SUBJECT/RECOMMENDATION:
Title
Approve the Purchase Contract for the City purchase of real property located at 3158 Gulf to Bay Boulevard, Clearwater, with a purchase price of $250,000 and total expenditures not to exceed $252,600 including closing costs; authorize appropriate officials to execute same, together with all other instruments required to affect closing; and approve the transfer of $252,600 from general fund reserves at midyear to cover the cost of purchase. (consent)
Body
SUMMARY:
The subject property is a part of a tract of land located at 3158 Gulf to Bay Boulevard and is owned by Mary Custis Lee, Chapter 1451 of the United Daughters of the Confederacy, Inc. (Seller). Seller’s property includes a small building and a total land area of approximately 65,340 square feet on the northwest corner of Gulf to Bay and Bay Shore Boulevard. The small building is located on the eastern portion of the property. The Seller has divided the property into two parcels and is offering the western portion of the property, approximately 20,433 sq. ft. to the City for $250,000. With the exception of a chain link fence with Service Organization signs attached and one small freestanding sign, the western property is vacant.
Under the purchase contract, the City will have the right of first refusal (ROFR) on Seller’s remaining property. The ROFR provides for the City to have the future option to purchase Seller’s remaining property at terms and conditions offered by a third party buyer.
Due to its strategic location of this property, staff is recommending the acquisition of this property to be preserved and used as a gateway/entrance into Clearwater. This property is just west of the property purchased last year at 3198 Gulf to Bay which is a park and terminus of the Bayshore Recreation Trail. Together these properties will offer a beautiful and inviting landscape into Clearwater as well as give the City the opportunity to provide landscaping and signage on City owned land.
Jim Millspaugh and Associates, Inc. performed an independent appraisal on the property. The appraisal provided a value conclusion of $275,000 with a valuation date of October 6, 2015.
Acquisition Costs for the purchase of the subject property:
Purchase price $250,000
Closing costs $500
Survey $2,100
TOTAL $252,600
APPROPRIATION CODE AND AMOUNT:
USE OF RESERVE FUNDS:
Funding for this contract will be provided by a first quarter budget amendment allocating General Fund reserves in the amount of $252,600 to capital improvement project 315-93133, Park Land Acquisition. A net total of $675,466 General Fund reserves has been used to date to fund expenditures in the 2015/16 operating budget. The remaining balance in General Fund reserves is approximately $27.3 million or 22% of the current General Fund operating budget.