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R-2016-06 (copy) CITY OF CLERMONT RESOLUTION NO. 2016-06 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CLERMONT AUTHORIZING THE SALE OF 3.97 +1- ACRES OF CERTAIN REAL PROPERTY LOCATED IN LAKE COUNTY, FLORIDA TO GOLDEN FONESCA INVESTMENT, LLC. FOR THE PURCHASE PRICE OF $1,308,000.00, AND AUTHORIZING THE MAYOR AND CITY MANAGER TO PERFORM ALL ACTS NECESSARY AND APPROPRIATE TO CLOSE ON THE PROPERTY AS PROVIDED HEREIN. NOW THEREFORE BE IT RESOLVED by the City Council of the City of Clermont, Lake County Florida, as follows Section 1. The City Council of the City of Clermont, Florida does hereby accept the offer from GOLDEN FONESCA INVESTMENT, LLC for the purchase of 3 97 +/- acres of real property owned by the City for $1,308,000 00 and does hereby authonze the Mayor to enter into the contract attached hereto and incorporated herein and further authorizes the City Manager to perform all acts necessary and appropriate to close on the property Section 2. Mayor and/or City Manager are specifically authorized to withhold the formal written agreement upon determination of any matter or factor, hereafter coming to attention which may indicate such action is not in the City's best interest, provided that upon such withholding, the City Manager, with reasonable dispatch, shall present the issue to the City Council, in session, for review and direction Section 3 This Resolution shall take effect immediately upon its adoption 1 CITY OF CLERMONT RESOLUTION NO. 2016-06 PASSED AND ADOPTED by the City Council of the City of Clermont, Lake County, Flonda on the 8th day of March, 2016 CITY OF CLERMONT 1, c' ' r ; Gail L Ash, Mayor r F y < , /' ATTEST . Tracy A, oyd Howe, City Clerk LEG- IN FORM AND VALID • DOPTED Daniel Man orney CONTRACT FOR SALE AND PURCHASE THIS CONTRACT FOR SALE AND PURCHASE(the"Contract") is made and entered into on this 1 day of March, 2016 (the "Effective Date"), by and between CITY OF CLERMONT, a Florida Municipal Corporation, whose address is 685 West Montrose Street, Clermont, FL 34711 ("Seller"), and FONSTOCK REAL ESTATE INVESTMENTS, LLC, a Florida limited liability company whose address is 7901 Kingspointe Parkway, Suite #16, Orlando, Florida 32819 ("Buyer") WITNESSETH WHEREAS, Seller is the owner of certain property located in Lake County as more particularly described below, and WHEREAS, Seller desires to convey said real property to Buyer and Buyer desires to purchase the same from Seller, NOW THEREFORE,for and in consideration of the premises hereof,the sums of money to be paid hereunder, the mutual covenants herein contained, and for other good and valuable considerations,the receipt and sufficiency of which are hereby acknowledged,the parties hereto do covenant, stipulate and agree as follows, to wit 1 Description of Property 1775 Hooks Street and further described as Lot 1 on Exhibit "A" attached hereto, consisting of 3 97 +/- acres together with all improvements, tenements, hereditaments, rights, privileges and easements thereunto belonging, the final legal description of which shall be determined as determined by Buyer's survey completed as part of the inspection period below (hereinafter together referred to as the "Property") 2 Agreement to Sell and Purchase Seller hereby agrees to sell and convey and Buyer hereby agrees to purchase and accept the Property upon the terms and subject to the conditions set forth in this Contract 3 Purchase Price and Method of Payment Subject to credits, adjustments and proration for which provisions are hereinafter made in this Contract,the total purchase price for the Property to be paid by Buyer and received and accepted by Seller (the "Purchase Price") shall be ONE MILLION THREE HUNDRED AND EIGHT THOUSAND DOLLARS ($1,308,000) The Purchase Price shall be paid by Buyer to Seller in the manner and at the times following, to wit A Earnest Money Deposit Within 5 business days from execution of this Contract by all parties, the sum of ONE HUNDRED FIFTY THOUSAND and no/100 DOLLARS ($150,000) shall be deposited by Buyer with Daniel F Mantzans, Esq , deBeaubien, Knight, Simmons, Mantzans & Neal, LLP (the "Escrow Agent"), as an earnest money deposit hereunder ("Earnest Money 1 ClermontHooksStreetsale030416 Deposit") The Earnest Money Deposit shall not be refundable except as set forth herein B Cash Delivered at Closing At Closing the Earnest Money Deposit plus the balance of the purchase pnce shall be delivered to Seller in United States funds by wire transfer All deposits shall be applied to the Purchase Price C This Contract shall serve as escrow instructions and an executed copy of this Contract shall be deposited with Escrow Agent In the event of a termination of this Contract or a default under this Contract, the Earnest Money shall be delivered or disbursed by the Escrow Agent as provided in this Contract If either ' party shall declare the other party in default under this Contract pursuant to Paragraph 15 hereof, and shall make