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Agenda 07/14/2020 Item #16C 7 (Agreement for Sale and Purchase of 5 Acres Adjacent to the County Landfill)07/14/2020 EXECUTIVE SUMMARY Recommendation to approve an Agreement for Sale and Purchase (“Agreement”) for the Solid and Hazardous Waste Management Division to acquire 5 acres of land that is improved with a single- family home (“Property”) as part of an assemblage of properties that are immediately adjacent to the County landfill and contiguous to other lands acquired by the County and authorize necessary budget amendments. (Project 59012) OBJECTIVE: To further the county’s good neighbor policy by acquiring property from willing sellers within Sections 30 and 31 east of the Collier County Landfill to strategically secure lands which can act as a natural buffer. CONSIDERATIONS: On December 5, 2006, the Board approved the Integrated Solid Waste Management Strategy (ISWMS) which set forth the Enduring Guiding Principles for environmental and Growth Management compliance, airspace preservation, operational excellence and best value service. Those guiding principles were ratified by Ordinance 13-08, the Solid Waste Sub-Element of the Growth Management Plan (GMP). Both the Solid Waste Sub-Element of the GMP and the ISWMS, set forth that the County “shall pursue the acquisition of land inventory” and to optimize the current solid waste management infrastructure. I n keeping with this directive, in 2017, the County acquired 20 unimproved acres adjacent to the landfill for $180,000 ($12,000/acre) and earlier this year, the County acquired an additional 5 unimproved acres adjacent to the landfill and contiguous to the aforementioned 20 acres for $60,000 ($12,000/acre). The County continues to search for opportunities for additional land inventory to further contribute to the waste management infrastructure. Real Property Management contacted property owners in close proximity to the landfill, and Martin Gaut and Tina Warren, owners of 5 acres of improved land (Folio #00337440003) agreed to sell their property to Collier County under the terms and conditions in the attached Agreement for Sale and Purchase. An in-house appraisal determined a market value of $315,000 and after negotiating with the owner and owner’s representatives, the owner agreed to a selling price of $290,000. The site is improved with a single-family home which the seller may occupy for a period of six months after the closing date. The Agreement for Sale and Purchase has been reviewed and approved by the County Attorney’s Office, the Solid and Hazardous Waste Management Division, and the Seller. To mitigate any risk to the County, the Agreement provides for a 90-day due diligence period to inspect the Property to include an environmental assessment and title search. Should there be any concerns, the County has the right to terminate the Agreement. The appraisal report and a location map are attached for reference. FISCAL IMPACT: The total cost of the acquisition should not exceed $300,000 ($290,000 for the purchase price and $10,000 for a title commitment, title policy, closing costs and recording of the documents). The source of funding is the Solid Waste Capital Projects Fund (474). A budget amendment reallocating existing project budgets is required. LEGAL CONSIDERATIONS: This item is approved as to form and legality and requires a majority vote for Board approval. - JAB GROWTH MANAGEMENT IMPACT: This transaction is consistent with the County’s Growth 16.C.7 Packet Pg. 1656 07/14/2020 Management Plan, specifically the Solid Waste Sub-Element. RECOMMENDATION: 1. Approve the attached Agreement for Sale and Purchase. 