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Agenda 10-21-08 . ~~Y~T8~ East SideNWest S'ldeNSeaside Renaissance NOTICE OF SPECIAL eRA BOARD MEETING TlJESDAY, oc~rrOB:ER 21,2008 @ 6:15 PM City Commission Chambers 100 E. Boynton Beach Blvd. Boynton Beach, FL 33435 ~rpose/Subject of Meeting: Consideration of Exercising Right of First Refusal on Property located at 3675 S. Federal Highway, Boynton Beach, FL Jen)' Taylor, ChaiIman Lisa Bright, Executive Director 915 S. Federal Highway Boynton Beach, FL 33435 T:\AGENDAS, CONSENT AGENDAS, MONTHLY REPORTS\Completed Agenda Item Request FomlS by Mceting\FY 2008 . 2009 Board Meetings\Special Meeting I O.21.08\Public Notice of Special Meeting Flyer.doc :Sj. '::'~/;.: ,~ . I ; I : J,,( Ni\.J 1,<' ll\"l, C RA .:~ I, 1\ << f ~.~ _ East Side-West Side-Seaside Renaissance If any person decides to appeal any decision made by the Board with respect to any matter considered at this meeting, he or she will need a record of the proceedings, and that, for such purpose, he or she may need to ensure that a verbatim record of the proceedings is made, which record includes the testimon}' and evidence upon which the appeal is to be based. Special eRA Board Meeting Tuesday, October 21, 20086:15 PM City Commission Chambers 100 E. Boynton Beach Blvd Boynton Beach, FL 33435 I. Call to Order - Chairman Jeny Taylor II. Roll Call III. Agenda Approval: A. Additions, Deletions, Conections to the Agenda B. Adoption of Agenda IV. New Business: A. Consideration of Exercising Right of First Refusal on Property located at 3675 S. Federal Highway V. Adjournment Ii \ :j '\ ..> I" : ,K )YI"~I,,( ,)i~~,I'"C RA .: ~ t, /\ ( I:~ ! _ East Side-West Side-Seaside Renaissance eRA BOARD MEETING OF: October21,2008 I I Consent Agenda I I Old Business I X I New Business I I Legal Other SUBJECT: Consideration of Exercising Right of First Refusal on Property located at 3675 S. Federal Highway SUMMARY: In May 13, 2008, the CRA Board voted to purchase the State alcoholic beverage and City adult entertainment licenses from the business known as Platinum Gold. In exchange for the purchase of the licenses, the CRA placed a restrictive covenant on the property prohibiting future adult entertainment usages on the property. The CRA also has the Right of First Refusal on the real property. (See Attached) On Monday, October 14, 2008 the CRA received a copy of a contract on the property. (See Attached) Per the terms of the Restrictive Covenant and Right of First Refusal, the CRA must exercise its Right of First Refusal within 15 days of receipt of a bona fide third party offer. If the CRA so elects to exercise Its option to purchase, the election needs to be in writing accompanied by a contract fully executed by the CRA with identical terms and a deposit. The failure by the CRA to elect to exercise its Right of First Refusal within the 15 days and to satisfy the terms of the "covenant" will result in the Right of First Refusal terminating and be of no further force or effect. The Right of First Refusal does not apply to any transfer of the property through foreclosure or any similar transfer to the holder of any mortgage. In the event the CRA does not exercise its Right of First Refusal and the owner fails to consummate the transaction which was the subject of the option notice, then the eRA does have a Right of First Refusal to any subsequent proposed transfer of the property. The CRA has until October 27th, 2008 to elect to exercise its Right of First Refusal. FISCAL IMP ACT: $2,200,000 if the CRA elects to exercise its Right of First Refusal and purchase the property. There are no funds budgeted in the FY 08/09 budget. CRA PLAN, PROGRAM OR PROJECT: Federal Highway Corridor Redevelopment Plan RECOMMENDATIONS: Staff does not recommend exercising the Right of First Refusal due to the lack of funds to purchase the property. ~ C. &p} Lisa A. Bright Executive Director T:\AGENDAS, CONSENT AGENDAS, MONTHLY REPORTS\Completed Agenda Item Request Forms by Meeting\FY 2008 . 2009 Board Meetings\Special Meeting 10-21-08\First of Refusal Platinum Gold.doc 'Conmwrci,t1 Contract FLORIDA ASSOCIATION OF R[ALIORSu SCORE REAL TV INC "I I '1 ( \).' I ')/ C\~JII J 1 1. PURCHASE AND SALE: 2 HMO Ll.C.. 8 Rodda C4motrlUon OlStA Mr. 0.. Rock BBr t. all" 0' 2150 S. AWlUw filII. WNI PlllRI BOlIch. F/oII. ml6 3 agrees to buy and 4 HSG PROPERTIES. IHC.. 8 Rodda Cornomtlon of 3676 S. Federal Hlcrhwav. Bovnton Beach. Florida 33436 6 agree to sell the property described as: tl Street Address: 3875 S. Fedoral Highway. BnY.nton BOlich. Florida 33435 7 Legal Description: 8 4-46-43, 1:1.. Y 263.45 FT OF 5L Y 187.60 FT OF S 1/2 OF SW 1/4 OF NE 1/4 L YG N OF GUI..FSTREAM BLVD BET SR 5 I) & OLD DIXIE ("Buyer"), {"Se.lIl1~, 10 11 and the following Personal Property: 12 nla 13 14 15 (all collecllvely referred to as the "Property") on the terms and condlllons set forth below. The "effective Date" of this 16 Contract Is the date on which the last of tho Partlos signs the latest offer. Time Is of the essence In this Contract. Time 17 pertods of 5 days or less will be computed without Including Salurday, Sunday, or nallon811egal holidays and any lime period 18 ending on a Saturday. Sunday or national legal holiday will be extended until 6:00 p.m. of the next business day. $ $ $ $ $ 2,200.000.00 10.000.00 140,00lUJ!L 19 2. PURCHASEPRICF.: 20 (a) Deposit hold In escrow by Fronlf. lVe/nOOm & Blael<. P.L 7805 S.