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

estimate annually) These proposed changes will increase the payments to the city to around $ 55, 500.00 per for car sales which has historically been year plus any revenue from the parking lot rental 5000, 00 to $ 10, 000.00 annually. The fair association will also put into place a new fee commercial which will take one to achieve. This will increase the schedule for use year rental income additionally. to know I hope this helps you in your planning for the property. I want the city fathers that we appreciate their position on the taxpayer>s burden- The fair wants to be part oftha solution not viewed as the problem. If you have any questions or comments please don~t hesitate to call me at the office.  City of Fort Walton Beach MEMORANDUM TO: Honorable Mayor and City Council FROM: Joyce Shanahan, City Manager SUBJECT: Request by Northwest Florida Fair Association DATE: lIct 111, 288(;- ~ Z0 ZIXJ" BACKGROUND: The Softball Complex and the Fairgrounds are comprised 42. 3 acres. The City of Fort Walton Beach has leased a portion of that property since 1971. In early 2004, the City was advised that the US Forest Service would no longer consider long- term leases for that property. Until late 2003, the outright purchase of the property was not possible and was only available through a complicated land swap arrangement. However, with the adoption of the Florida Land Management Act of 2003, the direct purchase of US Forest Service property became feasible. This Bill, sponsored by US Senators Bob Graham and Bill Nelson, permitted the direct acquisition of US Department of Agriculture property for a variety of parcels throughout the state. Through the assistance of Congressman Jeff Miller, the Florida Land Management Act of 2003 was enacted in December 2003. This permitted the acquisition of the Softball and Fairgrounds Complexes from the USDA. With the purchasing process clarified, the U. S. Department of Agriculture, Forest Service agreed to reappraise the property in July 2004. The City purchased the property on October 26, 2005, at a cost of $ 4, 000, 000. There remains a structure height limitation ( from Eglin AFB) of SO feet; and a requirement that the use of electromagnetic radiation devices be coordinated with Eglin AFB. The final requirement to permit the US Forest Service the right to continue to administer its US Dept of Agriculture' s Special Use Permit to its expiration date of December 31, 2005) has been satisfied. On December 29, 2005 the City entered into a three year license agreement with the Northwest Florida Fair Association for a portion of the property. ( Attachment A). On July 13, 2006 City Council voted to terminate the license agreement for this property. The City Attorney provided written notice to the NWF Fair Association the license agreement would terminate 180 days from July 13, 2006. ( Attachment B). On August 18, 2006 staff received a written request ( Attachment C) 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. Specifically Mr. Dewrell' s request inquired whether the City would sell a portion of the property to the Northwest Florida Fair Association; if so, would the City sell it at the original purchase price, if not, what would be the asking price. Additionally Mr. Dewrell asked that if the City was not willing to sell the property to the NWF Fair Association, would the City be willing to extend the license agreement; and if so, for how long. If the City was not willing to extend the license agreement, Mr. Dewrell inquired if the City would be willing to purchase the Page 1 improvements of the NWF Fair Association at their cost.If the City was not willing to allow the NWF to purchase the property and the City was unwilling to extend the license agreement or purchase the improvements, would the City be willing to allow the NWF Fair Association until July 2007 to remove the improvements. Council considered the request at the August 22, 2006 Council meeting and voted to take no action until an abandonment plan was filed by the NWF Fair Association. DISCUSSION: On October 2, 2006, Staff received a letter from the Northwest Florida Fair Association entitled " Fort Walton Beach Fairgrounds Abandonment Plan." ( Attachment D). In the request, the NWF Fair Association is asking for consideration of five issues as outlined below: 1) Renegotiate or renew current lease. The City' s license agreement with the NWF Fair Association 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. The license agreement can not be renewed as it was terminated; therefore the only recourse is to negotiate a new license agreement with the NWF Fair Association. If it is the desire of Council to consider a new license agreement with the NWF Fair Association, staff requests that Council direct the City Manager to negotiate new terms with the NWF Fair Association and bring back an agreement for consideration. 