Agenda 10/14/2008 Item #10AAgenda Item No. 10A
October 14, 2008
Page 1 of 7
Executive Summary
Review the Port of the Islands Marina and boat launch facility purchase
options and obtain direction from the Board of County Commissioners
on how to proceed.
Obiective: Review the Port of the Islands Marina and boat launch facility purchase
options and obtain direction from the Board of County Commissioners on how to
proceed.
Considerations:
Port of the Islands is a recently rebuilt 175 wet slip marina that includes:
• 140 wet slips currently available for short and long term rental.
• A boat launch ramp.
• A fueling facility.
• Approximately 2.4 acres of commercially zoned waterfront land currently used
for boat trailer and car parking along with some long term boat storage.
• The 7,400 SF marina building that houses a ship store, bathrooms, offices and
environmental interpretative area on approximately 1.4 acres of commercially
zoned waterfront property.
• Approximately 1.46 acres of upland property suitable for a future Ochopee Fire
Station.
• Conversion capability of the upland area for dry storage or additional trailer
parking.
• Outright ownership of approximately 10 acres of submerged lands, which will not
require yearly lease payments to the State.
• Non- exclusive lighted car parking for 94 vehicles.
• Non - exclusive use for overflow parking adjacent to the 1.46 acres site.
• Excellent water access to the Everglades, the 10,000 Island National Wildlife
Refuge, and the Inter - coastal waterway.
The Shucart family is desirous of selling all, or portions of this marina facility to the
County and has worked with County staff to develop various purchase options. Each
option has been fully vetted between staff and the Shucart family and represents their best
and final offer.
Additionally, Real Property Management's staff appraiser has obtained two independent
appraisals on all the parcels considered. Pricing presented reflects the average of both of
the County appraisals.
The purchase options are grouped into the following categories:
1. Purchase of the boat ramp associated trailer and boat parking and the fire
station parcel
Agenda Item No. 10A
October 14, 2003
Page 2 of 7
Option lA — Seller financed to include:
• Waterfront land consisting of approximately 2.4 acres of commercially zoned
property currently used for boat trailer parking, car parking, and long term
boat storage; an oversized single boat launch ramp; non - exclusive use of a 94
space parking facility; approximately 1.46 acres of commercially zoned
upland property suitable for a future Ochopee Fire Station for $4,045,000.
• Seller will finance the above purchase for 10 years at 5% interest. The terms
of the loan will be interest only monthly payments, with no payments due for
the first three years. Interest due for the first three years would accrue to the
principal with the entire principal amount due at the completion of the 10 year
term.
• Under this Scenario, approximate yearly payments are as follows:
• Years l through 3 — no payments
• Years 4 through 10 - $234,130 per year
• Balloon payment at the end of year 10 - $4,682,594
Option 1B — Cash payment to include:
• Waterfront land consisting of approximately 2.4 acres of commercially zoned
property currently used for boat trailer parking, car parking and long term boat
storage; an oversized single boat launch ramp; non - exclusive use of a 94 space
parking facility; approximately 1.46 acres of commercially zoned upland
property suitable for a future Ochopee Fire Station for $4,045,000.
• Less $220,000 credit for cash at closing making the total purchase price
$3,825,000.
Advantages and disadvantages of this approach:
• The advantage of this approach would be that the boat ramp and associated
parking would provide boater access to County residents with the minimum of
capital outlay regardless if sell financed or cash purchased.
• The Ochopee Fire District would be able to obtain land for fire station
facilities.
• No additional staff would be required to operate these facilities.
• Either a cash or financed purchase of this property would involve a
conunitment of funds that are currently not available.
• Cash purchase as opposed to seller financing eliminates interest expenses and
anxiety associated with cash availability for a future balloon payment.
2. Purchase of the Entire Marina Facilit
Option 2A — Seller financed purchase of the entire marina facility, less a good
faith discount and credit for County owned surplus properties to include:
• Approximately 2.4 acres of commercially zoned waterfront land currently used
for boat trailer and car parking along with some long tern boat storage; an
Agenda Item No. 10A
October 14, 2008
Page 3 of 7
oversized single boat launch ramp; non - exclusive use of a 94 space parking
facility; approximately 1.46 acres of commercially zoned upland property suitable
for a future Ochopee Fire Station; 140 wet slips for short and long term rental; a
fueling facility; 7,400 SF marina building that houses a ship store, bathrooms,
offices and environmental interpretative area on approximately 1.4 acres of
commercially zoned waterfront property for $9,525,000.
