Fort Walton Beach Council minutes — 10-25-06 special minutes — reading text

date for the 180 days from the date of the final decision by Council to remove all facilities. Mr. Rigdon replied depending on how Council votes, the 180 days would be from tonightor from the July14th notice date. He said if Council extends the agreement to allow them to fulfill their contracts, they ask for 180 days from that last date of the final event to vacate. Mr. Minich expressed his thoughts that the City should re- negotiate the lease, that the City made a ~"",."",..",',', mistake, and that the facility has a lot of use and is a benefit to the community. He would like the City to '. re- negotiate the lease with the City to still own the property, and work out a price and a lease that would work for both and not make it so restrictive to restrict their business but to encourage their parties, business. He commented if they can move forward to have both the judicial center and the fairgrounds at the location there will be an excellent facility that meets the needs of the County, the fairgrounds, and have a site for emergency purposes. Mr. Patterson agreed and added he has been approached by a number of people and not one person wants to see the fairgrounds go away. He commented if an agreement can be worked out it would benefit the community because it is a place that is affordable for events to be held. Mr. Tucker voiced his opposition to the city owning and leasing the property. He expressed his desire to sell the property and let it become an asset for the Fair Association. Mr. Minich questioned whether the City can sell the property and the process involved. The City Manager explained there are specific procedures in the City Code that must be followed in order to sell the property. Mr.Tucker further expressed his position that he would like to see the fairgrounds stay but not for the city to own it and lease it to the Fair Association because there are problems when the City leases out property. Mr. Minich disagreed and mentioned the City leases out other property with no problems. He further mentioned that the Air Force Base wants a buffer and have declared that property is a good buffer. He believed it should be a lease with the fairgrounds and not a license. The City Attorney referenced the motion made and seconded to re- negotiate the lease, and the first option from the Fair Association with the request to re- negotiate and renew their current lease. She noted it is not a lease, it has been a license agreement, and there is a distinct legal difference in a license and a lease. She said when the City initially entered the agreement it was handled as a license which meant that the City did have very significant oversight, more so than they would in a lease; it was also conditioned on the fact that it was a public entity and they were there for public purpose; and it was below the fair market value of the lease price. She said the motion is to bump it up to fair market value with a lease. She said in her opinion that will convolute the issue because the Fair Association has very specific : the~ are to . t? do abllotwCed dl? als ak~ ASStOCiationb' t.hedY lare allowdedt rymg otdherlm~tnhey !.......:.'......... irementston Wdhat reqku.Ing to ea WI a ' I i ma even s an occasions; u ouncl 109 a a com me IS 00 ease an valuation of the total programs. She said a lease will change the nature of the document in place now. Mr. Minich commented the City has several leases and wished to know if they are all at fair market value. The City Attorney answered they are all below fair market value because the decision has been made they are a public purpose lease. Mr. Minich questioned if the operations of the Fair would be a public purpose. The City Attorney believed it is a combined purpose as they have very commercial purposes that are clearly not within the Statute regarding the Fair Association, and they have other activities that are clearly within the public purpose. Mr. Minich received clarification that the combined purpose and the oversight would be a consideration when a price is established. Special Council 10- 25- 06 97 ABANDONMENT PLAN cont. The Mayor wished to know if a lease could be worked out for the fairgrounds. The City Attorney answered it did not have to be a license. She said if they are going into a fair market value lease, it puts the City into a different realm. Mr. Minich remarked the fairgrounds has as much public use as other leases the City has, and because of the combined use of the property by the Fair Association that it should be taken into consideration in negotiating the cost for the lease; however, it should not be the fair market value because they provide a lot to the public. The Mayor clarified that the motion is to negotiate a lease with the Northwest Florida Fair Association. Mr. Minich further commented the oversight given before is not needed. Mr. Tucker wished to know why Mr. Minich objected to selling the property to the Fair Association. Mr. Minich commented he thinks the lease is the best way to go and thought they could arrive at a good price for the lease and when the lease is ended, it is still the City' s property. The Mayor called for the vote on the motion and it failed by a vote of 2 to 4 with Patterson and Minich in favor and Holmes, Campbell, Tucker, and Hartwell opposed ( Pullen absent). Discussion began on the second option proposed by the Fair Association: 2) Request that the City establish a price and offer to sell the property currently required by the Fairgrounds Association to us. The Mayor opened the floor for public input. Chris Gibson, 249 Brooks Street, city resident, remarked until there is a master plan for the property that the property should not be sold to anyone. Mr. Hartwell wished to know if the Fair Association could legally own the property. Mr. Charles Rigdon responded in the affirmative, that the Fair Association can own property. Mr. Tucker wished to know the amount of acres the Fair Association would want. Mr. Charles Rigdon responded 18- 20 acres, and they would need a joint agreement for parking. Mr. Holmes wished to know if it is assumed the Fair Association would want the acreage they are on now, and that the City would sell them that particular parcel. Mr. Charles Rigdon mentioned they are handicapped because of their buildings and they would try to formulate a plan that would incorporate their existing facilities. He stated it would be difficult for the Fair Association to purchase the land and then build new facilities. He mentioned the City should also establish how it is going to be appraised. Mr. Tucker wished to know if the Fair Association is prepared to negotiate with the City Manager on the purchase of the property. Mr. Charles Rigdon replied they are prepared to negotiate. Mr. Hartwell wished to know if the Fair Association would be willing to move any of the buildings, and build new up to code structures. Mr. Charles Rigdon replied the Fair Association has had 2- 3 master plans prepared over the years, but it is cost prohibitive. Glenda Glover, 116 Waynel Circle, expressed her understanding when selling property it would have to be appraised then placed up for bid. She wished to know if Council could say they will sell it to the Fair Association, legally.  10- 25-06 98 Special Council ABANDONMENT PLAN cont. has to follow The City Attorney replied she put out an opinion on that issue a few months ago and the City the procedure. She said one of the biggest hurdles is the first step, declaring the property as excess if they intend to sell it; then the next step is how to arrive at the value and the appraisal and how it would actually be sold, whether it be by sealed bid, auction, or negotiated sale; but either way it would go out for a bid. Mr. Holmes noted the City can sell the property but cannot guarantee the sale to the Fair Association, or has the high bid would be first. any person; it has to go out to the public and whoever l to the The Mayor expressed his doubt that the City could establish a price and offer to sell the property Fair Association as requested. The City Manager mentioned a caveat that one of the options is a negotiated sale in that the Council can and enter into a negotiated sale. She said determine there is a specific purpose for that property can once it has been out for bid and the prices received, the City can still consider them because it is in the best interest of the community. The City Attorney pointed out the first step is declaring it excess. the Fair Chris Gibson, 239 Brooks Street, mentioned if the City does decide to sell the property to Fair Association would not turn around and Association, there be a condition in the sale to assure that the sell the property. the Fair Mr. Tucker wished to make a motion that the City Manager enter into negotiations with at which, after due diligence with the law, the property can Association to allow them to discover price a be sold to them. to go through The Mayor pointed out the City cannot sell directly to the Fair Association, that the City has to declare the the process, and believed Mr. Tucker is asking the City Manager to begin the process property excess so the City can sell the property. bid on the Mr. Patterson stated he was asked the question why the City is not opening the land for public property for the