Agenda 09/12/2017 Item #16A4409/12/2017
EXECUTIVE SUMMARY
Recommendation to approve a Purchase Agreement for the purchase of two (2) fee simple parcels
(Parcels 103FEE1 and 103FEE2) required for roadway improvements at the intersection of Airport
Road and Davis Boulevard (Project No. 60148) Fiscal Impact: Approximately $695,950.
OBJECTIVE: To acquire right-of-way in the form of two fee simple parcels for the construction of
intersection improvements at Airport Road and Davis Boulevard, Project 60148 (the “Project”).
CONSIDERATIONS: Southbound Airport Road is a three-lane roadway. As it approaches Davis
Boulevard, however, the right lane becomes a “right-turn-only” lane for vehicles turning west onto Davis
Boulevard. This restricts traffic as it forces through traffic in the right lane to me rge into the center lane.
Collier County is seeking to purchase two fee simple right -of-way parcels needed for construction of the
Project, which will add a dedicated right turn lane in this location, while retaining all three southbound
through-lanes and thereby improve the capacity of the intersection.
The parent tract for both parcels is the 0.861 acre “Combs Oil” property, which is an operating wholesale
oil distribution facility located on the northwest corner of Davis Boulevard and Airport Road wi th
additional frontage on Terrace Avenue. The first parcel (Parcel 103FEE1) is an irregularly shaped strip of
land at the northwest corner of the intersection of Airport Road and Davis Boulevard with approximately
140 feet of frontage on Davis Boulevard and approximately 175 feet of frontage along Airport Road.
This proposed right-of-way parcel contains approximately 6,399 square feet. The second parcel (Parcel
103FEE2) is also irregularly shaped with approximately 90 feet of frontage on Airport Road and a width
that tapers from approximately 19 feet down to approximately 14 feet. This second parcel contains
approximately 1,359 square feet.
County staff has had informal and occasional discussions with Mr. Dennis Combs (owner of Combs Oil)
over several years expressing our desire to purchase these parcels and construct the intersection
improvements. Negotiations were forestalled and hindered by ongoing difficulties Mr. Combs was
experiencing with various governmental entities (County, and local and sta te Fire Authorities) pertaining
to his new custom-designed petroleum distribution facility located at 76 Industrial Boulevard, to which he
intends to relocate, but has been unable to due to a withheld Certificate of Occupancy (relating to
contentious, costly and conflicting state/local Fire Authority directives). Mr. Combs’ refusal to negotiate
at this stage would typically force Collier County to condemn the required lands through its power of
eminent domain, but staff recognized that this process would likely be very costly due to the nature of the
property involved and the likely damage claims the County could face. Instead, staff offered to try to
assist Mr. Combs in resolving the issues preventing his relocation into the new facility (with the hope of
fostering a non-litigious acquisition of the Airport-Davis parcels). Several meetings were subsequently
organized by County staff (including the County Manager) with Mr. Combs, his attorney and the various
entities involved in the permitting of his new facility. Agreement was finally achieved between Mr.
Combs and the interested parties on a way forward to resolve the issues that prevented his relocation into
his new facility. At this point, Mr. Combs expressed his willingness to negotiate the sale of the parcels
the County required for its project.
As part of the acquisition process, Collier County obtained an appraisal of the parcels by an experienced
eminent domain real estate appraiser familiar with the valuation of complex partial takings involving
commercial properties (see appraisal attached). The appraised compensation for these parcels totals
$685,800, which is inclusive of land and improvements in the take areas and severance damages to the
remaining improvements/lands (the remainder no longer having sufficient size or access for continued use
as a wholesale oil distribution facility and limited potential for redevelopment as a stand -alone tract).
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Staff has negotiated this amount as full compensation for this acquisition; as a condition of acceptance,
Mr. Combs requires that he be allowed to remain at his current location until he is able to move to his new
premises, or until January 1, 2019, whichever is later. Various regulatory permit fees in the amount of
$10,000 have been expended by Mr. Combs for which he requests re-imbursement and staff agreed to
recommend that the Board reimburse Mr. Combs for these fees in an effort to facilitate this increasingly
complicated transaction.
