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Agenda 06-16-09 SCANNED. City Clerk's Office ~~ctY~T2~ eRA iIi East Side-West Side-Seaside Renaissance If any permn decidt.~ to appeal all)' deci~ion made by the Hoard with Cl'~pect to any matter con~idered at this meeting, he or ~he will need a record of the proceedings, and that, for such purpose, he or sill' may need to ensure th,\l a verbatim record of the procccding~ j~ made, which record includes the te~timony and evidence upon which the appe'll is to be based. Special Meeting of the eRA Board Tuesday, June 16,2009 City Commission Chambers 100 E. Boynton Beach Blvd Boynton Beach, FL 33435 5:45 PM I. Call to Order - Chairman Jerry Taylor n. Pledge to the Flag and Invocation III. Roll Call IV. Consideration of Purchase offer from Gary M. Braisted for the eRA's 4COP Liquor License #60-00711 VI. Adjournment If any person decides to appeal any decision made by the Board with r,'spect to any matter considered at this meeting, he or she will necd a record of the proceedings, and tlull, for such purpose, he or she may need to ensure th,tt a verbatim record of the prueet'dings is made, whieh record includes the testimony and eyidence upon which the appe'll is to be based. Special Meeting of the eRA Board Tuesday, June 16,2009 City Commission Chambers 100 E. Boynton Beach Blvd Boynton Beach, FL 33435 5:45 PM I. Call to Order - Chairman Jerry Taylor II. Pledge to the Flag and Invocation III. Roll Call IV. Consideration of Purchase offer from Gary M. Braisted for the CRA's 4COP Liquor License #60-00711 VI. Adjournment ~\I!J ~. .' I'; wI\-,,:,,;, ' .,.,W' .. ~~~Y~T2~lc RA iIIi East Side~West Side~Seaside Renaissance eRA BOARD MEETING OF: Special Meeting - June 16,2009 I I Consent Agenda I X I Old Business New Business Legal I I Other SUBJECT: Consideration of Purchase offer from Gary M. Braisted for the CRA's 4COP Liquor License #60-00711. SUMMARY: On July 22, 2008, the CRA purchased the adult enteltainment and liquor licenses from the owners of Platinum Gold at 3675 S. Federal Highway. The intent of the purchase was to remove a nuisance business and to prevent a similar business from reopening on the same site. At the regular meeting held on January 13, 2009, the CRA Board approved the listing agreement engaging services of the Prakas Group for the sale of the license. The original listing price was $110,000 for the term expiring on June 1, 2009. As of May 10, 2009, the CRA had not received a purchase offer for the license, According to Mr. Prakas, the market value of the license is now in the $70-90,000 range. Additionally, he feels that the current market is in contradiction to investors wanting to open new niteclubs or pubs for whom the agency's 4COP license is applicable. At the May 12, 2009 CRA Board meeting, the Board approved extending the listing agreement with the Prakas Group for an additional four months. The Board also instructed staff to encourage any and all offers for the license as the market is declining and the CRA's cannot keep the license in the current "inactive escrow status" indefinitely. Staff has submitted an extension request letter to the Division of Alcohol & Tobacco in an attempt to keep the license under this status for an additional four months. On June 10, 2009, Tom Prakas presented staff with a purchase offer for the license (attached) in the amount of $65,000.00 with a closing no later than June 29, 2009. Sales of liquor licenses continue to decrease and there is the potential for additional foreclosure licenses to add to the market supply. FISCAL IMP ACT: If sold, the CRA may realize $53-55,000 net proceeds from the sale at the $65,000 offer price. CRA PLAN, PROGRAM OR PROJECT: Federal Highway Corridor Community Redevelopment Plan OPTIONS: The eRA Board may want to consider one of the following options: Option 1: Option 2: Accept the purchase offer of $65,000.00. Present a counter offer to the Buyer , / r \.... '? " " / ,'<;/ / ,//7 "..(_ ./. f. I. . ? l (~ '1" (.. ,I.'