\V. BIh Court. Plan'DYon. florida 33324 21 (b) Additional deposit to be made wllhln 20 days from Effecllve Data 22 (c) lolal mortgages (as referenced In Paragraph:i) 23 (d) Olher: 24 (e) Balance to close, subject to adjustments and prorations, 25 to be made with cash, locally drawn cerlllied or cashier's check or wire transfer. $ 2.050,000.00 26 rF.1'i'l11\1!l f;{R?V rUfJl<lt8ItC8;-W1I.11I _ duy.. hUlIIl!rft!ctI~~ fled.. { Ap..Ilt<tlltm,. ..,Iud' J, 8",.., >illl, al'ti",...'bI "111'1'11..11, 27 af)lll~MkINlop6A)t4Il\lll'\8Ift!l In th&.ftl!Aa"l'li af" If % af lha Imraka88 ,r11l8 ill he 28 "8lMrii~tf is' a. " pt..fallar ,~(\'6~1o'" ~IIM.4.&~J..ll:.1I.&.. :, 11414 t",tf ..IlI... f:lllltf l...taMalrlllll 10111t,, MCMC.t1 29 n % I"" 1"'" VI ....I<lMb 1..1.....61 ,elM ..ullv "^,,,,,.d (] % "I v.lu1n"llu.. ..IH.~~ifl;;l;j.." ""I' .."I Iv 30 "811888d 3't- 1t flaAl 1,,1tI81 Mtal w"".(\("'lIIa",,1 lanna 88 faI181.'.81 ~ .:J" ~... ~U1V' nlll J.'Q,iUJ ~Ilg IllUltyaWgg Ultg 11,il)ulotl\iV pull", Gild ~I alllva., V^t'VIIQUO. DU1V1 nUl U'IIUl) t'luvlda all' Gild all \IIvdll, .", tlmploymlJlIl, "IISlIetS. allo oilier ''''UIIIIII''UII 'Ul:U.UIIHUIY requlreu uy III1Y lelluer. DuyerWlII lIUUlY cUller IllllllUUlilltllY UPUII at vbl611.1,,~ nli"m::".~ v, b6111~ ,..J",..I"d b, a lo"do,. U 8..7.... an... dllll;t.",t o:l(fu,l. (.tUb Iv \lbldl" a ...lIIt... ..A...II"II."....I..IlIiI" '-'6, daro i,UIII !ltu"UVG I>alv \ I'IIICIlI\~llIy ~ulk,d I. DUJvl Ina1 \,G1I\A'l1.1,1tJ (,uJlua""by 1I1vlllU IIIVIII..,' Ilu,II;,V\V 3vllvI Lv alia ~uJv, oda,.,uolli'O; nlll b... ,vlu...ad lv !lulU. III G\I\Alldall\'v nUl. 'a.au.alll. b. . 39 BLl)'er (e~f ~ and Seller ( ) ( ) acknowledgereoelpl of a copy of this page. which Is Page 1 of 6 Pagas. CC.UH 7 florida ssocIellonor esllord.AI r!gllIs f8S81V8d.lIoensed to Alia Star SoIIw8re. User RegII 03CMOGV3E8330Y27-1021 Software and Added FormattlngCopyrlght2004Alta Star Software, Inc. All RIghts Resen/ed. (305)279-8090 ALTA ~It.~ 40 4. TITLE: Seller has the legal capacity to and will convey marketable tlUe to the Property by III statutolY wananty deed 41 0 other , free of liens, easements and encumbrances of r&cOrd or known to 42 Seller, but subject to property taxes for the year of closing; covenants, restrictions and public utility easements of record; and 43 Olst any other matters to whIch titre will be subject) R//Jhf Of Firs' ReIIaaI Faa offhll BtvJnmn BMeb CGmmunlfvRed8lllll0Dm8ll' A'18'Icv : oC4 provided there eldsts at closing no violation of the fore olng and none of them prevents Buyer'8 Intended use of the Property 45 as 46 47 48 49 50 61 52 53 54 65 (8) Evidence of Title: Seller wlll, at (check one) D Seller's \il( Buyer's expense and within lJ days o from Effective Date \il( prior to Closing Date D from date Buyer meets or waives financing C(mUngency In Pa~raph 3, deliver to Buyer(check one) . PlI. a title Insurance commitment by a Florida licensed title Insurer and, upon Buyer recording the deed, an owners p'ollcy In the amount of the purchase price for fee simple title subject only to exceptions stated above. o an abstract of title, prepared or brought current by an existing abstract finn or certified as correct by an existing flnn. However,lf such an abstract Is not available to Seller, then a prior owner's title policy acceptable to the proposed Insurer as a base for relssuance of coverage. The prior policy will Include ooples of ell polley exceptions and an updale In a format acceptable to Buyerfrom the policy effective date and certified to auyeror Buyer's closing agent together with copies of all documents recited In the prior pOlicy and In the update. (b) Title examInation: Buyerwlll, within 15 days from receipt of the evidence oHlUe deliver written notice to Seller of title defects. Tille wiD be deemed acceplable to Buyer If (1) Buyerfetls to deliver proper notice of defects or (2) Buyer dellven> properwrltten notice and Seller cures the defects within 10 days from receipt of the noUce C'Curatlve Periodfl). If the defects are cured wlthln the Curative Period, closing will occur within 10 days from receipt by Buyer of notice of such curing. Seller may elee! not to cure defects If Seller reasonably believes any defect cannot be cured within the CuraUve Period. If the defects are nol cured within the Curative Pertod, Buyerwlll have 10 days from receipt of notice of Seller's Inability to cure the defects to elect whether to terminate this Contract or accept title subject to existing defects and close the transaction without reduction In purchase price. The party who pays for the evidence of title will also pay related tille service fees Including title and abstract charges and tille examination. (c) Survey: (check applicable provisions below) J:il( Seller will, within 1L- days from Effective Date, deliver to Buyercoples of prior surveys, plans, specifications, and engineering documents, If any, and the following documents relevant to this transaction: prepared for Seller or In Seller's possession, which show all currently ex[sllC1JJ structures. Ia Buyerwlll, at D Seller's Ii Buyer's expense and within the time period allowed to deliver Bnd examine title evidence, obtain a current certified survey ofthe Property from a registered BlJ[Veyor.1f the survey reveals encroachmenls on the Property or that the Improvements encroach on the lands of another, U Buyer will accept the Property with exisling encroachments lit such encroachments will constitute a title defect to be cured within the Curative Period. (d) Ingress