Agenda 11/18/2008 Item #10H
Agenda Item No. 10H
November 18, 2008
Page 1 of 8
EXECUTIVE SUMMARY
Recommendation for the Board of County Commissioners (Board) to provide the
County Manager or his designee with guidance on making an offer for the Conservation
Collier A-List Hamilton property at a bargain sale offer made by the owner of $1 ,913,000
and to accept Conservation Collier Land Acquisition Advisory Committee (CCLAAC)
recommendations regarding existing structures.
OBJECTIVE: To have the BDard direct the County Manager or his designee to consider a
bargain sale offer for the 194-acre Hamilton parcel, to approve staff to make an offer Df
$1,913,000, and to accept CCLMC recommendations regarding existing structures.
CONSIDERATIONS: On January 23,2007, Agenda Item 10A, the Board approved a CCLMC
recommended Active Acquisition List (ML) for cycle four, with changes, and directed staff to
actively pursue acquisition of the properties under the Conservation Collier Program. One of
the properties on this list was a parcel owned by Joseph Hamilton of approximately 194 acres
with structures located along U.S. 41 just to the east of Collier Seminole Park (see map exhibit
attached). This property is considered an important conservation acquisition due to its location
(bordered on all sides by conservation lands), because it is within an area undergoing
hydrologic restoration, and because it is habitat for numerous listed plant and wildlife species.
Two appraisals were prepared under the Conservation Collier Purchase Policy (Resolution No.
2003-195) by appraisers on the County's approved vendor list and provided to the County on
April 4, 2007. These appraisers and values are as follows:
1. Coastal Engineering - $1,700,000
2. Callaway and Price - $1,550,000
On April 9, 2007 an offer for the average of the two appraisal amounts, $1,625,000, was made
to the owner. Subsequently, the County's offer was refused and the owner rescinded the offer
for the sale of the property.
At a September 11, 2007 Board meeting, the property owner petitioned the Board to reconsider
the purchase. After affirmative recommendation by CCLMC (unanimous with one abstention),
and unanimous approval by the Board on January 29, 2008 (Agenda Item 10F), the property
was placed in the A-category of the ML for cycle five.
At approximately the same time, the Conservation Collier Purchase Policy was revised
(Resolution No. 2007-300, Sec. II.B.4.) to say that once an offer has been made and refused,
that offer is deemed to be expired. If six months elapse and if the owner decides to re-offer the
property for sale, new appraisals will be ordered at the expense of the property owner.
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Agenda Item No. 10H
November 18, 2008
Page 2 of 8
The property owner chose to proceed under these conditions and provided payment for
new appraisals. In May 2008, County staff ordered two new appraisals from appraisers on
the County's approved vendor list. The appraisers and resulting values are as follows:
1. Boyd, Schmidt & Brannum - $2,215,300
2. Real Property Analysts - $2,134,000
An offer based on the average of the two appraisals was developed - $2,174,650. The
difference between the initial rejected offer and the average of the second set of appraisals
was $549,650. At the July 22, 2008 Board meeting (Agenda Item 100), staff brought
forward the request to make an offer to the owner based on the second set of appraisals.
Additionally, The Conservation Fund (TCF), a national non-profit conservation
organization, agreed to make application for a North American Wetlands Conservation Act
(NAWCA) grant for $1 million to assist the County with purchase of the Hamilton property
and offered to act as intermediary buyer for the County.
At its June 9'h, 2008 public meeting, the CClAAC made the following additional
recommendations regarding structures on the property:
. Inspect the Chickee building prior to closing and make sure it is sound and valued
appropriate to condition,
. Leave asphalt paving as is,
. Inspect docks and wooden walkways and if in sound condition, leave as is. Staff
would add: If not in sound condition, remove at owner's expense,
. Inspect and remove unpermitted septic system at owner's expense prior to closing
or within an agreed-upon time frame after closing,
. Leave the well as is,
. Remove the 'Wind Dancer Airboat Tours" sign prior to closing and include
language in the contract to confirm the Code Enforcement lien is paid prior to
closing or from closing proceeds, (The Code Enforcement lien has been since
paid.)
At the July 22, 2008 meeting, the Board did not approve staff to make the offer of
$2,174,650 or to work with TCF. Additionally, staff was directed not to return on this item
unless with different information relating to either the grant award or the offer value. At
issue was the apparent rise in property value in an otherwise declining real estate market.
Later, in the same agenda, under public comment and at the request of Matt Sexton, Vice
President for TCF, the Board did allow TCF to use Conservation Collier-acquired lands as
match for a NAWCA grant application.
An Appraisal Review Summary by the County's Real Estate Appraiser regarding the
difference in value between the first and second set of appraisals is attached.
