Recommendation Concerning Default on the Purchase of 2 County-Owned Real Properties Located at 13 Elegans Avenue and 200 Block Seamarge Lane - Stephan Hall, Budget Manager, Management and Budget Services
That the Board take the following action concerning Default on the Purchase of 2 County-Owned Real Properties Located at 13 Elegans Avenue (Account #: 08-4039-000, Reference #: 59-2S-30-1000-010-017) and 200 Block Seamarge Lane (Account #: 08-4370-000, Reference#: 59-2S-30-2700-003-038). Both parcels are located in District 2:
A. Declare James D. Homyak, the successful bidder of both parcels referenced above, to be in default of the terms of the Contracts between him and the County for the purchase of the County-owned parcels located at 13 Elegans Avenue and 200 Block Seamarge Lane for failure to close in the timeframe prescribed by the terms of the Contracts;
B. Retain the deposits made by Mr. Homyak, in the amount of $1,282.50 for the parcel located at 13 Elegans Avenue, and $1,010 for the parcel located at 200 Block Seamarge Lane; and
C. Authorize the parcels to be re-advertised for sale at another auction.
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James Homyak was the successful bidder in the surplus real property auction ending December 11, 2017, wherein he bid $12,825 for the parcel located at 13 Elegans Avenue and $10,100 for the parcel located at 200 Blk Seamarge Lane. On December 13, 2017, Mr. Homyak completed the 10% Deposit and Purchase forms and submitted bid deposits to the County in the amount of $1,282.50 and $1,010 respectively for the aforementioned parcels. The County Attorney's Office mailed a set of closing documents for each parcel to Mr. Homyak on December 29, 2017. Mr. Homyak executed and submitted the Agreement for Sale and Purchase, for each parcel, on January 28, 2018. The Board's Chairman executed both Agreements on February 1, 2018.
Per the terms of the Agreement(s) for Sale and Purchase, Section 11, "Closing shall occur on or before 30 days from the date the last party executes this Agreement unless the date for closing is extended by written agreement of the parties or as otherwise provided herein." The Chairman was the last party to execute the Agreements. Therefore, technically, Mr. Homyak should have closed by March 3, 2018; however, the closing was delayed so that his written communication request for the Board to release its interest in the mineral rights of these parcels could be heard by the Board at its March 1, 2018 meeting. At that meeting, the Board did vote to release its interest in the mineral rights. The County's Attorney's Office mailed an updated set of closing documents (to delete the paragraph reserving interest in the mineral rights). Mr. Homyak has now requested that the closing be postponed until he can get clear title. Further delay, per Mr. Homyak's request, would allow Mr. Homyak another 2 months to close on the parcel located at 13 Elegans Avenue, and allow him another 8 months to close on the parcel located at 200 Blk Seamarge Lane. Such delays would have allowed Mr. Homyak 6 months from the auction win date to close on one parcel and 1 year to close on the other, both of which are outside of the terms of the contracts. Due to the timing of the escheatments to the County, Mr. Homyak is of the opinion that he will have more insurable title if he delays the closings.
Pursuant to the terms of the contract(s), a certified letter was mailed to Mr. Homyak on April 5, 2018 by the County Administrator, advising Mr. Homyak that if he did not proceed to closing the Administrator would recommend the Board find him in default of the terms of the contract, retain his bid deposit, and authorize the properties to be re-advertised for another auction. A copy of the letter and proof of receipt is attached. |