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Agenda 01/28/2025 Item #16B 4 (Approve Purchase and Sale Agreement with Bigi & Bigi)1/28/2025 Item # 16.B.4 ID# 2024-2277 Executive Summary Recommendation to approve and execute a Purchase and Sales Agreement and Addendum with Bigi & Bigi, LLC, the purchase of 14 out of 18 condominium office units within the Court Plaza III building situated on 1.17 improved acres on Airport Road South, adjacent to the Government Center, for the Community & Human Services Division, and authorize any associated Budget Amendments. (This item is a companion to 16.B.3) OBJECTIVE: To increase the County's office space holdings by acquiring additional property, located adjacent to the Government Center, in order to reduce long-term rental expenses. This acquisition will provide the County with greater control over its office space, improve operational efficiency, and generate cost savings. CONSIDERATIONS: The Community & Human Services Division (CHS) currently occupies six office suites—201, 202, 203, 204, 205, and 206—at the Court Plaza III building located at 2671 Airport Road South. The 14 units that are the subject of this purchase, units 101, 102, 103, 104, 106, 201, 202, 203, 204, 205, 206, 301, 303, and 305, are owned by Bigi & Bigi, LLC (“Seller”). Unit 105 is owned by a separate entity and is proposed to be purchased under a separate companion agenda item. The majority of the units in the building, including those occupied by CHS, are being offered for sale. The property includes an 18,600-square-foot office condominium facility, with 16,000 square feet of office space. The building sits on 1.17 acres and provides 76 parking spaces. CHS is currently renting the entire second floor of the building. As outlined in the Fiscal Impact Statement, purchasing the majority of the building will help reduce future rental costs. CHS plans to purchase approximately 12,281 square feet of office condo space, which is zoned C3. The County’s standard Purchase and Sale contract has been used. Notable terms of the Purchase and Sale Agreement (“Agreement”) include: • Purchase Price: $3,350,000 (14 units) or the average value determined by two appraisers, if lower. However, Seller may rescind the Agreement if the Board does not approve a purchase price of $3,350,000. • Closing: 180 days from the date of the Agreement. • Leases: The Seller must prepare and deliver all necessary documents to assign the leases to the County no later than closing. (The leases are included as backup to this item.) • Association Funds: Seller must ensure that $152,000 held by the Association is transferred to the County. • 3 rd party Inspection Period: 120 days from the date of the Agreement. • Other: Purchase of 14 units is also with overall consideration of purchase included in Agenda Item 16.B.8. The Seller requires that the County execute an Addendum to the Purchase and Sale Agreement 1031 Exchange Clause / Broker Disclosure, which requires the County to cooperate with the Seller to designate the conveyance of the property as a tax-deferred like-kind exchange of real property under the Internal Revenue Code Section 1031. This may require the property to be conveyed to an intermediary qualified to facilitate the exchange. This will not require the County to incur any additional expenses. This space is expected to meet the needs of CHS for the next 20 years and will also provide additional office space for the County as leases for current tenants expire. The purchase will result in an estimated annual savings of $100,800 for CHS administrative operations. Purchasing the building for $3,350,000 presents a financially advantageous alternative to renting, as it will immediately save $108,000 annually in rental costs currently paid by CHS. Over time, the purchase strengthens the County’s financial position by reducing reliance on external leases, securing a long-term asset, and yielding significant cost savings that support operational sustainability. Additionally, acquiring this building will support the co-location of all housing, human, and veteran services, providing residents with easy access to services in a single, convenient location. FISCAL IMPACT: The cost of appraisals, title work and inspections is $22,375. Sources of funding provided below. Ongoing CHS will also