SUBJECT/RECOMMENDATION:
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Declare surplus certain real property located in Section 17, Township 29 South, Range 16 East (city-owned David Avenue property) for the purpose of exchanging the David Avenue property for certain property owned by Creative Contractors, Inc. at Drew Street and North Garden Ave.; approve the related Contract for Exchange of Real Property between Creative Contractors, Inc. and the City of Clearwater and authorize the appropriate officials to execute same, together with all other instruments necessary to affect closing. (APH)
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SUMMARY:
The city-owned David Avenue Property is 5.68 acres of unimproved land that was acquired by the city on October 3, 1997 for $386,000.00. The site was purchased in order to replace a collapsing stormwater system on the property which was addressed after the purchase. A new stormwater pipe relining project is underway and will be completed prior to closing of the land exchange. The site consists of two contiguous parcels identified by the Pinellas County Property Appraiser as 17-29-16-00000-130-0900 and 17-29-16-34650-000-0340, which are legally described in Exhibit B of the contract.
The property owned by Creative Contractors, Inc. is located at 618-620 Drew St., and is a 0.72-acre site containing a building with 8,176 square feet of office space, a parking lot, and unimproved land. The site is located at the northern perimeter of Downtown Clearwater in the strategic Old Bay Character District. The site consists of three contiguous parcels identified by the Property Appraiser as 09-29-15-44352-006-0030, 09-29-15-44352-006-0050, and 09-29-15-44352-006-0070, and which are legally described in Exhibit A of the contract.
The exchange is contingent upon the following: declaration of the city property as surplus; City Council approval of certain vacating ordinances related to the David Avenue property as contemplated in the contract; the reservation of new easements as contemplated in the contract; certain wellhead restrictions as contemplated in the contract; and the City being granted adequate access to Creative Contractor’s property for purposes of conducting inspections and investigations, including environmental investigations. If any of the contingencies aren’t met, the contract will become null and void.
An independent appraisal was performed by Tobias Realty Advisors, LLC on both sites in the proposed property exchange. The City’s David Avenue property’s fair market value was determined to be $655,000 as of December 22, 2018 and the Creative Contractor’s Drew Street Property was determined to have a $685,000 fair market value as of December 7, 2018.
With the proposed land exchange, the City will receive a property with a higher appraised value which is located in the strategic downtown core.
Per City Charter Section 2.01(d)(5)(iv), real property declared surplus may be exchanged for other real property having a comparable appraised value.
The closing date in the property exchange contract between the City and Creative Contractors contemplates the closing will occur on or before October 1, 2020.
City closing costs are not to exceed $6,000.
The parties agree that after closing of the property exchange, Creative Contractors will leaseback from the City, the Drew Street property at the market lease rate determined to be $4,155.56 monthly. The term of the lease is for a period of 18 months and can be terminated with 60-days’ notice. The leaseback will allow Creative Contractors to remain in their Drew street office while their new office building is being constructed on the David Avenue property.
APPROPRIATION CODE AND AMOUNT:
4191365-530100
Funding is available in Stormwater Management 1365-530100, Professional Services for closing costs.