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Item #17 Discussion of an Unsolicited Offer from West Orange Montessori Charter to Purchase 9 Acres of City-Owned Property on Fuller’s Cross Road near Ocoee-Apopka Road for $650,000OCOPP florida AGENDA ITEM COVER SHEET Meeting Date: June 16, 2015 Item # Reviewed By Contact Name: Al Butler, Support Services Department Director: Contact Number: 407 - 905 -3100, ext. 1543 City Manager: Subject: Discussion of an unsolicited offer from West Orange Montessori Ch4ter to purchase 9 acres of city -owned property on Fuller's Cross Road near Ocoee- Apopka Road for $650,000 (District 1 — Grogan) Background Summary: The City acquired 18 acres of land (Parcel No. 06- 22 -28- 0000 -00 -056) as part of the Coke property. The parcel is bordered by Fuller's Cross Road on the south and Ocoee - Apopka Road on the west. To the north is SR 429 and to the east is the Ocoee Glad Tidings Assembly of God Church. The city owns additional land to the west and north of the site on the opposite side of the bounding roadways. West Orange Montessori Charter, d.b.a. Montessori of Winter Garden Charter School, has submitted an unsolicited offer to purchase approximately 9 acres of the property for $650,000; i.e., the eastern half of the parcel. This offer represents an average price of about $72,225 per acre. The city would retain the western half bordering on Ocoee - Apopka Road. The offer is contingent upon a 180 -day due - diligence period and satisfaction of buyer's requirements. A deposit of $5,000 would be paid upon execution of a sales agreement. The buyer would have 90 days for due diligence, primarily to complete a detailed property inspection, during which time the buyer may cancel the transaction for any reason, with the deposit fully refunded. A second deposit of $5,000 to be paid after the due - diligence period, assuming that all requirements are satisfied. Both deposits would be applied against the purchase price. A drawing showing the property and the proposed portions covered by the offer is provided on the next page. The base map used in the drawing is taken from the Orange County Property Appraiser's online mapping system. Issue: Staff seeks guidance from the City Commission regarding how it wishes to respond to this unsolicited offer to buy city -owned land in the Northwest Quadrant of the city. Recommendations Staff recommends the City Commission reject the offer at this time. The property is within the area of the ongoing SR 429 corridor study and is a strategic holding of the city. It is premature for the city to contemplate the piecemeal sale of its property until it has developed an overall plan for the entire area of the city's Northwest land holdings following completion of the corridor study. Aerial photo showing the proposed property transaction. Attachment: • Offer to buy from West Orange Montessori Charter. • Property record from the Orange County Property Appraiser. Financial Impact: It is not possible at this time to identify the financial impact of the contemplated land sale. The sales offer is silent with regard to who pays closing costs and real estate brokerage fees, if any. An appraisal would need to be performed in order for the city's fiduciary duties to be met with regard to getting a fair price for the property. Section C- 8.13(2) of the City Charter requires a public hearing to be held prior to the sale of any city -owned real estate for an amount in excess of $100,000. Under these requirements, the City Commission would need to first indicate by majority vote that it is willing to sell the property. That action can be taken at this time, with the motion including authorization to perform the appraisal, negotiate final terms, and schedule the public hearing. The hearing must be noticed by publication at least seven days prior to its being held, after which the City Commission may take final action on the proposed sale. Thus, final action to accept the offer would require additional negotiations, a complete sales agreement, a public hearing at a second