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MAY -14 1991 <br />DEVELOPER'S AGREEMENT (HAWK'S NEST MGMT.) SUBSTITUTE MORTGAGE <br />The Board reviewed memo from Attorney Collins: <br />TO: The Board of County Commissioners <br />FROM: u;CP William G. Collins II - Assistant County Attorney <br />DATE: May 1, 1991 <br />SUBJECT: Hawk's Nest Management, Inc. - Developer's Agreement <br />Bruce Barkett, representing Hawk's Nest .Management, Inc., has <br />requested that the developer be allowed to give the County a mortgage <br />on the Hawk's Nest property in .the amount of $81,837.45 as substitute <br />collateralfor for a letter of credit in the same amount which now runs in <br />favor of the Board of County Commissioners from Barnett Bank. The <br />letter of credit is due to expire August 16, 1991. <br />The mortgage would- secure a developer's agreement to construct a <br />2 -lane, 24 -foot wide paved road within Storm Grove Road right-of-way <br />between the FEC Railway and the Lateral G Canal on the Hawk's Nest <br />property. <br />The original 1985 agreement provided that "Developer may, at any time, <br />substitute guarantees subject to the approval_ as to form and amount by <br />the County." The right . to 'substitute guarantees, subject to approval <br />by the County, was carried over into a subsequent amendment to the <br />Developer's Agreement. <br />RECOMMENDATION: <br />I recommend that the Board of County Commissioners approve the <br />substitution of a mortgage on the property for a letter of. credit. <br />Consistent with the terms of the original agreement, the following <br />conditions must be met: <br />A. The mortgage is not more inferior than a second mortgage. <br />B. The principal balance of the mortgage plus the principal balance of <br />any first mortgage does not exceed 70% of the appraised value of <br />the property, as expressed by an appraiser acceptable to the <br />County Attorney's Office. <br />Also, a title insurance commitment and policy must be provided by the <br />applicant, Hawk's Nest Management, Inc., prior to acceptance of the <br />mortgage. The mortgage must be in a form acceptable -to the County <br />Attorney's Office. <br />ON MOTION By Commissioner Scurlock, SECONDED by Com- <br />missioner Eggert, the Board unanimously approved the <br />substitution of a mortgage for a letter of credit by <br />Hawk's Nest Management, Inc., as recommended by staff. <br />62 <br />