The NAWCA grant application was submitted in August 2008 and scored slightly below the
cutoff for funding. The TCF grant application scored 59; the cutoff score was 61; the
highest score of any of the applications was 70. TCF believes the application can be
strengthened for a March 2009 re-submittal to achieve the award; however, staff would not
know of a preliminary score on a re-submittal until July 2009. TCF is agreeable to
resubmitting the grant application.
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Agenda Item No. 10H
November 18, 2008
Page 3 of 8
The owner has made a bargain sale offer of $1,913,000, which is $261,650 less than the
average value of the second set (May 2008) of appraisals.
The U.S. Fish and Wildlife Service (USFWS) remains interested in purchasing the
Hamilton property from Conservation Collier in the future to add it to the adjoining Ten
Thousand Islands National Wildlife Refuge. Such a potential transaction would be several
years in the future. In the interim, USFWS is interested in entering into a management
agreement with Conservation Collier to maintain a law enforcement presence on the
property and to assist with pUblic use plans and habitat management at no cost to the
County. Should the County acquire the Hamilton property, any such management
agreement would be taken to the Board for consideration at a future regularly noticed
meeting.
FISCAL IMPACT:
. Land cost - $1,913,000 ($9,860 per acre)
. Phase I ESA - incurred - $6,664 - no concerns identified
· Appraisals (2) - incurred - $10,200 (additional $15,950 paid by Hamilton for new
appraisals)
. Title search - expected - $8,500
. Recording - expected - $50
. Total expected costs - excluding those potential costs pertaining to the NAWCA
grant - $1,938,414
NAWCA grant funds of approximately $1 million dollars will be reimbursed to the
Conservation Collier program if the NAWCA grant is received, less any associated cost for
preparation incurred. The owner has requested that if the Board approves this bargain
sale offer, the County close on the property before the end of the calendar year. This may
not be possible for the County. In that event, TCF remains willing to serve as intermediary
buyer, if requested to by the seller, at a cost to be worked out between TCF and the seller
and to be paid by the seller directly to TCF. At present, this is simply an option. Any
proposed contracts will be reviewed by the County Attorney and will return to the Board for
approval.
Mr. Hamilton has been advised that the discounted portion of the sale may be eligible for
him to take as a federal tax deduction. If he chooses to exercise this option, the
appropriate forms will be provided to him at closing.
The Conservation Collier Program has budgeted for this purchase and has the necessary
funds available (172-178986-761100).
GROWTH MANAGEMENT IMPACT: Fee-simple acquisition of conservation lands is
consistent with and supports Policy 1.3.1 (e) in the Conservation and Coastal Management
Element of the Collier County Growth Management Plan.
LEGAL CONSIDERATIONS: This item is legally sufficient for Board consideration.
Notably, it is not unlawful under Ordinance No. 2002-63, as amended (Conservation
Collier Implementation Ordinance) for the County may make an "offer" to a property owner
for a purchase price of less than the average of the two most recent real estate appraisals
since the property owner has voluntarily approached the County with a willingness to
accept a reduced purchase price. - JAB
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Agenda Item No. 10H
November 18, 2008
Page 4 of 8
RECOMMENDATION: That the Board directs the County Manager or his designee to
make the offer of $1,913,000 to the property owner, Joseph Hamilton, and accepts the
CCLAAC's recommendations regarding existing structures.
PREPARED BY: Alexandra J. Sulecki, Sr. Environmental Specialist, Facilities
Map Exhibit - Hamilton property
Conservation Collier Hamilton Location Map
,
,,+,
- Collier County Roads
.. Conservation Land
o Hamilton
Priority 1 Panther Habitat
* Roadkill Bears
*: American Bald Eagle Nests 2002
* Florida Panther
I
o
05
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1 Miles
DillS hurce: Paceels. ColII.~ Count, Property Appraiser
Cre.eeI .yo: GIS 1 CDES '. En..lronmema' Sorvlces
G:IConserv..t1on Colli... 2002\ ISCR\ 4thcyc:l.\N.....llton.mx...
