AGENDA MEMORANDUM

Meeting Date:              April 28, 2008

From:                           Edward F. Smyth, Jr., Deputy City Manager

Subject:                       Resolution Authorizing a Sale Agreement with Peter Edwards for the Purchase of City Owned Property and Rescinding Resolution 8076  Canceling the Contract Dated November 26, 2007

Staff Recommendation:

Staff recommends approval of the agreement for the sale of City owned property consisting of approximately 14,375 square feet in Section 25, Township 19, Range 24, and rescinding Resolution 8076, dated November 26, 2007. 

Analysis:

In November 2007, the City of Leesburg and Peter Edwards entered into a contract for the purchase of City owned property adjacent to his commercial structure at 1408 E Main Street.  At that time, staff presumed Mr. Edwards would purchase the entire parcel and that he was willing to pay the appraised value as determined by a City approved appraiser.  Mr. Edwards commissioned an appraisal that returned a value of $5,000, substantially less than anticipated, and not accepted by the City.  The City commissioned an appraisal of the property that determined a value of $85,000.  This was much greater than had been anticipated by either party. 

The City’s appraiser took Mr. Edwards comments, re-evaluated the site, and amended his original appraisal to a more equitable value of $32,000.  Staff and Mr. Edwards then began a series of meetings and discussions about the absolute area necessary to expand the parking area and provide adequate stormwater retention for the Mr. Edwards’ commercial area. Mr. Edwards will require 14,375 square feet of this parcel in order to provide the necessary parking and stormwater retention.  Staff tendered an offering price of $19,047.32 ($1.325 per sq.ft.), and Mr. Edwards counter offered $15,000.00 ($0.9583 per sq. ft.).  Staff evaluated the offer and the significant defects on the property and believes this is a fair and equitable price for this property.

Options:

1.  Adopt the Resolution authorizing the sale of the subject property;  or

2.  Such alternative action as the Commission may deem appropriate

Fiscal Impact: 

This will provide a one-time infusion of cash into the General Fund of $15,000.00.

Submission Date and Time:    4/28/2008 8:32 AM____

Department: Administration Prepared by:  EF Smyth, DCM                      Attachments:         Yes____   No ______ Advertised:   ____Not Required ______ Dates:   __________________________                      Attorney Review :       Yes___  No ____ _________________________________            Revised 6/10/04

Reviewed by: Dept. Head ________ Finance  Dept. ________JB_______                                    Deputy C.M. _________EFS______                                           Submitted by: City Manager __________________

Account No. __001-0000-364-29-00 Project No. ___________________ WF No. ______________________ Budget  ______________________ Available _____________________

RESOLUTION NO._______________

A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA RESCINDING RESOLUTION 8076 DATED NOVEMBER 26, 2007, AUTHORIZING A CONTRACT WITH PETER EDWARDS TO PURCHASE CITY PROPERTY; AND AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE A CONTRACT FOR SALE OF REAL PROPERTY WITH PETER EDWARDS FOR PURCHASE OF CITY OWNED PROPERTY IN SECTION 25-19-24 (EAST MAIN STREET)WITH LANGUAGE TO BE INCLUDED IN THE DEED TO PROHIBIT REMOVAL OF THE "HERITAGE OAK" WITHOUT PRIOR WRITTEN CONSENT OF THE SELLER; 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 an agreement with Peter Edwards, whose address is 9475 Silver Lake Drive, Leesburg, Florida 34788, for the sale of approximately 14,375 square feet, lying in Section 25, Township 19, Range 24, for $ 15,000.00 based on the agreed comparable appraised value; and

THAT language will be included in the deed to prohibit removal of the “Heritage Oak” without prior written consent of the seller;  

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   28^th  day of  April  2008.

                                                                            __________________________

                                                                             Mayor

ATTEST:

__________________________

City Clerk