and Egress: Seller warrants that the Property presently has Ingress and egress. (e) Possession: Sellerwlll deliver possession and keys for all locks and alanns to Buyerat closing, 56 57 56 69 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 76 76 5. CLOSING DATE AND PROCEDURE: This transactlonwlll be closed In Palm Baath County, 77 Florida on or before Novamlw: 14th 20'5 or within _ days from Effective Date ("Closing Date"), unless 78 otherwise extended herein. ~ Seller Buyerwill designate the closIng agenl Boyer and Seller will, within 25 79 days from Effective Date, deliver to Escrow Agent signed Instructions which provide for closing procedure. If an Institutional 80 lender Is providing purchase funds, lender requirements as to place, time of day, and closing procedures will oontrol over any 81 contralY provisions In this Contract. 82 (a) Costs: Buyerwlll pay taxes and recording fees on noles, mortgages and financing statements and recording fees for the 8a deed. Seller will pay taxes on the deed and recording fees for documents needed to cure title defects. If Seller Is obligated 84 to discharge any encumbrance at or prior to closing and falls to do so. Buyer may use purchase proceeds to satisfy the 06 encumbrances, 88 (b) Documents: Seller will provide the deed, bill of sale, mechanic's lien affidavit, assignments of leases, updated rent roll, 87 tenant and lender estoppel letters, asslgnmenls of permits and licenses, corrective Instruments and letten> notifying tenants 88 of the change In ownership/rental agent. If any tenant refuses to execute an estoppeiletter, Seller will certify that lnfonnallon 69 regarding the tenant's lease Is correct. If Seller is a coJporatlon, Seller will deliver a resolullon of Its Board of Dlrecton> 90 authorizing the sale and detivelY of the deed and certlficetlon by the corporate Secretary certifying the resolullon and setting 91 forth facts showIng the oonveyanceconforms with the requirements of local law. SeUerwill transfer securUy deposits to 92 Buyer. Buyerwlll provide the closing statement, mortgages and notes, security agreements and financlng statements. 93 Buye ~.) (_ .) and Seller ( ) ( _l acknowledger~lpt ofa copyaf this page, which Is Page2 of (; Pages. CC.2~;..iocIaOonor ReaIIot$$.AI rlgI\18 roN$Md, UcensedtoA!ta St8rSoltlvll'e. Software and Added Fonnattlng Copyright 2004Alta Star Softwate,lnc. All Rights Reserved. (305) 279-8898 (c) Taxes, Assessments, and Prorations: The following items will be made current and prorated lit as of Closing Date 0 as of : real eslate taxes, bond and assessment payments assumed by Buyer, Interest, rents, assoclatlon dues,lnsurance premiums acceptable to Buyer, operational expenses and n1a . If the amouoloftaxesand assessments for the current year cannot be ascartalned, rates for the previous year will be used with due allowance being made for Improvements and exemptions. Seller Is aware of the following assessments affecting or potentially affecting the Property: none . Buyerwlll be responsible for all assessments of any kind which become due and owing 00 or after Effective Date, unless the Improvement Is substantially completed as of Closing Date, In which case Seller will be obligated to pay the entire assessment. (d) FIRPTA Tax Withholding: The Foreign Investmentln Real Property Act f'FIRPTA") requires Buyer to withhold at closing a portion ofthe purchase proceeds for remissIon to the [ntemal Revenue Service ("',R.S.") If Seller Is a "foreign person" as defined by the Internal Revenue Code. The parties agree to comply with the provisions of FIRPTA and to provide, at or prior to closing, appropriate documentation to establish any applicable exemption from the withholding requlrement.lf withholding Is required and Buyer does not have cash sufficient at closing to meet the withholding requirement, Seller will provide the necessary funds and Buyerwlll provide proof to Seller that such funds were properly remitted to the I.R.S. 6. ESCROW: Buyer and Seller authorize fJRRon Yeager Garson Whita & Linca, P.A. Telephone: 681-471-3613 Facsimile: liB1-fiB6-fU42 Address: MM/dlll/II''''' Nllfl<>II.' Ran" TnlJl~ f8UlPAlm AIm"b "'''fL. anll/"""n1 HuH.. ,MIl W PtoIm BM"" Flt"fd" !tMM to act as "Escrow Agenr to receive funds and other Items and, subject to clel.\[!nce, dIsburse them In accordance with the terms of this Contrac!. Escrow Agent will deposit all funds received In /lll a non-Interest bearing escrow account D an Interest bearing esgow account with I merest accruing to with Interest disbursed (cl1eek one) U at closing [J at Intervals, If Escrow Agent receives conlllctlng demands or has a good faith doubt as to Escrow Agent's duties or liabilities under this Contract, he/she may (a) hold the subject matter of the escrow until the parties mutually agree to Its disbursement or until Issuance of a court order or decision of arbitrator determining the parties' rights regarding the escrow or (b) deposit the SUbject matter of the escrow with the clerk of the circuli court having Jurisdiction over the dispute. Upon notifying the parties of such aclion, Escrow Agent will be released from al1liablllty except for the duty to account for Items previously delivered out of escrow. If a licensed real estate broker, Escrow Agent will comply with applicable provisions of Chapter 475, Florida Statutes. In any suit or arbitration in which Escrow Agent Is made a party because of acting as agent hereunder or Interpleads the subject matter of the escrow, Escrow Agent will recover reasonable attorneys' fees and costs at all levels, with such fees and costs to be paid from the escrowed funds or equivalent and charged and awarded as court or other costs In favor of the prevailing party. The parties agree thai Escrow Agent will not be liable to any person for misdelivery to Buyeror Seller of escrowed Ilems, unless the misdelivery Is due to Escrow Agenrs willful breach ofthls Contractor gross negligence. 