2. Authorize the Chairman to execute the Agreement and any additional closing documents, and accept the Warranty Deed, once approved by the County Attorney’s Office. 3. Authorize staff to prepare related vouchers and warrants for payment. 4. Authorize necessary budget amendments. 5. Direct the County Manager or his designee to proceed to acquire the Property and to follow all appropriate closing procedures, to acquire and obtain clear title to the Property, and to record any and all necessary documents (once approved by the County Attorney’s Office) in the Publ ic Records of Collier County, Florida. Prepared By: Jay Malamphy, Property Acquisition Specialist, Facilities Management Division ATTACHMENT(S) 1. Appraisal Report (PDF) 2. Location Map (PDF) 3. Agreement for Sale and Purchase - Signed (PDF) 16.C.7 Packet Pg. 1657 07/14/2020 COLLIER COUNTY Board of County Commissioners Item Number: 16.C.7 Doc ID: 12780 Item Summary: Recommendation to approve an Agreement for Sale and Purchase (“Agreement”) for the Solid and Hazardous Waste Management Division to acquire 5 acres of land that is improved with a single-family home (“Property”) as part of an assemblage of properties that are immediately adjacent to the County landfill and contiguous to other lands acquired by the County. (Project 59012) Meeting Date: 07/14/2020 Prepared by: Title: Manager - Property Acquisition & Const M – Facilities Management Name: Toni Mott 06/25/2020 4:54 PM Submitted by: Title: Director - Facilities Management – Facilities Management Name: Damon Grant 06/25/2020 4:54 PM Approved By: Review: Solid and Hazardous Waste Kari Hodgson Additional Reviewer Completed 06/25/2020 5:25 PM Solid and Hazardous Waste Dayne Atkinson Additional Reviewer Completed 06/26/2020 7:06 AM Public Utilities Operations Support Joseph Bellone Additional Reviewer Completed 06/26/2020 8:45 AM Public Utilities Department Dan Rodriguez Additional Reviewer Completed 06/26/2020 10:44 AM Public Utilities Operations Support Tara Castillo Additional Reviewer Completed 06/26/2020 1:54 PM Facilities Management Drew Cody Director - Facilities Skipped 06/30/2020 12:13 PM Public Utilities Department Drew Cody Level 1 Division Reviewer Completed 06/30/2020 12:50 PM Public Utilities Department George Yilmaz Level 2 Division Administrator Review Completed 07/01/2020 8:20 AM County Attorney's Office Jennifer Belpedio Level 2 Attorney of Record Review Completed 07/01/2020 9:11 AM Office of Management and Budget Debra Windsor Level 3 OMB Gatekeeper Review Completed 07/01/2020 9:34 AM County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 07/01/2020 10:34 AM Budget and Management Office Ed Finn Additional Reviewer Completed 07/01/2020 12:07 PM Office of Management and Budget Laura Zautcke Additional Reviewer Completed 07/01/2020 1:13 PM County Manager's Office Nick Casalanguida Level 4 County Manager Review Completed 07/05/2020 7:50 PM Board of County Commissioners MaryJo Brock Meeting Pending 07/14/2020 9:00 AM 16.C.7 Packet Pg. 1658 PRI}PERTY UALIIE 2390 Markley Ave Naples, FL 34117 16.C.7.a Packet Pg. 1659 Attachment: Appraisal Report (12780 : 2390 Markley - Gaut) Property owner and legal description PEp.rttr SuDm.ry ?rdib m:87!ml tlr./r.|ir GAt I,xlmllI TtaaIw rng{ 2ilIrltlrtY^Uf Ot' 1lAIlIS 9a l&r'H-, 2:m IAixLEY AYE S&.p Xc otror t2aclt il ,4t 11 a Zr rlnc lfflra C IIrua C ffii/a 5 rcol t3ro l. fl 6a Ejba 2aT Srtb l(!