Fort Walton Beach Council minutes — 05-24-1979 Special — reading text

285 MINUTES OF SPECIAL MEETING OF CITY COUNCIL OF FORT WALTON BEACH, FLORIDA May 24, 1979 INTRODUCTION A special meetingof the City Council of Fort Walton Beach,Florida was held on Thursday, May 24, 1979 in theBoard Room at the Fort Walton Beach Chamber of Commerce at 5: 30 p. m. with the following members present: COUNCILMEN: James K~ Baughman John H. Bishop Hurdis A. Brock Charlie H. Hill Daniel Houghton, Jr. Robert L. Hunt C. H. Rigdon, Jr. Mayor H. Gene Smith ALSO PRESENT: City Manager Mayor called the meeting to order and said the pur- pose of the meeting was to discuss a new prospeet for the Industrial Park. He then asked Mr. Al McLeod to explain the details to those present. Mr. AlMcLeod, Chairman of Okaloosa Industrial Dev- elopment Council, said to give some background, we have for the last several months been working with an industrial prospect who wants to move to our area. They have checked the area and are impressed with the abundance of skilled labor here. The building they are interested in is west of the PRD building south of Anchors Street. The building would need some remodeling. They have looked into that and have got some estimates on that. The biggest stumbling block right now has been the availability of parking and property that would be available for future expansion. Just to the west and contiguous to this building is approximately 4. 5 acres of property which is owned by Mr. Basil Bethea, et aI, and we are I asking that the City exchange a like amount of pro- perty to Mr. Bethea and his group. Once that IS accomplished, we would like to recommend that in view of the fact that the other industries that have come to town that we have sold them property for 3, 500 an acre, that the Council turn around and sell the property to this particular company for that amount. I would also like to recommend that since this company would be leasing the building from Catalina Yachts located in California, that if they happen to move or do not expand, that the 286 5/ 24/ 79 lease have an option in it that this company would turn around and sell the property back to the City would revert back to the City) for the original purchase price. To give you a little background on this company, I' m not at liberty to discuss the name or type of company, but at the end of the first year '. they would be employing upwards of SO people, end of the second year approximately 125, and potentially,'.... in three to four years upwards of 350 to 400 people. . . They are a large company, a subsidiary of a much . larger company, and located out of our area. They do not have any plants at the present time in our J" general area. Mr. Baughman asked, in making this agreement, that we would revert the property, this gives them an immediate escape clause if they want, all they have to do is turn it back to us and walk away. Mr. McLeod said, yes, but what I didnlt want to see them, if they walk away from the building, because they will have an out there, if they walked away, we want that property back. I would think the City would want that property back, to use that property as a lever to attract some other industry because whoever goes in that building is going to need that property for parking and future expansion. Mr. Baughman said, what you are saying, they would have that anyway, they would be able to leave at any time they want to regardless. Mr. Rigdon said they would still do it on that 36- 42 month deal, if I recall it right. Mr. McLeod said, yes, they would like to have in their lease with the people who own the property now that at the end of 36 months that they could at any time give a six months notice to cancel the lease on the building. So if the City sold this company that property for 36 months and moved out of town they would still be owning some of the Cityls pro- perty the way that I would look at it. I would like t? see the City turn around and repurchase it at that 1 tlme. Dr. Houghton asked if that' s the property you are talking about the City being able to repurchase. _- Did you say something: about the City purchasing the building. Mr. McLeod said, no, just the property. Mayor asked if everybody on Council understands the recommendation and do you have any questions.  5/ 24/ 79 287 Mr. Brock said, all you want to do is swap 4. 2 acres of land. Mr. McLeod stated it was 4. 5, for a like amount. Mr. Hunt it would be somewhere else in asked if I Also, that the Park. agreed that it was. It was the price would be $ 3, 500 an acre and the reverter clause would revert right back to the City. Mr. Hunt said the recommendation was to authorize the City Manager to receive approximately 4. 5 acres of property located on Anchors Street in the City Industrial Park from Blake Construction Company of Polk County and Basil L. Bethea, Jr. and wife, Sally C. Bethea and to convey an equivalent amount of property, approximately 4. 5 acres, on Anchors Street west of Sears building to these parties. City Manager was further authorized to sell approximately 4. 5 acres of property received to a manufacturer for the sum of $ 3, 500 per acre. Sale of property to manufacturer to include restrictions for highest and best use, permit no retail sales, and the City to have the right to repurchase property at a price of $ 3, 500 per acre, plus cost of on- site improve- ments. Mr. Baughman moved that the recommendation be approved. Motion was seconded by Mr. Hill and carried unani- mously. Mayor asked Mr. McLeod if there were any other poten- tial problems. Mr. McLeod said there had been some discussion about an easement but he didnlt think that would be a pro- blem. City Manager said Council had previously agreed to relocate a line if it was necessary. Mr. McLeod thanked the Mayor and members of Council for their assistance in putting this together. We are not at liberty to announce this, we still I have some work to do. This was a large stumbling block and we appreciate your taking time to come down here and help us. We hope we will be able to announce a nice new industry coming into our area very soon. City Manager advised there would be another meeting to finalize.