demand (the "Demand") on Escrow Agent for possession of the Earnest Money,said party must provide the other party with a copy of such Demand made upon the Escrow Agent Except with respect to a Demand for the Earnest Money made by Buyer prior to the Inspection Deadline, which shall be promptly honored, Escrow Agent shall not disburse the Earnest Money in accordance with any Demand unless and until the demanding party delivers to Escrow Agent evidence (e g, return receipt issued by U S Postal Service) of the other party's receipt of the Demand, and Escrow Agent has not received written objection to such Demand within five (5) business days following said party's receipt of the copy of such Demand If any dispute or difference arises between the Buyer and Seller or if any conflicting demands shall be made upon the Escrow Agent, the Escrow Agent shall not be required to determine the same or to take any action thereon Rather, the Escrow Agent may await settlement of the controversy or deposit the escrow sums into the Registry of the Circuit Court of Lake County, Florida, in an interpleaded action or otherwise for the purpose of having the respective rights of the parties adjudicated Upon making such deposit or upon institution of such interpleaded action or other actions, the Escrow Agent shall be fully relieved and discharged from all further obligations hereunder with respect to the sums so deposited Buyer acknowledges that Escrow Agent is also serving as Seller's counsel in the transaction contemplated by this Contract, and notwithstanding any dispute between the parties pertaining to Escrow Agent's duties hereunder or the disbursement of the Earnest Money or for any other reason, Escrow Agent may continue to represent Seller in this transaction and in any litigation that may arise hereunder 4 Title Within fifteen(15)days of the effective date is received by the Seller, Seller at Seller's expense shall deliver to Buyer an original commitment for title insurance committing to issue an Owner's policy to Buyer as purchaser of the Property in the amount of the Purchase Price(the"Title Commitment") The title company and issuing agent shall be selected by Seller Buyer shall have twenty (20) days from the date of Buyer's receipt of the Title Commitment to examine the same Buyer shall,on or before the end of said twenty(20)day period,notify Seller in writing specifying any objections Buyer may have regarding the status of title as shown on the Title Commitment, otherwise Buyer shall be deemed to have waived the right to any such objections Seller shall, within ten (10) days from receipt of Buyer's notice of objection to title, 2 ClermontHooksStreetsale030416 provide a reply by written notice to Buyer (the "Reply Notice"), notifying Buyer that (i) Seller will not undertake to cure Buyer's title objections, or (ii) Seller will make a good faith effort to cure Buyer's title objections within ten (10) business days of Seller's Reply Notice (the "Title Cure Period") Should Seller fail to deliver a Reply Notice to Buyer, Seller shall be deemed to have elected to decline to undertake a cure of Buyer's title objections In the event Seller declines to undertake a cure of Buyer's title objections, or if Seller shall not have cured the defects within the Title Cure Period, Buyer shall have, as its sole and exclusive remedy, the option of (i) accepting title to the Land in an "as is" condition without recourse to Seller and without a reduction in the Purchase Price and the remaining title objections shall become Permitted Exceptions, or (ii) terminating this Agreement and receiving a refund of the Deposit which Escrow Agent shall forthwith return to the Buyer Buyer's option of terminating this Agreement and receiving a refund of the Deposit must be exercised within seven (7) days following the earlier of (i)the date Buyer receives the Reply Notice stating that Seller declines to cure Buyer's title objections, or(ii)in the event Seller fails to deliver a Reply Notice,the date Seller is deemed to have elected not to undertake Buyer's title objections, or(iii)in the event Seller elects to make a good faith effort to cure Buyer's title objections, within five (5) days following the expiration of Seller's Title Cure Period In the event Buyer does not terminate this Agreement pursuant to this Section 4, Buyer shall be deemed to have waived any remaining uncured objections to title and agreed to(a)accept title to the Land in an"as is"condition without a reduction in the Purchase Price and without recourse to Seller and (b) close on the date specified in Section 8 herein 5 Investigations and Inspections of Property Seller shall provide Buyer with complete and full copies of all surveys, permits, environmental wetland reports, geotechnical studies, conceptual site plan drawings, zoning certificates, utility certificates, easement agreements, development agreements (whether such agreements remain in effect or have expired), together with any other documents related to the