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TO: Mayor and City Council <br />FROM: City Administrator and City Attorney <br />DATE: August 30, 2019 <br />RE: SPECIAL MEETING OF THE CITY COUNCIL <br />Bay View Villas <br />The Developer of Bay Viewill s not able to close on his property yesterday. Several issues arose <br />that can be rectified by Council action as set forth in this memo. <br />r r TOO It_f Imp, please <br />move to adopt ,r <br />REVISED DOCUMENTS ISSUE: It is necessary for the Developer to revise its Agreements with the City for <br />the following reasons: <br />Pursuant to the City's requirements, the 100-day deadline to record their Plat expired on <br />8/30/2019. Entering into a newly dated Development Agreement will reset that 100-day <br />deadline. <br />• A revised Development Agreement and Conditional Use Permit will identify the new property <br />owner, Bayview Villas, LLC. <br />• As discussed below, a revised Development Agreement can properly identify liens from Chase <br />Bank and the I.R.S., and a new construction . <br />Revised versions of the Development Agreement and Conditional Use Permit are attached to Resolution <br />19-025, which follows this memo. <br />ISSUE:LIEN The Developer asks to Record the Bay View Villas Plat before it can obtain clean title <br />involving two liens: the IRS lien previously discussed with the Council and a lien from Chase Bank. <br />RECOMMENDATION: <br />understands d accepts the potential risks associated with this course of action. <br />RULE OF LAW: The City's Plat is a land use document that must be Recorded in the highest prior so that <br />it is not subject to any mortgage, lien, easement, or other land use encumbrance. <br />DISCUSSION: The Internal Revenue Services has a $400,000 lien on the land that will become the Plat for <br />the Bay View Villas. Chase Bank also has a $196,000 lien that Staff learned about after the last Council <br />meeting. At closing these liens will be paid off these liens will be paid -off by the Bank but the removal of <br />the liens from the property's title will take time. The Developer desires to record the Plat before the <br />liens may be removed. The City faces some risk in the unlikely event there is a problem with the process <br />of removing these liens. <br />