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Agenda 05/28/2024 Item #16B 6 (Agreement for purchase 5.83 acres of unimproved land required for the replacement of the GG5 Water COntrol Structure)05/28/2024 EXECUTIVE SUMMARY Recommendation to approve an Agreement for the purchase of 5.83 acres of unimproved land (Parcel 113FEE) required for the replacement of the GG5 Water Control Structure and authorize necessary Budget Amendment (Project No. 50180). Estimated Fiscal Impact: $640,400. _____________________________________________________________________________________ OBJECTIVE: To acquire 5.83 acres of unimproved land needed for the GG5 Water Control Structure (Weir) replacement (the “Project”). CONSIDERATIONS: Collier County is seeking to purchase two tracts of land (Parcel 113FEE) that, when combined, will form the site needed for the Project. The weir is nearing its life expectancy. The new weir will provide greater operational flexibility and flood protection. This project is being undertaken as part of the South Florida Water Management District’s (the District) obligation to operate and maintain the Golden Gate Main Canal under a Cooperative Agreement between the District (on behalf of the Big Cypress Basin) and Collier County, dated October 13, 2000, as amended. The District has agreed to reimburse the County fully for all of the costs of acquiring Parcel 113FEE and will also pay for all of the costs of constructing the weir. The unimproved tracts, both owned by Helmut and Lynda Hittinger as Trustees of the Helmut Hittinger Revocable Trust dated April 29, 1991, are located on the northwest corner of the Golden Gate Main Canal and 20 th Avenue NE. The parcels are adjacent to each other, and each parcel is 2.917 acres in extent and rectangular in shape. The attached appraisal report prepared by Collier County Review Appraiser, Lisa Barfield, dated April 12, 2024, estimates the market value for both parcels to be $623,800. Collier County staff has negotiated a proposed purchase price of $636,400, including all costs and attorney fees, subject to approval by the Board of County Commissioners (the “Board”). If these parcels are not acquired by negotiation, they will have to be condemned. Should condemnation become necessary, the County will be required to pay attorney fees and expert witness fees according to sections 73.091 and 73.092, Florida Statutes, plus other expenses related to condemnation. Staff accordingly recommends that the Board approve the Agreement, as a better result is not expected if parcel 113FEE is condemned. This item is consistent with the Collier County strategic plan objective to plan and build public infrastructure and facilities to effectively, efficiently, and sustainably meet the needs of our community. FISCAL IMPACT: A budget amendment is required to reallocate funds within the Stormwater CIP Fund (3050) to Project 50180 in order to cover the negotiated compensation amount of $636,400 and estimated closing and recording fees of $4,000. The new weir will be operated and maintained by the District under the Cooperative Agreement referenced above. Therefore, the County will not incur any maintenance costs arising from this item. GROWTH MANAGEMENT IMPACT: This Project is in accordance with the goals, objectives, and policies of all applicable sections of the Stormwater Management Sub-element and the Conservation and Coastal Management Element of the Growth Management Plan. LEGAL CONSIDERATIONS: This item has been reviewed by the County Attorney. No one involved is happy with paying more than appraised value, but if the County needs to acquire this property by eminent domain, the costs of acquisition will be significantly greater than the proposed compensation, and could lead to substantial project delays and costs. With that noted, this item is approved as to form and legality and requires majority vote for approval. -JAK RECOMMENDATION: . Approve the attached Agreement and authorize the Chairman to execute same on behalf of the Board; . Accept the conveyance of parcel 113FEE and authorize the County Manager, or her 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 Agreement to close the transaction; and 16.B.6 Packet Pg. 908 05/28/2024 . Authorize the County Manager or her designee to take the