-IrEraallllE th.gra r - srrrrilrvrEHrur garory xADtrs Slrzm:f,o xlt, 4 AttT Ail 'Cdrn bd 5 x?xa ac'l gtr R Idt* 4 f.qr ZT Id ll3l1 Sdroa 5-0:t Ibt-a rC&irtm fr 43071 16.C.7.a Packet Pg. 1660 Attachment: Appraisal Report (12780 : 2390 Markley - Gaut) Vacant Land Appraisal Report This appraisal reporl rs sublect to $e lollowing scope ot work. intended use. intended user, definfion of market value, statement ot assumptims and limiting coflditions, and certificalions Modficalions, additions. or delstions lo fie intended use. intended user, deinition ol rnarket value. or assumptons and limiting condfions are not permitted The appratser may expand the scope of wolk to include any additiond res€arch or analysis necessary based on 1ie complcxity ot $is appraisal assignlnem. Modificalions or deletions to the certifications are also not permitted. Howeyer, addfional cerlificatons that do not constiMe malenal alterations to this appraisal report, such as those required by law or tiose related to the appraaser's continuing education or manbership in an appraisal organizalion. are permined SCOPE 0FttORK: The scope ot work for this appraisal is detined by the complexity of $is appraisal assrgnment and the reporting requrrements of this appraisal report torm. including the followang d€initon ol market value, statGment ot assumptions and limiting condtons, and certifications. The apprarser must. at a minimum: (1) perform a complete yisual inspection of the interior and exlerior areas of lhe subiect propcrty, (2) inspect the netghboftood, (3) inspecl each ol lhe corpamble sales lrom aI least fie stEet. (4) research, verity, and analyze data lrom rcliable public and/or pnvate sources. and (5) repon his or her anatysis, opinions, and conclusions in fiis appraisal report. |i{IE{DED USE: Ihe irtended use of this appraisal repon is tor the lender/client to evaluatc $e property fiat is fie subject of this appraisal for a mongage linance transaclion II{IETIDED USER: The intended user of his appraisal report is fie lender/clienr. DEENmoN 0F MARKEI VALUE: The most probabk price Mrich a property should bring in a comp€litive and open market under all conditions requisite to a lair sale, $e buyer and scller, each acting prudenty, knowledgeably and assumang the price is not affected by undue slimulus lmplicft in this defnition is th? consummation ot a sale as ot a specified date and the passing of ti0e lrom seller to buyer under conditons whereby: (1) buyer and seller ar6 \Dically motivated; (2) both parties are well anforn€d or well advised. and each acting in what he or she considers his or her own best interest: (3) a reasonable time as allowed for e)gosure in $e open market; (4) paym€nt is madc in terms of cash in U S dollars or in temsof linancial arangemeflts comparable thereto; and (5) the price represerts the normal consideration tor $e property sold unaffected by special or crealive financrng or sales concessions' gramed by anyone associated wlth fie sale The use of the appraisal report is for Bayshore CRA internal decisions and the users of the appraisal report is the same including the Collier County BCC. / H a B r.a art ccni{taratd, &! h! ral.l ryroaoh a dtrdarl(l 'ntt njlda Ttir aFa'rr/r p-*ra and aa!,l. o, Ei a.r 'rar{,rt to T*aoI lo .a|aiiitfi trilmdir'3 s irPcthfjc.I cDndtcn, TI! nia arlrdrc b rJJa ar! rdaEltd. rEGr, afly ln. alglrr |o tnt r.|orarEr ralpa cl ltt alig/rnt l rU coft ianr ln|, b! altabo tht lO hbr t Ui O, u,*tu*rl tdFrI| crondrtlcrr rhal a rll: *O ltB arafct p.qrrly Tlt'7p#q!Fi, 16.C.7.a Packet Pg. 1661 Attachment: Appraisal Report (12780 : 2390 Markley - Gaut) Naples Market Activity and Market Area t{APLES AREA REAL ESIAIE ACTIVlTY Feb1J{y 2@0 cqrp{€d wfh Fabru{y 2Ol9 berEErt rtDottrng uirE lq.r*d li{rr&s) $335,000 in February 2019. Broken down by property type, median sales prices rose 5 percent for single family homes and nearly 7 percent for condominiums in February 2020 compared to February 2019. Because the