• Less good faith discount in the amount of $200,000
• Less surplus Santa Barbara 5 acre — Bembridge parcel (folio #00400246406) for
$1,400,000; less surplus Livingston Woods parcel (folio # 38457520008) for
$246,000; less two Naples park parcels (folio # 62417240006 and folio #
6241728008) for $169,000 and $228,000 respectfully for a total deduction for
surplus property of $2,043,000. The remaining purchase balance is $7,282,000.
• The seller will finance the above purchase for 10 years at 5% interest. The terms
of the loan will be interest only monthly payments with no payments due for the
first three years. Interest due for the first three years would accrue to the principal
with the entire principal amount due at the completion of the 10 year term.
• Under this Scenario, approximate yearly payments are as follows:
• Years 1 through 3 — no payments
• Years 4 through 10 - $421,490 per year
• Balloon payment at the end of year 10 - $8,429,825.
Option 2B — Cash payment for the entire marina facility to include:
• Approximately 2.4 acres of commercially zoned waterfront land currently used
for boat trailer and car parking along with some long term boat storage; an
oversized single boat launch ramp; non - exclusive use of a 94 space parking
facility; approximately 1.46 acres of commercially zoned upland property suitable
for a future Ochopee Fire Station; 140 wet slips for short and long term rental; a
fueling facility; 7,400 SF marina building that houses a ship store, bathrooms,
offices and environmental interpretative area on approximately 1.4 acres of
commercially zoned waterfront property for $9,525,000.
• Less $1,175,000 credit for cash at closing making the total purchase price
$8,350,000.
Option 2C — Cash payment for the entire marina facility with credit for County
owned surplus properties to include:
• Approximately 2.4 acres of commercially zoned waterfront land currently used
for boat trailer and car parking along with some long tenn boat storage; an
oversized single boat launch ramp; non - exclusive use of a 94 space parking
facility; approximately 1.46 acres of commercially zoned upland property suitable
for a future Ochopee Fire Station; 140 wet slips for short and long term rental; a
fueling facility; 7,400 SF marina building that houses a ship store, bathrooms,
offices and environmental interpretative area on approximately 1.4 acres of
commercially zoned waterfront property for $9,525,000.
• Less $500,000 credit for cash at closing.
�., • Less surplus Santa Barbara 5 acre — Bembridge parcel (folio #00400246406) for
$1,400,000; less surplus Livingston Woods parcel (folio # 38457520008) for
Agenda Item No. 10A
October 14, 2003
Page 4 of 7
$246,000; less two Naples park parcels (folio # 62417240006 and folio #
6241728008) for $169,000 and $228,000 respectfully for a total deduction for
surplus property of $2,043,000.
The remaining cash purchase balance would be $6,982,000.
Advantages and disadvantages of this approach:
• The purchase would be strategic providing trailer boat launch and marina
facilities to the public in an area with excellent water access to the Everglades, the
10,000 Island National Wildlife Refuge, and the Inter- coastal waterway.
• The County is disposing of surplus property at fare market value that would offset
capital needed to purchase the property.
• The Ochopee Fire District would be able to obtain land for fire station facilities.
In addition, no additional staff would be required to operate these facilities.
• Either a cash or financed purchase of this property would involve a significant
commitment of funds that are currently not available.
• Cash purchase as opposed to seller financing eliminates interest expenses and
anxiety associated with cash availability for a significant future balloon payment.
Any option selected contains a no pre - payment penalty. Additionally, it should be noted
that if the sale is not concluded by December 31, 2008, a 4% surcharge will apply to any
option amount considered.
Funds Available
A detailed analysis of the Parks and Recreation Impact Fee Fund 346 and Parks and
Recreation Ad Valorem Capital Projects fund 306 for potential funds available, debt
service requirements and existing capital needs to complete previously approved projects
for FY's 2009, 2010 and 2011 is attached.
As can be seen from this analysis, funding available will not be sufficient to cover debt
service requirements and currently approved capital project requirements over the next
three years. A shortfall of approximately $2.8M can be expected. Funding from yet
unidentified sources will be required to offset this already committed shortfall.
If Port of the Islands Marina is approved, a funding source other than the P &R Impact
Fees Fund 346 and /or P &R Ad Valorem Capital Projects Fund 306 funds will be
required.
Advisory Committee Recommendations: The Finance committee has reviewed this
proposed acquisition on 9/26/2008. The Finance Committee will detennine and make
recommendations as to the best financing approach once direction is obtained on how to
proceed.