128 7. PROPERTY CONDITION: Seller will deliver the Property to Buyer at the lime agreed In lis present "as Is" condition, 12$ ordinary wear and tear excepted. and will malnlaln the landscaping and grounds In a comparable condition. Seller makes no 130 warranlies other than marketability of lItle. By accepting the Property "as Is," Buyer waives all claims against Seller for any 131 defects In the property. (Check (a) or (b)) ri (a) As Is: Buyer has Inspected the Property or waives any rtght to inspect and accepts the Property In Its Uas Is. condition. ' 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 .127 132 133 134 135 136 131 138 139 140 141 142 143 144 145 146 147 148 149 150 161 152 153 154 155 D (b) Due Diligence Period: Buyerwlll, at Buyer's expense and within days from Effective Date C'Due Diligence Periodj, determine whether the Property Is suitable, In Buyer's sole and absolute discretion, fOI Buyer's Intended use and development of the Property as speclfted In Paragraph 4. During the Due Diligence Period, Buyer may conduct any tests, analyses, surveys and Investigations ("lnspectlonsU) whlcl1 Buyer deems necessary to determine to Buyer'S sallsfaction the Property's engineering, archlteclural, environmental properties: zoning and zoning restrictions; flood zone designation and restrictions; subdivision regulations; soli and grade; availability of access to public roads, water, and other uUlllles; consistency with local, slate and regional growth management and comprehensive land use plans; availability of permits, government approvals and licenses; compliance with American with Dlsabllllles Act: absence of asbestos, soli and ground water contamination; and other Inspections that Buyer deems appropriate to determine the sultablllty of the Property for Buyer's Intended use and development. Buyer shall deliver written noUce to SeUer prior to the expiration of the Due Diligence Period of Buyer's determination of whether or not the Property Is acceptable. Buyer's failure to comply with this notice requirement shall constitute acceptance of the Property In Us present "as Is" condition. Seller grants to Buyer, Its agents, contractors and assigns, the right to enter the Property at any time during the Due Diligence Period for the purpose of conducting Inspections; provided, however, that Buyer, its agents, contractors and assigns enter the Properly and conduct InspecDons aUhelr own risk. Buyersl1aH Indemnify and hold Seller harmless from losses, damages, costs, claims and expenses of any nature, IncludIng attorneys' fees at all levels, and from Dablllty to any person, arising from the conduct of any and all Inspections or any work authorized by Buyer. Buyer Will not engage In any acUvlty that could result In a mechanic's lien being filed agalnstihe Property without Seller's prior written consent. In the event this transaction does not close, (1) Buyer shall repair all damages to the Property resulting from the Inspections and return the Property to the condition It was In prior to conduct of the Inspections, end (2) Buyershall, at Buyer's expense, release to Seller all reports and other work generated as a resull of the Inspections. Should Buyer deliver timely notice that the Property is not acceptable, Seller agrees that Buyer's deposit shall be Immediately returned to Buyerand the Contract terminated. 156 BUyer~ ( ) and Seller ( ) ( ) acknowledgerecelpl of a copy of this page, which is Page 3 of 6 Pages. cc-2o.~lS$OCl8'onot ReallOl1l$.AI rights reseMld.LIc8nse<1to AlIa St8r&lftWare. Software and Added Formatting CopyrIght 2004 Alta Star Software. Inc. All Rights Reserved. (305) 279-8898 157 (C) Walk-through Inspection: Buyer may, on the day prior to closing or any other time mutually agreeable to the parties, 168 conduct a final "walk-through" inspecllon of the Properly to determine compliance with thIs paragraph and to ensure that all 159 Property Is on the premises. 160 (d) Dlsclosurea: 161 1. Radon Gas: Radon is a naturally occurring radioactIve gas that, when It has accumulated In a building In sufficient 162 quantities may present health risks to persons who are exposed to It over time. Levels of radon that exceed federal and 163 stale guidelines have been found In buildings In Florida. Additlonallnfonnatlon regarding radon and radon testing may be 1&4 obtaIned from your county public heallh unit. 165 2. Energy Efficlency:Buyer may have determined the energy efficiency rating of the building, If any Is located on tile 166 Real Property. 161 8.0PERATIONOFPROPERlYDURINGCONTRACTPERIOD: Seller will continue to operate the Property and any 168 business conducted on the Property In the manner operated prior to Contract and will take no action that would adversely 169 Impact the Property, tenants, lenders or business, If any. Any chan~, such as renting vacant spa~ that materlally affect the 170 Property or Buyer's Intended use of the Property will be pennltted ~ only wilh Buyer's consent u wlthoul Buyer's 171 consent. 