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Agenda 07/09/2024 Item #16F1 (To consider two letters of intent for purchasing property that is no longer needed for an Emergency Medical Services Station and initiate the process to surplus and dispose of the properties)07/09/2024 EXECUTIVE SUMMARY Recommendation to consider letters of intent from Gargiulo Education Center, Inc., a not -for -profit organization, and from Up In Smoke, LLC, both proposing to purchase Collier County -owned property located on 16140 and 16144 Performance Way, and authorize and direct the County Manager or designee to take any and all action necessary to surplus the properties in accordance with the competitive bidding process set forth in Section 125.35, Florida Statutes, allowing all persons and entities to compete for purchase of the property. OBJECTIVE: To consider two letters of intent for purchasing property that is no longer needed for an Emergency Medical Services (EMS) Station and initiate the process to surplus and dispose of the properties. CONSIDERATIONS: On September 11, 2007, the Board of County Commissioners ("Board") approved the Purchase of Lots 11 and 12 in the North Naples Research and Technology Park ("Property") to house an EMS Facility. These lots are located on 16140 and 16144 Performance Way, respectively. The County acquired these parcels in 2007 at a purchase price of $674,896.86. The County's In -House Real Property Appraiser has estimated the property's value at $991,875. The property is no longer required for an EMS Station, as EMS intends to co -locate operations at a nearby fire station on U.S. Highway 41, which North Collier Fire District will construct. Gargiulo Education Center, Inc., a not -for -profit corporation ("Gargiulo"), submitted a Letter of Intent to Purchase the Property for the development of a new facility to house an after -school program and a community center to service at -risk latchkey and migrant students and poverty -level families in North Naples at no cost to the families. Gargiulo offers a price not to exceed $674,900 with a $10,000 deposit. The Letter of Intent is back-up to this item. Shortly thereafter, Up in Smoke, LLC submitted a Letter of Intent to purchase the Property for the development of a storage facility at a purchase price of $1,450,000 or the appraised value of the property, whichever is higher. Up in Smoke, LLC is a private foundation. The Letter of Intent is back-up to this item. This item seeks the Board's interest in selling the Property and direction as to how to proceed. There are three options with staff recommending the first: 1. Authorize surplus and competitive bidding: Approve the surplus of the properties and initiate the competitive bidding process set forth in Section 125.35, Florida Statutes. The competitive bidding process would be open to all persons and types of entities. 2. Ne2otiate with Gar2iulo: Authorize staff to negotiate with Gargiulo and develop a Purchase and Sale Agreement for future Board presentation in accordance with Section 125.38, Florida Statutes. Gargiulo Education Center, Inc., as a not -for -profit, qualifies for an exemption from the competitive bidding process outlined in Section 125.38, Florida Statutes, which allows the Board to, if satisfied that a property is not needed for County purposes, convey the property at a private sale for such price, whether nominal or otherwise, as such Board may fix, regardless of the actual value of such property to a not -for -profit corporation. The fact of such application being made, the purpose for which such property is to be used, and the price or rent shall be set out in a resolution duly adopted by such board. Such resolution would be presented to the Board with consideration of the Purchase and Sale Agreement at a future Board meeting. An advertisement is not required. If this option is chosen, and the purchase price reached is below fair market value, staff recommends that a deed restriction be placed on the Property, to ensure that it continues to serve migrant students and poverty - level families in North Naples at no cost to the families. 