HomeMy WebLinkAboutItem 03 Approval for Staff to Accept an Unsolicited Offer from Gideon Property Services for City-Owned Property Identified as Tracts #11, #29, and #49 on the Ocoee Crown Point PUD Located at Fullers Cross Road Ocoee
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AGENDA ITEM COVER SHEET
Meeting Date: April 6, 2021
Item #: 3
Reviewed By:
Contact Name: Craig A. Shadrix, ACM Department Director:
Contact Number: 407-905-3111 City Manager: Robert Fr.�;��r�„/��
Subject: Approval for Staff to accept an unsolicited offer from Gideon Property Services for City-owned
property identified as Tracts #11, #29, and #49 on the Ocoee Crown Point PUD located at Fuller's
Cross Road
Background Summary:
The City received an unsolicited offer (attached) from Gideon Property Services on March 30th for City-owned
property located west of Ocoee-Apopka Road along Fuller's Cross Road and abutting State Road 429. The
buyer has indicated suitability for a corporate headquarters and intends to construct a flex office building on the
property. The property, which is approximately 12.3 acres (9.38 useable), is part of the Crown Point PUD
(tracts #11, #29, and #49), and the proposed use would require amendment of the PUD.
The proposed offer is for a purchase price of$1,641,500 or appraised value, whichever is higher. As the City
Charter requires an appraisal for a property sale of this nature, the buyer has agreed to pay for the appraisal.
Additionally, the offer includes a 90-day inspection period with a $15,000 deposit that is fully refundable until the
end of the inspection period.
It is well known that the City is under pressure to develop large logistics/trucking centers in the Northwest Area
(along Ocoee Apopka Road), which are inconsistent with the City's State Road 429 overlay, policy which
contemplated smaller scale flex-type facilities with a major office component. The indication of intent to build a
smaller building (50,000 sf or less with Office) from the buyer is consistent with the intent of the City's current
policy guidelines.
Issue:
Should the City Commission accept the letter of intent and authorize Staff to obtain an appraisal of the subject
property and enter into a sales contract subject to the provisions of the letter of intent?
Recommendations:
Staff recommends that the City Commission accept the letter of intent and authorize Staff to obtain an appraisal
of the subject property and enter into a sales contract subject to the provisions of the letter of intent.
Attachments:
Cover letter and Letter of Intent from Gideon Property Services
Financial Impact:
1
The City purchased the property in December 2000 for approximately $9,927.78 per acre. The book value of
the 12.3 acres under consideration is $122,111.74. The property was purchased through a bank line of credit
which has since been retired. The line of credit was secured with non-ad valorem revenues from the General
Fund.
Type of Item: (please mark with an `x')
❑ Public Hearing For Clerk's Dept Use:
❑ Ordinance First Reading p' Consent Agenda
❑ Ordinance Second Reading ❑ Public Hearing
❑ Resolution ❑ Regular Agenda
Commission Approval
❑ Discussion& Direction
❑ Original Document/Contract Attached for Execution by City Clerk
❑ Original Document/Contract Held by Department for Execution
Reviewed by City Attorney
Reviewed by Finance Dept.
Reviewed by
2
GIDEON
PROPERTY SERVICES
March 30, 2021
City of Ocoee
Robert D. Frank, City Manager
150 N Lakeshore Drive
Ocoee, FL 34761
Dear Mr. Frank,
We have recently been looking for property for a new client in the Ocoee area, of which I am very
familiar. I sold the parcel at the SW corner of Fullers Cross Road and Ocoee Apopka Road to Daryl Carter
back in 2004 and various other parcels throughout the years. Most recently, my business partner and I
brought Vermeer Southeast and Trinity Tile to the Ocoee area.
We identified a parcel owned by the City of Ocoee that we believe would work well for our client. This
12.3 acre parcel (9.38 usable+/-)fronts Fullers Cross Road contiguous to the 429 (parcel number 07-22-
28-0000-00-003).The development plan for the site is to build flex office space, and it is expected that
most of the tenants will live and work in the area. Our main client will take approximately 50,000 sf for
its new corporate headquarters.
I have done some preliminary due diligence on the site in order to prepare the LOI. I know the PD will
need to be amended for the intended uses, but we believe the proposed use is less intensive than the
current use and compatible with the city's plans for the area. In addition to amending the PD, I know
you will need to get an appraisal, which we will be happy to pay for.As part of our due diligence, we will
also order soil borings, protected species studies, an environmental report and a survey.
I have attached an LOI for your review. We look forward to hearing from you and putting together a deal
with the City of Ocoee.
Sincerely,
Preston Hage
Gideon Property Services, Inc.
600 E Colonial Drive, Suite 100,Orlando, FL 32803
(407)423-7600
GIDEON
PROPERTY SERVICES
March 30, 2021
City of Ocoee
Robert D. Frank, City Manager
150 N Lakeshore Drive
Ocoee, FL 34761
RE: Letter of Intent to purchase 9.38 acres
Dear Mr. Frank,
Thank you for considering this non-binding letter of intent to purchase the above referenced property.
Buyer: Gideon Commercial LLC and/or assigns
Seller: City of Ocoee
Property: Tract#11, #29 and #49 of Ocoee Crown Point PUD
Portion of Parcel ID-07-22-28-0000-00-003
Approximately 9.38+/-Acres on Fullers Cross Road in Ocoee, FL
Price: $1,641,500 or appraised value, whichever is higher. Buyer will cover the cost of
the appraisal.
Initial Deposit: $15,000—fully refundable until the end of the Inspection Period
Inspection Period: Buyer shall have 90 days after contract execution to inspect the property. Buyer
may cancel the contract for any reason during this period and deposit shall be
returned. Seller shall provide all property information in its possession for
Buyer's review, including civil environmental reports, soil reports, survey, etc.
Additional Deposit: $15,000 due at the end of the Inspection Period. Total deposit of$30,000 is
non-refundable unless Buyer is unable to obtain necessary zoning and permits.
Closing: 30 days after rezoning the property and receipt of site plan approval, whichever
comes last. If rezoning or site plan approval are not received within 270 days
after the end of the inspection period,then buyer may cancel the contract.
cerely,
AS
J cob Schrimsher
President
Gideon Property Services, Inc.
600 E Colonial Drive, Suite 100, Orlando, FL 32803
(407) 423-7600