receive $1,409.76 / mo. in Condominium Association fees, and $276.77 / mo. in ‘reserve’ fees Page 462 of 3681 1/28/2025 Item # 16.B.4 ID# 2024-2277 from the owner (Joseph D. Stewart, P.A.) of units # 302, 304 & 306. At Closing, any funds currently held by the Association (the 3 Wells Fargo accounts held in Court Plaza III Condominium Association, Inc.’s name) in the amount of approximately $152,000.00 (the “Association Funds”) shall be transferred to the Purchaser or to the designated County account, as directed by the Purchaser. Additionally, CHS will receive the following Rent / Lease payments from the following tenants, as outlined below. Revenue will be deposited in the Community & Human Services Grant Support Fund (1806), any unrestricted revenue will be used to offset the annual general fund contribution. The total acquisition amount is not to exceed $3,372,375.00, which includes 2 appraisals, an inspection, title policy, recording, search, and closing costs too. Unit(s) Tenant Monthly Rent Annual Rent Annual Rent Increase Lease Start Date Lease End Date SQFT of Unit 101, 103 Department of Juvenile Justice (State of Florida) $5,217.03 $62,604.30 3% 12/01/2024 11/30/2029 2,013 102 Denise Jackson $2,380.00 $28,560.00 3% 1/01/2025 6/30/2028 1,122 104, 106 Law Offices of James W. Chandler, P.A. $2,364.77 $28,377.24 3.5% 1/01/2017 2/01/2026 2,240 301, 303 Law Offices of Lisa C. Mead, P.A. $3,506.04 $42,072.48 3% 4/01/2021 3/31/2027 1,860 On November 12, 2024, the division recognized $1,612,320.62 in interest earned from ERAP1, ERAP2, CLFRF, and LATCF programs. These funds were transferred to reserves within the Grant Support Fund (1806). A budget amendment is required to allocate $1,487,320.62 of that from these reserves to Projects 33734, 33761, 33765, and 33843. The remaining $125,000 will stay in reserve for future grants requiring matching contributions. Additionally, the CCAP Project (33699) within the Grant Support Fund (1806) has $536,166.38 in remaining local funding available to support this acquisition. Historically, CCAP local funding has been used to secure offsite rental space for staff delivering housing programs. Utilizing these funds will enable staff to continue providing community assistance programs. Further, $1,348,888 in Local Tribal Consistency Fund (LATCF) funding within the Community & Human Services Grant Fund (1835), Project 33843, is available for this acquisition. LATCF funds serve as a general revenue enhancement program, supporting eligible uses such as general government operations, personnel costs, and administrative facilities. These funds currently support lease agreements for office space at Court Plaza III. GROWTH MANAGEMENT IMPACT: This item is consistent with the Growth Management Plan and the Space Master Plan. LEGAL CONSIDERATIONS: This item is approved as to form and legality and requires a majority vote for approval. -SAA RECOMMENDATIONS: That the Board: Page 463 of 3681 1/28/2025 Item # 16.B.4 ID# 2024-2277 1)Approve the attached Purchase and Sale Agreement and Addendum and accepts the Warranty Deed once it has been received and approved by the County Attorney’s Office; 2) Authorize the Chairman to execute the Agreement and any and all other County Attorney’s Office approved documents related to this transaction; 3) Authorize the County Manager or designee to prepare related vouchers and Warrants for payment; and 4) Direct the County Manager or designee to proceed to acquire this parcel, to follow all appropriate closing procedures, to record the deed and any and all necessary documents to obtain clear title to this parcel, and to take all reasonable steps necessary to ensure performance under the Agreement and authorize any necessary budget amendments. PREPARED BY: Grant Cox, Property Acquisition Specialist ATTACHMENTS: 1. Executed Purchase Agreement, and Purchase Agreement Addendum 2. Map of subject property 3. BA Fund 1806 Courtplace purchase- Reserves 4. Existing Leases Page 464 of 3681 Page 465 of 3681 Page 466 of 3681 Page 467 of 3681 Page 468 of 3681 Page 469 of 3681 Page 470 of 3681 Page 471 of 3681 Page 472 of 3681 Page 473 of 3681 Page 474 of 3681 Page 475 of 3681 Page 476 of 3681 Page 477 of 3681 Page 478 of 3681 Page 479 of 3681 Page 480 of 3681 Page 481 of 3681 Page 482 of 3681  2671AirportRd.S. Page 483 of 3681