172 9. RETURN OF DEPOSIT: Unless otherwise speclned In the Contract, In the event any condiUon of this Contract Is not met 173 and Buyerhas timely given any required notice regarding the condition having not been met, Buyer's deposit will be returned 174 In accordance with applicable Florlda laws and regutaUons. 176 10. DEFAULT: 176 (a) In the ellent the sale Is not closed due to any default or failure on the part of Seller other than failure to make the tlUe m marketable afterdlllgent effort, Buyer may either (1) recehte a refund of Buyer's deposit(s} or (2) seek specific us perfonnance. If Buyer elects a deposit refund, Seller will be liable to Broker for the full amount of the brOkerage fee. llll (b) In the event the sale Is not closed due to any default or failure on the part of Buyer, Sener may either (1) retain all 160 deposil(S) paid or agreed to be paid by Buyer as agreed upon liquidated damages, consideration for the execuUon of this 161 Contract, and In full settlement of any claims, upon which this Contlllctwill tenninateor (2) seek specific perfonnance, If 182 Seller retaIns the deposit, Seller will pay the Listing and Cooperating Brokers named In Paragraph 12 fifty percent of all 183 forfeited deposits retaIned by Seller (to be spilt equally among the Brokers) up to the full amount of the brokerage fee. 184 11. ATTORNEY'S FEES AND COSTS: In any claim or controversy arising out ()f or relating to this Contract, the prevailing 166 party, which for purposes ofthls provisIon wllllnclude Buyer, Seller and Broker, win be awarded reasonable attomeys' fees, 186 costs and expenses. 187 12. BROKERS: NellherBuyernorSeller has utilized the services of, or for any other reason owes compensation to, a 168 licensed real eslate Broker other than: 18$ 190 1111 192 193 (a) Listing_Broker: Alan Koch Bmker of Score Real(y Inc of 6075 Magnolia Bav Circle. Palm Bosch Gardtms FI 33418 whO Is 0 an agent of o a transaction broker a a nonrepresenlatlve and who will be compensated by iii: Seller 0 Buyer 0 both parties pursuantto 0 a listing agreement ~ other (specify): four percent of sailing price 194 (b) Cooperating Broker: nlR 195 who Is 0 an agent of 19$ 0 a transaction broker 0 J nonrepre~ntatlve and who wlll be 197 compensated by 0 Buyer U Seller 0 both parties pursuant to 0 an MLS or olher offer of compensation to a 198 coopemling broker 0 other (specify) 199 (collectively referred to 8S "Broker") In connection with any ael relating to the Property, Including but not limited to Inquiries, 200 Introductions, consultations and negotiations resulting In thIs transaction. Seller and Buyer agree to Indemnify and hold Broker 201 hannless from and against losses, damages, costs and expenses of any kind, including reasonable attorneys' fees at ati 202 levels, and from liability to any person, eoslng from (1) compensation claimed which Is Inconsistent with the representation In 203 this Paragraph. (2) enforcement action to collect a brokerage fee pursuant to Paragraph 10. (3) any duly accepted by Broker 204 at the request of Buyer or Seller, which duty Is beyond the scope of services regutated by Chapter 475, F.S., as amended, or 266 (4) recommendaUons of or selVlees provided and expenses Incurred by any third party whom Broker refers, recommends or 206 retains for or on behalf of Buyeror Seller, 207 13. ASSIGNMlILITY;PERSONS BOUND: ThIs Conlract may be assigned to a related entity, and otherwise 0 Is not 208 asslgneble ~ Is assignable. The terms "Buyer," .Sellel" and "Broker" may be singular or plural. This Contract Is binding 209 upon Buyer, Seller end their heirs, personal representatives, successors and assigns (if asslgnmentis permitted). t 210 BUY81 ~ ) and Seller <-.- ) ( _) acknowtedgerecelptof a copy of Ihls page. which Is Page" of 6 Pages. CC-20 1 iA"uod8lJonofRealtanPl\).AR rlgh1& rllSlelY8Cf.UCllnsedlo AltaSlarSoftware, Software and Added Formatting Copyrlght2004 Alta Star Software, Inc. All Rights Reserv6d. (306) 279-8898 ,~ ,- ........ 2ff 212 213 214 216 216 217 218 219 220 221 222 223 224 226 226 227 228 229 230 231 232 233 234 235 238 237 238 239 240 241 :M2 243 244 245 246 247 246 249 260 251 252 263 254 255 256 257 256 259 280 261 262 263 264 265 266 267 268 269 270 271 272 273 2H -~ i 14. OPTIONAL CLAUSES: (Check n 8~Of the following clll1,l$9S are lIppllcable 81rre allacheb 8S an addendum to this Conlract): o Arbitration SellerWarranly: 0 ExlstlngMortgage o Section 1031 Exchange g Coastal ConstruGllon Contro/lIne 0 Other ' D Property Inspection and RepaIr Flood Area Hazard Zone 0 Other o Seller Representations 0 Seller Financing Other 16. MISCELLANEOUS: The terms of this Contract constitute the entire agreement between Buyer and Seller. Modifications of thIs Contract wi" not be binding unless In writing, signed and delivered by the party to be bound. Signatures. Initials, documents referenced In this Contract, counterparts and written modifications communicated electronically or on paper will be acceptable for all purposes, Including delivery, and will be bindIng. Handwritten or typewritten terms Inserted In or attached to fhls Contract prevail ovar preprinted lerms. If any provision of this Contract Is or becomeslnvaUd or unenforceable, ell remaIning provIsions will continue to be fully effective. ThIs Contract will be construed under Florida law and wlU not be recorded In any public records. Delivery of any wrftten notice to any party's agent will be deemed dellv9/y to that party. THIS 