Fort Walton Beach Council agenda — 03-09-2010 Regular — reading text

40 Helen Spencer, City Clerk Toni L. Craig, City Attorney 15-  CITY OF FORT WALTON BEACH, FLORIDA MEMORANDUM Office of the City Manager DATE: March 3, 2010 TO: Honorable Mayor and Council Member FROM: Robert T. Mearns, City Manager SUBJECT: Request For Budget Transfer t tilize CRA Funds for Improvements to Property at 25 Miracle Strip Parkway 1 Background 1. 1 The City obtained the above captioned property through a code enforcement lien foreclosure action in late 2009. Ownership of the property was transferred to the City through a Certificate of Title at a cost of $1, 059. The conveyance was an " as is" transaction meaning that the property came in its existing condition: there are unpaid taxes; and the matter of potential groundwater contamination caused by below -ground tanks exists on the property. 1. 2 The City obtained the property so that an eyesore could be removed, and the property could be improved to the point where it could be marketed by either sale or lease to a commercial buyer who would construct a new facility on the property, place it back on the tax rolls, and create jobs in the process. 1. 3 City staff made several inquiries into funding opportunities to address the potential contamination issues on the site. Staff was advised on March 1 that it was able to secure assistance from the U.S. Environmental Protection Agency EPA) in the form of a Phase II Environmental Audit and removal of the tanks. This assistance is valued at approximately $ 200, 000. 2. Discussion 2. 1 In order to prepare the site for the work being performed through the EPA,. the City has to demolish the buildings currently standing on the property. This will require an expenditure of approximately $ 10, 000. 2. 2 The City is obliged to pay the back taxes on the property which are currently approximately $ 25, 000. The taxes will be three years delinquent this year and any holder of a tax certificate on this property can now request a tax deed sale. To avoid such a sale all of the taxes must be paid in full by March 31, 2010. 2. 3 Inasmuch as the property lies within the CRA area, and the restoration of the property conforms with the CRA Objective of " Direct public facility and capital improvements funding towards projects that can be leveraged to maximize development in the CRA area ", this property meets the test for CRA consideration for project status and funding. 2. 4 Staff requested that the CRA fund both the demolition cost and payment of the 3rd, back taxes. At the CRA' s March 2010 Meeting, the CRA voted unanimously 16-  to support the project. They voted to provide CRA funding in the amount of 35, 000 for the demolition and back taxes. 2. 5 Funding will come from CRA Fund Balance which has a remaining balance of 2. 9 MM. 3. Recommendation 3. 1 Staff requests approval of Resolution 2010 -8 which provides the funding for the blighted property at 25 Miracle Strip Parkway. 17-  CITY OF FORT WALTON BEACH Memorandum DATE: March 4, 2010 TO: Bob Mearns, City Manager FROM: Brandy Wunker, Finance Director Charlotte Dunworth, Budget & Grants Manager SUBJECT: FY 2009 -10 Budget Amendment (Resolution 2010 -8) 1. BACKGROUND 1. 1 Resolution 2009 -40, authorizing the budget for fiscal year 2009 -10,' was adopted by City Council on September 16, 2009. The resolution provides for amendments to the budget by resolution with identification of expenditures and a corresponding revenue source. 2. DISCUSSION 2. 1 The adopted budget is periodically amended to reflect grant awards and other unanticipated activities. The proposed amendment is outlined below. 2. 1. 