Fort Walton Beach Council agenda — 08-20-13--surplus properties — reading text

- 25 -24 -0270- 0002 -0060 1. 2. 3. 13 -25 -24 -0270- 0002 -0070 1. 2. 4. 13- 25 -24- 0270 -0002 -0080 1. 2. 5. 13- 2S -24- 0270 -0002 -0090 1. 2. 6. 13- 2S -24- 0270 -0002 -0100 1. 2. 7. 13- 2S -24- 0270 -0002 -0110 1. 2. 8. 13- 25 -24- 0270- 0002 -0120 1. 2. 9. 13- 2S -24- 0270 -0002 -012A 1. 3. Chester Pruitt Recreation Center was built around 1977. 2. DISCUSSION: 2. 1. With the initiative to evaluate City -owned properties, Staff and the City Attorney developed a checklist for the disposition of surplus property. The first step in the process is for the City Manager to submit a report and recommendation to determine whether the property can be declared surplus. If City Council determines the property as excess property, an appraisal is required along with the manner in which the excess property will be disposed of 2. 1. 1. Staff has evaluated the property at 15 Carson Drive SE and determined that the City will have no future development plans for the property. 2. 1. 2. Staff would also recommend the method of disposition as a Request for Page 1 of 3  5. 1 Proposals with negotiated sales by the City Manager and City Attorney upon receipt and evaluation of the proposals. 2.2. If approved as excess property by City Council, Staff will proceed with obtaining an independent appraisal and advertising the competitive solicitation of the property with possible assistance from NBI to evaluate proposals. 2. 2. 1. Upon receipt of the proposals for the parcels, a contract for sale based on the negotiations will be drawn up and brought back to City Council for review and approval. If the sale is approved by City Council, an ordinance conveying the land is required. 3. FINANCIAL INFORMATION: 3. 1. NBI Properties, the City' s real estate broker, performed an evaluation of the property to determine a preliminary fair market value of the property, recommend the best use of the property, and recommend the method of disposition, sale or lease. In their report, NBI evaluated similar properties in order to estimate a fair market value. Based on the evaluation, a Conservative, Average, and Aggressive fair market value price was proposed based on 12, 900 SF of usable space. 3. 1. 1. Conservative Fair Market Value= $ 30. 00 / SF or $ 387, 000 3. 1. 2. Average Fair Market Value= $ 42. 00 / SF or $ 541, 800 3. 1. 3. Aggressive Fair Market Value = $ 52.00 / SF or $ 670, 800 3. 2. NBI recommends the best use and disposition is a direct sale to an end user or to a residential developer with an initial list price of $425, 000. 3. 3. There will be costs associated with advertising the competitive solicitation for the purchase of the property. 3. 4. It is estimated that the cost of the appraisal and the legal advertisements will not exceed 5, 000. The cost of the appraisal and the legal advertisements is available in the FY 2012 -13 General Fund Balance. 4. 4. 1. Staff respectfully recommends City Council declare Parcel Nos. 13- 2S- 24- 0270 -0002- 0050, 13- 25 -24- 0270 -0002 -0060, 13- 2S -24- 0270 -0002 -0070, 13- 25- 24- 0270 -0002- 0080, 13- 25 -24- 0270- 0002 -0090, 13 -25 -24 -0270 -0002 -0100, 13- 25- 24- 0270 -0002- 0110, 13- 25 -24- 0270 -0002 -0120, and 13- 25 -24- 0270- 0002 -012A, a 1. 5 -acre City- owned property located at 15 Carson Drive SE as excess property in accordance with Chapter 2. 00. 05 of the City' s Code of Ordinances. 4. 2. Staff also recommends City Council authorization to issue a Request for Proposals along with the proper legal advertisements to obtain competitive proposals to purchase the property through a negotiated sale upon the receipt of the proposals by the City Manager and City Attorney with assistance from NBI as necessary. ATTACHMENTS: Disposition of Surplus Property ( PDT) Page 2 of 3  5. 1 NBI - 15 Carson Drive- 8 -20 -13 ( PDF) SIGNATURE BLOCK: Carole Jones Completed 08/ 13/ 2013 4: 07 PM Carole Jones Completed 08/ 13/ 2013 4: 07 PM City Manager Completed 08/ 15/ 2013 10: 54 AM City Council Pending Page 3 of 3  F51. DISPOSITION OF SURPLUS/ EXCESS PROPERTY CHECK LIST FOR THE CITY OF FORT WALTON BEACH, FLORIDA I. The City Manager shall submit a report and recommendation to City Council for review and determination whether the parcel is unneeded for the immediate and future development/use requirements of the City and should be declared excess. Said City property cannot be in present use or have a future project plan. FWB Code 2. 