meeting of the City Commission, and a vote. Type of Item: X (please mark with an x') Public Hearing Ordinance First Reading Ordinance Second Reading Resolution 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 Reviewed by For Clerk's Dept Use: Consent Agenda Public Hearing Regular Agenda N/A N/A N/A N/A 855 EAST PLANT ST.. SUITE 600, W t NTER GARDEN, FL 34787 • 407- 654 -2045 Non - Binding Letter of Intent West Orange Montessori Charter DBA Montessori of Winter Garden Charter School or its assigns ( "Buyer ") is pleased to present to you this Non - Binding Letter of Intent to purchase nine (9) acres at Fullers Cross and Ocoee - Apopka, Parcel 06- 22 -28- 0000 -00 -056, bordering 2009 Fullers Cross Road property located in Ocoee, FL per Exhibit "A" legal description of the property (the "Property"). Set forth below are proposed terms: Purchase Price $650,000 Inspection Period Buyer shall have (180) days after mutual execution of the formal Purchase and Sale Agreement to inspect Property (the Due Diligence Period) to include inspection of any reports in possession of the Seller or Seller's Agent and Physical Inspection of the Property. Deposit Refundable Deposit of $5,000 to be placed into escrow within three (3) business days after mutual execution of the formal Purchase and Sale Agreement. Deposit becomes non - refundable after the Inspection Period except in the event of Seller's default. Second deposit of $5,000 to be placed in escrow at end of Inspection Period and becomes non - refundable day one. Deposits will be applied to down payment at closing. Financing Financing period will run concurrent with inspection period or ALL CASH. Close of Escrow Close of Escrow shall occur within (30) days after the end of the Inspection Period. Escrow Company/ Deposit moneys shall be held by buyers choice with Title Company proceeds applied to Down Payment at closing. Seller will pay for Title Commitment and Doc Stamps. Seller will choose Title Company for closing. Purchase and Sale Agreement Seller and Buyer to utilize Seller's standard form of Purchase and Sale Agreement, in form and content mutually acceptable to both parties. Buyer's Name & Address Name: West Orange Montessori Charter DBA Montessori of Winter Garden Charter School Address: 855 East Plant Street, Suite 1500, Winter Garden, FL 34787 This proposal is intended to be a non - binding letter of intent which states terms and conditions upon which Seller will consider selling the Property to Buyer. Neither party shall become legally bound in any manner, notwithstanding this letter of intent or any subsequent negotiations or draft agreements, unless and until a formal Purchase and Sale Agreement is executed and delivered to both parties. Buyer's Signa a Date: S it oore dent, MWGCS Board of Directors AGREED & ACCEPTED BY SELLER: Seller's Signature City of Ocoee 150 N Lakeshore Drive Ocoee, FL 34761 -2223 Date: Exhibit "A" 1 of 2 Pages O Searches 4 Sales Search Q Property Record Card My Favorites I Buildings (includes working values) Sign up for e-Not fy_. Fullers Cross Rd � 06- 22 -28- 0000- 00 -056> * ( * Extra Features (includes working values) Nami City Of Ocoee Physical Street Address Fullers Cross Rd SAVE PMMi St:Me <i!',lei An krlage For This Parse! Proper•.y Name Q ?ostai City and Zipcotle —1 Sr.f FT M.er IE N/A. Click information icon to contribute. Ocoee, FI 34761 ®O 1 Mailing Address On File Property Use rws r.1e Po.r 150 N Lakeshore Dr 8900 - Municipal Ocoee. FL 34761 -2223 Municipality FSi YSrE v� ralES SE—Mr%5 IMAGE UPLOAD Incoaect Mailing Address? Ocoee _..._... _._... Values, Exemptions and Taxes Property Features Sales Analysis Location In Market Slats I Update Information Property Description COMM AT SW CDR OF SAID SEC TH E 2668.19 FT N 30.01 FT TO POS TH W 742.01 FT N 41 DEG W 782.14 FT NELY 415.75 FT NELY 507.01 FT S 1163.02 FT TO POB SEE 6180/3963 Total Land Area 782.325 sgft ( +! -) 17.96 acres ( +! -) GIS Calculated Notice Land (includes working values) Land Use Code Zoning Land Units Unit Price Land Value Class Unit Price Class Value 8900 - Municipal °'.:C -COMM '7 36 ACREiS{ 326 00 u0 3502.88E 30 00 Page I of 1 iI total Buildings (includes working values) Important Information Structure There are no buildings associated with this parcel. Extra Features (includes working values) Description Date Built Units XFOB Value There are no extra features associated with this parcel This Data Printed on 115119/2015 and System Data Last Refreshed on 05/18/2015 RICK SINGH i A ORANGE COLN'TY PROPERTY APPRAISER FLORIDA :iax wo ! Lev C L Sft—h rasa ': Saks Anat-sa * roots Y hit oepp –mdoo E a E b I .