Property, within THREE (3) days following the Effective Date ("Seller's Materials) Buyer and its architects, engineers and other agents,at Buyer's sole expense, shall have a period of THIRTY(30)days following the Effective Date(hereinafter referred to as the"Inspection Period")within which to undertake such physical inspections and other investigations of and concerning the Property, including a survey, as Buyer deems necessary in order to evaluate the physical characteristics of the Property, as well as such other matters as shall be deemed by Buyer to be necessary in order for Buyer to evaluate the Property and determine the feasibility of Buyer's purchase of the same For such purpose, Seller hereby grants to Buyer and its agents shall have the right to enter upon the Property during the Inspection Period for the purpose of undertaking such inspections and investigations It is expressly provided,however,that Buyer and any agent or assignee of Buyer who shall enter upon the Property pursuant to such right of entry shall,as a condition to the exercise thereof,be deemed to have agreed, and does hereby agree, to indemnify and save and hold Seller harmless from and against any and all loss, damage, cost, expense, liability or responsibility whatsoever(including, without limitation, reasonable attorneys' fees) which may be occasioned, directly or indirectly, by reason of the exercise of such right of entry upon the Property, and that such indemnification shall expressly survive both the termination of this Contract and the Closing The foregoing indemnity shall not be subject to the liquidated damages limitations of Paragraph 15 below Prior to entry onto the Property, every agent or contractor of Buyer shall deliver to Seller a certificate evidencing such agents or contractors general public liability coverage in amounts of no less than $1,000,000 per occurrence and$1,000,000 in the aggregate,listing Seller as an additional insured thereunder During the Inspection Period, Buyer may wish to secure a site plan approval and all 3 ClermontHooksStreetsale030416 other approvals required to permit the development of the Property for retail use purposes Seller agrees to cooperate, at no cost to Seller, in Buyer's efforts to obtain all permits, approvals and zoning changes necessary for such development of the Property, and upon written request of Buyer,Seller shall execute or join with Buyer in the execution of such applications and submittals as may be required for Buyer to obtain permits and approvals from applicable governmental authorities with respect to Buyer's contemplated development of the Property,provided that such efforts do not in any way diminish the value of the Property, cause Seller to incur any expense or require Seller to do anything other than execute the documents Provided that any request by Buyer is consistent with the foregoing, Seller shall execute and return to Buyer all applications and submittals within a reasonable period following receipt of such applications and submittals together with written request by Buyer for the execution thereof, without charge by Seller In the event that Buyer terminates this Contract, Buyer shall provide Seller with copies of all documents, testing, opinions, reports, results, applications, permits and the like furnished to, or obtained by any person or entity by any party after execution of this Contract 6 Unacceptability of Inspections In the event that the results of the inspections, investigations, reviews, feasibility studies and Seller approvals to which reference is made in Paragraph 5 above are, in Buyer's sole opinion and within Buyer's sole discretion, unacceptable to Buyer for any reason whatsoever, and Buyer so notifies Seller of the fact on or before the expiration of the Inspection Period provided in Paragraph 5 hereof, then at Buyer's option and upon Buyer's request, Buyer may terminate the Contract and all payments or deposits, including accrued interest, if applicable,made by Buyer shall be immediately returned to Buyer as Buyer's sole property Provided, further, that in the event that Buyer elects to terminate this Contract for any reason after the expiration of the Inspection Period, other than default by Seller, the Earnest Money Deposit shall become the property of Seller and shall immediately be disbursed by Escrow Agent to Seller If the Contract is terminated by Buyer hereunder, it shall be rendered null and void, and be of no further force and effect and all parties hereto shall thereupon be relieved and absolved of any further liabilities or obligations whatsoever to each other hereunder, except with respect to those liabilities or obligations hereunder which are expressly stated to survive the termination of this Contract, including, without limitation, Buyer's indemnity set forth in Paragraph 5 above The failure of the Buyer to notify Seller of the unacceptability of any such inspections,investigations,reviews and feasibility studies prior to the expiration of the Inspection