Item No:††††††† ††††††††††† 5G.
Meeting Date:†††††††††† June 24, 2013
From:††††††††††††††††††††††††† Raymond S. Sharp, Interim City Manager
Subject:††††††††††††††††††††† Resolution authorizing purchase of property identified by Alternate Key Number 1174295, north of Center Street, west of US HWY 27
Staff believes that the referenced parcel has value to the city as a future stormwater retention site.† However, staff is unable to recommend purchase at the sellerís offered price.† Staff recommends the seller obtain a separate appraisal for the purpose of negotiating a suitable purchase price.
The property owner has approached the city to offer a parcel for sale to the city.† The city has evaluated the potential use of the property in question as a stormwater retention pond.† It presently contains a pond and adjacent wetlands which receive some runoff from Center Street.† A review of the existing stormwater subbasin suggests that the subbasin which includes the parcel is largely land-locked, without a natural outfall; this reinforces the potential future use of the site for storm water purposes. Therefore, at some point in the future, when improvements are necessary for Center Street and adjacent city streets, the site will likely be suitable for construction of a stormwater retention pond.†
Because the site is land-locked, one of the contingencies of the purchase is the inclusion of a twenty-five foot easement to Center Street for access and stormwater conveyance.
The city obtained an appraisal, attached, for the parcel in question.† The appraised value is $35,600.† The seller disagrees with this appraisal and has offered the property for sale at $100,000.† Staff has been unable to reach a negotiated price.† Staff has suggested the seller obtain an appraisal at the sellerís expense to further negotiations of a purchase price acceptable to staff and the seller.† As of this writing, seller has not furnished a second appraisal.
While the site has some utility for stormwater purposes, staff is unable to support a purchase price which is at considerable odds with the cityís appraisal.† Therefore staffís recommendation is to offer the seller the opportunity to obtain an appraisal and negotiate the purchase price with the city based upon the two appraisals.
The seller has advised staff that if the sellerís current offer is not accepted, seller will increase the price by twenty-five percent.
Staff believes the seller and staff have negotiated in good faith, and will continue to do so.† The issue appears to be a difference of opinion on the value of the site.
If authorized, the purchase will be made by the Stormwater Fund.† This purchase was not anticipated, and will therefore require a budget amendment.† The stormwater fund balance is adequate to fund this purchase, with no adverse impacts to present or future operations or capital projects.
Department: City Manager
Prepared by:† R. Sharp†††††††††††††††††††††
Attachments:†††††††† Yes X ††No ______
Advertised:†† ____Not Required †X†††††††††††††††††††††
Attorney Review :†††††† Yes X ††No ____
Reviewed by: Dept. Head ________
Finance† Dept. __________________††††††††††††††††††††††††††††††††††† †
Deputy C.M. ___________________††††††††††††††††††††††††††††††††††††††††† †††††††††††††††††††††††††††††††
City Manager ___________________
Account No. _014-7099-531-6110___
Project No. __140002____________
WF No. ______________________
RESOLUTION OF THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE A CONTRACT FOR SALE AND PURCHASE WITH LAKE-SUMTER FUEL OILS, INC. FOR A PARCEL IDENTIFIED BY ALTERNATE KEY NUMBER 1174295, NORTH OF CENTER STREET; AND PROVIDING AN EFFECTIVE DATE.
BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA:
††††††††††† THAT the Mayor and City Clerk are hereby authorized to execute a Contract for Sale and Purchase with Lake-Sumter Fuel Oils, Inc. whose address is P.O. Box 490778, Leesburg, Florida 34749-0778, for property identified by Alternate Key # 1174295.
††††††††††† †THAT this resolution shall become effective immediately.
PASSED AND ADOPTED by the City Commission of the City of Leesburg, Florida, at a regular meeting held the 24th day of June, 2013.