Okaloosa County BOCC — July 7, 2015 — Shoal River Reservoir Land Acquisition - Option Agreement — agenda request

BOARD OF COUNTY COMMISSIONERS AGENDA REQUEST DATE: July 7, 2015 TO: Honorable Chairman and Members of the Board FROM: Jeff Littrell SUBJECT: Shoal River Reservoir Land Acquisition - Option Agreement DEPARTMENT: Water and Sewer BCC DISTRICT: 1 STATEMENT OF ISSUE: Staff requests that the Board of County Commissioners (BCC) approve and authorize the Chairman to execute the "Option Agreement to Purchase Property" with Haiseal Timber, Inc., providing the County the option to purchase land for the future Shoal River Off-Line Reservoir and other associated infrastructure. The purchase price is $632,500 (plus closing costs) for approximately 302 acres of land. Both the Option Agreement and the Purchase & Sale Agreement are attached for your review and consideration. Please note the Purchase & Sale Agreement should not be executed at this time. BACKGROUND: See attached files: "OCWS Future Water Supply Update" - explains the need, background, and history. Note this is from the 12/3/2013 BCC presentation. "OCWS Future Water Supply Plan (Map)" - depicts the current plan/strategy, after years of planning. This map shows potential locations for the following infrastructure: surface water treatment plant, off-line reservoir, river intake structure, raw water pumping station, transmission lines, roads, and the Gulf Power transmission line relocation. "2010 Implementation Plan (Updated)" - the BCC approved this plan in February 2010. At the time, it was an unfunded road map. Since then, we have entered into as many partnerships as possible - Northwest Florida Water Management District, Eglin Air Force Base, and the U.S. Army Corps of Engineers - to accomplish many items on this Implementation Plan. Items highlighted in green are completed, and items highlighted in yellow are underway. In addition to the above-mentioned background items, the following documents are attached for your consideration, with an explanation below: - past Agenda Request from 5/20/2014 - Option Agreement to Purchase Property - Purchase and Sale Agreement - County Contract Review Coordination Sheet for both agreements At the 5/20/2014 meeting, the BCC authorized staff to move forward with the Shoal River Reservoir Land Acquisition with the grant funding that has been obtained. The BCC also authorized staff to obtain appraisals, negotiate with property owners, and bring back any needed Option contracts for approval and execution. Since the 5/20/2014 BCC meeting, two independent land appraisals have been completed, per State Statutes. The Seller has agreed to a purchase price equal to the average of the two appraisals. Because another land purchase is also required for the future reservoir, staff is recommending an Option Agreement at this time for Haiseal Timber's 302 acres. Staff will come back to the Board to request approval and execution of Purchase & Sale Agreements on both land purchases. The current Option Agreement, for your consideration today, provides the full right (or "option") to the County to execute the Purchase & Sale Agreement before 12/31/2015. As such, Haiseal Timber has already executed the Purchase & Sale Agreement. There is no cost for the County to enter into the Option Agreement. County Contract Review has been completed on both the Option Agreement and the Purchase & Sale Agreement, and the Coordination Sheet is attached for your review. In addition, Nabors Giblin Nickerson is serving as the real estate attorney to manage the closing and ensure all local, state, and federal requirements are met. OPTIONS: Approve or deny. RECOMMENDATIONS: Staff recommends BCC approval to authorize the Chairman to execute the "Option Agreement to Purchase Property" with Haiseal Timber, Inc. for the future Shoal River Off-Line Reservoir and other associated infrastructure. (Please note the Purchase & Sale Agreement should