SUBJECT/RECOMMENDATION:
Title
Declare surplus, for the purpose of sale for development of affordable housing, real property located at 601, 619, 637, 655 and 673 Blanche B. Littlejohn Trail, in accordance with Paragraph 5 of the Contract for Purchase of Real Property (Contract); approve the Contract between the City and Habitat for Humanity of Pinellas County, Inc. and authorize the appropriate officials to execute same, together with all other instruments required to affect closing. (APH)
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SUMMARY:
Clearwater Gas System acquired the combined parcels (Property) to be used as staging during construction of its recently completed headquarters complex. The City acquired the Property in January 2018 with a purchase price of $230,000. The Property is no longer needed for Clearwater Gas System’s purposes or other city functions. Staff is recommending a reduced sales price of $100,000 ($20,000 per buildable lot) to Habitat for Humanity of Pinellas County, Inc. (Habitat) to provide for development of affordable housing under challenging market conditions. The City may transfer the Property with two separate closings to provide time to process a Zoning and Land Use change affecting two of the lots.
The Property is located within the North Greenwood Neighborhood Revitalization Strategy Area which is identified in the city’s Consolidated Plan. The Property is also located within the North Greenwood Community Redevelopment Area, currently being created under the direction of City Council and the Pinellas County Board of County Commissioners. The Property is located along the Pinellas Trail within a neighborhood mostly comprised of single-family homes. Habitat is planning to construct five single family homes. Three will be sold to households with total household income up to 80% of Area Median Income (AMI) and two will be sold to households with income up to 120% of AMI. AMI levels are determined by the United States Department of Housing and Urban Development. The Contract requires Habitat to commence construction of all five homes within one year of closing and to sell each home to a qualified household within two years of closing. Staff may extend these deadlines should unforeseen circumstances cause delay.
James Millspaugh and Associates, Inc. provided an appraisal valuing Property at $153,500 prior to the City acquiring the Property for Clearwater Gas System’s purposes. Staff’s opinion of the Property’s current market value is $225,000. According to Section 2.01(d)(5)(i) of the Clearwater City Charter, the City Council may approve the donation or sale for less than fair market value of city-owned Property of not more than five acres in size for workforce or affordable housing following a public hearing. The Property is approximately 0.76 acres (32,997 square feet).
APPROPRIATION CODE AND AMOUNT:
Proceeds from this sale of land will be credited to Gas Fund surplus land sales revenue code 423-364220.
USE OF RESERVE FUNDS:
N/A