SUBJECT/RECOMMENDATION:
Title
Approve a Contract for Purchase of Real Property located at 701 Franklin Street, by the City of Clearwater (City) for property owned by the Community Redevelopment Agency of the City of Clearwater (CRA), for a purchase price of $525,000 and total expenditures not to exceed $530,000; and authorize the appropriate officials to execute same, together with all other instruments required to affect closing. (consent)
Body
SUMMARY:
On April 7, 2021, the City and the CRA jointly published in the Tampa Bay Times, their intention to dispose certain city-owned property at 704 Court Street and 710 Court Street, and the CRA owned parcel at 701 Franklin Street, and invited proposals to redevelop or rehabilitate the Property.
The full Purchase Price has been reached through mutual agreement of The City of Clearwater City Council and the CRA Board of Trustees and is based on the CRA’s $525,000.00 acquisition cost of the subject 701 Franklin St. property in August 2019.
Other notable terms:
- The City will have up to 60 days to conduct due diligence.
- Closing will occur within 120 days of the effective date but may close sooner.
- It is the intent of the Parties that the CRA and the City enter into a Revocable License Agreement upon closing, allowing the CRA to remain in occupancy of the Property.
Acquisition Costs:
Purchase Price $525,000.
Closing Costs $5,000
TOTAL $530,000
APPROPRIATION CODE AND AMOUNT:
A midyear budget amendment will increase non-departmental cost code 0107010-560300, land development, recognizing an allocation from General Fund reserves.
USE OF RESERVE FUNDS:
Funding for this purchase will be provided by a midyear budget amendment allocating General Fund reserves in the amount of $530,000. Inclusive of this item if approved, a net total of $2,226,540 of General Fund reserves has been appropriated by Council to fund expenditures in the 2020/21 operating budget. The remaining balance in General Fund reserves after the 8.5% reserve is approximately $33.5 million, or 22.1% of the current General Fund operating budget.