Placement: Resolutions
Action Requested: Motion / Vote
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Resolution 21-R144, Authorization to Execute and Enter a Purchase and Sale Agreement Between Michael I. Goldberg, as Court Appointed Receiver of US1 Real Estate Developments, LLC, and the City of Port St. Lucie, to Acquire the City Center Parcels.
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Submitted By: Jennifer Davis, CRA Project Manager
Strategic Plan Link: The City's Goal of a diverse local economy and employment opportunities.
Summary Brief (Agreements/Contracts only)
1. Prepared by: City of Port. St. Lucie
2. Parties: City of Port St. Lucie (“City”) and Michael I. Goldberg, as court appointed receiver of US1 Real Estate Developments, LLC (“Receiver”)
3. Purpose: To facilitate the purchase of twenty-two (22) City Center parcels currently held in receivership.
4. New/Renewal/Modified: New
5. Duration: Sixty (60) day Inspection Period; Closing thirty (30) days after the expiration of the Inspection Period.
6. Benefits to Port St. Lucie: The City’s acquisition of the twenty-two (22) City Center parcels will allow for a long-awaited redevelopment opportunity on the eastern side of Port St. Lucie.
7. Cost to Port St. Lucie (Annual and Potential): In addition to the acquisition cost of $400,000, the City will be responsible for satisfying a few small balances with taxing authorities. In addition, the City will incur standard buyer-related costs associated with closing such as surveys, inspections, recording fees, doc stamps, etc. The City will continue to incur costs associated to Special Assessments on the parcels. The City will incur a cost associated with master planning the site, as well as some marketing costs. In addition to the costs associated with the transaction, the City will be entitled to revenue from the Bealls Outlet lease, which will be a month-to-month agreement.
Presentation Information: Russ Blackburn, City Manager, will provide a brief presentation.
Staff Recommendation: Move that the Council approve the Resolution and direct the City Manager to execute the Purchase and Sale Agreement (“PSA”) with the Receiver.
Alternate Recommendations:
1. Move that the Council amend the recommendation and approve the Resolution and direct the City Manager to execute the PSA with the Receiver.
2. Move that the Council not approve the Resolution and provide staff with direction.
Background: In November 2020, City Council authorized the City Manager to negotiate a PSA with the court appointed receiver, Michael I. Goldberg, to purchase twenty-two (22) receiver-held City Center parcels. At that time, City Council approved a sales price of $400,000 for the parcels. Over the next several months, City staff worked with the St. Lucie County Tax Collector to negotiate the outstanding back taxes on the parcels, as well as the outstanding tax certificates. In doing so, the City was able to secure Settlement Agreements with all major taxing authorities, as well as with the major tax certificate holders.
Issues/Analysis: N/A
Financial Information: In October 2020, the City received an appraisal on the twenty-two (22) City Center parcels which contemplated the value as follows: ($26,800,000) with the delinquent assessments, fees and penalties encumbering the property; a value of $15,500,000 with no delinquent or future assessments encumbering the property; and a value on the parcels of $13,600,000 if all delinquent assessments and fees were satisfied, but date-forward assessments and fees remain in place.
Special Consideration: N/A
Location of Project: City Center is located at the southeast corner of the intersection of U.S. Highway One and Walton Road.
Attachments: 1. Resolution; 2. Exhibit “A” to Resolution: Purchase and Sale Agreement; 3. Map showing Receiver-held 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: 5671
Legal Sufficiency Review:
Reviewed by Margaret M. Carland, Deputy City Attorney. Approved as to Legal form and sufficiency by James D. Stokes, City Attorney.