Countv Attorney Findings: The County Attorney's office will review this item again
when the funding source is identified. The funding source will determine the legal
analysis required. If directed to move forward, Coastal Zone Management with Real
Agenda (tern No. 10A
October 14, 2008
Page 5 of 7
Property management staff will work closely with the County Attorney's Office to
develop and review application legal documents. — CMG
Fiscal Impact: Parks and Recreation receives capital funding from tourist development
taxes (TDC) impact fees, and from Ad Valorem. This project does not meet the TDC
criteria, therefore, using TDC dollars is not allowed.
This marina may use impact fees, for the purchase however the Parks and Recreation
Impact Fee Fund 346 Reserves has a balance of $2,699,100. In prior years, the impact
fee revenues collections exceeded $8 million, however with the current economy, fiscal
year 2008 collections were only $2.4 million and we expect less in FY2009. Also, the
North Regional Park debt service is paid out of the impact fees annually in the amount of
$3.1 million, which is greater than the current revenue stream. Parks and Recreation also
receives Ad Valorem for the repair, replacement, and maintenance of capital items which
are accounted for in the Parks and Recreation Ad Valorem Capital Fund 306, currently
there are no Reserves available. Therefore funding will need to be identified for this
purchase.
An unaudited accounting of the Port of the Islands marina operation estimates operating
revenue from this facility to be $641,527. Operating expenses are expected to be
approximately $599,311. This represents a yearly surplus of approximately $42,216 a,
year for the first three years of operation.
Approximately $450,000 in EMS Impact Fees would need to be repaid if the Bembridge
Property is used toward the purchase of this property.
If a contract to purchase this property is forthcoming and the Livingston Woods parcel is
used toward the purchase of this property, it will be necessary for the Board of County
Commissioners to approve a Resolution releasing the Livingston Woods parcel from its
designation as surplus for the benefit of affordable housing under F.S. 125.379.
Funds are not identified to Permit, Engineer or Construct any facility modifications that
might be needed.
Growth Management Impact: Depending on the approach and direction provided by
the Board of County Commissioners the impact to the Growth Management Plan may
vary. However, any approach taken will be consistent with the Conservation and Coastal
Management Element Policies supporting Objective 10.3 that address developed coastal
barriers and shorelines.
Staff Recommendations: Staff is seeking direction on how to proceed on this item.
Prepared by: Gary McAlpin, CZM Director
r-
Page lof|
Agenda Item No. 18A
October 14`2OOQ
Page 8of7
COLLIER COUNTY
BOARD OF COUNTY COMMISSIONERS
Item Number: 1 O
Item Summary: Review the Port of the Islands Marina and boat launch facility purchase options and obtain
direction from the Board of County Commissioners on how to proceed. (Gory MuAlpin.
Coastal Zone Management Director)
Meeting Date: 10?'14.!2008 9:00�00 AM
Approved By
Kathy Carpenter
Executive Secretary
Date
Public Services
Public Services Admin.
9/3012008 11:11 Am
Approved By
Marla Ramsey
Public Services Administrator
Date
Public Services
Public Services Admin.
o/no/auo811zuAm
Approved By
Colleen Greene
Assistant County Auo,me,
Date
countyAoo,nor
County Attorney Office
9/3012008 1 :13 PM
Approved By
OMB Coordinator
OMB Coordinator
Date
County Manager's Office
Office or Management uavdgot
9130/200n3:02 PM
Approved By
Susan Usher
SonmrManagomenuBvugwt Analyst
Date
County Manager's Off ice
Office arN11anasemont & Budget
1012/2008 11:09 4M
Approved By
ma,k!vaoxsvn
Budget Analyst
Date
County manvger'oOffice
Office ofManagement &e"uO**
1�2",2008 5�4111pM
Approved By
James V. Mudd
County Manager
Date
Board nfCounty
County Manager's Office
0161200812:28 pM
Commissioners
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COLLIER COUNTY to , y a C8
COLLIER COUNTY DIVISION OF PUBLIC SERVIC S
Coastal Zone Management
3300 Santa Barbara Boulevard * Naples, Florida 34116-6601
(239)- 213 -2966 * FAX 239 - 353 -4061
TO: Board of County Commissioners
FROM: Gary McAlpin, Coastal Zone Management Director
CC: Jim Mudd, County Manager
Leo Ochs, Jr., Deputy County Manager
Marla Ramsey, Public Service Administrator
John Yonkosky, OMB Director
Dan Summers, Emergency Management Director
Colleen Greene, Assistant County Attorney
Toni Mott, Property Acquisition Manager
DATE: October 10, 2008
SUBJECT: BCC October 14, 2008 Agenda; Item 10A
Addition Purchases Option 3 for Port of the Island Marina
This is a companion to item l0A for your 10/14/08 agenda package.
