1100 Okeechobee Rd. Give-A-Way
October 30, 2021
This story contains emails between the City and business people interested in the sale of 1100 Okeechobee Rd; along with 2 Commercial Contracts and a Agreement for Sale and Purchase of Real Property I found the communication interesting, telling, and a bit long. I ask readers to pay attention to the dates when reading the emails. The entire PRR (Public Records Request can be read below, if you have the courage-go for it.
Original contracts for 1100 Okeechobee Rd. can be read and Marto Rentals offered $700,000.00 and the city accepted the offer, drew up the 23 page Agreement for Sale and Purchase of Real Property without the benefit of 2 appraisals as required by Code of Ordinances. City eventually asked for and received a fair market value of $775,000.00, and a new contract was issued.
Commercial Contract
Gladstone Realty Investment Corp, (TBD) offered $875,000.00. Contract consisting of 8 pages was signed 10/15/2021
Commercial Contract
Keith Beaty Buyers Broker JON Schmid & Associates offered $900,000.00. Contract consisting of 8 pages was signed 10/16/2021 This is a dad/son operation and you will read emails by the son Mark.
City Commission Meeting held Oct 18 2021
9.2 Public Hearing and First Reading of Ordinance No. 4954-21 authorizing the sale and conveyance of property located at 1100 Okeechobee Road to Marto Rentals 2, LLC for $775,000.
Background Information: In part reads:
On April 5, 2021, the City received a letter of intent to purchase the property from Marto Rentals 2, LLC.
The interested party intends to utilize the site for expansion of Property Works, a minority-owned small business located at a neighboring site and intends to create 10 -15 local jobs to be offered to West Palm Beach residents.
The Ordinance must be approved by 4/5 of the Commission at either First
or Second Reading, or both, as required by Sec. 2-31(27) of the Code. Meaning 4 of the 5 Commissioners must agree to sell. If a Commissioner is absent and there is a tie vote Mayor James will vote to approve. Both Peduzzi & Lambert were absent on 10/18/21.
The registered agents for Marto Rentals 2, LLC are also the owners of Property Works, a current vendor of the City who provides landscape and maintenance services to various Departments. An ethics opinion was provided by the City’s Ethics Officer which determined that transaction does not present a prohibited conflict. Really?
E-Mails
Emails from Alexander Millan to the City concerning 1100 Okeechobee Rd. Offered $800,000.00
From: Alexander Millan <[email protected]>
Sent: Saturday, October 2, 2021 5:31 PM
To: Jennifer Ferriol <[email protected]>
Subject: 1100 Okeechobee Rd.
“The reason for my email is I noticed 1100 Okeechobee Rd. was declared surplus and Property Works is trying to buy it. We are also interested in purchasing the property. What is the process for submitting a bid?”
(City) On Mon, Oct 4, 2021 at 11:24 AM Jennifer Ferriol <[email protected]> wrote:
Hello Alexander,
As it relates to your inquiry, the City received an unsolicited proposal to purchase the building. As you know, the City Commission has authorized for us to formally negotiate with the interested party and we are moving forward with that direction. Do you have a purchase price in mind?
From: Alexander Millan <[email protected]>
Sent: Tuesday, October 5, 2021 3:10 PM
To: Jennifer Ferriol <[email protected]>
Subject: Re: 1100 Okeechobee Rd.
“Do we get one chance to submit an offer or is there a bidding process?”
(City) On Tue, Oct 5, 2021 at 3:27 PM Jennifer Ferriol <[email protected]> wrote:
Hello Alexander,
“As per my email below, we have already accepted the unsolicited offer from the interested party and the City Commission has authorized for us to formally negotiate with them.
In accordance with the code, we are not to follow any process outside of what the City Commission has authorized for us to do. As such, we plan on bringing forward the negotiated agreement in a future meeting.
I was simply inquiring on a potential purchase price to determine if it warrants other considerations.”
***********************************************************************
From: Alexander Millan <[email protected]>
Sent: Wednesday, October 6, 2021 11:04 AM
To: Jennifer Ferriol <[email protected]>
Subject: Re: 1100 Okeechobee Rd.