Period shall constitute a waiver of Buyer's right to terminate this Contract In the event of termination by Buyer pursuant to this Section,Buyer shall provide to Seller,at no expense,copies of all plans, studies and information obtained or prepared by Buyer with regard to Buyer's Intended Use (hereafter defined) and related to the Property, provided, Buyer does not warrant the completeness or accuracy of such materials 7 Conveyance of Property At Closing, Seller shall deliver to Buyer (i) a duly executed Special Warranty Deed in recordable form conveying fee simple title to the Property free and clear of all liens, encumbrances and exceptions except for the exceptions approved or deemed approved by Buyer ("Permitted Exceptions"), (ii) an affidavit from Seller certified to Buyer and to the title company in form required by the title company to delete from Buyer's title insurance policy all standard exceptions for construction liens and parties in possession exceptions and any other standard exceptions the title company may delete based on Seller's affidavit, (iii) a certification by Seller which indicates that Seller is not a foreign person as defined in the Internal Revenue Code, (iv) written affirmation that the representations and 4 ClermontHooksStreetsale030416 warranties set forth in Paragraph 12 hereof remain true at the time of Closing,(v)a duly executed closing statement, (vii) such documents as the title company requires in order to evidence the authonty and good standing of Seller to complete this transaction, and (viii) other documents reasonably required by Buyer or the title company in order to consummate the transaction contemplated herein At Closing, Buyer shall pay to Seller the Purchase Pnce of the Property descnbed above,subject to adjustments and proration set forth herein and shall deliver to Seller (ix) a duly executed closing statement, (x) wntten affirmation that the representations and warranties set forth in Paragraph 13 remain true at the time of Closing, and(xi)other documents reasonably required by Seller or the title company in order to consummate the transaction contemplated herein 8 Closing A The sale and purchase transaction contemplated in this Contract shall be closed and the aforesaid closing documents delivered on or before the expiration of fourteen (14) days from the expiration of the Investigation and Inspection Penod unless terminated as provided in paragraph 6 (the"Closing Date") B The Closing shall be completed by a closing agent or attorney as selected by Seller and shall take place at Clermont City Hall, in Lake County, or by express mail,and at such time as mutually agreed upon between Buyer and Seller 9 Closing Costs The Seller shall pay for state documentary stamps as may be required to be affixed to the Special Warranty Deed,the premium for the owner's title insurance policy to be issued pursuant to the Title Commitment, the cost of recording any and all other documents necessary to deliver good and clear title, and any document preparation fees Buyer shall pay the cost of recording the Special Warranty Deed and any and all costs associated with the recording of any note, mortgage and secunty agreement contemplated herein Buyer and Seller shall each bear its own attorneys' fees 10 Possession Possession of the Property shall be delivered by Seller to Buyer at the time of Closing hereunder, subject to the Permitted Exceptions Pnor to Closing and the delivery of possession as aforesaid, Seller shall remain the owner of the Property and shall bear the nsk of all loss of whatever nature, except as provided in Paragraph 5 hereof with respect to loss occasioned as a result of Buyer's inspections and investigations of the Property In the event that pnor to Closing all or a portion of the Property being acquired is condemned or condemnation proceedings have been instituted for any public or quasipublic use or purpose, then Buyer shall have the option to terminate this Contract, in which event the payments previously made by Buyer to Seller shall be returned to Buyer, this Contract shall be deemed null and void and Buyer and Seller shall be relieved from all liabilities and responsibilities hereunder except as specifically provided otherwise herein 11 Proration Ad valorem real and personal property taxes, if any, or assessments of any kind for the year of closing shall be prorated as of the date of closing If, however, the amount of such taxes or assessments for the year of closing cannot be ascertained, the rates, 5 ClertnontHooksStreetsale030416 millages and assessed valuations for the previous year, with known changes and utilizing full discounts, shall be used as an estimate, and tax proration based on such estimate shall be readjusted by the Buyer and Seller when the actual tax bills for the year of sale are received, which obligation shall expressly survive closing for a period of twelve(12)months 12 Representations, Obligations and Warranties of Seller Except for the representations and