? /, /' Michael Simon Development Manager T:\AGENDAS. CONSENT AGENDAS, MONTHLY REPORTS\Completed Agenda Item Request Forms by MeetingIFY 2008 - 2009 Board Meetings\Special Meeting 6-16-09\Braisted Putchase offer - Liquior License.doc ~-\'~. -.. . ~~~<!Y~T8~C RA iI East Side~West Side~Seaside Renaissance eRA BOARD MEETING OF: May12,2009 I I Consent Agenda I X I Old Business New Business Legal I I Otber SUBJECT: Update on the status and marketing of the CRA's Beverage License. SUMMARY: On July 22, 2008, the CRA purchased the adult entertainment and liquor licenses from the owners of Platinum Gold at 3675 S. Federal Highway. The intent of the purchase was to remove a nuisance business and to prevent a similar business from reopening on the same site. At the regular meeting held on January 13, 2009, the CRA Board approved the listing agreement engaging services of the Prakas Group for the sale of the license. The listing price is $110,000 for the term expiring on June 1,2009. The licensed has been aggressively marketed by the Prakas Group via website (see attached list) as well as through the business relationships and networking events. To date, the CRA has not received a written or verbal offer to purchase the license. Mr. Prakas has discussed the economic market realities being a major hindrance to potential investor/buyers of these types of licenses. Additionally, he feels that the current market is in contradiction to investors wanting to open new niteclubs or pubs for whom the agency's 4COP license is applicable. In light of the decline in the sales market, it is presumed that the resale value of the license has decreased. According to Mr. Prakas, the market value of the license is now in the $70-90,000 range. The liquor license is scheduled to expire from "inactive escrow status" on June] 6, 2009. Staff has contacted PBC Division of JiHDlfe Beverage & Tobacco office which has indicated a hardship extension would most likely be granted to the CRA if an extension was sought by the agency. FISCAL IMPACT: If sold, the CRA may realize $70,000 - $110,000 for the license less the broker fee. CRA PLAN, PROGRAM OR PROJECT: Federal Highway Corridor Community Redevelopment Plan OPTIONS: The eRA Board may want to consider one of the following options: Option 1: Renew the Listing Agreement with the Prakas Group for an additional three month period at the same or a lower sales price. At Listing Agreement expiration, utilize the listing services of the second ranked Broker for a period of three months at the same or lower sales price. At Listing Agreement expiration, place the license for sale through an open BidIRFP process without the use of a Broker. Option 2: Option 2: c/~~,/' - P~y~ . ~~......-...- Michael Simon Development Manager T:\AGENDAS, CONSENT AGENDAS, MONTHLY REPORTS\Completcd Agenda Item Request Forms by Meeting\FY 2008 . 2009 Board Meetings\5- 12-09 Meeting\Update on Liquior License.doc AGREEMENT THIS AGREEMENT made and entered into this_day of June 2009 by and between the BOYNTON BEACH COMMUNITY REDEVLOPMENT AGENCY OF THE CITY OF BOYNTON BEACH, a Florida Municipality incorporated under the laws of the State of Florida, hereinafter referred to as "SELLER" and GARY M. BRArSTED, an Individual and/or his assigns hereinafter referred to as "BUYER". WITNESSETH WHEREAS, SELLER is the owner of an existing liquor license #60-00711 a 4COP quota alcoholic beverage license and WHEREAS, BUYER is desirous of purchasing said license upon certain terms and conditions, NOW THEREFORE, in consideration of the sum of Ten Dollars ($10.00) each to the other in hand paid and other good and valuable consideration. the sum and sufficiency of which is hereby acknowledged, the parties hereto agree as follows: 1. The recitals set forth above are true and correct and form a material part of this agreement. 2. SELLER shall sell and BUYER shall purchase SELLER'S alcoholic beverage license issued by the Division of Alcoholic Beverages and Tobacco (DABT), being #60-00711 a 4COP quota alcoholic beverage license presently issued to SELLER for use in Palm Beach County, Florida, 3. BUYER shall purchase from SELLER the said license for the sum of Sixty-FiveThousand ($65,000.00) Dollars payable in cash, certified funds or trust account check at closing. 4. SELLER represents that the subject alcoholic beverage license has remained in Escrowllnactive status with the DABT since the date of Issuance and has not been utilized for the purchase and/or sale of alcoholic beverages and shall therefore not be subject to a transfer fee. 5. Subject to the terms, conditions and warranties as specified herein. the closing of this transaction shall no later than June 29th, 2009 at the offices of RealtyMasters, 1015 North Powerline Rd., Fort Lauderdale. FL 33311. The parties hereto agree that the exchange and delivery of the closing documents shall be via priority overnight courier or some other mutually acceptable process. (1 ) 6. At closing SELLER shall give BUYER a special Bill of Sale for the license warranting it to be free and clear of all debt, obligations, Ilens, mortgages, charges and encumbrances of any nature or kind and freely transferable to BUYER.. 