“Following up to see if the city will entertain our offer?”
(City) On Wed, Oct 6, 2021 at 11:57 AM Jennifer Ferriol <[email protected]> wrote:
“Hi Alex,
“I will inform the City Commission and have them review for consideration.”
From: Alexander Millan <[email protected]>
Sent: Wednesday, October 6, 2021 12:01 PM
To: Jennifer Ferriol <[email protected]>
Subject: Re: 1100 Okeechobee Rd.
“Thank you! Please let me know if you need any further information. Have a great day!”
On Mon, Oct 11, 2021 at 6:47 PM Alexander Millan <[email protected]> wrote:
“When will our offer be presented to the commission? I’ve been talking with our architect about making renderings of the remodel and improvements we would perform on the buildings and I’d like to see if we have enough time” The City did not respond to the email
On Wed, Oct 13, 2021 at 8:55 AM Alexander Millan <[email protected]> wrote:
Hi Jennifer,
“Following up on the timeline to see if we have time for renderings.
Best, Alex The City did not respond to email
From: Alexander Millan <[email protected]>
Sent: Friday, October 15, 2021 8:31 AM
To: Jennifer Ferriol <[email protected]>
Subject: Re: 1100 Okeechobee Rd.
“I saw on the draft agenda for the October 18th commission meeting the sale of 1100 Okeechobee is on there for $775,000. As I mentioned, our offer is $800,000 and I believe we are better buyers for the property. Our intentions are to completely renovate the property to transform it into industrial office space to attract high quality businesses and jobs to the area. As it is very clear, the direction of the neighborhood is more in line with that vision. I believe selling the property to be used as a landscape yard is a great under utilization and doesn’t add great value to the neighborhood.”
(City) On Fri, Oct 15, 2021 at 12:14 PM Jennifer Ferriol <[email protected]> wrote:
“Alexander:
The City Commission will be made aware that there are other organizations that are interested and will have the ability to make a decision on how they would like to proceed. I will include your intent and proposal in my presentation on Monday.”
From: Alexander Millan
Sent: Fri, 15 Oct 2021 15:57:30 -0400 (3:57PM)
To: Jennifer Ferriol
Subject: Re: 1100 Okeechobee Rd.
“Thank you for the update, Jennifer! I appreciate your time and consideration. Have a great weekend!”
Emails from Mark Schmid to the City concerning 1100 Okeechobee Rd. Offered $900,000.00
From: Mark Schmid <[email protected]>
Date: Mon, Oct 11, 2021 at 9:57 AM
Subject: 1100 Okeechobee Rd, WPB, FL. 33401
To: <[email protected]>
Jennifer,
“My name is Mark Schmid and I’m a Real Estate Associate in West Palm Beach. I have a client that wants to purchase the City property located at 1100 Okeechobee Rd, WPB FL. 33401. Can you call me back or email me to provide further assistance on the sale of this property?” The City did not respond to the email.
From: Mark Schmid <[email protected]>
Sent: Thursday, October 14, 2021 3:27 PM
To: Kelly Shoaf <[email protected]>
Cc: Joseph Peduzzi <[email protected]>
Subject: Fwd: 1100 Okeechobee Rd, WPB, FL. 33401
To all,
“My name is Mark Schmid and I’m a Real Estate Associate in West Palm Beach. I have tried contacting Jennifer Ferriol by phone and email regarding the City property located at 1100 Okeechobee Rd, PCN#: 74-43-43-28-09-008-0010 and to this date there has been no reply. Over the years my company has been told repeatedly that if this property was for sale by the City that there would be an RFP and a formal notification.
This property is owned by the taxpayers of WPB. The Mayor and Commission have an obligation to sell it to the highest bidder not take the first unsolicited proposal.”
Mark Schmid
(City) On Thu, Oct 14, 2021 at 3:41 PM Armando Fana <[email protected]> wrote:
“Hello Mr. Schmid,
“The City is following the allowed process under the City Charter. Although price is a consideration it is not the only consideration that government entities follow when reviewing a property disposition as there are other public benefits that are of value. For example the City has donated properties for the development of affordable housing.
