Placement: Resolutions
Action Requested: Motion / Vote
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Resolution 24-GFC-13, Authorization to Enter Into and Execute the Third Amendment to a Purchase and Sale Agreement between the Port St. Lucie Governmental Finance Corporation and Four Port St. Lucie, LLC.
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Submitted By: Jennifer Davis, Director, Community Redevelopment Agency
Executive Summary (General Business): In November 2023, the Governmental Finance Corporation (“GFC”) entered into a Purchase and Sale Agreement (“PSA”) with Four Port St. Lucie, LLC, for a project known as Project Bears. The PSA is for the purchase 30+/- acres of land in the Southern Grove Jobs Corridor for the purpose of developing up to 500,000 square feet of industrial and office uses. Since the execution of the PSA, additional business terms have been negotiated related to the PSA, of which are reflected in the Third Amendment to the Purchase and Sale Agreement.
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 Third 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 Third Amendment to the Purchase and Sale Agreement.
2. Move that the Board not approve the Resolution and provide staff with additional direction.
Background:
Working through a broker, an initial Letter of Intent (“LOI”) was submitted under the project name “Project Bears” on August 25, 2022. In November 2023, a Purchase and Sale Agreement was authorized by the GFC Board and subsequently entered into on Project Bears.
Project Bears is a multi-generation family-owned business and a leader in the manufacturing and distribution industry, providing a wide range of small- and large-scale products internationally.
Project Bears initial 250,000 square foot facility will be a state-of-the-art manufacturing and distribution center. Project Bears anticipates $37.5 million of initial capital investment in the Property and anticipates creating 200-300 new jobs at a wage above St. Lucie County’s average earnings per worker.
Issues/Analysis:
The original terms of the Purchase and Sale Agreement were as follows:
• Seller: Governmental Finance Corporation
• Buyer: Four Port St. Lucie, LLC / “Project Bears”
• Property: approximately 30.95 acres
• Purchase Price: $5.50 per square foot of land ($7,415,001) subject to survey
• Permitted Use: Industrial / Office Use, up to 500,000 Square Feet
• Inspection Period: 120 days from Effective Date
• Development Approval: 60 days from Inspection Period, plus extensions if
applicable
• Closing: 30 days following Development Approval, plus extensions
if applicable; with anticipated closing no later than 360 days after Effective Date.
The terms as provided in the Second Amendment to the Purchase and Sale Agreement were as follows:
• Inspection Period: Extended until September 16, 2024
• Roadwork Design
and Construction: Clarification of obligations related to the Roadwork Design and Construction for East / West Roadway (Destination Way)
• Stormwater Lake Design
and Construction: Clarification of obligations / terms related to Stormwater Lake Design and Construction, and related fill.
• Drainage Easement: Identification of Drainage Easement
• Final Plat: Timing of The Final Plat and associated obligations
• Lift Station: Proportionate Share Contribution to SLCFD Lift Station in lieu of
constructing utility infrastructure on site
• Seller’s Roadwork: Extension of timing to complete roadwork
• Cost Estimate: Timing of cost estimate related to Stormwater and Roadwork
The terms as provided in the Third Amendment to the Purchase and Sale Agreement are as follows:
• Inspection Period: Extended until October 29, 2024
• Utility Connection
Fees: Clarified obligations related to utility connection fees for the site
• Legal Description: Since site has been replatted, updated Legal Description is
incorporated into the PSA as Exhibit B.
• Conditions to Closing: Further clarified and amended as to the termination of easements
and supplement to the Commercial Charter.
Financial Information:
Sales revenue will be the approximated purchase price of $7,415,001 (or $5.50 per square foot) less prorated taxes and assessments as of closing, recording of corrective instruments (if any), broker fees, attorney fees, and credit for infrastructure grants (if any).
Special Consideration: N/A
Location of Project:
The property is located at the southwest corner of Tom Mackie Blvd and East West 2 roadway (Destination Way).
Attachments:
1. Resolution
2. Exhibit A to Resolution - Third Amendment to The Purchase and Sale Agreement
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: 24248-10
Legal Sufficiency Review:
Reviewed by Margaret M. Carland, Senior Deputy City Attorney. Approved as to Legal form and sufficiency by Richard Berrios, City Attorney.