federal govemment enacted stricter standards for financing following the recession in 2008, "most buyers in the last 10 years have purchased homes using cash or conventional financing with significant down payments," said Adam Vellano, west coast sales manager, BEX Realty - Florida. "This has created larger amounts of equity in the market and, with our current balanced inventory, we can absorb a short disruption." Mr. Vellano added that we are not facing a housing crisis like what we experienced in 2008 because we don't have a lot of highly leveraged owners with second mortgages that will be forced into foreclosure. The NABOR February 2020 Market Reports provide comparisons of single-family home and condominium sales (via the Southwest Florida MLS), price ranges, and geographic segmentation and includes an overall market summary. The February 2020 Market Report also showed a 6-month supply ofinventory for properties under $500,000, while properties priced above $500,000 are at an 8-month supply. Interestingly, there is currently a 14-month supply ofinventory for properties priced above $2 million. IIVERAII.IIIVEI{TIIRY OVERALT PEIIOING MTOIAil CTtlSEO PRICE OAYS O1{ MARI(ETCLOSEO SAI.ES 16.C.7.a Packet Pg. 1662 Attachment: Appraisal Report (12780 : 2390 Markley - Gaut) Naples Market Activity and Market Area t G.d.nd Sdo! I J!JGrc€nhouse!9 r nty Landllr 9 €lY6hr MulchinO V a Recycling hc 6nt .., lll I l'i^ ^t- 9sourhviesr noridE "e?::jtt:::t:9,xfi,lt ., Preaerve Market Analysis "The February report is a continuation of the incredible pace of the market we saw in January, with impressive results across all categories and price ranges," said Mr. Huskey. "These figures reflect the market in advance ofthe coronavirus impact, which will no doubt be evident in March. The reality is business is continuing, albeit at a far slower pace as the Realtor community and the public enact the recommended precautionary steps to enswe the situation is short-lived. But, the first two months of the year confirmed that Naples is more desirable than ever, an attraction which will be sustained long after concems of the virus have passed." L] 16.C.7.a Packet Pg. 1663 Attachment: Appraisal Report (12780 : 2390 Markley - Gaut) Approaches to value are the methods or procedures by which valuation ofa property is ascertained. For different property, different approach to value is used. There are three types of approaches to value and they are sales comparison approach, cost approach and income capitalization approach. Sales comparison approach The sales comparison approach is the most commonly used approach in real estate appraisal practice for determining the value. In this approach to value, the property which is being appraised is compared to recently sold properties which are of similar types. This is done for deriving a value indication. For that, the property being appraised is compared to comparables that are adjusted for size, acreage, amenities, time, etc. The appraiser's experience is important when it comes to understanding the adjustments which are reasonable for a particular market area. The value ofone property in a certain area may be high but it may not be of that value in a different area. This approach to value is usually used for valuation ofvacant land, improved properties or lands considered to be vacant. This approach is preferable when there is sufficient availability of comparable sales. Cost approach The cost approach to value estimates the value ofa property by determining the cost that will be required for constructing a replacement or reproduction ofthe same property after deduction of accrued depreciation. Accrued depreciation means decline