TO: CRA Board of Commissioners
FROM: Christine Tibbs, Assistant Director
THROUGH: Renée A. Jadusingh, Esq., Executive Director
DATE: January 28, 2020
Title
NOTICE OF DEFAULT - PURCHASE AND SALE AGREEMENT - BH3 MANAGEMENT, LLC - SW 600-800 BLOCKS OF W. ATLANTIC AVENUE
Body
Recommended Action:
Board Direction.
Body
Background:
At the April 9, 2019, CRA Board Meeting, the CRA Board approved the Purchase & Sale Agreement (“Agreement”) for the SW 600-800 Blocks West Atlantic Avenue Properties with BH3 Management LLC (“BH3”). A First Amendment to the Agreement was approved by the CRA Board on August 13, 2019, to correct scriveners’ errors in the document. A Second Amendment to the Agreement was approved on November 19, 2019, to extend the Application Date, the date by which BH3 needs to submit their applications to the City of Delray Beach (“City”) and other applicable governmental entities for approval, by sixty (60) calendar days from November 18, 2019, to January 17, 2020.
Section 10 of the Agreement, entitled “Default by Purchaser”, currently states:
“The Purchaser shall be deemed to be in default hereunder only upon the occurrence of any of the following events (and only after written notice has been provided to Purchaser whereby Purchaser has a 30-day period to cure, said cure period had expired, accounting for any Force Majeure extensions), to-wit:
(a) In the event that Purchaser fails to file an application for government approvals with the necessary documentation required by the governmental entities and an application for conditional use approval necessary for the development, and construction of the Project; with the City or any other governmental entity on or before the Application Date,
(b) In the event the Purchaser fails to obtain all necessary approvals on or before the Approval Date because of Purchaser's actions or inactions,
(c) In the event that the Purchaser fails to close the transaction on or before the Closing Date and such fai...
Click here for full text