Agenda 03/10/2020 Item #11D (HHH Ranch Offer)03/10/2020
EXECUTIVE SUMMARY
Recommendation to review an offer received from LSI Companies Incorporated for the acquisition
of 967.08 +/- acres located three miles east of Collier Boulevard and directly north of Alligator Alley
known as the HHH Ranch owned by Francis and Mary Hussey, for a purchase price of $11 million.
OBJECTIVE: To obtain Board of County Commissioners (Board) guidance and approval for the
County Manager to negotiate terms and conditions, to obtain appraisal updates on the property
(Property), authorize a waiver to utilize Carlson, Norris and Associates, Inc. for appraisal work and
authorize the Chairman to execute a letter of interest in lieu of signing the offer letter.
CONSIDERATIONS: On March 2, 2020, the attached Term Letter was received for the Property
outlining the terms and conditions of the proposed sale. The asking price for the property is $11,000,000.
The Property, as depicted on the attached Location Map, comprises of 967.08 +/- acres with 583 +/- acres
designated as RFMUD Receiving Lands and 384 +/- acres designed as RFMUD Sending Lands.
On October 10, 2017, Agenda Item 11.C, the Board rejected the offer to purchase the Property for
$75,000,000 as the requested price or public-private partnership could not be supported by available data
at that time. Appraisals dated June 16, 2017 were obtained from Carlson, Norris and Associates, Inc. and
Maxwell, Henry Simmons for the Property. The average valuation of the two (2) appraisals for the land
was $8.2 million. Due to the age of the appraisals, staff is recommending obtaining appraisal updates. A
waiver is required to utilize Carlson, Norris and Associates, Inc. as they aren’t currently on the County’s
appraisal vendor contract.
An initial due diligence review will need to be conducted to evaluate the uses on the property as
represented in the Term Letter. The entitlements for potential housing identified may need to be
established by the seller prior to closing. The Property may also provide an opportunity to realign
Wilson/Benfield Road to reduce the environmental impact of the future roadway. These factors along
with preparing updated appraisals will require some additional time prior to staff making a
recommendation to the Board.
With approval from the Board, the County Manager will move expediently to evaluate the offer, negotiate
terms, and bring back a recommendation and potentially a purchase and sale agreement.
FISCAL IMPACT: The cost to update appraisals will be $8,900. Potential funding sources and
financing options for this potential acquisition will be provided at the time that a purchase and sale
agreement is presented to the Board for consideration.
GROWTH IMPACT: None at this time.
LEGAL CONSIDERATION: This item has been reviewed by the County Attorney, is approved as to
form and legality, and requires majority vote for approval. -JAK
RECOMMENDATION: That the Board:
1. Authorize obtaining appraisal updates from Carlson, Norris and Associates, Inc. and Maxwell,
Henry Simmons;
2. Approve a waiver to utilize Carlson, Norris and Associates, Inc.
3. Authorize the Chairman to execute a letter of interest
4. Authorize the County Manager to negotiate terms and conditions
11.D
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03/10/2020
5. Bring back a future agenda item with terms and conditions for Board consideration
Prepared by: Toni A. Mott, Manager, Real Property Management, Facilities Management Division
ATTACHMENT(S)
1. Term Letter County 03-02-20 (PDF)
2. Location Map (DOCX)
11.D
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03/10/2020
COLLIER COUNTY
Board of County Commissioners
Item Number: 11.D
Doc ID: 11888
Item Summary: Recommendation to review an offer received from LSI Companies Incorporated
for the acquisition of 967.08 +/- acres located three miles east of Collier Boulevard and directly north of
Alligator Alley known as the HHH Ranch owned by Francis and Mary Hussey. (Toni Mott, Manager,
Real Property Management, Facilities Management Division)
Meeting Date: 03/10/2020
Prepared by:
Title: Manager - Technical Systems Operations – Administrative Services Department
Name: Michael Cox
03/04/2020 7:43 AM
Submitted by:
Title: Director - Facilities Management – Facilities Management
Name: Damon Grant
03/04/2020 7:43 AM
Approved By:
Review:
Facilities Management MaryJo Brock Director - Facilities Skipped 03/04/2020 8:02 AM
Public Utilities Department MaryJo Brock Level 1 Division Reviewer Skipped 03/04/2020 8:02 AM
Public Utilities Department MaryJo Brock Level 2 Division Administrator Review Skipped 03/04/2020 8:03 AM
Office of Management and Budget MaryJo Brock Level 3 OMB Gatekeeper Review Skipped 03/04/2020 8:03 AM
County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 03/04/2020 11:35 AM
County Attorney's Office Jeffrey A. Klatzkow Additional Reviewer Completed 03/04/2020 11:54 AM
County Manager's Office Leo E. Ochs Level 4 County Manager Review Completed 03/04/2020 12:05 PM
Board of County Commissioners MaryJo Brock Meeting Pending 03/10/2020 9:00 AM
11.D
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11.D.1
Packet Pg. 335 Attachment: Term Letter County 03-02-20 (11888 : HHH Ranch Offering)
11.D.1
Packet Pg. 336 Attachment: Term Letter County 03-02-20 (11888 : HHH Ranch Offering)
583 Acres
Receiving
384 Acres
Sending
Hussy Property Location Map
11.D.2
Packet Pg. 337 Attachment: Location Map (11888 : HHH Ranch Offering)