Agenda 12/16/2008 Item #14A
Agenda Item No. 14A
December 16, 2008
Page 1 of 10
EXECUTIVE SUMMARY
For the Collier County Community Redevelopment Agency Board to give direction to
the Bayshore Gateway Triangle CRA Executive Director concerning three proposed
purchase contracts for multiple real estate parcels within the Bayshore Drive and
Gateway Triangle portions of the CRA area.
OBJECTIVE: For the Collier County Community Redevelopment Agency Board (CRAB) to
give direction to proceed with the purchase of certain real property within the Bayshore
Gateway Triangle CRA, and to authorize the Executive Director to successfully negotiate
acceptable real estate purchase contracts and return to the CRA Board for contract approval.
BACKGROUND: Florida Statute 163.370 - "Powers; counties and municipalities,
community redevelopment agencies" - delineates other powers necessary to carry out the
purchase and sale of property,
On October 28, 2008, the CRA Board gave direction to the Executive Director to:
. Coordinate with all appropriate entities to secure and structure a new loan from a
commercial lender selected via RFP to purchase certain real property within the
Bayshore Gateway Triangle CRA; and
. Negotiate real estate contracts in the CRA area and return to the CRA Board for
approval.
CONSIDERATIONS: The following two real estate purchase proposals, comprising three
separate contracts, are presented to the CRA Board for consideration. Purchase of any or all
parcels will be contingent on successful acquisition of additional credit through a bank loan.
1. Bavshore Drive. At their regularly scheduled meetings on FebI:Uary 7, 2006 and June 6,
2006, the Bayshore Gateway Triangle CRA Local Advisory Board unanimously voted to
pursue a 2,51 acre vacant parcel on Bayshore Drive (Exhibit A), After two years of
discussions, the owners are willing to accept an offer to purchase from the CRA. On June I,
2006 the land was appraised at $1,280,000 and on October 15,2008, the land was appraised at
$660,000 by the same appraiser.
2. Mini-Triangle. At their December 2, 2008 meeting, the Local Advisory Board unanimously
recommended that the CRA Board purchase eight (8) parcels from two owners in the 14 acre
tract of land known as the mini-triangle of the larger Gateway Triangle area of the CRA. This
area is identified in the CRA Redevelopment Plan as a potential site for a catalyst
redevelopment project (Exhibit B). It is also identified in the Growth Management Plan
(GMP) Future Land Use Element (FLUE) Bayshore/Gateway Triangle Redevelopment
Overlay as a catalyst project site "... eligible for the maximum density of 12 units per acre,
with development standards as contained in the Gateway Triangle Mixed Use District zoning
overlay...".
~.
Agenda Item No. 14A
December 16, 2008
Page 2 of 10
Within the 14 acre mini-triangle catalyst site, the following properties are available for
consideration by the CRA Board (Exhibit C):
. The 1.66 acre parcel known as the former Burger King site was under contract by the
CRA in 2007 for the appraised value of $3,500,000; however the CRA failed to close
on the site due to the Strand v Escambia County law suit, which has been resolved and
no longer a factor. In October 2008 the site was reappraised for the CRA by two
independent appraisers at a value of $2,500,000 and $2,550,000. The owner's
representative stated that the owner is willing to accept an offer to purchase from the
CRA.
. One owner has assembled seven (7) parcels in the center of the mini-triangle
comprising approximately 6.29 acres. On March 10, 2008, the assembled parcels were
appraised for the owner at $9,700,000 'as-is" or $8,250,000 "as though vacant". The
CRA Executive Director has commissioned two appraisals for the CRA to determine
the current value. The owner has delivered the CRA a Seifer's Letter olIn tent dated
November 10, 2008, offering the CRA all seven parcels for a price of $7,500,000 plus
buyer-paid documentary stamps and 2008 ad valorem taxes for an estimated total of
$7,620,948.
JUSTIFICATION:
Bavshore Drive. Acquisition of the 2.51 acre parcel on Bayshore Drive (Exhibit A) would add
the out-parcel portion of the original 17 acre purchase and complete the assemblage of
approximately 20 acres for the proposed Bayshore catalyst development project. This parcel
also provides the future site development with 815 linear feet of road frontage.
