Loading...
HomeMy WebLinkAboutItem #08 Purchase of Property for Police Headquarters AGENDA ITEM COVER SHEET Meeting Date: September 5, 2006 Item # g Contact Name: Contact Number: Jamie Croteau X 1503 Reviewed By: Department Director: City Manager: //IJtL--- Subject: Purchase of Property for Police Headquarters Background Summary: On July 26, 2006 a work session was held to review potential sites for the new Police Headquarters. Four sites were reviewed for possible acquisition. The four sites were: (1) the Roper property at the corner of Maguire and Story Roads; price: $392,749/acre (2) the Certi-Fine & Crittenden properties at the corner of McKee and Kissimmee; price: $567,000/acre (3) the Silvestri property located at AD. Mims and Clarke; price: $250,000/acre (4) property adjacent to the City owned property on Bluford between McKee and Oakland; price: unknown. The fourth site would require the City to purchase at least three separate parcels, possibly through the condemnation process. Staff recommended the approximately 14 acre site located at the corner of AD. Mims and Clarke Road. This site is located next to the Fire Station on Clarke Road and is zoned commercially. In discussions with the owner of the property only 12 acres are currently available for purchase. The owner has expressed a desire to retain 2 acres for future development. The price for the 12 acres is $3.5 million or $291,667/acre. Based on the consensus of the Commission, staff has pursued this option. An outline of the purchase contract is attached. It is anticipated that the new Police facility will need approximately 4 acres of the 12 acres available. The City could use the remainder of the site for a park, city facility or other city need. Or the additional acreage could be sold at a later date to offset some of the facility costs. The property will be purchased through a combination of general fund dollars, impact fees, and bond funding. Issue: Should the City proceed with the purchase of the approximately 12 acres located at the corner of AD. Mims and Clarke for the new police headquarters? Recommendations Staff recommends purchasing the property at the corner of AD. Mims and Clarke. Attachments: Map showing property Memorandum outlining the purchase agreement Workshop presentation Financial Impact: Approximately $3.5 million Type of Item: (please mark with an "x'J X Public Hearing _ Ordinance First Reading _ Ordinance Second Reading Resolution _ Commission Approval Discussion & Direction For Clerk's Deat Use: _ Consent Agenda Public Hearing Regular Agenda _ 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 ( ) N/A N/A N/A 2 City Manager Robert Frank Commissioners Gary Hood. District 1 Scott Anderson. District 2 Rusty Johnson. District 3 Joel Keller. District 4 Mayor S. Scott Vandergrift STAFF REPORT TO: The Honorable Mavor and City Commissioners FROM: DATE: RE: ISSUE BACKGROUND/DISCUSSION 1 Silvestri Investments of Florida Inc Property Location Map -... .-..-..- -'( I \ ) \@ / ( ~ ?~~ w~ ~ f--- ~~w j) It r::: TIt ~ 1/ ~i ~~~ l~.~/ + f--- l ........ ~=== \ II '- r ~ !I ~ .- =h ~~ ~~ / ~-- = ~~~~A~ /1 = ~ ~ ~ \~~ I I \ / :::::--=--=====__--JW = ~ II ' ~~ \\ \, _ (IfR\.O ~/ ~ v - \tr Ii: \1 I~I~ ~ 10>:11: I ~\\I \ --4 I/,,, J ~~ I :; %8~ i \"11 j(j ;/!{l; / I =N lWhl ~ y/ ::, - 'i!Jliff{Ij( I I \ / -k: = 1--- -h I I I~I II ~ _ I-- _ - I \ \ I ~ - -r-c - 1----( V1- ~ - --+- - I 3 ~ ==IUIAI. I \ \ == ~ == =r -L;;: ~-r\ ~ / I ~\ I I II '1' c- IA" /;<\J \ I I I I .ll I I I I I - -~ i ,~\ i I - I I ~ = H-: -- ~r-c - =~ '( I, II -, f- - - - _I, --v / g ~k))::JL -Zz'Yu~llll ell ~ .; -~ c, ~ ~ == === ~ I I!;{~fi ~KEJOH~ Im~ H=,RJ PRAIRIE LAKE ~ L(L / ~ ~ ~ Q I ~ f--- SPRING LAKE I : FOLEY ATTORNEYS AT LAW 111 NORTH ORANGE AVENUE, SUITE 1800 ORLANDO, FL 32801-2386 P. O. BOX 2193 ORLANDO, FL 32802-2193 407.423.7656 407.648.1743 WWW.FOLEY.COM FOLEY & LARDNER LLP 407.244.3252 MEMORANDUM CLIENT-MATTER NUMBER 020377-0793 TO: The Honorable Mayor and City Commissioners of the City of Ocoee FROM: Paul E. Rosenthal, Esq., City Attorney DATE: August 28, 2006 RE: Purchase Agreement with Silvestri Investments / Police Station Site The following is a summary of the highlights of the proposed Agreement for Purchase and Sale with Silvestri Investments of Florida, Inc.: 1. The Property consists of Tract C of the Prairie Lakes PUD (which is an approximate 14 acre tract LESS AND EXCEPT a 2.0 acre parcel to be retained by the Seller. The exact acreage of the land being purchased will be determined based on a survey. 