warranties in this Paragraph 12, Seller makes no representations or warranties to Buyer and shall convey the Property 'AS IS, WHERE IS, WITH ALL FAULTS " Buyer shall,by closing on the Property,be deemed to have acknowledged that Buyer has relied solely upon its own inspections and investigations to determine the physical condition of the Property and its suitability for Buyer's purposes Seller represents and warrants (which warranties shall survive the closing hereunder to the Buyer that A Seller has not received written notice from any governmental or quasigovernmental body or agency or from any person or entity with respect to any actual or threatened taking of the Property or any portion thereof for any public or quasi-public purpose by the exercise of the right of condemnation or eminent domain, nor does Seller have any current, actual knowledge of any such actual or threatened taking Further, Seller has not received any actual notice of any existing or threatened lawsuit by which any party claims an interest in the Property B Seller has not received any wntten notices from any city, county, state or other governmental authority or other person or entity of violations of any statute, law, or ordinance, or governmental rule or regulation in respect of the Property including, but not limited to, any notice involving any environmental hazards, risks or violations C Seller owns fee simple title to the Property and has the full power, right and authority, and is duly authorized, to enter into this Contract, to perform each and all of the matters and acts herein provided, and to execute and deliver all documents provided hereunder D There is no tenant of the Property or any other person or entity having any right or claim to possession or use of the Property Possession of the Property shall be delivered to Buyer by Seller free of rights or claims of any tenants, occupants or parties in possession, except for the rights of parties pursuant to the Permitted Exceptions or as may otherwise be disclosed in the Commitment E To Seller's present, actual knowledge, without any investigation whatsoever, there has not been and there is not now (i) any presence of any Hazardous Substances (as hereinafter defined) on, over, under or around the Property in violation of applicable law, (11) any present or past generation, recycling, use, reuse, sale, storage, handling, transport and/or disposal of any Hazardous Substances on, over, under or around the Property in violation of applicable law, (iii) any failure to comply with any applicable local, state or 6 ClermontHooksStreetsale03041 6 federal environmental laws, (iv) any spills, releases, discharges or disposal of Hazardous Substances that have occurred or are presently occumng on or onto the Property or any adjacent properties in violation of applicable law,or(v)any spills or disposal of Hazardous Substances that have occurred or are presently occurring off the Property as a result of any construction or operation and use of the Property in violation of applicable law For purposes of this Paragraph 13, the term "Hazardous Substances" means and includes, without limitation, any toxic or hazardous substances or materials, petroleum or other pollutants and substances, whether or not naturally occurring, including, without limitation, asbestos,radon, and methane gas, generated,treated, stored or disposed of, or otherwise deposited in or located on or under the Property, and also includes, without limitation, the surface and subsurface waters of the Property, and any activity undertaken or hereafter undertaken on the Property which would cause (i) the Property to become a hazardous waste treatment, storage or disposal facility within the meaning of, or otherwise bring the Property within the ambit of, the Resource Conservation and Recovery Act of 1976 ("RCRA"), 42 U S C 6901 et seq , or any similar state law or local ordinance, (ii) a release or threatened release of hazardous waste from the Property within the ambit of the Comprehensive Environmental Response,Compensation and Liability Act of 1980("CERCLA"), 42 U S C 96019657, or any similar state law or local ordinance or any other environmental law, (iii) the discharge of pollutants or effluent into any water source or system, or the discharge into the air of any emissions which would require a permit under the Federal Water Pollution Control Act, 33 U S C 1251 et seq , or the Clean Air Act, 42 U S C 7401 et seq , or any similar state law or local ordinance, or (iv) any substances or conditions in, on or under the Property which may support a claim or cause of action under RCRA,CERCLA or any other federal, state or local environmental statutes, regulations, ordinances or other environmental regulatory requirement,including the presence of any underground storage tanks or underground deposits located on the Property F Seller, to the best of Seller's knowledge, has received no written notice of any existing or pending special assessments affecting the Property