Mini-Triangle. CRA acquisition of eight (8) targeted parcels (7.95 acres) within the 14 acres
of the mini-triangle would provide the opportunity to be an integral part of any future
assemblage of the remaining land and potentially leverage public-private partnerships with
adjacent land owners. If the CRA owns and controls over 50% of the land area, then the CRA
has great influence over what is built there (density and intensity), what the resulting uses are
and the ultimate design, Due to the current economic state of affairs, there is great potential
for centrally located parcels to be sold to separate owners for individual business use. If any
of them are sold, then the likelihood a comprehcnsive assembly and redevelopment of the
entire 14 acre site would be marginalized and the mini-triangle's uses would remain as is
indefinitely. Redevelopmcnt of the cntire mini-triangle will achieve many of the objectives
statcd in the CRA Redevelopment Plan, and significantly increase the tax base. An added
bonus to the acquisition of all eight (8) parcels is that the existing structures currently bring in
$445,000/yr in lease revenues to partially service the CRA debt, with the potential to lease the
vacant buildings and incrcase the debt service.
FISCAL IMPACT: The purchase of the three sites would be approximately $10,780,948
plus associated closing costs, building inspections and environmental surveys. Current site
lease revenues are $445,000/yr to partially service the debt. Projected CRA tax increment
revenues are sufficient to cover projected debt service payments on a maximum $20M line of
credit draw. The current $5,901,000 debt would be absorbed by the new bank loan, and if all
Agenda Item No. 14A
December 16, 2008
Page 3 of 10
three sites are purchased, the new debt would be approximately $16,681,948, leaving
$3,318,052 of available credit.
GROWTH MANAGEMENT IMPACT: Policy 4.7 of the Future Land Use Element of the
Growth Management Plan states that redevelopment plans may be developed for specific
areas within the County, including the Bayshore Gateway Triangle CRA. The 14 acre mini-
triangle site is identified in the Growth Management Plan (GMP) Future Land Use Element
(FLUE) Bayshore/Gateway Triangle Redevelopment Overlay as a catalyst project site "...
eligible for the maximum density of 12 units per acre, with development standards as
contained in the Gateway Triangle Mixed Use District zoning overlay.. .".
LEGAL CONSIDERATIONS: This item has been reviewed and approved by the County
Attorney's Office, is not quasi-judicial, requires no ex parte disclosure, and requires only a
simple majority vote for approval, and is otherwise legally sufficient for Board action.
(MMSS)
RECOMMENDATION: For the Collier County Community Redevelopment Agency Board
to give direction to the Bayshore Gateway Triangle CRA Executive Director to negotiate
specific real estate purchase contracts on parcels within the CRA area and return to the CRA
Board for approval.
Prepared by David L. Jackson on December 4,2008
Executive Director, Bayshore Gateway Triangle CRA
Page 1 of I
Agenda Item No. 14A
December 16, 2008
Page 4 of 10
-
COLLIER COUNTY
BOARD OF COUNTY COMMISSIONERS
Item Number:
Item Summary:
14A
Meeting Date:
For the Collier County Community Redevelopment Agency Board to give direction to the
Bayshore Gateway Triangle eRA Executive Director concerning three proposed purchase
contracts for multiple real estate parcels within the Bayshore Drive and Gateway Triangle
portions of the eRA area. (David Jackson, Executive Director, Bayshore Gateway Triangle
CRA)
12/16/2008 900:00 AM
Prepared By
David Jackson
Community Redevelopment
Agency
Executive Director
Date
Bayshore~Gateway Redevelopment
1214120081:37:08 PM
Approved By
David Jackson
Executive Director
Date
Community Redevelopment
Agency
Bayshore~Gateway Redevelopment
12/4120083:01 PM
Approved By
-
Marjorie M. Student~Stirling
County Attorney
Assistant County Attorney
County Attorney Office
Date
1214120083:17 PM
Approved By
OMB Coordinator
Administrative Services
Applications Analyst
Information Technology
Date
1214120084:31 PM
Approved By
Mark Isackson
County Manager's Office
Budget Analyst
Office of Management & Budget
Date
1215/2008 12:08 PM
Approved By
County Attorney
Assistant County Attorney
County Attorney Office
Date
Jeff Klatzkow
1215120082:52 PM
Approved By
James V. Mudd
County Manager
Date
Board of County
Commissioners
County Manager's Office
12171200810:34 PM
file:l/C:\AgendaTest\Export\ I 18-December%20 16,%202008\14.%20A1RPORT%20AUTH... 12/1 0/2008
Agenda Item No. 14A
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