7. SELLER represents and warrants that it shall continue to maintain the license in good standing until closing and pay any and all fees necessary and required by the DABT in order to keep the license current and in good standing. 8. SELLER shall guarantee all outstanding debt, including but not limited to Florida Sales Tax and Surcharges and any interest and or penalties that may be due and owing. The BUYER and SELLER hereby acknowledge and agree that the closing of this transactlon is expressly contingent upon the subject license being free and clear of all debt, obligations, liens, mortgages, charges and encumbrances of any nature or kind. 9. Simultaneously with the execution of this agreement, BUYER has placed a Six Thousand Five Hundred and nol100 ($6,500.00) Dollar deposit with RealtyMasters, to be held in the firm's Trust Account pursuant to the terms and conditions of this agreement. 10. The failure of BUYER to close this transaction pursuant to the terms and conditions contained herein shall result in the Six Thousand Five Hundred ($6,500.00) Dollar deposit held to be paid over 1/2 to SELLER and 1/2 to Broker as liquidated and agreed upon damages. The parties have agreed that such sum Is a fair and equitable amount and shall not be regarded as a penalty. In the event of a breach or default by SELLER, the BUYER shall have the right of specific performance. 11. There shall be a proration for the unexpired term of the license from the date of closing through March 31. 2010 and the same shall be paId in cash in addition to the purchase price recited herein. (2) 12. Each party represents and warrants to the other that no broker and/or real estate agent other than RealtyMasters and Prakas Brokers have been engaged in connection with this transaction. Each party shall indemnify, defend and save the other harmless from and against all costs, expenses or losses (including attorney's fees and court costs at trial and appellate levels) arising out of any claim of any broker alleging to have been engaged by it and entitled to a commission or compensation by reason of this transaction. SELLER shall compensate Brokers in an amount equal to ten percent (10%) to be paid out of the closing proceeds and BUYER shall have no obligation to Broker for any commission or brokerage fee. 13. BUYER is purchasing the license to place in a location in Palm Beach County, Florida and has and has ascertained that the location is properly zoned. This transaction Is not contingent upon DABT approving the change of location to BUYER'S premises. 14. Within (3) business days following SELLER'S execution of this agreement, SELLER shall provide BUYER with an authorization and required DABT forms with which to obtain Department of Revenue clearance on SELLER'S sales tax account if applicable together with copies of the monthly sales tax returns necessary and required by the DABT to calculate the transfer fee. At closing, SELLER shall deliver to BUYER two (2) original DABT transfer affidavits signed by SELLER. SELLER agrees to fully cooperate with BUYER in the transfer of the subject license to BUYER. 15. SELLER warrants and represents that there are no pending administrative charges filed by the DABT and there are no contracts, lawsuits, delinquent surcharges or fees, pending or affecting the license nor has SELLER violated the Rules, Policies. and Regulations of the DIvision, the Department of Health, or any other administrative or tax agency. which violation could impair the transferability of the license. If any representation is untrue, BUYER shall have the option to accept the transfer of the license and conclude the sale regardless of such impediment or may. In the alternative, refuse to consummate the transaction and the aforementioned deposit shall be returned to the BUYER and any agreement between the parties shall be considered null and void and of no further force or effect. (3) 16. The parties acknowledge and agree that the entire agreement between them is as set forth herein. Any amendments, modifications or riders to this agreement shall be writing between the parties. 