- -. --�.. im -- I AA .. " ci J 00 0 © 7 7.1 Targrl�aYrr'. PARCEL ID �6 22 2S CC'- STREET ADDRESS OCOEE APOPKA RD ',.. - -... NAME (1) C2TV OF OCOEE -. PIAIUNG ADDRESS 250 N LAKESHORE DR CT*Y OCOEE STATE -L ZIPCODE 34761 CITY CODE OCD _ JIM PROPERTY USE 3500 r Exhibit "A" Page 2 of 2 Fullers Cross Rd Property Record - 06- 22 -28- 0000 -00 -056 Property Summary Property Name Fullers Cross Rd Names City Of Ocoee Municipality OCO - Ocoee Property Use 8900 - Municipal Value and Taxes http: / /www. o cpafl. org /S earches/P arcelInfoPrinterFriendly. aspx/PF S ett... Mailing Address 150 N Lakeshore Dr Ocoee, FL 34761 -2223 Physical Address Fullers Cross Rd Ocoee, FL 34761 Orange County Property Appraiser - http: / /www.ocpafl.org a k -]-I Mit% QR Code For Mobile Phone Historical Value and Tax Benefits Tax Year Land Building(s) Values v',, � Srmd�cNr + $0 � cnire�ty $502,880 + $0 2013 $457,980 + $0 Historical Value and Tax Benefits Tax Year Land Building(s) Values =$457,980 (0 %) $457,980 (0 %) + $0 2014 ©m $502,880 + $0 2013 $457,980 + $0 2012 ©m $457,980 + $0 2011 $457,980 + $0 Feature(s) Market Value Assessed Value + $0 =$502,880 (9.8 %) $502,880 (9.8 %) + $0 =$457,980 (0 %) $457,980 (0 %) + $0 =$457,980 (0 %) $457,980 (0 %) + $0 = $457,980 $457,980 I 1 of 3 6/1/2015 3:31 PM Fullers Cross Rd http: / /www. ocpafl.org/ Searches/ ParceiInfoPrinterFriendly .aspx/PFSett... 2014 Taxable Value and Certified Taxes Taxing Authority Public Schools: By State Law (Rle) Public Schools: By Local Board Orange County (General) City Of Ocoee Library - Operating Budget St Johns Water Management District Tax Savings $9,674 $8,832 $8,914 $8,945 Assd Value Exemption Tax Value Millage Rate Taxes % $502,880 Other Tax Year Benefits Exemptions 2014 MM $502,880 2013 MM $457,980 2012 ©M $457,980 2011 ©M $457,980 2014 Taxable Value and Certified Taxes Taxing Authority Public Schools: By State Law (Rle) Public Schools: By Local Board Orange County (General) City Of Ocoee Library - Operating Budget St Johns Water Management District Tax Savings $9,674 $8,832 $8,914 $8,945 Assd Value Exemption Tax Value Millage Rate Taxes % $502,880 $502,880 $0 5.2260 (2.19 %) $0.00 0% $502,880 $502,880 $0 3.2480 (0.00 %) $0.00 0% $502,880 $502,880 $0 4.4347 (0.00 %) $0.00 0% $502,880 $502,880 $0 5.6371 (- 2.57 %) $0.00 0% $502,880 $502,880 $0 0.3748 (0.00 %) $0.00 0% $502,880 $502,880 $0 0.3164 (- 3.62 %) $0.00 0% 19.2370 $0.00 2014 Non -Ad Valorem Assessments Levying Authority Assessment Description There are no Non -Ad Valorem Assessments Property Features Property Description Units Rate Assessment COMM AT SW COR OF SAID SEC TH E 2668.19 FT N 30.01 FT TO POB TH W 742.01 FT N 41 DEG W 782.14 FT NELY 415.75 FT NELY 507.01 FT S 1163.02 FT TO POB SEE 6180/3963 Total Land Area 782,325 sqft ( + / -) Land (includes working values) 17.96 acres ( + / -) GIS Calculated Land Use Code Zoning Land Units Unit Price Land Value Class Unit Price Class Value 8900 - Municipal PUD -COMM 17.96 ACRE(S) $28,000.00 $502,880 $0.00 $502,880 Buildings (includes working values) Extra Features (includes working values) 2 of 3 6/1/2015 3:31 PM Fullers Cross Rd http://www.ocpafl.org/ Searches/ ParcelInfoPrinterFriendly .aspx/PFSett... Description Date Built Units Unit Price XFOB Value There are no extra features associated with this parcel Sales Sales History Sale Date Sale Amount Instrument # Book/Page Deed Code Seller(s) Buyer(s) Vac/Imp There are no sales for the selected parcel Services for Location Nearby Amenities 3 of 3 6/1/2015 3:31 PM