necessary measures to ensure the County’s performance in accordance with the terms and conditions of the Agreement. . Authorize necessary budget amendment. Prepared By Ronald Thomas, Property Acquisition Specialist I, Right-of-Way Acquisition, Transportation Engineering Division. ATTACHMENT(S) 1. Purchase and Sale Agreement 113FEE (PDF) 2. Aerial - Parcel 113FEE (PDF) 3. Appraisal - DOV 04-11-24 - 113FEE (PDF) 16.B.6 Packet Pg. 909 05/28/2024 COLLIER COUNTY Board of County Commissioners Item Number: 16.B.6 Doc ID: 28890 Item Summary: Recommendation to approve an Agreement for the purchase of 5.83 acres of unimproved land (Parcel 113FEE) required for the replacement of the GG5 Water Control Structure and authorize necessary Budget Amendment (Project No. 50180). Estimated Fiscal Impact: $640,400. Meeting Date: 05/28/2024 Prepared by: Title: Property Aquisition Specialist I – Transportation Engineering Name: Ronald Thomas 05/10/2024 8:51 AM Submitted by: Title: Division Director - Transportation Eng – Transportation Engineering Name: Jay Ahmad 05/10/2024 8:51 AM Approved By: Review: Transportation Engineering Robert Bosch TMSD Reviewer Completed 05/10/2024 10:56 AM Road Maintenance Marshal Miller TMSD Reviewer Completed 05/11/2024 8:08 PM Transportation Engineering Lisa Taylor TMSD Reviewer Completed 05/13/2024 6:26 AM Capital Project Planning, Impact Fees, and Program Management Eric Ovares TMSD Reviewer Completed 05/13/2024 7:00 AM Transportation Engineering Jay Ahmad TMSD Reviewer Completed 05/13/2024 9:09 AM Transportation Management Services Department Jeanne Marcella Transportation Management Services Department Completed 05/13/2024 9:22 AM Road Maintenance Ellen Sheffey TMSD Reviewer Completed 05/13/2024 9:35 AM Transportation Management Operations Support Tara Castillo TMSD Reviewer Completed 05/13/2024 9:55 AM Capital Project Planning, Impact Fees, and Program Management Beth Johnssen TMSD Reviewer Completed 05/13/2024 10:05 AM Transportation Management Services Department Trinity Scott Transportation Completed 05/13/2024 10:21 AM County Attorney's Office Derek D. Perry Level 2 Attorney Review Completed 05/16/2024 11:23 PM Office of Management and Budget Debra Windsor Level 3 OMB Gatekeeper Review Completed 05/17/2024 8:25 AM County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 05/17/2024 8:50 AM Community & Human Services Maggie Lopez OMB Reviewer Completed 05/17/2024 10:49 AM County Manager's Office Amy Patterson Level 4 County Manager Review Completed 05/17/2024 12:59 PM Board of County Commissioners Geoffrey Willig Meeting Pending 05/28/2024 9:00 AM 16.B.6 Packet Pg. 910 16.B.6.a Packet Pg. 911 Attachment: Purchase and Sale Agreement 113FEE (28890 : 50180-113FEE Hittinger) 16.B.6.a Packet Pg. 912 Attachment: Purchase and Sale Agreement 113FEE (28890 : 50180-113FEE Hittinger) 16.B.6.a Packet Pg. 913 Attachment: Purchase and Sale Agreement 113FEE (28890 : 50180-113FEE Hittinger) 16.B.6.a Packet Pg. 914 Attachment: Purchase and Sale Agreement 113FEE (28890 : 50180-113FEE Hittinger) 16.B.6.a Packet Pg. 915 Attachment: Purchase and Sale Agreement 113FEE (28890 : 50180-113FEE Hittinger) 16.B.6.a Packet Pg. 916 Attachment: Purchase and Sale Agreement 113FEE (28890 : 50180-113FEE Hittinger) AERIAL – PARCEL 113FEE CANAL EASEMENT ACQUISITIONS PROJECT NO. 50180 / PARCEL 113FEE 16.B.6.b Packet Pg. 917 Attachment: Aerial - Parcel 113FEE (28890 : 50180-113FEE Hittinger) SHORT FORM APPRAISAL - COLLIER COUNTY TRANSPORTATION ENGINEERING DIVISION PROJECT NAME: Canal Easement Acquisitions #50180 CLIENT: Collier County ROW Acquisition, Transportation Engineering SUBJECT PROPERTY IDENTIFICATION: Parcel Reference: 113FEE Legal Descriptions: GOLDEN GATE EST UNIT 25 S 1/2 OF TR 114 2.92 AC AND GOLDEN GATE EST UNIT 25 N 1/2 OF TR 114 2.91 AC Tax Folio #s: 37870640003 and 37870641002 Owner: HELMUT HITTINGER REVOCABLE TRUST Property Rights Being Valued: Fee simple estate. Last Property Transfers: 6/26/1991 (Deeds 1627-722 and 1627- 723) DESCRIPTION OF SUBJECT PROPERTY: The subject property consists of two parcels; each has an area of 2.917-acres (385 ft x 330 ft). The total acreage of both parcels is 5.83 acres with approximately 300 ft of frontage on 20th Ave NE. Each parcel also has 330ft of frontage along the Golden Gate Main Canal. The