SUBJECT/RECOMMENDATION:
Title
Approve the Contract for Purchase of Real Property by the City of Clearwater (Purchase Contract) of certain real property owned by Clearwater Christian College Private School, Inc. and Easterland Properties, LLC, with a purchase price of $1,360,000 and total expenditures not to exceed $1,400,000 and authorize the appropriate officials to execute same, together with all other instruments required to affect closing. (consent)
Body
SUMMARY:
The subject property is generally located north of Gulf to Bay Boulevard, east of Bayshore Boulevard and west of the Clearwater Christian College campus. The property is comprised of approximately 80 acres of wetlands and six acres of uplands (the Property). Clearwater Christian College Private School, Inc. (College) owns the majority of the wetlands and Easterland Properties, LLC owns an eight-acre parcel along Bayshore that is comprised of wetlands and uplands. The College is the principal owner of Easterland Properties, LLC (Easterland).
Under the proposed Purchase Contract, the City will purchase the Property through a combination of warranty and quitclaim deeds. The quitclaim deed will be from the College and is intended to eliminate the potential for any future title conflicts.
The Property is encumbered by a Development Agreement between the City and the College, and the proposed Purchase Contract is subject to the termination of the Development Agreement. The Property is also encumbered by that certain Settlement Agreement by and between the City, the College and three private party petitioners dated April 26, 2011 (the Settlement Agreement). The petitioners were nearby residents who challenged a certain land use plan amendment, applicable to the Property, which was approved prior to the Development Agreement. The Settlement Agreement preserves certain environmental elements and imposes certain development restrictions on the Property. At the College’s request, the proposed Purchase Contract contemplates the conditional approval of an amendment or release of the Settlement Agreement as long as the City’s intended use for the property survives. If the College brings forth an amendment or release of the Settlement Agreement that does not impose restrictions with respect to the City’s intended use of the Property, staff will present same to City Council at a later date.
This proposed acquisition presents a unique opportunity for the City to provide water quality benefits to Tampa Bay, an impaired water body with a federally-recognized Total Maximum Daily Load (TMDL) for Nitrogen. Tampa Bay is comprised of four bay segments, Old Tampa Bay, Middle Tampa Bay, Lower Tampa Bay and Hillsborough Bay. The City currently holds FDEP Wastewater and Stormwater Permits which allow for discharges into the waters of Old Tampa Bay, surrounding this property. The City is obligated by those permits to meet Nitrogen loading allocations along with water quality improvements mandates. The City will use these lands for the purpose of implementing water quality improvement projects with regional benefit for years to come.
As to the purchase price, City staff obtained five value estimates from three independent appraisals. Two appraisals were performed on behalf of the City and the other was performed for the College. Appraisals by James Millspaugh and Associates, Inc and Lee Pallardy, Inc. with valuation dates of October 23, 2015 and November 15, 2015 respectively were performed on behalf of the City. Integra Realty Resources, Tampa Bay performed an appraisal of the Easterland property on behalf of the College with a valuation date of June 2, 2015.
|
|
Upland Valuation |
Wetland Valuation |
|
James Millspaugh & Associates, Inc. |
$960,000 |
$180,000 |
|
Lee Pallardy, Inc. |
$1,000,000 |
$135,000 |
|
Integra Realty Resources, Tampa Bay |
$1,180,000 |
N/A |
Acquisition Costs:
Purchase Price $1,360,000
Survey $28,040
Closing Costs $6,900
TOTAL $1,394,940
APPROPRIATION CODE AND AMOUNT:
0181-99704-560100-539-000-0000 $463,303
0315-96168-560100-539-000-0000 $936,697
Funding is available in Special Program project 0181-99704, Sembler Mitigation, in the amount of $463,303 and Capital Improvement Program project 0315-96168, Stormwater System Expansion, in the amount of $936,697 for total funding of $1,400,000.