which may be assessed by any governmental authority, water or sewer authority, drainage district or any other special taxing district or other entity G Other then as may be set forth herein, there is no litigation or legal proceeding pending or to Seller's present, actual knowledge threatened which relates to or affects the Property or which would impair or otherwise adversely affect this Contract, Seller's performance hereunder and/or Buyer's use of the Property for the Intended Use Buyer is specifically advised and does hereby acknowledged that Seller has negotiated a settlement with Dennison and Rebecca Wi of a dispute related to an unauthorized encroachment on the property owned by Seller whereby, the encroachment will be eliminated prior to Closing hereunder 7 ClermontHooksStreetsale0304 1 6 H Seller has not entered into any other contracts, agreements or understandings, verbal contracts or agreements, oral or written, for the sale or transfer of any portion of the Property, other than as set forth herein I Seller has not made any commitments to any governmental unit or agency, utility company, authority, school board, church or other religious body, or to any other organization, group or individual relating to the Property which would impose any obligations upon Buyer to make any contributions of money or land or to install or maintain any improvements, except as may be set forth in the Commitment J To Seller's present, actual knowledge, without any investigation whatsoever, the Property has not been registered or certified as "historic" by any local, state or federal governmental entity or historic commission K To Seller's present, actual knowledge, neither the execution and delivery of this Contract,nor compliance with the terms and conditions of this Contract by Seller, nor the consummation of the sale, constitutes or will constitute a violation or breach of any agreement or other instrument to which it is a party, to which it is subject or by which it is bound L For purposes of this Paragraph 12, the term "to Seller's knowledge" or words of similar import shall mean the current conscious awareness of facts or other information of the Seller, its officers, agents and employees, without any inquiry or investigation whatsoever,all of whom are acting solely in their capacity as officers, agents or employees of Seller or an affiliate of Seller and are in no manner expressly or impliedly making any of these representations in an individual capacity The statements and representations of Seller set forth in this contract shall be true and reaffirmed in writing at the Closing and shall survive the Closing M If, after the Effective Date, any event occurs or condition exists of which Seller has knowledge or about which Seller receives information which renders any of the representations contained herein untrue or misleading, Seller shall promptly notify Buyer in writing and Buyer, as Buyer's sole and exclusive remedy, shall thereafter have the option to terminate this Contract within thirty (30) calendar days of receipt of Buyer's written notice In the event of such termination, Escrow Agent shall disburse the Earnest Money Deposit (or the portion thereof prior to closing, theretofore deposited with Escrow Agent), to Buyer in which event all payments made by Buyer to Seller shall remain the sole property of Buyer, this Contract shall be deemed null and void and Buyer and Seller shall be relieved from all liabilities and responsibilities hereunder except as specifically provided otherwise herein, including, without limitation, those set forth in Paragraph 6 above 8 ClermontHooksStreetsale03041 6 N All of the foregoing representations, obligations and warranties of the Seller shall survive Closing 13 Representations,Acknowledgments and Warranties of Buyer Buyer represents, acknowledges and warrants to Seller that A Buyer has the power, right and authority, and is duly authorized, to enter into this Contract,to perform each and all of the matters and acts herein provided, and to execute and deliver all documents provided hereunder B To the best of Buyer's knowledge, neither the execution and delivery of this Contract, nor the compliance with the terms and conditions of this Contract by Buyer, nor the consummation of the sale, constitutes or will constitute a violation or breach of any agreement or other instrument to which it is a party,to which it is subject or by which it is bound C In addition to any applicable special assessments as may be provided by applicable law by any governmental entity, the Property is part of the Sandhill Commons Property Owners Association and is subject to assessments in accordance therewith 14 Default In the event that Buyer fails to perform any of the covenants of this Contract on its part to be performed, subject to the title, survey and inspection periods set forth in Paragraphs 4 and 5, or refuses to perform its obligations under this Contract and such failure or refusal is not cured within ten (10) days after