1$ INTENDED TO BE A LEGALLY BINDING CONTRACT. IF NOT FULLY UNDERSTOOD, SEEK THE ADViCe OF AN ATTORNEY PRIOR TO SIGNING. BROKER ADVISES BUYER AND SELLER TO VERIFY ALL FACTS AND REPRESENTATIONSTHAT ARE IMPORTANT TO THEM AND TO CONSULT AN APPROPRIATEPROFESSIONALFOR LEGAL ADVICE (FOR EXAMPLE, INTERPRETING CONTRACTS. DETERMINiNG THE. EFFECT OF LAWS ON THE PROPERTY AND TRANSACTION, STATUS OF TITLE, FOREIGN INVESTOR REPORTING REQUIREMENTS, ETC.) AND FOR TAX, PROPERTY CONDITION, ENVIRONMENTAL AND OTHER SPECIALIZED ADVICE. BUYER ACKNOWLEDGES THAT BROKER DOES NOT OCCupy THE PROPERTY AND THAT All REPRESENTATIONS {ORAL, WRllTEN OR OTHERWISE} BY BROKER ARE BASED ON SELLER REPRESENTATIONS OR PUBLIC RECORDS UNLESS BROKER INDICATES PERSONAL VERIFICA TIONOF THE REPRESENTATION. BUYER AGREES TO RELY SOLELY ON SELLER. PROFESSIONAL INSPECTORS AND GOVERNMENTAL AGENCIES FOR VERIFICATION OF THE PROPERTY CONOlnON, SQUARE FOOTAGE AND FACTS THAT MATERIALLY AFFECT. PROPERTY VALUE. DEPOSlt.RECEIPT: Ppposltof$10.000.00 by ":!!r J L ~ I- checl< [J other by Signature of Escrow Agent OFFER: Buyeroffers 10 purchase the Property on the above terms and conditions. Unless egeplance Is sIgned by Seller and a Signed copy delivered to Suyeror Buyet'&agent no later than fj CJ a.m. ~ p.m. on November 13th 2008 " Buyer may revoke this offer and receive a refund of all deposits. NMG LLC., a Florida Corporatfon D\B\A Mr. G's ~ock Bar & Grill of 2650 S. Mflffary Trail, West Palm Beach, Florida 33416. Date: 10" /3 .0 g BUYER' Tille:' ff.'f..f //) E#f Address: received (m , 0 ~/O '0 0' / , Tax 10 No: {., Facsimile: S t I . <.1'''3 'I ..2. J... f:( '7 Date: BUYER: Tax 10 No: Title: Address: ACCEPTANCE: Seiter accepts Buyer's offer and agrees to sell the Property on the above tenns and conditions ( a subject to the attached counteroffer). NSG PROPERTIES, INC., a Florida Corporation of 3676 S. Federal Highway. Boynton Besch, Florida 33435 Date: SELLeR: Tax 10 No: Telephone: Facsimile: Tille: Address: Telephone: Facsimile: Date: SELleR: Tax ID No: Tille: Telephone: Facsimile: Address: !~Y"~ ( ) and Seller ( ) ( ) acknowledge receIpt of 8 copy of This page, which is Page 6 of 6 Pegos, '"'' ~ of R~.nd IocIll BoardfAt$OdlllonOf RoaIIol1l make no repfllsenlllliOlule to t"el. V8/kIIly Of' ede<juacyd any pro~t!oIl or WS fllfllllll any sjllldllc vllnlllldlon. Ttk s1andlll'lized fOlDl sboWl not be used In ClOllI$ll.x V~ Of wlth extensive riders Of edditions. TbIs fann Is llVllllsbla for use by the en\Ite real eSlate Induslty and Is not Intended to Idantlfy the user aa a Realtor. Reellor Ie II Ieglstered cdl~membe/$hlpfll8lk that may be u* onr by real e$l8le llC4_who_ membeR Of 1118 NllUon8I A&SOCIation of ReaIlolslnd who subscribe to lIa Code d EOIIcs. The COjl'fltghllawsol the Unlled States (17 U_8. Cochl)fOlbId the una\4hOriledrep!Oduetiooof blankfOlllll by Iny meaM Induditl9tacsloYleor oomputlllizedfocms. cc.2C 1997 FtOlklIAslocl8llon of Realtol1l4l>.AII11ghls rel6rved.lJc!nsed 10 Mil SI.r Soltw1ll8. Software and Added Fonnattlng Copynght2004Alla Star SOltware,lnc. All Rl.ohts Reserved. (305) 279-3898 Igfl~m~m~ggMUmlmHmIWgmlan CF'N 20080287899 OR BK 22788 PG 1102 RECORDED 08/01/2008 13:26:27 Palm Beach County, Florida Sharon R. Book,CLERK & COKPTROLLER Pgs 1102 - 1108; (7pgs) PREPARED BViRBTURN TO: Ryan P. Aiello, Esquire Nason, Veager, Gerson, White & Lioce, P .A. 1645 Palm Beach Lakes Boulevard Suite 1200 West Palm Beach, Florida 33401 RESTRICTIVE COVENANT AND RIGHT OF FIRST REFUSAL This Restrictive Covenant and Right of First, Refusal (this "Covenant") by NSG PROPERTIES, INC., a Florida corporation, its successors and assigns (herein collectively called "Owner"), having an address of 3675 S. Federal Highway, Boynton Beach, Florida 33435, for the benefit of the Boynton Beach Community Redevelopment Agency, a public body, corporate and politic, duly created and operated pursuant to Chapter 163, Florida Statutes, its successors and/or assigns, (herein collectively called "QBA") having an address of 915 S. Federal Highway, Boynton Beach, Florida 33435. RECITALS: A.' Owner holds fee simple title to that certain parcel of real property situate, lying and being in Palm Beach County, Florida and more particularly described on Exhibit "A" (the "Propertyn) attached hereto and made a part hereof. B. It is necessary to subject the Property to the restrictions set forth herein as an inducement for the eRA to purchase that certain State of Florida quota alcoholic beverage license #60-00711. and that certain City of Boynton Beach Adult Entertainment License #10249 (collectively, the "Assets") from Southern Entertainment Company of Florida, Inc., a Florida corporation ("Southern"), a related entity of Owner. C. In consideration of the purchase price, Owner agrees to subject the Property to the covenants and restrictions set forth in the Covenant for the benefit of the eRA. D. GOREN, CHEROF, DOODY & EZROL. P.A., escrow agent for the CRA's . purchase of the Assets (the "Escrow Agent"), shall cause to have this Covenant recorded in the Public Records of Palm Beach County. Florida, on the date hereof and comtemporaneously with disbursement of funds to Southern for the purchase of the Assets. NOW THEREFORE, in consideration of the sum ofTen Dollars ($10.00) and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Owner~ for itself, and its respective successors and assigns, agrees that the Property shall be held, transferredt soldt encumbered, conveyed, used and occupied, subject to the following covenants and restrictions: 1. Recitals. The foregoing recitals are true and conect and incorporated herein by this reference. 