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Agenda 11/12/2013 Item #11B11 /12/2013 11. B. EXECUTIVE SUMMARY Recommendation to consider an offer to purchase privately held property located east and adjacent to the Collier Area Transit Operations Facility at 8300 Radio Road. OBJECTIVE: To provide the Davis and Radio LLC an opportunity to present an offer to sell an 8.39 acre tract of land to the County for future needs. CONSIDERATIONS: The property in question is a triangle shaped property located at the point where Radio Road intersects with Davis Boulevard and is directly east and adjacent to the Collier Area Transit Operations Facility at 8300 Radio Road. The property is 8.39 acres in size and is currently zoned Commercial Intermediate District (C -3). The C -3 Zoning District permits most government uses, including Transit and Transportation Service, as a right without any additional zoning review and approval. Because of its triangle shape the property does pose some challenges for access for commercial use. In June 2012, the Davis and Radio LLC, offered to sell the property to the County for $3,000,000 outright; to finance the sale of the property to the County amortized over 15 years; or to lease the property under a 10 year term. Staff reviewed the offer and while the site might have long term strategic value to the County for various uses, the offer was declined given the economic downturn and diminishing resources. In September of 2013, the owner's representative contacted the county again with a revised offer of $2,500,000. The offer for sale was formalized in a letter dated October 11, 2013 (enclosed) with the following options: A. Qption 1 The property is being offered to the County to purchase outright for $2,500,000. B. Q2tion 2 Purchase price of $2,500,000 with Seller financing to be paid as follows: 1. $250,000 deposit due at signing of contract. A total of $625,000 paid by the County at closing. 2. The balance of $1,875,000 is to be financed by the Seller at an interest rate equal to the current commercial rate which is between 5 and 6 percent at this time. Principal and interest would be paid monthly to the Seller. The County will execute a note which will be secured by a mortgage on the property. The monthly payments will be amortized over 10 years. 3. Any improvements to the property made by the County must be approved by the Seller. Subsequent to the review of the initial offer, Real Property Management's staff appraiser prepared a valuation of the property on April 10, 2013 and concluded the value should not exceed $1,829,000. Ordinance No. 2007 -28 requires the County to obtain one (1) appraisal for acquisitions in excess of $1,000,000 and two (2) appraisals for acquisitions in excess of $2,500,000. Appraisal(s) shall be prepared by licensed, state - certified, independent real estate appraisers. Should the Board wish to further pursue the acquisition of this property, staff would Packet Page -565- 11 /12/2013 11. B. need to obtain the required appraisal. It is anticipated that it will take up to 30 days to complete the appraisal for an estimated cost of not more than $2,000. Staff is currently soliciting bids to make several improvements to the current site at 8300 Radio Road. Among these include renovating Building #1 (adding an elevator to enhance access and permanent bathrooms); installing a permanent fueling island; constructing a pedestrian canopy and adding a bus wash facility. Additionally, there are future plans to extend Building #2. The completion of these improvements will effectively serve to "build out" the property. A copy of the current site plan is enclosed. For that reason and because the subject parcel is located adjacent to the existing CAT Operations Center, staff believes the property has strategic long term value to the County. The following County agencies and departments have expressed interest in the property for the following potential uses: Fleet Management I New bus maintenance building to replace I 5 years aging building at Radio Road Fleet Management/ CAT Compressed Natural Gas Fueling Facility for 5 years County vehicles and potentially the public CAT Park and Ride Facility for commuters 5 years Bureau of Emergency Disaster response staging area 2 - 3 years Services Transportation Services Storage mast arms and other equipment) Immediate Road Maintenance Storage Immediate Purchasing Dedicated storage for surplus Immediate equipment/items Collier County Sheriffs Combined criminal evidence and crime scene 3 — 5 years Office I investigation processing and storage center Supervisor of Elections I New office and storage facility 13 - 5 years FISCAL IMPACT: If the Board has interest in acquiring the parcel at the appropriate price and terms, the County can take advantage of its excellent corporate credit rating and avail itself of several financing options which are much more attractive than the financing arrangements proposed currently by the property owner. For example, the County could access, through its membership, commercial paper through from the Florida Local Government Finance Commission. Other alternatives include inter -fund loans and direct bank financing. LEGAL CONSIDERATIONS: This item has been reviewed by the County Attorney, raises no legal issues at this time, and requires majority vote for direction. -JAK GROWTH MANAGEMENT UVWACT: None Packet Page -566- 11 /12/2013 11. B. RECOMMENDATION: For the Board of County Commissioners to consider the offer from the Davis Boulevard and Radio Road LLC for the purchase of 8.39 acres adjacent to the current CAT Operations facility and to direct staff accordingly. Prepared By: Michelle Arnold Director Alternative Transportation Modes Packet Page -567- COLLIER COUNTY Board of County Commissioners Item Number: 11.11.6. 