subject property is located east of Wilson Blvd N in the Golden Gate Estates area of greater Naples. Both lots are unimproved and heavily wooded. INTENDED USE OF THE APPRAISAL: A drainage easement on the subject property is necessary for the Canal Easement Acquisition - Project #50180. This property is currently for sale and SWFMD and Collier County ROW Acquisition are considering the purchase in its entirety. This valuation will be used to determine the market value of the subject property and to negotiate a purchase price to propose to the Board of County Commissioners. MARKET VALUE DEFINED: The most probable price, as of a specified date, in cash, or in terms equivalent to cash, or in other precisely revealed terms, for which the specified property rights should sell after reasonable exposure in a competitive market under all conditions requisite to a fair sale, with the buyer and seller each acting prudently, knowledgeably, and for self-interest, and assuming that neither is under undue duress. SCOPE OF WORK: To estimate market value of real property interest using the sales comparison approach. Complete cost or income approaches only if necessary for credible assignment results. Analyze data collected through public records of Collier County, and the Naples Area Board of REALTOR® Multiple Listing Service. HYPOTHETICAL CONDITIONS AND EXTRAORDINARY ASSUMPTIONS: Hypothetical Conditions: None. Extraordinary Assumptions: The appraiser did not inspect the subject property on the date of value. The appraiser is relying on information obtained through MLS Data and public records of Collier County. Limiting Conditions: The information and opinions contained in this appraisal set forth the appraiser’s best judgment in light of the information available at the time of the preparation of this report. This appraisal was prepared for and is the property of Collier County Board of Commissioners. Reliance upon the appraisal for other uses is prohibited. PROPERTY HISTORY (AGREEMENTS OF SALE, OPTIONS, OR LISTINGS WITHIN 3 YEARS OF THE EFFECTIVE DATE): The subject property was listed on 10/19/2022 for $599,000 and the listing price was increased to $650,000 on 6/13/2023. The listing was terminated on 8/1/2023. The property was relisted at $650,000 on 9/29/2023. Interviews with the listing agent, Karl Hittinger, Managing Broker for TransAct Brokers Inc. informed that the property went under contract on 8/11/2023 for $650,000, just after the original listing termination. There was a subsequent price decrease to current list price of $649,000 on 1/23/2024. PRESENT ZONING: E-Estates FUTURE LAND USE: Estates-Residential HIGHEST AND BEST USE: Based upon an analysis of the subject property and its environs (with consideration given to zoning, physical aspects of the subject property, economic/market trends) the maximally productive use of the subject property would be for Estates-type single-family development. The highest and best use is to develop with one or two single-family residences. 16.B.6.c Packet Pg. 918 Attachment: Appraisal - DOV 04-11-24 - 113FEE (28890 : 50180-113FEE Hittinger) SHORT FORM APPRAISAL - COLLIER COUNTY TRANSPORTATION ENGINEERING DIVISION Page 2 THE SALES COMPARISON APPROACH TO VALUE: Recent sales of properties generally similar to the subject are identified and compared to the subject. Using the elements of comparison, the comparable properties’ sales prices are adjusted to produce value indications. The reconciliation of these value indications is used to provide an estimate of a single value indication or a range of values. DISCUSSION OF COMPARABLE SALES AND EXPLANATION OF ADJUSTMENTS: Sales of easily developable single-family home sites, with minimal wetlands, in the Golden Gate Estates area. These sales are used to estimate the value of the subject property using the Sales Comparison Approach: 1. 524/538 13th St SW, Naples Sale Price: $595,000 Sale Date: 07/2023 2. 1st St NW, Naples Sale Price: $300,000 Sale Date: 12/2023 3. 8th St NE, Naples Sale Price: $530,000 Sale Date: 08/2023 4. 