2. Restrictive Covenant. NSG does hereby agree, covenant, and warrant that the Property shan not be used in any fashion as an adult entertainment establishment as defined in the City of Boynton Beach Code of Ordinances. In the event the Property is utilized to facilitate an establishment of any commercial na~e which by definition of the Boynton Beach Code of Ordinances constitutes an adult entertainment establishment as of the date of this covenant, or as the Code may be amended :from time to time, then the CRA shall be entitled to file and obtain a tempprary and pennanent injunction without notice. 3. Ri2'ht of First Refusal. Owner hereby grants to the eRA a one time right of first refusal to purchase the Property (the "Rie:ht of First Refusal") on the following tenus and conditions: (a) Upon Owner's receipt of a bona fide third party offer (the "Offer") to purchase the Property, Owner shall provide a copy of the Offer 10 the eRA. The Offer shan be in the fonn of a written purchase and sale agreement in fonn and substance such that, but for the Right of First Refusal) Owner would otherwise execute such Offer without further modification to such Offer. The CRA shall have a period of fifteen (15) consecutive calendar days (the "Option PerlodlJ) to determine whether or not the eRA wishes to exercise the Right of First Refusal and enter into a purchase and sale agreement to purchase the Property on the identical terms and conditions provided for in the Offer. (b) Should the CRA elect to exercise its Right of First Refusal, the O\vner must receive written notice from the CRA (the "Option Notice") within the Option Period in the form- of (i) an affirmative written statement by the eRA of the CRA's election to exercise the Right of First Refusal) (ii) an executed purchase and sale agreement in the identical fonu as the Offer, except that the name of the purchaser or buyer thereunder shall be the eRA and (Hi) evidence that any earnest money deposit required under the Offer has been made, in cleared U.S. funds, to an escrow agent which shall be an agent for a nationally recognized title insurance company. Failure by the eRA to timely provide the Option Notice shall be deemed to be the CRA's election not to exercise its Right of First Refusal, and the Right of First Refusal shall automatically tenninate and be of no further force or effect, without the necessity of any further writing to evidence such termination being recorded in the Public Records of Palm Beach County) Florida. In the event that the eRA exercises the Right of First Refusal, then the CRA shall purchase the Property on essentially the same terms and conditions as the Offer, except that the CRA shall be afforded the same number of calendar days as provid~d for in the Offer for matter such as due diligence/inspection periods, title and survey review, and closing as contained in the Offer, the determination of such time periods commencing on the date of the eRA's exercise of the Right of First Refusal. 2 (c) The Right of First Refusal shall not apply to any transfer of the Property through foreclosure, deed in lieu of foreclosure, or other similar transfer to the holder of any mortgage on the Property. Notwithliltanding anything to. the contrary contained herein, the CRA shall not have the right to exercise its Right of First Refusal in the event Owner sells the Property to any entity which is also owned or controlled in whole or in part by some or all of the members of Owner where such members continue to own at least 50% of such membership interests in the purchasing entity (the "Affiliate"). (d) THE CRA ACKNOWLEDGES AND AGREES TIIAT TI1vfE IS OF THE ESSENCE FOR THE CRNS EXERCISE OF ANY REFUSAL RIGHT. EXCEPT FOR PROVIDING THE OPTION NOTICE TO THE CRA, OWNER IS NOT OBLIGATED TO NOTIFY THE CRA OF ANY UPCOMING NEED TO TIMELY EXERCISE THE RIGHT OF FIRST REFUSAL. TIm CRA FURTHER ACKNOWLEDGES THAT TIIE RIGHT OF FIRST REFUSAL IS A ONE TIME RIGHT OF FIRST REFUSAL AND NOT A CONTINUING RIGHT OF FIRST REFUSAL OR OtHERWISE SUBJECT TO REm-STATEMENT; PROVIDED, HOWEVER, THAT IN THE EVENT THAT OWNER DELIVERS THE OPTION NOTICE TO WE eRA AND THE CRA DECLINES TO EXERCISE ITS RIGHT OF FIRST REFUSAL, AND OWNER FAILS TO CONSUMMATE THE TRANSACTION WHICH WAS THE SUBJECT OF SUCH OPTION NOTICE, THEN THE CRA'S RIGHT OF FIRST REFUSAL SHALL BE EFFECTIVE AS ,TO ANY SUBSEQUENT PROPOSED TRANSFER OF THE PROPERTY BY OWNER. 4. Notices, All notices, statements, demands or other communications (ltnotice(s)") to be given under or pursuant to this Covenant, or which a party hereto may wish to give, must be in writing, addressed to the other party at its address as provided below, and delivered in person, by facsimile transmission or by certified or registered mail~ return receipt requested and postage prepaid. Such notice will be deemed to have been delivered on the date of hand delivery, on the date of delivery by facsimile transmission (unless such delivery is made on a non-business day or on any day after 5 p.m., in which event delivery will be deemed to have been made on the following business day) or on the day of delivery when mailed as aforesaid (which would also be the day receipt is rejected), as the case may be. Any party may from time to time change its address or facsimile number for receipt of notices by sending