Restrictions

Restrictions

Exhibit II : Restrictions for Moderate Income Housing

AGREEMENT REGARDING

OVERSEAS MOTEL, VILLAGES AT HAWK'S CAY, AND

ACQUISITION AND EXTINGUISHMENT OF DEVELOPMENT RIGHTS

THIS AGREEMENT is entered into by and between the CITY OF MARATHON, FLORIDA, and JOHN R. ALLISON, III, TRUSTEE, and is binding on the "Effective Date" set forth in Section V herein.

WITNESSETH:

WHEREAS, the Overseas Motel was the first motel built in the City of Marathon (1938) and is of historic and community interes because of its location on U.S. 1 and its expression of Florida Keys art deco style; and

WHEREAS, the Overseas Motel is in a deteriorating condition and the City of Marathon desires to provide for the restoration and preservation of this unique Florida Keys historic and community resource; and

WHEREAS, there are currently thirty-five (35) units of transient and permanent housing on the Overseas Motel property, consisting of twenty-four (24) units in the motel and ten (10) mobile homes rented transiently, for a total of thirty-nine (39) bedrooms, and one (1) single family home with two (2) bedrooms; and

WHEREAS, the Overseas Motel property is located at Lot 3 and part of Lot 4, Block 4 of the Marathon Beach Subdivision as recorded in Plat Book 2, page 16, of the Public Records of Monroe County, Florida and

WHEREAS, the Overseas Motel is directly north across U.S. 1 from the City of Marathon Community Park and Marina; and

WHEREAS, JOHN ALLISON, TRUSTEE, is the authorized representative of the Village at Hawk's Cay Development of Regional Impact ("Hawk's Cay") in Monroe County, Florida, for purposes of this Agreement, and represents that he is authorized to enter into this Agreement on behalf of Hawk's Cay; and

WHEREAS, on June 19, 2002, the Monroe County Board of County Commissioners adopted Resolution No. 266-2002 amending the Hawk's Cay DRI Development Order to authorize development of an additional twenty-eight (28) market rate units at Hawk's Cay at such time as the applicant receives and extinguishes a corresponding Rate of Growth Ordinance ("ROGO") allocation or an equivalent number of bedroom/bath combinations from a site or sites within the Middle Keys sub area of Monroe County, Florida; and

WHEREAS, Monroe County Resolution No. 266-2002 further provides that "if the site of the acquired units is within a separate municipality, the municipal government must, by resolution, approve the extinguishments and acknowledge that any new units on the site of the acquired units must receive a ROGO award"; and

WHEREAS, the City of Marathon is a municipality in the Middle Keys sub area of Monroe County, Florida; and

WHEREAS, Hawk's Cay employs a number of persons who reside in the City of Marathon, is an integral part of the economy of the City of Marathon and the Middle Keys, attracts tourism to the City of Marathon and the Middle Keys, and is a large contributor to the economic success of the District 3 Tourist Development Area of Monroe County; and

WHEREAS, JOHN ALLISON, TRUSTEE, has entered into a contract to purchase the Overseas Motel, acquire ROGO exempt transient units for the benefit of Hawk's Cay, and extinguish such units on the Overseas Motel site; and

WHEREAS, the ROGO exempt transient units to be acquired and extinguished from the Overseas Motel site under this Agreement will not exceed those already in place on the Overseas Motel property; and

WHEREAS, the Overseas Motel was in existence at the time of Monroe County's analysis and census of existing dwelling units in April 1990, the results of which formed a major basis of the ROGO Ordinance cited above; and

WHEREAS, the City of Marathon acknowledges that the Overseas Motel, which presently consists of thirty-four (34) transient units and one (1) non-transient unit on 1.38 acres, a density of twenty-four (24) units an acre, is in excess of the density allowed by the City's Interim Comprehensive Plan (herein "Plan") and land development regulations; and

WHEREAS, the City Plan contains objectives and policies that seek to reduce the frequency of uses inconsistent with the Plan and land development regulations; and

WHEREAS, the City of Marathon wishes to reduce the transient residential density of the Overseas Motel and provide moderate-income work force housing in the City; and

WHEREAS, this Agreement will meet objectives and policies of the City's Plan with regard to infill, protection of historic resources and affordable work force housing; and

WHEREAS, mobile homes and recreational vehicles in the Florida Keys are at risk of severe damage in the event of even a moderate hurricane and thereby pose a risk to human life, and it is therefore desirable to eliminate or reduce their usage where reasonably possible; and

WHEREAS, this Agreement will result in the removal of ten (10) mobile homes that are used as transient rentals at the Overseas Motel; and

WHEREAS, thirty-five (35) cesspits or noncompliant septic tanks will be removed from the Overseas Motel property as a result of the renovations described in this Agreement; and

WHEREAS, the City of Marathon has determined that this Agreement is in the public interest and will further the health, safety and welfare of the residents of the City of Marathon.

NOW, THEREFORE, in consideration of the mutual promises and undertakings contained herein, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

I. RECITALS.

The recitals set forth in the preceding "Whereas" clauses are incorporated herein and form a material part of this Agreement.

II. PURPOSES OF AGREEMENT.

The primary purposes of this Agreement are:

To create work force housing in the City of Marathon.
To preserve a community and historic resource (the Overseas Motel)
To allow the Village at Hawk's Cay, a significant contributor to the economic vitality of the City of Marathon, to acquire and benefit from ROGO exempt transient units at the Overseas Motel (24 motel units and 10 mobile homes) in the City of Marathon.
To reduce by seventeen (17) the number of recreational vehicle units or sites, ROGO equivalent units, or other units in the City of Marathon.
To provide a benefit to the City of Marathon by a donation of $100,000.
To provide a benefit to the City of Marathon by the removal of 35 cesspits and/or noncompliant septic tanks, by replacement of those cesspits or noncompliant septic tanks with wastewater and sewage treatment facilities that meet applicable regulatory requirements and will serve eleven (11) work force housing units at the Overseas Motel property, and by transferring excess cesspit nutrient credits to the City of Marathon.