2) Establish a Drice and offer to sell the property required bv the Fair Association. The property, last appraised in the early 1990' s, was partitioned into three units for appraisal purposes. It was valued as of November 2004, although the appraisal itself was not received for a full six months after that date. The overall value of the property was appraised at $ 4, 000, 000 or $ 95, 238 per acre. Unit 1 was 22. 82 acres and included most of the fairgrounds and their improvements and was valued as vacantproperty at $ 1, 000, 000 or $ 43, 821 per acre. Unit 2 was 12.43 acres, essentially the City' s softball complex area, was valued as highest and best use at $ 1, 750, 000 or $ 140, 788 per acre. Unit 3, which comprised 7. 32 acres representing the frontage and parking area for the total complex, was valued as highest and best use at $ 1, 250, 000 or $ 170, 765 per acre. The City debt financed a portion of the purchase through the Florida League of Cities Bond Program. If the City plans to sell the property and it will be used for non- governmental purposes, there are certain safe- harbor provisions requiring the City to hold the property for a certain length of time and/ or prepay bonds. If it is the desire of Council to sell a portion of this property to the NWF Fair Association, then pursuant to the City Code of Ordinances 2. 00. 05. City Excess Real Property, the City Council shall direct the City Manager to submit a report and recommendation to Council for review and determination whether the parcel is unneeded for the immediate and future development/ use requirements of the City and 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 the City has any existing or projected development/ use for the property. Once the property is declared excess, disposal procedures, according to the Code of Ordinances would be exercised. ( Attachment E - Excess Real Property). Page 2 3) Make an offer to Durchase all facilities and eauiDment currently owned bv the NWF Fair Association. The buildings, constructed over the course of thirty years, were not in the corporate limits of the City before the City purchased this property and these facilities do not meet some current Fire Code standards. The 101 Life Safety Code 2003 Edition is part of the Florida Fire Prevention Code and Chapter 132 requires that assembly occupancy with occupant loads of 300 or more require a monitored fire alarm system. The main Fairgrounds Building is classified as assembly occupancy and is required to install a monitored fire alarm system. ( Attachment F). The City' s Fire Marshall has notified the NWF Fair Association that they are required to install a monitored fire alarm system. The Life Safety Code also provides the governing jurisdiction shall have the authority to require standby fire personnel or an approved fire watch when potentially hazardous conditions or a reduction In life safety feature exists due to the type, performance, display, exhibit, occupancy, contest or activity. The City' s Fire Marshall has notified the NWF Fair Association that they are required to have a fire watch consisting of two qualified fire fighters when any event, activity or function has a potential to have an occupant load of 300 or more. If It is the desire of Council to purchase these facilities and above ground improvements, then Council should request the NWF Fair Association to establish a selling price. Once a selling price is established, the Council should direct the City Manager to secure an independent appraisal of the property by appraisers qualified to conductappraisals for the State of Florida by general law and then direct the City Manager to negotiate a purchase price and bring the offer back to Council for consideration. 4) Extend the current lease agreement for the time reauired to allow the NWF Fair Association to honor all existina contractual obligations. The license agreement has been terminated and can not be extended. In addition, pursuant to Section 2 of the license agreement between the City and the NWF Fair Association, the NWF Fair Association was required to provide an annual Operations Plan which required Council approval. The license agreement also requires a yearly submittal of the succeeding year' s operations plan. Obligations should not extend beyond the current calendar year pursuant to the license agreement. If it is the desire of Council to permit the NWF Fair Association to honor its existing contracts then the City should direct the NWF Fair Association to provide a specific list of these obligations and time frames for Council consideration and direct staff to renegotiate a license agreement with limited terms. 5) Request a Deriod of 180 days from the date of final decision by City Council to remove all facilities and above ground improvements. The NWF Fair Association is requesting 180 days to complete the removal of their buildings and return the property to pre- license agreement condition. If the NWF Fair Association does not remove all property within the time prescribed and approved in the abandonment plan then all facilities become property of the City as indicated in Section 11 C. of the license agreement. Page 3  If Council desires to grant an extended time period for facility removal, then staff recommends that Council direct the NWF Fair Association to