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Agenda 11/18/2008 Item #10K Agenda Item No. 10K November 18, 2008 Page 1 of 10 Executive Summary Recommend approval from the Board of County Commissioners to purchase the Port of the Islands Marina excluding the 140 boat slips for $5,488,000 which includes $4,750,000 cash at closing and a $738,000 seller property donation and approve all necessary budget amendments. Obiective: For the Board of County Commissioners to approve the purchase of the Port of the Islands Marina less the 140 boat slips for $5,488,000 that includes $4,750,000 cash at closing and a $738,000 seller property donation. Considerations: - Purchase ofthe marina to include: . Approximately 2.4 acres of commercially zoned waterfront land currently used for boat trailer and car parking; . An oversized single boat launch ramp; . 15,466 SF of submerged land (boat launch expansion area) and the necessary easements to allow for temporary boat tie-off during loading, unloading, fueling and pump-out operations; . Non-exclusive use of a 94 space parking facility; . Approximately l.46 acres of corrunercially zoned upland property; . A fueling facility; . A 7,400 SF marina building that houses a ship store, bathrooms, offices and a Manatee & 10,000 Islands educational center on approximately 1.4 acres of commercially zoned waterfront property. . Enough excess square footage within the marina building in which to build a permanent Ochopee Fire Station with some future EMS capabilities. Purchase Price of this facility is based on a County appraised value of $5,488,000. The county will pay $4,750,000 cash at closing and receive a propelty donation value of$738,000 from the sellers at closing. Incorporated into the sales agreement will be the following stipulations: I. The County will have the option to purchase any or all of the fixtures, furniture & equipment (FF&E) and inventory within Ship's Store and Marina Building at sellers cost. 2. The Seller and or his assigns will be allowed the use of an office or offices for a period of nine (9) years without charge. The exact location of this office within the facility will be mutually agreed upon, 3. The Seller and or his assigns will be allowed to retain the exclusive use of two (2) loading and unloading parking spaces each, for Docks A, B, and C (6 total spaces). 4. A phase one environmental audit 5. Closing will occur on or before 12/31/08 Real Property Management's staff appraiser has obtained two independent appraisals on the property associated with this purchase. Pricing presented reflects the lower of the County appraisals. Agenda Item NO.1 OK November 18, 2008 Page 2 of 10 Operatinl! Expenses: An analysis by staff from the unaudited accounting records of the Port of the Islands marina operation estimates that operating revenue from this facility can be expected at $455,694 for the first full year of operations. Operating expenses are expected to be approximately $412,062. This represents a yearly surplus of approximately $43,000 without the sale of alcohol, tobacco or lottery tickets. If alcohol, tobacco or lottery tickets were sold at the marina store then revenues in excess of expenses are expected to be approximately $90,000. By comparison, revenues in excess of expense from both the Caxambas Pass and Cocohatchee marinas without alcohol, tobacco or lottery tickets are approximately $80,000 annually at each facility. County Attornev Findinl!s: The purchase will be subject to the parties' approval of a purchase and sale agreement. The agreement will include a due diligence provision. The County Attorney's Office will work with staff to develop and review applicable legal documents. - CMG Fiscal Impact: Funding for this project will be from the following sources: . $3,400,000 from Keywaydin Beach & Boat Access project 80040; Parks and Recreation Capital Improvement Fund 306. . $605,000 from Reserves within the Ochopee Fire Control District fund l46. . $183,000 from Reservcs within the Ochopee Fire Impact Fee fund 372. . $585,000 from South Florida Water Management District. Building renovations required by the Ochopee Fire Department are currently under review. A preliminary budgetary estimate for renovations is expected not to exceed $85,000 which will be paid from the Ochopee Fire Department reserves. Should the actual costs exceed $85,000; the district will obtain direction from the Board on how to proceed. Collier County responsible closing cost for this transaction will be approximately $40,000 and be shared between the Ochopee Fire District Fund and Parks and Recreation Fund 306. Environmental Underl!round Tank Considerations: Federal Department of Environmental Protection (FDEP) will require that the existing single walled underground fuel tank be replaced by December 31, 2009. In addition to tank replacement, soil and in some cases water testing will be required to evaluate if any site contamination has occurred. Contamination must be remediated. Additionally, there may be post-remediation monitoring of wells