G:\Con..rvatlon Collier 200211SCR\ 41hcyc:le\H..,llton,jPliI
DllteI7.25.08
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Folio Number 00776200008
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Agenda Item NO.1 OH
November 18, 2008
Page 5 of 8
Appraisal Review Summary
SUMMARY OF SALIENT FACTS AND CONCLUSIONS
Property Location: 20610 Tamiami Trail East
Southwest side of Tamiami Trail East (US 41)
approximately 1.5 miles east of San Marco Road,
Unincorporated Collier County, Florida
Owner's Name: Joseph Hamilton I Windancer Airboat Tours
Owner's Address: 4440 Burton Road
Naples, Florida 34104-4766
Folio Number: 00776200008
TownshiplRange/Section: 51-27-36
Land Area: 194.0 acres
Present Use: Vacant Land
Zoning: A, Rural Agriculture with a conditional use for air
boat rides and a special conservation overlay district
Utilities: Electric
Site Description: Vacant land partially disturbed with 5-acre borrow
pit and spoil area, also uplands improved with a Chickee hut for the air boat business that is
currently closed
Highest and Best Use: Recreation/Conservation Mitigation
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Agenda Item No. 10H
November 18. 2008
Page 6 of 8
The March 2007 average estimated value for the Windancer parcel is $1,625,000 dollars / $8,376
per acre. The market data of the independent appraisers established a per acre value in the range
of $6,000 to $9,000 dollars. In October 2006 the Collier County Airport Authority purchased a
parcel on SR 29 for mitigation purposes at $8,800 per acre. The independent appraisers'
estimated per acre value of $6,000 to $9,000 dollars in part was concluded from the October
mitigation sale.
The April 2008 average estimated value for the Windancer parcel is $2,174,650 dollars / $11,210
per acre. The market data of the independent appraisers established a per acre value in the range
of$8,000 to $12,000 dollars. February 2008 the Alico Airpark LLC purchased a parcel on SR 29
for mitigation purposes at $10,723 per acre. The independent appraisers' estimated per acre
value of $8,000 to $12,000 dollars in part was concluded from the February mitigation sale.
The March 2007 appraisals indicated a 8.82% difference between the two independent
appraisers' values and the overall offer value of $8,376 per acre is within the established value
range of $6,000 to $9,000 dollars.
The April 2008 appraisals indicated a 3.7% difference between the two independent appraisers'
values and the overall offer value of $11,210 per acre is within the established value range of
$8,000 to $12,000 dollars.
Conclusion
The estimated value and utility for the Windancer parcel is based on mitigation land being its
highest and best use. The need for this land depends on the requirement to development land for
another project. Typically the current market conditions have a greater effect on residential
properties than mitigation type parcels. The Windancer parcel is currently being offered at
$1,913,000 dollars / $9,861 per acre. This offer is closer to the lower end of the per acre value
range of$8,000 to $12,000 per acre. Recently Conservation Collier acquired an 80 acre parcel in
McIlvane Marsh (a similar type mitigation area) for a per acre value of $9,500 dollars.
Prepared By
Roosevelt Leonard, Real Estate Appraiser, Real Property Management Department
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Agenda Item NO.1 OH
November 18, 2008
Page 7 of 8
COLLIER COUNTY
BOARD OF COUNTY COMMISSIONERS
Item Number:
Item Summary:
10H
Recommendation for the Board of County Commissioners (Board) to provide the County
Manager or his designee with guidance on making an offer for the Conservation Collier A-List
Hamilton property at a reduced sale offer made by the owner of $1 ,913,000 and to accept
Conservation Collier Land Acquisition Advisory Committee (CCLAAC) recommendations
regarding existing structures. (Alex Sulecki, Conservation Collier)
Meeting Date:
11/18/2008 900:00 AM
Prepared By
Alexandra J. Suleckl
Senior Environmental Specialist
Date
Administrative Services
Facilities Management
10/28/200810:15:13 AM
Approved By
Jennifer A. Belpedio
Assistant County Attorney
Date
County Attorney
County Attorney Office
10/29/2008 11 :31 AM
Approved By
Melissa Hennig
Environmental Specialist
Date
Administrative Services
Facilities Management
10/29/20081:52 PM
Approved By
Skip Camp, C.F.M.
Facilities Management Director
Date
Administrative Services
Facilities Management
11/3/200810:08 AM
Approved By
Roosevelt Leonard
Real Estate Appraiser
Date
Administrative Services
Real Estate Services
11/3/200810:59 AM
Approved By
Len Golden Price
Administrative Services Administrator
Date
Administrative Services
Administrative Services Admin.
11/3/20084:14 PM
Approved By
OMS Coordinator
Applications Analyst
Date
Administrative Services
Information Technology
11/4/20089:21 AM
Approved By
Jeff Klatzkow
Assistant County Attorney
Date
County Attorney
County Attorney Office
11/4/20082:06 PM
Approved By
Laura Davisson
Management & Budget Analyst
Date
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11/12/2008
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Agenda Item NO.1 OH
November 18, 2008
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County Manager's Office
Office of Management & Budget
11/6/200812:22 PM
Approved By
James V. Mudd
Board of County
Commissioners
County Manager
Date
County Manager's Office
11/6/20081:41 PM
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