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Date: August 26, 2020 To: Honorable Chairwoman Audrey M. Edmonson

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Date: August 26, 2020 To: Honorable Chairwoman Audrey M. Edmonson Date: August 26, 2020 To: Honorable Chairwoman Audrey M. Edmonson and Members, Board of County Commissioners From: Carlos A. Gimenez Mayor Subject Report on Status of Property Purchase of Lincoln Memorial Park – Directive No. 201285 : On July 8, 2020, the Board of County Commissioners (Board) approved Resolution No. R-682-20, directing the County Mayor or County Mayor’s designee to take all actions necessary to effectuate the purchase of property known as Lincoln Memorial Park Cemetery, located at 3001 NW 46 Street in Brownsville, Miami-Dade County, folio numbers 30-3121-005-0010 and 30-3121-010-0010, for the purpose of preserving and maintaining the historic cemetery, which is in a state of disrepair, including identifying a funding source, performing all necessary due diligence in accordance with Administrative Order No. 8-1 and negotiating and finalizing a purchase and sale agreement with the current owner. Alternatively, if a funding source was not available, legal impediments existed, or negotiations came to an impasse, the County Mayor or County Mayor’s designee was directed to submit a status report, including recommendations for further action, at the first available full Board meeting following August 1, 2020. As of this date, negotiations are at an impasse, noting the status of specific items and recommendations as to future actions as follows. Background and Due Diligence As part of the County’s standard due diligence prior to any real estate purchase, title work is prepared. This work lays the ground for the County being able to purchase title insurance to protect its interest. Due to a complicated title history of this property, including a probate case, liens, former corporate ownership, and a Judgment held by the County, title research has commenced, but has not yet been completed as of the date of this report. The property is currently owned by Jessica Williams, who received the property in May 2017 per probate court instructions after the former owner, Ellen Delores Bumpus Johnson, passed away in September 2015 without a will. On July 27, 2020, Jessica Williams transferred approximately one-half of the property, via quit claim deed and for no recorded monetary consideration, to herself and Mr. Jessie Wooden; this effectively would provide Mr. Wooden a 25± percent interest in the property. For purposes of purchasing the property, attempted negotiations included both Ms. Williams and Mr. Wooden. Any negotiated willing buyer/willing seller conveyance would require the clearing of any claims against title. Judgment and Liens On July 7, 2020, the County obtained a Judgment against Ms. Williams for $180,996.84 as part of Miami- Dade County Civil Court Case Number 2012-23731-CA-01, recorded at Official Records (OR) Book 32019, Pages 4598-4608. The civil case has been pending since 2012 and is the result of Miami-Dade County Code (Code) violations and liens which had been placed on the property due to long-standing neglect and lack of maintenance. Honorable Chairwoman Audrey M. Edmonson and Members, Board of County Commissioners Page 2 The Judgment also included a permanent injunction requiring the property owner to timely remediate the outstanding Code violations at the cemetery, and to properly maintain the property in compliance with the Code. On July 31, 2020, Ms. Williams filed a Motion to Vacate Judgment, which is currently set for hearing on September 30, 2020. If the County prevails at this hearing, it will have the option to force a sale of the property at public auction. Board authority will be required to submit a bid to purchase the property at public auction. Other encumbrances also exist on the property, including three Code violations for which liens have been recorded, summarized as follows: Approximate Payoff OR Book / Page Date of Lien Original Amount with Interest through August 2020 28241-4714 08/15/2012 $ 6,438.50 $12,602.53 28271-0958 09/05/2102 $ 6,452.00 $12,584.41 29241-2588 07/22/2014 $ 10,080.16 $20,095.42 Total $22,970.66 $45,252.36 Additional violations, which have not yet resulted in a lien also exist. However, the amount and status is subject to completion of the title research. Legally Available Funding Sources The purchase and maintenance of the property may be funded through the Building Better Communities General Obligation Bond program, and the property will be owned and managed through the Miami-Dade County Department of Parks, Recreation, and Open Spaces (PROS). The FY 2020-21 Proposed Budget includes funding for the maintenance and security of the cemetery. PROS’ preliminary plan for ownership includes three key functions, including creation of a management plan for the cemetery that addresses the manner in which to restore and maintain the property and gravesites, the actual restoration of the site and infrastructure, and the ongoing