The subject property is located on the west side of US Highway 19 on the southwesterly bank of the Cotee River.  Key attributes of the subject property are set forth in the below table.

As more particularly set forth in the attached excerpts, the Community Redevelopment Plan (the “Plan”) and associated planning efforts, including the “Downtown and Highway 19 Corridor Master Plan,” identify the subject property and greater “North Gateway Area” as one of the community’s most important opportunities for redevelopment and authorize the Community Redevelopment Agency (the “Agency”) to pursue the assemblage of property in the area. 

Important concepts include redeveloping the subject motel and surrounding area into:

• A mix of commercial and recreational uses, including a branded hotel, destination retail shops, and marine uses, and/or water-oriented residential development.
• A visually distinctive, walkable district that enhances the gateway and takes advantage of the waterfront location, incorporating a mix of uses, internal streets, public gathering places on the River, landscaping enhancements, and boat launch. 

The property owner and Agency Executive Director have been discussing a possible sale of the subject property for several years, and those conversations became increasingly serious as the City’s economy continued to improve, the Agency worked through its list of already started strategic priorities, and the City began exploring the possibility of a partnership with Pasco County.  As the Board is aware, the County has acquired several parcels in the North Gateway Area and is interested in partnering with the City, especially if the proposed redevelopment provides for public access to the waterfront and additional boat launching facilities.

Earlier this month, the property owner and Agency staff 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 $5.5 million.
• To be paid via first deposit already made, second deposit of $275,000 within three business days of your approval, and the Balance at Time of Closing.
• Contingency Period of 45 days, during which the Agency can cancel for any reason.
• Anticipated Closing Date on or before December 16, 2024.
• Accommodations:
• Most of the Closing Costs would be paid by the CRA pursuant to Section 17. 
• If necessary, additional security for the site would be provided by the CRA due to the Seller’s choice to cease motel operations.
• Seller will be allowed to salvage materials from the property (due to its planned demolition following sale).

It is important to note that the subject property was not listed for sale.  As a result, there was no list price anchoring the negotiations, and it might be fair to state that the property owner was not as motivated to sell as someone who had actively listed his property.  As a result, CRA staff has attempted to fashion a win-win-win outcome—a win for the property owner, a win for the Agency, and a win for the community—by considering the owner’s expectation of value, the appraised value, and the potential value of the redeveloped site, settling at a proposed purchase price approximately 7% over appraised value and supporting the aforementioned accommodations. 

If the proposed Purchase and Sale Agreement is approved by the CRA Board, staff would propose the following “Next Steps,” the order of which is subject to change. 

• Pay Deposit #2 within 3 business days.
• Completion of Due Diligence during the Contingency Period, including but not limited to Phase I Environmental Site Assessment, review of Survey, review of Title Policy, and arrangement of financing.
• Close the purchase and sales transaction or before December 16, 2024.
• Demolish the building.
• Work with Pasco County leadership to draft the framework for partnering on a proposed redevelopment project and receive approval of same by the legislative bodies. 
• Carry out a master planning process that:
• engages all stakeholders, including the public; County, City, City of Port Richey, and other institutional partners; the real estate development community; and hotel, restaurant, marine, and other industry sectors.
• results in the adoption of a conceptual master plan that will be the basis for a request for proposals and/or public private partnership that leads to bringing the master plan to life. 
• Carry out a solicitation/disposition process that effects the Master Plan pursuant to a Redevelopment Agreement.
• Carry out the Redevelopment Agreement.
• Celebrate the opening of a landmark waterfront mixed use destination.

Agency staff is recommending approval of this request because:

• It is directly supported by, and serves to implement, the Plan.

• The site, especially in combination with Pasco County’s assembled property, will accommodate a transformative redevelopment project that can turn an aging roadside motel into a landmark waterfront mixed use destination that anchors the City’s North Gateway Area, continues the expansion of our City’s renaissance out of downtown, advances a decades-in-the-making revitalization of the US Highway 19 Corridor, increases public access to the Gulf and River, and brings us closer to realizing our vision for the future (best walkable, waterfront, historic hometown in Florida).
• The anticipated redevelopment would have a significant economic impact on the community, including:
• Construction and long-term direct, indirect, and induced jobs.
• Increased consumer base with above average buying power.
• Tens of millions of dollars in private investment.
• Aggregate assessed value in excess of $50 million.
• Increased tourism.