SUBJECT/RECOMMENDATION:
Title
Approve the Purchase Contract for the City of Clearwater Community Redevelopment Agency (CRA) purchase of real property, Parcel No.15-29-15-65214-002-0150, with a purchase price of $250,000 and total expenditures not to exceed $255,800 including closing-related costs and preparation of the site; authorize the appropriate officials to execute same, together with all other instruments required to affect closing; authorize the establishment of a new capital improvement project entitled Pierce Street Washington Avenue Property Acquisition, 388-94897; and approve the transfer of $255,800 from capital improvement project 388-94849, Downtown Gateway, to fund this project.
Body
SUMMARY:
The subject property, Parcel Identification Number 15-29-15-65214-002-0150, is owned by RDB Commercial Properties LLC (Seller). Seller’s property has a total land area of approximately 18,144 square feet. The property has approximately 108 ft. of linear frontage on Pierce Street and approximately 168 ft. of linear frontage on Washington Avenue. This is a rectangular-shaped vacant parcel adjacent to a city-owned property located at 115 Martin Luther King Jr. Avenue.
The adjacent city-owned property (115 MLK Jr. Avenue) was purchased in October 2003 and contains a vacant building with a floor area of approximately 11,840 square feet. With the acquisition of the subject property (15-29-15-65214-002-0150), the City and CRA are presented with an opportunity to potentially assemble the two sites which may allow for a larger development consistent with the goals and vision of the Downtown Redevelopment Plan.
Specifically, the acquisition is key in being able to achieve the vision of the Town Lake Business District, which seeks to promote a variety of office, commercial and residential uses, as well as create a market for new retail, restaurant and entertainment development.
Jim Millspaugh and Associates, Inc. performed an independent appraisal on the property in April 2016 that values the property at $175,000. Mr. Millspaugh is currently updating the appraisal, which will be available prior to the October 16th CRA meeting. An additional independent appraisal is being conducted, which will also be available before the meeting. In light of recent real estate transactions in the neighborhood, as well as the development of The Nolen, a 257-unit residential project, staff views this as a key parcel.
Summary of costs for the purchase of the subject property are as follows:
Purchase price $250,000
Closing related costs $1,300
Environmental Audit $2,500
Boundary Survey $2,000
TOTAL $255,800
APPROPRIATION CODE AND AMOUNT:
A first quarter budget amendment will provide a transfer of $255,800 from capital improvement project 388-94849, Downtown Gateway, to capital improvement project 388-94897, Pierce St/Washington Ave Prpty Acq, to fund this contract.