The proposal that is being considered is above the appraised value and provides additional public benefits. I’ve CC’d Ms. Ferriol who will reach out to answer any further questions you may have.”
Regards,
Armando Fana
From: Mark Schmid <[email protected]>
Sent: Thursday, October 14, 2021 4:13 PM
To: Armando Fana <[email protected]>
Cc: Kelly Shoaf <[email protected]>; Joseph Peduzzi <[email protected]>; Christina
Lambert <[email protected]>; Christy Fox <[email protected]>; Keith James
<[email protected]>; Shalonda Warren <[email protected]>; Jennifer Ferriol
Subject: Re: 1100 Okeechobee Rd, WPB, FL. 33401
“Armando,
Thank you for the quick response. I meant to CC everyone in the email but I accidentally BCC’d some of the commissioners. From my understanding, in order for the City to sell property they have to form an RFP and present it to the public. Please read below:
Legislative declaration of surplus and method of disposition. Prior to the commencement of formal negotiations for the sale, lease or exchange of city property, the subject property shall first be presented to the city commission so that the city commission may by resolution (by simple majority vote):
1. Make a legislative finding that the city property is not needed for city purposes and declare the property surplus; and
2. Select a method of disposition as follows by:
i. Authorizing formal negotiations with interested parties;
ii. Issuing a competitive request for proposals from interested parties;
iii. Issuing a competitive invitation to negotiate for interested parties;
iv. Authorizing disposition by auction and establishing the minimum acceptable bid and other parameters to allow disposal at action; or
v. Submitting to the electors in a referendum the question as to whether or not the property should be sold.
“If the city commission selects disposition by request for proposals or invitation to negotiate, the request for proposals or invitation to negotiate shall be approved by the city commission prior to publication of the notice and issuance of the request for proposals or invitation to negotiate. Any request for proposals approved under this subsection (27) shall establish the criteria for proposal award. Any contract for the sale or disposal of real property shall be approved by ordinance and by a super-majority vote of the city commission in accordance with subsection (27)e. of this section.”
(City) “On Thu, Oct 14, 2021 at 5:46 PM Armando Fana <[email protected]> wrote:
“It can be one or more than one. We received an offer that includes an over appraised value price and other public benefits that we deemed as valuable to the City’s interest. That has been presented to the City Commission.”
From: Mark Schmid <[email protected]>
Sent: Thursday, October 14, 2021 5:51:11 PM
To: Armando Fana <[email protected]>
Cc: Jennifer Ferriol <[email protected]>; Kelly Shoaf <[email protected]>; Joseph Peduzzi
<[email protected]>; Christina Lambert <[email protected]>; Christy Fox <[email protected]>; Keith
James <[email protected]>; Shalonda Warren <[email protected]>
Subject: Re: 1100 Okeechobee Rd, WPB, FL. 33401
“Armando,
It states “Parties” (more than one). Can I make an offer?
Thanks, Mark”
(City) On Thu, Oct 14, 2021 at 5:59 PM Armando Fana <[email protected]> wrote:
“Absolutely you can. We are way down the line with the negotiations on the offer that we have so I’m not saying it will be accepted or considered but you can present an offer through Housing and Community Development and we will certainly take a look at it.”
From: Mark Schmid <[email protected]>
Sent: Thursday, October 14, 2021 6:18:28 PM
To: Armando Fana <[email protected]>
Cc: Jennifer Ferriol <[email protected]>
Subject: Re: 1100 Okeechobee Rd, WPB, FL. 33401
“Armando,
I will get you an offer tomorrow. Can you provide me with the appropriate contact info to send the offer to? Thank you for your time and efforts.
Thanks, Mark”
From: Armando Fana
Sent: Thu, 14 Oct 2021 22:26:01 +0000 (10:26PM)
To: Mark Schmid
Cc: Jennifer Ferriol
Subject: Re: 1100 Okeechobee Rd, WPB, FL. 33401
“Hey Mark,, you can send it to Jennifer. Thanks”
From: Mark Schmid <[email protected]>
Sent: Saturday, October 16, 2021 3:23:53 PM
To: Jennifer Ferriol <[email protected]>
Subject: 1100 Okeechobee Rd Offer
Jennifer,
Please see attached 2nd offer for 1100 Okeechobee Rd. Please confirm that you have
received both offers.