00.05 2. The City Council must determine that the City property is excess property. FWB Code 2. 00.051 3. The City Manager shall secure one independent appraisal of the property by appraisers qualified to conduct appraisals for the State of Florida by general law. FWB Code 2. 00.051 4. The City Council also determines the manner that the excess property is disposed of, including but not limited to sealed bid, auction and negotiated sale. FWB Code 2. 00.051 5. The City Manager shall cause written notice of intent to dispose of property to be sent to abutting property owners, if any, and advertised twice in the legal advertisement section in a newspaper having general circulation within the Citv; advising the date by which proposals or offers must be received. FWB Code 2. 00. 051 6. Once a contract for sale has been negotiated to the satisfaction of the City Manager and proposed purchaser, the City Manager shall cause said contract to be submitted to the City Council for its review and approval. FWB Code 2. 00.051 7. The City Council shall review any proposed contract for sale and make a determination as to whether said contract is approved or disapproved. FWB Code 2. 00. 052 eN 8. If the sale is approved by the City Council, then the City Council shall approve by r ordinance the conveyance of any land of the Citv. FWB Code 2. 00. 052 a 9. Once the City Council approves a contract for sale of excess real property, the subject a property may then be sold according to the terms of said contract. FWB Code 2. 00. 052 10. Award shall be made based upon consideration of best price and utilization of the Dropertv and develooment for uses benefiting the Citv and its citizens, in the exclusive discretion of the City Council. FWB Code 2. 00.052 11. In order to ensure each proposed purchase for development significantly contributes to the surrounding neighborhood and general needs of the Citv, the City Council reserves the right to place restrictions and covenants in the deed of conveyance which will guarantee accommodation of the City' s public utilities provisions and the public' s interest in proper and timely development of the property consistent with City development standards. All restrictions and conditions imposed shall be covenants running with the land, violation of which shall result in reversion of title to the City. FWB Code 2. 00. 054  S. t.b q NBI PROP FRT tRS { NC August 13, 2013 Michael Beedie —City Manager 15 Carson Dr. SE Fort Walton Beach, FL 32548 Dear Michael, Thank you for giving NBl the opportunity to provide a Broker' s Opinion to Value ( BOV) regarding the disposition of the property located at 15 Carson Dr. SE, Fort Walton Beach, FL 32548. Having earned the respect among all the Professionals affecting the Northwest Florida m Commercial Real Estate Industry, we feel very confident in helping you meet your goals within a vN_ reasonable amount of time. M Please review our listing proposal and Broker' s Opinion to Value to help with your decision on fulfilling your objectives. Keep in mind these are MARKET DRIVEN quotes that will aid in ONo your ability to dispose of the property in a more ` timely manner," and that all statements and i proposals are open for further discussions and objective reasoning. The Listing Proposal is as follows: Uoxmc`N0 F32 L rEE UF  FS 1.. b LISTING PROPOSAL FOR SALE The Valuation Method for determining the sales price for the subject property was derived by the Sales Comparison Approach for the like kind properties that have closed in the FW73 Market within the last 6 months. Based upon our assessments, we will use the Price Per Square Foot Market Value. When applied to the total approximate 12, 900 square feet of usable space, our initial asking price will start at $ 425, 000.00. Please find the list of comparable properties in the attachments for your review. As you will see, the price per foot ranges from $ 57.00 to $ 30.00, thus averaging $ 42. 00 per foot for similar properties, which we feel establishes and aggressive base litre price per foot value for the Subject Property. Without knowing your timelines for disposition, we would like to submit a range of values noted below as Conservative, Average, and Aggressive. The range of values for the Subject Property is as follows: TOTAL SOFT FOR SUBJECT PROPERTY: 12,900 SQ FT Price Per Foot: Sales Price: Conservative: $ 30. 00 per foot Sales Price: $387, 000. 00 Average: $ 42. 00 per fool Sales Price: $ 541, 800. 00 Aggressive: $ 52. 00 per foot Sales Price: $670. 800. 00 N