Fort Walton Beach Council agenda — 05-10-05 — reading text

complex land swap. However, with the assistance of US Congressman Jeff Miller, new federal legislation was passed in November 2003, that allowed the direct purchase of the property from the USDA. The acquisition of this property has been part of the City' s future Capital Improvement Program for the last several years and the City has continually sought funding avenues for this property. As such the City made several requests of the Okaloosa County Legislative Delegation for the last several years to secure their support to sponsor State legislation to fund this community budget request; at that time the property had an estimated value at $ 850, 000 for the Softball Complex and another $ 1. 9 million for the fairgrounds 2. 75 million total). DISCUSSION: With a federal mandate to the Department of Agriculture to sell this property, representatives for the City, Northwest Florida Fair Association and the Forest Service have discussed the City' s continued interest in acquiring the site. The property has been a valuable site, for park and recreational activities for area residents and tourists alike. Nearly half of all Okaloosa County 180, 000 residents, many with military connections, use these recreational facilities on a weekly basis. In addition, the City sought and received an acknowledgement from Eglin AFB Encroachment Committee that the fairgrounds and softball complex serve a buffering value to the Eglin Air Force Base. Mr. Robert Arnold. Chairman of the Eglin AFB Encroachment Committee wrote: While the definition of a " buffer" varies, we believe the fairgrounds, ball fields and the adjacent fire station represent some of the most beneficial uses of areas along our border, both to the community and to our military mission. Although the public makes wide use of these properties, the users appear undisturbed by our noise- generating activities and we have had no mission conflicts. Should another use be made of these areas, we would need to reassess whether or not we could continue to maintain the same sort of mutually-beneficial balance we currently enjoy. " Page 1 of 3 13 b- Finally, this site proved invaluable for emergency management after Hurricane Ivan made landfall in northwest Florida in mid- September 2004. It served as a staging area for the National Guard, the Federal Emergency Management Agency, and Utility crews from across the nation and Canada, as well as for City and County government debris removal efforts. The City has long- since desired to purchase this property, but bureaucratic red tape and unreasonable appraisals stood in our way. However the recent passage of the Florida Land Management Act allowed for the direct purchase of land from the Forestry Service, clearing the way for the City to permanently acquire the property to ensure it remains for continued public use and vital for emergency management and the protection of the vital missions at Eglin AFB. The property in question was appraised once in the recent past ( mid 1990s) at the highest and best use, not agricultural land, vacant land or land for public use. The U. S. Department of Agriculture, Forest Service agreed to have the property reappraised. In fact, in July 2004, Kyle Jones, District Ranger from the U. S. Department of Agriculture, Forest Service, indicated that his office agreed to partition the property into three parcels for appraisal purposes solely for apportioning value: Unit 1 is 22. 82 acres and included most of the fairgrounds and their improvements. According to Mr. Jones, Unit 1 would be valued as vacant property. The second unit is 12.43 acres and is essentially the City' s softball complex area. The third area is mostly the frontage and parking area for the complex and comprises 7. 32 acres. The second and third units will be valued at highest and best use. The appraisal has just been completed and the overall value of the 42:t acres is $ 4. 0 million; the value has been apportioned as follows: Unit 1 - Fairgrounds - $ 1, 00 million Valued as vacant and restored 22. 82 acres and included most of the fairgrounds and their improvements. Unit 2 - Softball Complex - $ 1. 75 million Valued as highest and best use 12. 43 acres and is essentially the City' s softball complex area. This portion has considerable frontage along Lewis Turner Blvd. Unit 3 - Primarily the Parking and Farmer' s Market Area - $ 1. 25 million Valued as highest and best use 7. 32 acres and is the parking area for the complex and the area where the Farmer' s Market is conducted. This portion has some frontage along Lewis Turner Blvd. Although this property has appreciated 45% in just eight years, I believe the USDA - Forest Service efforts to apportion the value as indicated above has made this property more affordable than initially expected. While the USDA - Forest Service has no flexibility in the appraisal amount, according to Mr. Jones, they have expressed a willingness to work with the City on this purchase. They have indicated that if the City is willing to commit to the purchase of the total 42 acres, that they would work with us to do so over a three- year period; hence the idea to apportion the property into three units. As mentioned previously, the City has contemplated the purchase of this property for sometime and it is an item on the City' s five- year Capital Improvement Schedule. Additionally we have some reserved funds earmarked for this purchase. There is approximately $ 325,000 in fund balance reserve funds designated for the Softball Complex Purchase; additionally there is another $ 1, 612, 500 available for Economic Development funds that could also be utilized for this purchase, Should Council decide to move for with this purchase, staff would need to develop a funding plan, work with the USDA - Forest Service and the City attorney to develop a three- year purchase contract and then a lease- agreement with the Northwest Florida Fair Association would need to be developed. Page 2 of 3 CONCLUSION: Staff respectfully request that City Council direct the City Manager to develop a multi- year purchase agreement with the United States Agriculture Department - Division of Forest Service for the purchase of 42. 3 acres of property ( currently leased by the City and the Northwest Florida Fair Association), which currently houses the City' s Softball Complex and picnic areas and the Northwest Florida Fair Association; and further to direct the City Manager to draft a lease agreement with the Northwest Florida Fair Association. Once the agreements have been drafted staff will return to Council for action on those agreements and a proposed funding methodology. Respectfully Submitted, M;~ rger Docid: c:\ documents and settings~shanahan. fwb- Ian\ my documents\ parks & rec\softbal complex & fairgrounds\ sofball complex & fairgrounds_ staff memo, doc Page 3 of 3 J if L Vf"L.ANU PARct:. 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