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Agenda 06/26/2018 Item #14B106/26/2018 EXECUTIVE SUMMARY Recommendation that the Board of County Commissioners, acting as the Community Redevelopment Agency Board (CRAB), terminate current negotiations with Arno, Inc. as proposed under ITN 17-7169 and direct staff to incorporate the parcels into the redevelopment plan update to determine the best future vision for the approximately 17.89 acres of CRA owned property in the Bayshore/Gateway Triangle Redevelopment Area. OBJECTIVE: To encourage meaningful redevelopment within the Bayshore/Gateway Triangle Community Redevelopment Area (BGTCRA), as guided by the redevelopment plan. CONSIDERATIONS: On April 11, 2017, the Board of County Commissioners acting as the Collier County Community Redevelopment Agency Board (CRAB), authorized staff to market and sell, through the Invitation to Negotiate (ITN 17-7169) process, the BGTCRA-owned property identified as 4265 and 4315 Bayshore Drive in accordance with Section 163.380, Florida Statutes, as outlined in the Collier County Community Redevelopment Plan. The notice soliciting proposals to development of the 17.89 parcel located on Bayshore Drive was timely published. The deadline to submit price and concept proposals on the ITN was August 31, 2017. Three proposals were received: Arno, Inc.; Banroc Corporation; and Minker Properties. The proposals were reviewed by the Bayshore Gateway Triangle CRA Advisory Board on October 5, 2017, and October 19, 2017. On November 3, 2017, Minker Properties withdrew its proposal. On November 14, 2017, the CRAB considered the two remaining proposals and directed staff to negotiate with both developers. On February 13, 2018, Banroc Corporation withdrew its proposal. On February 13, 2018, the Board of County Commissioners acting as the Collier County Community Redevelopment Agency Board (CRAB), reviewed the proposal submitted by Arno, Inc., and authorized staff to publish the thirty (30) day notice of intent to dispose of the approximately 17.89 acres of CRA - owned property located in Bayshore Gateway Triangle Redevelopment Area to Arno, Inc. Section 163.380(3)(a), Florida Statutes, requires that prior to disposition of any real property or interest therein in a community redevelopment area, any county, municipality, or community redevelopment agency shall give public notice or such disposition by publication in a newspaper having general circulation in the community, at least 30 days prior to the execution of any contract to sell, lease, or otherwise transfer real property. As required, the notice was published on Fe bruary 16, 2018, and all alternative proposals were due by March 19, 2018. No alternate proposals were received. Staff had ongoing negotiations with Arno Inc., but ultimately the requisite financial commitment could not be secured to move forward with a Purchase and Sales Agreement. On June 11, 2018, Arno Inc.’s source of financing, Developer Capital, officially withdrew their commitment to the project. FISCAL IMPACT: The sites were purchased in 2006 ($4,614,243 - 4265 Bayshore Dr.) and 2008 ($765,652 - 4315 Bayshore Dr.) for a total of $5.35 million. The sales price provided in the Arno Inc. proposal was $3.5 million. The CRA will continue to maintain the properties until future plans are determined. GROWTH MANAGEMENT IMPACT: None ADVISORY COMMITTEE RECOMMENDATIONS: At its June 5, 2018, meeting, the Advisory 14.B.1 Packet Pg. 497 06/26/2018 Committee voted unanimously to continue negotiations with Arno, Inc., but rejected offering any financial incentives to the developer in order to move the project forward. LEGAL CONSIDERATIONS: This item has been reviewed by the County Attorney, raises no legal issue, and requires majority vote for approval. -JAK RECOMMENDATION: Recommendation that the Board of County Commissioners, acting as the Community Redevelopment Agency Board (CRAB), terminates current negotiations with Arno, Inc. as proposed under ITN 17-7169 and direct staff to incorporate the parcels into the redevelopment plan update to determine the best future vision for the approximately 17.89 acres of CRA owned property owned in Bayshore/Gateway Triangle Redevelopment Area. Prepared by: Debrah Forester, CRA Director ATTACHMENT(S) 1. BGTCRA - 17 ACRE Project Overview (PDF) 14.B.1 Packet Pg. 498 06/26/2018 COLLIER COUNTY Board of County Commissioners Item Number: 14.B.1 Doc ID: 5954 Item Summary: Recommendation that the Board of County Commissioners, acting as the Community Redevelopment Agency Board (CRAB), terminate current negotiations with Arno, Inc. as proposed under ITN 17-7169 and direct staff to incorporate the parcels into the redevelopment plan update to determine the best future vision for the approximately 17.89 acres of CRA owned property in the Bayshore/Gateway Triangle Redevelopment Area. Meeting Date: 06/26/2018 Prepared by: Title: – County Manager's Office Name: Debrah Forester 06/14/2018 6:41 PM Submitted by: Title: County Manager – County Manager's Office Name: Leo E. Ochs 06/14/2018 6:41 PM Approved By: Review: County Manager's Office Tim Durham Additional Reviewer Completed 06/15/2018 12:01 PM County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 06/15/2018 1:35 PM Office of Management and Budget Valerie Fleming Level 3 OMB Gatekeeper Review Completed 06/15/2018 3:16 PM Budget and Management Office Ed Finn Additional Reviewer Completed 06/18/2018 10:01 AM County Manager's Office Leo E. Ochs Level 4 County Manager Review Completed 06/18/2018 11:35 AM Board of County Commissioners MaryJo Brock Meeting Pending 06/26/2018 9:00 AM 14.B.1 Packet Pg. 499 Bayshore Gateway Triangle CRA 17.89 Acres 14.B.1.a Packet Pg. 500 Attachment: BGTCRA - 17 ACRE Project Overview (5954 : Bayshore CRA 17AC) Location of the 17-acre CRA Property 2 Located on the eastern side of Bayshore Drive, north of Thomasson Drive, and abutting Sugden Park. CRA Purchased parcels in 2006 and 2008 for $5.35M. Appraised at $3,694,000 in 2017. Zoned as the Cultural Arts Village at Bayshore, a mixed use PUD. 14.B.1.a Packet Pg. 501 Attachment: BGTCRA - 17 ACRE Project Overview (5954 : Bayshore CRA 17AC) Location of the 17-acre CRA Property 3 14.B.1.a Packet Pg. 502 Attachment: BGTCRA - 17 ACRE Project Overview (5954 : Bayshore CRA 17AC) Current Zoning –Mixed Use PUD 4 maximum of 40 residential dwelling units up to 48,575 SF of commercial up to 84,000 SF of parking (parking structure) 350-fixed seat performance theater maximum height of four stories 14.B.1.a Packet Pg. 503 Attachment: BGTCRA - 17 ACRE Project Overview (5954 : Bayshore CRA 17AC) Arno Inc. Proposal 5 Proposal on 17.89 Acres: •$3.5 Million Sale Price •214 residential units •15,000 SF Retail •400 parking spaces •Cultural Component 14.B.1.a Packet Pg. 504 Attachment: BGTCRA - 17 ACRE Project Overview (5954 : Bayshore CRA 17AC)