Agenda 06/13/2017 Item #16D1006/13/2017
EXECUTIVE SUMMARY
Recommendation to decline the opportunity to purchase the Bank of the Everglades Building.
OBJECTIVE: To consider the opportunities and expenses associated with the acquisition of the historic
Everglades Bank Building in Everglades City.
CONSIDERATIONS: On February 14, 2017, the Board considered an offer to purchase the Bank of the
Everglades Building, located at 201 Broadway Avenue West in Everglades City (Agenda item 11E). The
two-story, 5162-square-foot building sits on approximately .23 acres. The asking price was in the range of
$500,000 to $750,000.
At that time, the Board rejected the offer as proposed, but directed staff to conduct a limited amount of
due diligence to ascertain an appropriate acquisition price and associated expenses with renovation and
operation.
Museum and Real Estate Services staff toured the building in March. Real Estate Services has completed
an inspection report and concluded that in “as is” condition the market value of the building is $153,000.
Museum staff completed an initial condition assessment and concluded that building would need gutting
and replacement of all major building systems (HVAC, plumbing, electrical, roof and structural repair) if
it were to be converted to any public use. Using a figure of $200 per square foot (which is very
conservative for a historic building located in a remote location), renovation is estimated at $1,032,400.
Based on these findings and the other considerations contemplated in the discussions from February (such
as the existence of the Museum of the Everglades across the street), staff recommends declining the
opportunity to purchase the building.
FISCAL IMPACT: There is no further fiscal impact associated with declining this opportunity.
GROWTH MANAGEMENT IMPACT: There is no growth management impact associated with this
item.
LEGAL CONSIDERATIONS: This item has been reviewed by the County Attorney, raises no legal
issue at this time, and requires majority vote for approval. -JAK
RECOMMENDATION: To decline the opportunity to purchase the Bank of the Everglades Building.
Prepared by: Amanda Townsend, Museum Director
ATTACHMENT(S)
1. Market Analysis Everglades building (DOCX)
2. EBB condition report (PDF)
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06/13/2017
COLLIER COUNTY
Board of County Commissioners
Item Number: 16.D.10
Doc ID: 3131
Item Summary: Recommendation to decline the opportunity to purchase the Bank of the
Everglades Building.
Meeting Date: 06/13/2017
Prepared by:
Title: Operations Analyst – Public Services Department
Name: Hailey Margarita Alonso
05/24/2017 1:13 PM
Submitted by:
Title: Division Director - Operations Support – Public Services Department
Name: Amanda O. Townsend
05/24/2017 1:13 PM
Approved By:
Review:
Public Services Department Amanda O. Townsend Additional Reviewer Completed 05/24/2017 2:37 PM
Public Services Department Joshua Hammond Additional Reviewer Completed 05/25/2017 8:36 AM
Public Services Department Hailey Margarita Alonso Level 1 Division Reviewer Completed 05/25/2017 8:40 AM
Public Services Department Sean Callahan Additional Reviewer Completed 05/26/2017 2:03 PM
Public Services Department Steve Carnell Level 2 Division Administrator Review Completed 05/30/2017 11:02 AM
Budget and Management Office Ed Finn Additional Reviewer Completed 05/30/2017 11:05 AM
Office of Management and Budget Valerie Fleming Level 3 OMB Gatekeeper Review Completed 05/30/2017 2:14 PM
County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 05/30/2017 3:53 PM
County Manager's Office Nick Casalanguida Level 4 County Manager Review Completed 06/04/2017 10:37 AM
Board of County Commissioners MaryJo Brock Meeting Pending 06/13/2017 9:00 AM
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Packet Pg. 883
Inspection Report
Everglades City Bank Building
Roosevelt Leonard, R/W-AC
Sr. Review Appraiser
Real Property Management
3335 Tamiami Trail East Ste. 101
Naples. FL 34112
Ph: 239 252-2621
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Packet Pg. 884 Attachment: Market Analysis Everglades building (3131 : Bank of the Everglades)
Brief Background
The Bank of Everglades Building (also known as Everglades Vacation Rentals) was a bank in
Everglades City, Florida, United States. It is located at 201 West Broadway. On July 15, 1999, it
was added to the U.S. National Register of Historic Places. The Everglades Bank Building
operated as a bed and Breakfast for 2 plus years, although currently the building is vacant and
under repairs.