a notice to the other parties specifYing such. new infonnation. To Owner: NSG Properties, Inc. Attn: No.onan S. Goddard 3675 S. Federal Highway Boynton Beach, Florida 33435 to CRA: Boynton Beach Community Redevelopment Agency Attn: Lisa A. Bright~ Executive Director 915 S. Federal Highway 3 Boynton Beach, Florida 33435 (561) 737-3258 (facsimile) 5. Miscellaneous. (a) This Covenant will be construed in accordance with the laws of the State of Florida. This Covenant will not be construed more strongly against either party regardless of which party is responsible for its preparation. (b) Time is of the essence. Any time periods provided for herein which ends on a Saturday, Sunday or a.legal holiday will extend to 5:00 p.m. of the next business day. (c). In connection with any litigation arising out of this Covenant, including, without limitation, aU trial, appellate and post-judgment proceedings, the prevailing party will be entitled to recover reasonable attorneys' fees and costs. (d) This Covenant will ~ind and accrue to the benefit ofthe parties hereto and their heirs, executors, administrators, assigns and successors in interest and shall be a covenant running with the land. If any portion of this Covenant is . detennined to be unlawful, the remaining portions will remain in full force and effect as if such unlawful portiones) did not appear herein. (e) 'This Covenant may be executed in any number of counterparts and by different parties to this Covenant on separate counterparts, each of which, when so executed, will be deemed an original, but all such counterparts will constitute one and the same Covenant, {EXBCUTIONS ON FOLLOWING PAGBS] 4 IN WITNESS WHERBOF~ the parties have caused this Covenant to be executed and delivered on the date first written above. WllNESSES: OWNER: i (CORPORATE SEAL) COUNTY OF PALM BEACH ) ) ss: ) STATE OF FLORIDA ~'HeUzANNrc:~EEG..m"\'i _ eonm_\ ",...~~~;h Print Notary Name . ........... ........ .-...--' NOTARY PUBLIC State of Florida at Large My Commission Expires: ... H:\86S9\\ 9B76\DResl:rl~t[yeCoYcnanlAgreemenllU'Afrpa 5 CONSENT AND JOINDER Boynton Beach Community Redevelopment Agency~ a public body, corporate and politic, duly created and operated pursuant to Chapter 163, Florida Statutes, its successors and/or assigns, hereby consents to, joins in and agrees that the undersigned and its successors and assigns shall be bound by the above Covenant. Witnesses: (b\tIO~\.c.wu ~ Signature . (;,",~~~\o.ne \{, \\Cm'-'e\lC'.t Print Name Boynton Beach Community Redevelopment Agency, a public body, corporate and politic~ duly created and operated pursuant to Chapter 163, Florida Statutes ACKNOWLEDGMENT STATE OF FLORIDA ) ) SS: COUNTY OF ~A-.( u ~y ) __ Th,e foregoing instrument was acknowledged before me by 1,'/1: A B l--9 fit. +. as ~~ eltJ './-("',.,,, 1)}.~{J,..(.diOf Boynton Beach Community Redevelopment Agen-cy, a public body, corporate and politic, duly created and operated pursuant to Chapter 163, Florida Statutes, on behalf of the public body, corporate and politic, duly created and operated pursuant to Chapter 163, Florida Statute, and who is personally known to me or has produced a Florida driver's license as identification. . ~ ' Witness my signature and official seal this 0l:J day of July, 2008) in he County and State aforesaid. . Notary Public S~te 0 Floridal>;;' j J A.I.\ C (" Print Name: .Yo ~H-~~I Lt-A...e-tC,e- \ My Commission Expires: CJ4. I? ~Ol{ .~ -;, ~ A SUMMI.HARRIS ~ PlIbJIo . 8tIIt of flodU · · .,~c-.._- - ~~ 17,~tt 0ft'IllIIatl0n . DD 725121 H:\200'M10413 BBCRA\SOUTHBRN ENTBRTAlNMENl\Fffl81ltestrfctlvo Covenant July 2l.doc I ....~"...HcWyAan. 6 LEGAL DESCIRPTI0N' A parcel of land lying in Palm Beach County, Florida. more particularly described as follows: Commencing at the intersection of the Easterly right-ot-way line of the Florida East Coast Railway with the East- West Quarter Section line of Section 4, Township 46 South. Range 43 East, Palm Beach County, Florida; thence Easterly along said East-West Quarter Section line, a distance ofBO.90 feet; thence Northerly, parallel with the said Easterly right.o~way of the Florida East coast Railway, a distance of 62.67 feet to an intersection, with the Northerly right-or-way line ofGuJfsfream Boulevard; thence Easterly along said Northerly rlght-ofway Une a distance of70.S5 feet to the point of curvature ofa curve to the South baving a radius of 1950.08 feet and a central angle of SO 59' 3811; thence Easterly along the arc of said curve 1\ distance of204 fee*i thence continue Easterly, along said rigbt.o~way line, tangent to said curve, a distance of 68.82 feet to the POlNT OF BEGlNNlNG of the Parcel to be herein described; thence continue Easterly, atong the same course, a distance of217.96 fectto the pointofa curvature ofa curve concaVe to the Northwest having a radius of20 feet and a central angle of720 27' SO"; thence Easterly and Northerly along the arc of said. curve, a distance of2S.29 feet to a point in the westerly right-of-way Uno of U.S. Highway No. I (S.R. ## S); thence Northerly along said right-of~way line tangent to said curve, a distance of 180.03 feeti thence Westerly, making an angle with the preceding course of 1070 33' 34", measured from North to West. a distance of263.4S feet; thence Southerly, making an anglo with the preceding course oU80 33' 12" measured from Bast to So~ a distance of 187.60 feet to the POINT OF BEGINNING aforesaid. APPROVED on 1uly 22, 2008 ExhIbit "A"