As you are aware, the redevelopment of the southeast quadrant of U.S. Highway 19 and Main Street has been an on-going venture for several years now. In as much, the property which is occupied by Truist Bank (formerly SunTrust Bank) has always been included as part of the planned project. In that respect, the property is currently positioned and available for interested parties to submit their written LOI’s.
In order to prepare for the eventuality of sale, I commissioned for an appraisal of the site and it was completed on November 21, 2021. The property is 2.18 acres in size and contains a 21,172 sq. ft. building with no significant items of deferred maintenance. The appraisal report provides a market value of the property of $2,000,000.
It is important to note that the city owns the abutting property located to the east of the subject property and in all probability that the property will be attached in some respect to the redevelopment of the Truist property. A copy of an aerial map which delineates the boundaries of both properties is attached for your reference.
In closing, if the CRA is successful in obtaining control of this important piece of property, it is my plan to let a Request for Proposals within sixty days in respect to the future development of the property.
RECOMMENDATION:
The recommendation is to authorize the Executive Director to release a Letter of Intent to Truist Bank for the purchase of their property located at 6128 U.S. Highway 19 in the amount of $2,000,000.
BUDGET / FISCAL IMPACT:
There are a couple of different ways upon which the financing of this expenditure should be considered and they are dependent upon the following variables:
- Length of time that the CRA will hold the asset; and
- Determination as to whether the CRA will ultimately retain the property as an asset.
If the property will not be maintained as an asset of the CRA, then it should be purchased through a loan with the Water and Sewer Fund with repayment at the time of title transfer.
If the property is to be maintained as an asset, then the purchase should be financed through the issuance of debt by the CRA.