Renovation is a natural part of the property ownership life cycle. Whether you’re upgrading
systems or updating old fixtures, it’s natural to wonder how much your planned renovations will
cost. The size of the Everglades bank Building is 5,162sf +/- built in 1926 with addition in 1956.
Unfortunately, there’s no simple formula for answering this question. Costs can vary from less
than $35 per square foot to well over $250 per square foot, based on a huge variety of factors,
including the building’s use and location, current codes, and ever-changing labor and material
costs. Additionally, unforeseen complications during construction can change the estimate even
after the project is in process.
SUMMARY REPORT
1 - Roof
Roof coverings, Flashings, & Gutter system all need repair, also the flat roof leaks in several
areas. (Not acceptable)
2 - Exterior
Wood Trim, Doors, Lighting, Trim/fascias/soffits, Masonry, Windows & Foundation all need
repair. The foundation show visual signs of stress at the front entrance. (Not acceptable)
3 - Grounds
City water and sewer with wet sprinkler fire system, not sure if the fire sprinkler system is
operational. Termite inspection is required along with a crawlspace inspection. (?)
4 - HVAC
HVAC Systems are not complete throughout building. Window a/c units are not all functional.
This will likely be insufficient for targeted building use (not acceptable)
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Packet Pg. 885 Attachment: Market Analysis Everglades building (3131 : Bank of the Everglades)
5 - Electrical
Not all components appear in good working order. Exposed wiring in some areas and missing
fixtures in other areas. (Not acceptable)
6 – Bathroom and plumbing
Not all fixtures appear in good condition and proper working order. (Not acceptable)
7 - Interior Rooms
Interior is not complete. Currently the roof is leaking in some rooms, on the first floor the ground
is visible from one of the rooms, the wood floors are uneven-possibly foundation problems, and
most of the interior walls need repair or replacing. (Not acceptable)
Other factors of consideration:
Location:
Due to differences in labor, materials, and building code regulations, renovation costs on similar
projects can vary by as much as 70% based on location, and permitting. A check on the Collier
County Web site did not indicate any permits for current renovations.
Building Use:
The intended use of the building impacts the materials, equipment, and structural concerns
involved in renovation. The Everglades Bank office building was retro fitted to become a bed
and breakfast. The current use is six bedrooms upstairs and 4 dorm type units downstairs with a
community bathroom.
Historic District Compliance:
The Everglades Bank building is on the national historic list, which may require additional code
considerations. Meeting historic district requirements may cost significantly more, b ut it will
require additional due diligence, may limit your materials as well as structural options, and may
take significantly longer to obtain all regulatory approvals.
Potential Costs:
Demo and repair costs- Means getting the building in marketable condition. Fixing some items
noted in the pictures below. Building is 5,162sf +/- x $75sf is $387,150 say $387,000.
Renovations: Means replacing or having higher quality of workmanship (original features) also
some material maybe new. Building is 5,162sf +/- x $175sf is $903,350
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Packet Pg. 886 Attachment: Market Analysis Everglades building (3131 : Bank of the Everglades)
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Packet Pg. 887 Attachment: Market Analysis Everglades building (3131 : Bank of the Everglades)
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Packet Pg. 888 Attachment: Market Analysis Everglades building (3131 : Bank of the Everglades)
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Packet Pg. 889 Attachment: Market Analysis Everglades building (3131 : Bank of the Everglades)
Outside Ground visible
Uneven Floor
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Packet Pg. 890 Attachment: Market Analysis Everglades building (3131 : Bank of the Everglades)
Wall behind panel
Exit door will not close
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Packet Pg. 891 Attachment: Market Analysis Everglades building (3131 : Bank of the Everglades)
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Packet Pg. 892 Attachment: Market Analysis Everglades building (3131 : Bank of the Everglades)
Market Analysis
When the Everglades Bank Building was converted into a bed and breakfast, most of the
historical items were taken out. Only the historical marker, bank vault, and attic fan remain.
