Title
Florida Food Service Contract Addendum for Option to Purchase Property in the Airport Industrial Park (B)
Explanation
The City and Florida Food Service entered into a Purchase and Sale and Option Agreement on January 28, 1997. A First Amendment was executed on April 14, 1997. The agreement provided that upon successful closing on the Florida Food premises (this occurred on June 2, 1997), that the City would grant Florida Food Service an exclusive right option to purchase 3.44 acres (Lot 12) in the Airport Industrial Park. This option is due to expire on June 2, 2002. Florida Food Service seeks to extend this purchase option until June 2, 2007.
If Florida Food Service elects to exercise the option within the 5-year extension, within two years from the date of recording the deed of conveyance, Florida Food Service has to complete construction of a warehouse/building, consisting of a minimum size, which will be determined before the parties execute the second amendment, or the optional property shall revert back to the City. In addition, the deed of conveyance shall provide for the same.
Fiscal Note
The City will receive $2,000 in consideration for granting the option. If Florida Food Service purchases the Option Property prior to June 2, 2007, the City will receive an additional $72,820 (3.44 acres at $21,750 per acre = $74,820 less $2,000). However, if the optioned property reverts back to the City, the City shall tender to Florida Food Service a check in the amount equal to the purchase price paid to Florida Food Service for the optioned property less the $2,000, as full consideration. The net proceeds of the sale will be transferred to the Airport Authority.
Recommendation
The City Commission approve, and authorize the City Manager to execute, the First Addendum to the Contract for Purchase and Sale and Option Agreement between the City of Gainesville and Florida Food Service, Inc., extending an exclusive and irrevocable r...
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