Staff recommends the City Commission authorize issuance of an Invitation to Bid and sale of the City-owned real property south of CR 470, east of Florida’s Turnpike, and west of CR 33 for industrial development to the highest bidder but for no less than the appraised value of $4,125,000.00.
The resolution will authorize the City Manager to proceed with the sale of 75 acres of real property at the City’s Turnpike Waste Water Facility Spray Site, generally located along County Road 470. The sale will require an Invitation to Bid be issued and advertised in both local and regional newspapers. The City Manager will execute the attached sales contract without returning to the Commission provided the sale price is no less than the appraised value of $55,000 per acre or a total of $4,125,000. The City Manager will report the results of the bids to the City Commission as soon as they are available.
The City currently has several unfunded needs that have prompted staff to consider the sale of the property. The first is the need to bring the General Fund cash reserves into compliance with the newly established cash reserve policy without having to consider the cash available in the Special Revenue Funds. Other unfunded needs could also be addressed with the balance of the funds.
On January 14, 2008, the City Commission authorized an appraisal to be ordered (Agenda Item 4.J.). On February 20, 2008, the completed appraisal was received. The appraiser has placed the market value of this property at $55,000 per acre or a total of $4,125,000.00 for the 75 acres.
On March 10, 2008, this item was presented to the Commission for approval to proceed with the sale. At the meeting several citizens expressed a concern for the property use and the buffer zone provided between the 75 acre tract and their property lines. At that time a 50 foot buffer zone was stipulated in the legal description. At that meeting the Commission directed staff to expand the
buffer to 150 feet. Staff has made the necessary changes to the appraisal, survey, and legal description to include a 150 foot buffer within the 75 acre parcel. The buyer/owner will be responsible for maintaining the buffer. The City will not be responsible for ongoing maintenance of the 150 foot buffer. A boundary survey showing the 150 foot buffer is attached for your review.
The Invitation to Bid will stipulate the minimum acceptable offer is $4,125,000.00. After receipt of the bids, staff will evaluate the responses and select the highest bidder.
The City Attorney will handle the sale for the City. The proposed sales contract is attached to the end of this memo for your review. Paragraph 15 of the sales contract details the ‘Deed Restrictions’ related to proposed uses of the property. A total of 18 unacceptable uses of the property have been included.
1. Authorize the resolution to issue an Invitation to Bid and sell the property for no less than the
appraised value; or
2. Such alternative action as the Commission may deem appropriate
The successful sale of this real property will generate at least $4,125,000.00. The Wastewater Fund would be repaid a minimum of $210,000, plus interest, as reimbursement for the original purchase price. The balance of the funds will accrue to the General Fund.
Department: _City Manager___________
Prepared by: _Mike Thornton_________
Attachments: Yes____ No ______
Advertised: ____Not Required __X___
Attorney Review : Yes___ No ____
Reviewed by: Dept. Head ________
Finance Dept. __JB______________
Deputy C.M. _______EFS________
City Manager ___________________
Account No. ___NA____________
Project No. ____NA_____________
WF No. _______NA_____________
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA AUTHORIZING THE CITY MANAGER TO ISSUE AN INVITATION TO BID SOLICITING BIDS FOR THE SALE OF REAL PROPERTY LOCATED ON CR-470 (SPRAY SITE) FOR NO LESS THAN THE APPRAISED VALUE OF $4,125,000.00 AND AUTHORIZING THE CITY MANAGER TO EXECUTE THE SALES AGREEMENT WITHOUT RETURNING TO THE COMMISSION PROVIDED THE PURCHASE PRICE IS NO LESS THAN THE APPRAISED VALUE OF $4,125,000; AND PROVIDING AN EFFECTIVE DATE.
BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA:
THAT the City Manager is hereby authorized to proceed with the sale of subject property.
THAT the “reserve price” for the sale will be $4,125,000.00. The Commission shall not be obligated to accept an offer to purchase below the reserve price. The highest offer from a qualified party that exceeds the reserve price will be the winning bidder.
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 __23rd_____ day of ___June_____ 2008.