Fort Walton Beach Council agenda — 01-07-12 retreat — reading text

Minutes re: Property ( PDF) Property I - BW ( PDF) Property 2- CSC ( PDF) Property 3 - 235 HA ( PDF) Property 4- 243 HW ( PDF) Property 5 -25 MSP ( PDF) SIGNATURE BLOCK: Carole Jones Completed 12/ 20/ 2011 4: 37 PM Carole Jones Completed 12/ 20/ 20114: 37 PM Completed 12/ 21/ 2011 9: 08 AM City Manager City Council Pending Packet Pg. 33'  4.4. a CITY OF FORT WALTON BEACH, FLORIDA MEMORANDUM Office of the City Manager DATE: December 20, 2011 TO: Honorable Mayor and Council Members FROM: Robert T. Memos, City Manager SUBJECT: City Owned Surplus Properties Nn N Backeround a At the City Council meeting of December 13, 2011 the Mayor requested that an item referencing NNa City owned property, land sales and swaps be placed on the Retreat agenda. This memo contains J information about the properties that have been evaluated for designation as surplus property. The disposition of excess City real property is set forth in Section 2. 00.05 of the City Code, attached to this memo. To begin the process for disposal of the property the Code states: vc3O i;U Any city real property declared to be surplus by the city council may be disposed of MN in a manner declared by the city council, including but not limited to sealed bid, auction and negotiated sale. 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 city; advising the date by which proposals or offers must be received. 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." The City Council would first review the matter and determine whether the property was surplus before initiating the required process. All of the properties that the City owns which are presently being considered for sale either have environmental or legal issues attached to them. This does not mean that they are not marketable, only that there we obstacles to resolve to get them to a state where a buyer would not have any concerns about defects in title or physical condition of the property. The Properties 1. Bayou Drive NW - This area consists of 1. 87+ acres of Lots 1 to 7 in Block 3 of the Bayou Woods subdivision ( attached), platted in 1958 and purchased by the City in 1961. The lots abut an approximately five ( 5) acre vacant parcel that was used as a " sand" pit in the 1950' s and 1960' s then filled with yard and horticultural waste and covered with earth. In 1961 the City Council discussed the property but took no formal action on the issue then or since. There is nothing in the minutes of fifty years ago other than a brief discussion by one Council member City Owned Properties Packet Pg. 34  4. 4.a that the property " can be developed into a park ". That is the extent of the property being designated a park. The property has the land use category designation of Recreation and is zoned R1A, Residential. The land use category would have to be changed to Residential prior to sale of the property. The City has conducted a Phase I and Phase II environmental audit as well as a geotechnical analysis to determine the quality and stability of the land for development. The Phase II environmental audit has not yet been completed. From a geoteehnical perspective the large parcel is unstable and would require either excavation and backfill or pilings to support any load bearing structure( s). The seven lots do not appear to be affected by either of these problems. An appraisal was conducted in September 2011 to determine the market value of the property. As the attached appraisal indicates the total value of the seven lots is $ 224, 000. The value of individual lots may vary based on their size and location. If the property were on the tax rolls at 224, 000 for the vacant property alone the City would realize $ 1, 026 in ad valorem taxes. In order to provide access to the large parcel from Bayou Woods Drive either an easement would have to be created through one or more of the seven lots, an entire lot designated as an access, or the area could be re- platted with dedicated access points. The land is surplus because of the nearly five ( 5) acres of open space abutting the eastern lot lines of the seven lots; and that there is a developed 2. 7 acre park four ( 4) blocks west, at the southeast corner of Sotir Street and Memorial Parkway. 2. Creative Senior Center —31 & 35 Memorial Parkway —This area consists of 6. 26+ acres of land with a 8, 735+ square foot building used as the City' s Creative Senior Center and a community ballpark. The Senior Center is open 5 days a week, and on weekends for special events. The western half of the land ( 3. 