Placement: Second Reading of Ordinances / Public Hearing
Action Requested: Motion / Vote
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Ordinance 22-07, Public Hearing, Authorizing the Conveyance of Eight (8) City-Owned Residential Vacant Property Lots Located in the Tesoro PUD to RM Tesoro LLC, in Accordance with a Land Swap Agreement.
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Submitted By: David Graham, Assistant City Manager.
Strategic Plan Link: The City's Goal of a high-performing city government organization.
Executive Summary (General Business): The City Council is requested to approve an ordinance conveying eight City-owned vacant residential property lots in the Tesoro PUD (Attachment 1) in accordance with a Land Swap Agreement (Attachment 2) to enable a trade for two “open space” parcels owned by RM Tesoro LLC, located on the west side Southbend Blvd. within the Tesoro PUD.
Presentation Information: Staff will be available to respond to questions as may be needed.
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 provide staff direction.
Background: The City Manager was approached by a representative for RM Tesoro LLC offering to exchange two (2) parcels owned by RM Tesoro LLC located along SE Southbend Blvd for eight (8) single-family vacant residential properties located within the Tesoro PUD previously escheated to the City by the St. Lucie County Board of County Commissioners (SLC BOCC). Attachment 3 provides an appraisal of the parcels offered to the City as prepared for RM Tesoro LLC by CRE Valuation Services (CRE). It should be noted that the CRE appraisal of the two open-space parcels applied a “hypothetical condition” that Parcel A has been re-zoned to its Highest and Best Use, which the appraisal states as neighborhood commercial; the appraisal valued Parcel A as such. The actual and current zoning is open space.
Attachment 4 is a memorandum from the City’s Parks and Recreation Department, who, with the Public Works Department, conducted a review and analysis of the proposed parcels being received from RM Tesoro LLC. This memorandum supports acquisition of these parcels and outlines proposed future uses beneficial to the City. The Council’s High Performance Public Spaces Team reviewed the findings of the review team on September 17, 2021 and concurred in supporting the recommendation to acquire the properties from RM Tesoro LLC.
Attachment 5 provides the results of an appraisal conducted on the City’s behalf of the eight City-owned Tesoro single-family lots. In summary, the appraisal prepared for the City states the combined value of the eight lots is $512,000 with a recommended “bulk” sale value of $460,800.
Attachment 6 is the proposed Ordinance authorizing the conveyance of the eight (8) City-owned Tesoro parcels to RM Tesoro LLC.
Attachment 7 provides aerial visuals of the subject properties proposed for swap between the parties.
Issues/Analysis: N/A.
Financial Information: Approving the trade of the eight City-owned residential lots to RM Tesoro LLC will enable these lots to be sold for single-family home construction with eventual addition to the City’s Ad Valorem Tax Roll. This trade will also relieve the City of the annual carrying costs of applicable special assessments for these properties (FY21/22 obligation: $46,065.05).
In accepting the trade of the two offered parcels as described in Attachment 4, the City’s annual obligation is $3,458.86 (Ad Valorem: $760.50, Stormwater: $2,172.24, and Tesoro CDD $512.12). This may be reduced to $2,698.00 if ad valorem property taxes qualify for exemption.
Special Consideration: N/A.
Location of Project: Tesoro Planned Unit Development (PUD).
Attachments:
1. City-owned Tesoro PUD Trade Properties Description.
2. Land Swap Agreement.
3. CRE Valuation Services appraisal of offered parcels by RM Tesoro LLC.
4. HPPS Team review of offered parcels memorandum.
5. Fuller-Armfield-Wagner Appraisal Report City-owned Tesoro Properties.
6. Proposed Ordinance.
7. Tesoro Trade Properties Visuals.
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: 7077
Legal Sufficiency Review:
Reviewed by Margaret M. Carland, Deputy City Attorney. Approved as to Legal form and sufficiency by James D. Stokes, City Attorney.