Thanks, Mark
From: Jennifer Ferriol
Sent: Sun, 17 Oct 2021 18:14:38 +0000 (6:14 PM)
To: Mark Schmid
Subject: Re: 1100 Okeechobee Rd Offer
Hello Mark,
“Received. Thank you.”
Jennifer Ferriol
Emails from Martin Murphy to the City concerning 1100 Okeechobee Rd.
From: [email protected] <[email protected]>
Sent: Thursday, October 14, 2021 4:28 PM
To: Andre D. Lewis <[email protected]>
Cc: Jennifer Ferriol <[email protected]>; Christina Lambert <[email protected]>
Subject: City of WPB City Commission – 10/18/2021 – Draft Agenda – Section 10.2
“Mr. Lewis,
My name is Martin Murphy, with JAMCO, Inc. We noticed in section 10.2 of the City Commission Draft Agenda set for this Monday that the property located at 1100 Okeechobee Rd. has staff recommendation to sell to a private entity. We are long time property owners in this area and have been interested in this property since the City acquired it. When we have reached out to the City in the past we were told that, if the property would be put up for sale, it would be offered in an RFP or other formal notification. Can you please tell us if an RFP or formal notification was previously advertised? We remain interested in the property and would like to be included in the process if possible.
Thank you.”
Sincerely,
JAMCO, Inc.
Martin E. Murphy
President
From: Jennifer Ferriol <[email protected]>
Sent: Thursday, October 14, 2021 5:10 PM
To: [email protected]; Andre D. Lewis <[email protected]>
Cc: Christina Lambert <[email protected]>
Subject: RE: City of WPB City Commission – 10/18/2021 – Draft Agenda – Section 10.2
“Hello Martin,
In accordance with Section 2-31 of the City’s Code of Ordinances, prior to the formal negotiations, the City Commission must make a determination that the property is not needed for City purpose and must declare the property as surplus and select one method of disposition. The method of disposition may be formal negotiations with an interested party as detailed in your email below. In the case of property located at 1100 Okeechobee Rd, a surplus declaration and method of disposition was determined at the September 7th meeting via resolution 145-21. Feel free to contact me directly at 561-822-1276 for further discussion”
From: [email protected] <[email protected]>
Sent: Friday, October 15, 2021 10:35 AM
To: Jennifer Ferriol <[email protected]>; Andre D. Lewis <[email protected]>
Cc: Christina Lambert <[email protected]>
Subject: RE: City of WPB City Commission – 10/18/2021 – Draft Agenda – Section 10.2
“Jennifer – thank you very much for the quick response. However, we are not a little disappointed that this is the path the City is taking regarding the sale of 1100 Okeechobee Road property. We have inquired numerous times over the past 31 years about the possibility of purchasing the 1100 Okeechobee Road property since the City obtained it in 1990 and were never told that we could effectively make an offer to purchase that would be considered in this fashion. Reading section 14 of the attached agenda from September 7th, it states that an offer was made on April 5, 2021 and the City has decided to sell without investigating if other higher offers would be available for their benefit. We assume that the offer was unsolicited, is this correct? Is there a reason the City would not explore the possibility of receiving a potential higher offer for the property? We are long time property owners (The Murphy Construction Co./JAMCO, Inc.) within the City limits of West Palm Beach, in this very City district, that have paid our property taxes since 1925. As stated in the initial email, would like to have the opportunity to pursue the potential purchase of the property. Please advise if we have an chance to participate in such or not. If this items remains on the Agenda, I plan on attending the Monday City Commission meeting and reiterating out position above.”
Thank you.
Sincerely,
JAMCO, Inc.
