021494-Work Session108
MINUTES
City Commission, Sanford, Florida
Work Session .F_ejoruary 14
The City Commission of the City of Sanford, Florida, met in Work Session on Monday,
February 14, 1994, at 4:30 o'clock P.M. in the City Manager's Conference Room, City Hall,
Sanford, Florida.
Present:
Mayor-Commissioner Bettye D. Smith
Commissioner Whitey Eckstein
Commissioner Robert B. Thomas, Jr.
Commissioner A. A. McClanahan
Commissioner Lon K. Howell
City Attorney William L. Colbert
City Manager William A. Simmons
City Clerk Janet R. Donahoe
The Chairman called the meeting to order.
Holiday Inn Items.
A. Proposal from Bernard Sandler for Holiday Inn Lease.
Bernard Sandler, Harborview Properties Development Company ("Harborview"), reported
that he would like to work with the City to revitalize the area, and have a successful joint
venture. Mr. Sandler reviewed various lease approaches including: 1) Establish the value of
the land between 10% and 15% of the entire project, which would equate to approximately
$350,000.00 for the land, 2) The City's return based on the net operating income ("N.O.I.")
after debt service and expenses in lieu of a set figure for leasing, 3) Creating the value
of the land on a formula acceptable to the City, as the national average of participation in
the building, and attaching a thirty (30) year treasury ngcc, which would be applied to the
equation of the value of the land so the City would not ~ locKe~ into ~ low rate, and 4) 15%
of the N.O.I.
The City Attorney reported that the concept the Commission had previously approved
provided for a ground lease for twenty-nine (29) years, plus ~,-~o options, totalling seventy-
five (75) years, with a certain level of return for the City initially, and then a
participation for the remainder of the term.
After discussion, the Commission concurred to have the City Manager and the City
Attorney work with Mr. Sandler to prepare a ground rent lease document for a term up to
seventy-five (75) years, with terms similar to the previously approved concept, with some
provision for payment of rent which is flexible and does not limit the City to a specific
dollar amount over the term of the lease, and removal of the not-to-compete clause as it
relates to restaurants.
B. City Attorney's recommendation regarding administrative claim.
On recommendation of the City Attorney, the consensus of the Commission was to
authorize the City Attorney to proceed with the'filing of a Notice of Continuation of Claim
in the Circuit Court, for land ownership of the Holiday Inn property, and referred this item
to tonight's Regular Meeting, for City Commission consideration.
Request from Sanford Housin~ Authority for exemption from making payments in lie of taxes.
Phyllis Richardson, Executive Director, Sanford Housing Authority, requested that
the City either waive the FY 94/95 P.I.L.O.T. payment in approximate amount of $24,000.00,
or maintain the original contract amount, and briefly explained the reasons for said request.
After discussion, and on recommendation of the City Manager, the Commission
concurred to accept FY 94/95 P.I.L.O.T. in prorated monthly installment payments, in advance,
provided sufficient cash flow is evident. This item was referred to tonight's Regular
Meeting, for City Commission action.