3. Take no action: Allow the Property to remain in the County's holdings with no immediate action taken. It is important to mention that the funding sources used for the acquisition impose restrictions mandating that the I Packet Pg. 794 07/09/2024 proceeds from the sale reimburse those accounts. FISCAL IMPACT: At this time there is no fiscal impact. A total of $875,000 in net commercial loan proceeds were used to fund the purchase of the land and the associated costs, which include title insurance, environmental assessments plus engineering fees for site development. This debt was later consolidated into a general government special obligation bond in the amount of $522,188. Annual debt service payments are expected to be completed in fiscal year 2034. As of FY 2024, the proportional loan outstanding is $340,269. Proceeds from the sale of the land will be deposited within General Fund (0001) as funding from the General Fund (0001) and County -wide Capital Fund (3001) has assisted the Emergency Management Services Impact Fee fund (3030) with the annual debt service payments for this property. GROWTH IMPACT: None at this time. LEGAL CONSIDERATION: This item is approved as to form and legality and requires a majority vote for approval. -SAA RIECOM NDATION: That the Board of Commissioner consider letters of intent from Gargiulo Education Center, Inc., a not -for -profit organization, and from Up In Smoke, LLC, both proposing to purchase Collier County -owned property located on 16140 and 16144 Performance Way, and authorize and direct the County Manager or designee to take any and all action necessary to surplus the properties in accordance with the competitive bidding process set forth in Section 125.35, Florida Statutes, allowing all persons and entities to compete for purchase of the property. Prepared by: Jennifer A. Belpedio, Manager, Facilities Division ATTACHM NT(S) 1. Gargiulo Education Center Letter of Intent (PDF) 2. Up in Smoke Letter of Intent (DOCX) 3. Warranty Deed for both properties fully executed (PDF) 4. BCC Approved Executive Summary for 9.1.07 (County Purchase) (PDF) 5. Rendering of Proposed Building - Conceptual (PDF) 6. Market Analysis (PDF) I Packet Pg. 795 07/09/2024 COLLIER COUNTY Board of County Commissioners Item Number: 16.17. 1 Doc ID: 28896 Item Summary: Recommendation to consider letters of intent from Gargiulo Education Center, Inc., a not -for - profit organization, and from Up In Smoke, LLC, both proposing to purchase Collier County -owned property located on 16140 and 16144 Performance Way, and authorize and direct the County Manager or designee to take any and all action necessary to surplus the properties in accordance with the competitive bidding process set forth in Section 125.35, Florida Statutes, allowing all persons and entities to compete for purchase of the property. Meeting Date: 07/09/2024 Prepared by: Title: Manager - Real Property — Facilities Management Name: Jennifer Belpedio 05/17/2024 10:26 AM Submitted by: Title: — Facilities Management Name: John McCormick 05/17/2024 10:26 AM Approved By: Review: Facilities Management Facilities Management County Attorney's Office County Attorney's Office Office of Management and Budget Community & Human Services County Manager's Office Board of County Commissioners John McCormick Director - Facilities Jennifer Belpedio Manager - Real Property Sally Ashkar Level 2 Attorney Review Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Debra Windsor Level 3 OMB Gatekeeper Review Maggie Lopez OMB Reviewer Ed Finn Level 4 County Manager Review Geoffrey Willig Meeting Pending Completed 05/17/2024 10:27 AM Completed 05/17/2024 10:29 AM Completed 05/20/2024 8:31 AM Completed 05/20/2024 11:02 AM Completed 05/20/2024 12:12 PM Completed 05/21/2024 10:43 AM Completed 07/01/2024 9:38 PM 07/09/2024 9:00 AM Packet Pg. 796 Collier County c/o Real Property Management 3335 Tamiami Tr. E Naples, FL 34112 Via Email to RE. Letter ofintent to Purchase 16140 + 16144 Performance Way Naples, FL 34110 This letter constitutes a non -binding letter of intent which outlines the general terms and conditions for the purchase and sale of 16140 + 16144 Performance Way Naples, Fl. 34110 Collier County, Florida, as further described on the attached Exhibit "A" ("Property". The intention of Gargiulo Education Center, Inc (GEC) intends to purchase and build a