SUBJECT/RECOMMENDATION:
Title
Approve the Contract for Sale of Real Property by the City of Clearwater (Contract) between the City and Florida Spine Properties, LLC; and authorize the appropriate officials to execute same, together with all other instruments required to affect closing. (consent)
Body
SUMMARY:
This property is located at 2251 Drew Street and is the former site of the City of Clearwater’s East Library (Pinellas County Property I.D. # 18-29-16-00000-220-0300). Construction of a new joint use library on the St. Petersburg College campus is complete and East Library operations have been relocated to the new facility.
On January 18, 2018, City Council declared the property surplus for the purpose of sale, through Invitation to Bid #11-18, whereby the successful bid was required to meet the terms set by Council. Per City Charter 2.01, real property declared surplus shall be sold to the party submitting the highest competitive bid above the appraised value whose bid meets the terms set by the Council and whose proposed use of the property is in accordance with the Council’s stated purpose for declaring the property surplus. Accordingly, all qualifying bids were required to meet the following terms:
• Bid price shall exceed $1,000,000.
• The property must generate ad valorem tax revenue free from exemptions. Alternatively, an otherwise tax-exempt purchaser shall enter into a Payment in Lieu of Taxes Agreement for all city portions of real property taxes, tangible property taxes, utility taxes and any other applicable taxes.
• The property owner shall increase the site’s property value through capital investment which must commence within one year of purchase.
An appraisal was performed on the property by James Millspaugh and Associates, Inc. The appraised value was $1,000,000 with a valuation date of April 5, 2017.
The City received two bids; both met the minimum qualifications listed above. Each bidder is identified below with the respective proposed purchase price.
• Florida Spine Properties, LLC submitted a qualifying bid with a proposed purchase price of $1,415,000.
• Skycrest Christian School submitted a qualifying bid with a proposed purchase price of $1,250,000.
Consistent with City Charter 2.01 referenced above, staff recommends approval of the Contract between the city and Florida Spine Properties, LLC, the entity having submitted the highest competitive bid above the appraised value whose bid meets the terms set by the Council. The proposed contract includes a purchase price of $1,415,000 and incorporates all terms set by Council listed above. Proceeds from sale will be deposited into the General Fund revenue code 010-00000-364220 (Surplus Land Sales).
USE OF RESERVE FUNDS: NA