This parcel is an income producing property with a small home utilized for short-term rentals. According to the Pasco County Property Appraiser the Taxable Value is $117,367. Staff ordered an appraisal of the property and the value was determined to be $190,000. The owner, at that time, wanted $250,000. Staff made an offer of $210,000, which was rejected due to an offer by the current owner of $250,000, which ended our negotiations. Last Fall, the current owner indicated he was willing to sell the property to the City for $260,000 which was equal to the amount the he purchased the property for along with some expenses that he has incurred since he purchased the property in July of 2020.
The property owner is still willing to sell the property to the CRA and has presented the following options which are included as an attachment to this item:
Option #1: Selling price $275,000-Deposit 25% ($68,750) down held in escrow, close between September 15th 2021 and September 30th 2021. Seller retains the option to move both structures at their cost to another nearby location by December 31,2021, or seller relinquishes all rights to said structures. City to supply a list of city owned lots, offer one from that list at no charge which the seller will select, and to assist in all necessary permitting related to moving these structures.
Option #2 City to assume property for $275,00 closing by March 31, 2021, subject to terms and conditions of the lease in place with the current tenant. City to act as landlord upon closing. Seller retains the option to move both structures at their cost to another nearby location between September 15th and December 31,2021, or seller relinquishes all rights to said structures. City to supply a list of city owned lots, offer one from that list at no charge which the seller will select, and to assist in all necessary permitting related to moving these structures.
At the City Council workshop on January 12, 2021, several Council members indicated that the property was not suitable for a boat ramp but could work as a kayak launch and pocket park. A kayak launch would require that the remainder of the property would be needed to create the necessary parking. The current Master Planning process does not contemplate a public use for this parcel and places the emphasis of our investment on the north side of the current boat ramp.
RECOMMENDATION:
City Council to consider the options as presented by Mr. Sorensen, the property owner, and determine whether or not it is in the city's best interest to pursue the property at this time in regards to the amount of investment required to utilize the property and the priority of other established projects. Therefore, the staff recommends that this purchase be deferred to a future fiscal year.
BUDGET / FISCAL IMPACT:
$275,000