Placement: Resolutions
Action Requested: Motion / Vote
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Resolution 26-GFC-02, Authorizing the President or the CEO to Enter into and Execute 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, Community Redevelopment Agency
Executive Summary:
The development within the 7.36 +/- acre site at the northeast corner of SW Village Parkway and the future Destination Way includes a 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.
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 Purchase and Sale Agreement with Tambone Companies, LLC.
Alternate Recommendations:
1. Move that the Board amend the recommendation and approve the Resolution and authorize the execution of the Purchase and Sale Agreement with Tambone Companies, LLC.
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 7.36+/- acres at the northeast corner of SW Village Parkway and the future Destination Way. GFC Staff paused on consideration for the site until such time as the roadway design and impending construction of Destination Way was nearing completion. During this time, Tambone considered new uses for the site, which resulted in the PSA being presented to the Board today. The development within the 7.36 +/- acre site includes a 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.
Issues/Analysis:
The 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;
• Deposit: $25,000 First Deposit; $50,000 Second Deposit
• 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.
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 - Purchase and Sale Agreement and related Exhibits
3. 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: 24171-08
Legal Sufficiency Review:
Reviewed by Margaret M. Carland, Senior Deputy City Attorney. Approved as to Legal form and sufficiency by Richard Berrios, City Attorney.