Placement: Second Reading of Ordinances
Action Requested: Motion / Vote
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Ordinance 25-45, an Ordinance of the City of Port St. Lucie, Florida, Authorizing the Acquisition of Real Property from St. Lucie County Described as Tract K, Port St. Lucie Section Sixty-One, According to the Plat thereof, as Recorded in Plat Book 24, Page 6, of the Public Records of St. Lucie County, Florida, and Authorizing the Conveyance of a Lease Agreement to St. Lucie County for Said Real Property; Providing for Conflict; Providing for Severability; Providing an Effective Date.
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Submitted By: Jennifer Davis, Community Redevelopment Agency Director
Strategic Plan Link: The City's Goal of high-quality infrastructure and facilities.
Summary Brief (Agreements/Contracts only)
1. Prepared by: Jennifer Davis, Community Redevelopment Agency
2. Parties: City of Port St. Lucie (Buyer / Lessor) and St. Lucie County (Seller / Lessee)
3. Purpose: As the City and its government continues to grow, the City has the need for additional space for use and development. Having the opportunity to purchase a well-maintained building versus new construction allows this goal to be achieved in a shorter period and with less cost associated. It also allows for much needed growth and expansion for the main city hall complex while moving various City departments to locations necessary in the eastern development of Port St. Lucie.
4. New/Renewal/Modified: New
5. Duration: Pursuant to the Purchase and Sale Agreement, the Inspection Period is ninety (90) days, with a Closing Date thirty (30) days thereafter.
6. Benefits to Port St. Lucie: As the Buyer, the City of Port St. Lucie is securing ownership of real property located at 1664 SE Walton Road. This acquisition will provide for a variety of departments and services to be accessed on the eastern side of Port St. Lucie, as well as provide for much needed office space for City Staff.
7. Cost to Port St. Lucie (Annual and Potential): The Purchase and Sale Agreement allows for a Purchase Price of $4,372,695.20, which is just above the Fair Market Value ($4,200,000) as determined by an independent appraisal in July 2024. In addition, at Closing, the Buyer will pay an additional $427,304.80, which represents the amount agreed upon by both parties as part of the City Center Settlement Agreement. This payment settles any further obligation the City has to the County as part of the City Center Settlement Agreement. Cumulative, the total amount paid by the Buyer to the Seller will be $4,800,000.
Presentation Information: Staff will provide a brief presentation, if requested.
Staff Recommendation: Move that the Council approve the Ordinance.
Alternate Recommendations:
1. Move that the Council amend the recommendation and approve the Ordinance.
2. Move that the Council not approve the recommendation.
Background:
In 2002, the County acquired, designed and constructed a building known as the Dorothy Jo Conrad Annex / St. Lucie County Tax Collector Building at 1664 SE Walton Road. This building was constructed within the general area formerly known as City Center, now known as Walton & One, and was completed just ahead of the City’s construction completion of the event center, parking garage, plaza and overall site infrastructure, all of which anticipated additional development to soon follow. Development of the overall City Center property was put on hold due to failed development obligations by third parties. However, in early 2022, the City acquired a majority of the overall site parcels and was able to move forward with master development of the site. The Walton & One Master Plan was recently adopted by City Council and plans are underway regarding Project DuBey on a portion of the site.
The Tax Collector building is currently occupied not only by the St. Lucie County Tax Collector, but also the St. Lucie County Veterans Services Department. The County expressed interest in acquiring a site that would better meet the growing needs of their agency. In June 2025, they purchased a building located at 8881 U.S. Highway One, with intentions of relocating the Tax Collector and the Veterans Services Department to that site. The County has estimated that it will take up to eighteen (18) months to renovate their new building.
In April 2025, the County entered into discussions with the City about the City’s interest in acquiring the property at 1664 SE Walton Road. County and City staff were able to negotiate a proposed Purchase and Sale and Leaseback of the building so that the Tax Collector and the Veterans Services Department can remain in the building, once sold, until the new building at 8881 U.S. Highway One is ready for their occupancy. A copy of the Purchase and Sale Agreement and Lease Agreement are attached to this agenda item for the Council’s review and consideration. These terms and respective agreements, in substantial final form, were approved by the St. Lucie County Board of County Commissioners at their regular meeting on July 22, 2025.
A brief description of the terms associated with the Purchase and Sale Agreement and Lease Agreement are as follows:
Purchase and Sale Agreement
Property is being sold "as is". The Agreement also provides for the City, at its option, to perform inspections and due diligence during a ninety (90) day Inspection Period. The closing would then take place thirty (30) days after the expiration of the Inspection Period. Pursuant to the Purchase and Sale Agreement, at closing, the City would be responsible for paying:
• Agreed upon Purchase Price of $4,372,695.20
• City Center Settlement Agreement obligation of $427,304.80
• One-half of the cost of any documentary stamps or other transfer tax
• One-half of the cost of recording the Deed
• One-half the costs of the title search fees and the premium for the insurance of an owner's policy of title insurance to the City
• One-half of the closing or escrow fees of the Closing Agent
• Cost of the Title Commitment
• Cost of the Survey
The Purchase and Sale Agreement also provides for a Lease Agreement for the property to the County for a period of eighteen (18) months, for a total rent of $1.00. During the Lease term, the County is responsible for all repairs and maintenance of the property.
Issues/Analysis: N/A
Financial Information: The Purchase and Sale Agreement allows for a Purchase Price of $4,372,695.20, which is just above the Fair Market Value ($4,200,000) as determined by an independent appraisal in July 2024. In addition, at Closing, the Buyer will pay an additional $427,304.80, which represents the amount agreed upon by both parties as part of the City Center Settlement Agreement. Cumulative, the total amount paid by the Buyer to the Seller is $4,800,000. Pursuant to the Lease Agreement, the County shall pay the City $1.00 for the term of the Agreement, with the County assuming all responsibility for the building and site.
Special Consideration: N/A
Location: The subject property is best identified as 1664 SE Walton Road, and is located at the southeast corner of SE Event Center Place and SE Walton Road. It is located adjacent to the MidFlorida Event Center.
Attachments:
1. Ordinance 25-45
2. Exhibit A to Ordinance - Purchase and Sale Agreement and related Exhibits
3. Exhibit B to the Ordinance - Lease Agreement
4. Location Map
NOTE: All of the listed items in the “Attachment” section above are in the custody of the City Clerk. Any item(s) not provided in City Council packets are available upon request from the City Clerk.
Internal Reference Number: 25098-01 (Purchase and Sale Agreement) and 25142-05 (Lease Agreement)
Legal Sufficiency Review:
Reviewed by Margaret M. Carland, Senior Deputy City Attorney. Approved as to Legal form and sufficiency by Richard Berrios, City Attorney.