Title: RE-6 Broadmoor Seventh Amendment

Recommendation:

I recommend the School Board approve a Seventh Amendment to Purchase and Sale Contract with AIMCO and authorize the Chairman and Superintendent to execute all necessary documents.

Description:

The following is a brief history of the events leading up to the Seventh Amendment: 

• On April 11, 2007 the Board approved the Purchase and Sale Contract to purchase from AIMCO the Broadmoor Apartment Complex (Broadmoor) for use as a part of the new campus for Suncoast High School.  The Contract called for the transaction to close on or before June 1, 2007.

• Following Board approval of the Contract, Board staff advised the Miami Field Office of the Department of Housing and Urban Development (HUD) of the pending transaction and sought their assistance and approval of the transaction.  HUD’s review of the transaction began shortly thereafter however an approval or denial of Board’s request was not immediately forthcoming.

• Because HUD did not render a decision on the Board’s request prior to the scheduled closing date of June 1, the Contract was extended a total of five times, with the fifth extension running through August 31, 2007.  In exchange for the extensions, the entire amount of the Board’s $240,000 earnest money deposit went at risk.

• Following numerous conversations and correspondence between staff and HUD, on August 15, HUD advised staff that the School District did not satisfy the definition of “Owner” as set forth in the United States Housing Act of 1937 and therefore, HUD would not approve the School Board’s purchase of Broadmoor.

• On August 22, 2007, the essential elements of the Sixth Amendment to the Purchase and Sale Contract with AIMCO were approved.

• In order to keep the deal alive, a sixth extension was done extending the closing date until September 24^th.

• The essential elements are as follows:

For Additional Information, contact:

Joseph M. Moore (moorej@palmbeach.k12.fl.us)
Joseph M. Sanches

Attachments (list):
RE-6 Broadmoor Budget 9 6 07.pdf
RE-6 Broadmoor Budget.pdf