in the property's actual value over the period of time due obsolescence or wear and tear. Income capitalization approach This approach to value is used to derive a value indication for a property that generates income. This is done by finding property value by converting the anticipated benefits. This conversion can be done in two ways. The income expectancy ofone year can be capitalized at market- derived rate of capitalization or rate of capitalization that shows a specified retum on investment, income pattem ald change in the investment's value. Again, at specified yield rate, the yearly cash flows for holding period and reversion can be discounted. In this approach, the future benefits ofa property's present value are estimated. The Sales Comparison Approach is used in this appraisal assignment. The Appraisal Institute defines highest and best use as follows: The reasonably probable and legal use of vacant land or an improved property that is physically possible, appropriately supported, financially feasible, and that results in the highest value. Applying the four tests to the subject property, the highest and best use for the parcel is improved residential. 16.C.7.a Packet Pg. 1664 Attachment: Appraisal Report (12780 : 2390 Markley - Gaut) SHORT FORM REPORT REarDgxrul rPPqlr3lL yaLUATtoia torr hc (X)JJ?|IOOOJ Adar.rn :yrc \trn[t ft Ol.r \A?Lts I-$;---l'.'zte J{l tl L.t.l Jr a9 2, ll t,Z Or trl/.tOrNhtI|orN_!rtlrt(OR1!t0ICll6f, !ir!- I r o'rtb nt!t. JI 5 TIIE AE$ID'}TIAL : tlt[.8 4,r. fE r.r.I Lrrlrt SJBJECT PROPER'Y COMPARABLE NO .COIIPAiABIE XO 2 CO PARASTE NO ] ]]90 MARI(LEY A\tr..t.O WASFBURN AVt 19} rvlsA AVE ]TEO SMIIH RT) Prccrurry ro 6l&t.rl Tx rO oot3r6/@01 fx tD m3t692C@J rx rD oosr6ao:c.0, Sa€5 Prl(r s265 000 tt!9 0q)!ro0.0{o U^l Pn@ lfr sr 150 sF 222 SF Dsla So(,fca PROPERTY AFPR RiC P.rp.{y AFnE+r Sraa O.t Dror.ri) ADprrrror liit?r O.t.Pro!,crw Allra,aar Srler Oatr frrtr oI sr& a r.r. AdltlrtsrEnl t]fscHtPI rct +/-3 A(!)!lhacl OE6CRIPTI?N ..,-s ,diurh.rr ofscRrPI rL$r .r.t lO.lrr,I cl ost !l 7r0 SD closEo r(}r9 lc closEo r/rs STYLE r slof,Y / 1,t53 Sr EO /2 02. SF 2 SIY , 2002 sr tc EO r 1,350 SF t15 s0 BAAN ] GINAGE BAR'{ T SIASLE BARN 6 STAA.E l0 \RAGE .CAR POI sc AGE 1 BAR'{ ]SI'li ACRT CT 5 ACRES IACRES Ir5 A00 5 ACRES SU 3 ACRES Irl POO-POCL r F|RE Pr, cEc(s25 Cla I/OBI-E HUN sc POOI r DfCX i0 AG:YR 2O2 YR - 1 965 1i: ,lt'YR. rgta t20 @3 YA- 2m1 t0 LANA I ',ORC H I}HAI ] REAR POFC{S MILAR io rilL^w orRs sc 3r.000 sabt or rrnan6rne CorE it,fflr CAS-l CASH clslr lLr ldj (TorJ)A0() 30,m A0() 2c 000 AOO 20 000 lndirlad Vrlue oI SubFcl t2c5 J:5 s339 00c s320 000 Eg!Ef!!_e!..lilltDm Conlrltlng ln. ttt linfld .y.lE!L m.*rld.tr, lhc a{.blHtn riC. gl vat|.i-gllXlffi rofS!ffi-Yf-ffifffi- d numEl I sli(n a i Ino lita o, t|. tbj.ci pE!.n, .o-, hit cornp.[bb *at xtrrbd t) $rO qtr Tta cffio.rth r rn . b.ttr E tifi horr*r ,|. p.rc.1 r rnElh. bul .f..r tc Da ,n bc(.r condtion l]@ElEll lrl trCrl(ttont O AfillllJ: Il! hraral{ BnnO tg9la'loO t a-rtrlnt, lnd Ore hlgharl aid tatl u!. ol lha OrrEal ii COntUaEd yrcamlE a lLttantt ot tl a B lla art oo,!Etat!d, ar{ tl. raLr 4croach o csBrdartd moat lcliabb ria tFraraatr o.tairt't ano ttop! o, $di( a.r tavrnt lo tn, anatac.ntllct l9o&aol to a(raodr.a.y aaaunt[ors or nyiE(hlticll condaont Tl\t l]rl. &Dloadr.E b yalur l|! t[.r!Itarq{, trrrEri.r, c,rty [!a rrtar Irorch 4dra b tna grdadrcoga cl tlrc ,tJgrl't.rlt E!!dR.cu!olrxEfiA[fi,t..'DIo.ch..wl,t$n.hEdItlEU.luti.,ldlh[prrErlIn.Dl..