The request is for City Council to conduct a second and final reading of Ordinance No. 2022-2253 in regard to the exchange of real property with Pasco County specifically related to property located at 5640 Main Street and providing for the conveyance to the County of property generally located at 6220 Pine Hill Park as well as two lots located across the street from the northeast corner of the park.

The request is also to authorize the City Manager to enter into all related documents in respect to the exchange of real property with Pasco County.

As Council is aware, the City has been in negotiations with Pasco County for the exchange of the Pine Hill Ball Park property along with two residential lots located across the street from the park for the property situated at 5640 Main Street to include the county’s portion of the adjacent Nebraska Avenue Parking Lot. In that respect, the properties were appraised on June 21, 2021 by Tod Marr & Associates LLC. Based on the assumptions provided, the value for the City’s 9.93 acres of property was determined to be $1,140,000. The value for the Pasco County property which consists of two properties located generally at the southeast corner of Main and Bank Street and the second being located at the south of Nebraska Street, east of Lincoln Street and North of Missouri Street is $1,050,000.

As you can see, there is a $90,000 difference in the two values. As a result of a significant variable though I believe that the difference between the two variables is much distinguishable. To explain, in order to receive the highest market value for the city’s property the appraisal was based on the conjectural assumption that the city would allow an economic use of the property in the future rather than the continued use of the property as open recreational space. As a result of this methodology having been applied the city’s property certainly bears a greater value than it would have if it were only considered as it currently exists in a governmental zoning class and continued use as a park.

Lastly, in order to provide an appropriate time frame for the remaining tenant located in the building to relocate, whom incidentally is the Department of Health (DOH), the City has agreed to allow a period of up to 24 months after the closing on the exchange of real estate for them to do so. It should be noted at this time that the DOH has secured a new location and the renovation work to accommodate them as a tenant has commenced. Therefore, I believe that it is rather unlikely that they will require the full time period being recommended. Nonetheless, the request is for the City Council to authorize me as your City Manager to enter into an Extended Occupancy Agreement with Pasco County related to this matter. Under the terms of the agreement, Pasco County will be responsible for all utility expenses and maintenance of the facility and no additional consideration will be due by them for use of the property.