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Agenda 01/22/2019 Item #11E01/22/2019 EXECUTIVE SUMMARY Recommendation to consider an offer to sell the Golden Gate Golf Course in the amount of $28,000,000 to the County; and should the Board wish to proceed, authorize the County Manager, coordinating with the County Attorney, to draft and sign a Purchase and Sale Agreement prior to February 1, 2019. OBJECTIVE: To provide an update to the Board and seek guidance on the offer to sell the Golden Gate Golf Course to the County. CONSIDERATION: During the Communications portion of the June 12th Regular Board meeting, the Board directed the County Attorney to contact counsel to the owners of the Golden Gate Golf Course and attempt, through mediation, to bring back a proposed purchase price for the Golf Course. The parties are currently involved in litigation over the procedures to be followed in a rezoning application for this parcel, which is currently in the appeal stage. On October 24, 2018, representatives from County Attorney’s office and County Manger’s office participated in a conference call with the owner of the golf course, Mr. Vocisano. Both parties felt it would be beneficial to continue the dialogue. On January 9, 2019, the County Attorney and the Deputy County Manager met with Mr. Vocisano with his counsel present. Mr. Vocisano expressed his willingness to work with the County with the understanding that time is of the essence. Mr. Vocisano expressed that he has pending private offers and ongoing litigation with the County and does not wish to be in protracted discussions. Following the meeting an offer letter (attached) was delivered outlining the terms with a stipulation that a Purchase and Sale Agreement be signed prior to February 1, 2019. Oral argument before the 2nd District Court of Appeals is scheduled for February 8, 2019. Through prior Board authorization, the County Attorney’s office has already secured one appraisal. Per statute, the initial appraisal is exempt from public disclosure until either an option contract is executed or until 30 days after termination of negotiations. Should the Board wish to proceed, a second appraisal would be required. Collier County Ordinance 2007-28 provides in relevant part as follows: 2. The County Manager, or his designee, must submit for Board consideration at least two (2) real estate appraisals in support of any fee simple or easement purchase in excess of $2,500,000. Both of the appraisals shall be prepared by licensed, state-certified independent real estate appraisers hired to work on the behalf of the County. The Golden Gate Golf Course is comprised of approximately 167 acres of cleared property primarily functioning as a public golf course. The property was considered in the sports complex siting report due to its large acreage and proximity to the highway. The property is unique in size and configuration having significant frontage on CR-951 and dense residential abutting and within its boundaries. The County has no immediate plans to develop the property and would consider operating the golf course as a municipal facility as an interim use. It should be noted that staff, through prior Board direction, has evaluated a municipal golf course scenario and identified that it would not be cost neutral and in fact require a general fund subsidy. That said, the primary reason to consider the acquisition would not be for a permanent municipal golf course. There are relatively few, if any, large cleared open tracts within the urban area with direct access to a county arterial and near a major highway. The property could be develope d for a number of public uses in the future such as: VA Nursing Home, Workforce Housing, Government Buildings, Active Sports Facilities, and Passive Green Space. The size of the parcel could accommodate almost all the potential 11.E Packet Pg. 323 01/22/2019 uses identified and others. Should the Board wish to proceed, the County Attorney’s office would work with the owner’s counsel to draft a Purchase and Sale Agreement consistent with the offer letter and closing subject to a valid second appraisal, due diligence site inspection, title review, and a satisfactory secondary agreement that identifies the shared use components of the golf course and abutting commercial properties. To move forward, the Board would need to authorize the County Manager to sign the Purchase and Sale Agreement prior to February 1, 2019 and authorize the due diligence phase. Alternatively, the Board could deny the offer outright and continue litigation or make a counter offer. FISCAL IMPACT: Spending $28 million to acquire this property without knowing the ultimate end land use will require some form of debt. The most expeditious approach is issuing Commercial Paper (CP) with the provision that this short-term debt is subsequently folded into a long-term open market competitive bond issue when debt is issued for projects like new storm-water capital and phase two of Big Corkscrew Regional