On or about May 12, 2017, Mr. Combs sold the Airport-Davis Combs Oil property (the parent tract) to
TT of Tamiami, Inc. which is in the process of establishing a Porsche automobile dealership at that
intersection. TT of Tamiami, Inc. has agreed to all of the terms which County staff had negotiated with
Mr. Combs, with Mr. Combs being a third-party beneficiary under the terms of the Purchase Agreement.
The attached Purchase Agreement provides for a purchase price of $685,800 to be paid to TT of Tamiami,
Inc., plus an additional $10,000 to be paid to Mr. Combs at closing to cover fees incurred relating to
obtaining his certificate of occupancy on Industrial Boulevard.
The Purchase Agreement also contains an addendum (Exhibit “B”). As is apparent from this exhibit, Mr.
Combs’ sale agreement with TT of Tamiami, Inc., requires that this addendum be made a part of any
agreement between TT of Tamiami, Inc., and Collier County for the acquisition of the Parcels. Pursuant
to Exhibit “B”, “Mr. Combs undertakes to use his best endeavors and to move diligently forward with
obtaining all required permits and a certificate of occupancy to enable him to relocate his business” to 76
Industrial Boulevard. “Provided that Mr. Combs complies with the aforesaid obligations, County shall
not commence construction” of the County’s road project until Mr. Combs has relocated to 76 Industrial
Boulevard “or before January 1, 2019, whichever is sooner.” If Mr. Combs is unable to relocate to his
new premises by reason of the County’s “obstructionist, non-responsive or obfuscatory acts or omissions
in regards to Mr. Combs’ attempt to obtain a certificate of occupancy,” then the January 1, 2019 deadline
to vacate the property will not apply. Paragraph 4 of the Purchase Agreement makes it clear that Collier
County makes no admission of any such acts or omissions. In addition, in the event that the fees
necessary to obtain the Certificate of Occupancy are in excess of $10,000 due to “obstructionist, non -
responsive or obfuscatory acts or omissions” by the County, the County shall reimburse Mr. Comb s for
the additional expenses in excess of $10,000.
Staff has been closely monitoring, and will continue to closely monitor, Mr. Combs’ progress in obtaining
the necessary certificate of occupancy to relocate his business.
There were concerns regarding possible contamination because the site is a former gas station. On April
6, 2017, Mr. Combs received a Site Rehabilitation Completion Order (copy attached) from the Florida
Department of Environmental Protection confirming that he was released from any further obligation and
no further action is required. Staff believes it is prudent to further test the groundwater to determine
whether any remediation is necessary within our project limits. Staff’s design consultant, Greg Schultz,
PE, Senior Project Manager for Cardno has advised that, if necessary, remediation and associated costs to
cure should not exceed $75,000, which would include both consulting and construction fees.
Staff is recommending that the Board of County Commissioners approve the Purcha se Agreement for the
purchase of the Parcels.
FISCAL IMPACT: Funds in the amount of $695,950 ($685,800 purchase price; $10,000 Certificate of
Occupancy fees; and approximately $150 recording fees) are available in the Airport Road S & Davis
Boulevard Transportation Capital Improvement Project No. 60148. The primary funding source for the
acquisition of right-of-way is impact fees. New roadway construction has a maintenance curve of
approximately five to seven years before any incremental costs are required for repairs.
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LEGAL CONSIDERATIONS: This item has been reviewed by the County Attorney. There are two
issues that concern me. The first issue is that there is uncertainty as to whether Mr. Combs will ever
receive a Certificate of Occupancy for his new business, which I am advised has been held up by Fire
review (and not by the County), and which requires his due diligence in obtaining (he may, for example,
change his mind). This concern is somewhat lessened if we view this acquisition as reserving sc arce
right-of-way for an important future project; once the right-of-way is acquired, the actual construction can
take place once the issue with Mr. Combs (or his eventual successor in interest) is resolved (either
amicably or through litigation), which may be some undetermined time in the future. The second issue of
concern is the nature of the site. This is a petroleum distribution facility, with a known petroleum spill.
