PLACEMENT: Departmental
TITLE:
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POTENTIAL ACQUISITION AND APPROVAL OF A LETTER OF INTENT AND CONTRACT TO PURCHASE 25 ACRES LOCATED AT THE NE CORNER OF WILLOUGHBY AND DARLING STREET WITH OPTION TO PURCHASE AN ADDITIONAL 3.12 ACRES
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EXECUTIVE SUMMARY:
executive summary
At the February 12, 2019 meeting, the Board of County Commissioners (BOCC) directed staff to return with options for the relocation of Public Works and General Services. A 25 acre parcel off of Willoughby at Darling was located, with the option to purchase an additional 3.12 acres.
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DEPARTMENT: Public Works
PREPARED BY: Name: Carla T. Segura
Title: Real Property Manager
REQUESTED BY: Don Donaldson, P.E., Deputy County Administrator
PRESET:
PROCEDURES: None
BACKGROUND/RELATED STRATEGIC GOAL:
1. Agreement prepared by: Martin County
2. Parties to the Agreement: Martin County, Buyer
Fernlea Nurseries, Inc., Seller
3. Purpose of the Agreement: Acquire property for Public Works and General
Services to relocate from Airport
4. New/Revised Document: New
5. Duration: Perpetual
6. Benefits to Martin County: Owned space to relocate County Facilities
7. Cost to Martin County: TBD
For quite some time, the BOCC has analyzed options for the relocation of Public Works and General Services which currently operate on airport property. Under rules of the Federal Aviation Administration (FAA) programs, the County is required to pay rent to the Airport Enterprise Fund for use of the airport property. The current location does not include a stormwater management system and is serviced by both septic systems and municipal waste water.
On February 12, 2019, the BOCC approved the locations, budgets, and revised CIP sheets for projects as presented and directed staff to return with options to relocate County maintenance facilities.
Investigations pursued over the last several months including County owned properties and larger properties within the Urban Service District. It quickly became evident that larger properties were flipping and changing hands and costs were increasing. Commercial properties within the Urban Service District are selling for between $200,000 to over $400,000 per acre.
The scope was narrowed and parcels were prioritized, bringing one to the forefront which is located on Willoughby Blvd. at Darling Street meeting the qualifications. This 25-acre parcel was most recently under contract for a residential development.
Staff initiated a Letter of Intent (LOI). The owner, Fernlea Nurseries, Inc., listed the property for $5,995,000. Staff negotiated a purchase price of $5,500,000 or approximately $220,000 per acre, with an option to purchase an additional 3.12 acres for $686,400, which is located adjacent to a County owned parcel and directly across the street from the 25-acre parcel. The additional property would be a good addition to any future development of the adjacent County owned property. The parcels are currently zoned RE-1/2A. Water is available to the property, with a force main close by for future sewer needs. A lift station will need to be installed in development and will run about $160,000 per the County Utilities Department.
Additional contract conditions include a Leaseback of the property through August 1, 2020 for total gross rent of $50,000 and an offer to match up to $75,000 for any cleanup should any unsafe conditions or damage be found during the Environmental Site Assessment (ESA).
County maintenance facilities currently occupy approximately 13 acres and are home to approximately 100 employees and house several functions including:
Public Works:
Field Operations personnel and administrative staff
Heavy equipment and material storage yard
Mosquito Division administrative staff, Control Lab, materials and equipment
Traffic Control Division operations center, light and sign shop
Survey Division field staff and equipment
Transit Division Bus Parking
General Services:
General Service's administrative staff
Building Management administrative staff
Building Trades staff
Equipment storage
Security and Access administration
Fleet acquisition and maintenance
Generator maintenance and main fueling station (gas and diesel)
It is anticipated the needs of all these services would require a site to be between 20-25 acres. Due to limited parcels, inside the Urban Service District, that meet the size requirements and rapid turnaround in the current real estate market, the Willoughby and Darling Street property is being pursued.
The Agreement to Purchase and Sell Real Estate provides a timeline for the County to perform due diligence investigation including a survey, title examination, Environmental Site Assessment, appraisals, financial analysis, etc. Staff has begun engaging consultants for the due diligence and expects to have it completed within 30 days from execution of the Contract. Due to time restraints a Contract for Purchase and Sell Real Estate will be provided via Supplemental Memo. All findings and a recommendation will be presented to the BOCC for final direction.
ISSUES:
In addition to the above listed Divisions, it is recommended the new site include Parks and Recreation Maintenance functions, which are currently operating from County property on the corner of Dixie Highway and Indian Street, south of the fairgrounds. The FY19 Budget included debt service for the relocation of Public Works and General Services; but did not contemplate relocation of the Parks operations from the Indian Street and Dixie Highway site. It may be necessary to include additional debt service funding in FY20. Staff will also be seeking grants from FDOT to assist with the cost (due to relocation from airport property) which, if successful, will reduce the debt service.
LEGAL SUFFICIENCY REVIEW:
This item has been reviewed for legal sufficiency to determine if it is consistent with applicable law, has identified and addressed legal risks, and has developed strategies for legal defensibility.
RECOMMENDED ACTION:
RECOMMENDATION
Move that the Board:
1. Accept and approve the "Letter of Intent" and authorize the Chairman to execute;
2. Accept and approve the "Contract to Purchase and Sell Real Estate" for the 25 acres from Fernlea Nurseries, Inc. for $5,500,000 and authorize the Chairman to execute subject to final approval by the County Attorney's office;
3. Accept and approve the option to purchase the additional 3.12 acres owned by Fernlea Nurseries, Inc. for $686,400.
ALTERNATIVE RECOMMENDATIONS
Provide staff with alternative direction.
FISCAL IMPACT:
RECOMMENDATION
On June 18, 2019, the BOCC approved Budget Resolution 19-6.17 to utilize Martin County Half-Cent Sales Tax Revenue Bond, Series 2019 for the purpose of appropriation of funds for the Public Works/General Services Relocation in the amount of $6,000,000.
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ALTERNATIVE RECOMMENDATIONS
None
DOCUMENT(S) REQUIRING ACTION:
☐Budget Transfer / Amendment ☐ Chair Letter ☒Contract / Agreement
☐Grant / Application ☐Notice ☐Ordinance ☐Resolution
☐Other:
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