This option became available on 10/9/08 and staff felt it was important for you to review it prior to the
meeting. It provides for excess space in the Port of the Island marina building to be used to house the
Ochopee fire station without purchasing a land parcel or building a fire station.
Fort
10
NAPLES,
Mr. Gary McAlpin Thursday, October 09, 2oo8
Director
Coastal Zone Management Department
3300 Santa Barbara Blvd
Naples, Florida 34x16
Re: Port of the Islands Marina — Naples, Florida
Dear Gary,
As per a meeting late yesterday afternoon at the marina with Mr. Dan Summers
(Director of the Bureau of Emergency Services) and Chief McLaughlin (Ochopee Fire
District Chief), it was determined that the existing Marina building would be able to
accommodate a permanent Fire Station (with some EMS capability) for the Port of the
Islands Community.
This would eliminate the need for the County to purchase the 1.46 Acres of
Commercially zoned upland property thus reducing the purchase price by $385,000
and eliminating the need for the construction of a new Fire Station Facility which
would cost hundreds of thousands of dollars.
This would produce significant economic benefits for the County as well as providing
much needed life safety services to the Port of the Islands Community in a much
timely manner.
In the meeting we also discussed the idea of our purchasing the Bembridge Parcel for
$950,000 in trade value plus $450,000 cash at closing. This would allow for the
reimbursement of the EMS Impact Fees.
Please see Options 3A and 3B below with respect to the above.
Option 3A — Seller financed purchase of the entire marina facility, less a good faith discount and credit
for County owned surplus properties to include:
• Approximately 2.4 acres of commercially zoned waterfront land currently used for boat trailer and car
parking along with some long term boat storage; an oversized single boat launch ramp; non - exclusive use of
a 94 space parking facility; 140 wet slips for short and long term rental; a fueling facility; 7,400 SF marina
building that houses a ship store, bathrooms, offices, environmental interpretative area, and enough excess
square footage in which to build a permanent Ochopee Fire Station with some EMS capabilities on
approximately 1.4 acres of commercially zoned waterfront property for $9,140,000.
• Less good faith discount in the amount of $200,000
• Less surplus Santa Barbara 5 acre — Bembridge parcel (folio #00400246406) for $950,000 trade value plus
$450,000 cash from purchaser at closing; less surplus Livingston Woods parcel (folio # 38457520008) for
$246,000; less two Naples park parcels (folio # 62417240006 and folio # 6241728008) for $169,000 and
$228,000 respectfully for a total deduction for surplus property of $1,593,000 plus $450,000 cash from
purchaser at closing. The remaining purchase balance is $7,347,000.
• The seller will finance the above purchase for 10 years at 5% interest. The terms of the loan will be interest
only monthly payments with no payments due for the first three years. Interest due for the first three years
would accrue to the principal with the entire principal amount due at the completion of the 10 year term.
Option 3B — Cash payment for the entire marina facility with credit for County owned surplus
properties to include:
• Approximately 2.4 acres of commercially zoned waterfront land currently used for boat trailer and car
parking along with some long term boat storage; an oversized single boat launch ramp; non - exclusive use of
a 94 space parking facility; 140 wet slips for short and long term rental; a fueling facility; 7,400 SF marina
building that houses a ship store, bathrooms, offices, environmental interpretative area, and enough excess
square footage in which to build a permanent Ochopee Fire Station with some EMS capabilities on
approximately 1.4 acres of commercially zoned waterfront property for $9,140,000.
• Less $500,000 credit for cash at closing.
• Less surplus Santa Barbara 5 acre — Bembridge parcel (folio #00400246406) for $1,400,000; less surplus
Livingston Woods parcel (folio # 38457520008) for $246,000; less two Naples park parcels (folio #
62417240006 and folio # 6241728008) for $169,000 and $228,000 respectfully for a total deduction for
surplus property of $2,043,000.
• The remaining cash purchase balance would be $6,597,000.
Sincerely,
Christopher Shucart
Managing Member
The Islands Marina, LLC