Okaloosa County BOCC — August 4, 2015 — Shoal River Reservoir Land Acquisition - Purchase Approval — agenda request

BOARD OF COUNTY COMMISSIONERS AGENDA REQUEST DATE: August 4, 2015 TO: Honorable Chairman and Members of the Board FROM: Jeff Littrell SUBJECT: Shoal River Reservoir Land Acquisition - Purchase Approval DEPARTMENT: Water and Sewer BCC DISTRICT: 1 STATEMENT OF ISSUE: Staff requests that the Board of County Commissioners (BCC) approve the purchase of land for the future Shoal River Off-Line Reservoir and other associated infrastructure and authorize the Chairman to execute all of the Resolutions, Purchase & Sale Agreements, and associated Closing Documents. This purchase involves two real estate transactions, as follows: 1) ~302 acres from Haiseal Timber, Inc. for $632,500 (plus closing costs), and 2) ~339 acres from the Holland M. Ware Charitable Foundation for $747,500 (plus closing costs). Resolutions and Purchase & Sale Agreements for each property are attached for your review and consideration. Total acreage to be purchased is 641 acres for a total purchase cost of $1,380,000 (plus closing costs). BACKGROUND: See attached files: "OCWS Future Water Supply Update" - explains the need, background, and history. Note this is from the 12/3/2013 BCC presentation. "OCWS Future Water Supply Plan (Map)" - depicts the current plan/strategy, after years of planning. This map shows potential locations for the following infrastructure: surface water treatment plant, off-line reservoir, river intake structure, raw water pumping station, transmission lines, roads, and the Gulf Power transmission line relocation. "2010 Implementation Plan (Updated)" - the BCC approved this plan in February 2010. At the time, it was an unfunded road map. Since then, we have entered into as many partnerships as possible - Northwest Florida Water Management District, Eglin Air Force Base, and the U.S. Army Corps of Engineers - to accomplish many items on this Implementation Plan. Items highlighted in green are completed, and items highlighted in yellow are underway. In addition to the above-mentioned background items, the following documents are attached for your consideration, with an explanation below: - past Agenda Request from 5/20/2014 - Option Agreement with Haiseal Timber (approved at 7/7/2015 BCC meeting) - Resolution, for Haiseal Timber property - County Contract Review Coordination Sheet for Haiseal Resolution - Purchase & Sale Agreement, for Haiseal Timber property - County Contract Review Coordination Sheet for Haiseal Purchase & Sale Agreement and Option Agreement - Resolution, for Holland Ware property - County Contract Review Coordination Sheet for Holland Ware Resolution - Purchase & Sale Agreement, for Holland Ware property - County Contract Review Coordination Sheet for Holland Ware Purchase & Sale Agreement - budget sheets (CIP sheet and grant sheet) At the 5/20/2014 meeting, the BCC authorized staff to move forward with the Shoal River Reservoir Land Acquisition with the grant funding that has been obtained. The BCC also authorized staff to obtain appraisals, negotiate with property owners, and bring back contracts for approval and execution. Since the 5/20/2014 BCC meeting, two independent land appraisals have been completed, per State Statutes on each tract of land: approximately 302 acres from Haiseal Timber and approximately 339 acres from the Holland M. Ware Charitable Foundation. Both Sellers have agreed to a purchase price equal to the average of the two appraisals on their tract. At the 7/7/2015 BCC meeting, the Board approved an Option Agreement with Haiseal Timber regarding their property. Since then, OCWS staff and County attorneys have negotiated the terms of a proposed Purchase & Sale Agreement with the Holland M. Ware Charitable Foundation. Therefore, staff is requesting approval of this Purchase & Sale Agreement, as well as to exercise the Option Agreement with Haiseal Timber by execu