TO: Honorable Mayor & Members of the North Port Commission
FROM: Peter D. Lear, CPA, CGMA, City Manager
TITLE: Approve Resolution No. 2020-R-06 for the Option Agreement in the Amount of $10,000 and the Purchase Agreement in the Amount of $1,200,000 for the Purchase of Parcel ID 0791080007, for the Future Utilities Administration and Warehouse Facility and Authorize the City Manager to Exercise the Option Upon Approval of the Comprehensive Plan Amendment and Rezone.
Recommended Action
Approve Resolution No. 2020-R-06 for the Option Agreement in the amount of $10,000 and the Purchase Agreement in the amount of $1,200,000 for the purchase of Parcel ID 0791080007, for the future Utilities Administration and Warehouse Facility and authorize the City Manager to exercise the option upon approval of the Comprehensive Plan Amendment and Rezone.
Background Information
On April 9, 2019, Commission directed staff to move forward with negotiations for the purchase of the property located on Talon Bay Drive. This property consists of ±18.26 acres of land, described as Tract J of Talon Bay Unit One, according to the map or plat thereof as recorded in Plat Book 44, Page 18 of the Public Records of Sarasota County. Once staff was given the approval to start the negotiation process, development of the Option Agreement and Purchase Agreement ensued. Beginning in early May 2019, numerous emails, meetings and conferences have occurred with the neighboring developments, Talon Bay and LaCasa Mobile Home Park, resulting in several design and layout concessions on the Utilities’ building and property.
The Option Agreement grants the City an exclusive option to purchase the property. The price for the option is $10,000, which shall be applied towards the purchase price of the property at the time of closing. The option term shall begin on the date the last party signs the Option Agreement and expires June 15, 2020 at 5:00 p.m. This will allow for the time needed for the required Comprehensive Plan Amendment and Rezoning Application to be reviewed and fully approved. In the event the City does not exercise the option, the $10,000 shall be forfeited.
Due to the need to store a nominal amount of materials and equipment (mainly trucks overnight) outside, the current zoning and comprehensive plan designation must also be modified. The proposed rezone will result in development of the property at a lower intensity when compared to the existing, permitted zoning. Therefore, on November 15, 2019, Stantec submitted a Comprehensive Plan Amendment and Rezoning Application to the Planning and Zoning Department for review. The Planning and Zoning Board is scheduled to hear this item February 20, 2020. The Comprehensive Plan Amendment is tentatively scheduled for Commission review on March 3, 2020, contingent upon the approval of the Option Agreement to purchase the land.
Under the Purchase Agreement, the seller is conveying ±15.26 undivided acres of the property to North Port Utilities for the purchase price of $1,200,000 and agrees to donate the remaining ±3 acres of the property. The closing on the property is anticipated to take place by June 15, 2020, unless otherwise agreed upon, and is contingent on the approval of the Comprehensive Plan Amendment, Rezone and City Manager’s Exercise of the Option as outlined in Section 3 of the Option Agreement. A provision is included in the Purchase Agreement that increases the purchase price by $10,000.00 for each month that the closing is delayed beyond June 15, 2020, due to no fault of the seller, therefore time is of the essence in the closing of this property.
Utilities recommends Commission approval of Resolution No. 2020-R-06 for the Option Agreement for immediate execution and approve the Purchase Agreement for execution contingent upon the approval of the Comprehensive Plan Amendment, Rezoning and upon City Manager’s Exercise of the Option.
The Resolution, Option Agreement and Purchase Agreement have been approved by legal as to form and correctness.
Strategic Plan
Support the beautification and revitalization of our neighborhoods; establish City facilities strategically throughout the City
Financial Impact
|
Account Number |
Project No. |
Available Amount |
|
420-6060-536.61-00 |
U18UAB |
$ 1,200,000.00 |
Procurement
The purchase of this property is being procured pursuant to Chapter 2 - Administration, Article VIII - Procurement, Section 2-403 - Exemptions, (a), (3), c, Real property, real estate brokering or appraising of the Code of the City of North Port, Florida.
Ariana R. Fileman, as Successor Trustee of the North Port Development Trust, under Trust Agreement dated July 11, 1997 - 201 W. Marion Ave., Suite 1208, Punta Gorda, FL 33950
Attachments:
1. Resolution No. 2020-R-06
2. Option Agreement including Exhibit A - Sale & Purchase Agreement
3. Purchase Agreement including Exhibits A & B
4. PowerPoint Presentation
5. Property Information Report
6. Procurement Exemption Request Form
Prepared by: Nicole Brown, Business Services Coordinator
Department Director: Richard Newkirk, Utilities Director