operations and maintenance of the property. The costs associated with same are being researched and prepared by PROS. Appraisals There are multiple factors impacting the interests, rights, economics, and highest and best use of the cemetery property which make the question of market value unique and complex. In light of this complexity, two appraisals were obtained by the County through its standard appraisal process to include Robert E. Gallaher, III, MAI, of Gallaher Valuation, and Joseph Hatzell, MAI, Partner, at Joseph J. Blake & Associates. Both appraisers are well-qualified with over 30 years’ experience each in the valuation of commercial real estate, and their respective reports recognized the historical significance of the property. Both appraisers independently compared the cemetery property to non-usable, conservation and preservation land, opining as follows: Appraisal 1 Appraisal 2 Robert Gallaher Joseph Hatzell 1. Market Value “As If” Unencumbered by Judgment/Liens: $ 50,000 $340,000 2. Market Value “As Is” (with Judgment/Liens): Negative, < $0 $115,000 The appraisal summaries are attached as Exhibit A and Exhibit B. Negotiation Status and Issues Professional staff has held multiple phone conferences with Ms. Williams and Mr. Wooden in an effort to negotiate a willing buyer/willing seller purchase of the property, which would be a first step in achieving the Board’s desire to restore and maintain this historically significant property. During these conversations, Ms. Williams and Mr. Wooden repeatedly advised they were not interested in selling the property under Honorable Chairwoman Audrey M. Edmonson and Members, Board of County Commissioners Page 3 any circumstances, nor in considering any offer from the County for same. Had Ms. Williams or Mr. Wooden been interested in entertaining an offer from the County to purchase the property, such offer would be subject to standard due diligence, including but not limited to receiving clear title and Board approval, as well as an offset or other resolution of the County’s Judgment of $180,996, and the County’s prior recorded liens totaling approximately $45,252.36, which includes interest accruing from the date of the liens. The impasse was communicated to the owner via letter dated August 14, 2020 (attached as Exhibit C). Recommendations for Further Action In order to accomplish the intent of the Board to acquire the property so as to ensure that Lincoln Memorial Park will be properly cared for and maintained for posterity, and in light of the refusal of Ms. Williams or Mr. Wooden to negotiate, it is recommended in the best interest of the public that, assuming the Motion to Vacate Judgment is denied, the County proceed to execute on the Judgment and force the property to public auction where the County can bid in order to seek to acquire title. It is possible that another party will bid on the property, but any bidder would be required to pay the outstanding $180,996 judgment to the County, as well as the County’s Code enforcement liens, and be subject to the permanent injunction entered against the property requiring the property owner to timely remediate the outstanding Code violations at the cemetery. It is recommended that the County be authorized to bid and expend an amount up to $340,000, but in no way exceeding the sum of the Judgment, liens, and known encumbrances at the time of bid (currently estimated at $226,250), to purchase the property at auction. It is further recommended the Board authorize the expenditure of typical closing costs to finalize the purchase in the event the County has the winning bid. This price is the sum required to make the County whole on its Judgment, liens, and violations, and within the range established by the appraisals. Further, this amount relieves the current owner of the burden of the Judgment, liens, violations, and future maintenance, while allowing for the property to transfer to the County to properly maintain the property, and protect the heritage and dignity of those interred thereon, in perpetuity. The net out-of-pocket (cash) costs to the County would be limited to closing costs, and the net proceeds (cash) to the owner would be zero after accounting for the amounts due to the County. We look forward to further discussion on this important issue and will seek the Board’s direction at the next available Board meeting. This report will be placed on the next Board agenda pursuant to Ordinance No. 14-65. Should you need further information, please contact Tara C. Smith, Director, Internal Services Department, at 305-375-1135. Attachments c: Abigail Price-Williams, County Attorney Geri Bonzon-Keenan, First Assistant County Attorney Office of the Mayor Senior Staff Tara C. Smith, Director, Internal Services Department Maria I. Nardi, Director, Parks, Recreation and Open Spaces Department Yinka Majekodunmi, Commission Auditor Melissa Adames, Acting Director, Clerk of the Board Eugene Love, Agenda Coordinator EXHIBIT A APPRAISAL REPORT PREPARED FOR DAWN M.
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