05 acres) was acquired through a deed in June 1959, and reaffirmed in the 5`" Addition to the Sea Breeze plat in the Acknowledgement language in November 1959. The remainder was deeded to the City in 1970. The property has the land use category designation of Recreation and is zoned R1A, Residential. After the land use is changed to Residential the land could be platted for approximately 25 homes that could be built on the property. An appraisal was conducted in May 2011 to determine the market value of the property. As the attached appraisal indicates the estimated total value of the land is $ 1, 150, 000. The building is valued at $ 350, 000 for a total of $1, 500, 000. If the property were on the tax rolls at $ 1. 5 MM the City would realize $6, 875 in ad valorem taxes in addition to utility taxes and water and sewer fees if improved. The City Attorney will provide an opinion as to the method by which the property may be disposed as there is some unresolved title issues as this is being written. The land will become surplus when the City relocates the Senior Center operations to the new recreation center on Jet Drive, and the ball field is used for practice and the girls' 9 - 12 softball league. The concession stand/ announcers booth is obsolete and in need of rehabilitation. The City Owned Properties Packet Pg. 35  4.4. a new recreation facility will feature several new ball fields to replace existing fields that have been lost or will be lost in the future. 3. 235 Hollywood Boulevard - This property consists of 3. 81+ acres of vacant, fenced land. The land was acquired by the City in March 1945 by warranty deed. The land was used as a dumping ground until the early 1960' x. Since the land was used in that way it has been classified as a Brownfield. The City has conducted a Phase I and Phase 11 environmental audit on the property that determined the land is safe to build upon. The property has the land use category designation of Wholesale Light Industrial and is zoned MU, Mixed Use. An appraisal was conducted in May 2011 to determine the market value of the property. As the attached appraisal indicates the estimated value of the land is $ 645, 000, or $ 177, 654 per acre. If the property were on the tax rolls, from the vacant property alone the City would realize $ 2, 956 in ad valorem taxes in addition to utility taxes and water and sewer fees if improved. The land is surplus because it is vacant, there are no plans to use it for any purpose, and have no continuing or future use to the City other than a storage area for after storm debris. That use can be supplanted by creating a temporary facility to the west of pump station # 1 off of Robinwood Drive. 4. 243 -245 Hollywood Boulevard — This property consists of 3. 68+ acres of partially vacant land. The land was acquired by the City in March 1945 by warranty deed for use as a dumping ground. The land was used as such until the early 1960' s. Since the land was used in that way it has been classified as a Brownfield. The land was leased for approximately fifty ( 50) years to the Smith family who built an office/warehouse facility on the premises and either conducted several businesses there or leased space, both inside the building or on the land, to others. The City regained control of the property on January 1, 2011 and has since conducted a Phase I and Phase II environmental audit on the property that determined the land is safe to build upon. The building contains asbestos and lead paint and will be razed at the same time as those at Germany Terrace. The property has the land use category designation of Wholesale Light industrial and is zoned MU, Mixed Use. An appraisal was conducted in May 2011 to determine the market value of the property. As the attached appraisal indicates the estimated value of the land is $ 575, 000 or $ 156, 250 per acre. If the property were on the tax rolls the City would realize $2, 635 in ad valorem taxes in addition to utility taxes and water and sewer fees if improved. The land is surplus because it is vacant, there are no plans to use it for any purpose, and it has no continuing or future use for or to the City. 5. 25 Miracle Strip Parkway —This property is a vacant commercial lot of .61+ acres with 150 feet of street frontage on U. S. 98, Miracle Strip Parkway. The property was acquired through a City Owned Properties Packet Pg. 36.  4.4. a code enforcement foreclosure in December 2009. The City paid $ 26, 000+ in back taxes using CRA funds after receiving the deed to the property. In 2010 the existing building was razed also using CRA funds. The underground fuel storage tanks were removed by U.S. Environmental Protection Agency ( EPA) funds. A phase II Environmental Audit identified volatile organic compounds in the soil that must be cleaned by air stripping or remediation. The EPA has agreed to fund the clean -up and it is projected to be completed by October 2012+ which would then make the property marketable. The property has the land use category designation of Commercial and is zoned MUW -18, Mixed Use Waterfront with a floor area