1 CRA FUND — The FY 2009 -10 budget is $ 1, 784, 249. A $ 35, 000 budget amendment is proposed including up to $ 10,000 for demolition of the existing structures on a dilapidated property located at 25 Miracle Strip Parkway SW and up to $ 25, 000 to purchase the tax certificate on the property, resulting in a CRA Fund budget of $1, 819, 729. Pu ose Amount Revenue Source Demolition 10, 000 CRA Fund Balance Tax Certificate 25, 000 CRA Fund Balance 35, 000 2. 1. 2 This expenditure was authorized by the CRA Board at the March 3, 2010 meeting. 3. FINANCIAL INFORMATION 3. 1 This budget amendment will increase the CRA Fund budget by $ 35, 000 from 1, 784,249 to $ 138191729. 4. RECOMMENDATION 4. 1 Staff respectfully requests that City Council adopt Resolution 2010 -8 amending the FY 2009 -10 budget. I Submitted by: Charlotte Dunworth, Budget & Grants Manager 18- Reviewed & Concur: Brandy Wunker, Finance Director Reviewed for Agenda: / Yld o ert T. Mearns, City Manager UABudget\ Budget 09- 10\ Budget Amendments\# 3 staff report 3 -9. doc 19-  FY 2009 -10 Budget Amendment #3 Resolution 2010 -8 CRA FUND Revenue Account & Amount Expense Account & Amount Comments 25 Miracle Strip Pkwy SW 109 -1600- 389 -91 - 00 35,000 109 -5498 -552 -6152 25, 000 Tax Certificate 109- 5498 -552 -6159 10,000 Demolition 35, 000 35,000 FY 2009 -10 Adopted Budget 1, 784,249 Budget Amendment # 3 35,000 CRA Fund - Amended Budget 1, 819,249 U:1BudgetSudget 09- 10\ Budget AmendmentsW3 amend 3 -9 1 of 1 34/2010 10:44 AM 20-  BOARD OF COMMISSIONERS OF THE FORT WALTON BEACH COMMUNITY REDEVELOPMENT AGENCY MARCH 3, 2010 INTRODUCTION A regular meeting of the Board of Commissioners of the Fort Walton Beach Community Redevelopment Agency was held on Wednesday, March 3, 2010, at 5: 30 p. m. in the Council Chambers of City Hall with the following members present: Dr. Joyce Gossom, Chairman; Dean Covey; Daike Klement; Jason Legg; Doug Reed ( arrived at 5: 35 pm), Vice -Chairman; and Tom Tona Absent: Chuck Kennedy (excused) Also Present: Samantha Abell, Planning Manager; Michael Beedie, City Engineer; Tim Bolduc, Building Official; Stella Jones, Planner II; Toni Craig, City Attorney CALL TO ORDER/ PLEDGE OF ALLEGIANCE The Chairman called the meeting to order and led in the Pledge of Allegiance. APPROVAL OF AGENDA Mr. Covey moved to approve the agenda, as amended, as the business of the day. Ms. Klement seconded motion and it carried unanimously with Covey, Gossom, Klement, Legg, and Tona in favor (Kennedy and Reed absent). APPROVAL OF MINUTES Mr. Legg moved to approve the minutes of the special meeting of February 17, 2010. Ms. Klement seconded motion and it carried unanimously with Covey, Gossom, Klement, Legg, and Tona in favor (Kennedy and Reed absent). Mr. Reed arrived at 5: 35 pm. NEW BUSINESS —BUDGET AMENDMENT, 25 MIRACLE STRIP PARKWAY SW Mr.Reed moved to authorize a budget amendment to utilize up to $ 10, 000 from CRA Fund Balance for the demolition of the existing structures on a dilapidated property located at 25 Miracle Strip Parkway SW, and to authorize a budget amendment to utilize up to $25,000 from CRA Fund Balance to purchase the tax certificate on the property at 25 Miracle Strip Parkway SW so that the City will have clear ownership in order to market the property for private redevelopment, in a total amount up to $ 35,000.00. Mr. Covey seconded motion and it carried unanimously with Covey, Gossom, Klement, Legg, Reed, and Tona in favor (Kennedy absent). NEW BUSINESS —BROOKS LANDING SHOREWALK PRESENTATION BUSINESS RETENTION PANEL UPDATE C SOUND SIDE MULTIFAMILY HOUSING DEVELOPMENT UPDATE . 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