Placement: Resolutions
Action Requested: Motion / Vote
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Resolution 26-GFC-05, Authorizing the President or the CEO to Enter into and Execute the First Amendment to a Purchase and Sale Agreement for 7.36+/- Acres of Land between the Port St. Lucie Governmental Finance Corporation and Tambone Companies, LLC.
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Submitted By: Jennifer Davis, Director of Community and Economic Development
Executive Summary (General Business):
In March 2026, the Governmental Finance Corporation (GFC) Board authorized the execution of a Purchase and Sale Agreement (PSA) on 7.36+/- acres of land known as Lot 1 in Southern Grove Plat 46 for the purpose of developing up to medical and post-acute medical facilities, together with office and veterinary hospital or clinic uses. The PSA indicated a 52-bed medical facility, but the development is intended to have 54 beds. The First Amendment to the Purchase and Sale Agreement is being presented for Board consideration to account for the additional two (2) hospital beds to be entitled as part of the transaction as well as clarification of responsibilities related to stormwater design costs.
Presentation Information: Staff will provide a brief presentation, if requested.
Staff Recommendation:
Move that the Board approve the Resolution and authorize the execution of the First Amendment to the Purchase and Sale Agreement.
Alternate Recommendations:
1. Move that the Board amend the recommendation and approve the Resolution and authorize the execution of the First Amendment to the Purchase and Sale Agreement.
2. Move that the Board not approve the Resolution and provide staff with additional direction.
Background:
Tambone Companies approached the Governmental Finance Corporation (GFC) to develop the 7.36+/- acre parcel at the northeast corner of SW Village Parkway and the future Destination Way. Tambone proposed the development within the 7.36 +/- acre site to include a Medical (specifically inpatient rehabilitation hospital) and Post-Acute Medical Facilities, together with up to 40,000 square feet of office and veterinary hospital or clinic uses. The number of hospital beds presented with the original PSA reflected 52 beds when, in fact, the proposed site plan and business model for this use identifies 54 beds, resulting in a net increase in two (2) beds. The corresponding PUD accounts for 54 beds.
Issues/Analysis:
The original terms of the Purchase and Sale Agreement were as follows:
• Seller: Port St. Lucie Governmental Finance Corporation
• Buyer: Tambone Companies, LLC
• Property: approximately 7.36 acres
• Purchase Price: $8.00 per square foot of land ($2,565,000), subject to survey
• Permitted Use: Up to 52-bed Medical (specifically inpatient rehabilitation hospital) and Post-Acute Medical Facilities, together with up to 40,000 square feet of office and veterinary hospital or clinic uses
• Inspection Period: 120 days from Effective Date
• Development Approval Period: 60 days from Inspection Period
• Closing: 30 days following the expiration of the Development Approval Period
• Covenant to Open and Operate: Buyer agrees to open and operate the uses as proposed herein. Should the Buyer sell the land, or any portion thereof, to an unaffiliated third party, the Buyer shall pay the Seller a Sales Payment equal to 50% of the consideration Provides additional clarification on payment due for sale of land by Buyer to third party.
The terms as provided in the First Amendment to the Purchase and Sale Agreement, for Board consideration, are as follows:
• Permitted Use: Modified the Permitted Use for up to a 54-bed Medical (specifically inpatient rehabilitation hospital) and Post-Acute Medical Facilities, together with up to 40,000 square feet of office and veterinary hospital or clinic uses
• Stormwater Design: Modified language to indicate that Buyer shall cause the design of the stormwater drainage system (the "Stormwater Design") along a thirty (30) foot drainage easement which runs along the east side of the Land, that will serve the Land and the master stormwater system (the "Stormwater System"). At Closing, Seller shall provide Buyer with a credit towards the Purchase Price for the amount of the Stormwater Design Costs.
Financial Information:
GFC sales revenue will be the purchase price of $2,565,000.00 (or $8.00 per square foot). The Buyer will be responsible for paying the following: costs associated with the inspection of the land, documentary stamps, recording fees, title commitment cost, title search fees, premium for title insurance policy, survey, commissions owed, title company closing / escrow fees, estoppel fees, Buyer’s attorneys’ fees, and financing costs. Seller will be responsible for paying the following: cost of recording any corrective instruments and Seller’s attorneys’ fees. Buyer agrees to pay assessments associated with the Land and acknowledges that an Assignment and Assumption of Development Rights to be recorded at Closing will reflect an assignment of the development rights that would, at a minimum, be associated with the prorated SAD assessments currently imposed on the Property.
Special Consideration:
N/A
Location of Project:
The property is located along the east side of SW Village Parkway north of the future Destination Way.
Attachments:
1. Resolution
2. Exhibit A to Resolution - First Amendment to The Purchase and Sale Agreement
3. Purchase and Sale 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: 26197-07
Legal Sufficiency Review:
Reviewed by Elizabeth L. Hertz, Senior Deputy City Attorney. Approved as to Legal form and sufficiency by Richard Berrios, City Attorney.