Collier County
FL

Action Item
12239

Recommendation that the Board of County Commissioners, acting as the Community Redevelopment Agency Board, approve an Agreement for Sale and Purchase to acquire Del’s Corner consisting of three contiguous properties located on the southeast corner of Bayshore Drive and Thomasson Drive, recognize and appropriate Bayshore CRA Fund (187) carry forward, establish budget for the Triangle Property sale, and authorize necessary budget amendments. (Debrah Forester, Director, Community Redevelopment Agency)

Information

Department:Bayshore CRASponsors:
Category:14B Community Redevelopment Agency

Executive Summary

EXECUTIVE SUMMARY

 

Recommendation that the Board of County Commissioners, acting as the Community Redevelopment Agency Board, approve an Agreement for Sale and Purchase to acquire Del’s Corner consisting of three contiguous properties located on the southeast corner of Bayshore Drive and Thomasson Drive, recognize and appropriate Bayshore CRA Fund (187) carry forward, establish  budget for the Triangle Property sale, and authorize necessary budget amendments.

 

 

OBJECTIVE:  To acquire the three contiguous properties for future public use for the Bayshore/Gateway Triangle CRA (BGTCRA).

 

CONSIDERATIONS:  On January 16, 2020, the County Manager received a correspondence from Mrs. Theresa Ackerman providing Collier County the opportunity to the purchase Del’s Corner.

 

The Seller's property is comprised of three contiguous parcels totaling 1.84 +/- acres. The existing store and warehouse (.44 +/- acres) is zoned C-5, the dry storage (.77 +/acres) is zoned C-3 and C-5, and the vacant lot (.63 +/- acres) is zoned RMF-6. All parcels have the Bayshore Mixed Use District (BMUD) overlay.

 

Del’s Store is located at 2808 Thomasson Drive and is owner operated. The warehouse located at the same address has a tenant on a verbal month to month lease. A boat storage business is located at 4825 Bayshore Drive. The business has a verbal month to month lease. The County’s standard Agreement for Sale and Purchase has been modified to include a provision regarding the boat storage and warehouse business.  The provision requires that the County provide the businesses with a termination letter and that the business shall vacate the premises within 60 days after receipt of termination letter. Purchaser and Seller will agree upon the dedication verbiage and location of the memorial marker.

 

The BGTCRA views the properties proposed for acquisition as a very important piece of the continued redevelopment of the Bayshore area. Planned infrastructure improvements are underway along the Thomasson Drive corridor, which will enhance future opportunities for development of the property. Several entities and groups existing in the area are interested in possible partnerships, and the acquisition of the property will allow the CRA to ensure that future uses are compatible with the recently updated Redevelopment Plan.

 

Two independent appraisers established valuation for the properties. The first appraisal is dated March 5, 2020 by Rachel M. Zucchi, MAI, CCIM, of RKL Appraisal and Consulting, estimated the current market value of $2,110,000. The second appraisal is dated March 6, 2020 by Gerald A. Hendry, MAI, CCIM, of Maxwell Hendry Simmons, Real Estate Appraisers and Consultants, estimated the current market value of $2,125,000. Collier County's in-house Sr. Real Estate Appraiser prepared an appraisal report review and determined the average value of both appraisals is $2,118,000 for the properties.

 

The Agreement for Sale and Purchase has been reviewed and approved by the County Attorney’s Office. The location map is attached for reference.

 

ADVISORY BOARD RECOMMENDATION:  On April 7-8, 2020, CRA staff contacted each member of the Bayshore Gateway Triangle Local Redevelopment Advisory Board to seek input on the purchase of the Ackerman property.  This was done due to the cancellation of all Advisory Board meetings due to the COVID-19 Virus State of Emergency.  Staff received support from seven of the nine members to purchase the property with the understanding that the timeline to execute the Agreement for Sale and Purchase should give more clarity on closing of the sale of the CRA-owned Triangle Properties and alleviation of associated debt.

 

FISCAL IMPACTWithin the CRA financial program there are several pending matters that have been considered. The most significant is the pending sale of the Triangle Property and the related CRA Series 2017 Taxable Note liability. The Note presently has a principal balance of $3,857,735 which will be extinguished upon completion of the Triangle Property sale. Other pending uses of CRA reserves and fund balance include a $500,000 payment for relocating the Crown Castle cell tower (prerequisite to the Triangle sale),  the estimated construction cost of $500,000 for the parking lot at 3221 Bayshore Drive and $100,000 for connectivity design at the 17 Acre CRA site located at 4265 Bayshore Drive.

 

The proposed Agreement for Sale and Purchase includes a 120-day due diligence period, which is sufficient time to gain clarity on the closing date of the Triangle Property and alleviation of the associated debt. 

 

The total cost of the acquisition should not exceed $2,126,600 ($2,118,000 for the purchase price and $8,600 for a title commitment, title policy, closing costs and recording of the documents). If required, a Phase II environmental study would add as much as $25,000 to the cost of acquisition. The proposed source of funding is Bayshore CRA Fund (187). Budgeted CRA reserves currently total $2,155,400 and are sufficient to accommodate the proposed acquisition. In addition, unappropriated carryforward of $1,044,183 is available to fund the other pending projects and maintain a capital reserve balance of $420,483.

 

The various budget actions associated with the Triangle Property sale involve proceeds of approximately $6,372,959, paying off the CRA Series 2017 Taxable Note, approximately $3,400,000, recognizing the cell tower relocation payment of $500,000, recording the $38,200 cash value of related Voluntary Tax Cleanup Credits provided to the Seller, returning debt service reserves in Fund (287) to Bayshore CRA Fund (187), and increasing Bayshore CRA reserves by approximately $2,784,759.

 

Budgets for the Ackerman property acquisition, parking lot construction, the 17 acre site design and the Triangle Property sale will be established at this time through budget amendments reclassifying existing reserves, recognizing and appropriating Bayshore CRA Fund (187) carryforward and Triangle sale proceeds. 

 

LEGAL CONSIDERATIONS:  The tenancy with the boat storage business and warehouse business are month to month and therefore Sections 83.01 and 83.03 of the Florida Statutes require no less than 15 days notice of termination to the tenant.  As such, the 60 days set forth in the Agreement is appropriate.  This item has been approved as to form and legality and requires a majority vote for Board approval. - JAB

 

GROWTH MANAGEMENT IMPACTThere is no impact to the Growth Management Plan.

 

RECOMMENDATION: That the Board:

 

1.              Approve the attached Agreement for Sale and Purchase.

2.              Authorize the Chairman to execute the Agreement and any additional closing documents, and accept the Warranty Deed, once approved by the County Attorney’s Office.

3.              Authorize staff to prepare related vouchers and warrants for payment.

4.              Recognize and appropriate carry forward.

5.  Establish the Triangle Property sale budget.

6.  Authorize necessary budget amendments.

7.              Direct the County Manager or his designee to proceed to acquire the Property and to follow all appropriate closing procedures, to acquire and obtain clear title to the Property, and to record any and all necessary documents (once approved by the County Attorney’s Office) in the Public Records of Collier County, Florida.

 

Prepared By:  Sonja Stephenson, Sr. Property Acquisition Specialist, Facilities Management Division

 

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