Summary:
In 2008, the City conveyed certain property now known as “Wells Landing”, previously known as “Parramore Village,” to Nu Beginnings Parramore Village Development, LLC. (“Developer”). The Developer agreed to develop the property in accordance with a development agreement approved by the City dated October 18, 2007, as amended from time to time. The Developer gave back to the City a $1,300,000 purchase money mortgage and note for the property. The development agreement, mortgage, and note were personally guaranteed by Hanton Walters, the managing member of the Developer.Florida Community Partners, a consortium of banks, (“FCP”) agreed to provide the Developer with a development line of credit for up to $3,500,000, secured by a mortgage on the property.
Due in part to a decline in the real estate market in 2008, FCP soon thereafter refused to advance any additional funding for the project, which in turn led to FCP’s filing mortgage foreclosure proceedings. The Developer counter-sued FCP for wrongful termination of the line of credit. The parties have agreed to a resolution of all disputes and termination of the mortgage foreclosure proceedings. The City will enter into the Settlement Agreement, substantially in the form attached, addressing the matters as described herein with the Developer and Walters. FCP will enter into a separate settlement agreement with the Developer and Walters. Together the agreements will resolve all matters arising out of the development transaction concerning Wells Landing
As authorized per the terms of the Settlement Agreement, the City will assign its right to the property to the Community Redevelopment Agency of the City of Orlando (“CRA”). The Developer will convey the property to the CRA, free and clear of all encumbrances, except for taxes and City code enforcement liens. The City, Developer and Walters will cancel the development agreement, the City mortgage and note and Walters’ personal guaranty. The Developer will assign to the City all development rights for Wells Landing, which the Developer acquired during the course of this project. The Developer will deliver to the City all necessary documents cancelling the FCP mortgage and related encumbrances, and dismissing the FCP mortgage foreclosure action.
The City will enter into the Funding Agreement with the CRA, substantially in the form attached, confirming the CRA will accept title to the property under the terms and conditions described herein. The CRA will pay the costs for recording the deed, the City’s mortgage satisfaction and any related documents, and for the owner’s title insurance policy and any other closing costs, along with all currently owed real estate taxes in the approximate amount of $24,800.
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