Park. If the use continues to be a golf course or other recreation use, primary repayment source for debt issued will be park impact fees. Loans from the General Fund to vari ous impact fee trust funds exceed $100 million since FY 2005 because impact fees are insufficient to cover debt service. It is strongly advised that this situation be avoided within the Parks Impact Fee Trust Fund which to date has not received loans from the General Fund. Historically, parks impact fees have generated on average about $8 million plus annually since FY 2015. Current regional park impact fee debt service is $3 million annually and expires in FY 2026. Commercial Paper can be secured within 60 days and drawing $28 million will likely cost in the range of $1.8 million to $2.3 million annually depending upon the amount of principle designated for retirement annually. Further issuing $30 million in long term debt to complete phase two of the Big Corkscrew regional facility will require annual debt service in the range of $2.3 million. Together, it is estimated that annual debt service for all projects discussed, at least until FY 2026, would be about $7.3 million depending upon when the CP is retired, and the amount of CP principal paid. This leaves about $700K of park impact fee available in the near term to cash and carry future regional park projects. If the economy slows and park impact fee revenue declines appreciably, then the General Fund will be lending the Parks Impact Fee Trust Fund money to pay debt service. It is unknown at this time if any of the purchase could be funded by the Sales Tax proceeds as the VA Nursing Home and Workforce Housing categories have not been allocated or refined enough to supplant a portion of the funding needed for the purchase. It is estimated that a second appraisal, site inspection, including a detailed ALTA survey, and title commitment will cost approximately $60,000. GROWTH MANAGEMENT IMPACT: None. LEGAL CONSIDERATIONS: This item is approved as to form and legality and requires majority vote for Board approval. -SRT RECOMMENDATION: That the Board of County Commissioners consider an offer to sell the Golden Gate Golf Course in the amount of $28,000,000 to the County; and should the Board wish to proceed, authorize the County Manager, coordinating with the County Attorney, to draft a Purchase and Sale Agreement prior to February 1, 2019; and authorize the County Manager to sign the agreement, order a second appraisal, and direct his staff to complete due diligence that satisfies the collective will of the Board or that the Board provide alternative guidance. Prepared by: Nick Casalanguida, Deputy County Manager 11.E Packet Pg. 324 01/22/2019 ATTACHMENT(S) 1. Letter - Collier County - Re_ Golden Gate Golf Course - Vocisano (PDF) 2. Golden Gate Golf Course Map (PDF) 3. Golden Gate Golf Course Map Adjacent Parcels (PDF) 11.E Packet Pg. 325 01/22/2019 COLLIER COUNTY Board of County Commissioners Item Number: 11.E Doc ID: 7797 Item Summary: Recommendation to consider an offer to sell the Golden Gate Golf Course in the amount of $28,000,000 to the County; and should the Board wish to proceed, authorize the County Manager, coordinating with the County Attorney, to draft and sign a Purchase and Sale Agreement prior to February 1, 2019. (Nick Casalanguida, Deputy County Manager) Meeting Date: 01/22/2019 Prepared by: Title: Operations Analyst – County Manager's Office Name: Geoffrey Willig 01/16/2019 9:25 AM Submitted by: Title: County Manager – County Manager's Office Name: Leo E. Ochs 01/16/2019 9:25 AM Approved By: Review: County Attorney's Office Scott Teach Additional Reviewer Completed 01/16/2019 12:03 PM Office of Management and Budget Valerie Fleming Level 3 OMB Gatekeeper Review Completed 01/16/2019 9:31 AM Budget and Management Office Mark Isackson Additional Reviewer Completed 01/16/2019 10:46 AM County Attorney's Office MaryJo Brock Level 3 County Attorney's Office Review Skipped 01/16/2019 11:08 AM County Manager's Office Nick Casalanguida Level 4 County Manager Review Completed 01/16/2019 2:21 PM Board of County Commissioners MaryJo Brock Meeting Pending 01/22/2019 9:00 AM 11.E Packet Pg. 326 11.E.1 Packet Pg. 327 Attachment: Letter - Collier County - Re_ Golden Gate Golf Course - Vocisano (7797 : Golden Gate Golf Course Purchase) 11.E.1 Packet Pg. 328 Attachment: Letter - Collier County - Re_ Golden Gate Golf Course - Vocisano (7797 : Golden Gate Golf Course Purchase) 11.E.2 Packet Pg. 329 Attachment: Golden Gate Golf Course Map (7797 : Golden Gate Golf Course Purchase) 41stST SW2 5 t hAVES W 39th ST SWCollier BLVDG o l d e n G a t e P K W Y Zoning: E Zoning: C-2 Zoning: C-3 Zoning: C-4 Zoning: RMF-6-GGDCCO Zoning: RT Zoning: GC Golden Gate Golf Course Golf Course Parcel (167 .44 ac) Zon ing PAO Parcels Map Date: 1/14/2019 Growth Management DepartmentOperations & RegulatoryManagement Division I 0 100 20050 Feet 11.E.3 Packet Pg. 330 Attachment: Golden Gate Golf Course Map Adjacent Parcels (7797 : Golden Gate Golf Course Purchase)