new facility to house a After School Program and a Community Center to service at risk, latchkey and migrant students and poverty level families in North Naples at no cost to the families. : SELLER: Collier County PURCHASER: Gargiulo Education Center, Inc. a 501(c)3 corporation PURCHASE REQUIREMENTS: The parties agree that they will each work in good faith to reach a final, negotiated purchase price not exceed $674,900. As the seller agrees to present all documentation on previous Collier County c/o Real Property Management 3335 Tamiami Tr. E. Naples, FL 34112 RE: Letter ofintent to Purchase 26140 + 16144 Performance Way Naples, FL 34110 This letter constitutes a non -binding letter of intent which outlines the general terms and conditions for the purchase and sale of 16140 + 16144 Performance Way Naples, FL 34110 Collier County, Florida, as further described on the attached Exhibit "A" ("Property") as follows: SELLER: Collier County PURCHASER: Gargiulo Education Center, Inc. a 501(c)3 corporation PURCHASE REQUIREMENTS: The parties agree that they will each work in good faith to reach a final, negotiated purchase price not to exceed $674,900. As the seller agrees to present all documentation on previous due diligence on the said property(s). The Agreement will be drafted by Buyer's counsel and submitted to Seller within fourteen (14) days after Buyer's receipt of an executed copy of this LOI. Thereafter, Buyer I Packet Pg. 797 1 and Seller will negotiate in good faith to finalize and execute the Agreement within sixty (60) days after Buyer's initial submission of the Agreement to Seller. PURCHASE PRICE- Not to exceed 674,900 at closing. INITIAL DEPOSIT: $10,000 Closing DATE: On or before 60 days from the effective date of contract. ESCROW AGENT: TBD TITLE AGENT: TBD NON -BINDING: The parties acknowledge and agree that this LOI is not intended to be and should not be construed as an executed agreement for sale and purchase of the Property. Best regards, SELLER SIGNATURE/DATE GARGIULO EDUCATION CENTER, INC. By FO 41±!d &'iQ� as CA ov— Date*Y2 I Packet Pg. 798 Ed Finn Jennifer Belpedio Collier County Government Dear Mr. Finn and Ms. BeLpedio, Please accept this letter as my offer to acquire the County vacant property adjacent to mine property at 16136 Performance Way in North Naples, Collier County. I offer a cash price of $1.450,000 or the appraised value of the property whichever is higher. I'vetaLkedto various real estate people in the area that specialize in land purchases. They estimate that the property is worth $30 per square foot. I paid $1 M for the adjacent property in 2019. The site is approximately 1.1 acres which determined by proposal. However, I will increase my offer if the County obtains an appraisal that establishes a higher value. My goal is to pay the fair market value for the land. Bank of America in San Francisco can verify that I have the resources for this purchase. MycontactBank officer is Kristen Boettger. Her email address is l(ristin.m.boettgerPbofa.com. Her phone number is 415 913 3434. 1 propose to acquire the property with my nonprofit charitable foundation, Up in Smoke LLC. which is registered in Florida. I can also purchase property personally if desired. The purchase is the same either way. The intended eventual use for the property is the same as the other users on Performance Way which is a storage facility that will not measurably impact traffic on adjacentOld4l. I will purchase this property any time that the Commission chooses. Please contact me with any questions or clarifcatiions. Best Regards, John J Gray 29090 Marcetto Way Naples, FL. 34110 206321 8801 I Packet Pg. 799 1 THIS WARRANTY DEED is made this A,* day of -91�77r*+IT14ft , 2007, by North Naples Golf Range, Inc., a Florida corporation, as Trustee of the SJG Land Trust, U/A dated 5/29/97, whose address is 15 8th Street, Unit A, Bonita Springs, Florida 34134-7455 (hereinafter referred to as "Grantor"), to COLLIER COUNTY, a political subdivision of the State of Florida, its successors and assigns, whose post office address is 3301 Tamiami Trail East, Naples, Florida, 34112 (hereinafter referred to as "Grantee"). WITNESSETH: That the Grantor, for and in consideration of the sum of Ten Dollars ($10.00) and other valuable consideration, receipt whereof is hereby acknowledged, hereby grants, bargains, sells, aliens, n remises, releases, conveys and confirms unto the Grantee, all that certain land situate in Collier County, Florida, to wit: t= SC11 ee.Attached Exhibit "A" which is incorporated herein by reference. C�o .