Okaloosa County BOCC — September 16, 2014 — Action Item Printout — reading text

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 month until closing. RECOMMENDED BY: APPROVED BY: Ernie Padgett, County Administrator