Notice from Seller the Earnest Money Deposit shall become the sole property of Seller Seller's retention of the deposit shall constitute liquidated damages and be Seller's sole remedy for any breach of this Contract by Buyer(except to the extent that Buyer damages Seller's Property), it being agreed that (i) the deposit and any interest earned thereon is a reasonable estimate of and bears a reasonable relationship to the damages that would be suffered and costs incurred by Seller as a result of having withdrawn the Property from sale and the failure of closing to occur due to a default of Buyer under this Contract, (ii) the actual damages suffered and costs incurred by Seller as a result of such withdrawal and failure to close due to a default of Buyer under this Contract would be extremely difficult and impractical to determine, (iii) Buyer seeks to limit its liability under this Contract to the amount of the payments made, and to be made, and any interest earned thereon if this Contract is terminated and the transaction contemplated by this Contract does not close due to a default of Buyer under this Contract,and(iv)such amount shall be and constitute valid liquidated damages Notwithstanding the foregoing, the indemnity provisions contained in Paragraph 5 shall not be subject to the foregoing liquidated damages provisions If Seller fails to perform any of the covenants of this Contract on its part to be performed or refuses to perform its obligations under this Contract and such failure or refusal is not cured within twenty (20) days after Notice from Buyer, Buyer may at its option (i) terminate this Contract whereupon the payments made by Buyer to Seller shall be returned and Seller shall be released and relieved of all obligations or liabilities under this Contract, or (ii) proceed in equity in an action for specific performance to enforce its rights under this Contract, or if specific performance is not an available remedy, then an action for damages and any other remedies available at law, or in equity 9 ClermontHooksStreetsale03041 6 15 Assignability Buyer may not assign its interest herein without the prior written consent of the Seller, which consent shall not be unreasonably withheld, conditioned or delayed Seller may, in its sole discretion, assign any and all nghts and obligations hereunder, provided Seller shall remain liable for an action for damages and any other remedies available at law,or in equity, in the event Buyer is unable to pursue an action for specific performance following a default by Seller Any assignment shall be in writing and a copy of such assignment executed by both assignor and assignee shall be delivered to Buyer or Seller, as the case may be Provided, however, Buyer shall be permitted to assign this Contract to a limited liability company or other entity established by Buyer for purposes of receiving Title to the subject property Said assignment shall not relieve or release Buyer of any obligations or liability hereunder Buyer shall notify Seller as soon as practical and no latter then thirty(30) days prior to closing of the name and address of said entity and the name of the representative thereof who is authorized to complete the Closing 16 Litigation and Attorneys' Fees In the event it shall be necessary for either party to this Contract to bring suit to enforce any provision hereof or for damages on account of any breach of this Contract or of any warranty, covenant, condition, requirement or obligation contained herein, the prevailing party in any such litigation, including appeals, shall be entitled to recover from the other party, in addition to any damages or other relief granted as a result of such litigation, all costs and expenses of such litigation and a reasonable attorneys' fee as fixed by the Court 17 Survival of Provisions The provisions of this Contract shall not survive the closing hereunder except as expressly provided elsewhere in this Contract 18 Time of Essence It is expressly agreed by both the Seller and Buyer that time is of the essence of this Contract and in the performance of all conditions, covenants,requirements, obligations and warranties to be performed or satisfied by the parties hereto Waiver of performance or satisfaction of timely performance or satisfaction of any condition, covenant, requirement, obligation or warranty by one party shall not be deemed to be a waiver of the performance or satisfaction of any other condition,covenant,requirement,obligation or warranty unless specifically consented to in writing Unless otherwise expressly provided herein, all periods for performance, approval, delivery or review and the like shall be determined on a "calendar" day basis If any day for performance, approval, delivery or review shall fall on a Saturday, Sunday or legal holiday, the time therefore shall be extended to the next business day 19 Notices Any notice or other communication permitted or required to be given hereunder by one party to the other shall be in