2. The location of the 2 acre parcel being retained by the Seller will be determined by the City during the Feasibility Period, subject to the approval of the Seller. The parcel will front on Clarke Road, however. Also, a development allocation of 20,000 square feet of retail will be retained by the Seller for the benefit of the parcel. 3. The Gross Purchase for the Land and prepaid road impact fees is $3,500,000. The portion allocated to the Land is $3,054,583.00. A deposit of $25,000 will be provided by the City which will be held in escrow. 4. The Prairie Lakes PUD has prepaid road impact fees based on the Seller's construction of Clarke Road through the PUD. Also, the road impact fees charged within the PUD are fixed at the rates in effect in June 1991. These prepaid fees are recouped by the Seller by selling land along with the prepaid fees. This is typically priced as a charged in addition to the land cost. Tract C has a development allocation of 120,000 sf of retail space of which 100,000 sfis allocated to the portion being purchased by the City. The road impact fees associated with this portion is $445,417.00. The contract provides for the City to purchase these prepaid fees (or road impact fee credits) at the closing for there face amount of$445,417.00. It should be noted that in the event the City surpluses a portion of the land for private sector use, ORLA_ 420873.1 : FOLEY FOLEY & LARDNER LLP then the City would charge the current retail rate for road impact fees and not the discounted rate set forth in the PUD Developer Agreement., thereby allowing the City to recoup all or a portion of this payment. If the City keeps all of the land in public use, then these fees would not be recouped. 5. The City will be responsible for obtaining and paying for title, survey and a Phase 1 environmental site assessment. 6. The City will need to obtain an appraisal during the Feasibility Period. The contract is subject to the purchase price being supported by an appraisal. 7. The City will have a 90 day Feasibility Period during which it can terminate the contract. This will allow the City to complete due diligence for use of the site as a police station. 8. The City will need to hold a public hearing to allow use of the site for the governmental purpose of a police station. 9. Closing will be 105 days from the Effective Date, but not later than December 21, 2006. 10. No brokers are involved in this transaction. As of the date of this Memorandum, the purchase contract as not been finalized. Any changes will be discussed at the Commission meeting and the final copy of the contract will be presented at that time. PER 2 ORLA_ 420873.1 '- ,', .c.... . J l ,~. '~ .~) . I J ~~~.' III III III ."F~~Tf_~~~:~.~::~~~~ <: .~.. . I I i . I ~ ~ 1 I ~ -') -" -"- ",'.,. ". ......., '...C~'I"!'" ....-,;.,..,.-. Illt;, ;:",:",,~.~~;,.c:... ....~' loP ^'v'ON\f1~38~n:) IJJ ~ ~ C/) ~ :s en W ~al~ :2=>0 0130 o W ~o _0 00 u. ~ Cl z :s ::.:: <3 W o Zu.: 52<( a.D OZ J:W en-' ::!:en WW 0:::2 0<( --, W ~O _0 00 u.~tiJ W<( -,C> 0:: 0:2 W W ~O _0 00 u. o ^'v'OOOM3>l'<ll I- ~ w ::.:: t) :::;: o J ~ ~"". f~,.., "__..,,,,~, .....~.,...,,_:~ ",......,,;.......:..:;..._ :tf;_-l--'i"~' ~.t ~~:~':',:.~',:~~~~:~~~.~ 90 .$ ::;.. ......, , ~ "0 '\' 0 ~ ,0 C-' 14-4 o ~ Q) ~ 8 ~ ~ ,- .... ,;" ":1"" ";'.;1.- . ' "'.- . /t~. . ' . .,'~...~ {. ....." .....", ;iIi"':-~-' , ' '" ".~;::.,,,"":1~.~~ 80 I .$ , ~ 12:J 1"t;1 .0 10 ~c:!J l\..+-l o ~ Q) ~ 3 eJ' ~ .,<t-.., '~,~~ ~ ''1J, '''Sf ~