Placement: Second Reading of Ordinances / Public Hearing
Action Requested: Motion / Vote
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Ordinance 22-53, Public Hearing, Authorizing the City Manager to Execute and Enter into a Purchase and Sale Agreement with Galleria Farms, LLC, and Authorizing the Conveyance of Real Property Described as Parcel 3, L.T.C. Ranch P.U.D. #1, as Recorded in Plat Book 40, Page 1, of the Public Records of St. Lucie County, Florida, which was Identified and Approved for Surplus on March 22, 2021, to Galleria Farms, LLC.
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Submitted By: Elijah Wooten, Economic Development Administrator.
Strategic Plan Link: The City's Goal of a diverse local economy and employment opportunities.
Summary Brief (Agreements/Contracts only)
1. Prepared by: Margaret Carland, Senior Deputy City Attorney.
2. Parties: City of Port St. Lucie (“City”) and Galleria Farms, LLC, a Florida limited liability company (“Buyer”).
3. Purpose: Buyer’s purchase of approximately 4.65 acres; 8900 Glades Cut Off Road Port St. Lucie, FL; Parcel 3, LTC Ranch PUD 1 (the “Property”) (Parcel ID No.: 3301-700-0022-000-2), from the City (the “PSA”).
4. New/Renewal/Modified: New.
5. Duration: Ninety days from the effective date or earlier at Buyer’s election.
6. Benefits to Port St. Lucie: Upon closing of the PSA, the City of Port St. Lucie will receive $1,162,500. The Buyer is not requesting any incentives, so the City will receive the full economic benefit from the sale.
7. Cost to Port St. Lucie (Annual and Potential): Prorated taxes and assessments at closing; Recording of corrective instruments (if any); 5% commission (2.5% to the “Seller’s” agent and 2.5% to the “Buyer’s” agent), and closing costs.
Presentation Information: A short presentation may be provided by staff or the Buyer.
Staff Recommendation: Move that the Council authorize the City Manager to execute and enter into the Purchase and Sale Agreement with Galleria Farms, LLC, and authorize the conveyance of the Property to Galleria Farms, LLC.
Alternate Recommendations:
1. Move that the Council amend the recommendation and authorize the City Manager to execute and enter into the Purchase and Sale Agreement with Galleria Farms, LLC, and authorize the conveyance of the Property to Galleria Farms, LLC.
2. Move that the Council not approve of the recommendation and provide staff with direction.
Background: The City acquired the Property in October of 2001 and thereafter the Property was dedicated to economic development purposes and conveyed to businesses that the City hoped would create jobs and make a capital investment in the Property and surrounding community. In December of 2011, the Property was conveyed back to the City when the, then, owner of the Property decided to cancel its expansion of the industrial park. On March 22, 2021, the City Council reviewed and approved a request to surplus the Property and dispose of it utilizing the City’s real estate broker, Colliers International Florida, as per City policy #18-01ccd.
Galleria Farms was founded in 2000. The company imports and distributes premium fresh-cut flowers and perishables grown on their farms in Colombia, Ecuador and South America nation-wide. The company currently operates two warehouses in Miami-Dade County and has 100 employees.
The Port St. Lucie location will provide additional storage, repacking and distribution capacity to better serve the entire region. The company will construct a 70,000 square foot state-of-the-art refrigerated concrete tilt-wall building, with 36’ clear ceilings and approximately 3,000 square feet of office on two floors (the “Project”). The Project will create 210 jobs over a three-year period paying an average wage of $45,000/year.
Issues/Analysis: The general terms of the PSA are outlined as follows.
Purchase Price: $1,162,500.
Permitted Use: The property is zoned PUD which allows commercial service and industrial improvements.
Inspection Period: 60 days after contract execution date
Closing: 30 days after expiration of inspection period
Financial Information: A September 2021 Appraisal Report, included, for the Property estimated the highest and best use as owner-occupied industrial improvement with a market value of $700,000.
Special Consideration: N/A
Location of Project: 8900 Glades Cut Off Road, Port St. Lucie, FL.
Attachments:
1. Ordinance.
2. Exhibit “A” to Ordinance - Buyer executed PSA with Exhibits.
3. Appraisal report.
4. Staff Presentation.
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: 8173
Legal Sufficiency Review:
Reviewed by Margaret M. Carland, Senior Deputy City Attorney. Approved as to Legal form and sufficiency by James D. Stokes, City Attorney.