Purchasing a site of this nature will always have an inherent risk of a future oil plume migrating to and
showing up at a neighboring property. Staff has dealt with these concerns as best as could be expected in
the Purchase and Sale Agreement, but cannot eliminate these risks. It boils down to weighing the need of
acquiring this right-of-way against the inherent risks of the transaction, which risks are difficult to
quantify. With that noted, this item is approved as to form and legality and requires a majority vote for
Board approval. - JAK
GROWTH MANAGEMENT IMPACT: This recommendation is consistent with the Long Range
Transportation Plan and the Collier County Growth Management Plan.
RECOMMENDATION: To:
Approve the Purchase Agreement and authorize the Board’s Chairman to execute same on behalf of
the Board;
Accept the conveyance of Parcels 103FEE1 and 103FEE2 and authorize the County Manager, or his
designee, to record the conveyance instrument in the public records of Collier County, Florida;
Authorize the payment of all costs and expenses that Collier County is required to pay under the
terms of the Purchase Agreement to close the transaction;
Authorize the County Manager, or his designee, to take the necessary measures to ensure the
County’s performance in accordance with the terms and conditions of the Purchase Agreement; and
Authorize any and all budget amendments required to carry out the collective will of the Board.
Prepared by: Michelle L. Sweet, Property Acquisition Specialist, Transportation Engineering Division,
Growth Management Department
ATTACHMENT(S)
1. Location Map - 103FEE1 (PDF)
2. Location Map - 103FEE2 (PDF)
3. [Linked] Appraisal 103FEE (PDF)
4. Purchase Agreement (PDF)
5. 4-6-2017 SRCO (PDF)
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09/12/2017
COLLIER COUNTY
Board of County Commissioners
Item Number: 16.A.44
Doc ID: 3569
Item Summary: Recommendation to approve a Purchase Agreement for the purchase of two (2)
fee simple parcels (Parcels 103FEE1 and 103FEE2) required for roadway improvements at the
intersection of Airport Road and Davis Boulevard (Project No. 60148) Fiscal Impact: Approximately
$695,950.
Meeting Date: 09/12/2017
Prepared by:
Title: Property Acquisition Specialist – Transportation Engineering
Name: Michelle Sweet
08/08/2017 9:31 AM
Submitted by:
Title: Division Director - Transportation Eng – Transportation Engineering
Name: Jay Ahmad
08/08/2017 9:31 AM
Approved By:
Review:
Growth Management Operations Support Allison Kearns Additional Reviewer Completed 08/08/2017 3:52 PM
Growth Management Department Gene Shue Additional Reviewer Completed 08/08/2017 4:19 PM
Capital Project Planning, Impact Fees, and Program Management Rookmin Nauth Additional Reviewer Completed 08/10/2017 1:16 PM
Road Maintenance Travis Gossard Additional Reviewer Completed 08/10/2017 1:19 PM
Transportation Engineering Mark McCleary Additional Reviewer Completed 08/10/2017 2:59 PM
Transportation Engineering Kevin Hendricks Additional Reviewer Completed 08/14/2017 9:37 AM
Growth Management Department Diane Lynch Level 1 Reviewer Completed 08/14/2017 10:55 AM
Transportation Engineering Jay Ahmad Additional Reviewer Completed 08/15/2017 7:02 AM
Growth Management Department Michelle Sweet Additional Reviewer Skipped 08/08/2017 9:31 AM
Growth Management Department James French Additional Reviewer Completed 08/15/2017 10:24 AM
County Attorney's Office Emily Pepin Level 2 Attorney Review Completed 08/21/2017 12:18 PM
County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 08/21/2017 1:36 PM
Office of Management and Budget Valerie Fleming Level 3 OMB Gatekeeper Review Completed 08/22/2017 2:49 PM
Budget and Management Office Mark Isackson Additional Reviewer Completed 08/29/2017 12:25 PM
County Manager's Office Leo E. Ochs Level 4 County Manager Review Completed 08/30/2017 3:47 PM
Board of County Commissioners MaryJo Brock Meeting Pending 09/12/2017 9:00 AM
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LOCATION MAP – PARCEL 103FEE1
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Packet Pg. 823 Attachment: Location Map - 103FEE1 (3569 : 60148-103FEE - Airport Road - Combs)
LOCATION MAP – PARCEL 103FEE2