11/12/2013 11. B. Item Summary: Recommendation to consider an offer to purchase privately held property located east and adjacent to the Collier Area Transit Operations Facility at 8300 Radio Road. (Steve Carnell, Interim Public Services Administrator) Meeting Date: 11/12/2013 Prepared By Name: AlonsoHailey Title: Operations Analyst, Public Service Division 10/29/2013 2:41:25 PM Approved By n Name: AlonsoHailey Title: Operations Analyst, Public Service Division Date: 10/29/2013 3:00:54 PM Name: CamellSteve Title: Purchasing/General Services Director Date: 10/31/2013 6:44:04 AM Name: FinnEd Title: Senior Budget Analyst, OMB Date: 10/31/2013 12:32:12 PM Name: StanleyTherese Title: Management/Budget Analyst, Senior,Office of Manage Date: 10/31/2013 3:04:15 PM Name: KlatzkowJeff Title: County Attorney Date: l l /l /2013 10:52:56 AM Name: IsacksonMark Title: Director -Corp Financial and Mgmt Svs,CMO Date: 11/4/2013 11:18:37 AM Packet Page -568- 11 /12/2013 11. B. Packet Page -569- 11 /12/2013 11. B. Michael D. Gentzle Writer's Email: Of Counsel: ryovanovich @cyklawfu -m.com Kenneth R. Johnson October 11, 2013 Steve Carrell Interim Public Services Administrator 3339 Tamiami Trail East, Suite 214 Naples, Florida 34112 -5361 RE: Davis & Radio Road, LLC Dear Mr. Carnell, As we have been discussing, my client is willing to sell the property it owns adjacent to the County's CAT property located along Radio Road. The property is zoned C -3. My client is willing to consider the following options: A. Option 1 - Outright purchase for $2,500,000. B. Option 2 - Purchase price of $2,500,000 with seller financing to be paid as follows: 1. $250,000 deposit due at signing of contract. A total of $625,000 paid by the County at closing. 2. The balance of $1,875,000 is to be financed by the Seller at an interest rate equal to the current commercial rate which is between 5 and 6 percent at this time. Principal and interest would be paid monthly to my client. The County will execute a note which will be secured by a mortgage on the property. The monthly payments will be amortized over 10 years. the Seller. 3. Any improvements to the property made by the County must be approved by Packet Page -570- COLEMAN, YOVANOVICH & KOESTER, P.A. ATTORNEYS AT LAW Kevin G. Coleman NORTHERN TRUST BANK BUILDING Linda C. Brinkman Richard D. Yovanovich 4001 TAmLkmi TRAIL NORTH Matthew M. Jackson Edmond E. Koester SUITE 300 Jeffrey J. Beihoff William M. Burke NAPLES, FLORIDA 34103 Harold J. Webre Gregory L. Urbancic 239435 -3535 Caroline M. Magliolo Matthew L. Grabinski 239- 435 -1218 FACSIMILE Charles A. B. Thomson Craig D. Grider www.cyklawfirm.com David Kerem Michael D. Gentzle Writer's Email: Of Counsel: ryovanovich @cyklawfu -m.com Kenneth R. Johnson October 11, 2013 Steve Carrell Interim Public Services Administrator 3339 Tamiami Trail East, Suite 214 Naples, Florida 34112 -5361 RE: Davis & Radio Road, LLC Dear Mr. Carnell, As we have been discussing, my client is willing to sell the property it owns adjacent to the County's CAT property located along Radio Road. The property is zoned C -3. My client is willing to consider the following options: A. Option 1 - Outright purchase for $2,500,000. B. Option 2 - Purchase price of $2,500,000 with seller financing to be paid as follows: 1. $250,000 deposit due at signing of contract. A total of $625,000 paid by the County at closing. 2. The balance of $1,875,000 is to be financed by the Seller at an interest rate equal to the current commercial rate which is between 5 and 6 percent at this time. Principal and interest would be paid monthly to my client. The County will execute a note which will be secured by a mortgage on the property. The monthly payments will be amortized over 10 years. the Seller. 3. Any improvements to the property made by the County must be approved by Packet Page -570- 11 /12/2013 11. B. October 8, 2013 2 There may be other options my client may consider. Please let me know if you have any additional questions. Sincerely, Richard D. YooLoovich Es . q Cc: Robert Morande Packet Page -571- 11/12/2013 11.B .9 k t gg 9E IR AS led bR 66 da �ffii mdm 9� ®�3° b X49 1��2G�pgg9� } E / ar { d9a� 'a Lei a ao A O n.. V) W .,8 �t U Sao W o g �. + cn � a Ih > W 00 0 QZ3 Q_ Q I- .._. Z O ay .. U =f;414 - y1�� 1Ly8/� �.y d'• y a �� .eat -o-ner �wnc (999 '8*3) OV06 olao �[ NOLL03S 3Nn WHON Packet Page -572- 1 � 1 1 0 0 U W i$ S i J o 0 zd I x'511 -LL s� mmmm■� fn > j g2 0 TI o 2 AN Vlm z U)m E50 ;� 9� 0 to ---------- RADIO ROAD (CR836) f ,max z V II as 11 /12/2013 11. B -- -- 19d 12 yc