The research and analysis indicates a range of workmen ship costs for demo and repairs in the
range of $50sf to $200sf. The pictures in the Inspection Report are from different rooms within
the Everglades Bank Building.
Extraordinary/special assumptions, is an underlying premise of this Inspection Report. There is
an assumption that the subject property will become marketable and no environmental, structural
defects, or any unknown negative features exist after the lower cost of repairs is completed. If
this cannot be accomplished, then the value will be affected.
Environmental Concern:
Possible lead paint and asbestos present, inspection required
There are many unforeseen conditions that exist in the Everglades City Bank Building.
The current 2017 property tax assessment: $367,361
If current renovations were completed / acceptable: $540,000
6 full units with bath @ $70,000.00 = $420,000
4 half units with community bath @ $30,000 = $120,000
Everglades Bank Building “as is” 3/21/2017
$540,000 minus $387,000 (5,162sf x $75.00sf=$387,000 needed repairs) results in $153,000.
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Packet Pg. 893 Attachment: Market Analysis Everglades building (3131 : Bank of the Everglades)
Everglades City Bank Building – Initial Condition Assessment
April 2017
page 1 of 5
Structural
The structural integrity of the building is difficult to determine through simple observation. Several cracks are evident on the exterior of the building where the
walls meet the foundation. On the interior first floor there is a buckle of approximately 3 inches running with the floor boards. All original windows have been
replaced with aluminum-frame awning windows. There is an 850-square-foot two-story addition that is not original to the building. Further assessment is
needed to determine the building’s structural needs.
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Packet Pg. 894 Attachment: EBB condition report (3131 : Bank of the Everglades)
Everglades City Bank Building – Initial Condition Assessment
April 2017
page 2 of 5
Roof
Almost every room on the second floor and some areas on the first floor show evidence of roof leaks. The owner states that leaks have been found and patched,
and in some places damaged dry wall and insulation has been partially removed, though not yet replaced. In one upstairs room the carpet was thoroughly
soaked, indicating a new or as-yet unrepaired leak. It can be presumed that the building needs a complete re-roof.
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Packet Pg. 895 Attachment: EBB condition report (3131 : Bank of the Everglades)
Everglades City Bank Building – Initial Condition Assessment
April 2017
page 3 of 5
HVAC
The building was built without air conditioning. A massive exhaust fan in the attic is original to the building. The owner states it is still operable and does work as
a cooling mechanism, though we did not observe it in operation during our visit. Seven window units (four upstairs, three down) provide air conditioning. If the
building were to be restored it would need to be retrofitted with a central HVAC system.
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Packet Pg. 896 Attachment: EBB condition report (3131 : Bank of the Everglades)
Everglades City Bank Building – Initial Condition Assessment
April 2017
page 4 of 5
Plumbing
The building is on Everglades City water and sewer. Each upstairs unit is plumbed with a bathroom. Previously each unit also had a kitchenette, but most of
these have been removed. A kitchen and a laundry are plumbed on the first floor. The building has been retrofitted with a fire sprinkler system. The plumbing is
not currently in use, so its performance could not be determined. If the building were to be restored, the multiple single bathrooms would need to be removed
and replaced, most likely with multi-stall central rest rooms, depending on the building’s intended use.
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Packet Pg. 897 Attachment: EBB condition report (3131 : Bank of the Everglades)
Everglades City Bank Building – Initial Condition Assessment
April 2017
page 5 of 5
Electrical
The electrical service throughout the building has been upgraded and the owner states all work was done to code. The building has a newer alarm system. The
extent of the building’s electrical needs can only be determined after a decision is made on its future intended use.
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Packet Pg. 898 Attachment: EBB condition report (3131 : Bank of the Everglades)