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Packet Pg. 824 Attachment: Location Map - 103FEE2 (3569 : 60148-103FEE - Airport Road - Combs)
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Packet Pg. 825 Attachment: Purchase Agreement (3569 : 60148-103FEE - Airport Road - Combs)
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Packet Pg. 826 Attachment: Purchase Agreement (3569 : 60148-103FEE - Airport Road - Combs)
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Packet Pg. 827 Attachment: Purchase Agreement (3569 : 60148-103FEE - Airport Road - Combs)
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Packet Pg. 828 Attachment: Purchase Agreement (3569 : 60148-103FEE - Airport Road - Combs)
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Packet Pg. 829 Attachment: Purchase Agreement (3569 : 60148-103FEE - Airport Road - Combs)
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Packet Pg. 830 Attachment: Purchase Agreement (3569 : 60148-103FEE - Airport Road - Combs)
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Packet Pg. 831 Attachment: Purchase Agreement (3569 : 60148-103FEE - Airport Road - Combs)
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Packet Pg. 832 Attachment: Purchase Agreement (3569 : 60148-103FEE - Airport Road - Combs)
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Packet Pg. 833 Attachment: Purchase Agreement (3569 : 60148-103FEE - Airport Road - Combs)
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Packet Pg. 834 Attachment: Purchase Agreement (3569 : 60148-103FEE - Airport Road - Combs)
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Packet Pg. 835 Attachment: Purchase Agreement (3569 : 60148-103FEE - Airport Road - Combs)
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Packet Pg. 836 Attachment: Purchase Agreement (3569 : 60148-103FEE - Airport Road - Combs)
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Packet Pg. 837 Attachment: Purchase Agreement (3569 : 60148-103FEE - Airport Road - Combs)
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Packet Pg. 838 Attachment: Purchase Agreement (3569 : 60148-103FEE - Airport Road - Combs)
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Packet Pg. 839 Attachment: Purchase Agreement (3569 : 60148-103FEE - Airport Road - Combs)
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Packet Pg. 840 Attachment: Purchase Agreement (3569 : 60148-103FEE - Airport Road - Combs)
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Packet Pg. 842 Attachment: Purchase Agreement (3569 : 60148-103FEE - Airport Road - Combs)
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Packet Pg. 843 Attachment: 4-6-2017 SRCO (3569 : 60148-103FEE - Airport Road - Combs)
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Packet Pg. 844 Attachment: 4-6-2017 SRCO (3569 : 60148-103FEE - Airport Road - Combs)
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Packet Pg. 845 Attachment: 4-6-2017 SRCO (3569 : 60148-103FEE - Airport Road - Combs)
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Packet Pg. 846 Attachment: 4-6-2017 SRCO (3569 : 60148-103FEE - Airport Road - Combs)
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Packet Pg. 847 Attachment: 4-6-2017 SRCO (3569 : 60148-103FEE - Airport Road - Combs)
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Packet Pg. 848 Attachment: 4-6-2017 SRCO (3569 : 60148-103FEE - Airport Road - Combs)
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Packet Pg. 849 Attachment: 4-6-2017 SRCO (3569 : 60148-103FEE - Airport Road - Combs)
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Packet Pg. 852 Attachment: 4-6-2017 SRCO (3569 : 60148-103FEE - Airport Road - Combs)
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Packet Pg. 853 Attachment: 4-6-2017 SRCO (3569 : 60148-103FEE - Airport Road - Combs)
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Packet Pg. 854 Attachment: 4-6-2017 SRCO (3569 : 60148-103FEE - Airport Road - Combs)
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Packet Pg. 855 Attachment: 4-6-2017 SRCO (3569 : 60148-103FEE - Airport Road - Combs)
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Packet Pg. 856 Attachment: 4-6-2017 SRCO (3569 : 60148-103FEE - Airport Road - Combs)