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Agenda 12/16/2008 Item #14A Agenda Item No. 14A December 16, 2008 Page 1 of 10 EXECUTIVE SUMMARY For the Collier County Community Redevelopment Agency Board to give direction to the Bayshore Gateway Triangle CRA Executive Director concerning three proposed purchase contracts for multiple real estate parcels within the Bayshore Drive and Gateway Triangle portions of the CRA area. OBJECTIVE: For the Collier County Community Redevelopment Agency Board (CRAB) to give direction to proceed with the purchase of certain real property within the Bayshore Gateway Triangle CRA, and to authorize the Executive Director to successfully negotiate acceptable real estate purchase contracts and return to the CRA Board for contract approval. BACKGROUND: Florida Statute 163.370 - "Powers; counties and municipalities, community redevelopment agencies" - delineates other powers necessary to carry out the purchase and sale of property, On October 28, 2008, the CRA Board gave direction to the Executive Director to: . Coordinate with all appropriate entities to secure and structure a new loan from a commercial lender selected via RFP to purchase certain real property within the Bayshore Gateway Triangle CRA; and . Negotiate real estate contracts in the CRA area and return to the CRA Board for approval. CONSIDERATIONS: The following two real estate purchase proposals, comprising three separate contracts, are presented to the CRA Board for consideration. Purchase of any or all parcels will be contingent on successful acquisition of additional credit through a bank loan. 1. Bavshore Drive. At their regularly scheduled meetings on FebI:Uary 7, 2006 and June 6, 2006, the Bayshore Gateway Triangle CRA Local Advisory Board unanimously voted to pursue a 2,51 acre vacant parcel on Bayshore Drive (Exhibit A), After two years of discussions, the owners are willing to accept an offer to purchase from the CRA. On June I, 2006 the land was appraised at $1,280,000 and on October 15,2008, the land was appraised at $660,000 by the same appraiser. 2. Mini-Triangle. At their December 2, 2008 meeting, the Local Advisory Board unanimously recommended that the CRA Board purchase eight (8) parcels from two owners in the 14 acre tract of land known as the mini-triangle of the larger Gateway Triangle area of the CRA. This area is identified in the CRA Redevelopment Plan as a potential site for a catalyst redevelopment project (Exhibit B). It is also identified in the Growth Management Plan (GMP) Future Land Use Element (FLUE) Bayshore/Gateway Triangle Redevelopment Overlay as a catalyst project site "... eligible for the maximum density of 12 units per acre, with development standards as contained in the Gateway Triangle Mixed Use District zoning overlay...". ~. Agenda Item No. 14A December 16, 2008 Page 2 of 10 Within the 14 acre mini-triangle catalyst site, the following properties are available for consideration by the CRA Board (Exhibit C): . The 1.66 acre parcel known as the former Burger King site was under contract by the CRA in 2007 for the appraised value of $3,500,000; however the CRA failed to close on the site due to the Strand v Escambia County law suit, which has been resolved and no longer a factor. In October 2008 the site was reappraised for the CRA by two independent appraisers at a value of $2,500,000 and $2,550,000. The owner's representative stated that the owner is willing to accept an offer to purchase from the CRA. . One owner has assembled seven (7) parcels in the center of the mini-triangle comprising approximately 6.29 acres. On March 10, 2008, the assembled parcels were appraised for the owner at $9,700,000 'as-is" or $8,250,000 "as though vacant". The CRA Executive Director has commissioned two appraisals for the CRA to determine the current value. The owner has delivered the CRA a Seifer's Letter olIn tent dated November 10, 2008, offering the CRA all seven parcels for a price of $7,500,000 plus buyer-paid documentary stamps and 2008 ad valorem taxes for an estimated total of $7,620,948. JUSTIFICATION: Bavshore Drive. Acquisition of the 2.51 acre parcel on Bayshore Drive (Exhibit A) would add the out-parcel portion of the original 17 acre purchase and complete the assemblage of approximately 20 acres for the proposed Bayshore catalyst development project. This parcel also provides the future site development with 815 linear feet of road frontage. Mini-Triangle. CRA acquisition of eight (8) targeted parcels (7.95 acres) within the 14 acres of the mini-triangle would provide the opportunity to be an integral