-,%�ect4o easements, restrictions, and reservations of record. THIS IS NOT HOMESTEAD PROPERTY TOGETHER witk,;2� all the tenements, hereditaments, and appurtenances thereto belonging or in anywise appertaining.- J TO HAVE AND TO HO the same in fee simple forever. C11 AND the Grantor hereby c riahts with said Grantee that the Grantor is lawfully seized cn, C� of said land in fee simple; that 'brahtor has good right and lawful authority to sell and convey said land; that the Grantor he hv6 b4k, -11y warrants the title to said land and will defend the same against the lawful claims of r0ris whomsoever; and that said land is free of all encumbrances except as noted above. c� 4� czb IN WITNESS WHEREOF, the said day and year first above written. 4VViss (Signature) Name:WL�-�(�, B :P� (P�rint or Type) Witnes ignature) N a m e: S-�A' 1� lzc I'-,- T�- I WV (Print or Type) STATE OF FLQF�IDA COUNTY OF ( '�) I h4�� s signed and sealed these presents the Norffii-,.t Ae _,4ap Golf Range, Inc., a Florida T stee of the SJG corporatiqw-4s ru Land Trdk,�U/A dated 5/29/97 The foregoing WARRANTY DEED was acknowledged before me r , 2007 by James M. Goldie, President, on behalf of North V I n c. , a F 1-o rda- as Trustee of the SJG Land Trust Agreement, �r . so who is Per onally �knovwn t 'me or who has produced as identfflc�atlon.- --- -1 (affix notarial seal) (�igaqture of Nota r1t blic ak%W POLLER IfKL V--,YL r7� 0 WY CM400N # DD WW (Print Name of Notary Public) EORES: Jwuary 14, M NOTARY PUBLIC V5". - I BW40d T?VU WM PW* Lh*w"-s ommission #:(if any) this day of Naples Golf Range, U/A dated 5/29/97, FE 6 IQ Z Ge VW§0 j 44 M AU U, I -:j EXHIBIT "A" Lot 11, North Naples Research and Technology Park, according to the plat thereof recorded in Plat Book 41, page(s) 48-50, of the public records of Collier County, Florida; AND Lot 12,, NortIfyNaples Research and Technology Park, according to the plat thereof in Plat Book 41, page(s) 48-50, of the ublicrecordsof p Collier Cotm6�0-orida. -f Agenda Item No. 1 September 11, �a� Page 1 of 22 EXECUTIVE SUMMARY Recommendation to approve an Agreement for Sale and Purchase of Lots 11 and 12 in the North Naples Research and Technology Park to house an EMS Facility at a cost not to exceed $690,375, Project Number 551701, and to approve commercial paper for the purchase of the land and associated expenses, including preconstruction costs for design modifications and civil engineering, in the net amount of $875,000. OBJECTIVE: Recommendation to approve and execute the attached Agreement for Sale and Purchase (Agreement) between Collier County and North Naples Golf Range, Inc., a Florida corporation, as Trustee of the SJG Land Trust, U/A dated 5/29/97 (Seller). The Agreement is for the purchase of Lots 11 and 12, totaling .99 acre, in the North Naples Research and Technology Park located east of Old U.S. 41 in North Naples (Property). In addition, approval is requested for commercial paper to cover the cost of the land purchase, and associated expenses, including preconstruction costs for design modifications and civil engineering in the net amount of $875,000. CONSIDERATIONS: The public purpose of this transaction is to acquire property to accommodate the proposed EMS Facility. The need for this facility has been identified in the 2005 Annual Update and Inventory Report (AUIR). This is one of four stations initially identified in the 2005 AUIR, but has not yet been constructed. Negotiation with the Seller has been ongoing since October 2006. The Seller's asking price was $756,000; however, staff negotiated a purchase price of $674,896.86. The average of two (2) independent appraisals prepared for the County in February 2007 valued the Property at $682,500. Collier County's Real Estate Services' in-house appraiser determined the fair market value of the Property to be $690,000 in August 2007. Staff received favorable Environmental Site Assessments performed by Passarella