 |  | 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: | 4/18/2024 | | RE: | Proposed Purchase and Sale Agreement for 5432 Acorn Street - Page 7 |
REQUEST:
This request is to approve the purchase of 5432 Acorn Street for $380,000 pursuant to a Purchase and Sale Agreement substantially in the form of Attachment “1,” for the purposes of implementing the adopted Community Redevelopment Plan.
DISCUSSION:
As reflected in the attached excerpts, the Community Redevelopment Plan (the “Plan”) and associated planning efforts, such as the “Rivergate-Palm District Conceptual Master Plan,” identify the Rivergate-Palm District (the “District”) as one of the community’s most important opportunities for redevelopment. Accordingly, our team has been working to assemble a critical mass of properties within the District for catalytic redevelopment projects which will effectuate the Plan.
The subject property is located directly to the south of the Acorn Street public right-of-way and Stonehaven. Highlighted attributes are set forth in the below table.
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Parcel ID
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05-26-16-0030-20900-0010
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Acres
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0.27
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Riverfront
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Approximately 67 running feet
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2023 Taxable Value
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$211,730
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2024 Appraised Value
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$380,000
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Gross Building Area
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1,109 SF (with detached garage)
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Year Built
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1932
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Current Land Use
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Low Density-5
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Current Zoning
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R-2
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The subject property was listed for sale on the open market with an asking price of $421,000. As a result, our administrative team looked upon its acquisition as an opportunity worthy of the Board’s consideration because:
- In combination with the Acorn Street public right-of-way, it would create adequate space to create a riverfront amenity or access point to build around in accordance with the Plan.
- It was specifically featured in the Rivergate-Palm District Conceptual Master Plan.
- It connects to Stonehaven and could, therefore, connect to Boat Ramp Park if a Riverwalk/Boardwalk concept is pursued, thereby truly connecting both sides of the District with an amenity that is an attraction in its own right.
- Could unlock additional value for the redevelopment of the the SunTrust-Gateway Property.
- Provides additional opportunities for stormwater treatment.
As part of evaluating this opportunity, staff ordered an appraisal of the subject property which estimates the as-is value at $380,000 and successfully negotiated the attached Purchase and Sale Agreement, which is only binding upon your approval. Highlights of the proposed Purchase and Sale Agreement include:
- Purchase Price of $380,000 to be paid via Deposit $11,400 on or before April 25, 2024, and the Balance at Time of Closing.
- Contingency Period of 30 days, during which the Agency can cancel for any reason.
- Anticipated Closing Date on or before May 24, 2024.
- Closing Costs to be split pursuant to Section 17.
If the proposed Purchase and Sale Agreement is approved by the CRA Board, staff would propose the following “Next Steps:”
- Pay Deposit within 5 business days.
- Completion of Due Diligence during the Contingency Period, including but not limited to Phase I Environmental Site Assessment, review of survey, and review of Title Policy.
- Closing on Property and start of CRA/City maintenance.
- Study the potential use of the Property in context of the Rivergate-Palm District Conceptual Master Plan, the potential for a Riverwalk connecting to Boat Ramp Park, and the desired redevelopment of the SunTrust-Gateway Property.
- Carry out desired improvements on the subject property as part of a Work Plan associated with the aforementioned larger concepts.
As you know, our team has already achieved several important successes within the Rivergate-Palm District, including public private partnerships, like the development of Keiser and Comfort Inn & Suites, public investments, like the Parking Garage and Gateway Sign, and property acquisitions to date, like the Potter, Montemayor, SunTrust, and Gateway Church properties. At the same time, much work remains, including the redevelopment of the “SunTrust-Gateway” Property, the improvement of Boat Ramp Park, the improvement of Main Street from the River to US HWY 19 and more. Though the subject property is relatively small in size, our administrative team believes that it could have a big impact on the successful redevelopment of the District.
RECOMMENDATION:
Staff recommends that the Board approve the purchase of 5432 Acorn Street for $380,000 pursuant to a Purchase and Sale Agreement substantially in the form of Attachment “1,” for the purposes of implementing the adopted Community Redevelopment Plan.
BUDGET / FISCAL IMPACT:
Approval of this request would impose direct costs equal to the acquisition cost of $380,000 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’s 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, of which $875,000 is currently available for this purchase.
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