writing, shall be effective upon receipt and shall be delivered by registered or certified United Sates Mail, postage prepaid, return receipt requested, or by facsimile or telecopy transmission or electronic mail, with acknowledgment of receipt upon transmission(provided that if notice is sent by facsimile or telecopy transmission or electronic mail, it must also be sent by one of the other methods of delivery specified herein), to the party entitled or required to receive the same, as follows 10 ClennontHooksStreetsale030416 TO SELLER City of Clermont 685 West Montrose Street Clermont, FL 34711 Attn City Manager Fax (352) 394-4087 WITH A REQUIRED de Beaubien Knight, Simmons, Mantzans & COPY TO Neal, LLP 332 North Magnolia Avenue Orlando, Florida 32801 Attention Daniel F Mantzans, Esquire Phone (407)422-2454 Fax (407) 992-3541 e-mail dfin14@dbksmn corn TO BUYER Fonstock Real Estate Investments, LLC 7901 Kingspointe Parkway, Suite#16 Orlando, Florida 32819 Attention Gustavo Fonseca Fax WITH A REQUIRED COPY TO Moran Kidd Lyons&Johnson P A 111 N Orange Avenue, Suite#900 Orlando, Florida 32801 Attention Scott E Johnson, Esquire Fax (407) 841-4148 e-mail stohnson@morankidd com 20 Governing Law and Binding Effect This Contract and the interpretation and enforcement of the same shall be governed by and construed in accordance with the laws of the State of Florida and shall be binding upon,inure to the benefit of, and be enforceable by the parties hereto as well as their respective heirs, personal representatives, successors and assigns 21 Integrated Contract, Waiver and Modification This Contract represents the complete and entire understanding and agreement between the parties hereto with regard to all matters involved in this transaction and supersedes any and all prior or contemporaneous agreements,whether written or oral No agreements or provisions,unless incorporated herein,shall be binding on either party hereto This Contract may not be modified or amended nor may any covenant, agreement, condition, requirement, provision, warranty or obligation contained herein be waived, except in writing signed by both parties or, in the event that such modification, amendment or waiver is for the benefit of one of the parties hereto and to the detriment of the other, then the same must be in writing signed by the party to whose detriment the modification, amendment or waiver inures 11 ClermontHooksStreetsale03041 6 22 Brokerage Seller and Buyer acknowledge and agree no agent or broker has acted on behalf of Seller and that Byron Carter of Parkland International Realty has acted as Buyers broker/agent (the "Broker") Seller shall pay Broker's commission equal to two and one half percent(2 5%) of the total purchase price out of Seller's proceeds The Seller and Buyer agree to indemnify,defend and hold the other harmless from and against any commissions or fees or claims for commissions or fees arising under the indemnifying party, which indemnification shall expressly survive the termination of this Contract and the closing of the sale and purchase of the Property contemplated by this Contract 23 Joinder of Escrow Agent Daniel F Mantzans, Esq at deBeaubien, Knight, Simmons, Mantzans &Neal, LLP,joins in the execution of this Contract for the express purpose of agreeing and acknowledging the terms and conditions related to the retention and disbursement of the Earnest Money Deposit funds herein 24 Effective Date The"Effective Date" of this Contract shall be the date upon which this Contract is last signed by Seller and Buyer 25 Counterparts This Contract may be executed in counterparts by the parties hereto and each shall be considered an original,but all such counterparts shall be construed together and constitute one Contract between the parties hereto 26 Interpretation Seller and Buyer acknowledge each to the other that both they and their counsel have reviewed this Contract and that the normal rules of construction to the effect that any ambiguities are to be resolved against the drafting party shall not be employed in the interpretation of this Contract or any Exhibits hereto 27 Facsimile/PDF Facsimile or PDF copies of this Contract executed by Seller or Buyer shall operate as and may be relied upon as an original signature [remainder of page intentionally left blank] [signatures on following page] 12 ClermontHooksStreetsale03041 6 IN WITNESS WHEREOF, Seller and Buyer have each caused this Contract for Sale and Purchase to be executed as of dates set forth below SELLER City of Clermont B „AZ". , ' By ___A'51Z sat___......-- Tracy Ac :yd Howe, City Clerk Gail L Ash, Mayor Date 3 1S- ) ce BUYER r------ iesses Fonstock Real E 'tate Investments, LLC ItoOAP Weaning i I U./4%., jai& Title Manager Pnnted ame /72 to & Date 03. /,S. /6 / tom""`' , l Escrow Agent deBea t en, Knit.e.- , Simmons, Ma �1, LLP By 4 Daniel F Mantzans Date 3J-c/I, 13 ClermontHooksStreetsale030416 • 1 ea-dANIENWS on Is gr, I I uk l i 1 • �:kr. 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