Placement: Second Reading of Ordinances / Public Hearing
Action Requested: Motion / Vote
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Ordinance 21-90, Public Hearing, Authorizing the Conveyance of Twenty-One (21) City-Owned Parcels as a Component of a Settlement Agreement with 5T Wealth Partners and Related to the City Center Project Acquisition, and Authorizing the Vice Mayor, the City Manager, or Their Designee, to Execute the Deed Transferring Said Real Property.
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Submitted By: Jennifer Davis, Project Manager, Community Redevelopment Agency
Strategic Plan Link: The City's Goal of a diverse local economy and employment opportunities.
Executive Summary (General Business): The purpose of this Ordinance is to convey twenty-one (21) City-owned parcels to 5T Wealth Partners as a component of a Settlement Agreement related to the City Center project acquisition. Said parcels are in consideration of 5T Wealth Partners relinquishing their interest in any and all outstanding tax certificates related to City Center. The transaction is part of a multi-agency coordinated and unified approach to satisfying outstanding debt related to City Center prior to acquisition.
Presentation Information: N/A
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 Ordinance and provide staff additional direction.
Background: At the November 9, 2020 meeting, the City Manager was authorized by the City Council to negotiate a Purchase and Sale Agreement to acquire the City Center Parcels from the Securities and Exchange Commission court-appointed Receiver. Upon receiving notice of the City’s intent to purchase the Parcels, the St. Lucie County Tax Collector offered to facilitate the negotiations with tax certificate holders. This approach was in lieu of the Tax Collector enforcing Section 196.295(1), Florida Statutes, which requires that the taxpayer (owner of the property being conveyed to the government unit) place in escrow with the county tax collector, an amount equal to the current taxes prorated to the date of transfer of title, to be used to pay any ad valorem taxes due. The statute further provides that, in the event fee title to property acquired is by a governmental unit exempt under Chapter 196 by any means except condemnation or is acquired by any means except condemnation for use exclusively for federal, state, county or municipal purposes, the taxpayer is required to pay all taxes due from prior years.
In the months following, the Tax Collector, City Manager and City staff conducted several meetings with the majority tax certificate holders. These meetings were successful in negotiating with the tax certificate holders, with all outstanding tax certificates being satisfied as part of the City’s purchase of the Parcels. In return, twenty-one (21) City-owned parcels outside of City Center were identified as equitable consideration in exchange for the satisfaction of the City Center tax certificates. These parcels were determined as not needed to further the strategic goals of any City departments and are determined to be surplus real property.
Issues/Analysis: The settlement of the tax certificates associated with the City Center parcels is an integral part in the City acquiring the parcels from the court-appointed Receiver and, further, moving forward with the development of the property. The City intends to initiate master planning efforts on City Center once the parcels are acquired.
Financial Information: There is no new financial impact. Once the City takes title to the City Center parcels, the City’s only outstanding debt will be future SAD payments, a fee the City has continued to pay as part of the annual budget process.
Special Consideration: N/A
Location of Project: City Center is located at the southeast corner of the intersection of U.S. 1 and Walton Road. The parcels to be transferred to 5T Wealth Partners are best identified in the attached exhibit(s).
Attachments: 1. Ordinance; 2. Exhibit A to the Ordinance - Settlement Parcels; 3. Exhibit B to the Ordinance - Quit Claim Deed; 4. Settlement Parcels
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: 6702
Legal Sufficiency Review:
Reviewed by Margaret M. Carland, Deputy City Attorney. Approved as to Legal form and sufficiency by James D. Stokes, City Attorney.