Okaloosa County BOCC — September 16, 2014 — reading text

Date: urchasi Directof or Designee Risk Management Review Approved as writt 14,71Z/ Date:_____ Risk r4nager or designee / County Attorney Review Apoved as written: A~ U -)P(Co)untY Atto ,( —, —\r ~ k ~ ~ ~ ,r Date: I Li Following Okaloosa County approval: Contracts & Grants Document has been received: Date: Contracts & Grants Manager Packet Pg. 761 Packet Pg. 762 Packet Pg. 763 Packet Pg. 764 Packet Pg. 765 Packet Pg. 766 Packet Pg. 767 Packet Pg. 768 Packet Pg. 769 Packet Pg. 770 Packet Pg. 771 Packet Pg. 772 Packet Pg. 773 Packet Pg. 774 Packet Pg. 775 Packet Pg. 776 Packet Pg. 777 Packet Pg. 778 Packet Pg. 779 Packet Pg. 780 Packet Pg. 781  BOARD OF COUNTY COMMISSIONERS AGENDA REQUEST DATE: September 16, 2014 TO: Honorable Chairman and Members of the Board FROM: Jeff Littrell SUBJECT: Purchase of Odd Fellow Miracle Strip Lodge Property DEPARTMENT: Water and Sewer BCC DISTRICT: All STATEMENT OF ISSUE: Okaloosa County Water & Sewer is requesting authorization to purchase the property comprising of the Northeast corner of the intersection of Lewis Turner Blvd. and Oddfellow Rd. Parcel ID: 35-1S-24-0000-0031-0000, also known as the Miracle Strip Lodge, Independent Order of Odd Fellows (IOOF). The value of the property has been appraised at $230,000.00 of which both parties (Grand Lodge of the IOOF of Florida, Inc. and Okaloosa County Water & Sewer) agree to be the sale price. In addition, staff requests authorization to adjust the rental payments that have been made from February 2014 through the closing in the amount of $300.00/month rather than $241.67. BACKGROUND: Okaloosa County Water & Sewer entered into a lease with the Miracle Strip Lodge No. 60 of the Independent Order of Odd Fellows on February 22, 1994 for the use of the Western section of the South (front) parking lot. OCWS paid for the curb and pavement of the parking space, which is still in use. The owners of the IOOF Lodge have informed Staff they no longer have an interest in extending the lease and have stated an interest in selling all the property. A request was presented to, and adopted by the Board of County Commissioners on February 4, 2014 to attempt to acquire the property and while that process was ongoing, to extend the lease on a month to month basis at a rate of $241.67. An appraisal was commissioned, which valued the property at $230,000.00. That offer was conveyed to IOOF Lodge and accepted. During the interim, pursuant to the direction of the Board, Water & Sewer paid the amount of rent for the property at the same rate as had been in effect at the expiration of the lease. An attempt was made to pay for a two month period of the lease in the amount of $241.67 per month, which was promptly returned. IOOF chose to invoke a Consumer Price Index (CPI) increase over 5 years as stated in the lease agreement. (See attached correspondence and lease). Though they had a right in the past to include an annual CPI increase, IOOF lodge had failed to include that adjustment. The new monthly payment with the implementation of the CPI escalator is now $300.00/month for an 8 month period for a total of $2,400.00, or $300.00 per month until closing. The total differential of $58.33 per month over the 8 month period equals $466.64 more than was authorized by the Board. OPTIONS: Approve or Deny RECOMMENDATIONS: Staff recommends approval for the County Attorney to prepare the required purchase documentation, proceed with the purchase of the IOOF property and the Chairman be authorized to execute all necessary documentation to effectuate the closing. Staff also recommends the authorization of the 8 month lease payment of $2,400.00, or $300.00 per Packet Pg. 782 month until closing. RECOMMENDED BY: APPROVED BY: Ernie Padgett, County Administrator Packet Pg. 783 FROM: INVOICE Teel & Waters Real Estate Co., Inc. INVOICE NUMBER 499 N. Ferdon Blvd. 14-54 Crestview, FL 32536 DATE 04/14/2014 Telephone Number: (850) 682-6156 Fax Number: (850) 682-3321 REFERENCE TO: Internal Order #: Lender Case #: Okaloosa County (Water & Sewer) Client File #: P.O.21401123 1804 Lewis Turner Blvd. Main File # on form: 14-54 Ft. Walton Beach, FL 32547 Other File # on form: Telephone Number: Fax Number: Federal Tax ID: 59-1438221 Alternate Number: E-Mail: Employer ID: DESCRIPTION Lender: Okaloosa County (Water & Sewer) Client: Okaloosa County Purchaser/Borrower: Client: Okaloosa Water & Sewer Property Address: Lewis Turner Blvd. & Oddfellow Rd. City: FWB County: Okaloosa State: FL Zip: 32548 Legal Description: See attached FEES AMOUNT Form appraisal 800.00 SUBTOTAL 800.00 PAYMENTS AMOUNT Check #: Date: Description: Check #: Date: Description: Check #: Date: Description: SUBTOTAL TOTAL DUE $ 800.00 Form NIV5 — "WinTOTAL" appraisal software by a la mode, inc. — 1-800-ALAMODE Teel & Waters Real Estate Co, Inc. (850) 682-6156 Packet Pg. 784  Main File No. 14-54 Page #1 APPRAISAL OF REAL PROPERTY LOCATED AT: Lewis Turner Blvd. & Oddfellow Rd. FWB, FL 32548 FOR: Okaloosa County (Water & Sewer) 1808 Lewis Turner Blvd. Ft. Walton Beach, FL 32547 AS OF: April 11, 2014 BY: Randy G. Bracewell State-Certified General Real Estate Appraiser RZ589 Form GA3 — "WinTOTAL" appraisal software by a la mode, inc. — 1-800-ALAMODE Packet Pg. 785  Teel & Waters Real Estate Co, Inc. (850) 682-6156 Main File No. 14-54 Page #2 LAND APPRAISAL REPORT File No. 14-54 Borrower Client: Okaloosa Water & Sewer Census Tract 0209.00 Map Reference Okaloosa Property Address Lewis Turner Blvd. & Oddfellow Rd. City FWB County Okaloosa State FL Zip Code 32548 SUBJECT Legal Description See attached Sale Price $ N/A Date of Sale N/A Loan Term N/A yrs. Property Rights Appraised Fee Leasehold De Minimis PUD Actual Real Estate Taxes $ (yr) Loan charges to be paid by seller $ N/A Other sales concessions N/A Lender/Client Okaloosa County (Water & Sewer) Address 1808 Lewis Turner Blvd., Ft. Walton Beach, FL 32547 Occupant Vacant Appraiser Randy G. Bracewell/Cert. Gen.#RZ589 Instructions to Appraiser Provide Opinion of Fair Market Value Location Urban Suburban Rural Good Avg. Fair Poor Built Up Over 75% 25% to 75% Under 25% Employment Stability Growth Rate Fully Dev. Rapid Steady Slow Convenience to Employment Property Values Increasing Stable Declining Convenience to Shopping Demand/Supply Shortage In Balance Oversupply Convenience to Schools Marketing Time Under 3 Mos. 4-6 Mos. Over 6 Mos. Adequacy of Public Transportation