Fort Walton Beach Council agenda — 11-21-06 ‎(special)‎ — reading text

CITY OF FORT WALTON BEACH City Council Special Meeting Agenda Tuesday, November 21, 2006 - 5: 30pm City Council Chambers 107 Miracle Strip Parkway, SE Fort Walton Beach, F L 32548 CALL TO ORDER PLEDGE OF ALLEGIANCE (Mayor) I SPECIAL MEETING AGENDA 1. Consideration of the abandonment plan offered by the Northwest Florida Fair Association. ( City Manager) ( See Backup) 2. Consideration of a request to approve the 2007 Operations Plan for the Northwest Florida Fair Association. ( City Manager) ( See Backup). ADJOU RN Any person who decides to appeal any decision made with respect to any matter at this meeting will need a record of the proceedings, and for such purpose may need to ensure that a verbatim record of the proceedings is made, which record includes the testimony and evidence upon which the appeal is to be based. (FS286.0105). The City of Fort Walton Beach adheres to the American with Disabilities Act and will make reasonable modifications for access to this meeting upon request. Please call City Clerk Helen Spencer at 850- 833- 9509 to make a request. For Hearing Impaired dial the City Hall TOO # 850- 833-9925 or 1- 800- 955- 8771 ( TOO) or 1- 800- 955-8770 (Voice). Requests must be received at least 48 hours in advance of the meeting in order to allow the City time to provide requested service.  City of Fort Walton Beach Memorandum TO: Honorable Mayor and City Council FROM: Joyce Shanahan, City Manager SUBJECT: Declaration of Excess Property - 1958 Lewis Turner Blvd. DATE: November 16, 2006 BACKGROUND: The City' s license agreement with the Northwest Florida Fair Association ( NWFFA) was terminated by a vote of City Council on July 13, 2006. The City Attorney sent a letter effectuating the termination on July 14, 2006. On August 18, 2006 staff received a written request from J. LaDon Dewrell, attorney representing the Northwest Florida Fair Association, to be added to the City Council Agenda for August 22, 2006 in regards to the issues concerning the Northwest Florida Fair Association. Mr. Dewrell's request inquired, among other queries, whether the City would sell a portion of the property to the Northwest Florida Fair Association, would the City be willing to extend the license agreement or if the City would be willing to purchase the improvements of the NWF Fair Association at their cost. Council considered the request at the August 22, 2006 City Council Meeting and voted to take no action until an abandonment plan was filed by the NWF Fair Association. On October2, 2006, staff received a letter from the Northwest Florida Fair Association entitled " Fort Walton Beach Fairgrounds Abandonment Plan." In the request, the NWFFA asked for consideration of five issues including renegotiation or renewal of the license agreement, offer to buy a portion of the Fairgrounds property, offer to sell the buildings and improvements on the City- owned property, extension of the agreement to allow the NWFFA honor its outstanding contracts; or extend the time period for facility removal for 180 days. City Council, meeting in a special session on 25 October 2006, reviewed the request of the NWFFA concerning the property leased to them by the City. Council voted not to renew or renegotiate the license agreement with the NWFFA. However, Council did vote to begin the process of analyzing whether or not the property can be declared excess. In a follow- on action Councilalso voted to extend the termination date of the current license agreement until June 30, 2008, or until legally disposed. DISCUSSION: The Code of Ordinances of the City of Fort Walton Beach provides unambiguous direction with regard to the disposition of public property. Specifically, Section 2. 00. 05 requires that the City Manager submit a report and recommendation to the City Council for review and determination whether the parcel is unneeded for the immediate and future development/ use requirements of the City; and whether it should be declared excess. According to the Code, no property shall be considered as unneeded for the immediate and future development/ use requirements of the City if Page 1 of 3 the City has any existing or projected development/ use for the property. The term development/ use excludes utilization for public utilities purposes which may be reserved to the City upon disposal of the property. As required by the Code, staff has reviewed the purchase of the property at 1958 Lewis Turner Blvd to determine whether it is needed for an immediate or future development of the City. Accordingly, staff reviewed the purpose of purchasing the property and finds that: 1. Staff recommended to Council that the City purchase the property, at least in part, to maintain the recreational use of the softball complex and picnic area. As stated in previous staff reports regarding the acquisition of the property; the purchase of the property was incorporated into the City' s Capital Improvements Plan in order to ensure this aspect of our recreational needs were met. In addition, staff submitted community budget requests in an effort to secure state funding towards the purchase, which were ultimately unsuccessful. 