TO: Mayor and Commissioners
FROM: Noel Pfeffer, City Attorney
DATE: April 19, 2016
Title
ATLANTIC CROSSING PROJECT
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Recommended Action:
Recommendation
WITH RESPECT TO THE ATLANTIC CROSSING PROJECT; MOTION TO EXERCISE THE CITY’S RECONVEYANCE RIGHTS PURSUANT TO THE “DECLARATION OF RESERVED RIGHTS AND AGREEMENT NOT TO ENCUMBER THE ABANDONED ALLEY”, BY APPROVING THE EXECUTION OF THE “RELOCATED 7TH AVENUE EASEMENT TERMINATION CERTIFICATE” TERMINATING THE RELOCATED 7TH AVENUE EASEMENT, AND AUTHORIZING THE CITY MANAGER TO SEND THE REQUIRED NOTICE TO DEMAND THE RELEASE OF THE ALLEY DEED, AND MOTION TO AUTHORIZE THE FILING OF COUNTERCLAIMS FOR DECLARATORY RELIEF DECLARING THE CITY IS ENTITLED TO OWNERSHIP OF THE ALLEYWAYS AND TO AUTHORIZE THE CITY ATTORNEY AND SPECIAL COUNSEL TO TAKE SUCH FURTHER ACTIONS AS MAY BE NECESSARY AND APPROPRIATE WITH RESPECT TO THESE ISSUES.
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Background:
As a consequence of the denial of the Atlantic Crossing appeal by the City Commission on April 5, 2016, the pending litigation is moving forward as required by the recent trial order. The City Attorney and special counsel are recommending the following additional actions in connection with the litigation.
1. Initiation of step two in the process for the revocation of the alleys. As you may recall, on August 26, 2015, the City Commission authorized the sending of the first letter exercising the City’s Reconveyance Right of the Abandoned Alleys, pursuant to the “Declaration of Reserved Rights And Agreement Not To Encumber The Abandoned Alley” (the “Agreement”), executed in 2009. Step two requires:
a. A demand for the release of the Abandoned Alley deed which is currently held in escrow; and
b. Execution of the “Relocated 7th Avenue Easement Termination Certificate”, the form of which was attached to the Agreement, and which must, pursuant to the Agreement, be executed and delivered to the escrow agent. This certificate will terminate the “Relocated 7th Avenue Easement”.
2. Authorization to file a counterclaim(s) for declaratory relief determining, among other things, that the City is entitled to ownership of the alleys and such other issues and relief as the City Attorney and special counsel deem appropriate.
The City Attorney and special counsel are recommending the following motions; (i) Motion to Exercise the City’s reconveyance rights pursuant to the “Declaration of Reserved Rights And Agreement Not To Encumber The Abandoned Alley”, by approving the execution of the “Relocated 7th Avenue Easement Termination Certificate” terminating the Relocated 7th Avenue Easement, and authorizing the City Manager to send the required notice to demand the release of the Alley deed, and (ii) Motion to authorize the filing of counterclaims for declaratory relief declaring the City is entitled to ownership of the alleyways and to authorize the City Attorney and special counsel to take such further actions as may be necessary and appropriate with respect to these issues.
Attached as back-up to this agenda item are copies of the demand letter, Relocated 7th Avenue Easement Termination Certificate, and the Declaration of Reserved Rights and Agreement not to Encumber the Abandoned Alley.