III. TERMS OF AGREEMENT

A. Legal Description, Ownership and Equitable Interest in Overseas Motel Property.

The legal description of the Overseas Motel property subject to this Agreement is set forth in Exhibit A attached hereto and made a part hereof. The owner of the Overseas Motel as of the date of this Agreement is Richard Elgersma, 3600 Overseas Highway, Marathon, Florida, 33050. The contract vendee of the Overseas Motel is John Allison, Trustee, 100 Southeast Second Street, Miami, Florida 33131-2151. There are no other legal or equitable owners of the Overseas Motel known to the parties to this Agreement.

B. Acquisition and Extinguishment of ROGO Exempt Units from Overseas Motel for Benefit of Hawk's Cay.

The City of Marathon hereby approves the Trustee's acquisition of thirty-four (34) ROGO exempt transient units consisting of twenty-four (24) motel units and ten (10) mobile homes which are represented by the Trustee to contain thirty-nine (39) bedrooms, from the Overseas Motel property for the benefit of the Hawk's Cay DRI in Monroe County, Florida and expressly approves the extinguishment of those thirty-four (34) ROGO exempt transient units (39 bedrooms) on the Overseas Motel property. The parties acknowledge that Monroe County, not the City of Marathon, is responsible for verifying the number of bedrooms in the Overseas Motel units in order to satisfy the conditions contained in Monroe County Resolution No. 266-2002.
The City's approval of the acquisition of ROGO exempt transient units under this Section B is conditioned upon the Trustee's provision of a performance guarantee as provided in Section D.4 of this agreement.
The thirty-four (34) ROGO exempt units at the Overseas Motel shall be deemed extinguished upon the issuance of building permits by Monroe County Resolution No. 266-2002, and and the final resolution of any challenge to such building permits affirming Hawk's Cay's ability to develop the market rate units. The Trustee shall provide to the City evidence that permits for market rate units have been issued by Monroe County. The City of Marathon acknowledges that once the thirty-four (34) ROGO exempt units are acquired and extinguished for the benefit of Hawk's Cay under the terms of this Agreement, any new or replacement unit on the Overseas Motel property must receive a ROGO allocation or transfer.

C. Allocation of ROGO Affordable Housing Units to Overseas Motel.

The City of Marathon acknowledges that it is entitled to an allocation of ROGO affordable housing units from Monroe County. Unless such units have been previously transferred to the City, upon execution of this Agreement, the City shall request and diligently pursue the transfer to the City of not less than ten (10) ROGO affordable housing units from Monroe County.
Within thirty (30) days after the effective date of an agreement between the City and Monroe County for transfer of ROGO affordable housing units to the City, the City shall allocate ten ROGO affordable housing to the Overseas Motel property for renovation and development of ten (10) moderate-income work force housing units. The City shall work diligently to obtain such an executed agreement with Monroe County as soon as practicable after the effective date of this Agreement.

D. Density, Renovation and Use of Overseas Motel Property; Site Plan; Cesspit Credits.

After the acquisition and extinguishment of ROGO exempt units and an allocation of ten (10) ROGO affordable housing units as described in the preceding section, the Overseas Motel property shall consist of a maximum density of eleven (11) dwelling units on the 1.38-acre site, calculated as follows:

a. Nine (9) Trustee Units:

i. One (1) non-transient unit remaining on site to be renovated by the Trustee as moderate-income work force housing.

ii. Eight (8) units in existing structures to be renovated for moderate-income work force housing pursuant to eight (8) of the ten (10) ROGO affordable allocations provided by the City.

b. Community Land Trust Units:

Two (2) additional units of moderate-income work force housing to be built by the Community Land Trust pursuant to two (2) of the ten (10) ROGO affordable housing allocations provided by the City, as provided in Section F.2 below.

2. Not later than twenty-one (21) days after the date of this Agreement, JOHN ALLISON, TRUSTEE, shall submit to the City of Marathon a plan for the renovation of nine (9) dwelling units on the motel property, consistent with the conceptual site plan attached hereto as Exhibit B and incorporated herein. The renovation plan shall include, but not to be limited to, the following:

a. Removal of the ten (10) mobile homes on the Overseas Motel property.

b. Renovation of the existing Overseas Motel buildings in a manner that maintains the style and character of those existing buildings. The renovation must comply with all applicable provisions of the City Code.

c. Removal of the 35 cesspits or noncompliant septic tanks on the Overseas Motel property, and transfer of excess nutrient reduction credits to the City as provided in Section D.7 of this Agreement.

d. A requirement that the nine (9) moderate-income work force housing units renovated by the Trustee be served by existing or to-be-constructed secondary wastewater and sewage treatment facilities that have capacity to serve the units and that comply with all applicable regulations, as provided in Section G.4 of this Agreement.

No certificate of occupancy shall be issued until all plans are approved and the Trustee has complied with all permit conditions and all terms and conditions of this Agreement.

3. Within thirty (30) days after issuance of building permits for the renovation of the Overseas Motel property by the Trustee, work on the renovation shall commence and shall continue until completion in accordance with the approved site plan, building permits, and applicable provisions of the City Code.

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