and Associates and MacTec in February 2007. Collier County Pollution Control provided an environmental update in August 2007 and the Environmental Assessments are favorable. Location Maps of the parcels are attached. The attached Agreement has been reviewed and approved by the County Attorney's Office and the EMS Department. The Warranty Deed and all associated closing documents will be reviewed and approved by the County Attorney's Office and the EMS Department prior to closing. The proposed station at this location will house an existing unit that was added in FY 06 and which has been operating temporarily out of Station 21 (11121 Tamiami Trail East, Naples). It is anticipated that the same design will be used for this location as the design for the station at Heritage Bay. This design can accommodate up to two EMS units. Talks are underway with North Naples Fire Control and Rescue District to co -locate at this location as well as at the Heritage Bay location. An Executive Summary has been submitted for approval of a Lease Agreement with North Naples Fire Control and Rescue District for the Heritage Bay location. I Packet Pg. 802 1 Agenda Item No. 1 September 11, � Page 2 of 22 EXECUTIVE SUMMARY Agreement for Sale and Purchase Page 2 FISCAL IMPACT: The total cost associated with the land purchase should not exceed $690,375 ($674,896.86 for the property, $4,515 for the Environmental Site Assessments and update, and $10,963 for the two (2) appraisals, title commitment, title policy, and recording of the documents). A total of $875,000 in net commercial loan proceeds are needed to fund both the purchase of the land and the associated costs, which include title insurance, environmental assessments, appraisals, associated updates, and design modifications that may be required to accommodate the "model" facility for EMS/Fire on the property, plus civil engineering fees for site development and project management services. Net commercial paper loan proceeds of $875,000 are required for the above land purchase, costs of land acquisition, and pre -construction costs. With fees and pre -paid interest, a gross loan not to exceed $885,000 is recommended. Based on a 10 year commercial paper loan of $885,000, the estimated annual debt service payments for 2008 will be $140,800. The source of funds to pay off the commercial paper loan will be EMS impact fees. There will be an on -going expense of $401.06 per month for common expenses assessed by the North Naples Research and Technology Park Property Owners' Association. These will be paid out of EMS operating fund 490. GROWTH MANAGEMENT IMPACT: The project meets the recommendations of the FY 2006 AUIR. RECOMMENDATION: That the Board of County Commissioners approves the attached Agreement for Sale and Purchase; authorizes the Chairman to execute this Agreement on behalf of the County; authorizes staff to prepare related vouchers and Warrants for payment; directs the County Manager or his designee to proceed to acquire the Property, to follow all appropriate closing procedures, and to record the Warranty Deed, and any and all necessary documents to obtain clear title to the Property, in the Public Records of Collier County, Florida, and authorizes the issuance of a Commercial Paper Loan in the not -to -exceed amount of $885,000 and authorizes the execution of the attached Commercial Paper Loan Resolution. PREPARED BY: Gary Bigelow, Property Acquisition Specialist Real Estate Services/Facilities Management Department I Packet Pg. 803 1 A X rl t d MARKET ANALYSIS 0.99 acres +/- or 43,125 sf (2 lots) 16144 Performance Way assessment land value is $396,000. 16140 Performance Way assessment land value is $420,750. Assessment land value is $816,750 or $18.94sf round to $19.00sf The lots have entitlements PUD Zoning Market data indicates $23.00sf (very conservative) 2 lots (43,125sf) x $23.00sf = $991,875 dollars. I Packet Pg. 805 1 T" hoc, PUD Zoning f - PUD i Panntd unit D*�*IOOM At qGre -PI P�84-26-C,FL-67-31CA- "- 27C.Ili&SS PDA-K- 6C W84,1-zl-97 PUD- 67-3 l(j) 9 7.7 ' 4-14-98 "UD-07-3 1 (1) 99-28: 5- 2M2 PUDZ�O],AA-1%6� U) U) 21 E I Packet Pg. 806 1 16144 & 16140 VALUATION Performance Way ANALYSIS C C Cu 0 Cn E 0 w CD 00 Co L (n 21 Ca I Packet Pg. 807 1