Fort Walton Beach Council agenda — 06-09-09 regular — reading text

Fort Walton Beach, Florida, USA and Kristinehamn, Varmland Region, Sweden, as SISTER CITIES" and declare their intent to abide by the guidelines stated herein. Mike Anderson, Mayor Ake Thornesjo, Mayor Fort Walton Beach, Florida Kristinehamn, Sweden  CITY COUNCIL MEETING June 9, 2009 City Manager Reports Leased /Surplus City Property Update Synopsis: Follow -up report on staff's activities since the special meeting on May 5, 2009 Agenda Item Number: 9. 7  City of Fort Walton Beach Memorandum Date: June 3, 2009 To: Honorable Mayor and City Council Nj@wAvrs From: Robert T. Mearns, City Manage Subj ect: Leased /Surplus City Property pdate Background As part of the lease review project, the Economic Development Council ( EDC) was directed to research fair market value for expiring leases. They were given two properties to derive their fair market value: the property located at 139 Brooks Street, currently leased to the Emerald Coast Science Center; and property located at 17 Industrial Street, currently leased to PASARDA. Discussion On June 3 Larry Sassano, President of the EDC, delivered the attached report which addressed the fair market values of the properties. The methodology considered the Okaloosa County Property Appraisers valuation of the property and comparable sales in the area. As you can see from their report, the City is providing property to lessees who have not demonstrated that they provide a municipal service at well below any reasonable market rate. As previously discussed, during the budget workshop process in.August the City Council will be asked to determine whether the leasing organization provides a municipal service that that otherwise the city would have to provide or fund. Conclusion This report is being submitted as information only at this time, and will be updated regularly. 79_  Valuation Report for the City of Fort Walton Beach' Properties June 2009 x Economic Devc1opment Council of Maleaw Commf Ff" ide Completed by: The Economic Development Council of Okaloosa County  Economic Development Council 4 Okalw<a tejlfn } v, Flmija Valuation Report for the City of Fort Walton Beach Pro ernes The Economic Development Council ( EDC) in 4kaloosa County has agreed to provide the City of Fort Walton Beach real estate information on a selection of commercial /industrial properties owned by the city. City Manager Bob Mearns has identified specific properties in the city that are leased or used by various individuals and organizations. The EDC will verify information about the sites and buildings on these properties. The EDC will also identify the market value of these properties and indicate a lease range for these properties based on comparable properties in the immediate area of these identified sites. The EDC will work with the Property Appraiser office of Okaloosa County and several commercial realtors located in the Greater Fort Walton Beach Area whom are also EDC members. The first two properties identified by the City Manager are located at: A) 17 Industrial Street NW, Fort Walton Beach, FL B) 139 Brooks Street, Fort Walton Beach, FL P0. Box 4097, Fort W71ton Beach, EL 32549 93'0) 651 -7374 ( 800) .99. -7374 tollji ( 850) 651 -7378 Act a a ta {: flori r -c ic.n :;y  Valuation reportslor the City of'Fort Walton Beach Valuation Report for: Property address: 17 Industrial Street NW, Fort Walton Beach, FL 107 Miracle Strip Parkway] Legal Description: Lot 205 COM SE COR NEI /4 N1260 FT W25 FT W614 FT TO POB W228 FT N400 FT E228 FT 5400 FT TO POB AS OR Parcel number: 14 -25 -24 -0000- 0009 -001A Zoning: M1— Wholesale and Industrial Size: 2. 09 acres —91, 040 square feet Improvements: Approximately 4,440 square foot building sites on the property Note: PASARDA HALL; Current user is Playground Area Square Dance Council Property Tax Assessment: $ 416,341 Market Value ( Conservative Estimate): $ 489, 813 Assessment Value of Land: $ 188, 100 Lease rate range: 5. 00 to $ 6. 00 per square foot per year. Based on comparables in the area. A lease rate of $5. 00 per square foot would generate $ 22,200 per year, while a lease rate of 6. 00 per square foot would generate $ 26,640 per year_The large parking lot is a definite plus and the fact that the building is completely air conditioned. Completed by: The Economic Development Council of Okaloosa County June 2009 P.O. Box 4097, Fort Walton Beach, FL 32549 800) 995 -7374 www.florida-ede.org  0 I a NN I II 0- 1 I QMO C9 EtUl 0064PC } I CC W Ln i W0 I d I 0444 0 Z 0 Pg0 1 N tt7 WN.N i LOLO 0ND 1a rrqrrq O I t PCr7r 1- 3 rl) vlr>+ WU DD\---\--- JJ P4,-P4,- II riri 14 cj 4a i a III cgE- 1 a I> CdCd Hadau -Fri c3, - iHo I t.n CJ2CJ2 NN rr II 11 I N Px ° Z P4 H N N C3 HVACA eP rte' w HN 1 M Mm c- i i`4 J E C7 OD mom I U 1 w i tt WW r-- 1 Ca CD I H 000 co w ww C) N 00 c—E r--J c- 1 C? I— N N r- F 10 eN dt O to a G: FQ I mN H ',. I ko J CC X-) O s4F c tit I d - 1 I C aa CSCS E CSCS JO co M TA 0 H apap toto I a C) E+ m Ot Q 0 CJ H a m a ON K