SUBJECT/RECOMMENDATION:
Title
Approve the Contract for Sale of Real Property by the City of Clearwater 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. (consent)
Body
SUMMARY:
The property, located at 1454 S Martin Luther King, Jr. Avenue, is currently vacant and it is identified by Resolution 17-38 as a city-owned property appropriate for use as affordable housing (Pinellas County Property I.D. 22-29-15-00000-320-1300). The property was acquired in 1995 with Community Development Block Grant (CDBG) program funding made available to the city from the United States Department of Housing and Urban Development. The city acquired the property in 1995 for $84,000 to develop a seven-unit single family subdivision for low- to moderate-income households.
On January 18, 2018, City Council declared the property surplus for the purpose of sale, through Invitation to Bid (ITB) 14-18, whereby the successful bid was required to meet the terms set by Council. Following the Council meeting, an administrative matter required staff to change the ITB number to 21-18. 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 $205,000.
• The property must be developed with a minimum of ten residential units for sale to households with total household income at or below 80% of area median income.
• Vertical construction must commence within one year of closing.
An appraisal was performed on the property by James Millspaugh and Associates, Inc. The appraised value was $205,000 with a valuation date of September 6, 2017.
Habitat for Humanity of Pinellas County, Inc. was the only respondent to Invitation to Bid 21-18. Their bid included a purchase price of $206,000 and met all additional terms set by Council; these terms have been incorporated into the proposed contract.
Proceeds from sale will be used for future CDBG-eligible projects administered by the Economic Development & Housing Department.
APPROPRIATION CODE AND AMOUNT:
USE OF RESERVE FUNDS: NA