 |  | 5919 MAIN STREET . NEW PORT RICHEY, FL 34652 . 727.853.1016 |
| TO: | Members of the Community Redevelopment Agency | | FROM: | Gregory J. Oravec, Assistant City Manager/Economic Development Director | | DATE: | 3/19/2024 | | RE: | Proposed Purchase and Sale Agreement for 6348-6352 River Road (a/k/a the "Montemayor" Property) - Page 5 |
REQUEST:
This request is to approve the purchase of 6348-6352 River Road (A/K/A the “Montemayor” Property) for $1.1 million pursuant to a Purchase and Sale Agreement substantially in the form of Attachment “1,” for the purposes of implementing the adopted Community Redevelopment Plan and the “Downtown and Highway 19 Corridor Master Plan.”
DISCUSSION:
As reflected in the excerpted attachments, the Community Redevelopment Plan (the “Plan”) and the “Downtown and Highway 19 Corridor Master Plan” (the “Downtown Plan”) identify the City’s boat ramp park, the existing building occupied by the Chamber of Commerce, and adjoining area as one of the community’s most important opportunities for redevelopment. Accordingly, our team has been working to assemble a redevelopment site from the bridge to the established single family residential neighborhood to the north. As you may recall, the Agency acquired the “Potter” Property located at 6356 River Road in 2021. The Montemayor Property is the missing link, and the Agency’s acquisition of the subject property would complete the assemblage of 2.73 acres of downtown riverfront having approximately 522 running linear feet along the Cotee River, directly across from Sims Park.
Key facts relating to the Montemayor Property include:
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Parcel ID
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05-26-16-0030-20500-0195
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Address
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6348 and 6352 River Road
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Acres
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0.61
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Riverfront
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Approximately 228 linear feet
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2019 Appraised Value
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$410,000
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2019 Taxable Value
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$388,583
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2023 Taxable Value
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$481,999
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Gross Building Area
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3,949 SF
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Year Built
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1962
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Current Land Use
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Downtown
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Current Zoning
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Office
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Highlights of the proposed Purchase and Sale Agreement include:
- Purchase Price of $1.1 million
- To be paid via Deposit #1 of $100,000 on or before March 27, 2024, and the Balance of $1 million at Time of Closing.
- Contingency Period of 60 days, during which the Agency can cancel for any reason.
- Anticipated Closing Date on or before October 31, 2024.
- Closing Costs to be split pursuant to Section 17.
An updated appraisal has been ordered and will be made available prior to the CRA Board meeting of March 19, 2024. Based upon the previous appraised value and the 2023 Total Taxable Value, staff recognizes the possibility that the proposed purchase price will be higher than appraised value. Be that as it may, staff is recommending approval because the subject property is the holdout which unlocks the full potential and value of this assembled site on the waterfront, in downtown, across from Sims Park, on both Main Street and River Road. A generational opportunity has presented itself and a mutually acceptable agreement with the property owner is the best way for the Agency to acquire the Property. As the Board may recall, in 2006, the Florida laws regulating eminent domain were changed so that local governments could no longer take property for the purposes of economic development.
If the proposed Purchase and Sale Agreement is approved by the CRA Board, staff would propose the following “Next Steps:”
- Signing of Agreement within 5 days.
- Completion of Due Diligence during the Contingency Period, including Phase I Environmental Site Assessment, review of survey, and review of Title Policy.
- Procure a Planning/Design professional to lead a community design workshop for the site, which will lead to the CRA Board/City Council adopting a vision and master plan for the Property.
- Closing on Property and start of CRA/City maintenance.
- Conduct Community Design Session(s) with vision and master plan to be reviewed and approved by CRA Board/City Council.
- This vision and the associated design concepts would then guide the Agency and City on the implementation of any desired public improvements on the Property, such as boat ramp, boardwalk, and dock improvements, and inform a Request for Proposals, which the Agency/City would use to effect any desired private redevelopment, such as “Under the Oaks Dining” envisioned by the Downtown Plan.
- Draft and present an RFP to the CRA Board/City Council for approval.
- Issue RFP and review responses.
- “Finalist” Respondent Presentations to CRA Board/City Council for selection.
- Negotiate and approve a Redevelopment Agreement with selected Respondent.
- Effectuate Redevelopment Agreement.
- Open Redevelopment Project to Public and celebrate another community victory.
- Measure change in total taxable value and other key performance indicators.
RECOMMENDATION:
Staff recommends that the Board approve the purchase of 6348-6352 River Road (A/K/A the “Montemayor” Property) for $1.1 million pursuant to a Purchase and Sale Agreement substantially in the form of Attachment “1,” for the purposes of implementing the adopted Community Redevelopment Plan and the “Downtown and Highway 19 Corridor Master Plan.”
BUDGET / FISCAL IMPACT:
Approval of this request would impose direct costs equal to the acquisition cost of $1.1 million plus additional due diligence and closing costs. Additionally, the CRA and/or City should anticipate recurring maintenance costs and the costs associated with the aforementioned Next Steps and Board/Council vision for the Property. Staff would identify and update estimated costs, as appropriate, at each step in the process and as part of the annual budgeting process.
The adopted Agency Budget includes $1 million for property assemblage, more than half of which is available for the deposit associated with this purchase. It is anticipated that the balance of the Purchase Price would be funded in the FY 24-25 Budget. | | | |