-9p@ Prnronf ara @nc,utonr lnat Da alLaLd oua to hhr l,tlrn c unknowi adrarE cdrdrtDna thx ar|.l sllr llt aublact !.!9at1y rrdr.., dt. Io @rrttdt, f,r. !d Y *r ir *rt5.d0 16.C.7.a Packet Pg. 1665 Attachment: Appraisal Report (12780 : 2390 Markley - Gaut) IttlLE 'll CErTHGInOI Ifr rlhcr c.rth! .nd !o.rc. thd: il. I havc m l|tracol p(GpeanMe hEnc ln rha Fo bthe aublect b thts l€port, ati lhrve m pr€lart o. ptplp..dyc ldon lcdo.1 0|ls 4orahrl ngort I o!(w thal tny I so namrd b qual0ed b Frbm ha llrlt. I hrvc nd autho.izld rryonc b mrl! r 16.C.7.a Packet Pg. 1666 Attachment: Appraisal Report (12780 : 2390 Markley - Gaut) Location map .) I t i f Allio.ro. irr.! tr r E 16.C.7.a Packet Pg. 1667 Attachment: Appraisal Report (12780 : 2390 Markley - Gaut) Comparable Sites Comp 1 1840 Washburn (2 lots) Comp 2 1904 lvisa Ave Comp 3 3180 Smith Rd 16.C.7.a Packet Pg. 1668 Attachment: Appraisal Report (12780 : 2390 Markley - Gaut) comp 1 comp 2 ,Ja14 16.C.7.a Packet Pg. 1669 Attachment: Appraisal Report (12780 : 2390 Markley - Gaut) Current comparable listings for sale in the area l.l66l Markley Ave MLS#2 r9080330 l5ac(3 lots) Barn only Blackbum Rd 5 acres s339,000 $230,000 (vacant land) 16.C.7.a Packet Pg. 1670 Attachment: Appraisal Report (12780 : 2390 Markley - Gaut) VALUE CoNCLLSToNS Market Value, As ls, Vacant Land Fee Simple June 8, 2020 $315,000 The valuc conclusio(s) are subject to the followurg h),potletical couditions and exfiaordimry conditions. These conditious rnay affect the assipouent results. Hypottredcal Couditions:No[e. Extraordinary Assruuptious :Courplcte access to the subject property was not gauted for thc purpose of this appraisal. Ir is an exraordurary assuuprioo the condrtion of the interior and ponions of the exterior that werc uot visiblc arc conmensuate widr the ponions that were visiblc. Further- we assrunc thc hterior ffnish is smrilar to a typical buildurg of this BDc ard aee. 16.C.7.a Packet Pg. 1671 Attachment: Appraisal Report (12780 : 2390 Markley - Gaut) LOCATION MAP Landfill Optimization Project 2390 Markley Avenue, Naples, FL 34117 Folio Number 00337440003 2390 Markley Avenue 16.C.7.b Packet Pg. 1672 Attachment: Location Map (12780 : 2390 Markley - Gaut) 16.C.7.dPacket Pg. 1673Attachment: Agreement for Sale and Purchase - Signed (12780 : 2390 Markley - Gaut) 16.C.7.dPacket Pg. 1674Attachment: Agreement for Sale and Purchase - Signed (12780 : 2390 Markley - Gaut) 16.C.7.dPacket Pg. 1675Attachment: Agreement for Sale and Purchase - Signed (12780 : 2390 Markley - Gaut) 16.C.7.dPacket Pg. 1676Attachment: Agreement for Sale and Purchase - Signed (12780 : 2390 Markley - Gaut) 16.C.7.dPacket Pg. 1677Attachment: Agreement for Sale and Purchase - Signed (12780 : 2390 Markley - Gaut) 16.C.7.dPacket Pg. 1678Attachment: Agreement for Sale and Purchase - Signed (12780 : 2390 Markley - Gaut) 16.C.7.dPacket Pg. 1679Attachment: Agreement for Sale and Purchase - Signed (12780 : 2390 Markley - Gaut) 16.C.7.dPacket Pg. 1680Attachment: Agreement for Sale and Purchase - Signed (12780 : 2390 Markley - Gaut) 16.C.7.dPacket Pg. 1681Attachment: Agreement for Sale and Purchase - Signed (12780 : 2390 Markley - Gaut) 16.C.7.dPacket Pg. 1682Attachment: Agreement for Sale and Purchase - Signed (12780 : 2390 Markley - Gaut) 16.C.7.dPacket Pg. 1683Attachment: Agreement for Sale and Purchase - Signed (12780 : 2390 Markley - Gaut) 16.C.7.dPacket Pg. 1684Attachment: Agreement for Sale and Purchase - Signed (12780 : 2390 Markley - Gaut) 16.C.7.dPacket Pg. 1685Attachment: Agreement for Sale and Purchase - Signed (12780 : 2390 Markley - Gaut) 16.C.7.dPacket Pg. 1686Attachment: Agreement for Sale and Purchase - Signed (12780 : 2390 Markley - Gaut) 16.C.7.dPacket Pg. 1687Attachment: Agreement for Sale and Purchase - Signed (12780 : 2390 Markley - Gaut) 16.C.7.dPacket Pg. 1688Attachment: Agreement for Sale and Purchase - Signed (12780 : 2390 Markley - Gaut)