part of any future assemblage of the remaining land and potentially leverage public-private partnerships with adjacent land owners. If the CRA owns and controls over 50% of the land area, then the CRA has great influence over what is built there (density and intensity), what the resulting uses are and the ultimate design, Due to the current economic state of affairs, there is great potential for centrally located parcels to be sold to separate owners for individual business use. If any of them are sold, then the likelihood a comprehcnsive assembly and redevelopment of the entire 14 acre site would be marginalized and the mini-triangle's uses would remain as is indefinitely. Redevelopmcnt of the cntire mini-triangle will achieve many of the objectives statcd in the CRA Redevelopment Plan, and significantly increase the tax base. An added bonus to the acquisition of all eight (8) parcels is that the existing structures currently bring in $445,000/yr in lease revenues to partially service the CRA debt, with the potential to lease the vacant buildings and incrcase the debt service. FISCAL IMPACT: The purchase of the three sites would be approximately $10,780,948 plus associated closing costs, building inspections and environmental surveys. Current site lease revenues are $445,000/yr to partially service the debt. Projected CRA tax increment revenues are sufficient to cover projected debt service payments on a maximum $20M line of credit draw. The current $5,901,000 debt would be absorbed by the new bank loan, and if all Agenda Item No. 14A December 16, 2008 Page 3 of 10 three sites are purchased, the new debt would be approximately $16,681,948, leaving $3,318,052 of available credit. GROWTH MANAGEMENT IMPACT: Policy 4.7 of the Future Land Use Element of the Growth Management Plan states that redevelopment plans may be developed for specific areas within the County, including the Bayshore Gateway Triangle CRA. The 14 acre mini- triangle site is identified in the Growth Management Plan (GMP) Future Land Use Element (FLUE) Bayshore/Gateway Triangle Redevelopment Overlay as a catalyst project site "... eligible for the maximum density of 12 units per acre, with development standards as contained in the Gateway Triangle Mixed Use District zoning overlay.. .". LEGAL CONSIDERATIONS: This item has been reviewed and approved by the County Attorney's Office, is not quasi-judicial, requires no ex parte disclosure, and requires only a simple majority vote for approval, and is otherwise legally sufficient for Board action. (MMSS) RECOMMENDATION: For the Collier County Community Redevelopment Agency Board to give direction to the Bayshore Gateway Triangle CRA Executive Director to negotiate specific real estate purchase contracts on parcels within the CRA area and return to the CRA Board for approval. Prepared by David L. Jackson on December 4,2008 Executive Director, Bayshore Gateway Triangle CRA Page 1 of I Agenda Item No. 14A December 16, 2008 Page 4 of 10 - COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS Item Number: Item Summary: 14A Meeting Date: For the Collier County Community Redevelopment Agency Board to give direction to the Bayshore Gateway Triangle eRA Executive Director concerning three proposed purchase contracts for multiple real estate parcels within the Bayshore Drive and Gateway Triangle portions of the eRA area. (David Jackson, Executive Director, Bayshore Gateway Triangle CRA) 12/16/2008 900:00 AM Prepared By David Jackson Community Redevelopment Agency Executive Director Date Bayshore~Gateway Redevelopment 1214120081:37:08 PM Approved By David Jackson Executive Director Date Community Redevelopment Agency Bayshore~Gateway Redevelopment 12/4120083:01 PM Approved By - Marjorie M. Student~Stirling County Attorney Assistant County Attorney County Attorney Office Date 1214120083:17 PM Approved By OMB Coordinator Administrative Services Applications Analyst Information Technology Date 1214120084:31 PM Approved By Mark Isackson County Manager's Office Budget Analyst Office of Management & Budget Date 1215/2008 12:08 PM Approved By County Attorney Assistant County Attorney County Attorney Office Date Jeff Klatzkow 1215120082:52 PM Approved By James V. Mudd County Manager Date Board of County Commissioners County Manager's Office 12171200810:34 PM file:l/C:\AgendaTest\Export\ I 18-December%20 16,%202008\14.%20A1RPORT%20AUTH... 12/1 0/2008 Agenda Item No. 14A December 16, 2008 Page 5 of 10 .... om lid I , IIII I ] 4iI IIIUd I d~ i H~.IJ~ Ii 8 => -I (", '"' ~ '-~~_.."... f\ --' , '. 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