Agenda 06/23/2009 Item #16G 4
Agenda Item No. 16G4
June 23, 2009
Page 1 of 4
EXECUTIVE SUMMARY
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Recommendation for the Community Redevelopment Agency (CRA) to approve the
termination of the real estate contract executed on April 28, 2009 to purchase an
assemblage of commercial properf)-' located in the center of the Gateway mini-triangle; and
authorize the Executive Director to negotiate new contracts to secure and facilitate the
purchase of the properties and return to the CRA Board for approval.
OBJECTIVE: Recommendation for the Community Redevelopment Agency (CRA) to approve
the termination of the real estate contract executed on April 28, 2009 to purchase an assemblage
of commercial property located in the center of the Gateway mini-triangle; and authorize the
Executive Director to negotiate new contracts to secure and facilitate the purchase of the
properties and return to the CRA Board for approval.
BACKGROUND: On April 28, 2009 the CRA Board approved a contract for the purchase of
an assemblage of seven (7) commercial properties (Exhibit A) located in the center of the
Gateway mini-triangle comprising approximately 6.29 acres and authored the CRA Chairman to
execute the contract and coordinate with the appropriate entities to secure financing to complete
the sale. The Board's motion for approval stipulated the CRA staff to bring the final sales
contract back to the Board prior to the end of the due diligence period for their review and final
approval.
A due diligence clause was set-forth in the contract to provide the CRA time to secure financing
and determine if all applicable building, land use, environmental and other codes, having an
effect on the property and such other matters necessary to determine the feasibility of the
property for the intended use was obtained prior to dispersing any funds.
CONSIDERATIONS: The due diligence clause set-forth in the contract states "In the event the
Buyer (the CRA) does not notify the Sellers that it is exercising its' option to cancel the contract
on or before July 2,2009, the Buyer shall be deemed to have waived such right of cancellation".
ISSUE #1, Securing Financing:
The CRA has been offered a term loan Commitment Letter for a loan that will adequately
address the CRA's funding needs. However, all required enabling documents/resolutions
required to pledge CRA Tax Increment Funds as the loan repayment source and obtaining Board
approval will not be completed prior to the expiration of the due diligence period.
ISSUE #2, Contamination:
In accordance with the contract the Seller is required to remove the gas tanks and pumps from
one of sites that was a former gas station located at 2068 Davis Boulevard and provide a
satisfactory "Environmental Tank Closure Certificate" on or before the end of the due diligence
period. Initially, a Limited Phase II Environmental Site Assessment was conducted on this site
and ground water samples indicated no dissolved gasoline constituents in the groundwater.
After the tank removal process some contaminant leakage was discovered and further testing is
.- being performed to determine the level and degree of the cleanup required. As a result, the
Sellers cannot provide a satisfactory "Environmental Tank Closure Certificate" on this site prior
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Agenda Item No. 1684
June 23, 2009
Page 2 of 4
to the expiration of the due diligence period. However, to date there has been no evidence that
the other six (6) parcels are affected. Based on their discussions with the environmental entities
the Seller's are confident the site of concern is minimally contaminated and can be rehabilitated
for suitable development, but more time is required than initially anticipated and permitted under
the terms of the existing contract.
The Sellers, CRA staff and attorneys all concur that the termination of the existing contract and
entering into two separate contracts is the most effective way to address all the issues at hand.
One contract would be prepared lor the purchase of the six parcels that do not have
contamination issues and a separate contract would be prepared for the purchase of the other
parcel to identify the Seller as the party responsible for the contamination and insure all
environmental issues are addressed by the Seller in accordance with the Department of
Environmental Protection Agency regulations prior to closing. The contracts would be reviewed
and approved by the County Attorney's Office and brought to the CRA Board for approval.
FISCAL IMPACT: There is no fiscal impact with this action.
LEGAL CONSDERA TIONS: The Executive Summary been reviewed by the County
Attorney's Office for legal sufficiency. This item is not quasi-judicial and as such, ex parte
disclosures are not required. A majority vote of the CRA is necessary for CRA action. --HFAC
GROWTH MANAGEMENT IMPACT: There are no growth management impacts.
RECOMMENDATION: That the Collier County Community Redevelopment Agency:
· Approve the termination of the real estate contract executed by the CRA Chairman on
April 28, 2009.
· Authorize the Executive Director to negotiate new contracts to secure and facilitate the
purchase of the properties and return to the CRA Board tor approval.
Prepared by: Jean Jourdan, on June 10, 2009
Project Manager, Bayshore Gateway Triangle CRA
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Item Number:
Item Summary:
Meeting Date:
Page 1 of I
Agenda Item No. 1684
June 23, 2009
Page 3 of 4
COLLIER COUNTY
BOARD OF COUNTY COMMISSIONERS
16G4
Recommendation for the Community Redevelopment Agency (CRA) to approve the
termination of the real estate contract executed on April 28, 2009 to purchase an assemblage
of commercial property located in the center of the Gateway mini-triang.le; and authorize the
Executive Director to negotiate new contracts to secure and facilitate the purchase of the
properties and return to the CRA Board for approval. (Jean Jourdan, CRA Project Manager)
6/23/2009900.00 AM
Prepared By
Jean Jourdan
Project Manager
Date
Community Redevelopment
. Agency
Bayshore-Gateway Redevelopment
6/11/20093:46:44 PM
Approved By
Jean Jourdan
Community Redevelopment
Agency
Project Manager
Date
Bayshore-Gateway Redevelopment
6/11/20093:21 PM
Approved By
David Jackson
Executive Director
Date
Community Redevelopment
Agency
Sayshore-Gateway Redevelopment
6/11/20094:11 PM
OMS Coordinator
Date
Approved By
OMS Coordinator
County Manager's Office
Office of Management & Budget
6/12/20098:35 AM
Approved By
Jeff Klatzkow
County Attorney
County Attorney
County Attorney Office
Date
6/12/200910:07 AM
Approved By
Mark Isackson
County Manager's Office
Budget Analyst
Office of Management & Budget
Date
6/15/2009 2:46 PM
Approved By
Leo E. Ochs, Jr.
Board of County
Commissioners
Deputy County Manager
Date
County Manager's Office
6/15/20097:18 PM
file://C :\AgendaTest\Export\ 132-J une%2023, %202009\ 16. %20CONSENT%20AGENDA \ 1... 6/17/2009
Agenda Item No. 16G4
June 23, 2009
Page 4 of 4
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