22nd Ave NW, Naples Sale Price: $450,000 Sale Date: 04/2024 DISCUSSION OF COMPARABLE SALES AND EXPLANATION OF ADJUSTMENTS Sale #1 is a 5.0-acre Estates zoned parcel located on the east side of Wilson Blvd N in the Golden Gate Estates area of greater Naples. It is an unimproved wooded site. Normal topographical conditions for the area. The sales price reflects an underlying land value of $119,000/acre. The lot has 100% upland. This amount of wetlands is considered similar to the subject. The location on a rural road west of the subject is superior to that of the subject. Sale #2 is a 2.5-acre Estates zoned parcel located on the west side of Wilson Blvd in the Golden Gate Estates area of greater Naples. It is an unimproved wooded site. Normal topographical conditions for the area. The sale price reflects an underlying land value of $120,000/acre. The lot has 100% upland. This amount of wetlands is considered similar to the subject The site has frontage on a rural road only. The location is west of the subject and is considered superior. Sale #3 is a 5.15-acre Estates zoned parcel located on the west side of 8th St NE in the Golden Gate Estates area of greater Naples. It is an unimproved wooded site. Normal topographical conditions for the area. The sale price reflects an underlying land value of $102,900/acre. The lot has minimal wetlands and is similar to the subject. The lot, west of the subject, has inferior frontage on 8th St NW only, a busier two-lane road, and is not canal front. Overall, it is considered similar. Sale #4 is a 5.0-acre Estates zoned parcel located on the west side of Wilson Blvd in the Golden Gate Estates area of greater Naples. It is an unimproved wooded site. Normal topographical conditions for the area. The sale price reflects an underlying land value of $90,000/acre. The lot has 100% upland. This amount of wetlands is considered similar to the subject. The site is located west of the subject on a rural road only and is not canal front. It is overall considered similar. The sales cited show an underlying land value range of 90,000 to $120,000 per acre. Comparable 3 and 4 are located nearest the subject, however Sale #4 is a low indicator of value as it may have been influenced by motivated seller. Comparable Sale 3 is therefore weighted heavily because it is the most reliable indicator of value. An underlying land value of $107,000 per acre is supported with this market data. The subject property would therefore be valued at: $107,000/acre x 5.83 acres = $623,800 (rounded). DATE OF VALUE: 04/11/2024 REPORT DATE: 04/12/2024 MARKET VALUE ESTIMATE: $623,800 16.B.6.c Packet Pg. 919 Attachment: Appraisal - DOV 04-11-24 - 113FEE (28890 : 50180-113FEE Hittinger) SHORT FORM APPRAISAL - COLLIER COUNTY TRANSPORTATION ENGINEERING DIVISION Page 3 CERTIFICATE OF APPRAISAL I hereby certify that, to the best of my knowledge and belief, . . . • The statements of fact contained in this report are true and correct. • The reported analysis, opinions, and conclusions are limited only by the reported assumptions and limiting conditions, and are my personal, impartial, and unbiased professional analyses, opinions, and conclusions. • I have no present or prospective interest in the property that is the subject of this report. I am a full-time employee of the Collier County Board of County Commissioners. However, my employment is not contingent on advocating for Collier County • I have performed no services, as an appraiser or in any other capacity, regarding the property that is the subject of this report within the three-year period immediately preceding the agreement to perform this assignment. • My engagement in the assignment was not contingent upon developing or reporting predetermined results. • My compensation (neither salary nor bonus) is not contingent upon the reporting of a predetermined value or direction in value that favors the cause of my employer, the amount of the value estimate, the attainment of a stipulated result, or the occurrence of a subsequent event. • My analyses, opinions and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice. • An inspection of the subject property was not done. • No one provided significant real property appraisal assistance to the person signing this certification. _______________________ Lisa Barfield St. Cert. Gen. REA RZ 2862 Review Appraiser ROW Acquisition Transportation Engineering Division Collier County, Florida 16.B.6.c Packet Pg. 920 Attachment: Appraisal - DOV 04-11-24 - 113FEE (28890 : 50180-113FEE Hittinger)