near public water supply wells or bodies of water. The Seller has offered to provide $50,000 in escrow for environmental cleanup. Growth Manal!ement Impact: Depending on the approach and direction provided by the Board of County Commissioners the impact to the Growth Management Plan may vary. However, any approach taken will be consistent with the Conservation and Coastal Management Element Policies supporting Objective 10.3 that address developed coastal barriers and shorelines. Agenda Item No. 10K November 18, 2008 Page 3 of 10 Staff Recommendations: Recommend approval from the Board of County Commissioners to purchase the Port of the Islands Marina excluding the 140 boat slips for $5,488,000 which includes $4,750,000 cash at closing and a $738,000 seller property donation and approve all necessary budget amendments. Prepared by: Gary McAlpin, CZM Director c....."" Page 1 of 1 Agenda Item No. 10K November 18, 2008 Page 4 of 10 COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS Item Number: Item Summary: 10K Meeting Date: Recommend approval from the Board of County Commissioners to purchase the Port of the Islands Marina excluding the 140 boat slips for $5,488,000 which includes $4.750,000 cash at closing and a $738,000 seller property donation. (Gary McAlpin, Coastal Zone Management Director) 11/18/2008 g:OOOO AM Approved By Kathy Carpenter Executive Secretary Date Public Services Public Services Admin. 11/7/20084:29 PM Approved By Marla Ramsey Public Services Administrator Date Public Services Public Services Admin. 11/10/20082:33 PM Approved By Colleen Greene Assistant County Attorner Date County Attorney County Attorney Office 11/10/20084:41 PM Approved By Susan Usher Senior Management/Budget Analyst Date County Manager's Office Office of Management & Budget 11/1212008 1 :25 PM Approved By James V. Mudd County Manager Date Board of County Commissioners County Manager's Office 11/12/20084:22 PM file://C:\AgendaTest\Export\] ] 6-November%20l 8,%202008\l 0.%20COUNTY%20MAN... ] II] 2/2008 .------ Agenda Item NO.1 OK November 18, 2008 Page 5 of 10 Good morning my name is Ray Russell, I live in the district represented by commissioner Henning. I am here today li'8P.'.tl!'S~ntina the Naples Fishing Club. OFFICE OF THE COUNTY MANAGER ACTION The Naples Fishing Club is a non-profit organizatieA tAat I3r.evidcs a forum for people interested in saltwater fishing in Southwest Florida to learn from each other and develop friendships. We also support efforts to preserve the aquatic environment of Southwest Florida. The reason we have decided to address you today is to encourage you to develop a long range objective to increase the access to the waters of southwest Florida for fishermen and boaters. The key words are long range. An area of greatest need for public access is the waters south of Marco Island. There is no public access to the great fishing areas of 10,000 islands particularly out of Everglade City, Chokoloskee and Port of the Islands. Our county has a very large number of boaters and fishermen that would benefit from increased access. We are aware that in the current economic situation the county has lost some significant funding but setting an objective cost nothing. However if it is included in your planning documents it alerts all county employees to be on the look out for a good opportunity. We understand that there currently is an opportunity at the Port of the Island We have not undertaken an analysis of the options related to this opportunity so we cannot make a specific recommendation. However we suspect there will be over time very few chances to purchase property on the water south of Marco Island. Therefore we do recommend you give this opportunity a full evaluation. In economic times such as the current one that we are experiencing is a time when you should find "good deals". .:.-.;; ve:.. ~~. tUtu ( ~M" . i -trc /) '."'W. e than~u f?r. th~_O~ to ~..~k;some inpu1J"Iu-~-&~. ~J...t; "'~~;;,'0i2".~'-C ~~f).-A . 1:)L.-;0 1i5_^v-~' 4)..LJ~' ~ ~.:.L-j/~. ~.... /.L.tjJ.!r ~.~/:L~.L,-/J;cL--/R~. .B~~~-M~L? ~1F -' (Y(;:u-t~/<,jJlo.GII;J(AU1/Z 11~~~1~~ . _~'. L~10t Ji!r.;I!~<-~;ftJu~\LL,j1t~:Yi32id~.'- . _~ ~.cyJ~- \., ',',', ~ . I ~ \,' ~ " ~ f ~ " " !. : .~. ~ : : :i ; ~: t ! ; Iii! i j .fill' I; ,. .. l Ii., i J ,!, ~ Ii. \, f \' , ; . , ',!, ;,-'It- ' .L ~ -. ~ ;: .~, ~ l~i t!'~ r",i ..1 ,".~ , ,~:, '" " . !11 .-.., ;,;,: ;-.; ~ :::f. UJ "',' " .; ...... . ~~" ", ", '- ..., '" ",.., '] :! o 0-1 =>- ::o:~~ ;::gE-~ ~i:~ tll<< "'-0 <::0:- ~~g;; ""E--1 ...."'u. >-<v;- E-tlltll Z....-1 =>Ot:l. 0""< U""Z - !Xl ~ ::> ... -' '" U < '" 0 z_- ...,J-\ClCC:: ......1::I:....-IO t:&:ItnN~ v::d.i::....-tt;., V)tnX~ ;::I~Ot:l::l O::......1CC1....J ::;;~c:i~ .c::Zo.:Z 0;-1 l' 1;0 >.:t tft ('J .,.., .,.., '.:1' 1-":' Agenda Item No. 10K November 18. 2008 Page 7 of 10 Port of'the Islands 4fA~~ , I NAPLES,),' FLORIDA /' .