SUBJECT/RECOMMENDATION:
Title
Approve the Contract for Sale of Real Property by the City of Clearwater, Florida (Contract) between the City of Clearwater and Equity Lifestyle Properties, Inc. and authorize the appropriate officials to execute same, together with all other instruments required to affect closing. (consent)
Body
SUMMARY:
The subject property is roughly 425 acres, located in Keystone, Florida, which is an unincorporated area of Hillsborough County. It is comprised of three abutting parcels whose Hillsborough County folio numbers are 001688-0000, 001689-0000, and 001697-0000.
This land was acquired by the City of Clearwater in 1982 for disposing treated sludge from the City’s wastewater treatment plants. This site was used again from 2009 to 2014 for discarded dredged material as a part of the Stevenson Creek Restoration Project.
The property has been managed by Robert and Patricia Smith since the property was acquired in 1982 under a series of management agreements with the City. The current management agreement between the City and Mr. & Mrs. Smith was entered on March 23, 2016 and is set to expire on March 28, 2021. No money is exchanged in this agreement; Mr. and Mrs. Smith manage the property in exchange for being allowed to raise cattle on the property. Either party has the right to terminate this agreement, at any time, upon providing ninety days’ notice. The Contract requires that the city deliver the property free and clear of the Management Agreement.
Two independent appraisals were performed on the property on August 18, 2017 by Trigg, Catlett & Associates and on September 19, 2017 by Urban Economics, Inc. The appraised values were $6,450,000 and $2,727,400 respectively. The discrepancy in values is the result of the two appraisers using different potential layouts for the site and sales comparisons during their valuation.
December 21, 2017, City Council declared the property surplus for sale through Invitation to Bid #09-18, 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 $6,450,000 and the successful bidder will hold harmless, release and indemnify the City for existing environmental conditions.
The City received one bid that met the minimum qualifications listed above. Equity Lifestyle Properties, Inc. submitted a qualifying bid with a proposed purchase price of $6,500,000.
Consistent with City Charter 2.01 referenced above, staff recommends approval of the Contract between the city and Equity Lifestyle Properties LLC, the entity having submitted the highest competitive bid above the appraised value whose bid meets the terms set by the Council.
City closing costs will not be available until closer to closing date in approximately 8 months, or July 2019, and will be deducted from proceeds of the sale.
Proceeds from the sale will be credited to the Water and Sewer Utilities System.