Martin E. Murphy
From: Jennifer Ferriol
Sent: Friday, October 15, 2021 12:12 PM
To: [email protected]; Andre D. Lewis <[email protected]>
Cc: Christina Lambert <[email protected]>; Armando Fana <[email protected]>; Philip Harris <[email protected]>
Subject: RE: City of WPB City Commission – 10/18/2021 – Draft Agenda – Section 10.2
Martin:
“In accordance with Section 2-31 of the City’s Code of Ordinances, the City has the authority to accept unsolicited proposals and formally negotiate with the interested party. Based on the proposal received, City staff made a determination that the purchase price and public benefits provided where suitable to bring forward for consideration by the City Commission. Although price is an obvious consideration, it is not the only aspect that we review when determining property disposition as there are other public benefits that are of value. At this moment, we intend to move forward with the agenda item . The City Commission will be made aware that there are other organizations that are interested and will have the ability to make a decision on how they would like to proceed. We welcome your feedback and public comment.
I hope this email answers your questions. Please let me know if I could be of further assistance.
From: Jennifer Ferriol <[email protected]>
Sent: Friday, October 15, 2021 12:17 PM
Cc: Armando Fana <[email protected]>; Philip Harris <[email protected]>
Subject: RE: City of WPB City Commission – 10/18/2021 – Draft Agenda – Section 10.2
“Martin:
As a follow-up, do you have a purchase price and intent in mind? Again, I will be presenting to the Commission and would like to have as much information as possible so that they could make an informed decision.”
Jennifer Ferriol
From: [email protected] <[email protected]>
Sent: Friday, October 15, 2021 1:08 PM
To: Jennifer Ferriol <[email protected]>
Cc: Armando Fana <[email protected]>; Philip Harris <[email protected]>; Christina Lambert <[email protected]>
Subject: RE: City of WPB City Commission – 10/18/2021 – Draft Agenda – Section 10.2
“Jennifer – thank you again for the very quick response. I don’t have a purchase price at this time unfortunately, we just noticed the agenda item for this coming Monday. The real estate market is very active and we would like to take a look at the site/structures prior to offering a purchase price.
Thank you.
Sincerely,
JAMCO, Inc.
Martin E. Murphy
From: Jennifer Ferriol
Sent: Fri, 15 Oct 2021 20:30:05 +0000 (8:30PM)
Cc: Armando Fana;Philip Harris;Christina Lambert
Subject: RE: City of WPB City Commission – 10/18/2021 – Draft Agenda – Section 10.2
“Martin:
Understood. I will express your interest to the City Commission in order for them to make a determination on how to proceed. Have a great weekend! “
Jennifer Ferriol.
email below between the City and buyers Marto Rentals 2, LLC. and Pworks, better known as Tony and Jason.
(City) On Sep 27, 2021, at 2:43 PM, Jennifer Ferriol <[email protected]> wrote:
Hello Tony and Jason:
Find attached the agreement for sale of property located at 1100 Okeechobee Road. Please review and provide comments, as needed. Otherwise, please execute and return to my attention via email. As a reminder, we intend to seek first approval at the October 18th City Commission meeting. If you have any questions, do not hesitate to contact me.
From: Jason Pworks
Sent: Thu, 30 Sep 2021 16:12:41 +0000 (4:12 PM)
To: Jennifer Ferriol
Cc: Antonio Batallan
Subject: Re: 1100 Okeechobee Road – Sale Agreement
Importance: High
Hello,
Contract looks acceptable just a few small things.
Section 3.1 says time for redevelopment, we intend to remodel not redevelop the two are different and I would prefer it say remodel.
Section 3.3 says 6 month after CO from redevelopment once again we are planing on remodeling not redeveloping, also the 10 employees will not be employees of the entity buying the property (Marto rentals 2 LLC) they will be employed by other entities owned by me. Also include Not withstanding market availability of employees
Section 12.3 again says redevelopment THANKS!
PRR (Public Records Request can be read here. 1100 Okeechobee Rd.
And there you have it, the deal is done, and this is a good example of why the City gets sued so often. Remember the no bid PSC Security contract. Couldn’t give our 1st responders a new contract for over a year because the city was so short of funds, but they walk away and leave $125,000 on the table. If folks are foolish enough to give Mayor James a second term, they will get the leadership they deserve.
The end