17. This Agreement may be amended or modified at any time and in all respects by an instrument in writing executed by the BUYER and the SELLER. 18. Headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement. 19. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute but one and the same instrument. 20. This Agreement constitutes the entire agreement between the parties hereto, and there are no agreements, understandings, restrictions, warranties, or representations between the parties other than those set forth herein or herein provided for, 21. It is the intention of the parties that the laws of the State of Florida should govern the validity of this Agreement, the construction of its terms, and the interpretation of the rights and duties of the parties. 22. Time is of the essence in this agreement. 23. In the event a dispute arises between BUYER and SELLER with regard to the terms and conditions of this agreement, the prevailing party in any litigation at both trial and appellate levels shall be entitled to all attorney's fees and court costs incurred In such litigation. 24. A facsimile copy of this agreement and any signatures hereon shall be considered for all purposes as originals. 25. It is understood that all of the provisions, promises and covenants contained herein shall survive the closing of this transaction and any of them may be enforced by either party subsequent to the date of closing. (4) 26. If any part of this agreement or any other agreement entered Inlo under thIs agreement Is contrary to, prohibited by, or deemed Invalid under applicable law or regulations, that provision will be inapplicable and deemed omitted to the extent so contrary, prohibited or Invalid, but the remainder of this agreement will not be invalidated. IN WITNESS WHEREOF I the parties hereto have set their hands and seals the date first above written, SELLER BOYNTON BEACH COMMUNITY REDEVELOPMENT AGENCY Of the City of Boynton Beach, a Florida Municipality By: BUYER GARY M. BRAISTED lJ1. 6~ ESCROW AGEN'r ReallyMasters (5) Realty[Mi]@)~~@[f~ 1015 North Powerline Road Fort Lauderdale, Florida 33311 (954) 727-9000 (954) 727-9001 Fax RETAIL PROPERTY MANAGEMENT & LEASING · REALTORS'" June 10, 2009 VIA E-MAIL tpnkas@m.akas2roup.com Mr. Tom Prakas Mr. Mike Simon THE PRAKAS GROUP Boynton Beach Community Redevelopment Association 4700 NW Boca Raton Blvd., Suite 301 City of Boynton Beach Boca Raton, Fl33431 Boynton Beach, Fl Re: Palm Beach County Quota Alcoholic Beverage license Gentlemen: I am writing you in response to your request for an assessment of a Palm Beach County quota alcoholic beverage license. Over the last 6-8 months the demand for Palm Beach County quota alcoholic beverage licenses has softened to such a degree that the supply greatly exceeds demand and prices have been steadily declining over this period. The substantive issue is due to the economic recession. As a result the alcoholic beverage Industry has been reeling in dismal sales. The hardest hit sector has been the hospitality industry wherein restaurants and nightclubs have found it very difficult to co-exist resulting in many businesses closing and the licenses being placed into the marketplace for sale. Further from the demand side may investors are very wary and nervous about opening new package stores, restaurants & nightclubs in these economic times which has resulted in the extremely soft demand. Additionally, there are now over a dozen Palm Beach quota licenses that are in foreclosure that will also be coming on the market over the next 2-3 months. I trust that this is the information you were in need of. Should you have any questions or if I may of any additional help or assistance please do let me know. Very truly yours, Barry B. osayn 4:Beverage Ucense Specialist ~~~J;: State Certified Bul/dlng Contractor #CBC017086 S Member of lnternallonel Counellof A < Shopping Centers All Information fumlshed regarding property lor sale, rental or financing is from sources deemed reliable. but no warranty or representalion 1$ made as to the accuracy thereof and $ame Is submitted subject to ertots. omissions. change of price. rental or other conditions. prior sale, lease or financing, or withdrawal without nolice.