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

Pv ° y M_. RROOYS SI SF o SC Ei.ti. 4 y s¢ 0 F- 5 .1. b mNVN C rEE UN 5. t. b mNVN a 0 Vnc0NA m2 ca rE ua z To: Michael D. Beedie, City Manager From: Carole Jones, Executive Assistant Date: August 20, 2013 Subject: Declaration of Surplus Property at 1564 Percy L Coleman Road 1. BACKGROUND: 1. 1. The City of Fort Walton Beach owns property at 1564 Percy Coleman Road, which is the property formerly used for the City' s Wastewater Treatment Facility. Upon execution of the Interlocal Agreement with Okaloosa County for Wastewater Treatment and Disposal, the facility was decommissioned and has sat vacant since. 1. 2. The 18 -acre parcel ( Parcel ID No. 27- 2S -24- 0000 -0006 -0000) currently serves as a decommissioned wastewater treatment facility and is used by the Sewer Collections Division for maintenance and repair of pumps. The Future Land Use Classification of the parcel is Civic, Institutional and Utilities. 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 1564 Percy Coleman Road and has determined that the City could potentially lease all or a portion of the property for various uses. Because of the proximity of the Wright Landfill and the property' s use as a wastewater treatment facility, it would be necessary to complete a Phase I & It Environmental Assessment for the property. 2. 1. 2. Staff recommends the method of disposition as a Request for Proposals to determine if any interested parties will purchase the property as -is or will lease all or a portion of the property. Once proposals are received, they will be evaluated and brought back to City Council for direction. 2. 2. If approved as excess property by City Council, Staff will proceed with advertising the competitive solicitation of the property. 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 Page 1 of 2 Pac " 18  5. 2 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 784, 080 SF of usable space. 3. 1. 1. Conservative Fair Market Value = $ 1. 50 / SF or $1, 176, 120. 00 3. 1. 2. Average Fair Market Value = $ 3. 50 / SF or $ 2, 744, 280. 00 3. 1. 3. Aggressive Fair Market Value = $ 5. 50 / SF or $4, 312, 440. 00 3. 2. NBI recommends that the City hold onto this property until the market improves. The City could explore possible lease options for portions of the property. 3. 3. With NBI' s recommendation to hold onto the property, Staff would like to pursue advertising a competitive solicitation for the lease 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 ID No. 27- 25- 24 -0000- 0006 -0000, an 18 -acre City -owned parcel 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 lease all or a portion of the property. ATTACHMENTS: Disposition of Surplus Property ( PDF) NBI - 1564 Percy L Coleman 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 11: 05 AM City Council Pending Page 2 of 2  5.2. a DISPOSITION OF SURPLUS/ EXCESS PROPERTY CHECK LIST FOR THE CITY OF FORT WALTON BEACH, FLORIDA 1. 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 r perty. 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 S. If the sale is approved by the City Council, then the City Council shall approve by ordinance the conveyance of any land of the City. FWB Code 2. 00.052 9. Once the City Council approves a contract for sale of excess real property, the subject 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 Property and development for uses benefiting the City and its citizens in the exclusive discretion of the City Council. FWB Code 2. 00. 052 11. In order to ensure each rrooposed purchase for development significantly contributes to the surrounding neighborhood and general needs of the City, 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  5. 2.b IQ '° NBI IRO # f.RTIl5 tkG ST LeNmsKisiile'.Mt lenl. Rail Lxtxtt August 13, 2013 Michael Beedie — City Manager 1564 Percy L. Coleman Rd. Fort Walton Beach, FL 32547 Dear Michael, Thank you for giving NBI the opportunity to provide a Broker' s Opinion to Value ( BOV) regarding the disposition of the property located at 1564 Percy L. Coleman Rd., Fort Walton Beach, FL 32547. Having earned the respect among all the Professionals affecting the Northwest Florida Commercial Real Estate Industry, we feel very confident in helping you meet your goals within a reasonable amount of time. 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 your ability to dispose of the property in a more " timely manner," and that all statements and proposals are open for further discussions and objective reasoning. The Listing Proposal is as follows:  5.2. b LISTING PROPOSAL FOR SALE The Valuation Method for determining the sales price for the subject property was derived by the Sales Comparison Approach forihe like kind properties that have closed in the FWB Market within the last 12 months. Based upon our assessments, we will use the Price Per Square Foot Market Value. When applied to the total approximate 784, 080 square feet of usable space, our initial asking price will start at $2, 744, 280.00. Please find the list of comparable properties in the attachments for your review. As you will see, the price per foot ranges from $3. 00 to $5. 00, thus averaging $3. 66 per foot for similar properties, which we feel establishes and aggressive base line 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 SQFT FOR SUBJECT PROPERTY: 784,080 SQ FT Price Per Foot: Sales Price: Conservative: $ 1. 50 per foot Sales Price: $ 1, 176, 120. 00 Average: $ 3. 50 per foot Sales Price: $ 2, 744, 280. 00 Aggressive: $ 5. 50 per foot Sales Price: $4, 312, 440.00 ( high side)