~ Mr. Gary McAlpin Di rector Coastal Zone Management Department 3300 Santa Barbara Blvd Naples, Florida 34116 Tuesday, November 11, 2008 Re: Port of the Islands Marina - Naples, Florida Dear Gary. ln response to our conversation yesterday November 10, 2008 with respect to potential above normal eosts associated with the removal and replaeement of the existing fuel tank system, we would like to recommend the follo\\ing: We would be \\illing to place $50,000 in an escrow account at closing in order to pay for any eX1:raordinary costs that would be above and beyond the normal eosts associated \\ith the remo\'al and replacement of the existing fuel tank system. The unused portion of the escrow would be returned to us on or before 12/31/09. Please contact me \\ith anv questions you may have, Sincerely, (\.9. \ Christopher Shucart Managing Member The Islands Marina, LLC . Agenda Item No. 10K November 18, 2008 Page 8 of 10 Port of the Islands Community Improvement District Severn Trent Services, Management Services Division 210 North University Drive, Suite 800 - Coral Springs, Florida 33071 Telephone: (954) 753-5841- Fax: (954) 796-0623 November 7, 2008 ~ Collier County Board of County Commissioners 3301 East Tamiami Trail Naples, FL 34112 RE: Port of the Islands Marina Dear Commissioners: I am the attorney for the Port of the Islands Community Improvement District. The District's Board of Supervisors held its regularly scheduled meeting on October 17, 2008. There was discussion regarding the proposed county purchase of the Port of the Islands Marina property. The Board expressed its support for the proposed purchase if portions of the land are slated for use as a fire station and there is no negative impact on CID facilities and finances. The Board feels that this purchase will be good for the community for several reasons. First, public marina slips and access to boat launch ramps are limited in the county. This property ha~ both. Second, the proposed purchase would potentially limit the intensity and density of future development on that property. Most importantly, the proposed purchase could provide a location for the construction of a fire station serving this region of the county. The District has been trying for several years to procure a suitable location for a fire station within the Port of the Islands. There has been a substantial increase in the number of homes within the community and in the number of full time residents. The Board supports any effort to provide fire protection and life safety services to the area. The Board did express concerns. Adequate parking must be provided and traffic flows on the District's roads must not be impaired. Proper planning and design should address these issues. You should be aware that there are annual operation and maintenance assessments and utility assessments against this property. There are no debt service assessments against the property and all capital debt attached to the property has been retired. TIle amount of the assessments is set from year to year by the Board. The current assessment amount can be obtained by calling Mr. Cal Teague at 239-694-3310, extension l09. Board of County Commissioners November 7, 2008 Page 2 Agenda Item NO.1 OK November 18, 2008 Page 9 of 10 The District appreciates the Board of County Commissioner's support in past efforts to improve the Port of the Islands. The District's Board of Supervisors is available to discnss this n;Kltter and other issues at a noticed public hearing at any time. s,1t (ilL' Daniel'H. Cox District Counsel ~~~-., !'~!'.~''li, ../,.~ Port of the Islands ~~ , '. NAPLES)! FLORIDA ..""~ Agenda Item NO.1 OK November 18, 2008 Page 10 of 10 Purchase of the entire Marina facility less 140 boat slips Approximately 2.4 acres of commercially zoned waterfront land currently used for boat trailer and car parking along with some long term boat storage; an ovcrsized single boat launch ramp; 12,755 Sqft of submerged land (boat launch expansion area); non-exclusive use of a 94 space parking facility; approximately 1.46 acres of commercially zoned upland property suitable for a future Ochopee Fire Station; a fueling facility; 7,400 SF marina building that houses a ship store, bathrooms, offices and a Manatee & 10,000 Islands educational center on approximately 1.4 acres of commercially zoned waterfront property. Purchase Price (County Appraised Value): $5,488,000 Less: Cash paid by County on closing: ($4,750.000) Value of property donated to the County by Sellers: $738,000 It is our understanding that when appropriate, the County attorney will prepare a purchase agreement incorporating thc following items: I) The County will have the option to purchase any or all ofthe fixtures, furniture & equipment (FF&E) and inventory within Ship's Store and Marina Building at Sellers cost. 2) The Seller and or his assigns, will be allowed the use of an office or offices for a period of nine (9) years without charge. The exact location to be mutually agreed upon. 3) The Seller and or his assigns will be allowed to retain the exclusive use of two (2) loading and unloading parking spaces each, for Docks A, B, and C (6 total spaces). 4) Closing will occur on or before 12/31/08