days thereafter. If the City does not send written notice of its option to exercise the ROFR, by August 6, 2021, the City’s right of first refusal will be waived and the sale to the perspective Purchaser will procced accordingly.
Right of First Refusal - key terms of the offer that must be matched:
1. Initial deposit of $250,000.00
2. Additional deposit (on or before the expiration of the Due Diligence Period) of $100,000.00