2. The City partially financed the purchase of the property at 1958 Lewis Turner Blvd with ten- year tax exempt bond proceeds. These tax- exempt bonds include a safe harbor provision. Generally, this provision provides that the propertypurchased with tax exempt financing may only be used for governmental purposes for a period of five years or until the debt is satisfied. According to the Florida League of Cities Bond Counsel, if the property were sold to the NWF Fair Association, the City would be required to have an appraisal to determine Fair Market Value and would not be permitted to sell at less than FMV. The proceeds of the sale could be utilized to pay down the debt or to fund other capital projects. If the property were sold to another jurisdiction, e. g. Okaloosa County, these restrictions would not apply because they are a governmental in nature and provide/ serve similar public purposes. 3. At 11 April 2006, 13 July 2006, 26 September 2006 and 9 meetings on October 2006, Council directed the Manager to discuss with County the Administrator the possibility of locating the Judicial Center Annex Expansion on a portion of the 1958 Lewis Turner Property. This direction from Council indicates that there is a current and/ or future need for this property. 4. Since the annexation of this property was completed on 25 April 2006, land use designations for this property needed to be developed. Staff requested and received approval to solicit bids to develop a master plan for this parcel. In so soliciting for a master plan, there is the underlying assumption that there remains a future need/ use for this property. 5. The City Attorney has opinioned in an email dated 7 August 2006 that there is no basis for a determination that the property is " unneeded" for a City municipal purpose" based upon some of the reasons outlined above. CONCLUSION: Staff believes that there is sufficient data to suggest that the City has a current and future use for the properties located at 1958 Lewis Turner Blvd., up to and including other governmental and recreational uses. Therefore, Staff is unable to make a Page 2 of 3 recommendation to City Council that this parcel be declared excess unless Council is provides different direction regarding the issues outlined above. If the property not declared excess, then under current Code requirements, it may not be sold. It was suggested that the City Code provisions could be modified in order to also has permit the sale of the property to the NWFFA. However, the City Attorney indicated in an opinion dated 30 October 2006 that it is not advisable to amend the Code for specific situations or issues. Rather, if Council decides to transfer the property interest to the NWFFA, it can do so via an ordinance authorizing an interlocal agreement. Noting that any property conveyed to the NWFFA would remain public property, and as per current Florida State Statutes upon dissolution of the fair, the property would be reconveyed to the contributing jurisdiction. Staff believes that there appears to be sufficient acreage to allow current and some proposed future uses ( Judicial Center Annex Expansion) to co- exist on this property should that be Council' s desire. As an aside, City staff has received information from the NWF FA a willingness to revisit the City' s compensation received from expressing them. ( Attachment C) Therefore, at this time, staff does not recommend selling or transferring ownership of the property to the NWF Fair Association. Should Council wish to allow the NWFFA to remain on the property Council should direct the City Manager and City Attorney to a new lease or license agreement, providing specific direction with negotiate regard to oversight, compensation, length of term, termination and the like. Possible Motions: the NWF Fair 1) To approve the abandonment plan as proposed by Association at the October 25, ( Attachment D) with or without an extension for removal of buildings. 2) To direct staff to prepare an Ordinance developing an interlocal agreement for the transfer of a portion of the property located at 1958 Lewis Turner Blvd. to the NWF Fair Association. 3) To direct staff to negotiate a new lease or license agreement with the NWF FA for the use of a portion of this property and provide specific direction with regard to oversight, compensation, length of term, termination and the like. Respectfully Submitted, J J\ j)VV~ Jo ce $ lia~~ an ity Manager Attachments: A - City Code - Section 2. 00. 05 ( Declaration of Excess Real Property) B- City Attorney Opinions C- Memo from Charles W. Rigdon D- NWF FA - Abandonment Plan E- Minutes 25 October 2006 Special Council Meeting Page 3 of 3 Attachment A - City Code Section 2. 00. 05 Declaration of Excess Property) Sec. 2. 00. 05. City Excess Real Property. The city manager may, from time to time recommend